Royalty Obligations

Formula Level

Save

This button saves your work and takes you back to the appropriate screen.

Note: Since a formula can be maintained from multiple screens within Qbyte Metrix, this button will return the user to the screen from which they launched the formula maintenance.

Save and Continue

This button allows you to save your work and remain on the same screen to continue modifying the same formula. This can be useful if you are making many changes to the same formula and want to ensure that you save your work as you go.

Revert

This will undo any changes you have made since you last saved.

Delete Formula

This will delete the formula. You will be asked to confirm that you want to delete the formula.

Note: If the formula is being used on one or more Royalty Obligations, then the Royalty Formula Usage pop-up will be displayed, and you will not be allowed to delete the formula.

Usage

This will pop up the Royalty Formula Usage screen to show which Royalty Obligations, if any, are using the formula.

Note: It is recommended that you review the usage of any formula that you are modifying prior to saving to ensure that you are aware of the Royalty Obligations that may be impacted by the changes.

Cancel

This will take you back to the appropriate screen.

Note: Since a formula can be maintained from multiple screens within Qbyte Metrix, this button will return the user to the screen from which they launched the formula maintenance.

Advanced

This will pop up an Advanced Formula Maintenance edit screen that provides more options regarding manipulating multiple lines of a formula at once. Use this if you have a large formula and you want to move one or more formula lines more than one row at a time or if you need to copy or delete a group of lines within the formula.

Note: You cannot go to the Advanced edit screen if you have un-saved changes. Use the Save and Continue button to save any un-saved changes or click the Revert button to undo the un-saved changes and then click the Advanced button.

Copy From

This button will delete all formula lines from the current formula and replace them with the lines from the formula that you choose. You will be reminded that this will delete the current formula and asked to confirm that you want to continue. If you choose to continue, the Royalty Formula Advanced Search will pop up to allow you to choose the formula you want to copy from.

Line Level

Move Up

This will move the highlighted row up in the list of formula lines. If this is already the top-most row, then nothing happens.

Be careful when moving lines into or out of a Sub-Calculation grouping and ensure that the Sub-Calculation option is set correctly to reflect the lines new position in the formula.

Move Down

This will move the highlighted row down in the list of formula lines. If this is already the bottom-most row, ignoring the final total line for Net Royalty, then nothing happens.

Be careful when moving lines into or out of a Sub-Calculation grouping and ensure that the Sub-Calculation option is set correctly to reflect the lines new position in the formula.

Duplicate

This will duplicate the highlighted row. The new row will be added to the formula below the highlighted row.

Add

This will add a new row below the highlighted row. If there is only the final total line for Net Royalty in the formula, then the new row will be added above.

Apply

This is used to Apply changes that have been made to a specific formula line (not including changes made using the Move Up/Move Down buttons). Changes made will not be reflected in the list of formula lines until this button is clicked.

Revert

This will undo any changes you have made to the currently highlighted row (not including changes made using the Move Up, Move Down or Duplicate buttons).

Delete

This will delete the current formula line. You will be asked to confirm that you want to delete the line.

Sub-Calculation

This indicates whether the formula line is part of a sub-calculation. The sub-calculation functions similarly to brackets in a mathematical equation.

Options include:

• N/A - This indicates that the formula line is not part of a sub-calculation.

• Open Sub-Calc - This indicates that the formula line is the beginning of a sub-calculation. Think of this as an open bracket in a mathematical equation.

  • An Open Sub-Calc line must have Factor Type = System Value and Factor = Factor = SUB group total

• Sub-Calc Body - This indicates that the formula line is part of a sub-calculation

• Close Sub-Calc - This indicates that the formula line is the end of a sub-calculation. Think of this as a close bracket in a mathematical equation.

  • A Close Sub-Calc line should have Factor Type = System Value, Operator = Subtotal and Factor = Subtotal

In most cases, this defaults to N/A. However, if you are adding a line within a sub-calculation it will default to Sub-Calc Body.

Note: You cannot nest sub-calculations. One sub-calculation must be closed before you can open another one. Each sub-calculation group must have an Open Sub-Calc line, at least one Sub-Calc Body line, and a Close Sub-Calc line.

Operator

This indicates the operator that is to be used to apply the factor in the formula line.

Options include:

• Set Value - Use this when you want to set the current result to a specific factor. Note: This operator is typically used in the first line in a formula (as the starting point for the result) and the first line in the body of a sub-calculation (again as the starting point for the sub-calculation result).

• Add - Use this when you want to add a factor to the existing formula result (result of the previous line in the formula).

• Subtract (Deduct) - Use this when you want to subtract a factor from the existing formula result (result of the previous line in the formula).

• Multiply - Use this when you want to multiply the existing formula result (result of the previous line in the formula) by a factor.

• Divide - Use this when you want to divide the existing formula result (result of the previous line in the formula) by a factor.

• Subtotal - Use this when you want to display the existing formula result as a line in the formula.

  • Note: This should be the operator of the last line in a sub-calculation (Sub-Calculation = Close Sub-Calc). It is also recommended to use this before any line using the Store Value operator to ensure that the correct result is saved to a Memory or Store factor.

• Minimum - Use this when you want to take the minimum of the existing formula result (result of the previous line in the formula) and a factor.

• Maximum - Use this when you want to take the maximum of the existing formula result (result of the previous line in the formula) and a factor.

• Store Value - Use this when you want to save the existing formula result (result of the previous line in the formula) in one of the Memory factors (1 - 9) or Store factors for later use in the formula or other processes.
  
  

  • Note: It is also recommended to have the line before the line using a Store Value operator be a line using the Subtotal operator to ensure that the correct result is saved to a Memory or Store factor.
    
    

• Round Value - Use this when you want to round the existing formula result (result of the previous line in the formula) to a specific number of decimals. When this operator is selected instead of entering a factor you will be required to enter the number of decimals to round to.

• Truncate Value - Use this when you want to truncate the existing formula result (result of the previous line in the formula) to a specific number of decimals. When this operator is selected instead of entering a factor you will be required to enter the number of decimals to truncate to.

Factor Type

This indicates the type of factor that is to be applied in this formula line.

Options include:

• System Value - System values are values that are already contained or calculated by Qbyte Metrix. These are not factors that the user enters as part of the formula. For example, the production volume for a well/product is identified during the battery balance/process stage. If this value is required for a Royalty calculation, the system will look up the value and use it for the calculation. Click Here to see a complete list and description of available system factors.

• Fixed Value - A fixed value does not typically change from month-to-month, so the value can be entered directly into the formula. This also means that the same value is applied to all Royalty Obligations using the formula, so be careful when using the formula in multiple Royalty Obligations. Examples of fixed values are a fixed Royalty percentage or a processing or trucking rate. These values are retained along with the formula lines during the Monthly Close process and do not have to be re-entered each month.

• Monthly Input Value - Monthly input values must be entered each month for each Royalty Obligation that uses the formula. This factor type is for values that change from month-to-month and may be different in each Royalty Obligation using the formula. An example of this may be a trucking invoice or an operating cost as a deduction.

  • Note: These values must be entered each month as they do not get copied into to the next production month during the Monthly Close process.

Note: For factor values that may not fit the Fixed versus Monthly Input rules, there are two types of System factors (User-Defined Global Factors and User-Defined Obligation Factors) that may fill the requirement. In general, User-Defined Global Factors are IDs that are set up in Qbyte Metrix and can be referenced in one or more Royalty Formulas, but the actual value of the factor is entered only once. The same value is used by all formulas that reference the ID. The value can be entered monthly, but it will be copied into the next production month during the Monthly Close process. So User-Defined Global Factors are useful for values that are common across many formulas and do not change that often. User-Defined Obligation Factors are like their global cousin in that they are IDs set up in Qbyte Metrix and can be referenced in one or more Royalty Formulas. The main difference is that the actual value of the factor is entered at each Royalty Obligation using a Royalty Formula that references the ID. The value can be entered monthly, but it will be copied into the next production month during the Monthly Close process. So User-Defined Obligation Factors are useful for formulas being used as templates, where the Royalty Formula references, for example a Tract Factor, but the actual value of the Tract Factor is different for each Royalty Obligation using a Royalty Formula that references the ID. This is different from a Monthly Input factor in that these values will be copied during the Monthly Close, so they are for values that stay the same for long periods of time.

Factor

This is the factor that is to be applied in this formula line.

When Factor Type is System Value, the drop-down contains all available system values available for use in the formula. Click Here to see a complete list and description of available system values.

When Factor Type is Fixed Value or Monthly Input Value, the Factor defaults to Miscellaneous and should not be modified. Use the User Description mentioned below to put in a more detailed description as to what this factor represents. Changing the Factor from Miscellaneous can cause confusion when reviewing calculation details on various reports as it may look like it is a System Value being used when it is really a Fixed or Monthly Input factor.

