bc petrinex inclusion change leader meeting #4...craig eveleigh: solutions architect –fujitsu...

By acceptance of the attached material, all parties acknowledge that all material released by Petrinex is to be used for the sole purpose as agreed to by Petrinex. This material shall not be

used for any other purpose or disclosed to any other party without prior approval by Petrinex.

BC Petrinex InclusionChange Leader Meeting #4

October 3, 2018

Agenda

I. Introductions

II. Project Update/Timeline

III. Update from BC Energy & Mines

IV. Final Readiness Activities

V. Training Resources

VI. Update from the BC Oil & Gas Commission

VII. Update from BC Finance

VIII. Summary of Final Readiness Activities

IX. Questions

Petrinex Attendees:

Ross Weaver: Manager, Petrinex Industry Team

Steve Freeman: Industry Coordinator – BC Lead

Farhat Siddiqui: Business Operations Director

Sheryl Moody: Communications and Stakeholder Support Coordinator

Craig Eveleigh: Solutions Architect – Fujitsu Consulting

3

Project Attendees

Ministry of Finance – Mineral, Oil & Gas Revenue Branch:

Kathy Brulotte: Manager, Petroleum Operations

Angela Thai: Team Lead, Petroleum Operations Adjudication

Dave Rogers: Petrinex-BC Project Director

BC Oil & Gas Commission:

Mike Janzen: Manager, Asset Integrity & Retirement

Ministry of Energy, Mines & Petroleum Resources:

Cindy Wan: Manager, Pricing – Oil & Gas Division

4

BC Project Attendees

Agenda

I. Introductions








IX. Questions

6

High Level Project Scope & Timing

Industry Readiness Activities

• Industry company SME identification and recruitment for design workshops• BC “Official” information release• Stakeholder and Change Leader identification and contact info for “Scorecard”• BC Business Change Committee set-up and meetings• Joint or independent non-producer meetings (e.g. vendors, pipelines, waste

plants)• New Company processes• Petrinex website changes (including BC “Initiatives Page”)• Vendor specification release • Industry Team annual billing• Industry Readiness Handbook• Change Leader Meetings • Acceptance Testing• Industry Conversion Communication Plan• Interoperability Testing • Readiness Scorecard tracking & follow-up (emails, call-out program)• Updates to EPAC, CAPP Acctg. Comm., Fiscal & BC EPGs, CAPPA etc.• Training Development (Job Aids, Learning Modules)• SMOR (Small and Medium Operator Readiness) activities• Learning module content and release

8

Petrinex Go-Live is November 5!

• Development has been completed.

• SME testing is completed for Acceptance Testing.

– Still some re-testing on fixes for issues identified during AT testing

• Interoperability testing is still open for everyone (more in next section).

• Work is continuing on learning modules (more in later section).

• Data conversion was refreshed in September for End to End testing. Finalizing for Go-Live.

– The Industry Conversion Communication Plan is posted in the PBCIP Industry Readiness Handbook (Appendix 11).

– Updates will be provided later on in this presentation.

9


• The new TACS Finance system is scheduled to go-live on Nov 13.

• Important dates relating to the conversion plan and cutover strategy can be found in the PBCIP Industry Readiness Handbook.

• End to end testing of all systems has been run. – Minor issues were identified and corrected.

• Updates will be provided later on in this presentation.

10


• Can still test ALL kinds of submission files from NOW to Go-Live.– Will accept files from both software vendors and Industry.

• Please change test file Production Month to 2018-04.– Previously we asked files to be for 2017-06.

– After our environment refresh we no longer have prior months going back that far.

• Please ensure test files are using the proper revision/data formats for BC. Software vendors should check the sharepoint site to ensure they have the most recent IS document release.

• Most common format issues we’ve encountered:– Facility IDs – Petrinex Format requires jurisdiction (BC), facility type

(BT), and 7 digit identifier (0001234).

– BA IDs – Petrinex Format requires 5 digit numeric (00123).

• Leading zeroes MUST be provided or the file will fail schema.

Interoperability Testing

11

Interoperability Testing Cont’d.

12

Upload File Type BC Revision # Comments

Volumetrics 002 New fields for Temperature & Pressure (IF Reporting).

Waste Plant 001 Same as AB/SK.

Allocations 003 New fields for Shipper and RTP ID.

NGL/Sulphur Valuation 001 New functionality for BC.

Oil Pipeline Splits 003 Same as SK.

Oil Valuation (Royalty Tax Payer & Purchaser)

002 Looks same as SK, different price format.

Net Profit Allowable Costs 001 New functionality for BC.

PCOS Equipment Operator Change

001 New functionality for BC.

• Shippers’ balance reporting is required by the Alberta Petroleum Marketing Commission (APMC) for oil produced in Alberta. This extends to Alberta produced oil that is delivered to certain facilities in Saskatchewan and BC.

• Currently, BC facilities are being reported within the Alberta Petrinex jurisdiction.

• Estimate BC pipeline operators will begin reporting shippers’ balances for BC pipelines, terminals, and custom treater facilities in the BC Petrinex jurisdiction (just as Saskatchewan is reporting in the SK reporting jurisdiction) in February 2019.

• Until then companies should continue to report in the Alberta jurisdiction.

• It is estimated that there are less than 10 facilities that would be required to do this reporting in BC.

