RESOURCE DEVELOPMENT Petroleum Plaza – North Tower 9945 – 108 Street Edmonton, Alberta Canada T5K 2G6 99-05 MINERAL OPERATIONS INFORMATION BULLETIN May 1999 INDEX A. PRICING AND TRANSPORTATION INFORMATION........................................................ 2 Pricing, Royalty Rates and Transportation Information – March 1999 B. COMMUNICATION UPDATE .................................................................................................. 2 March 1999 Royalty Due Date........................................................................................................ 2 April 1999 OAS Due Date .............................................................................................................. 2 Interest Rate May 1999.................................................................................................................... 2 C. NOTICES ...................................................................................................................................... 3 Acid Gas Product Code ‘20’............................................................................................................ 3 10 Day Turnaround of Rejection Notices........................................................................................ 3 Preauthorized Automatic Debit Payments....................................................................................... 4 1998 AC2, AC3 and AC5 Forms..................................................................................................... 5 February Provisional Assessment and Penalty Charges.................................................................. 5 EUB Facilities and Corresponding Plant Types .............................................................................. 6 Update - Year End Cost Recaptures................................................................................................ 6 Reminder - Client Registry Data...................................................................................................... 7 Reminder - Facsimiles .....................................................................................................................7 Reminder - New Reports ................................................................................................................. 7 Reminder - Year 2000 Compliance Survey..................................................................................... 7 Complete Client Id Listing .............................................................................................................. 8 Projects and Blocks ......................................................................................................................... 8 Struck Clients .................................................................................................................................. 8 Operator Changes ............................................................................................................................ 8 New EUB Plants.............................................................................................................................. 9 D. CORRECTIONS ........................................................................................................................... 9 E. POINTS OF CONTACT .............................................................................................................. 9 Department of Resource Development (Price and Transportation) Hotline ................................... 9 Gas Royalty Client Services Help Desk ......................................................................................... 9 Gas Royalty Program Support......................................................................................................... 9 Calgary Information Centre ............................................................................................................ 9 Alberta Royalty Tax Credit Information ...................................................................................... 10 PLEASE ENSURE YOUR PRODUCTION ACCOUNTANTS RECEIVE A COPY OF THIS DOCUMENT. INFORMATION BULLETIN-MAY 1999 A. PRICING AND TRANSPORTATION INFORMATION For Pricing, Royalty Rates and Transportation Information for March 1999, refer to Attachments 1, 2 and 3. B. COMMUNICATION UPDATE March1999RoyaltyDueDate • Royalty clients are to remit the total amount payable shown on the June 1999 Statement of Account by June 30, 1999. 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 June 1999 Statement of Account shows your amount payable as of the Statement issue date. It includes any outstanding balances from your previous statement, your March 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 March 1999 if it is paid in full by June 30, 1999. • 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. April 1999 OAS and VA4 Due Dates The OAS and VA4 for the production month of April 1999 are due in the Department office by June 15, 1999. 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. Each keying service will provide their cut-off date, if requested. • For EDI clients, the receipt date is when Value-Added Network (e.g., 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 The Department of Resource Development interest rate for May 1999 is 7.50% INFORMATION BULLETIN – MAY 1999 C. NOTICES Acid Gas Product Code ‘20’ The Energy Utilities Board (EUB) has modified S18 reporting to include a new product code. Code ‘20’ for Acid Gas is to be used when acid gas is disposed of by injection (refer to Production Accounting Handbook – December 1998 Edition). Effective in the January 1999 Billing Period, March 1999 calendar month, the Department of Resource Development has now added this new product code onto the MRIS system. All Injection Facility operators must now use the acid gas code ‘20’ where acid gas is being injected. In the past, some facility operators were using code ‘02’(gas) and this must now be changed to the valid code. Please contact the EUB at (403) 297-8952 to determine the effective date that this code should be reflected on your S18. The Department no longer requires an OAS to be filed to report acid gas as C02 for Injection Facilities only. When a product code of ‘20’ is reflected on an S18 it will not be incorporated into the S to OAS reconciliation. Although the Department advises that an OAS is not required at an Injection Facility, acid gas must still be reported and filed on the OAS at the up-stream facility. Please refer to the Alberta Natural Gas Royalty – Principles and Procedures dated January 1, 1999, Appendix A, Volumetric Reconciliation. Refer to point #3 Reconciliation Products which identifies: “C02 will be rolled up with Gas in gas gathering system and processing plant reconciliation because S8/S20 dispositions sometimes contain carbon dioxide volumes which are reported as part of the gas disposition on the S documents, and as a C02 product volume on the OAS. The Reconciliation Product resulting from this product roll-up will be “GAS”. Any volume subject to provisional assessment will be assessed as product gas. This roll-up is not required for injection facility reconciliation, as S18 addresses C02 as a separate product.” Contact Rose Dykes at (780) 422-9239 for additional information. 10 Day Turnaround of Rejection Notices In July 1998 the Department made a commitment to implement “Reasonable Notification of Rejected Documents”. It was established that ten business days from the time the Department receives a document to the date on the edit reject letter (or next business day) represents a reasonable turnaround time for the Department to issue notification of document rejection. This 10 day turnaround time was to ensure that Royalty Clients had ample time to receive their reject and resubmit the corrected form. If the Department did not meet the reasonable turnaround time and the client was charged an additional penalty because of the late rejection notice this was considered a Department error and the additional penalty was reversed. Effective June 1999, royalty clients who receive a reject letter dated beyond the 10 business days, must submit the corrected documents and a letter requesting a penalty reversal within 60 days from the date of the reject letter in order for a penalty reversal to be considered. The form and the letter do not have to be received together. 2 INFORMATION BULLETIN – MAY 1999 Pre-Authorized Automatic Debit Payments Requests have been made by Industry clients to make Departmental payments through pre-authorized automatic debit.