User Description

This is a user-defined field used for reporting purposes, but it can also be used to provide more information regarding what the formula line represents, especially when using sub-calculations and/or memory factors. Once a Factor has been selected, the Factor Description is brought into the User Description field. Once in the User Description field, the User Description may be modified to better describe the formula element (for the Royalty Holder’s benefit) by simply typing over it.

Note: Typing over the description does not change the system description of the selected Factor. It is used to make the formula easier to read and understand.

Fixed Factor

This is an input field for lines where Factor Type is Fixed Value.

• Only enabled when Factor Type is Fixed Value.

• Maximum size is 10v8 and it can be negative.

Note: For factors representing a percentage, ensure that they are entered correctly based on how the Percentage option is set. When Percentage = Yes, the value of the factor is assumed to be a percentage (55.0 for 55%), and the calculation process will automatically divide this by 100 before applying to the formula. When Percentage = No, the value must be entered as a fraction (.55 for 55%).

Percentage

This indicates whether the factor on the line represents a percentage or not. This does not mean that only lines with Percentage = Yes can have factors that represent a percent. It indicates whether a percent factor is represented as a fraction or a percentage. When Percentage = Yes, the value of the factor is assumed to be a percentage (25.0 for 25%) and the formula will automatically translate to a fraction (by dividing the factor by 100) before applying to the formula. When Percentage = No, the value of the factor is taken as-is. If the factor represents a percent and Percentage = No, then it must be calculated/entered as a fraction (.25 for 25%).

Options are Yes/No, with the default of No.

Min

Entering a Min/Max indicates that the result of this formula line has a minimum/maximum value. After the factor has been applied to the royalty calculation, the result is then compared to the Min. If the calculation result is less than the Min entered then the calculation result will be forced to the Min.

Min must be less than or equal to Max. Min will typically only be equal to Max when both are 0.

Max

Entering a Min/Max indicates that the result of this formula line has a minimum/maximum value. After the factor has been applied to the royalty calculation, the result is then compared to the Max. If the calculation result is greater than the Max entered then the calculation result will be forced to the Max.

Max must be greater than or equal to Min. Max will typically only be equal to Min when both are 0.

Allow Negative

This indicates whether the result of this formula line is allowed to be negative. This means the result of the royalty calculation after applying the factor on this line.

Options are Yes/No, with the default of No.

When Allow Negative = No and the result of the royalty calculation after applying the current factor is negative, then the result is forced to zero.

Factor Type is System Value, and the Factor is User-Defined Global Factor

Select User-Defined Global Factor when you have a Royalty that needs to access a value that you enter once and can be used in multiple formulas.

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User-Defined Global Factor ID/Description

This is a type-ahead field where you can select the User-Defined Global Factor that you want to use.

Factor (button)

Use this button when you want to create a new User-Defined Global Factor to be used or when you want to view/modify the value for the selected User-Defined Global Factor. You will be automatically taken to the Royalty User-Defined Global Factor screen. Note: When you have finished saving changes to User-Defined Global Factor or you cancel out of the screen you will be brought back to the Formula screen.

Factor Type is System Value, and the Factor is User-Defined Obligation Factor

Select User-Defined Obligation Factor when you have a Royalty that needs to access a value that you enter once per Royalty Obligation.

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User-Defined Obligation Factor ID/Description

This is a type-ahead field where you can select the User-Defined Obligation Factor that you want to use.

Factor (button)

Use this button when you want to create a new User-Defined Global Factor to be used or when you want to view/modify the description of the selected User-Defined Obligation Factor. You will be automatically taken to the Royalty User-Defined Obligation Factor screen. You cannot enter a value for the User-Defined Obligation Factor using this button, as these factors are entered at the Royalty Obligation level. Note: When you have finished saving changes to User-Defined Obligation Factor or you cancel out of the screen you will be brought back to the Formula screen.

Factor Type is System Value, and the Factor is Mole Factor.

Select Mole Factor as the Factor when you have a Royalty that needs to take into account the entity analysis and, more specifically, the portion of a specific component within that analysis.

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Gas Component Type

Indicate the component whose Mole Factor you want to use.

Options Include:

• N2 - Nitrogen

• CO2 - Carbon Dioxide

• H2S - Hydrogen Sulphide

• C1 - Methane

• C2 - Ethane

• C3 - Propane

• IC4 - ISO Butane

• NC4 - Normal Butane

• IC5 - ISO Pentane

• NC5 - Normal Pentane

• C6 - Hexane

• C7 - Heptane Plus

Factor Type is System Value, and the Factor is one of:

• Sales Value: Ownership

• Sales Value: Ownership Gas and Products

• Sales Value: Ownership Gas and Prod NET of TC

• Sales Volume: Ownership

Select one of the Ownership-based factors when you have a Royalty that needs to take into account only a portion of Sales and not all Sales for the entity (which is the default when a Sales-based factor is used). There are two main ways in which you can indicate the portion of sales you want to include: by Owner and by Destination.

Ownership Type is Owner ID:

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Ownership Type is Participant Types:

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Ownership Type

Indicate how you are going to specify whose sales you want to include in the factor.

Options Include:

• Owner ID - include sales allocated to one specific owner

• Participant Types - include sales allocated to all owners with the included Participant Types (i.e., only include sales from Working Interest Owner and Working Interest Transfer and ignore sales from TIK royalties, etc.)

All Owners

Displayed only when Ownership Type is Owner ID.

Options are Yes/No. The default is Yes.

Owner ID/Name

This is a type-ahead field where you can select the Owner ID that you want to include.

Displayed only when All Owners is No.

Available Participant Type

This is a shuttle-box where you can choose the Participant Types that you want to include. You can choose one or more Participant Types.

Displayed when Factor has Ownership Type = Participant Types.

You transfer the Participant Types you want to include from the left-hand side of the shuttle-box to the right-hand side.

All Dispositions

Indicates whether to include sales to all sales destinations.

Options are Yes/No. The default is Yes.

Delivery System ID/Gov't Code/Name

This is a type-ahead field where you can select the Delivery System that you want to include.

Displayed when All Dispositions is No.

Factor Type is System Value, and the Factor is one of:

• Facility Charge: Value

• Facility Charge: Volume

Select one of the Facility Charge-based factors when you have a Royalty that needs to take into account the results of Facility Charge calculations.

Note: 

• Zero will be returned as the value for the factor if no charges are found matching the criteria.

• Facility charges for products gas and raw gas will be considered gas for Royalty Obligations.

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Facility Charge Type

This indicates the Charge Type of the Facility Charge result you wish to use as a factor.

Options include a full list of all the Facility Charge Types that you have set up.

Sequence Number

This indicates the Sequence Number of the Facility Charge result you wish to use as a factor.

This field is optional. If left blank the results of all Facility Charges that match the other criteria will be accumulated and used as the factor on this formula line.

Match Obligation Product

This indicates whether you want to specify the Product of the Facility Charge result you wish to use as a factor or want to have the product depend upon the product of the Royalty Obligation using this formula.

Options are Yes/No. The default is Yes.

When No, you must enter a Facility Charge Product.

Example: Factor is set up with Charge Type = 05 Marketing Fees, Sequence Number = blank (all sequences), and Match Obligation Product = Yes. The formula is used on both a C3 - Propane and a C5 - Pentane royalty for Well1. When the C3 royalty is calculated, all C3 charges with a Charge Type of 05 Marketing Fees allocated to Well1 will be accumulated and used as the factor. When the C5 royalty is calculated, all C5 charges with a Charge Type of 05 Marketing Fees allocated to the Well1 will be accumulated and used as the factor.

Facility Charge Product

This indicates the Product of the Facility Charge(s) result you wish to use as a factor.

Enabled only when Match Obligation Product is No.

Options include all Qbyte Metrix products that are valid for Facility Charges, including N/A (Not Applicable).

Example: Factor is set up with Charge Type = 05 Marketing Fees, Sequence Number = blank (all sequences), Match Obligation Product = No, and Facility Charge Product = N/A (Not Applicable). The formula is used on both a C3 - Propane and a C5 - Pentane royalty for Well1. When the C3 royalty is calculated, all N/A charges with a Charge Type of 05 Marketing Fees allocated to Well1 will be accumulated and used as the factor. When the C5 royalty is calculated, all N/A charges with a Charge Type of 05 Marketing Fees allocated to Well1 will be accumulated and used as the factor.

Factor Type is System Value, and the Factor is one of:

• Royalty : Volume

• Royalty : Value

Select one of the Royalty-based factors when you have a Royalty that needs to take into account the results of another Royalty calculation.

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Royalty Sequence #

This indicates the Royalty Sequence Number of the Royalty results that you want to include.

Note: The Royalty Sequence Number of the Royalty results that you want to use must be lower than the Royalty Sequence Number of the current Royalty to ensure that the Royalties are calculated in the correct order.