• More communication with the appropriate stakeholders will take place before the end of the year. 13

Shippers’ Balance (Alberta)

Agenda

I. Introductions








IX. Questions

BC Petrinex Project Impact on Natural Gas Royalty Pricing

October 2018

Outline

• Petrinex provides consistent, quality volumetric and allocation data used for gas pricing and invoicing

• How Petrinex data gets used for pricing

• Industry data that is critical for pricing

• Reporting Date Change related to pricing

BC GAS Royalty Calculations

1

Production (e3m3)

MINUSDeductions

Gas Processing Plant

Producer Cost of Service

Cost Allowance

Wellhead Market

Raw Gas (volume)

Royalty Rate (%)

Gross Royalty Payable ($)

= Net Royalty Payable to the Crown ($)

Reference Price ($/e3m3)

X

X

=

Reference Price is calculated by Pricing System

Production, GCA and PCOS will be provided by Petrinex

Process Model – Current State

BC 23

GCA

Enbridge

PR

OD

UC

ER

S a

nd

OP

ER

AT

OR

S

PRICING SYSTEM

MFIN Volume Validation of BC19 and Manual Entry of

Volume Data in Pricing System

Volume, Estimated and

Actual COS

Volume

Producer Source Documents

Actual Sales

and COS

Manual Entry

by MOF

Upload

PR

ICIN

G

GR

OU

P

Web-based pricing system to allow producers to submit actual Sales and COS data electronically

Process Model – Post Petrinex

PETRINEX

-Summary of Allocations

- Allowable Costs

Enbridge Actual COSP

RO

DU

CE

RS

an

d

OP

ER

AT

OR

S

PRICING SYSTEM

Actual COS

Volume and GCA Rate

Producer Source Documents

Actual Sales

and COS

Manual Entry by

Pricing Group

Manual Entry

by MOF

Upload

Upload

PR

ICIN

G

GR

OU

P

Web-based pricing system to allow

producers to submit actual Sales and

COS data electronically

How does Petrinex data get used for pricing?

• Petrinex provides Allocation Summary reports for royalty trigger facilities

-Marketable Gas Allocation

-Dry Gas Allocation

-Raw Volume

-Returned Gas for Volume Credits

-Returned Gas for COS Verification

-Field Sales

• Allowable Costs (GCA Rate)

Industry data that is critical for pricing:

• Raw volume at the inlet of a gas processing plant

• Shipper delivering marketable gas to main transmission pipelines

• Pipeline information

• Gas Cost Allowance (GCA rate)

Industry data provided in Petrinex:

Petrinex Allocations process

Petrinex Allowable Cost process

D Station 2

C

Sumas

E Alberta

A/B Inlet/Outlet

23

Why do Pipelines Matter for Pricing?

BC Gas Markets

Reporting Date Changes for Pricing

• 10th business day => 9th day of the month

• Enbridge COS Actuals will replace Estimates allowing for quicker pricing and invoicing

• Royalty Estimate Payment on the 25th

• Annual Gas Cost Allowance - March 11th, 2019

Keep Calm and Have Fun

Effective and Frequent Communication is Critical to a Successful Change

Agenda

I. Introductions








IX. Questions

• Triggers are sorted into Allocation Types in Petrinex:

– Gas Royalty (GP to MS) & Royalty (GP/COS) – Plants that deliver to Younger

– Dry Gas & Field Sale

– Inlet COS (Raw)

– Return Fuel - Royalty Volume Credit (from MS) & Returned Gas COS (from GP)

• Petrinex will auto-populate the Royalty Trigger facility & Pipeline information (where appropriate). Industry provides Shipper information in their submission.

Gas Allocations Data

29

• The Royalty Trigger facility & Pipeline information are auto-populated based on the allocation Royalty Type.

• Required allocation types are triggered by certain volumetric transactions.

– Ex: MS receiving gas from a GP or GP receiving gas from upstream facility

• Submitted allocations data are extracted and sent to Ministry monthly. As well, data is summarized and sent to the Pricing group in the form of reports.

Allocations Data

30

Royalty Type Royalty Trigger Facility Linked Pipeline

Gas Royalty First GP downstream of well PL linked to MS

Royalty (GP/COS) First GP downstream of well N/A

Dry Gas Submitting BT/GS PL linked to MS

Field Sale N/A N/A

Inlet COS First GP downstream of well N/A

Royalty Vol CreditReturned Fuel GP for BT in

Facility Infrastructure PL linked to MS

Returned Gas COSReturned Fuel GP for BT in

Facility Infrastructure N/A

Gas Royalty• New triggers for gas going from a BT/GS/GP to a Waste Plant or Terminal

for fuel usage (BC gas going to either BC or AB WP/TM).

Gas Field Sales• New trigger for field sales of gas to an unlinked well event and from one

plant to another plant.

NGL Royalty• Originally only had triggers for liquids processed at BC plants. Needed to

add triggers for BC liquids processed at AB plants and allocated back.

• A complete set of triggers can be found in Appendix 15 of the PBCIP Readiness Handbook.

Allocations Trigger Update

31

1. Information Collected From Industry

– Business Associate: OGC BA Data Collection Form

– Facility: Gas Gathering Systems, Meter Stations, Pipelines

2. Conversion Information Files Shared With Industry

– Business Associate

– Well & Facility

– PCOS Equipment

– Royalty Tax Payer & Royalty Tax Attributes

3. Activities at Go-Live

– Primary USA sets up users/roles

– Opening Inventories

– Infrastructure Updates

– Related BAs for Oil Valuation purposes

– Setting MS auto-populate options (if desired)

– Linking gathering lines to batteries for PCOS

– Creation and linkage of AB/NEB gathering lines for PCOS32

Industry Conversion Communication Plan

• All facilities collected from Industry were loaded into our September test environment with 100% success.

– Almost 250 GS facilities including Enbridge receipt points and non-Enbridge facilities.

– Almost 150 MS facilities connected to gas pipelines for Enbridge, TCPL, Alliance and PNG (delivery and return fuel).

– 10 PL facilities for gas, oil, and NGL.

• Industry created facilities are included in the Facility Conversion file on the OGC website.

• Can continue to accept updates up to October 25. This will help ensure that changes that occur in the next few weeks are included in the final data conversion for Go-Live.

33

1. Information Collected From Industry

• Industry conversion files are currently posted on the OGC website at https://www.bcogc.ca/industry-zone/petrinex-bc-inclusion-project.

