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What is the Enhanced Production Audit Program (EPAP)?
EPAP is a program that helps companies improve their measurement and reporting processes, in order to meet AER requirements in Alberta and MER in Saskatchewan.
Meeting AER & MER requirements are mandatory and beneficial to your entire organization.
With an excellent understanding of EPAP and related business requirements, Intricate is designed to assist and fully support operations in meeting EPAP Directive regulations.
EPAP Program Basics & Applicability
EPAP isn’t exactly a new requirement. In 2010, AER released Directive 076 – Operator Declaration Regarding Measurement and Reporting Requirements. This established specific requirements and controls that will help operators keep their reporting and measuring in line with what AER requires.
However, implementing EPAP may be new to your company. Only operators subject to AER measurement and reporting requirements, who are reporting to Petrinex, are affected by Directive 076. This pertains to conventional oil, heavy oil, crude bitumen, and natural gas facilities. It does not apply to mineable oil sands. If your company is new, has not implemented EPAP yet, or has recently entered one of the sectors mentioned above, you should keep reading.
The Purpose of EPAP & Preparing for Declaration
EPAP’s primary purpose is to decrease AER’s dependence on substantive audits and put the trust in your Operator Declaration. I think we can all agree – Fewer audits means more time spent doing productive work!
Making your Declaration isn’t as easy as just shouting “I Declare Compliance!” – But, when done right and maintained over time, it’s going to add significant value to your company’s measurement program.
The EPAP Operator’s Handbook helps explain the process in greater detail but according to AER’s EPAP summary, EPAP requires the following steps:
Before your first declaration:
- Ensure that you understand the EPAP requirements and communicate them to senior management.
- Decide what month to make your declaration period. (You can decide within the first year.)
- Act on the compliance assessment reports when you start receiving them.
- Determine which risks of noncompliance apply to which of your facilities.
- Understand the controls.
- Identify existing or design new controls to address the risk of noncompliance.
- Develop and test your control procedures and evaluate them.
- Ensure that you have documentation for your business processes, your control processes, and your evaluation of control processes.”
The steps leading up to your first declaration are the most beneficial as it brings the key stakeholders of your company together. The work completed leading up to your first declaration lays the foundation for your organization’s EPAP program. This helps to ensure the EPAP becomes an integral part of your company’s operations.
Annual EPAP Reviews
EPAP becomes an integral part of your business after your first declaration. If you keep up on the EPAP maintenance below, as advised by AER’s EPAP summary, your annual declaration will continue to add value to your company and increase the accuracy of your measurement program.
Annually after your first declaration:
- Act on your monthly compliance assessment report.
- Prepare an annual evaluation of controls plan and review it with senior management.
- Review and confirm the applicability of risks of noncompliance to the facilities.
- Review your control designs.
- Evaluate your controls.
- Submit your declaration. We recommend discussing areas of improvement with your senior management.
- Review and update your documentation as necessary.
One thing that is often missed when developing an Enhanced Production Audit Program is to implement an effective remediation plan addressing the highest risks to your company.
By identifying these risks and having proper workflow around how to address them, your EPAP becomes a more integral part of your measurement program.
Enhanced Production Audit Program (EPAP) by Intricate
There are many ways in which EPAP can be conducted, and Intricate will help you choose the right approach for your company.
Intricate’s Measurement and Regulatory Services division offers custom EPAP implementation services and are industry leaders in the field. Reach out to us for a quote! We can make EPAP implementation easy for you so that you can concentrate on what your company does best!
To contact Intricate Group, please visit our website or reach us through sales@intricategroup.com or 1-587-760-1616.
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