To download an interactive Excel spreadsheet rate calculator, please click here  COPAS Overhead Adjustment Factors and Overhead Rate Calculator

To view a chart of current and cumulative escalation factors, please click here  Cumulative COPAS Escalation Percentages as of April 1, 2010

COPAS Accounting Procedures provide for an annual adjustment of the fixed rate overhead for drilling and producing wells. The base overhead rates to which such adjustments apply are contained in the Accounting Procedure attached to each individual Joint Operating Agreement, and are a matter of agreement among the parties thereto. COPAS does not publish or recommend any specific overhead rates or overhead surveys, as the rates are derived through negotiation among the parties to an agreement.  For guidelines in the establishment of an appropriate overhead rate, see AG-23, Overhead Negotiation and Calculation, which is available from our Online Store & Publications.

Note:
After March 2003, the Crude Petroleum and Gas Production Workers index was no longer published and thus not available for use in calculating the annual overhead adjustment called for in the various COPAS model forms. This impacted the adjustments scheduled for April 2004 and later. Research covering 1993 through 2003 showed that by blending the new Oil and Gas Extraction Index with the new Professional and Technical Services Index, the results approximated the data from the no-longer-published Crude Petroleum and Natural Gas Workers Index. Accordingly, COPAS calculated the percentage change in the simple average of the Oil and Gas Extraction Index and the Professional and Technical Services Index commencing in April 2004. In February 2004, the Joint Interest and Audit Committees approved Model Form Interpretation #50 (MFI-50), Overhead Adjustment Index to provide guidance to the industry as to this replacement index for use in calculating the overhead adjustment, as well as other economic factors such as the loading and unloading rates. The change was approved by COPAS at its April 23, 2004, Council Meeting. COPAS' publishing of this rate has been, and continues to be provided as a convenience to the industry. MFI-50 suggests that each company make its own determination as to whether or not it needs to amend its contracts to use this or any other new index.