Operator is one of:

• Round Value

• Truncate Value

Select the Round Value or Truncate Value operators when you need to follow strict calculation rules (i.e., IOGC royalty formulas).

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Decimal Places

This represents the number of decimal places for a Round or Truncate operation.

• Must be within 0 - 9.

Factor Type is System Value, and the Factor is Table Lookup Factor

Select a Table Lookup Factor when you have a range of factor values that need to be applied to the formula depending upon the current result of the formula. This type of factor can be particularly useful for sliding scale royalties. Note: There can only be one Table Lookup per formula. You can use the same Table Lookup on multiple lines in the formula, but they will all reference the same Table Lookup.

In this example, we have a factor that decreases depending upon the value. If value is < 100, then the factor will be 15. For values >= 100 and < 200, the factor will be 12.5. And finally for values >= 300, the factor will 10.

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Edit (button)

To create/modify the contents of the Table Lookup, click the Edit button to the right of the User Description.

If Greater Than or Equal To

This represents the range for current result values.

Factor To Use

This represents the factor value to use when the current result falls into the range specified in If Greater Than or Equal To.

Apply (button)

Apply the changes made to the Table Lookup and return to the Formula.

Revert (button)

Revert any changes made to the Table Lookup and return to the Formula. Note: This will revert any changes made to the Table Lookup since the last save of the entire formula.

Add (button)

Add a new row to the Table Lookup.

Delete (button)

Delete a row in the Table Lookup.

Copy (button)

Use this button when you want to use a copy of the current Royalty Obligation to create a new Royalty Obligation. The information associated with the current Royalty Obligation is put into the clipboard and the Create New screen is displayed.

Data in the Clipboard and on a Create New screen

Paste (button)

Use this button when you want to paste the information from the clipboard into the new Royalty Obligation. Note: Once there is data in the clipboard, it can be pasted multiple times to create new obligations.

Another option that allows you to copy multiple obligations at the same time is Copy Royalties.

Product

This indicates the Product that the royalty should be calculated on.

Options include:

• RAWGAS - Raw Gas

• OIL - Oil

• GAS - Gas

• CO2 - Carbon Dioxide

• CO2MX - Carbon Dioxide Mix

• CO2SP - Carbon Dioxide Spec

• C1MX - Methane Mix

• LITEMIX - Lite Mix

• COND - Condensate

• LPGNGL - LPG/NGL

• C2 - Ethane

• C2MX - Ethane Mix

• C2SP - Ethane Spec

• C3 - Propane

• C3MX - Propane Mix

• C3SP - Propane Spec

• C4 - Butane

• C4MX - Butane Mix

• C4SP - Butane Spec

• IC4MX - Iso-Butane Mix

• IC4SP - Iso-Butane Spec

• NC4MX - Normal Butane Mix

• NC4SP - Normal Butane Spec

• C5 - Pentane

• C5MX - Pentane Mix

• C5SP - Pentane Spec

• IC5MX - Iso-Pentane Mix

• IC5SP - Iso-Pentane Spec

• NC5MX - Normal Pentane Mix

• NC5SP - Normal Pentane Spec

• C6 - Pentane Plus

• C6MX - Pentane Plus Mix

• C6SP - Pentane Plus Spec

• SUL - Sulphur

• BYP - Liquid by-products

  • Sometimes there is a single royalty agreement that covers all gas by-products for a well/tract. Typically, in Qbyte Metrix a separate Royalty Obligation would need to be set up for each gas by-product covered by the royalty agreement. This means that any changes to that single royalty agreement would have to be made multiple times. The alternative is to set up the Royalty Obligation using BYP as the Product and specifying which liquid by-products are to be included.

  • Cannot be used when Royalty Type is IOGC.

  • DOI Extension cannot be used.

  • TIK Royalties should be set up at the individual products, so those products should not be included in the list of by-products included in the BYP royalty.

In most cases, only data for the Product selected is used and there is only one royalty result for the obligation. However, there are a few exceptions to this.

The first exception occurs when a Parent product is selected, but the data for the well/tract is at the Child product level, or a combination of Child and Parent products at various facilities.

• If a non-TIK Royalty is set up on product C2 then the Royalty will be calculated on the accumulation of C2, C2MX, and C2SP data for the well/tract.

• If a non-TIK Royalty is set up on product C3 then the Royalty will be calculated on the accumulation of C3, C3MX, and C3SP data for the well/tract.

• If a non-TIK Royalty is set up on product C4 then the Royalty will be calculated on the accumulation of C4, C4MX, C4SP, IC4MX, IC4SP, NC4MX, and NC4SP data for the well/tract.

• If a non-TIK Royalty is set up on product C5 then the Royalty will be calculated on the accumulation of C5, C5MX, C5SP, IC5MX, IC5SP, NC5MX, and NC5SP data for the well/tract.

• If a non-TIK Royalty is set up on product C6 then the Royalty will be calculated on the accumulation of C6, C6MX, and C6SP data for the well/tract.

• If a TIK Royalty is set up on C3, then the Royalty is calculated on each of the individual products separately. Since the Royalty volume must be netted off the sales split, it must be at the same product as the sales. For example, if a C3 TIK Royalty is set up on a well/tract that has both C3MX and C3SP production, then there will be two calculation results: one for the C3MX portion of the Royalty and one for the C3SP portion of the Royalty. 

The second exception is when the Product selected is BYP.

• If a Royalty is set up on BYP then the Royalty is calculated on each of the individual products identified as being By-products for this obligation, separately. There will be a separate calculation result for each By-product.

Product is BYP

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For more information on setting up BYP royalties see How To: Set Up BYP Liquid By-Products.

Products Included

This is a link to the pop-up screen, displayed above, that indicates which liquid by-products are to be calculated using this obligation. Use this to view/maintain which liquid by-products are to be included in the Royalty Obligation. Initial selections will be based on corporate defaults. However, each Royalty Obligation can modify the selections to match their unique requirements.

• Note: Taken In Kind Royalties should be set up at the individual products, so those products should not be included in the list of by-products included in the BYP royalty.

When the Royalty Obligation is using the corporate defaults, the pop-up will show System Level as the heading for the list of by-products. Note: The corporate defaults are set up on the Royalties tab of the System Configuration screen.

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When the Royalty Obligation has modified the by-product selections, the pop-up will show Obligation Level as the heading. To modify the selections back to using the corporate defaults, click the Set to System button.

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Obligation #

This indicates a sequential number to differentiate multiple royalties for the same product. This field will be pre-populated based on the largest existing Obligation # for the same product and then incremented by 1. When there are no existing obligations this will default to 0001. Note: It is recommended that you use a four-digit format (i.e., 0001).

Typically, the Obligation # assigned to a particular Royalty Obligation does not matter. However, you may need to consider how you are numbering the obligations when you have dependencies between obligations at the same well/tract. There are two ways in which dependencies are created and both require that the Royalty Obligations be calculated in a specific order. Note: In general, Royalty Obligations are calculated in ascending order of Obligation #.

• Using a Royalty Formula that references the result of another Royalty Obligation.

• Using a Royalty Formula that references a User-Defined Global Factor that was populated by another Royalty Obligation.

Active

This indicates the status of the Royalty Obligation.

Options include:

• Yes - This indicates that the obligation is active and should be calculated and booked during Step Processing.

  • Default value.

• No - This indicates that the obligation is Inactive. Inactive obligations are calculated during the Step Processing, but they are not booked. The ability to inactivate a Royalty Obligation is most helpful when you need to set up obligations to test potential changes, etc., without having to book into financial before testing is complete (due to a Royalty review process or audit review).

  • Inactive Non-TIK Royalty Obligations are calculated as part of Step06 - Freehold and Override and will appear on various Qbyte Optix Royalty Calculation reports (indicating that they are Inactive), allowing you to review and test as needed.

  • Inactive TIK Royalty Obligations are calculated as part of Step02 - Sales and Transfers, but the splits will not be impacted. The Royalty Calculation Details report will not display the distribution of the expense as an Inactive TIK Royalty will not adjust the split, and therefore the distribution is not available to be reported. However, the results can still be validated using various other Qbyte Optix Royalty Calculation reports.

  • During Step02 (TIK royalties) and Step06 (non TIK royalties), if any errors occur on an Inactive Royalty Obligation, they will still be displayed as errors in the Message Centre, but processing will continue.

  • If an Inactive Royalty Obligation is made active in an amendment month, the newly activated Royalty Obligation will appear on the Financial Interface Voucher with no reversal (since the Inactive Obligation would not have been originally booked).

  • If a previously booked (active) Royalty Obligation is made inactive in an amendment month, the previously booked Obligation will be reversed out on the Financial Voucher, but the inactive Obligation will not be re-booked.

