Economic and Social Council: United Nations

UNITED
NATIONS E
Distr.
Economic and Social GENERAL
Council ECE/ENERGY/GE.3/2009/6
8 October 2009
ENGLISH ONLY
ECONOMIC COMMISSION FOR EUROPE
COMMITTEE ON SUSTAINABLE ENERGY
Ad Hoc Group of Experts on Harmonization of

Fossil Energy and Mineral Resources Terminology
Seventh session
Geneva, 29-30 October 2009
Item 3 of the provisional agenda
UNITED NATIONS FRAMEWORK CLASSIFICATION FOR FOSSIL

ENERGY AND MINERAL RESERVES AND RESOURCES 2009
Report prepared by the Task Force on Revision of the United Nations Framework
Classification for Fossil Energy and Mineral Resources
Summary
At the fifth session of the Ad Hoc Group of Experts on Harmonization of Fossil Energy
and Mineral Resources Terminology a Task Force was established and charged with, amongst
other issues, revising the United Nations Framework Classification for Fossil Energy and
Mineral Resources (UNFC) that had been adopted in 2004 (UNFC-2004). This report
summarizes the work of the UNFC Revision Task Force in relation to revising the text of UNFC-
2004 only. The Task Force, which consists of the members of the Extended Bureau of the Ad
Hoc Group of Experts plus selected experts, has developed and proposed a revised version of
UNFC-2004, based on recommendations arising from a previous study by a Mapping Task Force
of the Ad Hoc Group of Experts. This Report serves to document the due and transparent process
that has been undertaken in preparing a draft revised text of UNFC-2009.
The Report is for presentation to the seventh session of the Ad Hoc Group of Experts for
its background information when considering whether to recommend the use of the proposed
revised UNFC-2009 in lieu of UNFC-2004.
GE.09-
ECE/ENERGY/GE.3/2009/6
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CONTENTS
Paragraphs Page
Introduction………………………………………………………................... 1-2 3
I. The Revision Process .............................................................................. 3-12 4
II. General Considerations ........................................................................... 13-17 6
III. Specific Comments ................................................................................. 18 6
1. Users of earlier versions of the United Nations Framework
Classification for Fossil Energy and Mineral Resources............... 19-23 7
2. Specifications and guidelines......................................................... 24-26 8
3. Add reference to Mapping Task Force Report .............................. 27-29 8
4. Remove reference to financial reporting ....................................... 30 9
5. Use of the term “reserves” ............................................................. 31-33 9
6. Maintenance of the Classification.................................................. 34 9
7. Improvements to Figure 1.............................................................. 35 9
8. Reverse sequence of United Nations Framework
Classification for Fossil Energy and Mineral Reserves and
Resources 2009 and Explanatory Note.......................................... 36 9
9. Expand G4 to account for uncertainty ........................................... 37-38 10
10. Show additional classes on Figure 1.............................................. 39-40 10
11. Remove references to “project” in Figure 1 .................................. 41-42 10
12. Two-dimensional and three-dimensional representations of
the United Nations Framework Classification for Fossil
Energy and Mineral Resources ...................................................... 43 11
13. Exclude definitions of sub-categories............................................ 44-45 11
14. Artisan mining considerations ....................................................... 46-48 11
15. Classifying all resources on a common basis ................................ 49 11
16. Meeting local needs and avoiding frequent changes ..................... 50-52 12
17. Explanatory notes to G1/G2/G3 .................................................... 53 12
18. Discussion of developed/undeveloped sub-categories .................. 54 12
19. Definition of “total in place” using E categories ........................... 55 12
20. Exclude exhausted resources from inventory ................................ 56 12
21. More detailed definition of G categories ....................................... 57 13
22. Ensure E categories include economic and social viability........... 58 13
23. E3 contains sub-categories of a different nature............................ 59 13
24. Application to unconventional petroleum resources ..................... 60-61 13
25. Text changes to United Nations Framework
Classification for Fossil Energy and Mineral Resources
and Explanatory Note .................................................................... 62 13
26. Indicate users and purpose of proposed revised UNFC-2009 ....... 63 14
27. Subjective nature of E Axis categories ................................ ......... 64 14
28. Assessments made for different purposes............................ ......... 65-67 14
29. Reference to Class 113 ........................................................ ......... 68-71 14
30. E Axis and terminology in Figure 3..................................... ......... 72 15
31. Distinction between F4 and potentially commercial ........... ......... 73 15
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Paragraphs Page
32. Add “undiscovered” to “potential deposit” ................................... 74 15

33. Collaboration with International Energy Statistics on
terminology.................................................................................... 75 16
34. Definition of non-sales production ................................................ 76 16
35. Assurance of reliability of estimates ............................................. 77 16
36. Tracking of changes to estimates................................................... 78 16
37. Requirement for detailed breakdown of production...................... 79 16
38. Application of United Nations Framework Classification
for Fossil Energy and Mineral Resources to uranium ................... 80 17
39. Different systems for different needs ............................................ 81-86 17
40. United Nations Framework Classification for Fossil
Energy and Mineral Resources governance structure ................... 87 18
41. United Nations Framework Classification for Fossil
Energy and Mineral Reserves and Resources 2009 for
United Nations Economic and Social Council approval ............... 88-90 19
42. Sub-division of development pending ........................................... 91 19
43. Glossary of terms for United Nations Framework
Classification for Fossil Energy and Mineral Reserves
and Resources 2009 ....................................................................... 92 19
44. Unpublished comments ................................................................. 93 19
IV. Proposed Changes to the Draft Revised United Nations Framework

Classification for Fossil Energy and Mineral Reserves and Resources
2009 and Explanatory Note..................................................................... 94 20
Annexes
I. Comments Received ............................................................................... 21

II. United Nations Framework Classification for Fossil Energy
and Mineral Resources 2004 definitions and proposed
definitions for United Nations Framework Classification for
Fossil Energy and Mineral Reserves and Resources 2009 ..................... 26
INTRODUCTION
1. This report summarizes the work of the United Nations Framework Classification for
Fossil Energy and Mineral Resources (UNFC) Revision Task Force (RTF) with respect to
revision of the UNFC of 2004 (UNFC-2004). The RTF will communicate its final position on
this report to the seventh session of the Ad Hoc Group of Experts on Harmonization of Fossil
Energy and Mineral Resources Terminology (Ad Hoc Group of Experts). The RTF was
established by the Ad Hoc Group of Experts to develop and propose a revised version of the
UNFC that had been adopted in 2004, based on recommendations arising from a previous study
by a Mapping Task Force (ECE ENERGY SERIES No. 33 and ECE/ENERGY/71).
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2. The RTF mandate also included the preparation of a Discussion Paper on the
Need/Desirability of Specifications and Guidelines for the UNFC
(ECE/ENERGY/GE.3/2009/7). Consequently, in the following discussions, any references to
specifications and guidelines should not be seen as a recommendation to develop specifications
and guidelines for the UNFC or to rely on specifications and guidelines of the classification
systems to which the UNFC is mapped. This issue will be considered in the RTF Discussion
Paper.
I. THE REVISION PROCESS
3. In 2004, the United Nations Economic and Social Council (ECOSOC) in its resolution
2004/233 invited the Member States of the United Nations, international organizations and the
regional commissions to consider taking appropriate measures for ensuring worldwide
application of the UNFC.
4. A number of important classifications have been revised. Generally, there has been a trend
towards convergence with the principles found in UNFC-2004. The revised classifications
included:
(a) 2005 – New Russian Federation Classification;
(b) 2006 Revised Committee for Mineral Reserves International Reporting Standards
(CRIRSCO) Template;
(c) 2007 Society of Petroleum Engineers/World Petroleum Congress/American

