MFI-19 1986 Offshore Model Form Accounting Procedure Interpretation

This document provides recommendations to aid in the interpretation and application of the 1986 Offshore Model Form so there can be a common ground of understanding in negotiations.  Users will read detailed recommendations and explanations for all five major sections of the accounting procedure:  General Provisions, Direct Charges, Overhead, Pricing of Joint Account Material Purchases Transfers & Dispositions, and Inventories.   40 pages. Pub 1987

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Table of Contents

  1. FOREWORD
  2. Specimen, Form 606 COPAS – 1986
  3. INTERPRETATION
  4. GENERAL PROVISIONS
    1. Definitions
    2. Statements and Billings
    3. Advances and Payments by Nonoperators
    4. Adjustments
    5. Audits
    6. Approval by Nonoperators
  5. DIRECT CHARGES
    1. Rentals and Royalties
    2. Labor
    3. Employee Benefits
    4. Material
    5. Transportation
    6. Services
    7. Equipment and Facilities Furnished by Operator
    8. Damages and Losses to Joint Property
    9. Legal Expense
    10. Taxes
    11. Insurance
    12. Communications
    13. Ecological and Environmental
    14. Abandonment and Reclamation
    15. Other Expenditures
  6. OVERHEAD
    1. GENERAL
      1. Overhead – Drilling and Producing Operations
      2. Overhead – Major Construction
      3. Overhead – Catastrophe
      4. Amendment Of Rates
  7. PRICING OF JOINT ACCOUNT MATERIAL PURCHASES, TRANSFERS AND DISPOSITIONS
    1. Purchases
    2. Transfers And Dispositions
    3. Premium Prices
    4. Warranty Of Material Furnished By Operator
  8. INVENTORIES
    1. Periodic Inventories, Notice And Representation
    2. Reconciliation And Adjustment Of Inventories
    3. Special Inventories
    4. Expense Of Conducting Inventories
  9. Introduction
  10. Background