Ensuring Accuracy and Maximizing Incentives
As an industry leader in regulatory compliance with a history of delivering premium products ONRR can trust, our clients benefit from expedited processing of corrections and more efficient audits.
If you have been recently engaged in a regulatory audit, or received an unfavorable audit determination, we have the people, the processes, and the experience to help you successfully navigate the complexities of regulatory compliance. We work with clients to really understand their regulatory accounting processes, challenges and limitations. Once we have a complete picture, we develop and execute on a plan to identify systemic errors in existing processes, quantify potential risk exposure, communicate with the regulatory agency conducting the audit, and begin developing specific solutions to meet your needs.
Our ONRR & State Audit Defense & Support services include:
- Responding to Data Mining inquiries or Preliminary Determinations
- Transportation and processing allowance calculations
- Unbundling Cost Allocations (UCAs)
- Designing processes to minimize liabilities and maximize legal deductions
- Review and challenge audit determinations
- Develop asset-specific valuation models that align with the latest ONRR and State guidelines
- Process corrections for properties, and periods, impacted by systemic errors uncovered in the audit
A Challenging Environment
Calculating and reporting royalties for production on federal lands continues to present unique challenges for the oil and gas industry. Many producers struggle with incorporating rules and guidelines set forth by the ONRR, disseminating frequent changes in those rules, and vague interpretations from ONRR. Oftentimes companies are unaware issues exist within their regulatory reporting, and do not employ personnel with the skillsets to identify specific systemic errors and or deficiencies.
Just like many E&P Companies, Regulatory Agencies are facing many of the same challenges:
- Shrinking Budgets
- Complex Regulatory Framework
- Attracting and retaining qualified talent
- Poor communication and collaboration between departments
- Gaps in employee training
Implications for Producers
As a result of these challenges, regulatory agencies charged with ensuring compliance often issue inaccurate and/or erroneous audit determinations.
These issues, coupled with the cyclical nature of the industry creates a perfect storm for:
- Systemic accounting errors
- Increased Regulatory audits
- Erroneous audit determinations and interest assessments
- Inaccurate royalty payables
- Wasting valuable time unnecessarily defending against audit findings or processing corrections
How Corvus Can Help
Our team understands the oil and gas business and how to leverage your existing processes to efficiently produce the most accurate results for your specific situation. We have recovered or saved more than $40 million for our clients, paying for ourselves many times over.
We help our clients:
- Ensure accuracy of findings
- Review and challenge audit determinations/findings
- Eliminate erroneous interest assessments
- Maximize all available incentives and deductions while minimizing the burden of compliance