Association of Petroleum Geologists/Society of Petroleum Evaluation Engineers Petroleum
Resources Management System (SPE-PRMS);
(d) 2008 Revised United States Securities and Exchange Commission (SEC) definitions
for oil and gas reporting.
5. In addition, the Canadian Oil and Gas Evaluation Handbook (COGEH) was issued in 2002
and updated in 2007, and this is also in reasonable conformance with these revised
classifications.
6. While clear evidence of convergence could be observed, it was even clearer that the
number of different classifications did not decrease. Despite broad similarities between the
systems, differences do exist. This is to be expected, given that classification systems are
designed to serve the specific needs of the stakeholders and take into account their specific
circumstances.
7. In 2007, the Ad Hoc Group of Experts decided to map certain classification systems to
UNFC-2004 and established a Task Force (UNFC Mapping Task Force (MTF)) for this purpose.
The report of the MTF (ECE ENERGY SERIES No. 33 and ECE/ENERGY/71), recommended
that certain changes be made to the category definitions of the UNFC in order to achieve
alignment between the UNFC, SPE-PRMS and the CRIRSCO Template. The MTF “proposed a
simplification of the current definitions, to the extent possible, to a point where they incorporate
the necessary principles for all commodities, without material deviation from their current
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meaning, and excluded detailed and/or commodity-specific information that could be captured in
commodity-specific guidelines”. It also stated “It is envisaged that the mapping based on these
proposed generic UNFC definitions could form the basis of a harmonised system that allows
users to classify commodity quantities and report them within various systems and, using the
mapping modules, also present results using UNFC codification. Further, these mapping
modules can serve as a “template” such that other national, industrial, and institutional level
systems can be similarly mapped into UNFC codes and thus promote international
communication and global assessments”. The Ad Hoc Group of Experts then:
(a) Considered the provisional Report of the MTF, and generally agreed to use it as a
basis for revising the UNFC and its specifications and guidelines, subject to comments from
members of the Ad Hoc Group of Experts following further review;
(b) Confirmed authorization of the Bureau of the Ad Hoc Group of Experts to act on the
views received on revising UNFC-2004 (item (e) of the programme of work for 2008);
(c) Requested that a proposal for a revised UNFC be submitted to the Extended Bureau
of the Committee of Sustainable Energy for consideration as early as possible;
(d) Requested the Bureau to prepare any proposed changes to the UNFC through a due
and transparent process, including by posting a draft text on the ECE website for public
comment over a sufficient period of time; further requested that any proposals, comments and/or
recommendations to be submitted to the Extended Bureau of the Committee on Sustainable
Energy should be published on the ECE website; and requested the Bureau to define an
appropriate timeline, taking into consideration the guidance of the Director of the ECE
Sustainable Energy Division (ECE/ENERGY/GE.3/2008/2).
8. The Bureau of the Ad Hoc Group of Experts then nominated the UNFC Revision Task
Force consisting of the Extended Bureau members plus selected experts for the purpose of
developing and proposing a revised UNFC.
9. The RTF held a number of teleconferences and three workshops: one in London, 10-11
September 2008, hosted by StatoilHydro and BP; one in Stavanger, 2-4 March 2009, hosted by
the Norwegian Petroleum Directorate; and one in London, 1-2 September 2009, hosted by Ernst
& Young.
10. A draft revised UNFC and a draft Explanatory Note to it were posted on the Ad Hoc Group
of Experts website for public comment on 8 December 2008 with the deadline of 6 February
2009.
11. At the sixth session of the Ad Hoc Group of Experts, a significant number of those
present were in favour of adopting the Draft UNFC-2009, while recognizing that there might be
a need to modify the text in the future. Some delegations (Turkey, Ukraine, Qatar, Venezuela,
Organization of the Petroleum Exporting Countries (OPEC) Secretariat) requested that the
comments received to the draft revised UNFC-2008 and accompanying draft Explanatory Note
following the close of the public comment period on 6 February 2009 that had not already been
incorporated, notably the comments received from the OPEC Secretariat on 17 March 2009 and
the additional comments received during the meeting, should be fully considered before a final
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Draft UNFC-2009 text was prepared. It was noted that since some of the requested changes
conflicted with other requests, it was not possible to incorporate all requested changes. However,
it was acknowledged that the report of the Revision Task Force should provide a detailed
explanation of the basis for adopting some proposed changes, but not others.
12. This report summarizes the general considerations of the RTF.
II. GENERAL CONSIDERATIONS
13. The draft revised UNFC was prepared primarily on the basis of the recommendations of
the MTF. Emphasis was placed on simplifying the current version and adopting generic
terminology using plain language. Further revisions were then made to reflect the comments
received on the initial draft revised UNFC. The comments were, with few exceptions, positive to
the proposal for this version and provided constructive comments for further improvements.
14. A compilation of comments received by the RTF is reproduced in Annex I. The summary
of requested changes or comments has been developed by the RTF and should be seen only as
the basis for highlighting key issues; it must not be read as being fully representative of the
views of the individual or organization that made the comment. For a complete understanding of
the points raised, reference must be made to the actual submission document by using the link to
the ECE website.
15. In reference to paragraph 11 above, the approach taken following the sixth session was to
make changes to the initial draft only where there was clear evidence that such a change would
correct an error/omission or clarify a misleading statement.
16. It was clear that some of the suggestions were incompatible with each other, e.g. some
asked for more detail (i.e. more sub-categories) while others requested less; in such cases it was
appropriate to adopt a balance between the two positions. The primary basis for determining a
reasonable compromise was that the number of categories/sub-categories should not be increased
from the 2004 version without good reason. In fact, the total number of categories/sub-categories
has been reduced relative to UNFC-2004.
17. A comparison between the definitions of UNFC-2004 and the proposed definitions for a
revised UNFC is shown in Annex II.
III. SPECIFIC COMMENTS
18. In the following sections, the comments received and the changes made are grouped
together where possible to capture particular issues, since in some cases there were several
comments received about the same issue. In Annex I, a cross-reference to the relevant section is
provided for each point raised.
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1. Users of earlier versions of the UNFC
19. Several countries and organizations raised the fact that changes to the UNFC made it
difficult for them as they had adopted or adapted and implemented a prior version of the UNFC.
This is a problem when material changes are made to a classification system and it is necessary
to try to limit such effects without compromising the need for improvement. In developing its
recommendations, the MTF took great care to minimize changes that would impact existing
application of the UNFC. However, some material changes were considered necessary to ensure
alignment with both the CRIRSCO Template and SPE-PRMS for comparable classes. The
primary changes were a consequence of the fact that, despite there being reasonable alignment
between the CRIRSCO Template and SPE-PRMS (e.g. for probable reserves), each system
mapped the equivalent quantity to a different class within the UNFC, which was untenable if the
UNFC was to act as a framework classification under which these two widely-used
classifications could co-exist. Those countries and organizations that have adopted previous
versions of the UNFC, or have adapted it to serve their specific country or organization needs,
could naturally, like any country and organization, continue to use their own classification
system and, if they wish, develop their own mapping modules to the revised UNFC.
20. Annex II illustrates the changes to the category and sub-category definitions between 2004
and the proposed revised draft of UNFC-2009. These changes are almost entirely in line with the
recommendations of the MTF. The additional material change was the removal of the sub-
categories of E2, which is discussed below.
21. It should be evident from a comparison of the 2004 and proposed 2009 category and sub-
category definitions that no re-evaluation of estimates should be required. In virtually every case,
the solid minerals and petroleum definitions have been reduced to shorter and simpler generic
definitions that do not impose any additional constraints beyond those embodied in the previous
version. On the other hand, it is clear that in a few cases the actual classification (as opposed to
the estimate itself) could change, depending on the circumstances. For example, a quantity
previously categorized on the E-axis as E2.2 would now be E3.3.
22. The level of detail provided by the sub-categories is to some extent a reflection of practice
in the petroleum sector. These were maintained where it was felt the same sub-categories could
usefully be applied to solid minerals. This logic, whereby sub-categories were considered
optional, led to the modification to the E sub-categories of E2.1 and E2.2 mentioned above. A
fundamental boundary in the minerals sector is the one that underlies “Mineral Resources” as
defined in the CRIRSCO Template. This boundary aligns with the E2.1/E2.2 boundary of the
UNFC-2004. Maintaining this distinction would have meant that quantities that satisfied the
CRIRSCO definition of a Mineral Resource could only be unambiguously classified under the
UNFC by use of sub-categories. This would have been contrary to the desire to establish a high
level framework classification with optional use of sub-categories. Under the revised version, a
Mineral Resource aligns with E2 and hence removes the need to apply sub-categories unless
further detail is considered appropriate in particular circumstances.
23. All other changes to category and sub-category definitions were reflected in the report of
the MTF, which was presented to the Ad Hoc Group of Experts at its fifth session.
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2. Specifications and guidelines
24. There were submissions (and comments at the sixth session) that specifications and
guidelines were not necessary for the Draft UNFC-2009 on the basis of the following reasons,
among others: (a) this view is in line with the MTF Report recommendations and corresponds to
the UNFC being a “ Framework Classification”; (b) the generic definitions have been designed
to be as simple as possible, capturing the key principles from the UNFC-2004, but excluding
detailed and/or commodity-specific information that could be captured better in guidelines;
(c) should guidelines and specifications be developed for the revised UNFC, then the benefit of
simplification and flexibility gained from the revision would be lost; (d) guidelines and
specifications are commodity-, country- or institution-specific and are designed to best serve the
needs of specific users; (e) mapping would facilitate an improved understanding of the UNFC
and might lead to further convergence of classification systems and/or further revisions of the
UNFC in the future.
25. However, several submissions (and comments at the sixth session) expressly asked for
specifications/guidelines and also for examples to be prepared. Indeed, as stated in the MTF
report, “The Task Force decided to develop generic principle-based definitions for each of the
categories and sub-categories and recommends that the differences in application between solid
minerals and petroleum are addressed in the form of additional commodity-specific guidelines.
These generic definitions have been designed to be as simple as possible, capturing the key
principles from the existing (2004) system, but excluding detailed and/or commodity-specific
information that could be captured better in the guidelines.” and “While the proposed UNFC
definitions for categories and sub-categories shown in the table are applicable to the full range of
commodities, it is clear that the variations in evaluation methods and classification detail will
require guidelines that are more commodity specific. The Task Force recognises that for
purposes of providing these guidelines, quantities can be broadly divided into solid minerals and
petroleum.”
26. The need/desirability of specifications and guidelines for the UNFC is subject to further
evaluation and will be discussed in a separate report (discussion paper) by the RTF (see
paragraphs 2 and 11).
3. Add reference to Mapping Task Force report
27. Since the revised UNFC has been developed in response to the recommendations of the
MTF, consideration was given to directly referencing the MTF report from within the UNFC
text. This was not implemented for several reasons.
28. The primary reason for not referencing the MTF report was the fact the report is not
consistent with the proposed revised UNFC-2009. Since completing the report, there have been
changes to the definitions of categories/sub-categories, as discussed above, and these changes
would then impact the mapping results presented in the MTF Report.
29. The MTF report is referenced in the Explanatory Note accompanying the Draft UNFC-
2009.
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4. Remove reference to financial reporting
30. The UNFC has been designed with the goal of it having the capability to be a framework
classification, including in relation to financial reporting. As a framework classification, it does
not impose any rules with respect to financial reporting obligations and it would be entirely at
the discretion of the relevant regulatory body whether or not the classification was to be adopted
as the basis for such purposes. This is analogous to the position of SPE-PRMS for the petroleum
sector.
5. Use of the term “reserves”
31. The MTF had recommended that the revised UNFC text avoid reliance on the terms
“reserves” and “resources” and instead defined classes using simple non-technical terminology.
Consequently, the draft UNFC used the term “resources” only in a general sense and did not
refer to “reserves” as part of the classification system.
32. There were comments both for and against this approach. As a compromise for those who
wished “reserves” to be included, and in recognition of the significance placed on the term, it has
been included in the title of the revised draft. The text of the Explanatory Note has also been
revised.
33. Although the term “reserves” has similar connotations under many classification systems,
there are material differences between the specific definitions that are applied within the
extractive industries. If the Draft UNFC-2009 is to serve as a framework classification, it would
either have to develop its own definition of the term, which would inevitably conflict with some
if not all existing definitions, or it could use the term in only a non-specific sense as in the title.
The latter approach was determined to be the only practical solution, as well as reflecting the
MTF recommendation.
6. Maintenance of the Classification
34. A suggestion was made to make specific reference to SPE and CRIRSCO in the context of
maintenance of the UNFC. This has not been done as the need for specifications and guidelines
is still under consideration and the maintenance requirements will depend on the form of
complementary texts, if any.
7. Improvements to Figure 1
35. The need to add clarity to Figure 1 was accepted.
8. Reverse sequence of the United Nations Framework Classification for Fossil