  • Note: Inactive Royalty Obligations will never appear on the Financial Voucher. Inactive IOGC Royalties are also not included in the IOGC calculations. 

  • For more information, see How To Inactivate a Royalty Obligation.

• Pending - This indicates that the obligation is in the process of being set up. The Pending status is useful when you are implementing new royalties and you do not yet have a Formula, but you want to at least enter a header or placeholder for the obligation. At some point in the future, a Pending obligation would typically become Active once an appropriate Formula has been determined and verified.

  • Obligations with this status will not be calculated and can be created without a Royalty formula. 

• Expired - This indicates that the obligation is in the process of being removed. The Expired status is most useful prior to removal of an obligation, i.e., for TIK royalties where the Royalty Owner may still have inventory that they have yet to dispose of. The Obligation Master must remain in existence until all inventory is disposed of (as the TIK royalties are not booked until the volumes are disposed). The obligation can be updated to be Expired, thereby not calculating a Royalty while also providing you with the ability to identify Royalty Obligations that are pending deletion.

  • Obligations with this status will not be calculated and can have a blank Royalty Formula.

Royalty Owner

This is a type-ahead field where you can select the Owner ID representing to whom the royalty is owed. You can also use the Advanced Search.

When the Royalty Owner is not a resident of Canada, NRT = Yes on the Owner Maintenance, the NRT (Non-Resident Withholding Tax) will be calculated for the royalty. NRT is not calculated on Taken In Kind royalties. By default the NRT will be calculated using the Default NRT Rate on the System Configuration screen's Configuration tab. However, each Royalty Owner may have a NRT Override Rate entered on the Owner Maintenance to be used when calculating the NRT. (Note: For booking purposes the generated Entry Definition for the NRT associated with the royalty will have a General type based on the Royalty Type and a Specific type of NRW.

Note: Over time, the Royalty Owner may change due to acquisitions, inheritance, etc. Instead of changing the Royalty Owner on each obligation, in each production month, use the Royalty Owner Mass Update to make the modifications more quickly and more efficiently.

Royalty Type

This indicates the type of royalty being calculated. This is used to differentiate booking and can also impact how the results are used (as for IOGC obligations).

Options include:

• Crown - Crown royalties are usually set up at the Well Master, but non-standard formulas can be set up with an Obligation Master.

  • For booking purposes the generated Entry Definition will have a General type of CRWN and a Specific type of ROY.

    • Note: Standard provincial crown royalties, not using obligations, will have a General type of ROY and a Specific type of CRWN.

• Freehold - Freehold royalties are Royalty Obligations that are payable to individuals or corporations that own the mineral rights to the pool that the well has been drilled into.

  • For booking purposes the generated Entry Definition will have a General type of FRHD and a Specific type of ROY.

• Override - Overriding royalties are Royalty Obligations that have been granted to an individual or corporation. These may be granted because of an agreement between the company operating the well and the individual or corporation.

  • For booking purposes the generated Entry Definition will have a General type of ORR and a Specific type of ROY.

• IOGC - IOGC royalties are obligations for well/tracts drilled on various First Nation Reserves that have obligations payable to the IOGC.

  • For booking purposes the generated Entry Definition will have a General type of INDN and a Specific type of ROY.

  • Note: For royalties payable to the IOGC, more than just a Royalty Obligation must be set up. See  IOGC Royalty Configuration and Processes for more information.

• Other - Royalties that are not satisfied by the other type options.

  • For booking purposes, the generated Entry Definition will have a General type of OTHR and a Specific type of ROY.

• F-Class Crown - Cash-based Crown royalties in AB (i.e., Alberta oil wells that are not able to deliver their Royalty in kind).

  • For booking purposes, the generated Entry Definition will have a General type of FCLS and a Specific type of ROY.

  • For more information, you can watch the Quick Byte video called F Class Alberta Oil Crown Royalties at Instructional Videos.

Note: Specific type for Entry Definitions may be modified from the simple ROY to indicate Tax Type and/or Taken In Kind. See description of those fields for more details.

Override Royalty Entity ID

This is a type-ahead field where you can select a Royalty Entity ID. This is used when the same well/tract has to calculate/report royalties to the IOGC under more than one Royalty Entity ID. You can specify a Royalty Entity ID on the obligation that is different to the one set up at the corresponding Well/Unit.

Enabled only when Royalty Type is IOGC.

Note: Since the Royalty Entity IDs referenced here are typically not those in use at the Well/Unit level you may need to create a new Royalty Entity ID. See Create New Royalty Entity ID for more information.

Taken In Kind

This indicates whether the Royalty Owner is receiving Cash for the royalty owed to them or they want to receive the Volume equivalent.

Options include:

• Yes - The Royalty Owner is receiving Volume as payment.

  • When selected, you must keep Payment Type in sync by setting it to Taken In Kind.

• No - The Royalty Owner is receiving Cash as payment.

  • Default value.

  • IOGC royalties must be No.

Taken In Kind royalties have a number of specific requirements, given that they need to calculate a volume not a dollar amount, and that the volume is transferred to the Royalty Owner from each partner in the well/tract responsible for paying the royalty, prior to Step02 - Sales and Transfers so that the split volumes can be calculated correctly.

• Royalty Formula selected must calculate a volume as its result is not a dollar amount.

• Since Taken In Kind royalties are calculated prior to Step02 - Sales and Transfers, the Royalty Formula is limited to which System Value Factor Types it can use, as many of them retrieve data that is not calculated until Step02 or higher. As part of the Step Processing, errors will be generated when calculating a Taken In Kind obligation with not applicable factors being used. The following is a list of System Value Factor Types that are applicable.

  • Crown Royalty Volume

  • Days in Production Month

  • Memory 1 - 9

  • Production Volume

  • Production: by Facility

  • Factor = SUB group total (sub-calculation)

  • Table Lookup Factor

  • User Defined Global Factor

  • User Defined Obligation Factor

• For units that span batteries (unit wells attached to more than a single battery) or when a well/tract can produce the same product from multiple facilities (gas swinging to multiple facilities that produce gas or by-products), the Royalty Obligation is calculated at each producing facility individually. The Royalty Formula should indicate that the calculation is based on the Production: by Facility and not Production Volume. For more information see How Do I Configure Royalty TIK for Wells/Units Spanning Facilities?

• Market Master setup may be required to ensure that the volumes transferred to the Royalty Owner (Participant Type= Production Royalty/Production Royalty Transfer) are handled correctly.

• Entry Definitions require additional setup.
  
  

  • Specific type will be ROYT instead of the standard ROY. (Remember the General type is set based on the Royalty Type.)

  • When the Tax Type is not Exempt, the Specific type is modified to reflect the Tax Type: RYPT - for Production and RYRT - for Resource.

Tax Type

This indicates a categorization used for Canadian tax reporting purposes. Note: As of the 2000 tax year, the tax reporting changed, and this categorization is no longer mandatory within Production Accounting. However, some clients may still use this to for their own internal purposes and to book obligations with different Tax Types to different financial accounts.

Options include:

• Exempt

• Production

• Resource

This field will default on the creation of an obligation based on the Default Tax Type set up on the Region that the well/tract is attached to, but the user can modify it on each obligation.

When setting this to anything other than Exempt there may be additional set up required on Entry Definitions, depending upon the Book Royalty Tax Type Differently option on the Financial Configuration tab of the Region Maintenance.

• When Book Royalty Tax Type Differently is Yes, the Specific type will reflect the Tax Type (ROYP - for Production and ROYR - for Resource) instead of the standard ROY. (Remember the General type is set based on the Royalty Type.) Note: The Specific types will be different if the obligation is also Taken In Kind. (See the description for Taken In Kind for more information.)

Formula ID

This is a type-ahead to select a Formula ID. Use the Advanced Search link to help you find the correct one, or click the Create New Formula button to create a new User Formula.

A Formula ID is required unless the obligation has Active = Pending or Expired.

Create New Formula (button)

This button will launch the Royalty Formula Maintenance screen. Note: When you have saved the formula you will be returned to the Obligation master tab.

Use of this button is controlled by access to the RoyaltyFormulaEdit (Edit Royalty Formulas) security component.

Payment Type

This indicates additional information regarding the payment of the royalty.

Options include:

• Paid by Self - This is the most common setting and indicates that the royalty is being paid by your company.

  • Default value

• Paid on our Behalf - This indicates that this royalty is being paid by another company and that the Royalty Obligation is set up for confirmation of the other company's calculation.

  • When this option is selected, you must populate the Paid by Owner field.

• Royalty Income - Royalty is payable to yourself. (Royalty Owner represents your company.)

• Taken in Kind - Royalty is paid by volume.

  • Should be selected when the Taken In Kind field was set to Yes.

