David Penton | Mike Loose Dapenco Inc. | BCA Project Services

1. Measurement & Reporting Data Analysis for
Compliance
Canadian Digital Oilfields Conference – May 18, 2022

2. Agenda
• Introduction
• The case for compliance
• Why data matters to compliance
• Compliance, data and the bottom line
• Practical considerations w/ data analysis
• Identifying potential error sources before they become non-
compliance issues
• Discovering potential error sources through data analysis
• Conclusion

3. Getting Useful Results from Volumetric Data Analysis
Consider:
• What if you can’t tell whether publicly reported Vent or Trucked
volumes are realistic?
• You can’t manage what you can’t measure.
• There is a direct correlation between the accuracy of reported data
and its value.

4. Compliance Indicators through Data Analysis
Industry has a need for accuracy necessitates quick, useful assessment
techniques
• Analysis of relevant data pinpoints measurement and reporting
improvement opportunities
• Information displayed with visual indicators, i.e. bubble maps,
reveals outlier data excursions for facilities where regulatory limits
have been exceeded for:
• Reporting vent volume estimates
• Trucked oil receipt volumes into proration batteries

5. Improving Data Reliability with Compliance Checks
• Analysis of relevant data pinpoints top uncertainties
• e.g. Corporate daily data,
public data
• Is your data trustworthy?
• Production reporting must
be accurate; otherwise,
non-compliance must be
addressed with Regulator

6. Improving Data Reliability with Compliance Checks
• e.g. Corporate daily data,
public data
• Is your data trustworthy?
• Production reporting must
be accurate; otherwise,
non-compliance must be
addressed with Regulator
• Analysis of relevant data pinpoints top uncertainties
• e.g. Tank venting, excessive
trucked production into
proration batteries
• Unaddressed field measurement
uncertainties impact public data
• Data analysis can be used to
validate reliability of data, identify
improvement opportunities

7. Business Benefits from Identifying Data Uncertainties
• Measurement uncertainties degrade the business value of production
data
• Accurate measurement assures reliable results

8. Business Benefits from Identifying Data Uncertainties
• Measurement uncertainty degrades business value of production data
• Accurate measurement assures reliable results
• Volumetrics
• Custody transfer
• Prorations
• Emissions
• GHG Reduction

9. Business Benefits from Identifying Data Uncertainties
• Volumetrics
• Custody transfer
• Prorations
• Emissions
• GHG Reduction
• Measurement uncertainty degrades business value of production data
• Accurate measurement assures reliable results
• Alberta Emissions Offset Registry
• Alberta Emission Performance
Credits
• Risk Assessments
• AER Remote Sensing Reports
• Clean Carbon Status
• Emissions Factor Assessment
• FERC Requirements

10. End-User Data Analysis Applications
• ESG projects to reduce methane and GHG emissions
• Environmental impact of GHG emissions reduction
• Achieving Performance Standards for emissions reduction by 2030
• Carbon credit transactions
• Commercial opportunities with sustainable production methods

11. Practical Considerations with Data Analysis
• Valuable insights result by qualifying volumetric data
• Consider the following examples:
• A single unrepresentative gas-in-solution factor may contribute
up to thousands of erroneous reported vent volume estimates
• Capital spending commitments, i.e. for VRUs are significant to
resolve non-compliance events
• Truck-in meter stations cost upwards of $250-$400K, in some
fields equivalent to drilling a well

12. Application of Data Analysis to Public Data
• Data Analysis Case #1: Vent and Production Data
• Data Analysis Case #2: Receipt and Production Data

13. Potential Error Sources - Example #1
Gas/Oil
Ratio
Stock
Tank Oil
Gravity
GIS Factor
kPa(g) o
C m
3
/STm
3 o
API m3 gas/m3 STO per kPa(g)
January A 487 15.0 20.3 43.9 0.04172
February A 380 15.0 10.0 40.0 0.02626
January B 1349 15.0 57.5 47.9 0.04260
February B 1798 15.0 34.9 47.4 0.01940
January C 1303 15.0 50.2 47.8 0.03853
February C 1587 15.0 14.2 47.4 0.00895
Date and
Location
Flash
Conditions
• Tank vapor estimates not determined using reliable data and factors
can go undetected, contributing to uncertainties for climate change
reporting

14. Potential Error Sources - Example #2
• Measurement error incurred by unmetered trucked-in oil to a
proration battery is absorbed in flow-lined well volumes
Source: Directive 17, Fig 5.10

15. Staying Ahead of Regulatory Tank Venting Limits
• Hefty reductions in AER Directive-060 Overall Vent Gas Limits call for
accurate volumes to design reliable vapor containment solutions with
portable and permanent Vapor Reduction Unit (VRU) systems.
Site (OVG) Vent Limit/month
(E3m3)
Daily Site (OVG) Vent Limit
(E3m3/day)
Before 2020 24 0.8
After January 1, 2020
- Only includes DVG and Non-routine
- Excludes pneumatics, glycol dehys,
compressor seals
15 0.5
After 2021-12-31
- New sites cannot exceed 3 E3m3/month
3 0.1

16. Data Analysis Case #1: Vent and Production Data
• Compare VENT & PRODuction trends for:
1. Single Well Batteries (Type 311)
a. VENT / PROD ratio by facility
b. VENT / PROD ratio by well formation
2. Multi-well Proration Batteries (Type 322)
a. VENT / PROD ratio by facility

17. Data Analysis Case #1: Vent and Production Data cont…
1. Single Well Batteries (Type 311)
a. VENT / PROD ratio by facility
b. VENT / PROD ratio by well formation
Context:
• Where VENT / PROD is used as gas-to-oil ratio (GOR)
• GOR is expected to be 0.007 e3m3 gas / m3 oil

18. Data Analysis Case #1: Vent and Production Data cont…
1. Single Well Batteries (Type 311)
a. VENT / PROD ratio by facility
where VENT / PROD ratio > 0.069
Fig 1. Histogram of VENT/PROD Ratio > 0.069 Fig 2. Geospatial Bubble Map

19. Data Analysis Case #1: Vent and Production Data cont…
1. Single Well Batteries (Type 311)
a. VENT / PROD ratio by facility
where VENT / PROD ratio > 0.69
Fig 3. Histogram of VENT/PROD Ratio > 0.69 Fig 4. Geospatial Bubble Map

20. Data Analysis Case #1: Vent and Production Data cont…
1. Single Well Batteries (Type 311)
b. VENT / PROD ratio by well formation
Fig 5. List of GOR means by Formation Fig 6. Geospatial Bubble Map

21. Data Analysis Case #1: Vent and Production Data cont…
2. Multi-well Proration Batteries (Type 322)
a. VENT / PROD ratio by facility
where VENT / PROD ratio > 0.069
Fig 7. Histogram of VENT/PROD Ratio > 0.069 Fig 8. Geospatial Bubble Map

22. Data Analysis Case #2: Receipt and Production Data
• Compare RECeipt and PRODuction trends for:
• Multi-well Proration Batteries (Type 322)
where REC/PROD > 1 and PROD > 1,000 m3/month
Fig 9. Example of Proration Factor and REC/PROD Ratio vs. 2021 Month

23. Data Analysis Case #2: Receipt and Production Data cont…
• Geospatial representation where bubble
colour and size represent operator and
comparative REC/PROD ratio respectively
Fig 10. Histogram of REC/PROD Ratio Fig 11. Geospatial Bubble Map

24. Conclusions
Both digital data solutions offer useful methods for both producers and
regulators to identify accuracy improvement opportunities.