9/17/2018
1
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
OFFSHORE PRODUCTION REPORTING
Reference and reporting management (RRM)
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Who Are We?
We collaborate with oil & gas operators and our Federal partners to ensure timely, accurate, and complete production data that is reported according to current regulations; this data is used to best manage our nation's Federal and Indian energy resources.
2
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Laws Affecting ONRR
• Secretarial Order No. 3299• Order separates the former MMS responsibilities into three distinct
organizations; Bureau of Ocean Energy Management (BOEM), Bureau of Safety and Environmental Enforcement (BSEE), and Office of NaturalResources Revenue (ONRR)
• Federal Oil and Gas Royalty Management Actof 1982 (FOGRMA)• Authorizes the Interior Secretary to enter into cooperative agreements
with any State or Indian tribe to share oil or gas royalty management information, to carry out inspection, auditing, investigation, or enforcement activities (not including the collection of royalties, civil or criminal penalties or other payments) and vehicle inspection activities
3
OFFSHORE PRODUCTION OVERVIEW
9/17/2018
2
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Laws AffectingONRR (cont.)
• FOGMRA• The Federal Oil and Gas Royalty Management Act of 1982 (FOGRMA)
is an act written to ensure that all oil and gas originated on the public lands and on the Outer Continental Shelf (OCS) are properly accounted for under the direction of the Secretary of the Interior, and for other purposes. The Federal Oil and Gas Royalty Simplification and Fairness Act of 1996 (RSFA) revised FOGRMA in an effort to improve the management of royalties from Federal and OCS oil and gas leases, and for other purposes
• § 101. (a) states, “The Secretary shall establish a comprehensive inspection, collection and fiscal and production accounting and, auditing system to provide the capability to accurately determine oil and gas royalties, interest, fines, penalties, fees, deposits, and other payments owed and to collect and account for such amounts in a timely manner.”
4
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Laws AffectingONRR (cont.)
• Royalty Simplification and Fairness Act of 1996• Improves the management of royalties from Federal onshore and Outer
Continental Shelf oil and gas leases.
• Allows the Secretary to delegate to States the responsibilities for all or part of the authorities under the Act:
• Conduct inspections, audits, and investigations;
• Receive and process production and financial reports;
• Correct erroneous report data;
• Issue demands, subpoenas, and orders to perform restructured accounting for royalty management enforcement purposes.
• Charge lessees interest for underpayment of royalties
5
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Laws AffectingONRR (cont.)
•Energy Policy Act of 2005• This law grants the Secretary of the Interior, acting through ONRR, responsibilities over Federal offshore alternative energy and alternate uses of America’s offshore public lands, also known as the Outer Continental Shelf (OCS)
• Assist Indian tribes in the development of energy resources
6
9/17/2018
3
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Code of FederalRegulations (CFR)
•25 CFR – Indian Lands
Parts 200 ‐ 227 – Energy and Minerals
•30 CFR – Mineral Resources
Parts 1201 ‐ 1290 – Office of Natural Resources Revenue (ONRR)
•43 CFR – Public Lands ‐ Federal
Parts 3000 ‐ 3190 – Minerals Management
• Bureau of Land Management (BLM)7
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Code of Federal Regulations (Cont.)
• The CFR provides a codification of the general and permanent rules published in the Federal Register by the executive agencies of the Government
• The CFR is available for purchase from the Government Printing Office (GPO) website, electronically online at www.gpo.gov, or you may check out the CFR at your local library
8
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Information Exchange
• BSEE offices send WELL, ANCR, and FMP information weekly to ONRR.
• Records sent to ONRR are the result of approved Completion Reports, Commingling Applications, etc.
• ONRR validates WELL, ANCR, and FMP data against existing records in the ONRR database.
• When the data passes edits, it updates the ONRR database. This information is available each month to the appropriate operator as a Confirmation Report and can be viewed in the Data Warehouse Portal.
9
9/17/2018
4
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Information Exchange (cont.)
• ONRR sends a weekly file of accepted OGORs and PASRS to BSEE.
