12/0

1/2

012

DR

AF

T1

AS

RD

Lan

d M

anag

emen

t Bran

ch

SU

RF

AC

E M

AT

ER

IAL

S A

UD

IT P

RO

GR

AM

: Vo

lum

e Verificatio

n

A p

resentatio

n at th

e AS

GA

20

12

An

nual G

eneral M

eeting:

Janu

ary 1

7th, 2

01

2

By : A

nth

on

y B

aru, S

urface M

aterials Aud

itor: A

SR

D, E

dm

on

ton

.

Sand &

Gra

vel A

udits

Effe

ctiv

e

Septe

mber 2

011

12/0

1/2

012

DR

AF

T2

Presen

tation

Ou

tline

�B

ackgro

und

�R

isk b

ase

d a

ppro

ach to

auditin

g s

an

d a

nd g

ravel

royalty

reven

ue

�G

oals

of th

e A

udit P

rogra

m

�V

olu

me V

erific

atio

n M

eth

od

olo

gie

s

�T

he a

udit; A

OR

and

evalu

atio

n to

ols

�B

acksto

ppin

g &

Supp

ort N

etw

ork

�Im

ple

me

nta

tion

�M

ilesto

ne

s

�C

onclu

sio

n

12/0

1/2

012

DR

AF

T3

Back

gro

und:

OA

G ex

amin

ed S

RD

’s man

agem

ent o

f self reported

reven

ue

& id

entified

requirem

ents

�Im

pro

vin

g p

rocesse

s fo

r inspe

ctin

g a

ggre

gate

hold

ings o

n p

ublic

land

�E

nfo

rcin

g la

nd re

cla

matio

n re

quire

me

nts

�V

alid

atin

g s

elf-re

porte

d re

ve

nue w

ith s

upp

ort

syste

ms: to

ensure

that o

pe

rato

rs re

port a

ccu

rate

volu

mes, a

nd S

RD

record

s c

orre

ct n

um

bers

in o

ur

fina

ncia

l sta

tem

ents

12/0

1/2

012

DR

AF

T4

Risk

-based

appro

ach:

Consu

ltants (M

NP

) found

risks an

d m

ade reco

mm

endatio

ns fo

r SM

Ls.

Ris

ks

�P

ote

ntia

l un

de

rsta

tem

ent o

f reve

nu

e d

ue to

:

�F

ailu

re o

f clie

nts

to s

ubm

it their A

nnual R

ep

orts

�F

ailu

re o

f clie

nts

to re

port (to

SR

D) c

orre

ct (s

patia

l) dis

turb

ances (a

nd v

olu

mes re

mo

ved) o

n th

eir A

nnual

Opera

ting R

eports

(AO

R)

Critic

al R

eco

mm

enda

tion:

�E

nsu

re th

at v

olu

mes e

xtra

cte

d fro

m a

ctiv

e S

ML

dis

po

sitio

ns a

re v

erifie

d (S

MC

sn

ot e

xclu

ded

!)

12/0

1/2

012

DR

AF

T5

Go

als of th

e Au

dit P

rog

ram

�T

o e

ncou

rage a

nd, if n

ecessary

, com

pel th

e b

ehavio

ral

changes n

eeded

to a

chie

ve c

om

plia

nce w

ith S

RD

le

gis

latio

n.

�T

o m

an

age

an e

ffectiv

e a

udit p

rogra

m a

s p

art o

f the

overa

ll reg

ula

tory

cycle

.

12/0

1/2

012

DR

AF

T6

Go

als of th

e Au

dit P

rog

ram

�E

nsu

re A

lbe

rtan

s re

ce

ive

fair a

nd

optim

ize

d b

ene

fits fro

m th

e

reso

urc

e

�T

o c

on

du

ct o

ur a

ud

it activ

ities in

an

acco

un

tab

le, fa

ir, an

d

tran

sp

are

nt w

ay

�P

rovid

e a

ssu

ran

ce

to a

ll op

era

tors

tha

t SR

D h

as a

syste

m in

p

lace

to c

urta

il un

fair b

usin

ess a

dvan

tag

es.

