ERC calculator petroleum and gas - Module 4 transcript

Watch the video Petroleum and gas ERC calculator training – Module 4 – Sheets and domains to learn about the sheets at a high level.

Welcome back to the training for the 2022 edition of the estimated rehabilitation cost calculator for petroleum and gas. This is Module 4. In this module we will go into a bit more detail about the Summary, Main, and user input sheets.

In addition to the Main sheet, there are 11 user input sheets that allow user input for each of the domains, as well as several other sheets summarising information, listing default values, or simply for reference or lookup. The user input sheets comprise of rolled-up rates, also referred to as default rates, in single line, or user defined input tables that build up the activity to calculate the total cost of the element.

Most of the user input sheets are filled out from left to right, and only information relevant to a particular element needs to be entered. Process Facilities, Water Facilities and LNG Facility User Build sheets are filled out from top to bottom for each facility. Where defaults are listed and no information is entered by the user, the default value will be used in the calculation.

The structure of each input sheet is similar, with header rows providing the domain name, a hyperlink back to the contents, and the total cost for the individual sheet and the total ERC amount for the site. Each table then has its own header containing the field headings. We will go through these sheets in more detail in later modules, but for further information on the purpose of each sheet, please refer to the user guide.

The totals from the input sheets are then fed into the Main sheet. Each section in the Main sheet has a row for the total from the user input sheet if applicable. This is then added to any other items that are added directly into the Main sheet to give a subtotal for that section. Each of these section subtotals then flows through to the Summary sheet. The total for each section is shown and totalled at the bottom to produce a pre-multiplier cost. The multipliers are then added to give the overall ERC amount. The last value in the Summary sheet is the difference between the current ERC value initially entered into the Registration sheet, and the total with multipliers calculated above.

The first multiplier is the project management multiplier which is calculated at 10% of the total ERC amount. Generally, this covers the cost to government to project manage, schedule, and oversee the required rehabilitation works. The user can specify their own project management multiplier, and if so, must provide justification in the space provided and attach the relevant quotes to their ERC application.

The environmental maintenance and monitoring multiplier is calculated at 5% of the total ERC amount. This covers post-closure activities like minor repairs, revegetation, weed management, and fence and signage repairs. It also covers a wide range of post-closure monitoring activities including inspections, assessments, surveys and reporting. Again, the user can specify their own environmental maintenance and monitoring multiplier, and if so, must provide justification in the space provided and attach the relevant quotes to their ERC application. The calculator also applies a contingency of 10% to account for general uncertainties in the cost of estimation and recognises that assumptions are being made for the default rates.

The Waste Levy is a new addition in the 2022 version of the calculator and is designed to account for specific types of waste that go to landfill in Queensland. This levy only applies if your activity falls within one of the specified areas. For the ERC, concrete, bitumen, asbestos (free and within soil), solid salt, and contaminated soil are the primary wastes to which the levy may apply. Steel, copper, and other materials are not considered a waste as they have value as scrap. Consistent with the policy decision on scrap, scrap value is not offset. The calculator does not charge a gate fee or levy against these materials, but does allow for transport to a facility.

Revegetation is primarily broken into two categories, with a third option for certain circumstances. These are pasture, native, and arid. The default rates throughout the calculator generally include the cost of seeding so the user is not required to enter additional revegetation costs elsewhere. If seeding is not included it is specifically stated in the rates scope. The General Land Rehabilitation sheet includes additional rows to cover revegetation of land not covered by the other sheets. Such occurrences are likely rare and may include land where preliminary work, e.g. clearing for an activity was undertaken but the activity did not go ahead.

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 4 – sheets and domains.