– Business Associate

– Well Conversion (Well/Well Event & Well-Facility Link)

– Facility (Facility ID, License, Industry, Subtype Descriptions)

– PCOS Equipment (OGC gathering lines, compressors, dehy units, field processing units, lineheaters)

– Royalty Tax Payer (Well, Unit)

– Royalty Tax Attributes (Well, Unit, Revenue Sharing, Net Profit)

34


https://www.bcogc.ca/industry-zone/petrinex-bc-inclusion-project

• Instruction document is also posted on the website to help Industry understand the information being shared.

– Explanation of all files shared on the website.

– Instructions for the OGC BA Collection form.

– Instructions/Email Address for communicating errors in the conversion files or other conversion concerns.

• [email protected] for most conversion concerns (excluding PCOS gathering lines)

35


mailto:[email protected]

• Last data refresh happened in early September. Final conversion files will be generated for Go-Live.

• Industry is encouraged to continue reviewing refreshed files to ensure data accuracy and to ensure that any corrections previously communicated have been made.

– Wrong facility type/subtype, well-facility linkages, well statuses, etc.

– Missing wells, facilities, PCOS equipment, etc.

– Review GS/MS/PL. Emphasis on return fuel MS (subtype 632/638)

– Facilities with OGC facility type “PG” were missed in last refresh. Problem has been identified and will be resolved for Go-Live (approx. 30 facilities)

• Corrections can still be made up until October 25, however the nature and scope of the correction could impact ability to make correction by Go-Live.

• Please review files ASAP to ensure plenty of time for corrections.

36


• Primary USA sets up users/roles

– User IDs must be created and assigned User Security Roles before any reporting can commence on Petrinex.

– Note: USA/Backup USA passwords are scheduled to be generated on November 2 and will be communicated to the individuals identified as USAs for their companies before Go-Live (Nov 2-4).

• Opening Inventories

– Users will report opening inventories as Inventory Adjustments in Petrinex.

• Inventory at Facility level will use activity INVADJ

• Load Inventory at Well level will use activity LDINVADJ

• Infrastructure Updates (Facility)

– Operators of batteries that receive return fuel that is eligible for a credit MUST update the returned fuel information in Facility Infrastructure.

– Applies to facilities receiving return fuel from a meter station.

37


• Set Meter Station Auto-Populate Facility (optional)

– All MS facilities are being setup with auto-populate set to “No.”

– If there is only one upstream facility connected to the meter station, then it makes sense to set the auto-populate option to “Yes” and enter the Facility Link.

– Either the MS operator (same as PL operator) or Common Stream Operator (CSO) can change the auto-populate option.

• The CSO is the operator of the upstream facility.

• Does not apply to non-reporting MS facilities.

• Review Appendix 11 in the PBCIP Handbook for details on how reporting is affected by auto-populate options for different meter station subtypes.

38


• Infrastructure Updates (RTP)

– Companies that have been assigned RTP operatorship responsibility for a stream may use the Operator Changes functionality in Petrinex to request an operator change if necessary.

• Related BAs for Oil Valuation purposes

– Oil Valuation Purchaser records are not created for non-arm’s length sales (owner/purchaser are the same in the pipeline split). Some companies may have different BA IDs for producing and marketing functions. This is still considered a non-arm’s length sale (BAs are related).

– Companies may enter their Related Business Associates in the Audit menu section of Petrinex.

• Linking gathering lines to batteries for PCOS

– Industry must link the new BC Gathering Line IDs provided by the Commission to their batteries for PCOS reporting.

– Industry has until January 31, 2019 to update the gathering line linkages in Petrinex.

39


• Creation of Alberta/NEB Gathering Lines

– Originally MOF had planned to provide the Alberta/NEB pipeline gathering lines in their conversion load, but discovered there was insufficient information to populate all required fields.

– Creating these gathering lines in Petrinex means that they will all receive new equipment IDs (as determined by Petrinex upon submission).

– New IDs must be attached to BTs before PCOS deadline (Jan 31, 2019).

– MOF estimates there are only 30-40 of these gathering lines total.

40


This is missing!

This isn’t right!

This isn’t mine!

What do I do now?!!!

41

Lookups

• Lookups are provided next to input fields. They allow the user to lookup information relevant to the data that is required in the field for the submission. Examples include:

– UWIs

– Facility IDs

– Facility Subtypes

– BA IDs

– Products

– Activities

42

Petrinex Self Serve Solutions

43

Petrinex Self Serve Solutions - Infrastructure

I think my Facility ID/UWI is missing! What do I do?

• Confirm that it really isn’t there. For facilities, go to Query Facility Information in the menu. Use the Lookup next to Facility ID. The lookup grid system allows you to search by multiple criteria.

• Can use partial values for Identifier, Name, Location. Results will include any facility with those values.

• Can use further lookups for Subtype and Operator ID if required.

44


• For UWIs, go to Query Well in the menu. The lookup grid is the opening screen. Like facility, UWIs can be searched by multiple criteria.

• UWIs are generally referred to as wells in Petrinex.

• Can use partial values for Well ID, Name, Licence#, Location and Well Status. Results will include any facility with those values.

• Can use further lookup for Licensee BA.

45


Ok, I checked and my Facility ID really is missing.

• You can create new facilities under the Request Facility ID menu option. Use the same license number (OGC Facility ID) to link the new facility to.

– Petrinex will assign a new facility ID at random. Records will need to be updated to reflect new ID.

My facility has the wrong status. It should be active/inactive.

• You can change a facility’s status under the Change Facility Operational Status menu option. Operators can make their facilities active or suspend them.

46

Petrinex Self Serve Solutions - Facility

What if my facility has incorrect data elements?

• You can edit facility attributes under the Edit Facility ID menu option. Information you can edit includes:

– Name

– Location

– BT Returned Fuel Flag & Gas Plant ID

– BT Primary Gas Plant ID

– TM Physically Connected to Pipeline Flag & Pipeline ID

– MS Common Stream Operator BA ID

– MS Pipeline Link ID

– MS Auto Populate Flow Through Flag & Facility ID

I don’t agree with the subtype assigned to my facility. Can I change it?