• The OGORs provide BSEE with the data needed to help support their functions (i.e. performing on‐site inspections) as well as fulfilling public information requests.
10
BLMINSPECTIONOFFICES
FinancialAccountingSystem
Database
FinancialAccountingSystemRoyaltyLines
OperationsReportsfrom
Operators
ErrorCorrection
ReferenceDataReports
toOperatorsviatheInternet
Confirmation&MissingReportstoOperatorsviatheInternet
MonthlyProductionReports to
States/Tribes/BIA
AuditandComplianceManagement
ManagementReports
BSEERegionalOffices BLMServiceCenter
Onshore OGORLease&Well Information
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Production Reporting Web PageONRR.GOV
12
9/17/2018
5
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Production Reporting
13
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Reporting References
14
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Reporter Handbook
15
9/17/2018
6
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Reporting References
16
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
OGOR Training Videos
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
ONRR YouTube Channel
9/17/2018
7
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Contact Information
19
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Contact Information
20
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
21
Click on the letter of your company and scroll to find who your contact is.
Contact Information
9/17/2018
8
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
eCommerce Contacts
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Who is my Analyst?
https://www.onrr.gov/ReportPay/PDFDocs/operasgn.pdf
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
BSEE Data Centerhttp://www.data.bsee.gov/Main/
24
9/17/2018
9
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Oil and Gas Operations ReportOGOR
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Overview
26
The OGOR is used to report a summary of ALL operations conducted on a lease/agreement during a specific production month.
• Monthly production by well (Part A)
• Disposition of monthly production (Part B)
• Monthly inventory balances (Part C)
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
OGOR Report Overview
27
OGOR
OGOR‐A OGOR‐B OGOR‐C
WellProduction and
Injection
Product Disposition
Product Sales From Facility
(Inventory)
Report Overview – Parts A, B, and C
9/17/2018
10
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
OGOR-A
WATERGASOILWELL1 20 80 10
2 20 80 103 10 50 5
TOTAL 50 210 25
OGOR-B
WATERGASOILSALES 200
PROD. INTO FACILITY 50ON-LEASE 25ON-LEASE 10
OGOR-C
ENDINGINVENTORY
TOTAL 50 210 25
PRODUCTBEGINNINGINVENTORY
PRODUCTION SALES
OIL
TOTAL
10
10
50
50
40
40
20
20
Volumes reported as produced on OGOR‐A must equal volumes reported as Disposed on OGOR‐B.
Volumes reported as produced into a facility (or tank) prior to sale, Disposition Code 10 on OGOR‐B, must equal productionvolumes on OGOR‐C.
Inventory
Production
Disposition
28
Oil and Gas Operations ReportRelationship Between Parts
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Production Reporting Requirements
29
o If you operate a Federal or Indian oil and gas lease or agreement, you must file an OGOR each month for each active lease or agreement when there are wells that are not permanently plugged or abandoned or when inventory exists for the property (paraphrased from 30 CFR §1210.102)
o Reports are due electronically to ONRR approximately 45 days after the production month ends
— January OGOR is due March 15th
o The operator does not have to report a well in drilling status unless there is associated test production
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
eCommerce Reporting
30
9/17/2018
11
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Advantages of eCommerceReporting
31
• Ability for more up‐front edits so the operator can submit more accurate reports
• Historical data is more accurate because monthly reports are processed faster
• Fewer overrides
•
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
32
EMARF ‐ eCommerce Access
The form is available via ONRR’s website:
https://www.onrr.gov/reportpay/PDFDocs/EMARF_Instructions.pdf
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
OGOR Report
33
K0123
9/17/2018
12
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
OGOR Part A
34
K0123
Well Status found in References
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
OGOR Part B
35
K0123
Disp Code found in References
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
OGOR Part C
36
K0123
Petroleum Corporation
K0123
122012
9/17/2018
13
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Save and Validate
37
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Validation Results
38
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Send OGOR
39
9/17/2018
14
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Override
40
Prior to submitting an override request, contact your ONRR Error Correction contactto verify the error warrants an override. You may be required to submit additional override documentation.
