Well Maintenance

Fluid Type

An Oil/Gas/Water/Effluent drop-down that determines the fluid type of the well. Defaults to Gas. The Fluid Type is used to trigger various edits and functionality within the Qbyte Metrix application. 

Heavy Oil

Mandatory. Available options include:

• Non Heavy Oil Well

• Heavy Oil Well

• Saskatchewan Southwest

• Default is Non Heavy Oil Well

If well is classified as a Heavy Oil Well, you can enter/FDC upload zero producing hours for the well and Book Heavy Oil Differently by using the Region > Financial tab option.

Measurement Type

This field determines the Measurement Type. The default is MEAS - Measured.

• MEAS - Measured

• TEST - Test To Test

Note: If the fluid type is Effluent, the measurement type must be TEST - Test To Test.

UserDefined1/UserDefined2

You can choose to make these fields mandatory and change the labels (See Administration > System Configuration > User Defined Labels).

These fields can be used by companies for a variety of reasons including field contacts, corporate division, etc. 

Report Liquid As Condensate

A Yes/No drop-down for gas wells only to be used if the liquid produced is to be reported as Oil (No) or Condensate (Yes).

Report Zero Production

A Yes/No drop-down that controls if reporting will print wells with zero volumes or suppress them.

Partner Operated Petrinex ID

A free-form field used by the Partner Operated Petrinex Import process to match the Petrinex file data.

Recombined Liquid And Gas

A Yes/No drop-down that indicates if you will be recombining your liquid and gas. 

• See How Do I set up Liquid and Gas Recombination.

Partner Operated Petrinex ID 

This field identifies the well presentation for the upload from Petrinex. If the well represents a unit or a well group, or if the legal location is different from the one in Petrinex, this field then needs to be populated with the proper Petrinex Code (i.e. AB UN 12345, or AB WI 100082404812W500).

Water Gas Ratio Factor

When the well has a calculated Water Gas Ratio (WGR) to be used to determine water estimated production instead of entered test/measured volumes, enter the factor here and set the Water Gas Ratio Code to Well-level.

Water Gas Ratio Code

A drop-down list with options including Well-Level or Battery-Level. Indicates whether the well’s water estimate is to be determined by a Water Gas Ratio factor and if so at what level the WGR factor will be entered (Well-level or Battery-level).

Test Date

Water Gas Ratio Test Date: This is for information purposes related to when the Well-level Water Gas Ratio factor was last calculated for the well.

Oil/Condensate Gas Ratio Factor

When the well has a calculated Oil Gas Ratio (OGR) to be used to determine oil/condensate estimated production instead of entered test/measured volumes, enter the factor here and set the Oil Gas Ratio Code to Well-level. 

Oil/Condensate Gas Ratio Code

A drop-down list with options including Well-Level or Battery-Level. Indicates whether the well’s oil/condensate estimate is to be determined by an Oil Gas Ratio factor and if so at what level the OGR factor will be entered (Well-level or Battery-level).

Test Date

Oil/Condensate Gas Ratio Test Date: This is for information purposes related to when the Well-level Oil Gas Ratio factor was last calculated for the well.

Oil Meter Factor

If the well requires an adjustment factor applied to all oil production, then enter the factor here.

• It must be greater than or equal to zero.

Gas Meter Factor

If the well requires an adjustment factor applied to all gas production, then enter the factor here. 

• It must be greater than or equal to zero.

Water Meter Factor

If the well requires an adjustment factor applied to all water production, then enter the factor here. 

• It must be greater than or equal to zero.

Remaining Gas

This field determines what should be done with any remaining gas at the well level. This field defaults to Metering Difference.

• Metering Difference: Treat the remaining gas as a metering difference.

• Flared: Assume the remaining gas was flared.

• Lease Fuel: Assume the remaining gas was used as lease fuel.

• Vented: Assume the remaining gas was vented.