http

://ww

w.p

ituvik

.com

/Inuts

ulig

atju

k/

12/0

1/2

012

DR

AF

T7

Verificatio

n M

etho

dolo

gies

�M

eth

od

use

d b

y a

n o

pera

tion d

ep

en

ds o

n th

e

uniq

ue

ne

ss o

f its b

usin

ess c

onfig

ura

tion

�E

ach

ope

rato

r will a

do

pt m

eth

od

olo

gie

s th

at

best m

ee

ts h

er/h

is b

usin

ess n

ee

ds

http

://davco.b

c.c

a/im

ages/m

inin

gscale

12/0

1/2

012

DR

AF

T8

Verificatio

n M

etho

dolo

gies

�E

ach

meth

od

olo

gy m

igh

t req

uire

a u

niq

ue

pit-

pla

n, e

xp

ertis

e, a

nd p

rogre

ssio

n o

f op

era

tions

�P

ro-a

ctiv

e p

lan

nin

g &

co

ntin

ge

ncie

s to

track a

nd

(accura

tely

) mea

sure

volu

mes w

ill (u

nd

ers

tan

da

bly

) vary

Sourc

e: w

ww

.pola

rmin

.com

/opera

tions-p

roje

cts

/orc

a-q

uarry

12/0

1/2

012

DR

AF

T9

Meth

od

olo

gies (ex

amp

les)

1.

We

igh

-sca

le: s

yste

ma

tic re

co

rd k

ee

pin

g, c

lea

r and

accura

te

ca

lcu

latio

ns u

sin

g d

en

sity

facto

rs a

pp

rove

d b

y S

RD

Tonnage =

Volu

me x

Density

-Facto

r*T

onnage =

Are

a x

Thic

kness x

Den

sity

-Facto

r

*Density

Facto

r = M

ass o

f mate

rial / V

olu

me o

f mate

rial

LM

B u

ses 1

.2477064 fo

r Gra

vel &

1.0

435779 fo

r Sand

2.

De

rivin

g v

olu

me

s u

sin

g re

fere

nce

& a

ctu

al g

rou

nd

su

rfaces

Sourc

e: h

ttp://w

ww

.becherh

oppe.c

om

/

3.

Oth

er m

eth

od

olo

gie

s th

at a

ccu

rate

ly d

ete

rmin

e v

olu

me

s

12/0

1/2

012

DR

AF

T10

Vo

lum

es from

reference &

actual su

rfaces

�U

sin

g tra

ditio

na

l (co

nve

ntio

na

l) vo

lum

etric

su

rve

y o

r ea

rthw

ork

sm

eth

od

olo

gy, in

clu

din

g g

roun

d m

od

elin

g

So

urc

e: h

ttp://w

ww

.su

rve

yin

ge

qu

ipm

en

tand

leve

ls.in

fo/

�U

sin

g s

urv

ey (g

eo

de

tic) g

rad

e (d

ua

l freq

ue

ncy) G

PS

me

tho

do

log

y –

Ra

pid

Sta

tic o

r RT

K c

om

bo

, inclu

din

g g

rou

nd

mo

de

ling

Sou

rce

: http

://img

.dire

ctin

du

stry

.co

m

12/0

1/2

012

DR

AF

T11

Vo

lum

es from

reference &

actual su

rfaces

�P

hoto

gra

mm

etric

: baselin

e flig

ht d

ata

, scale

, tim

ing, a

nd te

mpo

ral c

ha

ng

es, in

clu

din

g g

rou

nd

mo

delin

g o

r oth

er m

ea

ns

Sourc

e: s

an-lo

.com

�Laser s

ca

nnin

g, in

clu

din

g g

roun

d m

od

elin

g o

f pits

or s

tockpile

s

12/0

1/2

012

DR

AF

T12

Th

e Au

dit | T

riggers b

y A

OR

�W

hate

ver m

eth

od

olo

gy, e

ach o

pera

tor m

ust

ind

icate

how

volu

mes re

moved w

ere

deriv

ed b

y

de

mo

nstra

ting th

e fo

llow

ing (a

t a m

inim

um

) (not a

n

exclu

siv

e lis

t):1.

Pro

vid

ing v

erifia

ble

weig

h-s

ca

le re

cord

s

2.

