Report Information on Oil & Natural Gas Production
Information about B.C. oil and gas production is reported throughout the oil and gas well and facility life cycle. This information is used to calculate the amount of royalties or taxes due.
- Who reports oil and gas information
- Where information is reported and the type of information reported
- Meeting reporting deadlines
A royalty taxpayer, operator of a reporting facility and the first purchaser of oil must report information. Some information is reported monthly and other information is reported annually.
A producer of oil or gas production is a royalty taxpayer. A producer is a person who takes ownership of oil or natural gas production as it is produced. Producers are the direct recipients of proceeds from the first sale of the oil or natural gas and are responsible for paying royalties on oil or natural gas production.
Operator of a Reporting Facility
Operators of a reporting facility must report required information through Petrinex. You are an operator of a reporting facility if you are the current facility operator on record with the Oil and Gas Commission. As an operator of a reporting facility you are also responsible for monthly and/or ongoing infrastructure reporting in Petrinex.
If the current operator decides to allow a third party to operate the facility, operatorship can be transferred by the operator on record through Petrinex. The new operator must agree to the transfer of operatorship.
A reporting facility is defined broadly in law. It includes, among other things, buildings, structures, installations and equipment used in the recovery, development, production, storage, handling, processing, treatment or disposal of oil and gas. A full list of reporting facility subtypes and descriptions is available in the Petrinex Industry Readiness Handbook (PDF).
A purchaser is a person who purchases oil or condensate produced in B.C. from a reporting facility, and is often referred to as the first purchaser of oil.
We obtain information from industry participants from Petrinex and the Ministry of Energy, Mines and Petroleum Resources (EMPR).
Certain information is reported monthly and annually through Petrinex, depending on your role and the product. Reporting facility operators will report volumetric, allocation and valuation data, if applicable.
Reporting facility operators must report balanced volumetrics for all products at facilities they operate. This information includes inventories, production, receipts, use and storage in that producing month for oil, natural gas, natural gas by-products and water at the facility.
Allocation Reporting for Marketable Gas and Natural Gas By-Products
Reporting facility operators must submit allocation information for all volumetrics that are identified as “allocations triggers.” The reporting facility operator accounts for these volumes by allocating them to:
- A royalty/taxpayer of a well event or unitized operation, or
- The upstream delivering facility (if the royalty/taxpayer and well information is not known)
Oil/Condensate Pipeline Split and Valuation Reporting
The volume of oil and condensate sold is assigned to owners and purchasers through the pipeline split process in Petrinex. Identified owners and purchasers must then report valuation information for their share of these volumes.
Natural Gas Liquids (NGL) and Sulphur Valuation
Royalty taxpayers must report valuation information on NGL and sulphur product allocated to them from gas plants or gathering systems.
Purchasers must report purchase information in Petrinex on a monthly basis. This information includes who sold them the product, as well as the volume, price, value density and sulphur content.
Oil and Gas Commission Reporting
Throughout the regulatory life cycle – application, operational compliance and decommissioning – producers and facility operators report information on their infrastructure, wells, pipelines, and facilties. This information is reported through Petrinex or the Oil and Gas Commission.
Monthly reporting deadlines are listed in the Petrinex reporting calendars.
In some circumstances you must coordinate the timing of submissions with other parties to ensure you meet your reporting deadlines.
For example: Facility operators must volumetrically balance their facilities each month. An upstream facility cannot be fully balanced until the downstream operator has reported its receipts. Since it is each facility operator’s responsibility to be balanced, you are encouraged to contact the downstream operator if the deadline approaches and that information has not been reported.