Note: The available options are based on the well fluid type: Gas, Water, and Effluent only allow Metering Difference.

Battery GOR Exempt 

A Yes/No drop-down that indicates if the well is exempt from using a battery-level Gas Oil Ratio. The default is No.

Note:

• This field will only appear if the battery the well is attached to has Calculate Battery Gas Oil Ratio = Yes and the well is a Test well.

• Measured wells are automatically exempt from using a battery-level Gas Oil Ratio and therefore will not be displayed.

All Oil To Be Recovered

A Yes/No drop-down that indicates if you want to assume that all oil produced from the well is to be deemed recovered load oil until all load oil is recovered. The default is No.

Note: This field will only appear if the battery the well is attached to has Recovered Load Entry Method = By Well and Load Recovery Adjustment Type = Auto Adjust Well Total.

• For more information about load oil handling, see Injection/Recovery of Load Fluid.

All Water To Be Recovered 

A Yes/No drop-down that indicates if you want to assume that all water produced from the well is to be deemed recovered load water until all load water is recovered. This field defaults to No.

Note: This field will only appear if the battery the well is attached to has Recovered Load Entry Method = By Well and Load Recovery Adjustment Type = Auto Adjust Well Total.

• For more information about load water handling, see Injection/Recovery of Load Fluid.

Label

 User-defined description for the adjustment/consumption factor.

Calculation Basis

Defines what volume the adjustment/consumption is based on (i.e. Gas Production, Hours of Production, etc.). Calculation Basis is mandatory and should not be left blank. 

Input Directly as Volume: The adjustment/consumption volume is entered manually through the Battery Balance Well Input tab in Edit mode.

For the three Calculation Basis options listed below, Adjust Production must be set to Yes. Add to Production must be set to Well if the Consumption Calc is Gathered. It is assumed the gathered volume is going to the battery and will be metered there, so the calculated volume should not be added to the battery again.

• GOR: GOR has its own rules for the flag combinations. These are dictated by the Measurement Exempt and Prorate GOR battery flags.

  • When Measurement Exempt is set to Yes, then Recalculate on Actual must also be set to Yes.

  • When Prorate GOR is set to Yes, then Include in Proration must also be set to Yes and vice versa.

• STV: Adjust Production must be set to Yes or Well. Recalculate on Actual must be set to Yes.

  • Include in Proration must be set to Yes.

• GIS: Adjust Production must be set to Yes or Well.

  • Recalculate on Actual must be set to No.

  • Include in Proration must be set to Yes. 

Note: 

• Wells with a fluid type of Effluent cannot have a Consumption Factor with a Calculation Basis of GIS, GOR, STV, Oil Production or Water Production. 

• Wells with Battery GOR Exempt = No, attached to a battery with Calculate Battery Gas Oil Ratio = Yes cannot have a Consumption Factor with a Calculation Basis of GIS, GOR, or STV. Wells with Battery GOR Exempt = Yes, attached to a battery with Calculate Battery Gas Oil Ratio = Yes and Battery GOR Exempt = Yes cannot have a Consumption Factor with a Calculation Basis of GIS or STV. 

Rate

A factor to be multiplied by the volume chosen in the Calculation Basis to calculate the adjustment/consumption volume. Factor is mandatory if the Calculation Basis is not Input Directly as Volume.

• The rate must be greater than zero.

• Factor must be blank if Calculation Basis is Input Directly as Volume.

Usage Type

Allows you to select whether this adjustment/consumption volume is to be Flared, Vented, used for fuel (Lease Fuel), or Gathered for further processing.

• Usage Type is mandatory and should not be blank.

Adjust Production

Determines whether this adjustment/consumption volume should be added to production or not.

• Setting this option to Yes will adjust both well production and battery production (measurement/usage of this consumption occurred before wellhead measurement - upstream of measurement point).

• Setting this option to No means no adjustment is made to well production (measurement/usage of this consumption occurred after wellhead measurement - downstream of measurement point).