• Industry does not have the ability to edit subtype in Petrinex. Only the OGC can change the facility subtype.

47


What if I get a facility that isn’t mine?

• Not a high likelihood of getting another company’s facilities from conversion.

• Examples of this happening in conversion testing were where a BA has more than 1 BA ID and the facilities are converted under a different ID than the BA wanted.

• You can transfer operatorship of facilities to another BA ID under the Request Operator Change menu option.

• Concurrence is required by the new BA. Operatorship changes can be accepted or declined under the Accept/Decline Operatorship Change menu option.

48


I have confirmed that my well really is missing.

• This scenario is highly unlikely as all wells are being converted to Petrinex.

• If a UWI is missing you will need to contact OGC. UWIs are created in the OGC systems and pushed to Petrinex.

My well has the wrong status.

• You can change the well status under the Edit Well Status menu option. Licensees can change a well status from suspended to active producing/injecting/disposal.

– Bringing a well on production for the first time will require the well to be linked to a subtype appropriate BT (based on the liquid identified in the status – gas, oil, etc.).

– Bringing a well on injecting/disposal will require a well to be linked to an IF facility.

– Only the OGC can set abandoned statuses.

49

Petrinex Self Serve Solutions - Well

Where can I make changes to commingling options?

• This is also done under Edit Well Status. You would select a status with either Single, Area, or Multi (multilateral).

– For wells that are part of Area Based commingling or a Multilateral scheme, the licensee will set the status for the reporting well event. Additional well events are then linked to the reporting event.

Can I change the primary product of my well?

• No. Once the initial producing status is set for gas or oil there is no ability to change to the other product.

• Must contact the OGC for primary product changes.

50


My well appears to be linked to the wrong facility. Can I change it?

• Yes. Operators of the facility that well is linked to can change the linkage under the Request Well to Facility Link Change screen.

– If linking the well to another operator’s facility, concurrence is required.

– Operators of the new facility can accept or decline the linkage change under the Accept Well to Facility Link Change screen.

So I can’t just change the Facility ID in the Edit Well Status screen?

• Generally no. Beyond the initial linkage, most changes are made in Request Well to Facility Link Change.

• There are a few circumstances where the change would be made in Edit Well Status. These are when a well status change is made that would make the original facility inappropriate for the status (ex: BT – IF).

51


52

Petrinex Monthly Reporting

Petrinex rejected the BA ID in my submission. I think this BA is missing?

• A BA ID is required in a number of areas of Petrinex.

– Allocations Shipper/RTP/Owner ID

– Oil Pipeline Splits Owner/Purchaser ID

– Royalty Tax Payer records

• Ensure that you are using the 5 digit BA ID.

– The old MemID is a 4 digit numeric value.

– MemIDs were converted to Petrinex as 5 digit numeric value.

– The Petrinex BA ID is the old MemID with one leading zero.

53

Petrinex Monthly Reporting – Business Associate

• Confirm the BA ID is really missing. Use the lookup next to the input field that requires the BA ID.

– BA Name can be a partial search.

• If BA ID is really missing, may have to contact the company.

• Don’t miss deadlines if BA can’t be set up in time!

– Use own BA ID if have to in order to avoid penalties/deemed royalties.

– Amendments can be made later.54

Petrinex Monthly Reporting– Business Associate

Somebody submitted a receipt from my facility, but I didn’t deliver anything there. Now I’m out of balance! How do I get rid of this?

• Receipts auto-populate dispositions in Petrinex. The auto-created disposition can’t be deleted.

– Contact the operator of the receiving facility. They must amend their submission to remove the auto-populated row from the disposing facility.

How do I find out who to contact?

• You can find out who submitted the entry in the Query Volumetric Submission screen.

– Query the volumetric submission for the facility that received the product from your facility.

– Click the Contacts button at the top of the screen.

55

Petrinex Monthly Reporting – Volumetrics

• The Contacts pop-up window displays contact information for the person who submitted the volumetrics for the facility.

56

Petrinex Monthly Reporting – Volumetrics

Somebody cascaded an allocations volume to me, but this isn’t mine.

• A volume has shown up on your SAF/OAF Ensure Complete report that isn’t yours.

• Query the volumetric submission for the Cascade facility and use the Contacts button to find out who the production accountant is.

– Can’t query another operator’s allocations submission.

57

Petrinex Monthly Reporting – Allocations

There’s a volume on my NGL/Sulphur Valuation Ensure/Complete Report that isn’t mine.

• These volumes are rolled up to the plant that processed them. It may not be the plant operator’s submission that created the valuation.

• Go to the Submit Report Request option in the main menu.

• Select the Allocation – WIO Report. Submit the report request with the following options:

– Correct Start/End Production Month

– Submissions set to Current Submission

– Select the Products that you were allocated incorrectly.

– Leave all other options as All.

– Once request is submitted, report will be returned to your Inbox.

58

Petrinex Monthly Reporting – NGL Valuation

• The report will tell you the Reporting Facility from the allocation submitted along with all the streams you were named an RTP for.

• Query the volumetric submission of the Reporting Facility and use the Contacts button to find out who the production accountant is.

59

Petrinex Monthly Reporting – NGL Valuation

Somebody cascaded an oil split volume to me, but this isn’t mine.

• A volume has shown up on your Oil/LPG Missing/Incomplete report that isn’t yours.

• The Delivering Facility is your facility (the cascaded to facility). The Receiving Facility is the facility that cascaded to yours.

• Query the volumetric submission for the Receiving facility and use the Contacts button to find out who the production accountant is.

– Can’t query another operator’s pipeline splits submission.60

Petrinex Monthly Reporting – Oil Pipeline Splits

There’s a volume on my Oil Valuation Compliance & Balancing Report that isn’t mine.

• RTP Oil Valuation is required whenever you are named as an “Owner” in a pipeline splits submission.

