The Enhanced Production Audit Program
The Enhanced Production Audit Program (EPAP) is an AER requirement per Directive 076, and it is in place to ensure operators run their operations in accordance with the measurement and reporting requirements.
Because the AER couldn’t be everywhere, they implemented a program to help ensure compliance. This self-auditing program is intended to have operators examine themselves to ensure they are doing all possible to satisfy regulatory requirements surrounding measurement and reporting and report to the AER where they stand in doing so.
Criteria for Directive 076
There are some criteria in Directive 076 that must be followed, but operators fundamentally have the freedom to tailor their program to their needs. An operator’s approach, implementation, and execution of EPAP might differ from one operator to the next. A junior producer’s approach to conducting the evaluation of controls will most likely differ from that of a large midstream operator.
When asked why operators should be excited about performing an EPAP evaluation, I would say, “Why wouldn’t an operator be excited about exposing risks in their business and doing all possible to reduce or even eliminate them?”
Because operators have the freedom to create their own program, I would encourage them to take advantage of this and ensure that their program is appropriate for the size of your organization, mitigates specific risks to your business, and protects the revenue in your business.
** EPAP is a requirement, but it should be viewed as an excellent chance to safeguard your company’s cash register.
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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