B.C. NGL Valuation RTP
- IFS Energy & Resources
- IFS Energy & Resources
- Former user (Deleted)
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Overview
History
The NGL and Sulphur Valuation RTP submission was introduced into Petrinex as part of the BC Petrinex Inclusion Project. This project went live for production date October 2018 and the Function Implementation option BC Petrinex Implementation is used to determine this starting date within Qbyte Metrix. This submission is used by the British Columbia government to value the NGL/Sulphur sales related to the production of liquids at each plant or gathering system. The NGL/Sulphur Valuation RTP is triggered by the existence of a PROC activity for an NGL product (C2 through C6, including all Mix, Spec, Iso, Normal variants, and C1MX, CO2MX and LITEMX) or Sulphur allocated to a BC Stream on the SAF/OAF at a Plant or by the existence of a PROC activity for C5-SP at a Gathering System in either British Columbia or Alberta. The sales do not have to occur at the same facility that produced the liquid, however, the sales volumes must be tracked back to the producing facility.
This submission requires the following information.
Production Date
Submitting Facility
Product
Royalty Tax Payer
Sales Volume
Sales Value - Represents the value that the purchaser(s) paid for the product less any crown allowable deductions that the purchaser(s) may have applied, including Transportation. When the Sales Value is negative, it must be reported as zero.
In August 2020, the British Columbia government indicated that it would begin allowing negative Sales Value to be submitted and that it would be retroactive back to when they started using Petrinex. The Function Implementation option Allow Negative Value on NGL Valuation RTP is used to determine if negative Sales Value is to be allowed in NGL/Sulphur Valuation RTP submissions from Qbyte Metrix.
No Sales flag - This flag should be set to Yes only when there is production but no sales. It is used to auto-trigger an NGL/Sulphur Valuation RTP requirement in the following month in case there are sales but no production (which is normally the trigger for the NGL/Sulphur Valuation) in the following month.
As of production date September 2024, the British Columbia government introduced changes to the submission requirements. The Function Implementation option BC Valuation Changes 2024 Implementation is used to determine this starting date within Qbyte Metrix. At a high-level, the new requirements are to provide more transparent reporting of price and allowable pricing deductions associated with product sales instead of just a single total sales value. For production months after these new requirements become live, the Sales Value will no longer be reported and instead the following will be reported in its place.
NOTE: As of August 2024, the BC government has delayed the implementation of the BC Valuation Changes 2024, indicating that they now believe this will not be implemented until 2027.
Gross Sales Price - Represents the price to two decimal places. The price must be reported before any of the allowable, reportable deductions have been applied.
Quality Adjustment - Represents the Quality Adjustment Rate to two decimal places.
This is only allowed on C5 products (MX or SP).
Can be negative, zero, or positive.
This will be added to the Gross Sales Price by Petrinex to calculate a Net Sales Price.
Deduction Type - Represents the Type of deduction. There can be no deductions, one deduction, or multiple deductions on a single valuation record. A single valuation record can have up to one instance of each type of Transportation deduction. However, a single valuation record can have only one type of Fractionation deduction.
Options are:
Transportation - Pipeline
Transportation - Rail
Transportation - Truck
Specific Fractionation Rate
Only valid for MX products.
Weighted Average Fractionation Rate
Only valid for MX products.
Deduction Amount - Represents the Rate associated with the Deduction Type to two decimals.
Can be negative, zero, or positive.
This will be subtracted from the Gross Sales Price by Petrinex to calculate a final Net Sales Price.
When Deduction Type is Weighted Average Fractionation Rate this must not be reported. The rate for a Weighted Average Fractionation Rate will come from the Fractionation Fee Calculation within Petrinex.
Process
The data to be reported on the NGL/Sulphur Valuation RTP submission is generated during the Step processing (Steps 1 - 3) within Qbyte Metrix for both Operated and Partner Operated properties. The generated data can be modified by the user using the NGL Valuation RTP screen. This screen is also used to generate the submission files to be sent to Petrinex and the data reported on the NGL Valuation report in Qbyte Optix.
Related Function Implementation Options
Navigate to the Administration > System Configuration > Function Implementation tab. There are three Function Implementation options that impact the NGL Valuation RTP screen and submission.
BC Petrinex Implementation is the main option that indicates when BC properties began using Petrinex functionality. The NGL Valuation RTP screen will only allow production dates on or after the active Start Date of this option.
This option will have been defaulted to become Active as of 201810, which was the GO-LIVE date of the BC Petrinex Inclusion Project.
Allow Negative Value on NGL Valuation RTP is the option that controls whether the NGL Valuation RTP submissions (prior to the BC Valuation Changes 2024) can contain negative Gross Sales Values or not. This option does not require setting a Start Date as it is assumed to be the same as the BC Petrinex Implementation option because when the BC government implemented the ability to have negative sales value, they made it retroactive back to when BC started to use Petrinex.
When this option is Active = No, any negative Gross Sales Values will be automatically set to zero in the submission file.
When this option is Active = Yes, the actual Gross Sales Values will be submitted, whether they are positive, negative, or zero (negative Gross Sales Values will not be changed to zero in the submission file).
When this option was first added, it was defaulted to Active = No. As of August 2020, the British Columbia government was allowing negative sales to be reported so at that time the client should have changed this option to be Active = Yes.