• Setting this option to Well will adjust well production, but not battery production. This is used for situations where this well's production adjustment is considered an estimate, and a different actual production volume is entered at the battery. i.e. GOR.

• Setting this option to Receipt (Do Not Adjust Production) means no adjustment is made to well or battery production because the gas consumed came from received gas and not gas produced at this well.

  • The Calculation Basis must be Input Directly as Volume. The Usage Type must be Lease Fuel, Flared or Vented. This option is used in situations where the gas used as consumption at the wellhead is from a receipt of gas and not from the well's own production. Use the following steps to report wellhead fuel (from a Receipt) to Petrinex without impacting the well's gas production volume:

1. Create well consumption factors at the well(s) consuming received gas and set the Adjust Production = Receipt (Do Not Adjust Production) and Calculation Basis = Input Directly as Volume.

2. At each Well (Battery Balance > Well Input), enter the wellhead fuel (from a receipt). The volumes can also be loaded via FDC using the CONSINPT record (CSV format).

3. Ensure that there are valid gas receipts at the battery to cover the sum of all wellhead consumption volumes entered for consumption factors using Adjust Production =  Receipt (Do Not Adjust Production). The following receipt types can be used:

• Consumption Receipt for Wells - This is a user-entered receipt at the battery. These volumes must be used for wellhead-level consumption.

• Transfer for Consumption - This is an auto-generated receipt created from a Transfer for Consumption disposition from the sending battery. This is only available for non-gas flow batteries. These volumes can be used for wellhead-level consumption or battery-level consumption .

• Consumption Receipt - This is a user-entered receipt at the battery. These volumes can be used for wellhead-level consumption or battery-level consumption.

Note: Volumes from Transfer for Consumption or Consumption Receipt type receipts will be used for any wellhead-level consumption not already provided for by Consumption Receipt for Wells receipt types before it will be available for use at the battery-level.

Note: If the Calculation Basis is  Gas Production , the Adjust Production flag must be set to No .

Recalculate On Actuals

This option allows you to choose whether the system should use the estimated or actual production volume when calculating the factor. This option is applicable only to factors with a production-based Calculation Basis (Oil Production, Water Production). 

Note:

• When using Gas Production as the Calculation Basis, the Recalculate On Actuals must be set to No to avoid circular calculations.

• If the well is measured, the Recalculate On Actuals flag will not have any effect on the calculation result. If the well is a test well, the adjustment/consumption volume will be recalculated to be based on actual volume during the battery processing, if the flag is set to Yes.

• Consumption factors with Adjust Production = Receipt (Do Not Adjust Production) must have Recalculate On Actuals set to blank.

Include In Proration

If the adjustment/consumption volume is being added to the well gas production, you have the option to either deem this volume as a measured volume (Include in Proration is set to No), or an estimated volume (Include in Proration is set to Yes). This selection will determine whether the volume remains unchanged during balancing or if it is multiplied by the gas proration factor to adjust to actual volume. If Include in Proration is set to Battery, the system prorates the adjustment/consumption volume to all wells attached to the battery regardless of their fuel consumption.

Note: Wells attached to a battery with Calculate Battery Gas Oil Ratio = Yes cannot have a Consumption Factor with an Include In Proration either Yes or Battery. Consumption factors with Adjust Production = Receipt (Do Not Adjust Production) must have Include in Proration set to blank.

Well cannot be linked to a battery.

This check will fail if the well is linked to a Battery. There will be no additional information displayed when this check fails as this data is accessed at the well-level directly.

Note: To remove a well from a battery, the well cannot be Acknowledged (no monthly data entry, operated or partner operated), the well cannot be a Cap or Solution well and the well cannot be referenced in any Load Oil or Load Water receipts at the battery.

Well cannot have Commingled children.

