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Welco

me!To the Cost Analysis Reporting

Enhancement (CARE) Online Training Course

In 2009, Alberta Energy required Oil Sands Royalty (OSR) Project operators to provide additional information that will enable the department to improve reporting of Oil Sands activities to Albertans.

This training material will discuss what you need to know to submit the CARE reporting workbooks using Alberta Energy's Electronic Transfer System (ETS).

All CARE reporting workbook data will be included in the Oil Sands Administrative and Strategic Information System (OASIS) Phase 2.

Welcome

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Date Revisions Type Page Number

November 7, 2011 Updated Content All

September 1, 2012 Conversion All

Revisions

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ETS Correspondence

Course Pre-requisite:

In this module, you will learn:

• CARE Information Background• CARE Key Reasons for Reporting• CARE Data Requirements• CARE Workbook Submissions• Statement of Approval• Forms and Workbooks• Amendments• File Naming Conventions• Filing Deadlines• How to submit CARE Reports • How to retrieve CARE Reports • CARE Resources

 Introduction

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Alberta Energy introduced the Cost Analysis and Reporting Enhancements (CARE) reporting forms in December 2008 which were updated in 2011 to reporting workbooks.

CARE reporting is mandatory under the Oil Sands Royalty Regulation 2009.

Under this legislation, Alberta Energy will apply reporting enforcement provisions to any operator not providing these reports to the Minister as specified.

CARE Cost Reporting Workbooks must reconcile to the annual End of Period Statements (EOPS) reporting to Alberta Energy, which are subject to Crown audit.

 Background

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Project Assessment and Tracking

• Provides Alberta Energy an understanding and assessment of new OSR projects and project amendment applications.

• Tracks the evolution of approved OSR projects to ensure their implementation is progressing according to the original Project Approval.

Royalty Collection and Verification

• Ensures that oil sands royalties are collected in a timely and accurate manner in accordance with the Oil Sands Royalty Regulations, OSR Guidelines and each OSR Project Approval’s descriptions and conditions.

• Ensures the information claimed on Project revenues, costs and other information are appropriate and verifiable.

Policy Development and Forecasting

• Assists Alberta Energy in assessing effectiveness of the Royalty Regime.

• Supports policy development, strategic planning and forecasting processes.

 Key Reasons for Information Reporting

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The OSR Operator must provide Revenue Data for: Bitumen/Bitumen Blend Revenue for In-Situ Projects Bitumen Blend Netback Calculation for In-Situ Projects Transportation Costs for In-Situ Projects

Diluent Supplied to a Stream for In-Situ Projects

Other Oil Sands Products Revenue for Mining and In-Situ Projects Western Canadian Select (WCS) Sales (select operators)

The OSR Operator must report to Alberta Energy the: Capital Costs incurred by or on behalf of the lessee or operator of the approved Oil Sands Project. This data is segregated into the following life cycle stages:

• Initial PNCB • Strategic • Sustaining • Reclamation/Abandonment

Operating Costs incurred for the approved Oil Sands Projects (including In-Situ Projects and Mining Projects).

 Data Reporting Requirements

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• Annual Volumetric Data at the OSR Project level. All measurements are standardized as reported to the Energy Resources Conservation Board (ERCB) and are identified in ERCB Directive 017 – Measurement Requirements for Upstream Oil and Gas Operations.

• Annual Operations Data at the OSR Project Level. For example, the number of site employees and emissions data.

• Oil Sands Deposit Data for Mining Projects and Reservoir Data for In-Situ Projects.

• Initial and remaining Project area’s proven and probable Reserves Data. The calculation of reserves is based on gross reserves prior to royalty determination and is prepared in accordance to recognized reserve evaluation methods, i.e. Canadian Oil & Gas Evaluation Handbook. Information should not be confused or compared to reporting for securities purposes.

 CARE Project workbook includes reporting on the following…

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All workbooks must be submitted electronically in Excel using Alberta Energy’s Electronic Transfer System (ETS) by the filing deadlines.

The ETS is a secure web application portal. The Correspondence in ETS allows Oil Sands Royalty clients to send and receive data through a secure connection.

NOTE: As the information contained in the CARE reporting will be used to build the OASIS database, no changes to the CARE form's format are allowed.

Workbook Submissions

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A Statement of Approval must accompany the submission of the CARE workbooks for each reporting period. The approval of the workbooks must be approved by the operator’s Chief Financial Officer or another senior officer on behalf of the operator.

Note: The senior officer of the operator must be approved in advance by the Minister.

A Statement of Approval:

• Is a separate document, such as a letter, accompanying the CARE submission, providing that such a letter clearly references the report to which it relates.

• Clearly indicates the name of the individual approving the report.

• Includes a scanned signature page with the electronic submission.

