MMS nears final stages of reengineering financial system

Petroleum News Alaska

The U.S. Department of the Interior’s Minerals Management Service said May 9 that it is nearing completion of the reengineering of its royalty financial system.

“Scheduled to become effective Oct. 1 of this year, improvements have already undergone major evaluation and testing to meet the needs of industry participants as well as the Minerals Management Service,” said associate director for Minerals Revenue Management Lucy Querques Denett.

Minerals Revenue Management, formerly the Royalty Management Program, began its reengineering effort with a review and evaluation of its entire program.

The agency said states, which share in revenues collected by MMS, and Indians for whom MMS provides financial accounting and compliance services, will benefit from faster release of information and revenues.

Among the most important changes will be to Minerals Revenue Management’s financial system, including collecting, accounting of revenues and associated reporting activities. Effective Oct. 1, they will include both substantial and subtle alterations.

A CD-ROM version of the revised Reporter Handbooks is scheduled to be mailed in June to all production and royalty reporters and will be listed on the MMS web site for easy updating. Dates and locations for training classes are also available on the MMS web site.

“Effective June 1, 2001, magnetic and cartridge tapes, electronic mail, and diskette reporting will no longer be accepted,” said Associate Director Denett.

Companies have three options for reporting data to MMS, all through Peregrine Systems (formerly Harbinger Corp.): forms may be completed on Peregrine’s secure web site; Peregrine-provided software can be used and the data transmitted to Peregrine via the Internet; or data may be submitted directly through special EDI file formats to Peregrine via a Value Added Network. Peregrine validates information and then forwards it to MMS.