For production dates after the BC Valuation Changes 2024 Implementation Start Date, this option is ignored as negative sales value is always allowed once the proposed 2024 change become active.
BC Valuation Changes 2024 Implementation (available as of Release 24.2) is the option that indicates when the proposed 2024 changes to BC Petrinex Valuation submissions were implemented within Petrinex.
This option will have been defaulted to become Active as of 202409, which was the GO-LIVE date of the BC Valuation changes proposed for 2024.
NOTE: As of August 2024, the BC government has delayed the implementation of the BC Valuation Changes 2024, indicating that they now believe this will not be implemented until 2027.
As of Release 24.4, this option will be automatically Inactivated and will no longer appear on the System Configuration - Function Implementation tab until more concrete information as to the implementation date is received.
For production dates before this option’s Start Date, the Valuation will simply report Sales Value, which has already been adjusted for various allowable deductions (Quality Adjustment, Transportation, etc.).
For production dates on or after this option’s Start Date, the new Valuation requirements of Price, Quality Adjustment Rate, Transportation Rates, and Fractionation Rate will be available.
Related Security Component
The security component NglValuationRtp - (NGL Valuation RTP) provides the user access to the NGL Valuation RTP screen. Ensure the appropriate Security Roles have the Security Component included.
Navigate to Administration > Security > Role Maintenance.
NGL Valuation RTP
This screen is used to review, update, and submit the NGL valuation data generated during Step processing (Steps 1 - 3) for applicable British Columbia (and Alberta with at least one well from British Columbia) facilities. Data will only be available on this screen for Production Dates greater than or equal to when British Columbia started using Petrinex for regulatory reporting. The Function Implementation option BC Petrinex Implementation is used to determine this starting date. There are significant changes to the NGL Valuation RTP requirements, which come into effect in 2024, that impact the data being generated, viewed, and submitted to Petrinex. The Function Implementation option BC Valuation Changes 2024 Implementation is used to determine the starting date of these requirements.
The screen is accessible from the Import/Export > Petrinex menu or from the Explorer (option NGL Valuation RTP) at the Control Group or Facility level (British Columbia plants/Gas Flow GGS or Alberta plants/Gas Flow GGS that have at least one BC well/tract being processed, based on calculated data processed during Step processing. This means that the menu option will not be enabled for Alberta properties until there is some calculated data that can be used to determine if there are any BC well/tracts being processed.).
The Valuation tab is used to view/update the data generated during Step processing (Steps 1 - 3) and to generate the XML/CSV file for NGL Valuation RTP submissions.
The Overrides tab (prior to Release 24.2 this tab was called Transportation) is used to enter override rates that can be applied to the generated data to replace or supplement the data calculated during Step processing. Override records with non-default values will have their values copied into the next production month during the Month End Close (first Region Close and again with the Corporate Close).
Valuation Tab
This displays the data generated during Step processing (Steps 1 - 3). The data is retrieved by Royalty Payer and can include the Royalty Payer’s data for: all Facilities, a specific Facility, or all facilities within a specific Control Group. Enter a Royalty Payer and other data relevant to the Selection Type and click the Edit button to view the data, make changes, and/or generate the XML/CSV files.
FIELD | DESCRIPTION |
|---|---|
Royalty Payer | This is the Government Code of the Royalty Payer, for the Province selected. This is a type-ahead field that will find the Royalty Payer Government Code by Owner ID, Name, or Government Code. |
Selection Type | Options include:
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Submitting Province | This field is displayed when Selection Type is Facility, and it defaults to the Petrinex code for British Columbia (BC) but is left enabled as there may be Alberta facilities with NGL Valuation data that must be reported to British Columbia. |
Type | This field is displayed when Selection Type is Facility, and it defaults to the Petrinex code for a Gas Plant (GP). NGL Valuation RTP data can be submitted for Gas Plants (GP) and Gas Gathering Systems (GS). |
Code | This field is displayed when Selection Type is Facility. Enter the Petrinex facility code. Note: You can use Advanced Search to help find the record(s) you are interested in. |
Processing Control Group | This field is displayed when Selection Type is Control Group. The Control Group associated with the data is determined based on the Submitting Facility when the data is generated during Step processing. Note: You can use type-ahead to help find the control group. |
Once the Royalty Payer and additional selection criteria has been selected, and the Edit button clicked, all relevant data will be displayed.
Prior to BC Valuation Changes 2024 Implementation date:
FIELD | DESCRIPTION |
|---|---|
Submitting Facility | Submitting Facility Code Represents the facility that produced the NGL/Sulphur volumes.
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Product | Product Code
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Proc Volume | Production Volume
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Sales Volume | Sales Volume
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Gross Sales Value | Gross Sales Value
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Transportation Cost | Transportation Cost
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Active | Indicates whether the record is Active or Inactive.
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Data Source | Indicates whether the data has been manually modified by the user or not.
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No Sales | Indicates whether the Sales Volume is zero or not.
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Override Applied | Indicates whether the data has been modified due to the application of overrides.
This field became available as of Release 24.2 so any existing data would have had this field default to No. This field would not necessarily be correct until the data was created/updated after the installation of Release 24.2. |
Calculated Sales Volume | Sales Volume as per Step processing.
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Calculated Sales Value | Sales Value as per Step processing.