Paid By Owner

This is a type-ahead for the Owner that is paying the royalty on our behalf. Use the Advanced Search to help find the appropriate Owner.

Should be populated only when Payment Type is Paid on Our behalf.

Note: This is for information purposes only and has no impact on calculation or booking of the royalty.

Function Implementation option Enable the use of Global Obligation Payers is active for Production Date

Payor Type

This is used to indicate whether the payors for the obligation are to be determined based on the Royalty Obligation or to use Corporate information on the Owner Maintenance.

Options include:

• Obligation Level - This means that the exclusion of WIOs from the responsibility of paying the royalty will be done at this obligation (default functionality).

• Global Level - This means that you do not have to specify Exclude WIOs on the obligation. Only those WIOs that are in the DOI associated with the obligation and are identified as a Global Obligation Payor on the Owner Maintenance for the production date will be responsible for paying the obligation.

• See  Global Obligation Payors for more information.

DOI Extension

This indicates the DOI Extension associated with a specific DOI Ownership Exception that you want to use to determine the WIOs that are paying the royalty. This is a drop-down containing the list of available DOI Extensions from DOI Ownership Exceptions for the entity, exception type (based on Royalty Type) and product associated with the obligation.

Leave blank to use DOI. Link to DOI Master for exception DOI. Click the Full DOI button to see all the owners within the selected DOI.

The grid displays the Owners associated with the DOI that will be used to determine which WIOs are paying the royalty. This list will take into account the DOI Extension, if entered. Otherwise, it will display the default DOI. Any Silent Partners will be rolled up into their Parent Owner when displayed.

Open

Exclude

This is used to indicate whether the WIO is to be excluded from the responsibility of paying the royalty or not.

Disabled when Payor Type is Global Level.

Options include:

• Yes - The WIO is not responsible for paying the royalty

• No - The WIO is responsible for paying the royalty

The WIOs with Exclude = No will have their interest % grossed up when one or more WIOs are excluded. The grossed-up interest can be seen in the Adjusted Interest % column.

Note: The use of the Exclude option may eliminate the need for a DOI Exception to be set up for the obligation. This assumes that a simple grossing up of the interest % is all that is required.

Full DOI (button)

Use this button to view the selected DOI with all WIOs, including Silent Partners. This will also display which DOI Sub is being used.

Open

User Defined

These are three fields that clients can choose to capture custom information for the obligation.

Note: The labels for these fields and whether the fields are mandatory can be controlled by clients using the User Defined Labels tab on the System Configuration screen.

Notes and Attachments

This section allows the user to maintain notes and/or attach documents associated with the Royalty Obligation. Note: These notes and attachments are not date effective, so the same notes and attachments will be available in all production months.

For more information on maintaining notes and attachments, see Master and Monthly Notes and Attachments.

Required

This field indicates whether you are expecting the value associated with this Obligation Factor to be non-zero.

Options include:

• Yes - the value must be non-zero, whether entered directly or coming from a User-Defined Global Factor.

  • Default value

  • Error messages will be generated during Step processing when a zero value is retrieved for Required Obligation Factors.

• No - the value can be zero.

Global Factor ID

This is a type-ahead field used to specify the User-Defined Global Factor that you want to use as the value for the Obligation Factor.

This is an optional field.

Factor

This indicates the value to be used for the Obligation Factor when calculating the royalty. You need to be aware of how this Obligation Factor is being used in the formula, so you understand the type of value that needs to be entered. For example, is this Obligation Factor expecting a Percentage field (i.e., 15.0) or a simple factor (i.e., 0.15)?

Maximum size of 10v8. Can be negative.

Note: Must be zero when a Global Factor ID is entered.

Factor (link)

This link launches the Royalty User-Defined Global Factors screen for you to view/create/maintain a User-Defined Global Factor before selecting it for use. You will be brought back to this screen when you Save or Cancel. Note: Your ability to create/modify a User-Defined Global Factor will depend upon the security in place for that functionality as per the Royalty User-Defined Global Factors screen.

Source

Production Date

This indicates the production month for Royalty Obligation(s) that you want to copy.

Entity Type

This indicates the type of entity that has the Royalty Obligation(s) that you want to copy.

Options include:

• Well

  • Default value

• Tract

Entity ID/Name/Government Code

This indicates the identifier of the entity that has the Royalty Obligation(s) that you want to copy. This is a type-ahead field based on the Entity Type selected. You can also use the Advanced Search to find the entity that you require. Note: The type-ahead and Advanced Search will only display entities that have Royalty Obligations in the selected Production Date.

View Source (button)

Use this button to view all the Royalty Obligation(s) found for the Production Date/Entity. The matching Royalty Obligation(s) will be displayed in the grid below the View Source button. Note: If you modify any of the Source criteria you will have to click the View Source button again to refresh the list of matching Royalty Obligations.

After the View Source button is clicked and matching Royalty Obligations are visible in the Source section, you must highlight at least one Royalty Obligation to be copied for the fields in the Destination section to become enabled. Note: You can highlight Royalty Obligations individually or you can use the Select All/Deselect All buttons. Also there are filters on the results grid to help you narrow down the Royalty Obligations you want to highlight.

Select All (button)

Use this button to highlight all the Royalty Obligations populated in the Source section. Note: This will take into account any filters that may have been entered so only filtered records will be highlighted.

Deselect All (button)

Use this button to un-highlight all the Royalty Obligations populated in the Source section. Note: This will take into account any filters that may have been entered so only filtered records will be un-highlighted.

Destination

Entity Type

This indicates the type of entity for which you want to create the Royalty Obligation(s).

Options include:

• Well

• Tract

Note: This will default to be the same Entity Type selected in the Source section but can be modified.

Entity ID/Name/Government Code

This indicates the identifier of the entity for which you want to create the Royalty Obligation(s). This is a type-ahead field based on the Entity Type selected. You can also use the Advanced Search to find the entity that you require. Note: The type-ahead and Advanced Search will not display the Entity selected in the Source. You cannot copy Royalty Obligations to the same well/tract when the Duplication Type is From one Well/Tract to another.

Clear All Royalties First

This indicates whether all existing Royalty Obligations for the Entity specified in the Destination are to be removed before any new Royalty Obligations are created.

Options include:

• Yes - Use this when you want to replace all existing Royalty Obligations with just the Royalty Obligations that you chose to be created. You may want to do this when you have re-structured all your Royalty Obligations (i.e., to start using templated formulas or obligation factors) and you want to replace all existing Royalty Obligations with the newly re-structured versions.

  • Default value

• No - Use this when you want to supplement the existing Royalty Obligations with the Royalty Obligations that you chose to be created. You may want to do this when you have a new royalty obligation that is applicable to multiple well/tracts, but this is an addition to pre-existing obligations.

Obligation Exists

This indicates what to do if there is already a Royalty Obligation with the same Product and Obligation ID for the Entity specified in the Destination. Since each well/tract may have had their Royalty Obligations evolve over time, there is no guarantee that an Oil obligation with Obligation ID 0003 at one well/tract, represents the exact same royalty agreement as an Oil obligation with Obligation ID 0003 at another well/tract. Therefore, it may not always be correct to override pre-existing Royalty Obligations simple because the Product and Obligation ID match.

Note: This field is only enabled when Clear All Royalties First is No. As this is typically an issue when you are supplementing pre-existing obligations with a new obligation.

Options include:

• Update existing Obligation ID - When there is already a Royalty Obligation with the same Product and Obligation ID for the Destination Entity, the existing Destination Royalty Obligation is overridden by the Source Royalty Obligation.
  
  

  • Default value

• Generate new Obligation ID - When there is already a Royalty Obligation with the same Product and Obligation ID for the Destination Entity, a new Obligation ID will be generated for the Destination Entity with the details from the Source Royalty Obligation and the pre-existing Destination Royalty Obligation will be left alone.

  • Note: A new Obligation ID is generated by incrementing the largest Obligation ID found the Destination Entity, Product and Production Date. For example, we are copying an Oil royalty with Obligation ID = 0004 and it already exists for the destination and the destination also has Oil royalties with Obligation IDs 0001, 0003, 0004, 0005, and 0007. When this option is selected instead of replacing obligation 0004, a new obligation with Obligation ID = 0008 will be created.
    
    

Replace Obligation Factor Values

This indicates whether the actual values for Royalty Obligation Factors are to be copied from the Source Royalty Obligations or not. By value, we mean both an actual value entered for the factor or the indication to use a User-Defined Global Factor as the value.

Options include:

• Yes - Any User-Defined Obligation Factors used by any of the Royalty Obligations to be copied will have their entered value replaced. This means that if the User-Defined Obligation Factor(s) already had an entered value for the Destination Royalty Obligation and that Destination Royalty Obligation is being updated, the value will be replaced by the value from the Source Royalty Obligation. If the User-Defined Obligation Factor(s) did not already have an entered value for the Destination Royalty Obligation and that Destination Royalty Obligation is being updated or a new Destination Royalty Obligation is being created, then the User-Defined Obligation Factor(s) will have the value set based on the value from the Source Royalty Obligation.

