ONGARD
Modernization
Project Charter
Executive Sponsors – Della Gutierrez, David Fergeson
and Mark Fesmire
Business Owner – Tony Hoffman
Project Manager – David Piatt
Original Plan Date: 19 July 2007
Revision Date: 31 July 2007
Revision: 2.1
table of contents
table of contents i
Revision History ii
1.0 Scope of Work 1
2.0 Deliverables 12
2.1 Project Deliverables Initiation Phase 12
2.1.1 Project Deliverables Initiation Phase 12
2.2 Product Deliverables 12
2.2.1 Product Deliverables 12
Justification and Objectives 13
2.2 Business Objectives 14
2.3 Technical Objectives 14
2.4 Quality metrics 15
3.0 Initiation Schedule Estimate 16
4.0 Initiation Budget Estimate 16
5.0 Stakeholders 17
6.0 Constraints 18
7.0 Dependencies 18
8.0 Assumptions 18
9.0 Risk 18
10.0 PROJECT GOVERNANCE PLAN 19
11.0 COMMUNICATION PLAN FOR EXECUTIVE REPORTING 19
12.0 INDEPENDENT VERIFICATION AND VALIDATION - IV&V 21
13.0 Project Charter Agency Approval Signatures 23
14.0 Project Charter Certification Approval Signature 23
Revision History
1.0 / July 19 2007 / Final
2.0 / July 25, 2007 / Reorganized goals and justification to match certification document. Updated drawings to reflect current OCD architecture. Per Jane Prouty redlines.
2.1 / July 31, 2007 / Updated project budget numbers
This is a controlled document, refer to the document control index for the latest revision
Revision: 2.2 CIO-PMO-FOR-010 ii
Project Charter
1.0 Scope of Work
Introduction
The mission of the ONGARD Service Center (OSC) is to provide efficient, professional, and impartial computing services to its three client agencies: the New Mexico State Land Office (SLO); the New Mexico Energy, Minerals, and Natural Resources Department/Oil Conservation Division (EMNRD/OCD); and the New Mexico Taxation and Revenue Department (TRD).
Together, ONGARD’s three client Agencies are principally responsible for the analysis and review of oil and gas data, the collection of tax and royalty revenue, and the maintenance of related lease records. Prior to the development of the ONGARD application system, these agencies maintained separate data systems to accomplish their respective mandated responsibilities. Of serious concern for all involved was the belief that significant tax and royalty income was not being collected due to each agency’s inability to effectively track and verify the accuracy of the petroleum industry’s reports relating to the production and sale of oil and natural gas.
ONGARD was established to ensure that the State is receiving the oil and gas tax and royalty revenues to which it is entitled. Accomplishing this goal was a twofold process, first by ensuring that the requisite tax and royalty calculations use correct volumes and values, and second, by ensuring that the correct amounts of revenue are remitted and accurately accounted for in a timely and efficient manner. Therefore, a major objective of the ONGARD application design is to verify that the State has reasonable assurance that it is receiving the tax and royalty payments to which it is entitled, that the calculations are based on proper volumes and values, and that the correct amounts are remitted.
The overall goals of the ONGARD Modernization Project are:
• Provide a roadmap, project schedule and fundamental application architecture design to allow the agencies to meet their ever-changing business requirements.
– Provide robust data storage available to all agencies
– Modify the ONGARD application to allow easy access to any GIS mapping application utilized within the three agencies
– Provide improved security and audit-ability
– Enable the expansion of eGov initiatives
• Transition from inflexible, legacy mainframe systems to less expensive and more adaptable system
– Simplify operating environment
– Reduce cost of ownership
– Facilitate recruiting and improve employee retention by eliminating the need for COBOL, CICS, DB2 and mainframe JCL expertise.