This check will fail if the well has Commingled child wells. There will be no additional information displayed when this check fails as this data is accessed at the well-level directly.

Well cannot have Cap/Solution children.

This check will fail if the well has Cap/Solution child wells. There will be no additional information displayed when this check fails as this data is accessed at the well-level directly.

Well cannot have Designate Volume entered.

This check will fail if the well is included in the list of wells on the Designated Volume screen (accessed from the Plant Balance). Any Plant and Product that includes the well in its Designated Volume list will be displayed underneath the failed check.

Well cannot have a non-zero Override Production entered.

This check will fail if the well has a non-zero volume entered on the Override Production screen. Any Facility and Product where the well has a non-zero Override Production will be displayed underneath the failed check.

Well cannot have Production Volume at an Injection Facility.

This check will fail if the well is included on the Production tab of the Injection Facility Balance, regardless of the volume entered. Any Injection Facility where the well exists on the Production tab of the Injection Facility Balance will be displayed underneath the failed check.

Well cannot be linked to a Consumption Usage.

This check will fail if the well is included in the Entities list of a Consumption Usage, regardless of the volume entered. Any Facility and Usage where the well exists on the Entities list of Consumption Usage will be displayed underneath the failed check.

Note: If the well is the only entity linked to the Consumption Usage, then simply removing the well may cause the consumption allocation for the Usage to be incorrect. If the Consumption Usage is linked to a Gas Flow facility, then a Usage with no entities is allocated to all entities. If the facility is non-Gas Flow, then the Usage is not allocated to any entities.

Well cannot be linked to an IPS Processing Order.

This check will fail if the well exists as a Participant on an Ideal Product Shrinkage Order, regardless of whether it is INCLUDED or EXCLUDED. Any Facility, Product, and Order Sequence where the well exists as a Participant will be displayed underneath the failed check.

Well cannot be linked to an IOGC Reserve.

This check will fail if the well is linked to an IOGC Reserve. Any Reserve the well is attached to will be displayed underneath the failed check.

Well cannot be linked to a Group Meter.

This check will fail if the well is linked to a Group Meter. Any Group Meter the well is attached to will be displayed underneath the failed check.

Well cannot have a Wellhead Analysis.

This check will fail if the well has a Wellhead Analysis entered. There will be no additional information displayed when this check fails as this data is accessed at the well-level directly.

Well cannot be linked to an EOR Scheme.

This check will fail if the well is linked to an EOR Scheme. Any EOR Scheme the well is attached to will be displayed underneath the failed check.

Note: Only checked for Alberta wells.

Well cannot be linked to a REN.

This check will fail if the well is linked to a BC REN. Any REN the well is attached to will be displayed underneath the failed check.

Note: Only checked for British Columbia wells for production dates prior to Petrinex Implementation.

Well cannot be linked to a Production Source.

This check will fail if the well is linked to a BC Production Source. Any Facility that contains a Production Source the well is attached to will be displayed underneath the failed check.

Note: Only checked for British Columbia wells for production dates prior to Petrinex Implementation.

Well cannot have Manitoba Holiday Transfers entered.

This check will fail if the well is referenced in a transfer of Manitoba Holiday volume as either an incoming or outgoing well. There will be no additional information displayed when this check fails as this data is accessed at the well-level directly.

Note: Only checked for Manitoba wells.

Well cannot be linked to a Horizontal Drainage Unit.

This check will fail if the well is linked to a Horizontal Drainage Unit. Any Horizontal Drainage Unit the well is attached to will be displayed underneath the failed check.

Note: Only checked for Manitoba wells.

Well cannot be linked to a Tract.

This check will fail if the well is linked to a Manitoba Tract. Any Tract the well is attached to will be displayed underneath the failed check.

Note: Only checked for Manitoba wells.

Well cannot be linked to a Spacing Unit.

This check will fail if the well is linked to a Spacing Unit. Any Spacing Unit the well is attached to will be displayed underneath the failed check.

