Third Party Invoicing Getting Started

Prior to using the Third Party Update Utility and Third Party Invoice Process there a few decisions that have to be made so that the process and utility are set up properly.  Data in the Maint. Tab and User Well tab will also need to be updated.

Decision Points

Are One-Time fees going to be billed with maintenance fees?

There is a setting in the TPA Config table which allows One-time fee invoices to be run in a separate process than the maintenance fee invoices.

• See Third Party Configuration.

Is the Update Utility going to be used to update Initial Considerations billing dates?

If billing date for Initial consideration fees is not going to be updated using the Third Party Update Utility then the system table setting TPAINITCON should be set to Y. Y will disable the "One-time Fee Billing Dates" tab in the Third Party Update Utility and billing dates must be added manually on the user well tab. See Client Configuration  (Third Party Update Utility configuration).

Are you going to use Well Status or Production Volume Method for the Third Party Update Utility?

Use the following link to determine which method you are going to use for the Third Party Update Utility.

• See Maintenance Update Utility Method and update system table, setting TPAPRODVOL Y(default) for Production Volume method or N for Well Status method.

Code Table Updates

Once the method is determined for the update utility the following code tables will need to be updated:

• TPA Status Category: The TPA Status Category table is seeded with the following values: DRILLING, NON-PROD, PRODUCING and SERVICE. The categories have a precedent and are used in the TPA Status table so that the Third Party Update Utility can propose the correct TPA Status.

• TPA Status: To use the Update Utility, TPA Statuses (specifically those that apply to TPA Statuses that should be updated by the Update Utility) must have a Status Category assigned to them.

• Industry Well Status (Well Status Method only): If the Well Status Method is going to be used to determine the proposed TPA Statuses then a translation table for industry statuses must be populated with a Status Category assigned to the appropriate industry statuses.

• See TPA Status Configuration Examples for more details.

Third Party Data

In order for the Third Party Process and Third Party Update Utility to work properly data in the Maint. tab and User Well tab has to be set up correctly.

Maint Tab

The Third Party 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.  Note: 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.

You can review and update the Maint. tab data prior to running the Third Party Update Utility or run the Third Party Update Utility and look at the errors. The Update Utility Error Message tab will show where data needs to be corrected. Examples of the errors are: Missing Drilling Fee and Multiple Producing Rates.

• See Error Message Tab for more details.

User Well Tab

Well Licence: For wells that have been drilled the well licence number should be added to the User Well to get more accurate results. When the well licence number is entered all event sequences for the well licence are used to determine the appropriate TPA Status.

Producing TPA Status: If a user well has been drilled and there is more than one producing TPA Status on an Agreement then the overriding Producing TPA status should be entered on the User Well to prevent error messages in the Third Party Update Utility. The Update Utility can be used to see which user wells require a Producing TPA Status on the user well.

• See  Error Message Tab  for more details 

One-Time Fees

If you want to start invoicing Initial considerations then the following update is required: If a well has not been drilled add the fee with no billing date. The Third Party Update Utility will propose a billing date when the well is drilled. Once the billing date is populated the initial consideration will be picked up in the invoice process.

Maintenance Fees

If this is the first time using the Third Party Invoice Process and the Update Utility then the following one time manual update is required: If a well has already been drilled then a TPA Status and Start Date should be added to the User Well so that the Third Party Update Utility and Third Party Process knows when to start invoicing the Grantee. If the TPA Status is incorrect the Third Party Update utility will propose the correct status. If a date is not entered the Third Party Update Utility will propose a Drilling TPA Status and different TPA maintenance statues from the date the well was drilled.

If you have been invoicing however are now going to use the Third Party Update Utility you do not have to make any changes to the maintenance fees. The Third Party Update Utility will propose a different TPA Status if the TPA Status should be changed. If you are setting up a new fee follow the below guidelines:

Well has not been Drilled

If a well has not been drilled then a TPA Status does not have to be entered in the Maintenance Fees section. The Third Party Utility will propose a status when the well is drilled.

If there are multiple producing statuses the Producing TPA Status field on the User Wells tab is used to specify which Producing Status is to be proposed for the particular Third Party Well.  If you know which producing status will be used for the User Well at time of entry then add it at time of entry. If Producing Status is not known the Third Party Update Utility will request one be entered when the well produces.

Open

Well has been Drilled

If a well has been drilled then a TPA Status and Start Date should be added to the User Well so that the Third Party Update Utility and Third Party Process knows when to start invoicing the Grantee. If nothing is added a Drilling TPA Status and historical TPA Status activity will be proposed.

In the below example the invoicing will start November 1, 2016. If the TPA status that was entered is incorrect the Third Party Update Utility will propose a different TPA Status.

Open

Note: 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.

Distribution

If this is the first time using the Third Party Invoice Process then the following update is required: Enter a distribution revenue cost centre and allocation percentage for all of the user wells.

There are no changes required if you have been using the Third Party Invoice Process.

Exclude from Utility

Tip: If you have any unique situations and do not want the utility to propose a TPA status then check the “Exclude from Utility” box on the User Well tab