 Statement of Approval

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All CARE reporting forms and workbooks are available on Alberta Energy's Oil Sands Operations website http://www.energy.alberta.ca/OilSands.

Note: Scroll down the page to Cost Analysis and Reporting Enhancement (CARE) section.

See also Appendix C – Cost Analysis and Reporting Enhancement (CARE) Forms, and Appendix D – CARE Glossary under the Alberta Oil Sands Royalty Guidelines Appendices.

Forms and Workbooks

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CARE Cost and Revenue WorkbooksAs these workbooks report on a cumulative year to date basis, amendments within a period for previously submitted information must be incorporated in the current period’s quarter reporting. Specifically for the CARE Cost workbook, all 4th quarter reporting for a period must reconcile to the OSR/CSR project’s End of Period Statements (EOPS).

If an amendment is necessary after the period has ended and an EOPS has already been filed, amendments to both the EOPS and the 4th quarter CARE Cost and Revenue workbooks is required.

CARE Project WorkbookAmendment to project information requires full workbook replacement as soon as changes have been identified by the operator.

 Amendments

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File naming conventions have been developed for all CARE workbook reporting.

When submitting an Excel File to Alberta Energy, all CARE workbook reporting must follow the file naming conventions listed in the Alberta Oil Sands Royalty Guidelines Appendix H - Electronic Transfer System (ETS) - File Naming Conventions. www.energy.alberta.ca/OilSands/pdfs/Royalty_Guidelines_Appendix.pdf.

 File Naming Convention

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Refer to the Alberta Oil Sands Royalty Guidelines Appendix E – CARE Timeline and Timetable for filing deadlines.http://www.energy.alberta.ca/OilSands/pdfs/Royalty_Guidelines_Appendix.pdf.

Filing Deadlines

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Document Link - ETS Setup Form

Course Link - ETS Account Setup and Preferences

The Electronic Transfer System (ETS) is a secure web application that is used to submit CARE Reporting forms.

The link below goes to Alberta Energy's website for access to ETS:https://ets.energy.gov.ab.ca.

You may already have access to ETS however in order to submit CARE reporting forms, you must have permission to the ETS Correspondence Folder. Only Oil Sands Operators will be given access to the ETS Correspondence folder.

To request access to ETS from Alberta Energy, complete the ETS Setup Form ensuring that the CARE Form box is selected. The document is provided below.

Checkout the course ETS Account Setup and Preferences for more information on how to setup your ETS account.

 Electronic Transfer System (ETS)

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Course Link - ETS Correspondence

Use the Send Form screen located in the Correspondence node in ETS to send CARE Report Forms.

Ensure the correct information is selected from the:

• Form Type list

• Contact list

• Business Associate list

Provide any additional notes required for the submission.

Ensure the CARE Report Form naming conventions are followed when the filename is created.

Click on the More Information to view how to send CARE Report Forms.

Checkout the course ETS Correspondence for more information on the functionality of ETS Correspondence.

More Information (Pages 16 to 29)Submit Forms

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You can use the Request Status screen to review the status of the submitted form and to retrieve information on your correspondence.

 Request Status

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You can use the Request Status screen to retrieve and review the submitted form.

Click on the More Information to view how to use Request Status.

Retrieve Submitted FormsMore Information (Pages 32 to 40)

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• Oil Sands Royalty Guidelines http://www.energy.alberta.ca/OilSands/pdfs/Royalty_Guidelines.pdf

• Oil Sands Royalty Guidelines – Appendices http://www.energy.alberta.ca/OilSands/pdfs/Royalty_Guidelines_Appendix.pdf

• Oil Sands Information Bulletins http://www.energy.alberta.ca/OilSands/806.asp

• Subscription to updates to Information Bulletins http://www.energy.alberta.ca/OurBusiness/1070.asp. (scroll down to Information Letters and Bulletins.)

• CARE Forms and Workbooks http://www.energy.alberta.ca/OilSands/582.asp. (scroll down to Cost Analysis and Reporting Enhancement.)

• CARE Frequently Asked Questions http://www.energy.alberta.ca/OilSands/1740.asp

• CARE Training Presentation (dated September 3, 2009) http://www.energy.alberta.ca/OilSands/pdfs/CAREPresentation.pdf

• Oil Sands Contacts http://www.energy.alberta.ca/OilSands/575.asp

Resources

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In this module you have learned about:

• CARE Information Background

• CARE Key Reasons for Reporting

• CARE Data Requirements

• CARE Workbook Submissions

• Statement of Approval

• Forms and Workbooks

• Amendments

• File Naming Conventions

• Filing Deadlines

• How to submit CARE Reports

• How to retrieve CARE Reports

• CARE Resources

Content Review

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Congratulations!

You have completed the CareOnline Training Course

If you have any comments or questions on this training course, please forward them to the following email address:

OSODmailbox@gov.ab.ca

Conclusion