Note: Only checked for Manitoba wells.

Well does not have non-zero Inventory Override  entered.

This check will fail if the well has a non-zero volume entered on the Override Inventory screen for Inventory Types other than Production Royalty (ROY) or Production Royalty Transfer (XROY). Any Facility and Product where the well has a non-zero Override Inventory will be displayed underneath the failed check.

Note: A well OFF production can still be selling product out of inventory so this is an optional check, but the user should review those facilities where the well has inventory. However, it is possible that the facility/product listed may indicate a facility that is no longer ON production, in which case the remaining inventories for the well can be ignored. Another possibility is that the facility/product listed many indicate a product that the facility is no longer producing. This may or may not be a situation that you need to address but you should review it. For example, if a facility was modified to remove the production of C3 - Propane and instead produce C3MX - Propane Mix, there have already been Inventory Overrides for C3. Hopefully when the product was modified, any Inventory Overrides for C3 were moved over to C3MX and the C3 Inventory Overrides were deleted. 

Well does not have non-zero Carried Over Opening Inventory.

This check will fail if the well has a non-zero volume Closing Inventory for Inventory Types other than Production Royalty (ROY) or Production Royalty Transfer (XROY) in the previous production month and there is no Override Inventory in the selected production month for the Facility and Product where the previous non-zero Closing Inventory was found. Any Facility and Product where the well has a non-zero previous month Closing Inventory will be displayed underneath the failed check. This optional check does not include Royalty Obligation TIK volumes. 

Note: A well OFF production can still be selling product out of inventory so this is an optional check, but the user should review those facilities where the well has inventory. However, it is possible that the facility/product listed may indicate a facility that is no longer ON production, in which case the remaining inventories for the well can be ignored. Another possibility is that the facility/product listed many indicate a product that the facility is no longer producing. This may or may not be a situation that you need to address but you should review it. For example, if a facility was modified to remove the production of C3 - Propane and instead produce C3MX - Propane Mix, then there may be remaining closing inventories in the prior month (before the product change) for C3. Hopefully when the product was modified, any closing inventories for C3 were moved over to C3MX using Inventory Overrides.

Well does not have non-zero Inventory Override entered for Royalty Obligation TIK. 

This check will fail if the well has a non-zero volume entered on the Override Inventory screen for Inventory Types Production Royalty (ROY) or Production Royalty Transfer (XROY). Any Facility and Product where the well has a non-zero Inventory Override for Royalty Obligation TIK will be displayed underneath the failed check.

Note: A well OFF production can still be selling Royalty Obligation TIK from inventory so this is an optional check, but to book this correctly the Royalty Obligation MUST NOT be removed.

Well does not have non-zero Carried Over Opening Inventory for Royalty Obligation TIK.

This check will fail if the well has a non-zero volume of Closing Inventory for Inventory Types Production Royalty (ROY) or Production Royalty Transfer (XROY) in the previous production month and there is no Inventory Override for Royalty Obligation TIK in the selected production month for the Facility and Product where the previous non-zero Closing Inventory for Royalty Obligation TIK was found. Any Facility and Product where the well has a non-zero previous month Closing Inventory for Royalty Obligation TIK will be displayed underneath the failed check. 

Note: A well OFF production can still be selling Royalty Obligation TIK from inventory so this is an optional check, but to book this correctly the Royalty Obligation MUST NOT be removed.

Well does not have Royalty Obligations.

This check will fail if the well has Royalty Obligations. There will be no additional information displayed when this check fails as this data is accessed at the well-level directly.

Note: A well OFF production can still be selling product out of inventory so Royalty Obligations based on sales would still be required to calculate the correct royalties. In addition, some of the inventory could be related to taken-in-kind royalties and the Royalty Obligation would be required to ensure that the booking of the volumes sold out of inventory is correct. The Royalty Obligation is required to identify Royalty Type, Tax Type, etc.