• Query the volumetric submission for the Facility ID (or the Delivering Facility if the reporting Facility ID is a unit) and use the Contacts button to find out who the production accountant is.

– Can’t query another operator’s pipeline splits submission.

61

Petrinex Monthly Reporting – Oil Valuation

Agenda

I. Introductions








IX. Questions

• From the Petrinex Home Page click on

Learning Centre, and click on the “Login”

button.

Access to Petrinex Online

Learning Site


Learning Site

• Choose the appropriate login process

Already a Member?

• If you currently have access to the online

learning centre please do not create a new

userid.

– If you cannot remember your password or

userid, please click on the “Contact Us” button

and someone will get back to you by email

with the required information.

65


Learning Site

Not a Member Yet?For information on how to fill out the self-registration form click on Setting

up Access Using the Petrinex Self-Registration Process which is located

just under the Login Button.


Learning Site

https://www.petrinex.ca/LC/Documents/Setting_Up_Access_for_the_Petrinex_Online_Training_System.pdf


Learning Site

When will the new modules be

available?

• Outlined in red – in validation - to be released next week

• Current plan is for release of all updated modules throughout the month and by end of October

• Release of new modules on PCOS and GCA released end of November

Agenda

I. Introductions








IX. Questions

OGC Update

New Functionality & Clarifications

Mike [email protected]

Outline

1. Summary of Changes

2. Data Conversion – Important Notes

3. Preview of e-Submission – Creating Well/Completion Events

4. Commission Outages

Summary of Changes – OGC • Industry bulletin issued for Summary of Changes, includes link to larger document:

https://www.bcogc.ca/node/15137/download

• Well Infrastructure

• Transition of BC-11 & well statuses

• Injection and Disposal Reporting

• Commingled Wells

• Flaring Volumes

• Facility Linkages, Reporting Flags, Types & temporary reporting batteries

• New company (BA) applications


Data Conversion – Notes

- Data conversion continues to receive significant attention

- Multiple runs and loads to “truth” data

- Continue to make corrections, and anticipate that errors will be minor

- Outstanding work for industry at go-live:

- Currently 122 active well records with no facility link (error)

- Current work to minimize the number of records (down to 50?)

- Report will be run to identify errors and set status to suspended

- Industry will be required to establish facility link if reporting volumetrics post go-live

E-Submission: New Well Events

- The Commission remains British Columbia’s repository for all well data

- Petrinex is populated with limited well data to support the reporting and disposition of volumetrics

- BC – 11 retirement (Whoop!)

- New functionality in existing e-Submission portal

- Webinar training coming Oct 10th (registration in Summary of Changes Bulletin)



BC-11 Retirement

• Previous process created well events via BC-11

• Once Petrinex goes online, the BC-11 process will be retired

• New Completion Events will be created directly in the OGC

eSubmission portal by well permit holders, with system updates

pushed out through the OGC hub.

Data Entry Completion

Ev ent Date UWI

Field

Code

Pool

Code

Sub_Pool

Status

Fluid

Type

Status

Mode

Type

Status

Ops

Type

Status

Type

Type

Status

Eff Date

GCI Top

Depth

GCI

Base

Depth TVD MDTP Facility

OGC eSubmission a a a a a a a a

Petrinex a a a a a

• Select from the Home menu: Well > Completion Events• Enter WA Num: > Query Well• All existing Drilling Events and Completion Events associated to the

queried WA will be displayed• Click New Completion Event

Commission Outages

• Office Move – 4 pm Oct 11th to 8 am Oct 16th


• Data Conversion – Oct 26th – Nov 1st

• Outlined in summary of Changes bulletin:




Other Items?

Agenda

I. Introductions








IX. Questions

Update from the BC Ministry of Finance• RTI (Petrinex BC Inclusion/TACS)Project update

• What you need to be ready

• Transitional Information Notices

1. Reporting, Invoicing and payment due dates

2. OGC Invoice and Payments

3. Penalties and Reporting Errors

4. Deemed Royalty

5. Royalty Estimate Deposits

6. Payments

7. Interest

8. Amending prior production periods

9. Invoices

10.Transitional Penalty Period

• Next steps

• Important dates

RTI (Petrinex/TACS) Project Update

• On track, on budget, within scope

• Completion of final mock conversion

UAT Testing Petrinex/TACS

End to end testing

Finalized all stakeholder cutover plan

10 transition notices

BC Petrinex Nov/Dec 2018 Calendars posted

CASBC General Ledger/Public Accounts

TACSBC Finance Revenue Administration System

PETRINEX(Oil and Gas Reporting System)

IndustryVolumetric Data – Allocations - Valuations

What you need to be ready

• BC Petrinex Inclusion Website - Bookmark, subscribe and familiarize

• Review the BC Oil and Gas Transition Notices

• If not already done so, visit the BC Oil & Gas Commission website for instructions on the review of data conversion files and the preparation of the BA Data Collection form.

• Review Petrinex BC Reporting Calendars 2018/2019

• Review Petrinex training modules

• Know who to call if you are having challenges (Petrinex, MOGR, OGC)

https://www2.gov.bc.ca/gov/content/petrinex

https://www2.gov.bc.ca/gov/content/petrinex/invoices-payments

https://www.bcogc.ca/file-preparation-instructions-petrinex

https://www.petrinex.ca/Calendars/Pages/default.aspx

BC Petrinex Inclusion Website


BC Ministry of Finance Transition Notices

Notice 001 Reporting, Invoicing and Payment Due Dates

• Due Dates during transition

Reporting due dates are changing

Payment due date is changing

• October Invoice details

Levy/OSRT: Final 13 month adjustment

https://www2.gov.bc.ca/assets/gov/petrinex/transition-notices/transition-notice-2018-001-reporting-invoicing-payment-due-dates.pdf

Notice 001: Reporting, Invoicing and Payment Due Dates Continued

Reporting Due Dates

Due October 22:

Due November 15:

Form Production Period

BC-S1 September 2018

BC-S2 September 2018

BC-08 August 2018

BC-15 -

BC-51 August 2018

Form Production Period

BC-08 September 2018

BC-51 September 2018


Invoicing/Payment

October 2018:

• Special runs:

13-month Levy /OSRT adjustment invoices will be issued and due in October 2018 (instead of March 2019).