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
41
Override (cont.)
SelectOverrideandcompletetheJustificationandRequesterTelephonenumberfields.ClickonSaveandsubmittheoverriderequest.
Smith, Abe
303‐333‐3333
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
42
Override (cont.)
If the override request has been denied, click Unlock and then go to the Report and fix the errors, revalidate, and request a second override or send the OGOR.
If the override request is approved, click Report, validate and send the OGOR.
9/17/2018
15
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Finding Technical Help
43
When you are unable to login or are experiencing other technical difficulties, please contact the BSEE BOEM ONRR Enterprise IT Service Desk (Help Desk):
By Email: [email protected] Phone: (877) 256‐6260 or (303) 231‐3333
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
FACILITY MEASUREMENT POINTS(FMP)
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
FMP Defined
A facility that sells, stores, or transfers Federal or Indian production prior to or at the point of royalty determination; for example, gas plants, tank batteries, or other inventory storage points.
A facility/measurement point is also defined as a metering point where Federal or Indian production is measured for sales, transfers, or royalty determinations; for example, LACT units or orifice meters.
45
9/17/2018
16
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
FMP
In the GOMR, there are 769 royalty FMPs. There are a total of about 1800 active FMPs which include allocation meters and inventory tanks
46
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
FMP Reference Data
Each Regional BSEE Office
• Evaluates/Approves Commingling/Measurement Applications
• Establish FMP numbers for all measurement points. Updates their
system accordingly to reflect the approved data
• Collect, review, and input source measurement documents (meter
& tank run tickets, meter proving reports, & gas volume
statements)
47
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Facility/Measurement Point (FMP)
• 01 ‐ Tank Battery
• 02 ‐ Gas Plant
• 20, 21 ‐ Liquid (LACT) royalty meter
• 22, 23, 24, 25 ‐ Liquid allocation meter
• 30, 31 ‐ Gas royalty meter
• 32 ‐ Gas allocation meter
• 50 ‐ Flaring and Venting meter48
9/17/2018
17
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Description of FMP Number:
01, 20, 21, 30, 31, 50 – Sales Meter, 1st and 2nd digits
32, 22, 23, 24, 25 – Allocation Meter, 1st and 2nd digits
17 – State Code (17‐LA, 42‐TX, 60‐Outer GOMR)
709 – Pseudo County Code
260 – System Number (identifies pipeline system)
F – Sub Location assigned by regional BSEE office
2017709260F
49
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Allocation Meter Example
WD 310550000160
WD 440550001370
20170753850Port Sulphur
(Facility Measurement Point)
WD 450550001380
WD 45G23177193852
(allocation meter)
50
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Commingling Indicators for FMP
1 – One lease, one operator, meter located on lease (non‐commingled)
2 – One lease, one operator, meter located off lease (non‐commingled)
3 – Commingled production with Other Sources (State lease production) ‐ PASR required
4 – Commingled production without Other Sources ‐No PASR required
51
9/17/2018
18
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
FMP Reference Data
52
FMP data is initialized into the ONRR Financial Accounting System from BSEE.
Captured to assure the facility is reported correctly and as approved; i.e., Operator, L/A, Commingling Code, Capacity, etc.
Link for LVS/GVS to compare the run tickets, tank tickets, and gas volume statements against the sales reported on the OGOR
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Production Allocation Schedule ReportPASR
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Why a PASR?