Well is not a Disposal well at an Injection Facility.

This check will fail if the well is included on the Disposal tab of the Injection Facility Balance, regardless of the volume entered. Any Injection Facility where the well exists on the Disposal tab of the Injection Facility Balance will be displayed underneath the failed check.

Note: Wells that are OFF production can be included in an Injection Facility for Disposal. However, if the well is being taken OFF production, to eventually remove the Well Master (well is being sold, etc.) then it should be removed from any Injection Facility.

Well is not linked to a Participant Group.

This check will fail if the well is linked to a Participant Group. Any Participant Group the well is attached to will be displayed underneath the failed check.

Note: A well OFF production can still be selling product out of inventory so this is an optional check as the Participant Group could be being used on the Market Master to determine how sales volumes are to be distributed.

Well is not linked to a Facility Charge Monthly Input.

This check will fail if the well is linked to a Facility Charge Monthly Input. Any Facility Charge Monthly Input the well is attached to will be displayed underneath the failed check.

Note: As there is no way for Qbyte Metrix to know what the Facility Charge Monthly Input data represents, it may be possible that even an OFF production well should still be included. It is up to the user to review this data to see if the well should be removed or not.

Well does not have a Facility Charge Cost Centre Cross Reference.

This check will fail if the well is referenced in a Facility Charge Cost Centre Cross Reference. Any Facility that references the well will be displayed underneath the failed check.

Note: A well OFF production can still be selling product out of inventory so this is an optional check as the Facility Charge Cost Centre Cross Reference that references the well could be based on sales and therefore would still be required to ensure the Facility Charges are booked correctly.

Well is not included in Facility Charge Entity Exceptions.

This check will fail if the well is INCLUDED in an Entity Exceptions list for a Facility Charge. Any Facility, Product and Charge Type that includes the well in the Entity Exceptions will be displayed underneath the failed check.

Note: If the well is the only entity INCLUDED in the Facility Charge, then simply removing the well from the list will cause the Facility Charge to be calculated on all entities. In this case, the entire Facility Charge may need to be removed.

Note: A well OFF production can still be selling product out of inventory so this is an optional check as the Facility Charges that reference the well could be based on sales and therefore would still be required to ensure the Facility Charges are calculated correctly.

Well does not have Entity Owner RTPs.

This check will fail if the well has any Entity Owner RTPs entered. There will be no additional information displayed when this check fails as this data is accessed at the well-level directly.

Note: A well OFF production can still be selling product out of inventory so this is an optional check as the various Petrinex reports may still need to determine the correct Royalty Tax Payer.

Well is not linked to a Unit.

This check will fail if the well is linked to a Unit. Any Unit that includes the well will be displayed underneath the failed check.

Note: A well OFF production can still be selling product out of inventory so this is an optional check as knowing the well is unitized may still be required for royalty calculations and/or Petrinex reporting.

Well is not linked to a Petrinex Well Group.

This check will fail if the well is linked to a Petrinex Well Group. Any Facility and Well Group that includes the well will be displayed underneath the failed check.

Note: A well OFF production can still be selling product out of inventory so this is an optional check as the various Petrinex reports may still need to determine the Well Group.

Well is not linked to a Market Master Participant.

This check will fail if the well is a Participant on the Market Master. Any Facility and Product that includes a Disposition where the well is a Participant will be displayed underneath the failed check.

Note: If the well is the only Participant on the Market Master Purchaser, then removing the Participant will cause a Market Master error as there will be no Participants for the Purchaser. In this case, the Market Master Purchaser may also have to be removed, which may lead to there being no Purchasers on the Market Master Disposition.

Note: A well OFF production can still be selling product out of inventory so this is an optional check as the Market Master Participant may be required to determine how the sales volumes are to be distributed.

Default RTP Owner

This button is used to reset any existing RTP data back to default values, where each DOI owner is their own RTP Owner. 

