MFI-21 Overhead Principles

This document provides guidance as to the difference between Indirect Costs (covered by overhead) and Direct Costs and provides an overview of Overhead provisions specific to each Model Form to increase awareness regarding the implications and consequences associated with various Overhead options.  The document includes detailed discussions of District Expense, Administrative overhead, Warehousing, First Level Supervision, Technical Labor, Personal Expenses, Major Construction, Catastrophe, and Project Team Overhead, and several other areas where confusion has existed. 41 pages. Rev. 2002
Includes the Addendum 1 – MFI-21 AD-1 Overhead – Joint Operations, 2005 Accounting Procedure

Clear

$75

Table of Contents

  1. INTRODUCTION
  2. DRILLING AND PRODUCING OPERATIONS – OVERHEAD
    1. METHODS OF RECOVERY
      1. DISTRICT EXPENSE
      2. ADMINISTRATIVE OVERHEAD
      3. WAREHOUSE OPERATING AND MAINTENANCE EXPENSE
      4. COMBINED RATES
      5. FIXED RATE
    2. DIRECT VS INDIRECT COSTS
      1. FIRST LEVEL SUPERVISION
      2. TECHNICAL LABOR
      3. PERSONAL EXPENSES
      4. COST OF CONDUCTING INVENTORIES
      5. FIELD COMPUTER AND COMMUNICATION SYSTEMS
      6. EARLY RETIREMENT INCENTIVE/SEVERANCE COMPENSATION
  3. MAJOR CONSTRUCTION AND CATASTROPHE OVERHEAD
    1. GENERAL COMMENTS
    2. MAJOR CONSTRUCTION OVERHEAD
    3. CATASTROPHE OVERHEAD
  4. PROJECT TEAM OVERHEAD
  5. GLOSSARY
SKU: MFI-21 Categories: ,

Related products

  • AG-22 Producer Gas Imbalances

    This document provides an historical perspective on the reasons for gas imbalances and recommends guidelines necessary to properly identify, reconcile, report, and resolve imbalances among producers. This report was issued in conjunction with the efforts of the INGAA/COPAS/A.G.A. Joint Task Force related to spot and direct gas sales.  111 pages.  2001.

    Clear

    $45

    $45

  • AG-28 Real Time Operations Centers

    This document serves as a reference for operators who utilize remote advanced technology for drilling and completion operations. It is recommended as a guide in (1) identifying accounting treatment options related to those costs, (2) options for securing approvals, if needed, from Non-Operators to pass on costs to the joint account, (3) analysis of the functions and cost components in order to develop an allocation basis, and (4) examples on how costs can be allocated to the properties served. 21 pages.  2008.

    Clear

    $60

    $60

  • AG-24 Notifying Non Operators of Accounting Procedure Deviations

    This document provides guidelines on how to use the Authorization for Expenditure (AFE) approval process or other project proposal process to secure Non-Operator approval to directly charge the Joint Account for costs or services that in the absence of such approval may be considered as covered by Overhead pursuant to the governing Accounting Procedure and/or Operating Agreement.  4 pages. 2001.

    Clear

    $60

    $60