• The PASR is used to allocate only offshore products which are commingled through a single pipeline to the meter
• Confirms the data reported on the OGOR
• Provides key element required to work LVS and GVS exceptions
54
9/17/2018
19
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Allocations
• To allocate a commingled sales volume, production from most or all leases/units must be measured individually prior to commingling in order to establish an allocation factor
• Measurement can be performed by either direct (continuous meter/allocation meter) or indirect (well test) measurements
55
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Allocations
• Using the allocation factors, a volume is allocated back to all leases/units contributing to the system. Operators receive their information from the system operators on a Monthly Allocation Statement
• Lease operators report their allocation volume on the OGOR
• Facility Measurement Point (FMP) operators reports all these commingled volumes, including Other Sources, on the PASR
56
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
• Oil and/or gas attributable to State lease production
• Flash gas and Flash gas from pipeline (retrograde)
condensate (Exception: Discovery system)
• Production that has already been measured for royalty
determination before entering the federal facility
Other Sources
57
9/17/2018
20
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
PASR Reporting
• A PASR is required when the FMP is confirmed with a commingling code of 3 or requested by either BSEE or ONRR
• PASRs are due on a monthly basis, even if there are no Sales/Transfer volumes
• PASRs must be received by the 15th day of the 2nd month following the month of production.
• PASR data reported to ONRR is compiled and sent to BSEE weekly
58
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
eCommerce PASR reporting
59
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
PASR Header and Property Line
60
Big Oil Company
F1111
Req – But you decide
9/17/2018
21
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
PASR Product Information
61
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Validate and Send PASR
62
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
LIQUID VERIFICATION SYSTEM (LVS)
GAS VERIFICATION SYSTEM (GVS)
9/17/2018
22
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
LVS/GVS
Bureau of Safety and Environmental Enforcement(BSEE)
New Orleans
Collects Source Documents and Loads intothe Technical Information
Management System (TIMS)To Verify Sales Data
Office of Natural Resources Revenue(ONRR)Denver
LVS/GVS TeamsResearches, Verifies and Resolves
LVS/GVS Exceptions
Compare with Oil & Gas Operations Reports(OGORs)
64
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Liquid Verification System (LVS)
• RUN TICKETS, PROVING REPORTS, & TANK TICKETS
• REPORTING & VERIFICATION
65
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
• Run FMP Volume Comparison Report (MTCMPVOL) for
the Liquid Verification System comparison program
• Compares sum of run ticket statements for each FMP to the reported OGOR volume(s)
• Requires reconciliation of differences ‐missing reports, data entry errors, etc.
Liquid Verification System (LVS)
66
9/17/2018
23
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Gas Verification System (GVS)
• GAS VOLUME STATEMENT
• REPORTING & VERIFICATION
67
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Gas Verification System (GVS)
• Run the Monthly Gas Volume Comparison Report (MTCMPGAS) for the Gas Verification System comparison program
• Compares sum of gas volume statements for each FMP to the reported OGOR volume(s)
• Requires reconciliation of differences ‐missing reports, data entry errors, etc.
68
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
LVS/GVS EXCEPTIONS
Possible explanations for an exception
• OGOR(s)• Volume(s) misreported
• Volume(s) reported to a different FMP
• Missing (not reported)
• On hold (rejected)
• Gas Volume Statement(s) or Run Ticket(s)• Data is incorrect
• Revisions need to be submitted to BSEE
• PASR • On hold that has “Other Sources”
• Missing that has “Other Sources”
69
9/17/2018
24
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
70
Tools for Assistance
Minerals Production Reporter Handbookhttp://www.onrr.gov/ReportPay/Handbooks/default.htm is the Handbooks page
Production Reporting Contactshttp://www.onrr.gov/ReportPay/PDFDocs/operasgn.pdf is the OGOR – Oil and Gas Operations Report (Form ONRR-4054) and Error Correction Contacts page
Maintain Your System Access and Contact Informationhttp://www.onrr.gov/ReportPay/access.htm includes information on completing the EMARFand the ONRR-4444
Production Reporting Referenceshttp://www.onrr.gov/ReportPay/references.htm includes How to Resolve Errors documents, OGOR Video Training, Offshore FMP information, Reporting Codes, Reporter Letters, and Regulation links
www.onrr.gov website Reporting/Paying – Production Reporting
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
71
Tools for Assistance
Traininghttp://www.onrr.gov/ReportPay/training/default.htm
ONRR Videos on Youtubehttps://www.youtube.com/user/ONRRChannel