• No - Any User-Defined Obligation Factors used by any of the Royalty Obligations to be copied will not have their entered value replaced. This means that if the User-Defined Obligation Factor(s) already had an entered value for the Destination Royalty Obligation and that Destination Royalty Obligation is being updated, the value will remain as it existed and will not be replaced by the value from the Source Royalty Obligation. If the User-Defined Obligation Factor(s) did not already have an entered value for the Destination Royalty Obligation and that Destination Royalty Obligation is being updated or a new Destination Royalty Obligation is being created, then the User-Defined Obligation Factor(s) will have no value set as part of the copy. (The user will have to enter the value for the User-Defined Obligation Factor(s) after the copy is completed using the available methods for doing so.)

  • Default value

View Destination (button)

Use this button to view all the Royalty Obligation(s) found for the Production Date/Entity. The matching Royalty Obligation(s) will be displayed in the grid below the View Destination button. Note: If you modify any of the Source criteria you will have to click the View Source button again to refresh the list of matching Royalty Obligations.

After the View Destination button is clicked and potential Royalty Obligations are visible in the Destination section, you must highlight at least one Royalty Obligation to be updated/created for the fields in the Perform Duplication button to become enabled. Note: You can highlight Royalty Obligations individually or you can use the Select All/Deselect All buttons. Also there are filters on the results grid to help you narrow down the Royalty Obligations you want to highlight.

Select All (button)

Use this button to highlight all the Royalty Obligations populated in the Destination section. Note: This will take into account any filters that may have been entered so only filtered records will be highlighted.

Deselect All (button)

Use this button to un-highlight all the Royalty Obligations populated in the Destination section. Note: This will take into account any filters that may have been entered so only filtered records will be un-highlighted.

Perform Duplication (button)

Use this button to execute the actual copying and creating of Royalty Obligations at the Destination Entity.

Source

Production Date

This indicates the production month for Royalty Obligation(s) that you want to copy.

Entity Type

This indicates the type of entity that has the Royalty Obligation(s) that you want to copy.

Options include:

• Well

  • Default value

• Tract

Entity ID/Name/Government Code

This indicates the identifier of the entity that has the Royalty Obligation(s) that you want to copy. This is a type-ahead field based on the Entity Type selected. You can also use the Advanced Search to find the entity that you require. Note: The type-ahead and Advanced Search will only display entities that have Royalty Obligations in the selected Production Date.

View Source (button)

Use this button to view all the Royalty Obligation(s) found for the Production Date/Entity. The matching Royalty Obligation(s) will be displayed in the grid below the View Source button. Note: If you modify any of the Source criteria you will have to click the View Source button again to refresh the list of matching Royalty Obligations.

After the View Source button is clicked and matching Royalty Obligations are visible in the Source section, you must highlight at least one Royalty Obligation to be copied for the fields in the Destination section to become enabled. Note: You can highlight Royalty Obligations individually or you can use the Select All/Deselect All buttons. Also there are filters on the results grid to help you narrow down the Royalty Obligations you want to highlight.

Select All (button)

Use this button to highlight all the Royalty Obligations populated in the Source section. Note: This will take into account any filters that may have been entered so only filtered records will be highlighted.

Deselect All (button)

Use this button to un-highlight all the Royalty Obligations populated in the Source section. Note: This will take into account any filters that may have been entered so only filtered records will be un-highlighted.

Destination

Start Date

This indicates the beginning of the date range that you want to copy the Royalty Obligations into.

• Production Date format (YYYYMM).

Note: The Source Production Date must not be within the Destination Date Range (determined by Start Date and End Date).

End Date

This indicates the end of the date range that you want to copy the Royalty Obligations into.

• Production Date format (YYYYMM).

• Must be equal to or larger than Start Date.

Note: The Source Production Date must not be within the Destination Date Range (determined by Start Date and End Date).

Clear All Royalties First

This indicates whether all existing Royalty Obligations for the Entity specified in the Destination are to be removed before any new Royalty Obligations are created.

Options include:

• Yes - Use this when you want to replace all existing Royalty Obligations with just the Royalty Obligations that you chose to be created. You may want to do this when you have re-structured all your Royalty Obligations (i.e., to start using templated formulas or obligation factors) and you want to replace all existing Royalty Obligations with the newly re-structured versions.

  • Default value

• No - Use this when you want to supplement the existing Royalty Obligations with the Royalty Obligations that you chose to be created. You may want to do this when you have a new royalty obligation that is applicable to production months, but this is an addition to pre-existing obligations.

Replace Formulas

This indicates what to do when a Royalty Obligation being copied references a Royalty Formula that already exists for one or more production months within the Destination Date Range.

Options include:

• Yes - When the Royalty Formula already exists in the Destination Production Month, that month's version of the Royalty Formula should be overridden with the version from the Source Production Month.

• No - When the Royalty Formula already exists in the Destination Production Month, that month's version of the Royalty Formula should not be modified.

  • Default value

Replace Global Factor Values

This indicates whether we want to update the entered value for User-Defined Global Factor(s) that are referenced in any Royalty Formulas that we may be modifying as part of the copy.

Note: This field is only enabled when Replace Formulas is Yes.

Options include:

• Yes - Any User-Defined Global Factors used by any of the Royalty Formulas to be copied will have their entered value replaced. This means that if the User-Defined Global Factor(s) already exists in the Destination Production Month, the value will be replaced by the value from the Source Production Month.

  • You must be careful when indicating that you want to Replace Global Factor Values. Typically, User-Defined Global Factors are used for user-entered values that are used across many Royalty Formulas and/or their value is quite static and therefore does not require changing each month. You need to understand that type of User-Defined Global Factors being used in the Royalty Formulas impacted and whether it is safe to override their value in different production months.

• No - Any User-Defined Global Factors used by any of the Royalty Formulas to be copied will have their entered value left alone. This means that if the User-Defined Global Factor(s) already exists in the Destination Production Month , the value will not be replaced by the value from the Source Production Month.

  • Default value

Note: Regardless of the choice, when the User-Defined Global Factor(s) does not already exist in the Destination Production Month, the User-Defined Global Factor will be created and the value from the Source Production Month will be used to populate the value in the Destination Production Month.

View Destination (button)

Use this button to view all the Royalty Obligation(s) found for the Destination Date Range. The matching Royalty Obligation(s) will be displayed in the grid below the View Destination button. Note: If you modify the Start Date and/or End Date you will have to click the View Destination button again to refresh the list of Royalty Obligations.

After the View Destination button is clicked and potential Royalty Obligations are visible in the Destination section, you must highlight at least one Royalty Obligation to be updated/created for the fields in the Usage and Perform Duplication buttons to become enabled. Note: You can highlight Royalty Obligations individually or you can use the Select All/Deselect All buttons. Also there are filters on the results grid to help you narrow down the Royalty Obligations you want to highlight.

Select All (button)

Use this button to highlight all the Royalty Obligations populated in the Destination section. Note: This will take into account any filters that may have been entered so only filtered records will be highlighted.

Deselect All (button)

Use this button to un-highlight all the Royalty Obligations populated in the Destination section. Note: This will take into account any filters that may have been entered so only filtered records will be un-highlighted.

Usage (button)

Use this button to review any Royalty Formulas and/or Royalty Obligations that may be impacted by our copy due to updating Royalty Formulas and/or User-Defined Global Factor values.

Note: This button is only enabled when Replace Formulas is Yes. As only when we have the potential for changing Royalty Formulas and/or User-Defined Global Factors do we need to understand any impacts outside of our current Source Entity.

Perform Duplication (button)

Use this button to execute the actual copying and creating of Royalty Obligations for the Destination Date Range.

Note: It is recommended that you use the Usage button to review any potential impacts before you execute the copy.

Calc Oil Royalty Effective Rate based on Prod when No Sales

When this option is active and a Royalty Obligation that meets the following criteria is encountered, the Effective Rate used to calculate the Royalty Volume will be the Royalty Value divided by (Wellhead Oil Production multiplied by Oil Battery Default Price). The Royalty Volume will then be calculated as Wellhead Oil Production multiplied by the Effective Rate. Otherwise, the Effective Rate will continue to be calculated using Sales Value (Royalty Value divided by Sales Value), with the Royalty Volume being calculated as Oil Sales Volume multiplied by the Effective Rate and may still result in a Royalty Volume of zero.