Energy and Mineral Reserves and Resources 2009 and Explanatory Note
36. The suggestion to document the Draft UNFC-2009 first and then include the Explanatory
Note as an annex was accepted and has been implemented.
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9. Expand G4 to account for uncertainty
37. This is an issue that has led to much discussion. There is a requirement in the petroleum
sector to be able to capture a range of estimates for an undrilled prospect. However, the minerals
sector has not expressed a similar need and so it may be considered as a commodity-specific
requirement that does need to be documented at the highest level of the system. As stated in the
revised Draft UNFC-2009, the defined categories can be further sub-divided by the users to best
serve their specific needs and circumstances and this was illustrated in the MTF report. In
addition, the supporting explanation text relating to G4 (Annex I) has been expanded in the
revised draft.
38. This is the sort of issue that would be best handled in specifications and guidelines (see
paragraph 2).
10. Show additional classes on Figure 1
39. Some users find the 3D representation complicated, so it is necessary to keep it as simple
as possible. The classes that were illustrated were identified as “examples” only and the text
states that other combinations are possible. In addition, footnote e to Figure 2 of
ECE/ENERGY/GE.3/2009/L.5 indicates that Potentially Commercial Projects could include E1
(i.e. 121, 122 and 123). The basis for selecting the particular classes that were illustrated in
Figures 1 and 2 was that they reflect the primary sub-divisions documented in the MTF report.
40. However, it was recognized that some existing users of the UNFC considered other classes
to be of particular importance and were concerned these other classes were either no longer valid
or were considered to be of diminished importance. Consequently, Figure 1 was revised to show
additional classes.
11. Remove references to “project” in Figure 1
41. The concept of a project is relatively recent in the classification of resource quantities.
However, it has now become widely accepted and adopted in the petroleum sector, and SPE-
PRMS is explicitly defined as a project-based system. In the mining sector, the project-based
approach is recognized as being consistent with business practices: pre-feasibility and feasibility
studies are prepared, including integrated life-of-mine plans, and a decision is made based on
these to raise and spend capital for development.
42. The project-based approach reflects the fact that no recovery estimates can be made other
than in the context of an extraction project, even if that project is only defined conceptually at an
early stage of maturity. The project is what defines the linkage between the efforts of extraction
such as those associated with investment of capital (and the decision-making process associated
with that investment) and the estimated quantities of the commodity that may be recovered and
sold. In this way, the UNFC provides coherence with a suite of other critical management
information.
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12. Two-dimensional and three-dimensional representations of the United Nations

Framework Classification for Fossil Energy and Mineral Resources
43. It is evident from discussions, particularly at the annual sessions of the Ad Hoc Group of
Experts, that some users prefer the 3D representation, while others find the 2D version clearer.
The only fair and equitable solution to this issue is to provide both 3D and 2D representations.
13. Exclude definitions of sub-categories
44. This is a question of providing a balance between those requesting less detail and those
that have requested more (e.g. see Section III.I). A compromise position has been adopted, as
discussed in Section II. It should be noted that use of the sub-categories is optional.
45. In addition, it was proposed that some sub-categories could be combined (F1.2 with F1.3;
F2.1 with F2.2; and F3 with F4). However, these sub-categories align directly with those of SPE-
PRMS and are considered to have important applications. As an example, the distinction
between F1.2 and F1.3 reflects the boundary between being able to demonstrate a technically
feasible development project and one that has been firmly committed. In many cases, the time
spent in F1.3 will be quite limited, but there are examples where projects are planned, but remain
uncommitted for many years, perhaps for strategic or market reasons.
14. Artisan mining considerations
46. A comment was received that the commercial emphasis of the UNFC might make it
difficult for operators of small mines to adopt it. Emphasis on decisions rather than on formal
studies supporting decisions may actually facilitate the use of the classification for the artisan
mining sector at no detriment to the industrial sector. For example, there is no specific
requirement to have a feasibility study of the form usually generated for large scale projects in
order to assign quantities to F1. The key is that “sufficient” studies have been completed to
demonstrate feasibility of extraction. If the mine is currently in operation, for example, then the
estimated future recovery clearly satisfies the definition of F1.
47. The level of detail for reporting of artisan mining activities is a function of regulatory
requirements rather than the classification system. Draft UNFC-2009 can be applied at a very
high level or, by use of sub-classes, at a level of significant detail. This flexibility facilitates
mapping to the UNFC of commodity, country or institution classification systems, which are
designed to serve their specific needs and circumstances.
48. Examples of implementation in artisan mining could be included in commodity-specific