Keep

ing a

nd p

rovid

ing g

rou

nd

surv

ey in

form

atio

n

that, in

the o

pin

ion o

f a p

rofe

ssio

nal s

urv

eyor, c

an

be u

se

d to

deriv

e v

olu

mes

3.

Stra

teg

ies a

nd re

sults

used to

de

rive v

olu

mes, if

oth

er o

bje

ctiv

e (v

erifia

ble

) and

techn

ical m

eth

ods

were

used

12/0

1/2

012

DR

AF

T13

SR

D A

udits an

d E

valu

ation T

ools:

Leg

islation, scien

ce & tech

nolo

gy, p

rofessio

nal ju

dgm

ent

Sourc

e: A

LS

New

s J

une 2

011 -

Vol. 4

0-2

Sourc

e: w

ww

.firsto

rder.c

a

12/0

1/2

012

DR

AF

T14

To

ols: T

errestrial Laser S

canner

�A

pro

ce

ss to

verify

qu

an

tity (v

olu

me

) rem

ove

d:

Use

of T

erre

stria

l La

se

r Scanne

r (Gro

und

LID

AR

)

Wo

rk-F

low

:P

it scan >

poin

t clo

ud d

ata

> T

IN m

esh >

TIN

mesh +

deriv

ed x

-sects

> v

olu

me

(TIN

Mo

de

l > D

TM

> V

OL

UM

E)

Sou

rce

s: T

erra

Inte

rna

tion

al; h

ttp://w

ww

.faro

.co

m/fo

cu

s/u

s

�In

terp

reta

tion

of te

st-p

it data

an

d la

nd

surv

ey in

form

atio

n: b

aselin

e

(refe

rence

) top

og

rap

hy

�cro

ss-s

ectio

n o

rien

tatio

ns: u

sin

g s

uccessiv

e e

nd

-are

as p

erp

end

icu

lar to

p

rofile

s th

at lin

k te

st p

its, e

tc.

12/0

1/2

012

DR

AF

T15

Tools …

3D

Photo

gram

metric m

ethodolo

gy:

an o

ptio

n u

nder in

vestig

ation

�P

hoto

Mo

dele

r(V

ancouver b

ased c

om

pa

ny)

�3D

mod

ellin

g &

mea

surin

g�

Imag

es (o

verla

pp

ed

) take

n w

ith D

igita

l SLR

ca

mera

; gro

und m

od

ele

din

3D

Photo

Mo

dele

rsoftw

are

�Im

ag

es fro

m P

ho

toM

ode

ler:

“Sto

ckpile

image

taken

with

a C

ano

n E

OS

1D

S m

ark

II and

50

mm

Le

ica

lens

from

a C

essna

172

ae

ropla

ne

at a

pp

roxim

ate

ly 3

00

me

tres”

Sourc

e: h

ttp://w

ww

.photo

modele

r.com

/pro

ducts

/scanner/s

tockpile

s.h

tm

12/0

1/2

012

DR

AF

T16

Tools …

an illu

stration o

f a system

atictest-p

it grid

(to o

btain

a represen

tative estim

ate of reserv

es)

Pit B

aselin

e S

urv

ey: S

urv

eyin

g w

ith C

onstru

ctio

n A

pplic

atio

ns -

Barry

F. K

avanagh

12/0

1/2

012

DR

AF

T17

Tools …

an illu

stration o

f end-area cro

ss-sections

(Adapte

d fro

m C

EC

W-C

E U

SC

E: 1

1101-1

-1005 m

anual)

�E

nd

-Are

as o

f two

co

nse

cu

tive

cro

ss-s

ectio

ns to

facilita

te v

olu

me

ca

lcu

latio

n o

f co

mp

lete

d p

ha

se

s o

f exca

va

tion

: va

riou

s

ap

pro

ach

es to

en

d-a

rea

ca

lcu

latio

ns –

CA

D, fo

rmu

lae

, co

ord

ina

tes, P

lan

ime

ter, e

tc.

