MINERAL OPERATIONS INFORMATION BULLETIN February 2000 INDEX
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RESOURCE DEVELOPMENT Petroleum Plaza – North Tower 9945 – 108 Street Edmonton, Alberta Canada T5K 2G6 00-02 MINERAL OPERATIONS INFORMATION BULLETIN February 2000 INDEX A. PRICING AND TRANSPORTATION INFORMATION ........................................................ 2 Pricing, Royalty Rates and Transportation Information – December 1999 B. COMMUNICATION UPDATE ..................................................................................................2 December 1999 Royalty Due Date ..................................................................................................2 January 2000 (OAS) and VA4 Due Dates ......................................................................................2 Interest Rate February 2000.............................................................................................................3 Alberta Resource Development - Gas Royalty Operations Calendar ..............................................3 C. NOTICES .......................................................................................................................................3 Deadline for Changes to Remaining Useful Life (RUL) .................................................................3 Reminder - 1999 AC4 Forms (Allowable Operating Costs)............................................................3 Reminder - Business Design Meetings ............................................................................................4 Reminder - Natural Gas Liquids – Reference Prices and Allowances Changes as a Result of the Natural Gas Liquids Review..............................................4 Reminder - Submission of 1999 Allowable Cost (AC) Forms.........................................................5 Reminder - Close-out for Operations ...............................................................................................5 Reminder - 2000 Select Prices .........................................................................................................7 Weighted Average Aggregator Overhead Marketing and Administration Charges(OMAC) ...........7 Annual Weighted Average Gas Reference Price .............................................................................7 Due Dates of Various Forms............................................................................................................8 November 1999 Provisional Assessment Charge ............................................................................9 November 1999 Penalty Charges.....................................................................................................9 Complete Client ID Listing..............................................................................................................9 Alberta Royalty Tax Credit Program Quarterly Rate.......................................................................9 Projects and Blocks........................................................................................................................10 Struck Clients.................................................................................................................................10 Operator Changes...........................................................................................................................11 New EUB Plants ............................................................................................................................11 D. CORRECTIONS..........................................................................................................................11 New Plants - Correction.................................................................................................................11 E. POINTS OF CONTACT ............................................................................................................ 11 Department of Resource Development (Price and Transportation) Hotline & Internet.................11 Gas Royalty Client Services Help Desk ........................................................................................11 Calgary Information Centre ..........................................................................................................12 Alberta Royalty Tax Credit Information .......................................................................................12 PLEASE ENSURE YOUR PRODUCTION ACCOUNTANTS RECEIVE A COPY OF THIS DOCUMENT. Internet Address: www.energy.gov.ab.ca INFORMATION BULLETIN – February 2000 A. PRICING AND TRANSPORTATION INFORMATION For Pricing, Royalty Rates and Transportation Information for December 1999, refer to Attachments1,2,2A,and3. B. COMMUNICATION UPDATE December 1999 Royalty Due Date • Royalty clients are to remit the total amount payable shown on the March 2000 Statement of Account by March 31, 2000. If the amount payable includes accrued current period interest, the interest has only been accrued to the statement issue date. Clients must also include the additional interest that has accrued since the statement issue date to the date of payment, using the per diem amount provided. • The March 2000 Statement of Account shows your amount payable as of the Statement issue date. It includes any outstanding balances from your previous statement, your December 1999 Invoice amount and any applicable current period interest charges. It also identifies refunds resulting from overpayments. • Current period interest will not be charged on current period charges for the production month of December 1999 if it is paid in full by March 31, 2000. • Current period interest will accrue on any overdue charges commencing the first day after the due-date until it is paid in full. Note: If the due date falls on a non-business day, payments will be accepted on the next business day. January 2000 (OAS) and VA4 Due Dates The OAS and VA4 documents for the production month of January 2000 are due in the Department offices by March 15, 2000. NOTE: • The OAS due date specified by the Department is the date by which the required OAS data must be received in the Department. • Keying services require sufficient time to process and transmit the data by the Department’s due date. Contact your keying agent for their respective cut-off dates. • For EDI clients, the receipt date is when Value-Added Network (i.e. GE) receives the transmission. • The importance of timely receipt of OAS data by your service provider and the Department is critical to ensure accurate royalty calculation and prevention of Provisional Assessment. 2 INFORMATION BULLETIN – February 2000 Interest Rate The Department of Resource Development interest rate for February 2000 is 7.50%. Alberta Resource Development - Gas Royalty Operations Calendar A calendar for the year 2000 is enclosed, for industry use. It shows various important dates affecting Gas Royalty Operations. C. NOTICES Deadline for Changes to Remaining Useful Life (RUL) A Facility Cost Centre (FCC) operator may request a change to the remaining useful life of the FCC reserves by submitting an amended AC1 form to the Department prior to the processing of annual allowable costs for the previous production year. To ensure that a request for an RUL change is processed prior to the Initial Annual Billing Period (IABP), the amended AC1 form must be received on or before May 15th of the year following the production year to which the change applies. This date of May 15th was discussed and agreed to with the Business Design Team in Calgary. The Principles and Procedures will be updated to reflect this change. • If the Department approves the request, the effective date of the change will be the first day of the production year to which the change applies. • If the AC1 is received after the May 15th deadline, the effective date of the change will be the first day of the next production year. • Changes to the remaining useful life of a Facility Cost Centre will not be retroactive. • Please refer to Information Letter (IL) 98-06 (which is still in effect) dated February 11, 1998, and Section 16.5 of the Principles and Procedures for more information. For example, if an AC1 form is received on May 14th, 2000, prior to IABP, the change will be effective from January 1, 1999; and if an AC1 form is received on May 16, 2000, the change will be effective from January 1, 2000. Reminder - 1999 AC4 Forms (Allowable Operating Costs) AC4 forms pertaining to the 1999 production year are required for the Facility Cost Centres tied to the 38 designated facilities. The due date for the AC4 form is March 31, 2000. Operators of Facility Cost Centres tied to designated facilities are encouraged to submit their AC4 forms before the due date so that they may have the opportunity to resubmit corrected AC4 forms should rejections occur. AC4 forms received after the due date are subject to penalty charges. Special Case Reconciliation Groups (Designated facilities and plant types) were dismantled for the 1998 Unit Operating Cost Rate (UOCR) calculation. Therefore, 1999 AC4 forms are not required for facility cost centers which were transferred from the Reconciliation Groups to the Plant Type Groups. 3 INFORMATION BULLETIN – February 2000 Operators may file amended AC4 forms for the 1996 and 1997 production years for facility cost centers which were tied to a Designated Facility before dismantling occurred. Please note that the 1996 production year is operationally closed. The close out date for primary documents for the 1997 production year was February 15, 2000. Please refer to the article in