guidelines.
15. Classifying all resources on a common basis
49. A view was expressed that it is difficult to classify all mineral resources under a single
system due to the wide range of exploration activity and geological knowledge about individual
deposits. This is one reason for the structure of the UNFC, where it can be used to define classes
at a high level based on the primary categories, or further detail can be captured through the use
of sub-categories. It is recognized that different commodities may need separate specifications
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and guidelines. Different countries and institutions will use whichever classification system that
best serves their own needs and circumstances, and may also develop mapping modules to the
UNFC, on a voluntary basis and at their discretion.
16. Meeting local needs and avoiding frequent changes
50. For any classification system to be adopted locally, it must be able to meet the user’s
needs. This is a key point and a goal of the UNFC has been to provide a simple, generic system
that provides the basic framework for the classification of any resource.
51. It is a requirement that a classification system should not be subject to frequent changes.
The changes made to UNFC-2004 were a direct consequence of the desire to develop a
framework classification that could be applied to both minerals and fossil energy on the basis of
a common set of principles, aligned with widely used commodity specific classifications such as
the CRIRSCO Template and SPE-PRMS.
52. In contrast, it is recognized that guidelines would be expected to be updated regularly as

technological and commercial developments occur.
17. Explanatory notes to G1/G2/G3
53. A request was made for a change to the text in the explanatory note to G1/G2/G3 where
the word “must” had been used inappropriately. The wording has been modified in the revised
draft.
18. Discussion of developed/undeveloped sub-categories
54. In corporate reporting in the petroleum sector, a distinction is often made between those
quantities that can be recovered from wells and facilities that are already in place (i.e. the capital
investments have been made) and those that require further investments before they can be
recovered, even where they are part of the same development project. The potential to
accommodate this through the existing sub-categories of F1.1 and F1.2 should be investigated.
19. Definition of “total in place” using E categories
55. The draft UNFC-2009 is designed to capture all resources, so that a “material balance” can
be maintained between quantities initially located in situ, quantities that have already been
extracted, quantities that are forecast to be extracted by future development projects or mining
operations, and quantities that are (currently) considered to be unrecoverable. The ability to
combine classes to establish, for example, the “total in place” resource quantity, is an important
benefit of the flexibility of the system. This is the sort of issue that would be best handled in
specifications and guidelines (see paragraph 2).
20. Exclude exhausted resources from inventory
56. A suggestion was made that exhausted resources (being quantities that remain in situ, but
are rendered unrecoverable by the extraction process) should be excluded from the inventory and
incorporated with production, since they are “lost”. However, since these quantities have not
page 13
been extracted and remain in situ, it is considered more appropriate to designate them as
“additional quantities in place”, since it is conceivable that in some cases technological
developments may allow some of these quantities to be recovered in the future.
21. More detailed definition of G categories
57. Several submissions referred to the need for more specific definitions for the G categories
or explanation in guidelines to the UNFC (e.g. by reference to quantitative probability levels).
The use of very general terminology such as “high”, “moderate” and “low” in relation to the
level of confidence required could undoubtedly benefit from further specification and guidance.
However, it is not considered appropriate to incorporate more specific rules at a high level since
the underlying commodity-specific approaches are different and a single set of more specific
rules could not be adopted at a generic level. This is clearly an issue that is covered in the
consideration of specifications and guidelines (see paragraph 2).
22. Ensure E categories include economic and social viability
58. A need to explicitly link both economic and social viability to the E categories was
identified. This was addressed by providing a footnote to the definition of each of the three E
categories.
23. E3 contains sub-categories of a different nature
59. E3, as the “lowest” E category, is used to capture quantities that do not satisfy the
requirements of E1 (economic viability confirmed) or E2 (reasonable prospects for economic
extraction and sale in the foreseeable future). As such, E3 needs to incorporate all other
economic scenarios, which are defined as: planned for extraction but not available for sale (e.g.
used for on-site power generation); economic viability not yet determined; and economic
viability assessed as inadequate to satisfy E2.
24. Application to unconventional petroleum resources
60. Application of the UNFC to unconventional petroleum resources was identified as an

aspect that needs to be clarified, with a request that the system be enhanced by sub-classifying in
place quantities. The ability to further sub-divide categories is a recognized strength of the
UNFC and it should therefore be feasible to develop other classes that are useful for specific
needs or resource types. For example, category F4 could be sub-divided.
61. As discussed above, the sub-categories that have been defined in the revised draft UNFC
represent a compromise between those who have requested more sub-categories and those who
have requested fewer (or even none at all).
25. Text changes to UNFC and explanatory note
62. Several suggestions were made for specific text changes to the UNFC and the explanatory
note. These were all considered carefully and some have been adopted, based on the approach
outlined in paragraph 15.
page 14
26. Indicate users and purpose of proposed revised UNFC-2009
63. As set out in Section I of the revised draft of UNFC-2009, it has been designed to meet, to
the extent possible, the needs of applications pertaining to energy and mineral studies, resources
management functions, corporate business processes and financial reporting standards.
27. Subjective nature of E axis categories
64. A need to be more specific with respect to the definitions of the economic and social
conditions (E axis categories) was identified. This is an issue for all classification systems that
are not completely prescriptive in this respect (e.g. SEC reporting for petroleum) and would
ideally be dealt with through specifications and guidelines (see paragraph 2).
28. Assessments made for different purposes
65. While there will clearly be a need for different levels of detail depending on the purpose
for which an assessment is made, it should not require the fundamental classification structure to
be different. There may be a need for specifications and/or guidelines on how to address the
different perspectives of governments and companies. The issue of timing of extraction is
particularly important in this context.
66. Where corporate reserve reporting is considered to understate the full (longer-term)
recovery from a deposit (as mentioned in one submission), additional quantities may be assessed
by government and added to the quantities that are reported by the companies in order to better
represent the estimated ultimate potential. Geoscience Australia provided a mapping of its
system to the UNFC and highlighted its use of the term Economic Demonstrated Resources
(EDR) to capture future longer term potential, incorporating additional resources beyond that
found in company reserve/resource reports. Handling such a situation with Draft UNFC-2009 is
extremely straightforward, because of (a) its project-based approach and (b) its flexibility in
terms of defining classes by combining or sub-dividing individual categories. EDR would reflect
a combination of categories and could be defined as a different class that is directly relevant to
resources management functions, but would not be used in business management processes.
67. Examples could be developed to illustrate how such issues can be dealt with using the
revised UNFC.
29. Reference to Class 113
68. Under the CRIRSCO Template and related minerals classifications, in contrast to
petroleum classification systems such as SPE-PRMS, there are no “possible” reserves and hence
there would be no equivalent to Draft UNFC-2009 Class 113. It has been stated that such a class
is “not acceptable” for mineral reserves. However, it is noted that the USGS (for example) refers
to “inferred reserves” in its classification system1, which would align with UNFC Class 1132,
indicating that this class is used for solid minerals in certain circumstances. The usage of this
1
http://minerals.usgs.gov/minerals/pubs/mcs/2007/mcsapp07.pdf
2
http://www.unece.org/energy/se/pdfs/UNFC/oct07/TimKlett_USGS.pdf
page 15
Class for solid minerals can also be found in countries with classification systems based on the
McKelvey Box, such as Turkey.
69. A key attribute of the UNFC is its ability to capture resource estimates under any
combination of E, F and G categories that is theoretically meaningful. Draft UNFC-2009
explicitly states that “there are no explicit restrictions on the possible combinations of E, F and G
categories or sub-categories”, and it would seem to be inappropriate to impose any commodity-
specific restrictions at a generic level, particularly as there is overlap between the minerals and
petroleum sectors (e.g. oil sands mining).
70. A distinction must be made between providing a system that allows all possible
combinations to be used where relevant (including 113), and the possible imposition of stock
exchange or other disclosure rules that preclude public reporting of such estimates by companies.
If such a restriction were considered to be appropriate in the context of public-domain corporate
reporting of solid minerals, for example, it would be appropriately addressed in commodity-
specific specifications or in the rules for disclosure as established by the regulatory body.
71. It is important that the classification has sufficient granularity to provide any information
that may be appropriate for public disclosure, but it is not a function of the classification to
determine what information should be disclosed (or to whom or when it should be disclosed).
Except where enforced/constrained by regulation, public disclosure of such information is the
sole prerogative of the owner of the information.
30. E axis and terminology in Figure 3
72. A comment was received that although no sub-categories were now defined for E2, it still
appeared in relation to two different sub-classes in Figure 3. A class or sub-class is uniquely
defined by a specific combination of E, F and G categories/sub-categories. Hence, only one
category (axis) designation need be different to define a different sub-class. Both sub-classes of
“development pending” and “development on hold” must satisfy the definition of E2 (previously
they both aligned with E2.1), but are distinguished by their F axis designation.
31. Distinction between F4 and potentially commercial
73. There was some ambiguity noted between “potentially commercial projects” and
“additional quantities in place”, which has been addressed by modifying the wording used in
footnotes f and g to Figure 2 of the UNFC. The primary distinguishing features between the
classes are: potentially commercial projects have “reasonable prospects for eventual economic
extraction”; non-commercial projects are technically (theoretically) feasible but do not have
“reasonable prospects for eventual economic extraction”, i.e. they are not expected to become
economically viable in the foreseeable future; and additional quantities in place are those
quantities for which no technically feasible extraction project can be defined at this time. This is
an issue that could be further clarified through the use of specifications and guidelines (see
paragraph 2).
32. Add “undiscovered” to “potential deposit”
74. There was some discussion within the MTF regarding the expression “discovered” and it
page 16
was concluded that although the term is well-defined and understood in petroleum, it was
sometimes less definitive with respect to a mineral deposit. For this reason, the expression
“potential deposit” has been used, including in the definition of G4, without reference to
discovered/undiscovered. A suggestion for a glossary of terms was also received and this could
help to address this use of terminology (see Section III.43).
33. Collaboration with International Energy Statistics on terminology
75. The potential benefit of collaboration with the International Energy Statistics
(InterEnerStat) project regarding terminology is noted. Since InterEnerStat is still developing
definitions, it would be appropriate to ensure that they are kept advised of the development of
Draft UNFC-2009 and, if a glossary of terms is to be developed, it should be aligned with their
definitions where possible.
34. Definition of non-sales production
76. Non-sales production is common in the petroleum sector where produced gas is used for
on-site power generation purposes (“fuel gas”). There may also be “losses” in the production
processing system such as flaring of gas. Since the quantities produced at the well-head (where
the oil/gas reaches the surface) may differ significantly from the amounts actually sold from the
production facilities, there is a need to distinguish between sales quantities and non-sales
quantities.
35. Assurance of reliability of estimates
77. A question was raised regarding the reliability of estimates made under the UNFC and how
this would be assured. However, the Ad Hoc Group of Experts is only responsible for providing
the classification system itself and is not in any way involved with estimating and auditing of
resource quantities that have been classified under the UNFC.
36. Tracking of changes to estimates
78. Tracking of changes to reserve/resource estimates on an annual basis is very useful