12/0

1/2

012

DR

AF

T18

Tools: cro

ss-sections

(Adapte

d fro

m C

EC

W-C

E U

SC

E: 1

1101-1

-1005 m

anual)

�E

xam

ple

of a

typic

al x

-sectio

n c

ut p

erp

endic

ula

r to 3

pro

files ru

nnin

g a

lon

g 3

equid

ista

nt g

ridlin

es th

at c

onne

ct

test p

its, o

n a

syste

matic

grid

�N

ote

impo

rtance o

f test d

epth

to e

ach s

oil la

yer to

fa

cilita

te c

alc

ula

tion o

f volu

mes fo

r each

pro

file, in

the

absence o

f suppo

rting

weig

h-s

cale

info

rmatio

n

12/0

1/2

012

DR

AF

T19

To

ols …

contin

ued

�R

ela

ting a

reas d

istu

rbed to

decla

red v

olu

me

s, a

nd to

appro

ved C

RB

P

�A

pro

cess to

reco

ncile

royalty

pa

yable

with

volu

me

rem

oved b

y a

uditin

g th

e o

pera

tor’s

financia

l sta

tem

ents

and s

ou

rce

docum

ents

�U

se o

f Com

plia

nce a

nd E

nfo

rce

ment to

ols

, alo

ng w

ith

above o

utlin

ed to

ols

and p

rocesses

12/0

1/2

012

DR

AF

T20

Ev

en reclam

ation

plan

s are best in

terpreted

and

app

reciated in

x-sectio

n:

Courtesy

of B

rock

Helm

(AS

GA

)

12/0

1/2

012

DR

AF

T21

Back

stoppin

g an

d S

upport N

etwo

rk

�W

ork

ing to

geth

er w

ith a

nd

alo

ngsid

e o

ther

SR

D d

epartm

ents

�C

onsultin

g w

ith a

nd re

ceiv

ing in

put fro

m

opera

tors

to id

en

tify a

nd a

ddre

ss e

merg

ing o

r re

curre

nt c

oncern

s

�In

corp

ora

ting e

xpertis

e fro

m v

ario

us S

RD

sta

ff and fro

m in

dustry

-to

meet th

e g

oals

of

the a

ggre

gate

po

licy, in

rela

tion to

SR

D’s

bro

ader o

bje

ctiv

es

�B

enchm

ark

ing fo

r contin

ual im

pro

vem

ent

12/0

1/2

012

DR

AF

T22

Imp

lemen

tation

�C

onductin

g fie

ld a

nd in

-offic

e a

udits

�In

form

atio

n s

harin

g a

mong u

nits

(LM

B, P

MB

and C

/E):

Audits

, inspectio

ns, in

form

atio

n re

vie

ws, A

R, A

OR

�F

oste

ring re

cip

rocal a

nd re

sponsiv

e s

erv

ice le

vel

unde

rsta

nd

ings w

ithin

SR

D, a

nd w

ith O

pera

tors

; conductin

g b

usin

ess c

oncurre

ntly

to id

entify

gaps

�C

onductin

g jo

int d

iscussio

ns o

n s

trate

gie

s, p

olic

y

impro

ve

me

nt a

nd

edu

catio

n

�D

evelo

pin

g a

nd s

hapin

g p

olic

y u

sin

g a

stru

ctu

red

appro

ach a

nd c

learly

-defin

ed p

roble

ms

12/0

1/2

012

DR

AF

T23

Milesto

nes

�T

erre

stria

l Laser S

can

ner (G

roun

d L

IDA

R): a

possib

ility

�A

pla

n fo

r verify

ing v

olu

mes re

mo

ved: in

pro

gre

ss

�D

evelo

pin

g, im

pro

vin

g, a

nd in

stitu

ting in

tern

al c

ontro

ls: in

pro

gre

ss

�A

nnual a

ud

it work

pla

n: c

om

ple

ted.

�P

rogra

m ro

llout: in

pro

gre

ss

�C

om

munic

atio

n: O

pera

tors

alre

ady n

otifie

d

�T

arg

et d

ate

for firs

t com

plia

nce a

udit: 1

co

mple

ted

Oct.

2011

�D

evelo

pin

g a

nd s

hapin

g p

olic

y: a

s n

ecessary

12/0

1/2

012

DR

AF

T24

Co

nclu

sion

�Q

uestio

ns??

So

urc

e: B

usin

ess C

ato

on

s-

http

://ww

w.b

usin

essca

rtoon

s.c

o.u

k

Co

nta

ct in

form

atio

nA

nth

on

y.Baru

@gov.a

b.c

a|7

80-4

22-5

150