DNR-OMM External Audit of Breitburn Operating Ltd Prtnrshp

The State of Michigan's Department of Natural Resources, Office of Minerals Management (DNR-OMM) is seeking an external financial audit of BreitBurn Operating Limited Partnership's oil and gas operations across three specific Royalty Reporting Units (RRUs) in Michigan. The audit will cover the Garfield Section 8 in Kalkaska County, Livingston East in Otsego County, and Dover Ridge in Otsego County, spanning the period from April 1, 2016, to March 31, 2018. The primary objective is to conduct a comprehensive review of royalty reporting and compliance for state-leased oil and gas wells, with a contract start date of September 15, 2018. The audit will examine five wells in Garfield Section 8 (with a state decimal interest of 0.1650000), fourteen wells in Livingston East (with a state decimal interest of 0.0449909), and six wells in Dover Ridge (with a state decimal interest of 0.0970860). Key deliverables will include a detailed financial examination of production records, royalty calculations, and compliance with state oil and gas lease agreements. The solicitation was posted on September 13, 2018, with the same date serving as the submission deadline, indicating an immediate procurement timeline.

While no specific set-aside designations or restrictions on vendor participation are explicitly mentioned in the documentation, the audit requires a contractor with specialized expertise in oil and gas financial auditing and thorough understanding of state lease agreements. The audit will be conducted at BreitBurn's records facility in Houston, Texas, suggesting a need for vendors with capacity to perform remote and on-site financial investigations. All three RRUs operate under pre-July 1996 State Leases, which may require specific historical knowledge of royalty calculation methodologies. The wells are situated across varied acreage, including 3,477.88 state acres for Garfield Section 8, 98.98 state acres for Livingston East (out of 2,200 total acres), and 269.60 state acres for Dover Ridge (out of 1,189.60 total acres). Although no specific budget range is provided in the available documentation, the complexity of the audit across multiple wells and jurisdictions suggests a potentially significant engagement requiring comprehensive financial and technical expertise in oil and gas royalty reporting.