Incorporates any amendments processed after March 15, 2018 when the 13-month adjustment invoice was last run.

All invoices generated in October will be due October 22, 2018


Invoicing/Payment

November 23, 2018:

• Gas Royalties: Invoices for August and September 2018 production months

• Oil Royalties: No change, invoice is for September 2018

• Oil and Gas Levy/OSRT: Invoices for August and September 2018 production months

All invoices generated on this date are due November 30, 2018


Notice 002 Oil & Gas Commission Invoice and Payment

No changes to the data we use to invoice for the Levy/OSRT

• Your invoice will be based on oil volumetric and marketable gas allocations you report in Petrinex each month.

• No further reporting is required on your part

https://www2.gov.bc.ca/assets/download/BE6E7B10C23F4DD79B55B6D3C7A417E8

Notice 002: OGC Invoice and Payment Continued

Main change:

• We will no longer be running a “13-month adjustment” every March

amendments will now be included on the monthly invoice runs, the same as royalties

Special invoice runs:

• Double invoice run in November to catch up the Levy/OSRT

• Payment is still due at the end of the month


Notice 003 Penalties and Reporting Errors

Up to and including September 2018 Production

• Penalties are still form based and applied for late reporting, generally $20 per day

• Pricing data due November 9, 2018, will be subject to these penalty rules

October 2018 production, going forward

Petrinex non-compliance penalties apply

• $500 for each calendar month a person does not file complete information by the date required

• $100 for each data discrepancy

Recurring penalties will be generated every month until the data that created the error message is completed or corrected.

https://www2.gov.bc.ca/assets/download/546E3515645A436B95DAB4D30704A224

Notice 003: Penalties and Reporting Errors Continued

• Penalties are billed on the 23rd day of the month, two months following

production

• You will know you may be assessed a penalty if you receive a Petrinex

Error Message, such as:

Later on this morning we will talk about how we will manage penalties in the

transition period

Error Code Description

VME Volumetric Balancing and Missing Data Errors

WPE Waste Plant Balancing and Missing Data Errors

PLS Pipeline Splits Missing / Incomplete Compliance and Balancing Errors

OVE Oil Valuation Compliance and Balancing Errors

NSV NGL and Sulphur Valuation Ensure Complete Errors


Notice 004 Deemed Royalty

Purpose:

• Ensures royalty revenue is protected and that reporting omissions are

resolved as quickly as possible

Who:

• Reporting facility operators may be subject to deemed royalties

(penalties and interest) if they do not meet their reporting requirements

• If a reporting facility operator subsequently completes their reporting

requirements, the assessed amount will be credited back to them

• Deemed royalty takes effect beginning with the October 2018 production

period and may first be seen on invoices issued on December 24, 2018

https://www2.gov.bc.ca/assets/download/F0D3E976FB1A4DA683CF7FC5B8000574

Notice 004: Deemed Royalty Continued

You will know you may be assessed a deemed royalty if you receive a Petrinex Error Message, such as:

Calculated for unaccounted for quantities of product as we are unable to determine royalty attributes [owner(s), prices and applicable royalty rates], delaying the calculation and invoicing of royalties

Error No. Error Message

ENC001 Missing SAF

ENC002 Missing SAF (Cascaded)

ENC004 Invalid Stream ID [value]

ENC005 Invalid Owner ID [value]

ENC013 Invalid RTP ID [value]

ENC008 Stream Allocation contains no Stream ID details

ENC010 Stream [value] creates a circular reference

VME0018 Imbalance is other than 0.0


Oil:

Deemed royalty on oil will be triggered when an oil/condensate facility has a volumetric imbalance.

Calculation Oil:

Unaccounted

Quantity

Crown Interest

(100%)

Royalty Rate

(40%)

120% of

Average Price


Gas/By-products:

Deemed royalty for gas or by-product volumes will be triggered when volumes are not allocated.

Calculation Marketable Gas:

Calculation NGLs/Sulphur:

Unaccounted

Quantity

Crown

Interest

(100%)

NGL Royalty Rate

(20%)

or

Sulphur Royalty Rate

(16.667%)

120% Average

Price

Unaccounted

Quantity

Crown

Interest

(100%)

Royalty Rate

(27%)

Highest

Reference

Price in

B.C.


Timeline


Notice 005 Royalty Estimate Deposits

Estimates are going away!!

Going forward:

• Managing Estimate account balances

• Managing Cash balances

https://www2.gov.bc.ca/assets/gov/petrinex/transition-notices/transition-notice-2018-005-royalty-estimate.pdf

Notice 005: Royalty Estimate Deposits Continued

Estimate October 22, 2018:

• Decrease your Estimate account balance to zero to pay the current invoice

charges/outstanding debt.

Going forward:

• Any cash balance remaining at time of go-live into the new royalty system, will

be automatically applied against your next royalty invoice.

• Any residual balance will be used to reduce subsequent Crown invoices.