Reminder: This represents the sales value after all applicable pricing deductions have been subtracted. |
Sales Value Net Of Transportation | Sales Value Net of Transportation as per Step processing.
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Production Facility | Production Facility By default, this field will be empty. It is only populated in those rare circumstances when NGL/Sulphur sales cannot be traced back to the producing facility (i.e., sold from inventory for an entity/owner that no longer flows from the original producing facility to the sales facility). In this case, this field will be populated with the facility that sold the product.
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On or after the BC Valuation Changes 2024 Implementation date:
FIELD | DESCRIPTION |
|---|---|
Submitting Facility | Submitting Facility Code Represents the facility that produced the NGL/Sulphur volumes.
|
Product | Product Code
|
Proc Volume | Production Volume
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Sales Volume | Sales Volume
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Gross Price | Gross Price
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Quality Adjustment Rate | Quality Adjustment Rate
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Transportation Pipeline Rate | Transportation Pipeline Rate
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Transportation Rail Rate | Transportation Rail Rate
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Transportation Truck Rate | Transportation Truck Rate
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Fractionation Type | Fractionation Type
Options are:
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Fractionation Rate | Fractionation Rate
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Active | Indicates whether the record is Active or Inactive.
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Data Source | Indicates whether the data has been manually modified by the user or not.
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No Sales | Indicates whether the Sales Volume is zero or not.
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Override Applied | Indicates whether the data has been modified due to the application of overrides.
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Calculated Sales Volume | Sales Volume as per Step processing.
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Calculated Sales Value | Sales Value as per Step processing.
Reminder: This represents the sales value after all applicable pricing deductions have been subtracted. |
Sales Value Net Of Transportation | Sales Value Net of Transportation as per Step processing.
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Calculated Quality Adjustment Value | Quality Adjustment Value as per Step processing.
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Production Facility | Production Facility By default, this field will be empty. It is only populated in those rare circumstances when NGL/Sulphur sales cannot be traced back to the producing facility (i.e., sold from inventory for an entity/owner that no longer flows from the original producing facility to the sales facility). In this case, this field will be populated with the facility that sold the product.
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Submit Button (Generate NGL Valuation RTP Files)
Generate the XML/CSV files that can be submitted to Petrinex and the corresponding data for the NGL Valuation report in Qbyte Optix. Reminder: Only Active records will be included. If there are no Active records, a message will be displayed, and no submission pop-up will appear. If there is at least one Active record, a pop-up will appear for the user to specify the Filename, if applicable, and confirm or cancel submission. The XML/CSV files will be stored in the directory specified in the System Configuration > Directories tab (Directory Type: BC Petrinex Exports) and will also be available on the Output Files tab in the Process Monitor and in the File Repository. The System Configuration option, Disable Editing of Petrinex Output File Names, controls whether the user can modify the Filename from the generated default or not.
On or after the BC Valuation Changes 2024 Implementation date:
There may be one or more of the following warning messages displayed on the submission pop-up. Although the various pricing adjustments and deductions are not mandatory, the government is expecting them to be reported, if they are known by the Royalty Payer, so we will be generating warnings when they are zero.
Output file contains records with zero Gross Price.
Appears when at least one record with No Sales = No found with a zero Gross Price.
Output file contains records with zero Quality Adjustment Rate.
Appears when at least one C5 (MX or SP) product record with No Sales = No found with a zero Quality Adjustment Rate.
Output file contains records with all Transportation Rates set to zero.
Appears when at least one record with No Sales = No found where all Transportation Rates are zero.
Output file contains records with zero Fractionation Rate.
Appears when at least one MX product record with a Fractionation Type of Specific Fractionation Rate and with No Sales = No found with a zero Fractionation Rate.
Apply Overrides Button (prior to Release 24.2 this was called Apply Rates)
For each Valuation record that is Active and has Data Source = Calculated, the matching Overrides row will be retrieved, and the appropriate override values will be applied. Overrides will not be applied on Inactive or manually Adjusted records. This will process all Valuation records retrieved for the selection criteria and will ignore any filtering done within the valuation grid.
Prior to BC Valuation Changes 2024 Implementation date:
When the Valuation record has Sales Volume = 0, set Transportation Cost to 0. When there are no sales, the transportation must be zero.
Otherwise, if the override Transportation Rate <> 0, calculate Transportation Cost = Sales Volume X Transportation Rate, rounded to two decimals.
Set the Override Applied field to Yes.
When the calculated Transportation Cost is too large (maximum size 999999999.99) then the calculated value will be truncated, and a message will be displayed.
On or after the BC Valuation Changes 2024 Implementation date:
Applying override rates after the 2024 Valuation changes is much more complicated than it was since there are more rates that can be overridden, and transportation has been split into three different types. Due to the splitting of transportation into 3 different types the applying of override rates may behave differently the first time overrides are applied for a specific Valuation record versus when overrides are re-applied.
When the Valuation record has Sales Volume = 0, set Quality Adjustment Rate, Transportation Pipeline Rate, Transportation Rail Rate, and Transportation Truck Rate to zero. Set Fractionation Type to blank and Fractionation Rate to zero. When there are no sales, all price adjustments/deductions must be zero.
Otherwise:
Quality Adjustment
When the product is C5 (MX or SP) and the matching override record has Quality Adjustment Rate <> 0, set the Quality Adjustment Rate on the Valuation record to the override Quality Adjustment Rate.
