Gas Royalty Calculation Information Bulletin October 2001
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ENERGY Petroleum Plaza – North Tower 9945 – 108 Street Edmonton, Alberta Canada T5K 2G6 01-10 GAS ROYALTY CALCULATION INFORMATION BULLETIN OCTOBER 2001 A. PRICING RATES AND TRANSPORTATION INFORMATION Pricing, Royalty Rates and Transportation Information – August 2001.............................................2 B. NOTICES Alberta Natural Gas Principles and Procedures-September 2001 Edition Now Available ................2 EUB Facilities and Corresponding Plant Types.................................................................................2 October 2001 OAS and VA4 Due Date..............................................................................................2 New Form Created for Year End Close-Out Requests......................................................................3 C. MONTHLY INFORMATION August 2001 Royalty Due November 30............................................................................................3 September 2001 OAS and VA4 Due November 15 ..........................................................................3 Interest Rate October 2001................................................................................................................4 July Provisional Assessment Charge.................................................................................................4 July Penalty Charges .........................................................................................................................4 Alberta Royalty Tax Credit Program Quarterly Rate..........................................................................5 D. INFRASTRUCTURE DATA CHANGES Client ID Listing..................................................................................................................................5 Projects/Blocks...................................................................................................................................5 Struck Clients .....................................................................................................................................5 Operator Changes..............................................................................................................................6 New EUB Plants.................................................................................................................................6 E. REMINDERS Royalty Deposit Adjustment...............................................................................................................6 Nova Tolls – Multiple Gas Reference Prices .....................................................................................7 Regulation Changes to the Natural Gas Royalty Regulations, 1994 (A.R. 351/93) ..........................7 F. PRINCIPLES AND PROCEDURES Updates..............................................................................................................................................9 G. POINTS OF CONTACT Department of Energy Hotline & Internet...........................................................................................9 Gas Royalty Calculation...................................................................................................................10 Calgary Information Centre .............................................................................................................10 Alberta Royalty Tax Credit Information ...........................................................................................10 PLEASE ENSURE YOUR PRODUCTION ACCOUNTANTS RECEIVE A COPY OF THIS DOCUMENT. Internet Address: www.energy.gov.ab.ca INFORMATION BULLETIN – October 2001 A. PRICING RATES AND TRANSPORTATION INFORMATION For Pricing, Royalty Rates and Transportation Information for August 2001, refer to Attachments 1, 2, 2A, and 3. B. NOTICES Alberta Natural Gas Principles and Procedures-September 2001 Edition Now Available The Department updates the Alberta Natural Gas Royalty Principles and Procedures manual when there is a major change in relevant policy or legislation, and regularly to incorporate information published in Information Letters and Information Bulletins. The latest edition of the Alberta Natural Gas Royalty Principles and Procedures manual, the September 2001 Edition, with current updates for major changes in legislation and policy is now available for pick up at: Alberta Department of Energy Calgary Information Centre 3rd Floor, Monenco Place 801-6th Avenue SW Calgary, Alberta The Guidelines may also be printed from the Department’s Internet site located at: www.energy.gov.ab.ca EUB Facilities and Corresponding Plant Types Please refer to Attachment 6 for our current registry of EUB facilities and their corresponding plant types. October 2001 OAS and VA4 Due Date The OAS and VA4 documents for the production month of October 2001 are due in the Department offices by December 15, 2001. However, due to the reduced number of business days during the Christmas season, we are commencing December’s invoice no later than December 17, 2001. In order to assist the Department with a timely invoice release, we are requesting that operators submit October 2001 OAS and VA4 documents by December 13, 2001, as this will reduce the amount of data to be keyed or loaded into our system at the last minute. Please note that the due date of December 15, 2001 and the grace period of 15 days for current period interest on provisional assessments is not affected by this request. 2 INFORMATION BULLETIN – October 2001 New Form Created for Year End Close-Out Requests Normally, two years after the end of a production year, a production year is operationally closed and the Mineral Revenues Information System (MRIS) rejects any royalty documents submitted for that production year. Documents for a closed-out year will not be accepted unless the Department grants authorization for the year to be opened. Royalty clients now have an option in how they request the opening of a closed-out year. Instead of a written request in the form of a letter to the Department, you may now submit a completed form called “YEAR END CLOSE OUT OVERRIDE” (YECO). Refer to Attachment 7 for the YECO form and the procedures for completion. Royalty Clients must complete this form in its entirety, and copies of the documents must accompany the request, or the Department will deny the request. C. MONTHLY INFORMATION August 2001 Royalty Due November 30 • Royalty clients are to remit the total amount payable shown on the November 2001 Statement of Account by November 30, 2001. 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 from the statement issue date to the date of payment, using the per diem amount provided. • The November 2001 Statement of Account shows your amount payable as of the Statement issue date. It includes any outstanding balances from your previous statement, your August 2001 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 invoice charges for the production month of August 2001 if it is paid in full by November 30, 2001. • 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. • Cheques are payable to the Minister of Finance, Province of Alberta September 2001 OAS and VA4 Due November 15 The OAS and VA4 documents for the production month of September 2001 are due in the Department offices by November 15, 2001. 3 INFORMATION BULLETIN – October 2001 NOTE: • If the due date (15th) falls on a non-business day, the next business day will apply as the due date for OAS and VA4 documents. • 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 the 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. Interest Rate October 2001 The Department of Energy’s interest rate for October 2001 is 6.25%. July Provisional Assessment Charge The net Provisional Assessment Charge for the July 2001 billing period was ($7,560,401.05). This includes $74,455,047.82 in first time provisional assessments and ($82,015,448.87) in reversals of provisional assessments for all production periods. July Penalty Charges The following are the Penalty Charges by form type for the July 2001 billing period: FORM Penalties Charged AC2 $27,400 AC4 $3,000 AC5 $35,800 GR2 $0 NGL1 $1,000 VA2 $0 VA3 $0 VA4 $0 Total Charged $67,200 Total Reversed ($20,600) Net Penalties Charged for 2001/07 $46,600 4 INFORMATION BULLETIN – October 2001 Alberta Royalty Tax Credit Program Quarterly Rate For the fourth quarter of 2001, the Alberta Royalty Tax Credit rate will be .2500. This rate is based on a royalty tax credit reference price of $341.57 per cubic metre. The Alberta Royalty Tax Credit rates for the past year were: Third Quarter, 2001 .2500 Second Quarter, 2001 .2500 First