Third Party Update Utility Details

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1 Third Party Update Utility Processing
- 1.1 Qbyte CS User Wells Selected for Processing
- 1.2 Selected User Wells are Matched to Industry Data
- 1.3 Checking Industry Data
- 1.4 Maintenance Fees
- 1.5 One-Time Fees
- 1.6 Known Issues

Third Party Update Utility Processing

When a new month is first run or the current month is re-submitted, there is a time-lapse between submission and the opening of the Update Utility window. The length of wait depends upon the number of user wells in the process.

Qbyte CS User Wells Selected for Processing

User Wells are identified for processing if:

User Well is a Well or Location type (not N/A)
User Well Status is Active (AI Status on the validation table File Status User Well)
Grantor is a TPA Inv Run Owner in the Owners table
Exclude from Utility flag is not ticked

Selected User Wells are Matched to Industry Data

The selected User Wells are matched to industry data where possible, first by well license or by location or UWI if well license is not populated. If the user well can’t be matched to industry well(s), error messages are generated.

Checking Industry Data

Spud and rig release dates are gathered.
Well Status and Well Status effective dates are gathered for the Well Status Method
Production data is gathered for the Production Volume Method

Maintenance Fees

As discussed in the Configuration , either Well Statuses or Production Volumes are used to determine TPA Status. The appropriate data is gathered for the industry wells.

Status Categories are determined for the user well (i.e. Drilling, Producing, Non-producing):
- Well Status Method: Industry well statuses are translated to a Status Category. If multiple Status Categories exist for a User Well (because of multiple event sequences) the Status Category Precedence on the validation table determines which Status Category is used. If an industry well status does not have a designated Status Category (in the Code Translate table), error messages are produced.
- Production Volumes Method: the production volumes (oil/gas/water including injection) are totaled on a monthly basis. If volumes are present, the Status Category is Producing; otherwise, it is Non-Producing.

The Update Utility requires that each agreement have one TPA Status on the Maintenance tab for each of the following categories: Drilling, Producing and Non-Producing. Although the drilling status is required on the Maintenance tab when the Third Party Update Utility is used a drilling TPA status will not be proposed if the Maintenance Fee Start Date is more recent than the spud date.
- See example of set up for more details.

Based on the Status Category for the User Well, a TPA Status(es) corresponding to that on the Maint tab of each agreement is(are) proposed and compared to the existing TPA Status(es).
- Multiple TPA Statuses may be proposed depending on well activity and time since last invoice date.
- If no TPA Status on the Maint tab of the agreement matches the Status Category, then no TPA Status can be proposed. An error message is generated.
- If only one TPA Status is proposed and it matches the existing TPA Status, the User Well with its Proposed TPA Status is suppressed so that it does not appear on the Proposed TPA Statuses tab.
Invoice Start Date is determined (based on the User Well’s last invoiced date or, if never invoiced, the earliest TPA Start Date on any existing TPA Statuses).

One-Time Fees

If the user well has any One-Time Fees with no Billing Dates and the well has spud, the User Wells are identified. Note: There is a configuration setting in the TPA config table that allows you to separate One-Time fees from Maintenance fees. See Separate One-Time and Maintenance Fees for more details.

Known Issues

When using the well status method: Although the Well Status method produces accurate results in most cases, an incorrect TPA Status may be proposed if the non-producing event has an industry well status with a date that is later than the date on the well status for the producing event.

If you have a situation where there is a re-entry well with the same licence number with different spud and rig release dates for different events, then the different spud and rig release dates will confuse the Update Utility into proposing duplicate TPA Statuses for the user well. Instead of entering the licence number on the user well, simply enter the user well as a ‘well’ type and put in the active UWI.

If multiple events exist for the active UWI (in addition to the original abandoned event), then potentially this well will have to be excluded from the Update Utility process and handled manually.