statistical information and is widely used in public disclosure documents for the benefit of
analysis and investors. The UNFC provides a classification system which, if used for estimating
and reporting purposes on a regular basis, would provide information regarding changes to
resource estimates. However, the usefulness of the data would depend on the detail and
frequency of reporting, which is not a function of the classification system or a responsibility of
the Ad Hoc Group of Experts.
37. Requirement for detailed breakdown of production
79. The usefulness of classifying separately the component parts of production (sales, flaring,
re-injection, own use, etc.) would provide useful statistical information. This facilitates material
balance accounting, energy efficiency assessments and emissions management. However, this is
largely a petroleum issue and sub-dividing beyond sales/non-sales is considered to be
inappropriate at a generic level. At the commodity-specific level, further sub-divisions would
certainly be possible and this should be addressed in specifications and/or guidelines.
page 17
38. Application of the United Nations Framework Classification

for Fossil Energy and Mineral Resources to uranium
80. This issue was considered by the MTF (ECE ENERGY SERIES No. 33 and
ECE/ENERGY/71). It was understood that the CRIRSCO Template can be, and is, applied to
uranium. Since the Template was mapped to the UNFC, there should be no problem applying the
UNFC directly for classifying uranium resources. This application should be clarified through
commodity-specific specifications and/or guidelines, and also demonstrated through examples
(see paragraph 2). The International Atomic Energy Agency (IAEA) stated in its note to the
Director of the Sustainable Energy Division dated 28 February 2008 that, in a comparison of the
Nuclear Energy Agency (NEA)/IAEA uranium resource classification scheme with the UNFC-
2004, “in this sense [i.e. the fact that the uranium system was not developed for commercial
reporting] the two classification schemes are fundamentally different”. The letter also noted that
“some members” of the uranium group felt that the UNFC-2004 “has far too many categories for
straightforward national/international reporting” and the “UNFC’s use of separate economic and
feasibility axes adds to both the number of categories and the confusion, since these are not
independent variables”. Nevertheless, the IAEA was able to present a provisional mapping of its
system to the UNFC-2004 at the fifth session of the Ad Hoc Group of Experts, with the caveat
that “UNFC correlation with NEA/IAEA and national classification systems is still under
consideration”. Moreover, the IAEA has not submitted any comments on the Draft UNFC-2009
during the two months period open for public comments or at the sixth session of the Ad Hoc
Group of Experts. It is also worthy of note that the Draft UNFC-2009 is greatly simplified
relative to UNFC-2004.
39. Different systems for different needs
81. A view was expressed “that there are, and should continue to be, various and different
classification systems, responding to various and specific needs” and that the generic
terminology of the UNFC “would allow easy translation and better understanding among
existing and future classifications and across commodity boundaries, through appropriate
mapping modules”. Since the UNFC is not mandatory, preparers of resource estimates can
continue to use any classification system they like (except where constrained by regulation). As
noted, mapping of these various existing classification systems to the UNFC can provide an
indication of similarities between them, as well as highlighting differences. Mapping modules
can illustrate the relationships between the different classification systems and can be used to
translate between them where the systems are based on common principles. This approach has
been used to map SPE-PRMS and the CRIRSCO Template to the UNFC. The MTF recognised
that the mapping of UNFC to other classifications would be easier if the UNFC definitions were
simplified. It has also been used under the International Accounting Standards Board (IASB)
framework to map SPE-PRMS and the CRIRSCO Template. Mapping provides a tool that can
lead to harmonization of terminology and to stimulate convergence among classification
systems, through a voluntary, merit-driven, bottom-up approach. However, what mapping cannot
do is provide assurance that estimates made under those different systems are not significantly
different.
82. The following two examples illustrate the lack of comparability between similar
classification systems that are based on essentially the same definition of proved reserves, but
have different (i.e. their own) specifications and guidelines.
page 18
83. Firstly, TNK-BP published its audited proved petroleum reserves in 2004 under both the
SEC definition and the SPE definition. The actual wording of the two definitions of proved
reserves is very similar, but the specifications are significantly different. The estimated proved
reserves of the company were quoted as 4.3 billion barrels of oil equivalent (bn boe) under the
SEC system and 9.0 bn boe under the SPE system.3
84. Secondly, BP published its 2003 proved petroleum reserves estimates under both the SEC
definition and the United Kingdom Statement of Recommended Practice (SORP) definition. In
this case, the wording of the two definitions is virtually identical and yet BP’s United Kingdom
proved gas reserves were reported as being 17 per cent higher under the SEC definition than
under SORP.4
85. In both cases, the material differences (and hence lack of comparability) resulted from
differences between the specifications and guidelines of the various classifications. While none
of the figures above is wrong, these two examples are a clear illustration of the real world. Even
for one commodity, petroleum, and for the largest economy with 150 years of petroleum history,
there is a view that there is still a need for “various and different classification systems,
responding to various and specific needs”. Since then, however, both the SEC and SPE systems
have been updated and are now much more closely aligned, while SORP has largely been
replaced by SPE-PRMS. This shows that, while these systems remain different, a process of
harmonisation/convergence is underway, led by users, based on merit and undertaken on a
voluntary basis. A UNFC with its own specifications and guidelines would simply provide
another estimate, different than those mentioned above, unless it adopted the specifications and
guidelines of one of the quoted systems. These two examples clearly illustrate the impact of
using systems that are based on different specifications and guidelines. Mapping modules could
be used to illustrate the similarities and differences between these systems, and hence highlight
the particular reasons for these substantial differences in estimates that were all quoted as
“proved reserves”.
86. The development of the UNFC since 1992 has been driven by a desire to provide a
framework classification that could lead to a harmonization of terminology. The UNFC has been
endorsed by ECE and ECOSOC, which while welcoming the ECE endorsement, invited Member
States of the United Nations, international organizations and the regional commissions to
consider taking appropriate measures for ensuring worldwide application of the UNFC.
Nevertheless, its application is entirely optional, and countries, industry and institutions will
continue to use whichever classification systems they consider to be the most suitable for their
needs.
40. United Nations Framework Classification