• Correct legacy system deficiencies
– Data corrections to ONGARD databases are often made on a manual basis (with a tightly controlled process) because the complex business rules are not properly reflected in the database design
• Must be addressed with any proposed system solution
• Requirement is to eliminate any need for data changes with the new system or provide adequate system process to track and handle such changes within the system
• Provide a common data repository for the Tri-Agencies
– Properly reflect complex business rules in the database
– Standardize use of primary identifiers (OGRID, STID etc)
– Add GIS reference points to data structure
• Recent changes to seldom maintained ONGARD mainframe modules have uncovered system bugs that have remained undiscovered for a number of years
– Any new system will be thoroughly tested prior to implementation
– Adequate budget allocations and professional testing assistance will be incorporated into the ONGARD Modernization Implementation plan
The benefits anticipated from the project are:
• The overall ONGARD Modernization Project addresses the need to develop a robust, secure and flexible system that meets the current and future needs of industry, taxpayers and our agency staff:
– Implement a consistent, systematic approach to developing new ONGARD computing systems for the Tri-Agencies
– Establish unified identity management for internal and external users (e.g., STID, OGRID etc.)
– Improve utilization and control of applications to improve security and audit-ability
– Reduce large data replication between agency operating environments
– Reduce operational and future development costs
– Eliminate the need to hire CICS/COBOL legacy programmers
– Provide GIS functionality integrated with ONGARD applications
• The overall ONGARD Modernization Project aligns ONGARD with the State’s IT Plan:
– Reduce duplication of services
– Reduce manual processes through automation Improve service to all customers – public and other agencies.
– Improve efficiency – including productivity and speed of transactions.
– Increase tax revenue by generating more productive and profitable audits
– Increase royalty revenue through more accessible and streamlined leasing processes
– Create a better workplace for our employees.
– Make it easy to do business with state government.
– Reduce cost of government.
This Project Charter defines the ONGARD Modernization Project. The goals of the Initiation and Planning Phase of the project are:
• Validate the agencies’ high-level requirements documented in the 2004 ONGARD Needs Assessment and 2005 Harry Beck study.
• Organize requirements to facilitate creation of new system selection criteria and analysis of potential solutions
• Develop a proof-of-concept MS SQL Server database
• Develop a benchmark for porting the system from the mainframe
• Develop metrics (e.g., function points) for the baseline mainframe code
• Collect input from potential software vendors
• Investigate implementations done by other states
– Visit up to four states to explore best practices
• Document the architectural design alternatives
• Develop and document the proposed migration strategy
• Develop and document justification and plans for the next phase of the ONGARD Modernization project.
• Finalize and execute IV&V contract for the next phase
• Engage Agency Personnel in the Solution
– COTS demonstrations
– Visit other States with Interagency team
– Develop a prototype of database
– Port an ONGARD Track and demo
• Establish Industry Focus Groups for guidance
• Maintaining momentum – developing useful Initiation Phase products
– A mutually agreed upon ONGARD IT strategy
– Working database server and new schema
– Firm understanding of what it would take to port the applications to a client / server architecture
By developing and implementing the proposed architecture, ONGARD will be aligned with the State of New Mexico Information technology plan that embodies some of the key drivers for the recommendations. The fundamentals in the plan that are pertinent to this recommendation include:
• Reduce cost of government operations through IT by facilitating sharing of systems, process & data
• Enhance Delivery of Services to Clients by facilitating a customer-centric cross-agency approach
• Establish unified identity management for internal and external use
• Identify common business functions and data and use middleware when appropriate to enhance access to all data
• Reduce cost of IT operations through
• Improved organization of IT
• Implement expert group/domain teams
• Consolidation of common IT services
• Common security management
• Business continuity disaster recovery
Current State
ONGARD was originally conceived and developed as a shared application that focused on the entire business processes rather than narrow agency requirements; however, over time the systems have diverged primarily due to the inflexibility of the legacy ONGARD COBOL/CICS/DB2 mainframe architecture.
• Current legacy system is 14 years old
– Code is becoming outdated and is at risk of becoming obsolete
– Investment will be required soon to upgrade COBOL and DB2 if left on the mainframe
• ONGARD needs to be enhanced to overcome some of the system deficiencies in data design, security and audit-ability
• Lack of funding for modernization is weakening the value gained by the original concept of a shared computing system
– Original concept of shared data is being diluted by mainframe database and large data migration between platforms.
