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EPAP Compliance Guidance

EPAP Compliance Guidance. Zedi EPAP Education Seminar October 27, 2009. Agenda. Who is Corvelle Review of ERCB’s EPAP Impact on Operators Operators Preparedness Implementation Approach. Corvelle Profile. Consulting firm focused on the oil & gas industry

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EPAP Compliance Guidance

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  1. EPAP Compliance Guidance Zedi EPAP Education Seminar October 27, 2009

  2. Agenda Who is Corvelle Review of ERCB’s EPAP Impact on Operators Operators Preparedness Implementation Approach

  3. Corvelle Profile • Consulting firm focused on the oil & gas industry • Experience with oil & gas spanning more than 20 yrs • field data capture, production accounting, financial accounting • Management consulting, data management & IT • Project leadership • Process review & redesign • Data quality & integration • Facilitation

  4. Corvelle – FocQus Alliance FocQus™ Canada Independent Consultancy Service Organization specialized in Flow Measurement Operating in Canada, US, UK, Brazil, Venezuela, Colombia

  5. What is EPAP? • Enhanced Production Audit Program (EPAP) • New ERCB approach to auditing compliance with ERCB directives and requirements • ERCB Objectives: • Raise level of compliance on measurement & reporting • Raise level of assurance on measurement & reporting

  6. Risk of Noncompliance EPAP goal is to reduce noncompliance Requires operators to identify areas of risk where there can be noncompliance Ensure controls are in place to mitigate risk of noncompliance

  7. Controls Business Processes Control Control Control Control Volumetric Data Process Creation, Collection, Processing & Reporting Evaluate Control Evaluate Control Evaluate Control Evaluate Control 7

  8. Nature of Controls Company, Area & Facility Level Manual vs. Automated Preventative vs. Detective Frequency of Controls

  9. EPAP Components

  10. EPAP Schedule Implementation Phases Q4 2009 – Q3 2010 Q4 2010 – Q3 2011 Q4 2011 Q4 2009 EPAP Directive Issued Trial Declaration Period First Declaration Period Ongoing Declarations 10

  11. EPAP Impact on Operators • Operators need to understand: • Areas of risk of noncompliance • Controls • Organizational processes related to EPAP • Volumetric data flow through their organization • Measurement • Apply Resources • Act, Develop, Implement & Review

  12. Some Perceptions by Operators Operators believe they currently have few controls. Do controls already exist? Potential of increased operating costs with no potential benefits. What are some benefits? There are costs to implement EPAP. Is there any ROI?

  13. Options for Implementing EPAP • Do nothing • Submit declaration only • Do minimum using existing staff • Review as part of normal operations • Conduct small projects focused on key areas • Pursue detailed implementation • Comprehensive review and implementation

  14. Operator Actions • Production / Operations • Identify areas where there is a risk of non-compliance • Identify & implement controls to mitigate risk • Evaluate effectiveness of controls • Revenue / Production Accounting • Identify areas where there is a risk of non-compliance • Identify & implement controls to mitigate risk • Evaluate effectiveness of controls • Audit Group • Assist in evaluating & strengthening controls • Senior Management • Review / approve annual evaluation plan & results • Issue declaration

  15. Recommended Approach

  16. Estimating Effort

  17. EPAP Compliance Guidance Corvelle Consulting 700, 205 - 5 Ave. S.W. Calgary, Alberta T2P 2V7 Phone: (403) 249-5255 E-mail: ClayLong@corvelle.com Web: www.corvelle.com Focus™ Canada 700, 205 - 5 Ave. S.W. Calgary, Alberta T2P 2V7 Phone: (403) 538-5438 E-mail: MAS@FocQus.com Web: www.focqus.com

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