Fractionation
When the product is a MIX product and the matching override record has Fractionation Type not blank, set the Fractionation Type on the Valuation record to the override Fractionation Type.
When the Fractionation Type is Specific Fractionation Rate and the Fractionation Rate <> 0, set the Fractionation Rate on the Valuation record to the override Fractionation Rate.
When the Fractionation Type is Weighted Average Fractionation Rate, set the Fractionation Rate to zero on the Valuation record.
Transportation
When the Valuation record has not had any overrides applied previously (Override Applied = No) then we may need to move any calculated Transportation Pipeline Rate to the appropriate type based on the Default Transportation Type.
When there was no generic Transportation calculated during the Step processing then the applying of override rates becomes very simple and straight forward.
When the matching override record has Transportation Pipeline Rate <> 0, set the Transportation Pipeline Rate on the Valuation record to the override Transportation Pipeline Rate.
When the matching override record has Transportation Rail Rate <> 0, set the Transportation Rail Rate on the Valuation record to the override Transportation Rail Rate.
When the matching override record has Transportation Truck Rate <> 0, set the Transportation Truck Rate on the Valuation record to the override Transportation Truck Rate.
When there was generic Transportation calculated during the Step processing then by default that will have been assumed to be Pipeline transportation and a Transportation Pipeline Rate will have been calculated (Transportation Value / Sales Volume, rounded to two decimals).
When the matching override record has Default Transportation Type = Transportation - Pipeline, then there is no need to move the calculated Transportation Pipeline Rate to another type and we can apply the various transportation rate overrides, if any.
When the override Transportation Pipeline Rate <> 0 and the override Transportation Rail Rate and/or the Transportation Truck Rate <> 0, then the transportation calculated during the Step processing is being split into multiple types of transportation. There is no validation that the sum of all entered transportation overrides equals the original calculated Transportation Pipeline Rate so the user could not only be splitting the transportation into multiple types, but they could also be changing the overall total transportation cost reported. Set the Transportation Pipeline Rate on the Valuation record to the override Transportation Pipeline Rate. When the override Transportation Rail Rate <> 0, set the Transportation Rail Rate on the Valuation record to the override Transportation Rail Rate. When the override Transportation Truck Rate <> 0, set the Transportation Truck Rate on the Valuation record to the override Transportation Truck Rate.
When the override Transportation Pipeline Rate = 0 and the override Transportation Rail Rate and/or the Transportation Truck Rate <> 0, then the transportation calculated during the Step processing is being added to (supplemented). In addition to the calculated Transportation Pipeline Rate which covers all generic transportation, the user has included additional transportation costs by entering non-zero override rates in one or more of the other transportation types. When this occurs a message will be displayed to remind the user that they are supplementing the calculated transportation which may or may not be what they intended. When the override Transportation Rail Rate <> 0, set the Transportation Rail Rate on the Valuation record to the override Transportation Rail Rate. When the override Transportation Truck Rate <> 0, set the Transportation Truck Rate on the Valuation record to the override Transportation Truck Rate.
When the matching override record has Default Transportation Type = Transportation - Rail, then the first step is to move the calculated Transportation Pipeline Rate to the Transportation Rail Rate, setting the Transportation Pipeline Rate to zero, and then we can apply the various transportation rate overrides, if any.
When the override Transportation Rail Rate <> 0 and the override Transportation Pipeline Rate and/or the Transportation Truck Rate <> 0, then the transportation calculated during the Step processing is being split into multiple types of transportation. There is no validation that the sum of all entered transportation overrides equals the original calculated Transportation Pipeline Rate, now being reported as Transportation Rail Rate, so the user could not only be splitting the transportation into multiple types, but they could also be changing the overall total transportation cost reported. Set the Transportation Rail Rate on the Valuation record to the override Transportation Rail Rate. When the override Transportation Pipeline Rate <> 0, set the Transportation Pipeline Rate on the Valuation record to the override Transportation Pipeline Rate. When the override Transportation Truck Rate <> 0, set the Transportation Truck Rate on the Valuation record to the override Transportation Truck Rate.
When the override Transportation Rail Rate = 0 and the override Transportation Pipeline Rate and/or the Transportation Truck Rate <> 0, then the transportation calculated during the Step processing is being added to (supplemented). In addition to the calculated Transportation Pipeline Rate, now being reported as Transportation Rail Rate, which covers all generic transportation, the user has included additional transportation costs by entering non-zero override rates in one or more of the other transportation types. When this occurs a message will be displayed to remind the user that they are supplementing the calculated transportation which may or may not be what they intended. When the override Transportation Pipeline Rate <> 0, set the Transportation Pipeline Rate on the Valuation record to the override Transportation Pipeline Rate. When the override Transportation Truck Rate <> 0, set the Transportation Truck Rate on the Valuation record to the override Transportation Truck Rate.
When the matching override record has Default Transportation Type = Transportation - Truck, then the first step is to move the calculated Transportation Pipeline Rate to the Transportation Truck Rate, setting the Transportation Pipeline Rate to zero, and then we can apply the various transportation rate overrides, if any.