for Fossil Energy and Mineral Resources governance structure
87. A view was expressed that the current Ad Hoc Group of Experts structure was adequate for
future governance of the UNFC. As this issue is not within the mandate of the RTF, it will not be
3
http://www.tnk-bp.com/press/releases/2004/6/2/
4
http://www.bp.com/liveassets/bp_internet/globalbp/STAGING/global_assets/downloads/20-
F_Difference_Table_28Jun04.pdf
page 19
discussed further here. However, this issue is intertwined with the issue of revising UNFC-2004
(see, for example, III.6) and is on the agenda for consideration at the seventh session of the Ad
Hoc Group of Experts.
41. United Nations Framework Classification for Fossil Energy and Mineral
Reserves and Resources 2009 for United Nations Economic and Social Council approval
88. A recommendation was made that, as with UNFC-2004, the Draft UNFC-2009 should be
submitted to ECOSOC for its approval, on the basis that, UNFC-2004 being a constituting text
whose legitimacy is derived from an ECOSOC Resolution, any revision would have to follow
the same process, and not to do so would deny the 132 Member States of the United Nations that
are not ECE members the right to consider the proposed revisions to UNFC-2004.
89. In the report of the sixth session of the Ad Hoc Group of Experts, the Director of the
Sustainable Energy Division “noted that the potential revision of the UNFC could be seen as a
concerted effort to implement ECOSOC Resolution 2004/233, whereby ECOSOC invited the
United Nations Member States, international organizations and regional commissions to consider
taking appropriate measures for ensuring worldwide application of the UNFC. The revised Draft
UNFC-2009 is a much more user-friendly piece of work that now also benefits from the efforts
undertaken by the Mapping Task Force and its recommendations. The Director provided
clarification that, in view of the above, and on the background of the due process that had been
completed, if the revised Draft UNFC-2009 or slightly modified version thereof was accepted
there would be no requirement to return to ECOSOC to request a new resolution. This had been
confirmed by the ECE Executive Office and the Legal Office of the United Nations Office at
Geneva”.
90. As this is an issue that was not within the mandate of the RTF, it will not be discussed
further here.
42. Sub-division of development pending
91. A proposal that the two sub-classes of development pending should be combined was
accepted and the revised draft UNFC-2009 has been modified to reflect this suggestion.
43. Glossary of terms for United Nations Framework Classification

for Fossil Energy and Mineral Reserves and Resources 2009
92. A recommendation was made that a glossary of terms should be developed. This would
facilitate application of the revised UNFC and should be considered in the future.
44. Unpublished comments
93. Several email comments were received that were not directly relevant, were forwarded by
others, and/or were received too late for posting to the ECE website:
(a) Anibal Martinez, World Petroleum Council, helpfully highlighted some errors in the
bibliography, which have now been corrected, and supported the inclusion of the word
“reserves” in the title of the document.
page 20
(b) Michael O’Brien, AngloGold Ashanti Limited, provided some comments on the
MTF report in relation to the mapping of the CRIRSCO Template to the UNFC. Since this
mapping will need to be reconsidered once a final UNFC-2009 is completed, it is recommended
that the comments be considered at that time.
(c) Alan Clegg, TWP Eurasia A.S., submitted comments regarding the practical
application of the UNFC, particularly in the context of financial reporting for solid minerals. The
essential goal of consistent application (for any classification system) highlights the requirement
for appropriate specifications and guidelines to be provided.
IV. PROPOSED CHANGES TO THE DRAFT REVISED UNITED NATIONS

FRAMEWORK CLASSIFICATION FOR FOSSIL ENERGY AND MINERAL
RESERVES AND RESOURCES 2009 AND EXPLANATORY NOTE
94. After due consideration of the many constructive comments received, the RTF has
prepared a revised draft UNFC-2009 for the consideration of the Ad Hoc Group of Experts at its
seventh session. The Draft UNFC-2009 is accompanied by an explanatory note, which explains
in some detail the issues contained in this revised Classification. It does not form part of the
classification itself. The Draft UNFC-2009 and accompanying explanatory note is published in
document ECE/ENERGY/GE.3/2009/L.5.
page 21
Annex I
COMMENTS RECEIVED
Source
No (ctrl+click to Date Requested changes or comments RTF
see actual (very brief summary only) response
submission)
1 Rafael 8 December 2008 No changes None
Sandrea, PhD required
2 CRIRSCO 12 December Limited or no specifications and See III.2
Board 2008 guidelines in UNFC itself
Add reference to mapping See III.3
document
Remove reference to financial See III.4
reporting
Remove or revise text on use of See III.5
term "reserves"
Add reference to SPE/CRIRSCO See III.6
re maintenance
3 Ken Mallon 5 January 2009 Improve Figure 1 See III.7
Make Explanatory Note an See III.8
appendix of UNFC
Expand G4 to account for See III.9
uncertainty
Text on use of term "reserves" See III.5
excellent and critical to keep in
4 William Prast, 7 January 2009 Remove or revise text on use of See III.5
PhD term "reserves"
5 State 27 January 2009 Add other classes to Figure 1 See III.10
Commission of Remove references to "project" in See III.11
Ukraine on Figure 1
Mineral Remove Figures 2 and 3 See III.12
Resources Exclude definitions of sub- See III.13
categories
6 Federation of 4 February 2009 Difficult for small mines to adopt See III.14
Indian Mineral commercial-based system
Industries Unjustified for small mines to See III.14
(FIMI) generate data in UNFC-2009
format
Have adopted UNFC-1997 and See III.1
difficult to change now
Difficult to classify all resources See III.15
on common basis
Classification needs to meet local See III.16
needs and frequent changes
should be avoided
page 22
7 SPE Oil and 4 February 2009 Improved from previous versions None
Gas Reserves and easily mapped to PRMS required
Committee Highlighted error in footnote Fixed
labelling
Revise text in explanatory notes to See III.17
G1/G2/G3 definitions
Add footnote regarding use of G4 See III.9
sub-categories and reference to
risk
Add discussion regarding See III.18
developed/undeveloped sub-
categories used in petroleum
8 Commission of 4 February 2009 Requirement for more detailed See III.2
Mineral application guidelines and
Resources, examples
Ministry of Definition of "total in place" for See III.19
Environment - mineral resources using E
Poland categories
Exclude exhausted resources from See III.20
inventory (include in production)
More detailed definition of G See III.21
categories or explanation in
guidelines
9 AAPG 5 February 2009 Handle expansion of G4 to See III.9
account for uncertainty through
mapping or by further explanatory
notes
Ensure both economic and social See III.22
viability are captured in
definitions of E categories
10 Russian 6 February 2009 Remove/reduce number of sub- See III.13
Working categories and combine F4 with
Group F3
E3 contains sub-categories of See III.23
different nature
Reinstate E2.2 sub-category. See III.1
categories
11 World Energy 6 February 2009 Welcome degree of simplicity and None
Council clarity. No specific comments. required
12 Energy 6 February 2009 Clarification of application to See III.24
Resources unconventional petroleum
Conservation resources.
Board of
Alberta,
Canada
page 23
13 Trevor Ellis 6 February 2009 Text changes to sections I, II, III See III.25
CPG-AIPG, and Annex II.
CMA-AIMA, Add labelling to Figure 1. See III.7
CGA(CO), Preference for 3D presentation – See III.12
FAusIMM(CP) some difficulty to grasp 2D
Figures 2 and 3.
14 StatoilHydro 6 February 2009 Indicate intended users and See III.26
Ad Hoc Group purpose of UNFC-2009
of Experts Add examples in explanatory note See III.2
or in other documentation
categories
Subjective nature of E axis See III.27
15 Geoscience 13 February 2009 Need for additional explanations See III.2
Australia to ensure consistent application
Need to accommodate See III.28
assessments made for different
purposes
Reference to class 113 not being See III.29
appropriate for mineral reserves
Possible inclusion of, or reference See III.3
to, mapping documents
Some confusion over changes to E See III.30
axis and terminology in Figure 3
Unclear about distinction between See III.31
F4 and Potentially Commercial
Projects
Expansion of label "Potential See III.32
Deposit" to include
"(undiscovered)"
Retention of term "reserves" since See III.5
has well established definition for
minerals
page 24
16 Atle Tostensen, 20 February Recommendation to refer to work of See III.33