This only takes affect when a Royalty Obligation satisfies the following conditions:

• Oil Royalty Obligation

• Not Taken-In-Kind

• No Oil Sales Volume or Value for well/tract

• Wellhead Oil Production greater than zero

• Battery Oil Default Price non-zero

Note: This option requires a Start Date when activated. By default, this functionality will not be activated. You must explicitly activate this functionality (if required). A Start Date was implemented for this option to ensure that prior period results are not impacted unless you wish to implement the functionality retroactively by using an earlier Start Date.

Enable the use of Global Obligation Payors

When this option is active you can make use of the Global Payors for Royalty Obligations which can reduce the amount of effort to maintain Royalty Obligations due to DOI changes.

• See  Global Obligation Payors for more information.

Note: This option requires a Start Date when activated. By default, this functionality will not be activated. You must explicitly activate this functionality (if required).

IOGC Only Voucher

When this option is active you can create a Financial Voucher that contains only IOGC Royalty Obligations.

• See IOGC Only Voucher for more information.

Note: By default, this functionality will not be activated. You must explicitly activate this functionality (if required).

Crown Royalty Value

This is the oil Crown Royalty value for the well.

Crown Royalty Volume

This is the oil Crown Royalty volume for the well.

Crown: MB FH Tax $

This is the calculated Manitoba Freehold Tax for the well/tract.

Daily Gas Volume

Total gas production divided by total production hours multiplied by 24.

Note: Gas Production Volume is divided by Total Production Hours, rounded to 8 decimals, then that is multiplied by 24, again rounded to 8 decimals to determine the resulting Daily Gas Volume.

This factor will only calculate a value when used in a formula attached to a Well obligation. This is not available for Tracts.

Daily Oil Volume

Total oil production divided by total production hours multiplied by 24.

Note: Oil Production Volume is divided by Total Production Hours, rounded to 8 decimals, then that is multiplied by 24, again rounded to 8 decimals to determine the resulting Daily Oil Volume.

This factor will only calculate a value when used in a formula attached to a Well obligation. This is not available for Tracts.

Days in Production Month

The maximum number of days in the production month for which the formula is being run.

Note: This is based on calendar days, not producing days, and will take into account Leap Years.

Facility Charge: Value

This item is selected if you are required to take into account the value results of Facility Charge calculations in your royalty calculations. For example, you want to deduct marketing fees calculated/allocated to the well/tract in the Facility Charge process, from the royalty calculation.

You will be required to enter Facility Charge Type, Sequence Number(s), and Product to identify the Facility Charge(s) that you want to include.

Facility Charge: Volume

This item is selected if you are required to take into account the volume results of Facility Charge calculations in your royalty calculations.

You will be required to enter Facility Charge Type, Sequence Number(s), and Product to identify the Facility Charge(s) that you want to include.

Factor = SUB Group Total

This variable defines the beginning of a mathematical bracket calculation or sub-calculation and is the first line of the sub-calculation.

Once the Factor is selected and brought into the Description field, the label may be changed to properly identify the calculation being performed (i.e., Calculate Processing Deduction) by typing over it.

Once this selection has been completed, the next step is to build the actual mathematical sub-calculation line by line. All variables and operations within the sub-calculation will be performed before proceeding with the remaining formula elements.

Federal %

This is the federal percent from the Well Production Master.

Freehold %

This is the freehold percent from the Well Production Master.

This factor will only calculate a value when used in a formula attached to a Well obligation. This is not available for Tracts.

Gathered Volume

This is gas produced less any fuel/flare/vent at the well/tract.

Gathered: Inlet

This is the volume of raw gas delivered to the plant inlet for each well.

Gathered: Well/Battery

Calculated well gathered volume: Well gathered divided by battery gathered multiplied by total gas dispositions.

This factor will only calculate a value when used in a formula attached to a Well obligation. This is not available for Tracts.

Memory 1 through 9

Values calculated in a formula can be stored and recalled using the memory variables.

Mole Factor

Requires you to enter the Gas Component Type and will retrieve the Mole Factor for that component on the well analysis.

This factor will only calculate a value when used in a formula attached to a Well obligation. This is not available for Tracts.

Price: Average Unit

This is the average unit price for the product, calculated by using the Gross Sales Value (not including transfer and TIK partner pricing) divided by the Gross Sales Volume (not including transfer and TIK partner pricing).

Note: For Oil Royalties at an entity that has Oil production but no sales, the Average Unit Price is calculated by using the entered Default Price for Oil (at the producing battery, either Partner Operated or not). For both Operated and Partner Operated entities, the various entered default pricing deductions are then deducted from the Default Price. For Operated entities, the Average Unit Price = Default Price less Default Quality Adj. Rate less Default Tariff Fee Rate less Default Line Loss Rate less Default Other#1 Fee Rate less Default Other#2 Fee Rate. For Partner Operated batteries, the Default Oil Price record (pricing record for Oil Sales, All Purchasers, All Destinations and with a Pricing Option = Price Per Unit) is used to determine not only the default price but the default pricing deductions. Pricing deductions on the Default Oil Price record must have a Type = Rate to be used as part of the default average unit price calculation.

Price: Average Unit Net of TC

This is the average unit price for the product (as calculated above) less the Transportation entered in the Pricing screen for Operated facilities. For Partner Operated entities, the Average Unit Net of TC is the Average Unit (as calculated above), less the Transportation entered on the Partner Operated Battery Balance - Pricing screen.

Note: For Operated entities, the entered Default Transportation is then deducted from the Average Unit Price (as calculated above). Average Unit Price Net of TC = Default Price less Default Quality Adj. Rate less Default Tariff Fee Rate less Default Line Loss Rate less Default Other#1 Fee Rate less Default Other#2 Fee Rate less Default Transportation Rate. For Partner Operated entities, the Default Oil Price record (pricing record for Oil Sales, All Purchasers, All Destinations and with a Pricing Option = Price Per Unit ) is used to determine not only the default price but the transportation and default pricing deductions. Transportation and pricing deductions on the Default Oil Price record must have a Type = Rate to be used as part of the default average unit price net of transportation calculation.

Price: IOGC Reference

IOGC Oil Reference Price entered for related IOGC Royalty entity ID.

Price: IOGC Reported Sales

Total product sales value divided by total product sales volume

Production Hours

The hours that the well is on production.

This factor will only calculate a value when used in a formula attached to a Well obligation. This is not available for Tracts.

Production Volume

Production volume for the well/tract for the product that the Obligation using the formula is based on. This is the accumulation of all production volume for the well/tract from any facility for the production month.

Note: This should be used for cash-based Royalties only.

Production: by Facility

Production volume for the well/tract for the product that the Obligation using the formula is based on.

Note: This should be used for TIK Royalties only and represents the Production Volume for the Well/tract at each facility that allocates the well/tract production. Since TIK Royalties need to be netted from the Sales Volume to adjust the splits, the Royalty must be calculated at each producing facility independently.

Production: Field Condensate

Oil/Condensate production at the well/tract when the well/tract was flagged as Report Liquid as Condensate = Yes. For tracts, the first well attached to the tract's unit is used to determine if the tract is reporting liquid as condensate (or not).

Note: This does not include any Measured Wellhead Oil/Condensate, only Oil/Condensate volumes included in Measured/Test entries.

Production: Wellhead Gas

Retrieved from the Wellhead tab for Partner Operated wells.

This factor will only calculate a value when used in a formula attached to a Well obligation. This is not available for Tracts.

Production: Wellhead Oil

Retrieved from the Wellhead tab for Partner Operated wells.

Rounded Result

This factor is automatically selected (and cannot be modified) when the Operator is Round Value. Requires you to enter the decimal precision that you need.

Royalty Payer Interest %

IOGC Oil Royalty percentage for the related IOGC Royalty entity ID.

Royalty Value

This item is selected if you are required to pay a Royalty based on another Royalty calculation. Requires you to enter the Royalty Sequence Number of the Royalty that the current Royalty is based upon.

Note: In general, Royalty Obligations for a well/tract are calculated in Obligation ID order, so ensure that the Royalty Obligation that you are referencing has a lower Obligation ID than the Royalty Obligation that is using the formula.

Royalty Volume

This item is selected if you are required to pay a Royalty based on another Royalty calculation. Requires you to enter the Royalty Sequence Number of the Royalty that the current Royalty is based upon.

Note: In general, Royalty Obligations for a well/tract are calculated in Obligation ID order, so ensure that the Royalty Obligation that you are referencing has a lower Obligation ID than the Royalty Obligation that is using the formula.

Sales Gigajoules

This is the actual sales GJs for the well/tract.

Sales Value

Product sales value for the well/tract.

Sales Value NET of TC

Product sales value, net of input transportation costs allocated to the well/tract.

Sales Value: Gas and Prod Net of TC

This is the total sales value of gas plus products, net of input transportation costs allocated to the well/tract.

Sales Value: Gas and Products

This is the total sales value of gas plus products by well/tract. 

Note: If an IOGC Override Gas Sales Value or Contract Value has been entered, it will be used for IOGC royalties.

