Oil and gas operators face the everyday challenge of meeting standards set by various governing agencies at both the state and federal level, as well as dealing with additional requirements for operations on tribal lands. These regulations are put in place to ensure safety, organization, and the following of best practices. But with everything else going on in your business, it is too easy to let compliance sit on the back burner until it is too late.
So, what makes these regulations so crucial to your operation, and how can you ensure that every rule and law is followed to a T? Keep reading to get the answers to these questions and more.
Why is Regulatory Compliance Important?
Simply put — it’s the law. Failing to follow the regulations (state, federal, and/or tribal) will lead to headaches down the road that could lead to much more than just time lost.
These regulations and laws are put in place to ensure that operators respect the land and resources around them. This prevents negative impacts on the environment and public health. Regulatory reports capture information on your production, emissions, and any hazards such as spills. This also extends to worker safety with OSHA regulations to keep you and your team members safe.
It can be very stressful to have to keep up with all of the reporting you are required to do, especially if you have stake in wells in more than one state. Deadlines are always looming, and regulations are always changing; it’s risky to manage it all alone.
Beyond the everyday reporting, you might also find yourself in a situation where you have to manage unclaimed property/escheatment. This unpaid revenue in your books needs to be tracked down, and you will need to file the appropriate paperwork according to your state’s escheatment laws and track down what states have a claim to those funds.
The Need for Timely and Accurate Reporting
The ever-changing rules and statutes set forth at the state, federal, and tribal levels can create complex challenges for producers trying to maintain compliance. Failing to keep up with the proper compliance for your wells can lead to many consequences, including lost time from adjusting reports, lost money, and even penalty fines and audits.
Whether you have five leases on a single piece of land or 500 leases spread over many states, you can’t afford to ignore the importance of knowing and tracking all of your required regulations.
You Don’t Need to Do It Yourself
With over 25 years of regulatory experience under our belt, we dig deep into your filing history so that we can better understand your company and its needs and ensure that we are managing your compliance properly and providing accurate reporting from the start.
Currently, the regulatory team provides services for 115 clients and reports to 13 different states. We currently have regulatory clients in Texas, New Mexico, Oklahoma, Louisiana, Mississippi, Arkansas, Kansas, Utah, Colorado, Wyoming, Montana, North Dakota, and Michigan. And, on top of state reporting, we also handle your federal reporting to the ONRR and EIA as well as reporting on any tribal lands.
Our team is well-versed in royalty reporting and escheatment, and we have a deep understanding of the environmental, legal, and safety regulations that apply within the oil & gas industry. At the state level, our accountants are highly knowledgeable about the regulations and requirements for each of the 50 states, so no matter how simple or complex each state’s reporting and filing processes can be, you can feel confident that we have your regulatory compliance needs well in hand.
Check out the full list of our Regulatory Services here!
Do you have regulatory compliance concerns? Contact our sales team!
Angella is the newest addition to the PetroLedger Marketing team. She comes to us with many years of experience in various marketing settings creating graphics and running ad campaigns. She has a Bachelors in Graphic Design and Media Arts.
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