MFI-2 1968 Model Form Accounting Procedure Intepretation

This document provides recommendations to aid in the interpretation and application of the 1968 Model Form so there can be a comon ground of understanding in negotiations.  Users will read detailed recommendations ane esplanations for five major sections of the accounting procedure:  General Provisions, Direct Charges, Indirect Charges, Basis for Charges to Joint Account, and Disposal of Material.   43 pages. Pub 1969.

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Table of Contents

  1. FOREWORD
  2. SPECIMEN, FORM 601 COPAS-1968
  3. GENERAL PROVISIONS
    1. Definitions
    2. Statements and Billings
    3. Advances and Payments by Non-Operators
    4. Adjustments
    5. Audits
    6. Approval by Non-Operators
  4. DIRECT CHARGES
    1. Lease Rentals and Royalties
    2. Labor
    3. Employee Benefits
    4. Material
    5. Transportation
    6. Services
    7. Damages and Losses to Joint Property
    8. Legal Expense
    9. Taxes
    10. Insurance
    11. Other Expenditures
  5. INDIRECT CHARGES
    1. District Expense, Administrative Overhead and Warehousing
    2. Combined Rates – Well Basis
    3. Combined Rates – Percentage Basis
    4. Application of Administrative Overhead or Combined Rates – Well Basis
    5. Application of Administrative Overhead or Combined Rates – Percentage Basis
    6. Major Construction Overhead
    7. Amendment of Rates
  6. BASIS OF CHARGES TO JOINT ACCOUNT
    1. Purchases
    2. Material Furnished from Operator’s Warehouse or Other Properties
    3. Premium Prices
    4. Warranty of Material Furnished by Operator
    5. Equipment and Facilities Furnished by Operator
  7. DISPOSAL OF MATERIAL
    1. Material Purchased by Operator or Non-Operators
    2. Division in Kind
    3. Sales to Outsiders
  8. BASIS OF PRICING MATERIAL TRANSFERRED FROM JOINT ACCOUNT
  9. INVENTORIES