When the override Transportation Truck Rate <> 0 and the override Transportation Pipeline Rate and/or the Transportation Rail Rate <> 0, then the transportation calculated during the Step processing is being split into multiple types of transportation. There is no validation that the sum of all entered transportation overrides equals the original calculated Transportation Pipeline Rate, now being reported as Transportation Truck Rate, so the user could not only be splitting the transportation into multiple types, but they could also be changing the overall total transportation cost reported. Set the Transportation Truck Rate on the Valuation record to the override Transportation Truck Rate. When the override Transportation Pipeline Rate <> 0, set the Transportation Pipeline Rate on the Valuation record to the override Transportation Pipeline Rate. When the override Transportation Rail Rate <> 0, set the Transportation Rail Rate on the Valuation record to the override Transportation Rail Rate.
When the override Transportation Truck Rate = 0 and the override Transportation Pipeline Rate and/or the Transportation Rail Rate <> 0, then the transportation calculated during the Step processing is being added to (supplemented). In addition to the calculated Transportation Pipeline Rate, now being reported as Transportation Truck Rate, which covers all generic transportation, the user has included additional transportation costs by entering non-zero override rates in one or more of the other transportation types. When this occurs a message will be displayed to remind the user that they are supplementing the calculated transportation which may or may not be what they intended. When the override Transportation Pipeline Rate <> 0, set the Transportation Pipeline Rate on the Valuation record to the override Transportation Pipeline Rate. When the override Transportation Rail Rate <> 0, set the Transportation Rail Rate on the Valuation record to the override Transportation Rail Rate.
When the Valuation record has had overrides applied previously (Override Applied = Yes) then we can no longer assume the existing Transportation Pipeline Rate on the Valuation record came from the generic Transportation calculated during the Step processing so we cannot apply the Default Transportation Type. In this case, the applying of override rates becomes very simple and straight forward.
When the matching override record has Transportation Pipeline Rate <> 0, set the Transportation Pipeline Rate on the Valuation record to the override Transportation Pipeline Rate.
When the matching override record has Transportation Rail Rate <> 0, set the Transportation Rail Rate on the Valuation record to the override Transportation Rail Rate.
When the matching override record has Transportation Truck Rate <> 0, set the Transportation Truck Rate on the Valuation record to the override Transportation Truck Rate.
When any of the above overrides were used then set Override Applied to Yes on the Valuation record updated.
View Source Details Button
This allows the user to view the Detail records that were accumulated to generate the Valuation record.
This button is enabled when a single Valuation row is selected.
Prior to BC Valuation Changes 2024 Implementation date:
On or after the BC Valuation Changes 2024 Implementation date:
Set To Calculated Button
This allows the user to reset any amounts that they may have manually updated or applied overrides to, back to what was originally calculated during the Step processing and then apply any currently entered overrides that are applicable.
Reminder: If you want to undo overrides that you had previously applied and get back to data based strictly on Step processing, first make sure that the applicable Overrides record has been cleared back to original default values. This ensures that when you click this button there will be no overrides that need to be applied and the resulting data will be from the Step processing only.
This button is enabled when one or more Valuation row is selected.
Prior to BC Valuation Changes 2024 Implementation date:
This will restore the Sales Volume back to the amount in the Calculated Sales Volume, the Gross Sales Value back to the amount in the Calculated Sales Value, and the Transportation Cost back to the difference between Calculated Sales Value and Sales Value Net Of Transportation.
The Data Source will be set to Calculated and the Override Applied will be set to No. If the Calculated Sales Volume = 0, then the No Sales will be set to Yes, otherwise it will be set to No.
Once that is complete it will look for any matching Overrides record and apply any applicable override as per the logic detailed in the Apply Overrides Button section.
On or after the BC Valuation Changes 2024 Implementation date:
This will restore the Sales Volume back to the amount in the Calculated Sales Volume.
It will re-calculate the Gross Price as (Calculated Sales Value + Calculated Quality Adjustment Value) / Calculated Sales Volume, rounded to two decimals. Reminder: During Step processing Quality Adjustment entered on the Pricing screens will be subtracted from the Sales Value, however the Gross Price must be calculated using the sales value before any adjustments for Quality since we are reporting the Quality Adjustment Rate separately, so we add it back in before calculating the price. Also remember that we only report Quality separate for C5 products (MX/SP) so we will only add the Quality in for those products.
For C5 products (MX/SP) it will re-calculate the Quality Adjustment Rate as (Calculated Quality Adjustment Value / Calculated Sales Volume) X -1.0, rounded to two decimals. Reminder: Since Petrinex will add the reported Quality Adjustment Rate to the Gross Price, unlike Qbyte Metrix which subtracts the Quality Adjustment Value we must reverse the sign, by multiplying by negative one.
It will re-calculate the Transportation Pipeline Rate as (Calculated Sales Value - Sales Value Net Of Transportation) / Calculated Sales Volume, rounded to two decimals.
For MIX products, the Fractionation Type will be set to blank, and the Fractionation Rate will be set to zero.
The Data Source will be set to Calculated and the Override Applied will be set to No. If the Calculated Sales Volume = 0, then the No Sales will be set to Yes, otherwise it will be set to No.
Once that is complete it will look for any matching Overrides record and apply any applicable override as per the logic detailed in the Apply Overrides Button section.
Inactive and Active Buttons
This allows the user to set selected records to be Inactive or Active. Reminder: Inactive records will not be included in the submission created for Petrinex.
These buttons are enabled when one or more Valuation row is selected.
