ONRR Publishes Clarifications on Unbundles Plants


Last week the ONRR published new documents as examples of how to calculate unbundling percentages for several plants. On the ONRR webpage, they again give industry an example of how they expect operators to do the unbundling – still requiring operators to use old numbers to calculate the percentages and then amend them when the agency publishes new numbers.

How to use the published Unbundling Cost Allocations (UCAs) posted on ONRR website Sept 8, 2014 –

Example:

1. ONRR publishes UCAs for 2010.
2. You use 2010 UCAs to estimate 2011, 2012, and 2013.
3. ONRR publishes UCAs for 2011 and 2012.
4. You replace estimated values for 2011 and 2012 (there is no change for 2013).
5. You use 2012 (most current) UCAs for future reporting period estimates.
http://onrr.gov/unbundling/default.htm

Given the latest proposed rule changes increasing penalties for ‘knowing and willful’ misreporting, it would seem to me that an operator, knowing the agency will probably change the numbers in the future, could be hit will penalties for estimating 2011, 2012 and 2013 when using the published 2010 numbers.

The September 8, 2014 clarifications on the ONRR site include pdfs on the following plants:

– Buena Suerte
http://onrr.gov/unbundling/pdf/Buena_Suerte_Transportation_System.pdf

– Lybrooke & Otero
http://onrr.gov/unbundling/pdf/Otero_and_Lybrook_Transportation_Systems_Huerfano_Mountain_Gas_Plant.pdf

-San Juan – Ignacio
http://onrr.gov/unbundling/pdf/Williams_San_Juan_Conventional_Trransportation_System_Ignacia_Plant.pdf

-San Juan – Blanco
http://onrr.gov/unbundling/pdf/ConocoPhillips_San_Juan_Blanco_Plant.pdf

– Carlsbad Transportation system
http://onrr.gov/unbundling/pdf/Enterprise%20Carlsbad%20Transportation%20System%20and%20Dew%20Point%20Plant.pdf

– ValVerde
http://onrr.gov/unbundling/pdf/Val_Verde.pdf