Sales Value: Ownership

This item is selected if you are required to pay a Royalty based on a certain Working Interest Owner's sales value. You will be prompted for the Working Interest Owner and the Disposition System (i.e., Pipeline ).

Note:

• The product whose sales value is retrieved is based on the product of the Royalty Obligation.

• When an Owner is selected for all Delivery Systems, this value includes any sales for the Owner (from production or royalties that the Owner took-in-kind) plus any sales of volumes that the Owner contributed to another Owner's Taken-in-kind royalties (provincial crown or Royalty Obligations).
  
  

Sales Value: Ownership NET of TC

This item is selected if you are required to pay a Royalty based on a certain Working Interest Owner's sales value net of transportation cost. You will be prompted for the Working Interest Owner and the Disposition System (i.e., Pipeline ).

Note:

• The product whose sales value is retrieved is based on the product of the Royalty Obligation.

• When an Owner is selected for all Delivery Systems, this value includes any sales for the Owner (from production or royalties that the Owner took-in-kind) plus any sales of volumes that the Owner contributed to another Owner's Taken-in-kind royalties (provincial Crown or Royalty Obligations).
  
  

Sales Value: Ownership Gas and Products

This item is selected if you are required to pay a Royalty based on a certain Working Interest Owner's sales value for gas and by-products. You will be prompted for the Working Interest Owner and the Disposition System (i.e., Pipeline).

Note:

• Regardless of the product of the Royalty Obligation, this will retrieve the sum of all gas and by-products sales value.

• When an Owner is selected for all Delivery Systems, this value includes any sales for the Owner (from production or royalties that the Owner took-in-kind) plus any sales of volumes that the Owner contributed to another Owner's Taken-in-kind royalties (provincial Crown or Royalty Obligations).
  
  

Sales Value: Ownership Gas and Prod NET of TC

This item is selected if you are required to pay a Royalty based on a certain Working Interest Owner's sales value net of transportation cost for gas and by-products. You will be prompted for the Working Interest Owner and the Disposition System (i.e., pipeline).

Note:

• Regardless of the product of the Royalty Obligation, this will retrieve the sum of all gas and by-products sales value net of transportation.

• When an Owner is selected for all Delivery Systems, this value includes any sales for the Owner (from production or Royalties that the Owner took-in-kind) plus any sales of volumes that the Owner contributed to another Owner's Taken-in-kind Royalties (provincial Crown or Royalty Obligations).

Sales Volume

This is the sales volume for the well/tract.

Note: If an IOGC Override Gas Sales Volume or Contract Volume has been entered, it will be used for IOGC Royalties.

Sales Volume Net of LF

Product sales volumes less lease fuel sales.

Sales Volume: Gas and Products

This is the total sales volume of gas plus products delivered from the plant by well/tract.

Sales Volume: Ownership

This item is selected if you are required to pay a Royalty based on a certain Working Interest Owner's volume. You will be prompted for the Working Interest Owner and the Disposition System (i.e., Pipeline).

Note:

• The product whose sales volume is retrieved is based on the product of the Royalty Obligation.

• When an Owner is selected for all Delivery Systems, this value includes any sales for the Owner (from production or Royalties that the Owner took-in-kind) plus any sales of volumes that the Owner contributed to another Owner's Taken-in-kind royalties (provincial Crown or Royalty Obligations).

Sales: Plant Condensate

Sales volume for product COND - Condensate for the well/tract.

Store to Global Factor

Store results of the calculation to an existing User-Defined Global Factor ID that you will enter. This User-Defined Global Factor can then be referenced in other Royalty Formulas. When using this you need to ensure that the Royalty Obligation that uses the formula that includes the Store to Global Factor, is calculated before any Royalty Obligations that use a formula that references the same User-Defined Global Factor. This is required to ensure that the correct value is in the User-Defined Global Factor before it is retrieved and used in other formulas. Note: In general, Royalty Obligations for a well/tract are calculated in Obligation ID order, so ensure that the Royalty Obligation that uses the Store to Global Factor has a lower Obligation ID than the Royalty Obligation(s) that retrieve the corresponding User-Defined Global Factor.

Store: IOGC Gross Royalty Percentage

Store the results of the IOGC Royalty gross Royalty percentage for use in further IOGC processing or reporting.

Store: IOGC Heat Content

Store the results of the IOGC Royalty heat content for use in further IOGC processing or reporting.

Store: IOGC Price Per GJ

Store the results of the IOGC Royalty price per GJ for use in further IOGC processing or reporting.

Store: IOGC Reported Sales Price

Store the results of the IOGC Royalty reported sales price for use in further IOGC processing or reporting.

Subtotal

Any calculation within the formula can be subtotaled prior to moving on to the next calculation in the formula. This variable can be used inside or outside a sub-calculation.

Table Lookup Factor

Select a Table Lookup Factor when you have a range of factor values that need to be applied to the formula depending upon the current result of the formula. This type of factor can be particularly useful for sliding scale royalties. Note: There can only be one Table Lookup per formula. You can use the same Table Lookup on multiple lines in the formula, but they will all reference the same Table Lookup.

Truncated Result

This factor is automatically selected (and cannot be modified) when the Operator is Truncate Value. Requires you to enter the decimal precision that you need.

User Defined Global Factor

User-Defined Global Factors are IDs that are set up in Qbyte Metrix and can be referenced in one or more Royalty Formulas, but the actual value of the factor is entered only once. The same value is used by all formulas that reference the ID. The value can be entered monthly, but it will be copied into the next production month during the Monthly Close process. So User-Defined Global Factors are useful for values that are common across a number of formulas and that do not change that often. 

User Defined Obligation Factor 

User-Defined Obligation Factors are like their Global cousin in that they are IDs set up in Qbyte Metrix and can be referenced in one or more Royalty Formulas. The main difference is that the actual value of the factor is entered at each Royalty Obligation using a Royalty Formula that references the ID. The value can be entered monthly, but it will be copied into the next production month during the Monthly Close process. So User-Defined Obligation Factors are useful for formulas being used as templates, where the Royalty Formula references, for example a Tract Factor, but the actual value of the Tract Factor is different for each Royalty Obligation using a Royalty Formula that references the ID. This is different from a Monthly Input factor in that these values will be copied during the Monthly Close, so they are for values that stay the same for long periods of time.

Vintage: New Oil %

Retrieved from the Crown tab on the Well Master/Royalties tab (British Columbia wells for dates prior to the implementation of Petrinex and for Manitoba wells).

Vintage: Old Oil %

Retrieved from the Crown tab on the Well Master/Royalties tab (British Columbia wells for dates prior to the implementation of Petrinex and for Manitoba wells).

Well Density

Retrieved from the Crown tab on the Well Master/Royalties tab (Alberta).

This factor will only calculate a value when used in a formula attached to a Well obligation. This is not available for Tracts.

Well Depth

Retrieved from the Well Master for operated wells.

This factor will only calculate a value when used in a formula attached to a Well obligation. This is not available for Tracts.

(CRWN, FRHD, ORR, INDN, FLCS, OTHR)

ROY

Non-TIK (Crown, Freehold, Override, IOGC, F-Class, Other) royalty when the Region is set up with Book Royalty Tax Type Differently as No, or the Tax Type is Exempt.

(CRWN, FRHD, ORR, INDN, FLCS, OTHR)

ROYP

Non-TIK (Crown, Freehold, Override, IOGC, F-Class, Other) royalty when the Region is set up with Book Royalty Tax Type Differently as Yes, and the Tax Type is Production.

(CRWN, FRHD, ORR, INDN, FLCS, OTHR)

ROYR

Non-TIK (Crown, Freehold, Override, IOGC, F-Class, Other) royalty when the Region is set up with Book Royalty Tax Type Differently as Yes, and the Tax Type is Resource.

(CRWN, FRHD, ORR, INDN, FLCS, OTHR)

ROYT

TIK (Crown, Freehold, Override, IOGC, F-Class, Other) royalty when the Region is set up with Book Royalty Tax Type Differently as No, and the Tax Type is Exempt.

(CRWN, FRHD, ORR, INDN, FLCS, OTHR)

RYPT

TIK (Crown, Freehold, Override, IOGC, F-Class, Other) royalty when the Region is set up with Book Royalty Tax Type Differently as Yes, and the Tax Type is Production.

(CRWN, FRHD, ORR, INDN, FLCS, OTHR)

RYRT

TIK (Crown, Freehold, Override, IOGC, F-Class, Other) royalty when the Region is set up with Book Royalty Tax Type Differently as Yes, and the Tax Type is Resource.

(CRWN, FRHD, ORR, INDN, FLCS, OTHR)

NRW

Non-Resident Withholding Tax calculation on the (Crown, Freehold, Override, IOGC, F-Class, Other) royalty.