Overrides Tab (prior to Release 24.2 this was called Transportation)
This tab allows the user to override data related to value/price adjustments for the data in the Valuation tab. This override data is entered for a Facility and Product only, not a Royalty Payer, so it will apply to all Royalty Payers within the facility. The override data can be retrieved by all Facilities, a specific Facility, or all facilities within a specific Control Group.
To reduce the effort in maintaining the override data, entered override data will be copied into the next Production Month as part of the Month End Close. However, only those override records with non-default values (the user must have modified the generated override data) will be copied.
This information can also be viewed on the Qbyte Optix report called NGL Valuation Overrides (prior to Release 24.2 this was called NGL Valuation Transportation Rates).
FIELD | DESCRIPTION |
|---|---|
Selection Type | Options include:
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Submitting Province | This field is displayed when Selection Type is Facility, and it defaults to the Petrinex code for British Columbia (BC) but is left enabled as there may be Alberta facilities with NGL Valuation data that must be reported to British Columbia. |
Type | This field is displayed when Selection Type is Facility, and it defaults to the Petrinex code for a Gas Plant (GP). NGL Valuation RTP data can be submitted for Gas Plants (GP) and Gas Gathering Systems (GS). |
Code | This field is displayed when Selection Type is Facility. Enter the Petrinex facility code. |
Processing Control Group | This field is displayed when Selection Type is Control Group. The Control Group associated with the data is determined based on the Submitting Facility when the data is generated during Step processing. |
Enter fields relevant to the Selection Type and click the Edit button to view the override data, make changes, and apply the overrides to the corresponding Valuation records.
Prior to BC Valuation Changes 2024 Implementation date:
FIELD | DESCRIPTION |
|---|---|
Transportation Rate | Entered to override any transportation that may have been calculated as part of the Step processing based on Pricing information. It can also be used for those facilities that are not entering any transportation on the Pricing screens for Step processing. When the override is applied to the Valuation records, the entered Transportation Rate will be multiplied by the Sales Volume (rounded to two decimals) to calculate the Transportation Cost which will then be subtracted from the Gross Sales Value to determine the Sales Value that is submitted to Petrinex.
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Only non-zero Transportation Rates will be applied. A rate of zero indicates not to apply the override. This can make it confusing if you want to reset the Transportation Cost back to what it was before you applied an override, or you want to set the Transportation Cost to zero.
When you have entered and applied an override rate and you want to undo that override and go back to the originally calculated Transportation Cost, you must change the override Transportation Rate to zero and then on the Valuation Tab select the appropriate facility/product record and click the Set To Calculated button.
The Set To Calculated button will also reset the Sales Volume and Gross Sales Value back to the originally calculated amounts so you will lose any manually entered changes to those fields as well as the overridden Transportation Cost.
When you have transportation entered on the Pricing screen(s) and you want to clear the calculated Transportation Cost on the Valuation record, you must change the Transportation Cost directly on the Valuation Tab. You cannot use an override rate of zero to change calculated Transportation Cost to zero.
On or after the BC Valuation Changes 2024 Implementation date:
FIELD | DESCRIPTION |
|---|---|
Quality Adjustment Rate | Entered to override any quality adjustment that may have been calculated as part of the Step processing based on Pricing information. It can also be used for those facilities that are not entering any quality adjustment on the Pricing screens for Step processing. When the override is applied to the Valuation records, the entered Quality Adjustment Rate will replace any previous Quality Adjustment Rate.
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Default Transportation Type | Used to indicate how to report any transportation that may have been calculated as part of the Step processing. Since the Pricing information used in the Step processing just has one generic transportation amount, the user must indicate how that transportation is to be reported. By default, all transportation calculated during the Step processing will be reported as Transportation - Pipeline unless an override is entered. Options are:
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Transportation Pipeline Rate | Entered to override any transportation that may have been calculated as part of the Step processing based on Pricing information. It can also be used for those facilities that are not entering any transportation on the Pricing screens for Step processing. When the override is applied to the Valuation records, the entered Transportation Pipeline Rate will replace any previous Transportation Pipeline Rate.
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Transportation Rail Rate | Entered to override any transportation that may have been calculated as part of the Step processing based on Pricing information. It can also be used for those facilities that are not entering any transportation on the Pricing screens for Step processing. When the override is applied to the Valuation records, the entered Transportation Rail Rate will replace any previous Transportation Rail Rate.
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Transportation Truck Rate | Entered to override any transportation that may have been calculated as part of the Step processing based on Pricing information. It can also be used for those facilities that are not entering any transportation on the Pricing screens for Step processing. When the override is applied to the Valuation records, the entered Transportation Truck Rate will replace any previous Transportation Truck Rate.
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Fractionation Type | Used to indicate the type of Fractionation deduction, if any, that is to be applied.
Options are:
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Fractionation Rate | Entered to specify any fractionation associated with the facility and product.
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Apply Overrides Button (prior to Release 24.2 this was called Apply Rates)
For each Override record, matching Valuation rows will be retrieved that are Active and have Data Source = Calculated, and the appropriate override values will be applied. Overrides will not be applied on Inactive or manually Adjusted records. This will process all Override records retrieved for the selection criteria and will ignore any filtering done within the override grid.
Prior to BC Valuation Changes 2024 Implementation date:
When the matching Valuation record has Sales Volume = 0, set Transportation Cost to zero. When there are no sales, the transportation must be zero.