• Although business owners are satisfied with the current system—they recognize and support the need for modernization
Currently, ONGARD data is being extracted, manipulated, and in some cases electronically updated by the ONGARD Service Center, the State Land Office, Taxation and Revenue, and the Oil Conservation Division. The ad hoc downloading of ONGARD tables with no uniformity as to method or timing is confounding data ownership and creating data problems. A variety of techniques are being used to extract and manipulate the data. OSC is using an HIS utility for data extraction, SLO is using DB2Connect, and OCD is using daily mainframe programs to extract and upload data directly into ONGARD tables. Currently, all three organizations have plans to further build applications outside of the ONGARD mainframe to meet the business needs of the users that were not met in the existing ONGARD implementation. TRD and OCD are supplying data to ONGARD through electronic files that are uploaded by applications supplied by the ONGARD Service Center. Figure 1 Current ONGARD System, illustrates the ONGARD associated applications.
Figure 1 Current ONGARD System
The database has been compromised over time by the lack of programmatic integrity controls in the application and database layers:
· Oil and Gas Reporting ID (OGRID) update processes are different between the agencies resulting in inconsistent ways to do business with the State of New Mexico.
· OGRIDs are used to represent multiple types of reporting; however, no separate status and dates are maintained with the data to make cross-functional usage viable.
· The State ID (STID), originally designed to be a state identifier, is used by non-oil and gas reporters; however, some assignment of OGRID exists versus STIDs.
· The agencies have assigned many OGRID numbers allowing this to be driven in part by the industry request. As a result, there are duplicate OGRIDs in the system.
· The data integrity issues within ONGARD and lack of integrity at the application layer regarding the Production Unit Number (PUN) process requires manual approval of multiple changes impacting the current PUN design and causing reporting issues that go unresolved.
· The design of the PUN data associations and the ensuing process make data integrity questionable. The PUN is primarily defined to represent an OGRID, Pool, and property; however, actions that may result in a change to one of the elements do not necessarily change the PUN. It is difficult to maintain the relationships from a database perspective and difficult for the industry to comprehend the actions that require a change in PUN.
The requirement for an integrated Geographical Information System (GIS) and GIS data is widespread. Currently, all three ONGARD contributing agencies use critical land description data for business functions. The State Land Office is responsible for the ownership rights and usage of state lands to benefit the designated beneficiaries. These beneficiaries are an attribute to each quarter-quarter (Unit Letter) division of state lands. The Oil and Gas Conservation Division manages the spatial locations, production data, and the protection of collateral resource rights including surface safety, groundwater, and the subsurface oil and gas rights of correlative ownership. The basis for all OCD data is spatial as it relates to the Public Land Survey System, as well as to geographic coordinate values. Taxation and Revenue are also key end users of location data for wells as it relates to the tax revenue recipients, which are typically the Local County, civic districts (including schools), and municipalities. Each production unit number (PUN) return is specified with a suffix to provide for appropriate beneficiaries. Furthermore, the TRD interacts with the United States Mineral Management System (U.S. MMS) and works statewide taxation data that need an improved record for ownership rights specifying what is federal, state, tribal, and fee (private).
ONGARD currently categorizes land to the Public Land Survey System (PLSS) quarter-quarter division, which is represented by the Unit Letter designation. This level of resolution of land description is sufficient for most oil and gas activity, but is woefully short of the needs for many commercial and agricultural state land users. ONGARD is limited to a rudimentary, line work matrix based on the Unit Letter view of land ownership and rights in the green screen environment. These screens are in use by various leasing staff; however, the Field and Mapping teams of SLO are implementing the further use of GIS for creating ownership and leasing map to a more statewide basis through the use of commercial ESRI GIS software and modified Premier map automation tools. Data from ONGARD are exported to SQL Server, then processed through automated conversion tools to GIS shape files referenced to the Bureau of Land Management’s (BLM’s) Geographic Coordinate Database (GCDB) at the 16th level survey based subdivisions. The 16th level subdivisions are similar to the Unit Letter quarter-quarter divisions except that the GCDB contains sub 40-acre government lots, river meander lots, and mineral and homestead patent tracts and surveys. Tools to add data below the GCDB government level surveys are lacking.
OCD utilizes GIS on a limited basis within their desktop Risk-Based Data Management System (RBDMS) to display well locations, background data (including topological maps and Digital Ortho Quarter Quad (DOQQ) aerial photographs), as well as real-time Global Positioning Satellite (GPS) locations. Querying on a well spot will display basic well information with links to master data, images, etc. The system was originally developed to aid well inspectors in finding well locations on laptop versions of RBDMS and has not been generally available. The well locations are generated by exporting ONGARD data.