Step 1 - The Operator, Producer, or Transporter typically uses a wide variety of commercially available Supervisory Control And Data Acquisition (SCADA) systems to automate the monitoring and control of a wide variety of Electronic Flow Meters (EFM) for production measurement at a producing well or at a production sales facility. A wide variety of production data information is collected using such technology located remotely in the field. The SCADA systems acquire raw data from the EFM by radio telemetry using non-standardized and standardized data exchange format(s) and then stores production data in SCADA supporting databases. This data is subsequently selected and edited by industry production reporting systems or personnel prior to submitting production data reports to the Mineral Management Service (MMS) and State government agencies as required by regulation. This step is a field production data acquisition process; data editing process when necessary; and subsequent submission of production reporting data to regulatory agencies, respectively.

 

Step 2 - During BLM’s production validation process, BLM I&E personnel use MMS production data report information as an initial validation record baseline. When necessary, BLM may then issue a formal request for specific production data to an Operator or Producer for a federal lease or production agreement for a specified timeframe. A formal production data request may encompass from one to hundreds of wells and a span from one month to six years. Requests for data are by federal case number and are typically based on FOGRMA requirements including but not limited to well volume produced, compliance history, special request, and/or random sampling basis. This step is mandated by FOGRMA and currently is a significant workload challenge for BLM to ensure Federal production accountability.

 

Step 3 - The Operator then conducts two actions simultaneously. The Operator compiles paper records from their electronic SCADA and other systems covering the period in question. The Operator also requests attendant records for the same timeframe from the Producer or Transporter. As an example, one large case involving many wells can require the compilation of thousands of pages of information. Operator personnel then collate all of the information, ensure that each page is labeled with the appropriate BLM identifier (case number, lease identifier, or API number), and ship the pages to the appropriate BLM office. This step is a very labor intensive, time-consuming, and costly operation to industry.

 

Step 4 - Once the paperwork reaches the BLM office, I&E personnel (PATs and PETs) perform an initial review of the hard copy documentation to ensure completeness as compared to the original request. PETs and PATs then conduct a detailed review of each document, looking for errors, inconsistencies, and violations of measurement standards. It is often necessary to then issue additional letters requesting more information to complete the data set and/or have PETs perform a field inspection of the related well(s). More often than not the evaluated well data returns production validation results that appear to be in agreement with the data submitted to MMS (OGOR) with the conclusion that the production appears to be properly measured and accounted for. The amount of time required to conduct a field inspection varies depending on the well’s physical location and complexity of well and production facility infrastructure. Under current procedures, the PETs and PATs perform manual calculations using custom techniques and tools such as spreadsheets and/or pen and paper. As with Step 3 this function is a labor intensive, time-consuming, prone to error, and costly operation to the government and industry.

 

Step 5 - The results of the inspection are then compiled and discussed with the Operator. Should the Operator be unable to provide required, additional support documentation, BLM will notify the Operator and MMS of the corrected volumes and quality.Incidents of Non-Compliance (INC) and subsequent enforcement actions may also be performed. Otherwise, the Operator provides additional supporting documentation and the process repeats from the detailed review and analysis performed by the PETs and PATs. As above, another time consuming and costly operation to both the government and industry.