Otherwise, if the override Transportation Rate <> 0, calculate Transportation Cost = Sales Volume X Transportation Rate, rounded to two decimals.
Set the Override Applied field to Yes.
When the calculated Transportation Cost is too large (maximum size 999999999.99) then the calculated value will be truncated, and a message will be displayed.
On or after the BC Valuation Changes 2024 Implementation date:
Applying override rates after the 2024 Valuation changes is much more complicated than it was since there are more rates that can be overridden, and transportation has been split into three different types. Due to the splitting of transportation into 3 different types the applying of override rates may behave differently the first time overrides are applied for a specific Valuation record versus when overrides are re-applied.
When the matching Valuation record has Sales Volume = 0, set Quality Adjustment Rate, Transportation Pipeline Rate, Transportation Rail Rate, and Transportation Truck Rate to zero. Set Fractionation Type to blank and Fractionation Rate to zero. When there are no sales, all price adjustments/deductions must be zero.
Otherwise:
Quality Adjustment
When the product is C5 (MX or SP) and the Quality Adjustment Rate <> 0, set the Quality Adjustment Rate on the matching Valuation records to the override Quality Adjustment Rate.
Fractionation
When the product is a MIX product and the Fractionation Type is not blank, set the Fractionation Type on the matching Valuation records to the override Fractionation Type.
When the Fractionation Type is Specific Fractionation Rate and the Fractionation Rate <> 0, set the Fractionation Rate on the matching Valuation records to the override Fractionation Rate.
When the Fractionation Type is Weighted Average Fractionation Rate, set the Fractionation Rate to zero on the matching Valuation records.
Transportation
When the matching Valuation record has not had any overrides applied previously (Override Applied = No) then we may need to move any calculated Transportation Pipeline Rate to the appropriate type based on the Default Transportation Type.
When there was no generic Transportation calculated during the Step processing then the applying of override rates becomes very simple and straight forward.
When the Transportation Pipeline Rate <> 0, set the Transportation Pipeline Rate on the matching Valuation records to the override Transportation Pipeline Rate.
When the Transportation Rail Rate <> 0, set the Transportation Rail Rate on the matching Valuation records to the override Transportation Rail Rate.
When the Transportation Truck Rate <> 0, set the Transportation Truck Rate on the matching Valuation records to the override Transportation Truck Rate.
When there was generic Transportation calculated during the Step processing then by default that will have been assumed to be Pipeline transportation and a Transportation Pipeline Rate will have been calculated (Transportation Value / Sales Volume, rounded to two decimals).
When the Default Transportation Type is Transportation - Pipeline, then there is no need to move the calculated Transportation Pipeline Rate to another type and we can apply the various transportation rate overrides, if any.
When the override Transportation Pipeline Rate <> 0 and the override Transportation Rail Rate and/or the Transportation Truck Rate <> 0, then the transportation calculated during the Step processing is being split into multiple types of transportation. There is no validation that the sum of all entered transportation overrides equals the original calculated Transportation Pipeline Rate so the user could not only be splitting the transportation into multiple types, but they could also be changing the overall total transportation cost reported. Set the Transportation Pipeline Rate on the matching Valuation records to the override Transportation Pipeline Rate. When the override Transportation Rail Rate <> 0, set the Transportation Rail Rate on the matching Valuation records to the override Transportation Rail Rate. When the override Transportation Truck Rate <> 0, set the Transportation Truck Rate on the matching Valuation records to the override Transportation Truck Rate.
When the override Transportation Pipeline Rate = 0 and the override Transportation Rail Rate and/or the Transportation Truck Rate <> 0, then the transportation calculated during the Step processing is being added to (supplemented). In addition to the calculated Transportation Pipeline Rate which covers all generic transportation, the user has included additional transportation costs by entering non-zero override rates in one or more of the other transportation types. When this occurs a message will be displayed to remind the user that they are supplementing the calculated transportation which may or may not be what they intended. When the override Transportation Rail Rate <> 0, set the Transportation Rail Rate on the matching Valuation records to the override Transportation Rail Rate. When the override Transportation Truck Rate <> 0, set the Transportation Truck Rate on the matching Valuation records to the override Transportation Truck Rate.
When the Default Transportation Type is Transportation - Rail, then the first step is to move the calculated Transportation Pipeline Rate to the Transportation Rail Rate, setting the Transportation Pipeline Rate to zero, and then we can apply the various transportation rate overrides, if any.
When the override Transportation Rail Rate <> 0 and the override Transportation Pipeline Rate and/or the Transportation Truck Rate <> 0, then the transportation calculated during the Step processing is being split into multiple types of transportation. There is no validation that the sum of all entered transportation overrides equals the original calculated Transportation Pipeline Rate, now being reported as Transportation Rail Rate, so the user could not only be splitting the transportation into multiple types, but they could also be changing the overall total transportation cost reported. Set the Transportation Rail Rate on the matching Valuation records to the override Transportation Rail Rate. When the override Transportation Pipeline Rate <> 0, set the Transportation Pipeline Rate on the matching Valuation records to the override Transportation Pipeline Rate. When the override Transportation Truck Rate <> 0, set the Transportation Truck Rate on the matching Valuation records to the override Transportation Truck Rate.