• CASH Balance will be applied BEFORE any Non-Refundable Credits

(infrastructure or summer drilling credits)


Notice 006 Payments

• New accounts (no more RENs)

• Making a payment

• Payment due date

• How we will apply your payment

https://www2.gov.bc.ca/assets/gov/petrinex/transition-notices/transition-notice-2018-006-payments.pdf

Notice 006: Payments Continued

New accounts (no more RENs)

– OGR – Oil and Gas Royalty Account

– OGC – Oil and Gas Commission Levy/OSRT Account

– OGD – Oil and Gas Deemed Royalty Account

Making a payment

– eTaxBC, Financial Institution Bill Payment or Electronic Funds

Transfer Services, mail (effective date upon receipt)

– Same CIBC bank account numbers will continue for both royalty

payment and Levy/OSRT payment

A BC-15 form is no longer required

Notice 006: Payments Continued

Payments due

• Last day of the month (two months after production) unless that

day is a weekend or B.C. statutory holiday, then next business day

How we apply payment to invoice charges

• Oldest debt on that account is paid first

• Cash is applied first before non-refundable credits

• Non-Refundable Credits (infrastructure and Summer Drilling

credits) are applied automatically after cash balance has been

exhausted


Notice 007 Interest

Effective November 1, 2018, new interest rules apply to:

• Oil and gas royalty reporting processed by us on or after November 1, 2018

• Amendments to oil and gas production periods using reporting and payment dates prior to November 1, 2018

• Audit assessments or adjustments processed on or after November 1, 2018

• Will be charged on the OGR & OGD accounts if not paid in full by the due date

• Will also be charged on the penalty account if not paid in full by the due date

https://www2.gov.bc.ca/assets/gov/petrinex/transition-notices/transition-notice-007-interest.pdf

Notice 007: Interest Continued

Rates:

• Amounts owing to government: 3% above the prime lending rate

• Refund Interest: Prime less 2%

Timing:

• Refund interest will accrue from the 61st day after the account became overpaid

• You must pay all invoiced amounts by the payment due date or your account will become overdue and subject to interest

Note:

• NRCs can only be applied against oil and gas royalties. They cannot be used to offset interest, penalties or deemed royalties


Notice 008 Amending prior production periods

Amending a production period prior to October, 2018 production:

• Use the same form you used for the initial reporting, however some of the formats will change

We are still accepting most legacy forms

Online forms will no longer be available as of October 22, 2018

We will still accept forms generated from your production accounting system as well as .csv, and .pdf

• Invoice format change:

After processing your amendment, instead of delta changes, you will see one row for the reversal/revision and one row for the new entry

https://www2.gov.bc.ca/assets/gov/petrinex/transition-notices/transition-notice-008-amending-prior-periods.pdf

Notice 008: Amending Prior Production Periods Continued

Details: Links to these forms will continue to be available on the Ministry's websiteForm Format Changes Submit to

BC-S1 Monthly Production Statement .ds (from PA system), Excel, PDF [email protected]

BC-S2 Monthly Disposition Statement .ds (from PA system), Excel, PDF [email protected]

BC-08, Marketable Gas & By-product Allocation Report .08 (from PA system), Excel [email protected]

BC-09, Monthly Oil Sales Statement .09 (from PA system), Excel [email protected]

BC-11, Notice of Commencement or Suspension of Operations Electronic Submission Portal (OGC website)

[email protected]

BC-12, Reporting Interest Statement Excel, PDF [email protected]

Form 15A, Monthly Gas Injection Operations Report PDF [email protected]

BC-19, Monthly Natural Gas Plant Processing Statement PDF [email protected]

BC-23, Application for Gas Cost Allowance Excel [email protected]

BC-25, Summer Drilling Credit Application (Amendments only) PDF [email protected]

BC-35, Crude Oil and Condensate Monthly Pipeline Statement Excel [email protected]

BC-36, Central Treating Plant Statement Excel [email protected]

BC-51, Net Profit Monthly Allowable Costs PDF [email protected]

https://www2.gov.bc.ca/gov/content/taxes/natural-resource-taxes/oil-natural-gas/forms-publications/forms


Notice 009 Invoices

• Will be delivered to Petrinex and eTaxBC

• Oil, gas and net profit royalties will be on one invoice

Prior period production amendments, validation adjustments and

audit assessments will be on the monthly invoice

• Data used to generate the invoice will be included in a readable CSV file

which includes column headers for ease of reference

• The client statement is being replaced by a Statement of Account

https://www2.gov.bc.ca/assets/gov/petrinex/transition-notices/transition-notice-2018-009-invoices.pdf

Notice 009: Invoices Continued

Invoices

• Every invoice includes common features: invoice date, reference

number, account number, letter Id, and BA ID

• Each invoice will include a Summary PDF

OGR and OGC invoices will also include a Summary CSV

• Summarizes:

current production month royalty charges

amendments to prior production months

non-refundable credits usage

interest and/or penalty assessments

• Invoice Details CSV

Reverse/Replace, using revision flag of “Y”

Notice 009: Invoices Continued

Statement of Account

• Replaces our current client statement – will also be run on the 23rd of each month

• One may be issued for each account type

• Will only be issued if you have an unpaid amount on the account

• PDF format

• Includes a payment voucher


Notice 010 Transitional Penalty Period

• Further to discussions between Finance and CAPP Petrinex penalties for

reporting errors made during the transitional penalty period will not be

assessed

• Production months affected: October, November and December 2018

https://www2.gov.bc.ca/assets/gov/petrinex/transition-notices/transition-notice-2018-010-transitional-penalty-period.pdf

Notice 010: Transitional Penalty Period Continued

• You will receive a penalty invoice, but it will be adjusted to zero

• You must pay non-penalty amounts and any penalty amount for a

production month other than October, November and December 2018

• We may subsequently assess a penalty if the error is not corrected at the

end of this transitional period

New: Interest charges will be calculated for any unpaid penalties

Important Dates

October 2018: Date What’s happening

October 10 1st Run of Royalty/freehold production tax invoice

October 12 Levy/OSRT invoice

October 15 2nd Run of Royalty/freehold production tax invoice

October 16 Levy/OSRT 13th month adjustment

October 19 Client Statement

October 22 Payment and current S1/S2, BC08 and BC15 is due

October 23 Online Forms are decommissioned (8:00 AM PST)

October 30 BC09 held and processed in new system

Important Dates

November 2018:

** Double Invoice Run**

OGR Gas Invoice for August & September 2018

Levy/OSTR August & September 2018

Date What’s happening

November 5 Petrinex goes LIVE

November 13 GenTacs goes LIVE

November 15 BC08’s for Sept are due

November 23 Invoice run in GenTacs

November 30 Payment due

BC Ministry of Finance - ResourcesBritish Columbia’s Petrinex Project Web Page

• https://www2.gov.bc.ca/gov/content/petrinex

Petrinex Initiatives Page

• Petrinex British Columbia Inclusion Project

• Appendix 8: BC Business Process Changes

BC’s Revenue Transformation Initiative (RTI - Gentax) interface inquiries

• [email protected], Project Director Revenue Transformation Initiative

• Phone: (778) 698-5176

General BC Ministry of Finance Related Project & Transition Inquiries

• Oil&[email protected]

• Phone: 1-800-667-1182

116


http://www.petrinex.ca/205.asp

http://www.petrinex.ca/PDFs/Docs/PBCIP_Industry_Readiness_Handbook.pdf

mailto:[email protected]

mailto:Oil&[email protected]

Agenda

I. Introductions







VIII.Summary of Final Readiness Activities

IX. Questions

118

Important Dates: Conversion Activities and Interoperability Testing

Prior to Petrinex Go-Live

Target Activity Responsibility

Now • Submit Interoperability testing files for all functions. Vendors/Industry

• Submit BA Data Collection Form to OGC. Industry

Until Oct 25 • Continue to submit additions/changes to operated GS/MS/PL facilities. Industry

• Review conversion files and communicate any errors or missing data. Industry

Q3 • Begin releasing BC Learning Modules. Communications Team

Nov 2-4 • Login/Password information communicated to Primary USA. Commission

119

Important Dates: Conversion Activities and Interoperability Testing

Post Petrinex Go-Live

Target Activity Responsibility

Nov 5 • Petrinex Go-Live for October Production Month. Project Team

• Primary USA sets up users and roles for their company. Industry

Early Nov • Update opening inventories from September Prod Month ending inventory. Industry

• Operators of batteries eligible for return fuel credits must update the Returned Fuel settings in Facility Infrastructure.

Industry

• Correct well statuses, well-facility linkages, or other infrastructure (if necessary).

Industry

• Request an Operator Change for any stream (well, unit) in which another BA should be responsible for submitting Royalty Tax Payer information.

Industry

• Enter any Related BA relationships for Oil Valuation purposes. Industry

• Set up Auto-Populate options for Meter Stations (optional). Industry

Jan 31, 2019 • Ensure all new gathering line IDs are attached to batteries for PCOS reporting purposes.

Industry

• Create Alberta/NEB gathering lines and attach to batteries for PCOS reporting purposes.

Industry

Mar 10, 2019

• New deadline for Allowable Costs submissions (previously Mar 15). Industry

120

Important Dates: Reporting Changes for Cutover

PRE-PETRINEX REPORTINGJuly Production MonthGAS 22-Oct Invoice Payment 3 Days Early

BC-15 (Gas) Early & Last Time

August Production MonthFORMS 22-Oct BC-08, BC-51 9 Days Early

GAS 22-Oct Estimates (for Aug) 3 Days Early & Last Time

23-Nov Invoice 1 Invoice run for 2 months

30-Nov Invoice Payment (Aug & Sep same dates)

OIL 22-Oct Invoice Payment 3 Days Early

BC-15 (Oil) Early & Last Time

September Production MonthFORMS 20-Oct BC12 Last Time

22-Oct BC-S1, BC-S2, BC-19 3 Days Early

30-Oct BC-09 1 Day Early

15-Nov BC-08, BC-51 5 Days Early

GAS 23-Nov Invoice 1 Invoice run for 2 months

30-Nov Invoice Payment (Aug & Sep same dates)

OIL 22-Oct Estimates (for Sep) 3 Days Early & Last Time

23-Nov Invoice Later

30-Nov Invoice Payment Short Turnaround

OGC 22-Oct BC-11 (for Sept or earlier) Last day for changes.

121

Important Dates: Reporting Changes for Cutover

PETRINEX LIVE

October Production Month

REPORTING 21-Nov Volumetrics

25-Nov Allocations

10-Dec Valuation

(Oil, NGL, Sulphur)

GAS 23-Dec Invoice

31-Dec Payment

OIL 23-Dec Invoice

31-Dec Payment

1. Identify and Register a Change Leader for your Company.

2. Understand the impacts of PBCIP on your Company. Now

3. Have a Plan to respond to New Changes. Now

4. Prepare your Systems. Now

5. Ensure your staff members are Trained. Q3-4

6. Implement required Pre-Go-Live activities. Ongoing

7. Go-Live and get the benefits. Nov. 5

122

Steps to Readiness Summary

• A Change Leader has been registered for every company!

• The Change Leader will receive all communications related to conversion and should ensure that all responses from the company (Primary USA, operated gathering systems/pipelines, corrections to conversion files) are sent to the appropriate contacts on time.








123


• Continue to read updates the PBCIP Industry Readiness Handbook.

• Create a plan to determine which members of your company must be engaged in readiness actions.

- Conversion activities prior to Go-Live - Post Go-Live activities

(Review Appendix 11 of PBCIP Handbook)- Those impacted by monthly reporting changes for cutover








124


• Take the opportunity to test upload files.- Accepting IIO test files for all functionality now.

• Minimum computer specifications for Petrinex are provided in the PBCIP Industry Readiness Handbook.








125


• Instructions for setting up the Primary USA and users will be communicated as Go-Live gets closer.

• Petrinex learning resources will continue to be updated and communicated.

• Learning modules to begin release in Q3.








126


• Review details and important dates presented today to ensure required conversion and cutover activities are completed on time.

- Complete OGC BA Update form ASAP- Review of posted conversion files from the Commission/Finance.

(Files refreshed as of September)- Deadlines affected by Cutover for July – October production months. - Post Go-Live activities

• The PBCIP Industry Readiness Handbook will be updated with details from this presentation.

Questions