• This button is enabled only when the grid has at least one record.

Load

This button is used to do the initial population of the RTP data (for a given Product, or Oil if Manitoba or Saskatchewan). The initial population of data will look at the DOI for the well and create a record for each DOI Owner, with themselves as their own RTP Owner.

• This button is enabled only when the grid is empty.

• This process uses the appropriate product Ownership DOI Exception or default DOI if no exception DOI.

Remove Unmatched Owners

This button is used to remove DOI Owners that are no longer in the DOI and that no longer require an RTP Owner.

• This button is enabled only when there is at least one DOI Owner in the grid that is no longer in the DOI.

Note: There may be situations where you want to leave RTP data for an owner that is no longer in the DOI, such as when they still have inventory that needs to be sold and therefore reported. If they are their own RTP, you can safely remove them from the RTP data since we assume that any owner we report that does not have RTP data is their own RTP Owner. However, if they have an RTP Owner different than themselves you will want to keep the RTP data until all their inventory is sold.

Clear

This button is used to remove all RTP Owner data (for a given Product, or Oil if Saskatchewan).

• This button is enabled only when the grid has at least one record.

Oil Density

A numerical value denoting whether a well is light, medium, heavy, or ultra-heavy crude oil.

• Required for crown royalty rate calculations.

Crown Royalty Calculation Type

Drop-down options include:

• B - Bypass - Use this when you do not want the system to calculate a crown royalty for you based on the standard provincial formulas and you want to calculate it outside the system or use a royalty obligation instead (recommended for effluent wells).

• E - Equivalent Use - Use if you want to calculate a cash-based crown royalty (volume will not appear on a split). In addition, use the Equivalent Use Sub Type to select which Crown Royalty formula to use to calculate the volume.

• MRFC - MRF 2017 C* - To calculate a new well's royalty rate based on the Alberta Modernized Royalty Framework prior to payout (included only if MRF is enabled in System Configuration > Function Implementation).

• MRFPC - MRF 2017 Post C* - To calculate a well's royalty rate based on the Alberta Modernized Royalty Framework after payout (included only if MRF is enabled in System Configuration > Function Implementation).

• N - ARF 2009 Normal - To calculate a well's royalty rate based on the Alberta Royalty Framework.

• T - ARF 2009 Transitional - Use if the well is on the Alberta Government's Transitional royalty program.

Select the correct Crown Royalty Calculation Type to calculate the royalty rate.

• See Crown Royalty Rates for more information on Crown Royalty Rates and Crown Royalty Formula Details.

Note: For an effluent well, the Crown Royalty Calculation Type can only be B (as effluent wells produce condensate and therefore oil royalty should not be calculated).

Equivalent Use Sub Type

This field is disabled and is only editable when the Crown Royalty Calculation Type is E - Equivalent Use.

Available drop-down options include:

• MRFC - MRF 2017 C* (included only if MRF is enabled in System Configuration > Function Implementation)

• MRFPC - MRF 2017 Post C* (included only if MRF is enabled in System Configuration > Function Implementation)

• N - ARF 2009 Normal

• T - ARF 2009 Transitional

Select the Equivalent Use Sub Type to calculate the Royalty Rate based on the selected formula.

• See Crown Royalty Rates for more information on Crown Royalty Rates and Crown Royalty Formula Details.

Oil Holiday/Incentive Sequence #

If the well requires a holiday to be set up:

1. Create a new Holiday Sequence # in the Edit Holiday Details screen.

• A drop-down will be available upon Save.

2. Select the Oil Holiday/Incentive Sequence # from the list that is to be active.

Note: No royalty holiday will be calculated if a Holiday/Incentive Sequence # is blank. The royalty rate will be calculated based on the Crown Royalty Calculation Type.

Process for Crown Invoice

This is a Yes or No drop-down with a default of Yes.

