Office of Natural Resources Revenue (ONRR)

Office of Natural Resources Revenue (ONRR)

U.S. Department of Interior

ONRR System Upgrades and Reporting Changes

Robert F. PraelProgram Manager,

Financial Management

Industry Compliance Accurate Revenues & Data Professionalism & Integrity

Roman GeisselDeputy Program Director,

Audit and Compliance Management

Office of Natural Resources Revenue (ONRR)

Office of Natural Resources Revenue (ONRR)

U.S. Department of Interior

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Presentation Outlineo System Upgrades

• Interest• Online rent• CMP-2014• Form ONRR-4444• Access Management

o Reporting Changes• New product codes• Debt Collection

Office of Natural Resources Revenue (ONRR)One lease, one royalty report received 02/15/2014

$300 paid 02/28/2014

Sales Month 08/2011 $1,200 Due 09/30/11

Sales Month 09/2011 -$900 Due 10/31/11

Sales Month 09/2012 -$2,000 Due 10/31/12

Sales Month 09/2013 $2,000 Due 10/31/13

Interest

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Office of Natural Resources Revenue (ONRR)

Office of Natural Resources Revenue (ONRR)

U.S. Department of Interior

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Interest – Federal ExampleCurrent Interest Calculation Process

New Interest Calculation Process

Amount Upon Which Interest is Due

Amount Upon Which Interest is Paid

Time Period Over Which Interest is Paid or Due

$1,200 Sept 30, 2011 to Oct 31, 2011

Net $300 Oct 31, 2011 to Oct 31, 2012

Net $1,700 Oct 31, 2012 to Oct 31, 2013

Net $300 Oct 31, 2013 to Feb 28, 2014

Office of Natural Resources Revenue (ONRR)

Office of Natural Resources Revenue (ONRR)

U.S. Department of Interior

5

Interest – Indian ExampleCurrent Interest Calculation Process

New Interest Calculation Process

Amount Upon Which Interest is Due

Amount Upon Which Interest is Paid (1% less)

Time Period Upon Which Interest is Due or Paid

$1,200 Sept 30, 2011 to Feb 28, 2014

$0 (not $900) Since Indian, no interest paid

$0 (not $2,000) Since Indian, no interest paid

$2,000 Oct 31, 2013 to Feb 28, 2014

Amount Upon Which Interest is Due

Amount Upon Which Interest is Paid

Time Period Over Which Interest is Paid or Due

$1,200 Sept 30, 2011 to Oct 31, 2011

Net $300 Oct 31, 2011 to Oct 31, 2012

$0 (not net $1,700) Since Indian, no interest paid

Net $300 Oct 31, 2013 to Feb 28, 2014

Office of Natural Resources Revenue (ONRR)o Most Federal lessees/payors currently pay annual lease rentals to

ONRR by paper checks with some rentals reported on Form ONRR-2014 and some reported via courtesy notices issued by ONRR

o Starting in January 2015, the Ecommerce website allows lessees/payors to pay annual lease rentals on-line

o The website shows the leases for which the lessee is responsible and:• Lease acreage• Rental rate• Payment status

o Payments made through Pay.gov• Electronic confirmation

o Everything will post in MRMSS• No more misapplied checks• No more incorrect termination ONRR is considering eliminating Courtesy Notices in the near future

Online Rent

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Office of Natural Resources Revenue (ONRR)o Starting in October 2014, the Ecommerce website

http://onrrreporting.onrr.gov provides two options to report:• Regular Form ONRR-2014• Compliance Form ONRR-2014 (CMP-2014)

o Payors must report all compliance-related royalties using the CMP-2014

o Compliance adjustment reason codes (such as ARC 17) are no longer allowed on the regular Form ONRR-2014

o Eliminates the manual OTH billing process for compliance activities

o Interest on CMP-2014s is separate from regular Form ONRR-2014s, allowing ONRR to track interest bills associated with compliance activities

CMP-2014

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Office of Natural Resources Revenue (ONRR)

Office of Natural Resources Revenue (ONRR)

U.S. Department of Interior

8

Access Management and Form 4444

Form ONRR-4444o Addressee of Record Designation for Service of Official Correspondenceo Industry able to view and update company address and contactso Ties to EITI

Access Managemento Industry controlled access managemento Industry initiated password reseto Communication will be coming soon to companies requesting an Industry

Representativeo Person(s) responsible for managing company accesso New eMARF process

Office of Natural Resources Revenue (ONRR)

Office of Natural Resources Revenue (ONRR)

U.S. Department of Interior

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Reporting Changes

New Indian Product Codeso 61 (Sweet)o 62 (Sour)o 63 (Asphaltic)o 64 (Black wax)o 65 (Yellow wax)

Office of Natural Resources Revenue (ONRR)

Office of Natural Resources Revenue (ONRR)

U.S. Department of Interior

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Reporting Changes

Debt Collectiono Automatedo 120 versus 180 days

Office of Natural Resources Revenue (ONRR)

Office of Natural Resources Revenue (ONRR)

U.S. Department of Interior

Contacts:

Robert Prael303-231-3217

Robert.Prael@ONRR.gov

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Industry Compliance Accurate Revenues & Data Professionalism & Integrity

Roman Geissel303-231-3226

Roman.Geissel@ONRR.gov