Statistics Norway 2009 InterEnerStat regarding harmonization
and Oslo Group of terminology
on Energy Question regarding definition of non- See III.34
Statistics sales production
Question regarding assurance of See III.35
reliability of estimates
Tracking of changes on annual basis See III.36
Requirement for breakdown between See III.37
sales, flaring, re-injection, own use, etc.
17 Geoscience 20 February Different levels of detail between See III.28
Australia – Ian 2009 commercial reporting and national
Lambert (inventory) reporting
Different timeframe between See III.28
commercial reporting and national
(inventory) reporting
Application of UNFC to uranium See III.38
classification
18 OPEC Secretariat 17 March 2009 Different classification systems
responding to various and specific See III.39
needs
Add reference to mapping report in
See III.3
UNFC text
Add further mapping modules over
time and apply specifications and See III.39
guidelines of mapped system
No need to develop specifications and
See III.2
guidelines for UNFC
No need to change structure of Ad Hoc
Group of Experts for UNFC See III.40
governance
UNFC-2009 should be submitted to UN
See III.41
ECOSOC
No need to eliminate use of the term
See III.5
"reserves"
No need for two sub-classes of
See III.42
development pending (Figure 3)
Expand G4 to account for uncertainty See III.9
Suggested text changes to UNFC-2009 See III.25
and Explanatory Note (supplied as
edited draft text showing track changes)
page 25
19 Additional 25-27 Preference for 2D version of UNFC- See III.12

comments at the March 2009 2009
Sixth Session of Question regarding why quantities See III.34
the Ad Hoc would be extracted but not sold
Group of Experts Need to show differences between See Annex II
(no written UNFC-2009 and previous versions
submissions Need for examples/guidelines See III.2
available and Delete "practical" from paragraph 4 of See III.25
only “new” UNFC-2009
comments Need for a glossary of terms See III.43
included here)
page 26
Annex II
UNITED NATIONS FRAMEWORK CLASSIFICATION FOR FOSSIL ENERGY AND

MINERAL RESOURCES 2004 DEFINITIONS AND PROPOSED DEFINITIONS FOR
UNITED NATIONS FRAMEWORK CLASSIFICATION FOR FOSSIL ENERGY AND
MINERAL RESERVES AND RESOURCES 2009
Cat. 2004 Coal, uranium and 2004 Petroleum Proposal for revised
other solid minerals UNFC definitions
E1 Quantities, reported in Production is justified under Extraction and sale has been
tonnes/volume with the technological, economic, confirmed to be
grade/quality, demonstrated environmental and other economically viable.5
by means of a pre-feasibility relevant commercial
study, feasibility study or conditions, realistically
mining report, in order of assumed or specified at the
increasing accuracy, that time of the estimation
justify extraction under the
technological, economic,
environmental and other
relevant commercial
conditions, realistically
assumed at the time of the
determination.
E1.1 Extraction is justified under Production is justified under Extraction and sale is
competitive market normal economic economic on the basis of
conditions. Thus, the average conditions. Assumptions current market conditions
value of the commodity regarding future economic and realistic assumptions of
mined per year must be such conditions may be future market conditions.
as to satisfy the required constrained by regulation.
return on investment.
E1.2 Exceptional (conditional) Exceptional economic Extraction and sale is not

economic quantities are at quantities are at present not economic on the basis of
present not economic to economic to produce under current market conditions
extract under normal normal economic and realistic assumptions of
economic conditions. Their conditions. Their production future market conditions,
extraction is made possible is made possible through but is made viable through
through government subsidies government subsidies and/or government subsidies and/or
and/or other considerations. other considerations. other considerations.
5
The phrase “economically viable” encompasses economic (in the narrow sense) plus other
relevant “market conditions”, and includes consideration of prices, costs, legal/fiscal framework,
environmental, social and all other non-technical factors that could directly impact the viability
of a development project.
page 27
E2 Quantities, reported in Production is not justified Extraction and sale is

tonnes/volume with under the technological, expected to become
grade/quality, demonstrated economic, environmental economically viable in the
by means of a pre-feasibility and other relevant foreseeable future.
study, feasibility study or commercial conditions,
mining Report, in order of realistically assumed at the
increasing accuracy, not time of the estimation, but
justifying extraction under the which may become justified
technological, economic, in the future.
environmental and other
relevant commercial
conditions, realistically
assumed at the time of the
determination, but possibly so
in the future.
E2.1 Marginal economic quantities Marginal economic No sub-categories defined.

are quantities that at the time quantities are quantities that [Comment: E2.1 would now
of determination are not at the time of determination be classified as E2, i.e. no
economic, but border on are not economic, but material change]
being so. They may become border on being so. They
economic in the foreseeable may become economic in
future as a result of changes the foreseeable future as a
in technological, economic, result of changes in
environmental and/or other technological, economic,
relevant commercial environmental and/or other
conditions. relevant commercial
conditions.
E2.2 Sub-marginal economic Sub-marginal economic No sub-categories defined.

quantities are quantities that quantities are quantities that [Comment: E2.2 would now
would require a substantially would require a be re-classified as E3.3]
higher commodity price or a substantially higher
major cost-reducing advance commodity price or a major
in technology to render them cost-reducing advance in
economic. technology to render them
economic.
E3 Quantities, reported in Quantities that are of Extraction and sale is not

tonnes/volume with undetermined economic expected to become
grade/quality, estimated by viability or are of no economically viable in the
means of a geological study economic interest foreseeable future or
to be of intrinsic economic (unrecoverable). evaluation is at too early a
interest. Since the geological stage to determine economic
page 28
study includes only a viability.

preliminary evaluation of
economic viability, no
distinction can be made
between economic and
potentially economic. These
resources are therefore said to
lie in the range of economic
to potentially economic.
Generally only in-situ
quantity figures are reported.
E3.1 Not defined. Quantities that will be Quantities that are forecast
produced but not sold. to be extracted, but which
will not be available for
sale.
E3.2 Not defined. Economic viability Economic viability of

undetermined. extraction cannot yet be
determined due to
insufficient information
(e.g. during the exploration
phase).
E3.3 Not defined. Additional quantities On the basis of realistic

remaining in-place, i.e. the assumptions of future
quantities initially in-place market conditions, it is
less the produced and currently considered that
remaining recoverable there are not reasonable
quantities. prospects for economic
extraction and sale in the
foreseeable future.
F1 Mining Report and/or Development and/or Feasibility of extraction by a

Feasibility Study has production plans have defined development project
demonstrated extraction of demonstrated production of or mining operation has
the reported quantities to be the reported quantities to be been confirmed.
justified. justified.
Cost data must be reasonably

accurate, and no further
investigations should be
necessary to make the
investment decision. The
page 29
information basis associated

with this level of accuracy
comprises the reserve figures
based on the results of
detailed exploration,
technological pilot tests and
capital and operating cost
calculations such as
quotations of equipment
suppliers.
F1.1 A Mining Report is The development project is Extraction is currently

understood as the current completed and the facilities taking place.
documentation of the state of are producing.
development and exploitation
of a deposit during its
economic life including
current mining plans. The
operator of the mine
generally makes it. The study
takes into consideration the
quantity and quality of the
minerals extracted during the
reporting time, changes in
categories of economic
viability due to changes in
prices and costs, development
of relevant technology, newly
imposed environmental or
other regulations, and data on
exploration conducted
concurrently with mining.
It presents the current status

of the deposit, providing a
detailed and accurate, up-to-
date statement on the reserves
and the remaining resources.
F1.2 Not defined. Development projects for Capital funds have been
recovery of a commodity committed and
are committed when firm implementation of the
commitments have been development project or
made for the expenditures mining operation is
page 30
and activities needed to underway.