Holiday Incentive Sequence#

A mandatory numerical value to identify a holiday. A well can have more than one holiday over its history, but only one holiday can be in effect at a time.

• Required for Crown Royalty Rate calculations.

Incentive Type

Available drop-down options include:

• I - Incentive

• E - Exemption

This field is required.

Holiday Description

Used to describe the holiday.

Holiday Type

This field is required. See the grid below for additional information.

Volume Cap Based On

Royalty holidays with a production volume cap for OIL (Maximum Volume) require you to select what the Volume Cap is Based On.

Options include Crown Eligible Production or Total Production. The default selection is Total Production.

• Crown Eligible Production means that only the calculated crown eligible volume will be applied against the Maximum Volume. The calculated crown eligible volume is oil production multiplied by the crown mineral ownership percentage. 

• Total Production means that all volume produced in a production month will be applied against the Maximum Volume.

Note:

• If this flag is changed from Crown Eligible Production one month to Total Production another month, (or vice versa) it can impact prior period amendments because the volume cap will be based on a different volume (especially if the Crown Ownership is less than 100%). If the flag must be changed after the initial setup, it is recommended that you create a brand-new Holiday Incentive Sequence# and make the change on an ongoing basis.

• If you do not follow this recommendation you will have to fix all affected months and re-run Crown calculations to ensure that the Volume Cap is accurately calculated from inception.

Holiday Incentive Sequence#

A mandatory numerical value to identify a holiday. A well can have more than one holiday over its history, but only one holiday can be in effect at a time.

• Required for Crown Royalty Rate calculations.

Incentive Type

Available drop-down options include:

• M - Minimum Royalty Holiday

• R - Regular Holiday (Total Exemption)

This field is required.

Holiday Description

Used to describe the holiday.

Holiday Type

This field is required. See the grid below for additional information.

Calendar Based (AB & MB)

• Enter Holiday Start Date and Holiday End Date.

Note: You can also set up a Maximum Volume that will be tracked. 

• The incentive will expire when either threshold is reached.

• N/A

• If a Volume Adjustment is entered, it will reduce the remaining volume.

Production Date Based (AB & MB)

• Enter the Holiday Start Date and the Number of Production Months.

Note: Holiday End Date is not checked or used but can still be entered.

Note: You can also set up a Maximum Volume that will be tracked.

• The incentive will expire when either threshold is reached.

• If a Production Months Adjustment is entered, it will reduce the remaining months.

• If a Volume Adjustment is entered, it will reduce the remaining volume.

Not Date Dependent (AB & MB)

• Enter the Maximum Volume.

• If a Volume Adjustment is entered, it will reduce the remaining volume.

Royalty Value (AB)

• Enter the Maximum Value.

Note: You can also set up the number of Production Months that will be tracked.

• The incentive will expire when either threshold is reached.

• If an Adjustment Value is entered, it will reduce the remaining value.

• If a Production Months Adjustment is entered, it will reduce the remaining months.

Concurrent Calendar and

Production Date Based (AB)

• Enter Holiday Start Date, Holiday End Date, and the Number of Production Months.

Note: You can also set up a Maximum Volume that will be tracked. 

• The incentive will expire when calendar months are reached, and production months or volume threshold is reached.

• If a Production Months Adjustment is entered, it will reduce the remaining months.

• If a Volume Adjustment is entered, it will reduce the remaining volume.

Relief Multiplier (AB)

• Enter Holiday Start Date and Holiday End Date.

The incentive will expire when the Holiday End Date is reached.

•  N/A

Minimum Royalty Holiday (MB)

• Enter the Maximum Volume.

• Enter the Crown Minimum Royalty Rate and Freehold Minimum Royalty Rate (if applicable).

• If a Volume Adjustment is entered, it will reduce the remaining volume.

Regular Holiday (Total Exemption - MB)

• Enter the Maximum Volume.

• If a Volume Adjustment is entered, it will reduce the remaining volume.