Why do regulators conduct audits?
The British Columbia Oil and Gas Commission (OGC), the Alberta Energy Regulator (AER), and the Saskatchewan Ministry of Energy and Resources (ER) audit for one primary reason, to ensure the regulatory requirements are being adhered to.
They want to ensure all provisions, approvals, rules, regulations, and requirements are being met.
Factors that can trigger an audit:
- Past company performance
- Risk of operation Operational complexities
- Facility applications
- Cross-border activity
- Recent applications, and so on.
While regulator audits focus on the requirements set out in that jurisdiction, they do not examine best practices for protecting your business or ensuring equitable allocations take place.
Are the proper wells being applied compression fees? Are shrinkages applied to the correct receipt points and volumes? Are the appropriate volumes kept whole throughout the accounting process?
One of the most significant benefits of conducting a facility review prior to a regulatory audit is that you can take an objective look at the measurement and reporting practices holistically to ensure fair and equitable practices are being executed; and yes, to ensure you are meeting the regulatory requirements set forth by the OGC, AER, and ER.
If you need help or direction to make sure your measurement and reporting practices are equitable and compliant, we can help you do it right. If you’re interested in learning more on this topic, with additional questions or discussions, please send me an email waynedunnington@bluechipmrc.com.
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Until next time…