bring a discovered
accumulation to the
production stage.
Undeveloped projects are

committed only when it can
be clearly demonstrated that
there is intent to develop
them and bring them to
production. Intent may be
demonstrated with funding /
financial plans, declarations
of commerciality, regulatory
approvals and satisfaction of
other conditions that would
otherwise prevent the
project from being
developed and brought to
production.
These commitments should

be unconditional, except for
timing that may be
dependent on the
development of prior
committed projects. An
example of this would be
where production is
dedicated to a long-term
sales contract and will only
be developed as and when
the capacity is required to
satisfy the contract.
F1.3 A Feasibility Study assesses Development plans have Sufficiently detailed studies
in detail the technical demonstrated production of have been completed to
soundness and economic the reported quantities to be demonstrate the feasibility
viability of a mining project, justified, but commitments of extraction by
and serves as the basis for the to carry out the development implementing a defined
investment decision and as a works have not yet been development project or
bankable document for made. mining operation.
project financing. The study
constitutes an audit of all
page 31
geological, engineering,
environmental, legal and
economic information
accumulated on the project.
Generally, a separate
environmental impact study is
required.
F2 A Pre-feasibility Study Development and Feasibility of extraction by a

provides a preliminary production of recoverable defined development project
assessment of the economic quantities has not been or mining operation is
viability of a deposit and justified, due to conditions subject to further evaluation.
forms the basis for justifying that may or may not be
further investigations fulfilled.
(detailed exploration and
feasibility study). It usually
follows a successful
exploration campaign, and
summarises all geological,
engineering, environmental,
legal and economic
information accumulated to
date on the project.
The pre-feasibility study

addresses the items listed
under the feasibility study,
although not in as much
detail.
F2.1 Not defined. Activities are ongoing to Project activities are

justify development and ongoing to justify
production in the development in the
foreseeable future. foreseeable future.
F2.2 Not defined. Activities to justify Project activities are on hold

development and production and/or where justification as
are unclarified or a commercial development
temporarily suspended. may be subject to significant
delay.
F2.3 Not defined. Investigations have There are no current plans

indicated that development to develop or to acquire
and production will not be additional data at the time
page 32
technically justified. due to limited potential.
F3 A Geological Study is an Project evaluation is Feasibility of extraction by a

initial evaluation of economic incomplete or lacks defined development project
viability. This is obtained by sufficient definition to or mining operation cannot
applying meaningful cut-off establish feasibility. This be evaluated due to limited
values for grade, thickness, includes projects aiming to technical data.
depth, and costs estimated identify the presence of
from comparable mining petroleum accumulation(s)
operations. or projects to improve
recovery.
Economic viability
categories, however, cannot
in general be defined from the
Geological Study because of
the lack of detail necessary
for an Economic viability
evaluation. The resource
quantities estimated may
indicate that the deposit is of
intrinsic economic interest,
i.e. in the range of economic
to potentially economic.
A Geological Study is
generally carried out in the
following four main stages:
reconnaissance, prospecting,
general exploration and
detailed exploration (as
defined below). The purpose
of the geological study is to
identify mineralisation, to
establish continuity, quantity,
and quality of a mineral
deposit, and thereby define an
investment opportunity.
F4 Not defined. Not defined. No development project or

mining operation has been
identified.
G1 Detailed exploration involves Quantities that are estimated Quantities associated with a
the detailed three- to be recoverable from a known deposit that can be
dimensional delineation of a known (drilled) estimated with a high level
page 33
known deposit achieved accumulation, or part of a of confidence.

through sampling, such as known accumulation, where
from outcrops, trenches, sufficient technical data are
boreholes, shafts and tunnels. available to establish the
Sampling grids are closely geological and reservoir
spaced such that size, shape, production performance
structure, grade, and other characteristics with a high
relevant characteristics of the level of confidence.
deposit are established with a
high degree of accuracy. Quantities in this category
Processing tests involving that are associated with a
bulk sampling may be development project (i.e.
required. A decision on F1) may be subdivided to
whether to conduct a reflect their development
feasibility study can be made and producing status.
from the information
provided by detailed
exploration.
G2 General Exploration involves Quantities that are estimated Quantities associated with a
the initial delineation of an to be recoverable from a known deposit that can be
identified deposit. Methods known (drilled) estimated with a moderate
used include surface accumulation, or part of a level of confidence.
mapping, widely spaced known accumulation, where
sampling, trenching and sufficient technical data are
drilling for preliminary available to establish the
evaluation of mineral quantity geological and reservoir
and quality (including production performance
mineralogical tests on characteristics with a
laboratory scale if required), reasonable level of
and limited interpolation confidence.
based on indirect methods of
investigation. The objective is
to establish the main
geological features of a
deposit, giving a reasonable
indication of continuity and
providing an initial estimate
of size, shape, structure and
grade. The degree of accuracy
should be sufficient for
deciding whether a Pre-
feasibility Study and detailed
exploration are warranted.
page 34
G3 Prospecting is the systematic Quantities that are estimated Quantities associated with a
process of searching for a to be recoverable from a known deposit that can be
mineral deposit by narrowing known (drilled) estimated with a low level
down areas of promising accumulation, or part of a of confidence.
enhanced mineral potential. known accumulation, where
The methods utilised are sufficient technical data are
outcrop identification, available to establish the
geological mapping, and geological and reservoir
indirect methods such as production performance
geophysical and geochemical characteristics with a low
studies. Limited trenching, level of confidence.
drilling, and sampling may be
carried out. The objective is
to identify a deposit that will
be the target for further
exploration. Estimates of
quantities are inferred, based
on interpretation of
geological, geophysical and
geochemical results.
G4 A Reconnaissance study Quantities that are estimated Estimated quantities

identifies areas of enhanced to be recoverable from an associated with a potential
mineral potential on a un-drilled accumulation, on deposit, based primarily on
regional scale based primarily the basis of inferred indirect evidence.
on results of regional geological and reservoir
geological studies, regional production performance
geological mapping, airborne characteristics.
and indirect methods,
preliminary field inspection,
as well as geological
inference and extrapolation.
The objective is to identify
mineralised areas worthy of
further investigation towards
deposit identification.
Estimates of quantities should
only be made if sufficient
data are available and when
an analogy with known
deposits of similar geological
character is possible, and then
only within an order of
magnitude.
page 35
In the case of uranium,

reconnaissance studies
identify speculative
resources, defined as in-situ
resources. This is uranium
that is thought to exist,
mostly on the basis of indirect
evidence and geological
extrapolations, in deposits
discoverable with existing
exploration techniques. The
location of deposits envisaged
in this category could
generally be specified only as
being somewhere within a
given region or geological
trend.
----------

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UNITED

ECONOMIC COMMISSION FOR EUROPE

COMMITTEE ON SUSTAINABLE ENERGY

Ad Hoc Group of Experts on Harmonization of

UNITED NATIONS FRAMEWORK CLASSIFICATION FOR FOSSIL

32. Add “undiscovered” to “potential deposit” ................................... 74 15

IV. Proposed Changes to the Draft Revised United Nations Framework

I. Comments Received ............................................................................... 21

I. THE REVISION PROCESS

(a) 2005 – New Russian Federation Classification;

(c) 2007 Society of Petroleum Engineers/World Petroleum Congress/American

12. This report summarizes the general considerations of the RTF.

II. GENERAL CONSIDERATIONS

III. SPECIFIC COMMENTS

1. Users of earlier versions of the UNFC

2. Specifications and guidelines

3. Add reference to Mapping Task Force report

4. Remove reference to financial reporting

5. Use of the term “reserves”

6. Maintenance of the Classification

35. The need to add clarity to Figure 1 was accepted.

8. Reverse sequence of the United Nations Framework Classification for Fossil

9. Expand G4 to account for uncertainty

10. Show additional classes on Figure 1

11. Remove references to “project” in Figure 1

12. Two-dimensional and three-dimensional representations of the United Nations

13. Exclude definitions of sub-categories

14. Artisan mining considerations

48. Examples of implementation in artisan mining could be included in commodity-specific

15. Classifying all resources on a common basis

16. Meeting local needs and avoiding frequent changes

52. In contrast, it is recognized that guidelines would be expected to be updated regularly as

17. Explanatory notes to G1/G2/G3

18. Discussion of developed/undeveloped sub-categories

19. Definition of “total in place” using E categories

20. Exclude exhausted resources from inventory

21. More detailed definition of G categories

22. Ensure E categories include economic and social viability

23. E3 contains sub-categories of a different nature

24. Application to unconventional petroleum resources

60. Application of the UNFC to unconventional petroleum resources was identified as an

25. Text changes to UNFC and explanatory note

26. Indicate users and purpose of proposed revised UNFC-2009

27. Subjective nature of E axis categories

28. Assessments made for different purposes

29. Reference to Class 113

30. E axis and terminology in Figure 3

31. Distinction between F4 and potentially commercial

32. Add “undiscovered” to “potential deposit”

33. Collaboration with International Energy Statistics on terminology

34. Definition of non-sales production

36. Tracking of changes to estimates

78. Tracking of changes to reserve/resource estimates on an annual basis is very useful

37. Requirement for detailed breakdown of production

38. Application of the United Nations Framework Classification

39. Different systems for different needs

40. United Nations Framework Classification

42. Sub-division of development pending

43. Glossary of terms for United Nations Framework Classification