When the override Transportation Rail Rate = 0 and the override Transportation Pipeline Rate and/or the Transportation Truck Rate <> 0, then the transportation calculated during the Step processing is being added to (supplemented). In addition to the calculated Transportation Pipeline Rate, now being reported as Transportation Rail Rate, which covers all generic transportation, the user has included additional transportation costs by entering non-zero override rates in one or more of the other transportation types. When this occurs a message will be displayed to remind the user that they are supplementing the calculated transportation which may or may not be what they intended. When the override Transportation Pipeline Rate <> 0, set the Transportation Pipeline Rate on the matching Valuation records to the override Transportation Pipeline Rate. When the override Transportation Truck Rate <> 0, set the Transportation Truck Rate on the matching Valuation records to the override Transportation Truck Rate.
When the Default Transportation Type is Transportation - Truck, then the first step is to move the calculated Transportation Pipeline Rate to the Transportation Truck Rate, setting the Transportation Pipeline Rate to zero, and then we can apply the various transportation rate overrides, if any.
When the override Transportation Truck Rate <> 0 and the override Transportation Pipeline Rate and/or the Transportation Rail Rate <> 0, then the transportation calculated during the Step processing is being split into multiple types of transportation. There is no validation that the sum of all entered transportation overrides equals the original calculated Transportation Pipeline Rate, now being reported as Transportation Truck Rate, so the user could not only be splitting the transportation into multiple types, but they could also be changing the overall total transportation cost reported. Set the Transportation Truck Rate on the matching Valuation records to the override Transportation Truck Rate. When the override Transportation Pipeline Rate <> 0, set the Transportation Pipeline Rate on the matching Valuation records to the override Transportation Pipeline Rate. When the override Transportation Rail Rate <> 0, set the Transportation Rail Rate on the matching Valuation records to the override Transportation Rail Rate.
When the override Transportation Truck Rate = 0 and the override Transportation Pipeline Rate and/or the Transportation Rail Rate <> 0, then the transportation calculated during the Step processing is being added to (supplemented). In addition to the calculated Transportation Pipeline Rate, now being reported as Transportation Truck Rate, which covers all generic transportation, the user has included additional transportation costs by entering non-zero override rates in one or more of the other transportation types. When this occurs a message will be displayed to remind the user that they are supplementing the calculated transportation which may or may not be what they intended. When the override Transportation Pipeline Rate <> 0, set the Transportation Pipeline Rate on the matching Valuation records to the override Transportation Pipeline Rate. When the override Transportation Rail Rate <> 0, set the Transportation Rail Rate on the matching Valuation records to the override Transportation Rail Rate.
When the matching Valuation record has had overrides applied previously (Override Applied = Yes) then we can no longer assume the existing Transportation Pipeline Rate on the Valuation record came from the generic Transportation calculated during the Step processing so we cannot apply the Default Transportation Type. In this case, the applying of override rates becomes very simple and straight forward.
When the Transportation Pipeline Rate <> 0, set the Transportation Pipeline Rate on the matching Valuation records to the override Transportation Pipeline Rate.
When the Transportation Rail Rate <> 0, set the Transportation Rail Rate on the matching Valuation records to the override Transportation Rail Rate.
When the Transportation Truck Rate <> 0, set the Transportation Truck Rate on the matching Valuation records to the override Transportation Truck Rate.
When any of the above overrides were used then set Override Applied to Yes on all Valuation records updated.
Determining Royalty Tax Payer
Back to BC Petrinex Inclusion Project Overview Back to Owner Maintenance
During Step processing (Steps 1 - 3) when the NGL Valuation RTP data is being generated, Qbyte Metrix will determine the Royalty Tax Payer for each generated record. In general, entered RTP Owners at the well (Note: British Columbia does not allow unitization for gas and by-products) will take precedence. The following is a more detailed description of the rules applied to determine the Royalty Tax Payer for a specific entity/owner:
Check if the owner has a BC Reporting/RTP Override owner associated with it (on the Owner Maintenance). If there is an owner, then they will become the Royalty Tax Payer.
If no BC Reporting/RTP Override found for the Owner, then look for any Royalty Tax Payer data (RTP Owners for GAS) at the well/unit:
If there are any Royalty Tax Payers set up for the well/unit, then look for the RTP Owner of the owner.
If the owner does not have an RTP Owner, then we will assume that owner is their own Royalty Tax Payer. A message will be generated in the Message Centre indicating that we could not find a Royalty Tax Payer.
Note: This can occur if an owner is selling out of inventory and they are no longer in the DOI, or it can also happen for Royalty Taken-In-Kind owners who are not also an owner in the entity.
Otherwise, we use the Royalty Tax Payer specified.
If there are no Royalty Tax Payers for the well, the default process to determine the Royalty Tax Payer will be used.
If the owner is Taken-In-Kind, based on the Exclude Owner flag on the DOI, we assume that the owner is their own Royalty Tax Payer.
Note: We use the Gas Sales DOI or default DOI if no Gas Sales DOI Exception when determining the Exclude Owner flag.
Otherwise, we look for the British Columbia Petrinex Operator for the current Region.
If there is a single Petrinex Operator for British Columbia, then that becomes the Royalty Tax Payer.
if there are no Petrinex Operators for British Columbia or there are more than one, then the Master Owner for the Region becomes the Royalty Tax Payer.
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