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Electronic Permitting Initiative Update

Electronic Permitting Initiative Update. Alan Doniger, Energistics CTO 2 nd Annual Standards Summit & Reception 6 November 2007 Houston, Texas. Background. 2003-2004. Electronic Permitting Business Case.

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Electronic Permitting Initiative Update

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  1. Electronic Permitting Initiative Update Alan Doniger, Energistics CTO 2nd Annual Standards Summit & Reception 6 November 2007 Houston, Texas

  2. Background • 2003-2004. Electronic Permitting Business Case. • In collaboration with U.S. federal and state agencies, Ground Water Protection Council (GWPC), and REGS User Group (PIDX). • 2005. WITSML-based Electronic Permitting Standards. • Intended for first deployment in California

  3. Background (continued) • 2006. Standards Review and Revision by GWPC States • Candidates for early deployment: Colorado, Alaska, Alabama, and Kentucky • Middle of 2007. U.S. Department of Energy Withdraws GWPC Funding • Substantial shared agency software exists, but • More was intended to be developed with this funding

  4. Background (continued) • Q3 of 2007. Energistics’ Industry Deployment Initiative • First State: Colorado • Business Case Developed by Pioneer Natural Resources • Work Group within the Energistics eRegulatory SIG • Collaboration • Shared Costs and Risks • Close cooperation with agency and GWPC • GWPC software licensed to Energistics for use by operators

  5. Current Timeline • October 2007. Colorado Oil & Gas Association (COGA) Meeting • Introduction to the electronic permitting deployment opportunity • By January 2008. Assess Viability to Conduct Deployment in ’08 • Present initial Business Case for refinement by other operators • Define integrated timelines for deployment: operators and agency • Milestone: GWPC meeting in January in New Orleans

  6. Current Timeline • In 2008. Carry out Industry Deployment Work Group Initiative • Early testing with Colorado agency • Feedback on Standards flow through Energistics issue tracking and version management processes • Operators access to and ability to adapt GWPC software through Energistics licensing.

  7. Business Case Highlights • Business Problem • Colorado projects approving over 6,000 drilling permits in ’07 • An increase of 4% over ’06 • Requires a lot of manual data checking and many iterations between agency and operators • Pioneer NR is drilling over 200 wells per year in Colorado • Permitting can take 30 to 60 days after all paperwork submitted • Much data entry required • No easy way to verify accuracy – performed by agency staff manually • Agency web site is helpful to obtain status • Greater efficiency through electronic permitting and mutual use of validation automation would benefits agency and operators • Leverage by using solution in other states • Leverage by using solution for federal agencies

  8. Business Case Highlights • Recommendation: Energistics’ WITSML-based Electronic Permitting Data Exchange Standards • Software validation of permit application content • Pre-validation by operators • Confirming validation by agency • Automated notification of status and problems • Improved visibility and tracking during agency processing • Ability to submit changes online • Operators can receive and print secure permits • Extend electronic permitting for use in other states

  9. Business Case Highlights • Benefits for Operators • Improved capacity to find and manage reserves • Improved ability to plan and manage assets • Improved productivity of staff members • Improved cost of technology ownership • Quantification of Operator Benefits • Minimum savings of 3 to 5 days on permit cycle time • Additional savings of 3 to 5 days where data is missing, incomplete or in error • For each 100 wells, the minimum benefit would be revenue acceleration of about $225 thousand per year • Justifying investment in enabling technology • Especially if this is shared technology and standards based

  10. Call to Action • Oil and gas companies involved with applications for drilling permits are invited to contact Energistics for more information. • Especially those active in Colorado, Alaska, Alabama, and Kentucky or other U.S. states with agencies associated with GWPC • 2008. Standards-based Electronic Permitting: A “Win Win” for industry and U.S. state agencies • Opportunity to compare this work to other similar efforts • e.g., at NDR8 Conference in S. Africa in February • Opportunities for shared learning • Opportunities to define and achieve global best practices

  11. Thank You Contact: Alan Doniger, Energistics CTO +1 713 267 5124 Alan.Doniger@Energistics.org

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