ERC calculator petroleum and gas - Module 3 transcript

Watch the video Petroleum and gas ERC calculator training – Module 3 – General use concepts to learn important general use concepts for the calculator.

Welcome back to the training for the 2022 edition of the estimated rehabilitation cost calculator for petroleum and gas. This is Module 3. This module will go over some general use concepts which are important to understand when using the calculator.

There are various ways quantities can be added into the calculator, however quantities for a specific item only need to be added in to one place. Most users will likely only use the Main sheet for quantity entry. The user input sheets are primarily used to tally area-based quantities. This achieves two primary purposes, the first that entries should better align with other spatial data, and the second is that the user and department can more readily view the disturbances.

Each user input sheet reports quantities and costs a little differently. The General Land Rehabilitation sheet sums the total quantity for each disturbance type, for example total area of existing disturbance requiring minor rehabilitation, or total number of water supply bores requiring plugging. The total quantities for each column in the input sheet are automatically reported against the appropriate line item in the Main sheet. For this sheet, only the quantities are displayed. The quantity totals are automatically reported to the Main sheet and displayed in the input sheet column against the appropriate line item, where the cost is then calculated. Any additional quantities added directly to the Main sheet are added, and the total cost calculated for each line item.

The Investigation Contamination sheet works similarly to the General Land Rehabilitation sheet, summing the total quantity for each disturbance type and reporting that to Main. For example, the total mass of asbestos in soil from the Investigation Contamination sheet is reported to the input sheet column against the asbestos in soil line item in the Main sheet.

The sheets Seismic and Infrastructure, Process Facilities, Process Facilities User Build, and Water Facilities User Build all report the total cost for each sub-category for that sheet to the relevant line item in Main. For example, in the Process Facilities input sheet the total cost for unconventional gas, conventional gas, oil storage, LPG, water treatment plants, and water transfer stations are calculated in the sheet and then reported separately to the corresponding row in the Main sheet.

The sheets Wells, Pipelines, LNG Facilities User Build, and Water Storage report the total cost for all the disturbances in the sheet to the relevant line item in Main. For example the total cost of the wells entered to the Wells input sheet is reported to Wells input sheet row in Main. The sheets Process Facilities, LNG Facilities, and Water Facilities User Build tables allow the users the flexibility to change specific aspects of the calculation to ultimately create a cost specific to that item.

As explained earlier, there are several places where items can be entered, but each item only needs to be entered once. For example, if you add a specific pond to the Main sheet, you do not then need to add it the Water Storage input sheet.

The default rates included in the calculator generally include all activities reasonably anticipated to be required for a particular activity. Specifically, decommissioning, demolition, removal, disposal and storage, rehabilitation of land ('grade and seed'), are included unless otherwise stated.

While a lot of the calculator's functionality is locked to prevent changes being made to the format or layout, the standard Freeze Pane function is accessible so the user is able to freeze or unfreeze columns and rows to assist with viewing and use.

The calculator is colour coded to visually assist the user in identifying which cells are for user entered data and which cells are for reference, calculation, error, etc. The key to the colour code is in the contents tab of the calculator and displayed here. Of note, the green and yellow cells are the only cells that will allow user entry.

Much of the data entry in the calculator is for inputting quantities of different units. The unit of the quantity the user is required to enter can either be found in the next column on the same row, or in the title of the field. It is important to check the unit you are required to enter to avoid any miscalculations.

Default rates are all listed as numbered cost rates in the Main sheet. Where applicable these rates are also used in the user input sheets, but in most cases the land rehabilitation rate is separate from all the activities such as demolition. This is to allow the area-based component of the disturbance to be separate to improve consistency with other spatial data. The user can enter an alternate rate with justification for the default rates in the Main sheet and the LNG Facility User Build sheet. Subrates are shown in the Subrates sheet and are used in building default rates, and some are used in the user input sheets. The user cannot enter alternate rates for Subrates unless they are also default rates.

Default values, or assumptions, are used throughout the calculator to calculate costs. These, as opposed to the default rates, are things like thickness of material, distance to travel, etc. In some cases the user can over-ride these where they are used in the input sheets. The user simply enters a quantity where a default is present and the calculator will use the user entry instead of the default. The defaults are summarised in the Assumptions sheet.

As mentioned earlier, the user can enter alternate rates for the default rates in the Main sheet. These are entered in column K and justification or rational for the alternate rate must be provided in column N. When entered, the cell will turn red to alert the department that an alternate rate has been used. The calculator will then use this user entered rate to calculate costs. Where third-party quotes are used, they must comply with the ERC guideline requirements. The only exception is the LNG Plant User Build sheet where alternate rates and justifications are required to be entered to that sheet.

The calculator includes numerous areas that allow the user to add comments. These are important in justifying to the department why you have chosen certain values, or why alternate rates have been entered. The Main sheet allows for user comment and justification of alternate rates. In the Summary sheet, the user must explain why an alternate project management or maintenance and monitoring rate was used if entered. The LNG Processing Facilities User Build sheet allows for justification of alternate rates. In the Registration sheet, the user must explain why the waste levy does not apply to the site if this is selected. In the Information sheet the user can enter notes applicable to individual input sheets in the spaces provided.

Any comments or justification added needs to be useful, succinct information that will assist the department in its review. When entering comments it is good practice to add blank rows at the beginning and end of text to ensure the text is properly displayed. To add a blank line, use the Alt + Enter key on your keyboard while editing the cell.

The calculator uses hyperlinks throughout the workbook to allow for easy navigation between sheets. The Contents page which we looked at earlier is a great place to start. As mentioned, all sheets have a hyperlink back to the Contents page at the top of the sheet.

To search for something in the calculator, simply use Excel’s search function (Ctrl + F) to find specific words. Some field headings throughout the calculator have addition pop up text that displays when the cell is clicked on. This is to help the user better understand what is required to be entered into that field. These cells are identified with an asterisk. Drop-down menus feature throughout the calculator and are a quick easy way of selecting options.

Each input sheet includes a column on the left-hand side of the table for each activity to allow the entry of a map ID. Where spatial data is provided, the map ID should align with the spatial data for the relevant line item in the calculator. Multiple map IDs can be entered, separated by commas, if there is more than one identifying code or number for a particular item.

Most user input tables allow space for additional user entered items that fit within the category of the table, but are not otherwise included in the calculator. The user must enter the quantity, the units and the rate for the user entered item.

As always, for more information or specific instructions, please consult the user guide which is also available on the Business Queensland website, below the download for the calculator. See you in the next module.

Watch the video: Module 3 – General use concepts.