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A number of clients have a $0 fee (TPA Status) set up in the Maint Rates tab and added to User Wells.
The Third Party Invoicing Process now picks up the $0 fee and will include it on the invoice and vouchers, unless the fee is manually excluded from the process.
P2 invites clients to re-visit their business process for setting up $0 fees, as the original reasons for doing this may no longer exist due to the redesign of the User tab and/or the introduction of the Third Party Update Utility.
Below are some possible reasons and alternative suggestions for setting up your user wells. We welcome feedback: If you have a reason not listed below, or the suggested setup does not work, please let us know by logging a help desk ticket.
| Suggestions for Setup on User Well Tab |
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| Suggestions for Setup on User Well Tab |
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Third Party charge is no longer applicable. | Change the User Well (File) Status to an Inactive Status. |
No fee associated with the User Well Eg: Reciprocal Agreements | For Update Utility:
Select the Exclude from Utility check box so that the User well is not included in the Update Utility. For Invoicing: Option 1: Remove the TPA Status from the User Well (i.e. delete the Maintenance Fee). Create a new User Well (File) Status type, i.e. NO CHARGE or RECIPROCAL, which indicates Third Party fees are not charged. OR Option 2: Set the TPA Status Start Date to Null.
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Multi-event well, with all events added as separate user wells | Update Utility:
Add licence number to first event. RU Update Utility is designed to select the highest precedence TPA Status (typically Producing) from all events associated with the licence. For example, if any of the events is producing, that well will still be flagged as Producing by the Utility.
Inactivate the other events. Invoicing:
To avoid confusion on the invoice (i.e. charging a producing fee for a shut-in first event), the first event well could be changed to a Location type on the User Well tab or the Description field could be updated with a note, which can then be included on the invoice by selecting the ‘Include TPA Description’ box when creating the invoice. |
Multi-well pad where Third Party is charged to only one well | Assumption: All wells have same operator and are on same addendum. Update Utility:
Monitor all wells using the Third Party Update Utility. Do not accept proposed TPA Statuses as long as the ‘charging’ well continues to produce. If/when the charging well is no longer producing, another well can be updated. Invoicing: Option 1: Do not add a TPA Status to the other wells. If a change in status occurs, then manually add an End Date to the well that should no longer be invoiced, and add the TPA Status and Start Date to the next producing well. OR Option 2 (Financially Integrated clients should test this option with accounting to determine if $0 entries are an issue): Create a TPA Status that indicates Multi-well Pad site No Charge for $0 and add to the secondary wells. Include the $0 fees in the invoicing process so that operator can see that only one of the multiple wells is being invoiced and history is created on the Invoice History tab. Last Invoice Date will advance on these $0 fees. If desired, the Description field could store the Pad Site location and well 1 of 3, etc. to clarify why $0 fee is on invoice. Note that financial entries may be created for $0 entries and this may not be a good option for integrated clients.
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