MFI-51 2005 Model Form Accounting Procedure Interpretation

This document provides recommendations to aid in the interpretation and application of the 2005 Project Team 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, Material Purchases Transfers & Dispositions, and Inventories of Controllable Material.  78 pages.  2005

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Table of Contents

  1. FOREWORD
  2. ACCOUNTING PROCEDURE INSTRUCTIONS
  3. GENERAL PROVISIONS
    1. DEFINITIONS
    2. STATEMENTS AND BILLINGS
    3. ADVANCES AND PAYMENTS BY THE PARTIES
    4. ADJUSTMENTS
    5. EXPENDITURE AUDITS
    6. APPROVAL BY PARTIES
  4. DIRECT CHARGES
    1. RENTALS AND ROYALTIES
    2. LABOR
    3. MATERIAL
    4. TRANSPORTATION
    5. SERVICES
    6. EQUIPMENT AND FACILITIES FURNISHED BY OPERATOR
    7. AFFILIATES
    8. DAMAGES AND LOSSES TO JOINT PROPERTY
    9. LEGAL EXPENSE
    10. TAXES AND PERMITS
    11. INSURANCE
    12. COMMUNICATIONS
    13. ECOLOGICAL, ENVIRONMENTAL, AND SAFETY
    14. ABANDONMENT AND RECLAMATION
    15. OTHER EXPENDITURES
  5. OVERHEAD
    1. OVERHEAD—DRILLING AND PRODUCING OPERATIONS
    2. OVERHEAD—MAJOR CONSTRUCTION AND CATASTROPHE
    3. AMENDMENT OF OVERHEAD RATES
  6. MATERIAL PURCHASES, TRANSFERS, AND DISPOSITIONS
    1. DIRECT PURCHASES
    2. TRANSFERS
    3. DISPOSITION OF SURPLUS
    4. SPECIAL PRICING PROVISIONS
  7. INVENTORIES OF CONTROLLABLE MATERIAL
    1. DIRECTED INVENTORIES
    2. NON-DIRECTED INVENTORIES
  8. INTERPRETATION
  9. GENERAL PROVISIONS
    1. DEFINITIONS
    2. STATEMENTS AND BILLINGS
    3. ADVANCES AND PAYMENTS BY THE PARTIES
    4. ADJUSTMENTS
    5. EXPENDITURE AUDITS
    6. APPROVAL BY PARTIES
  10. DIRECT CHARGES
    1. RENTALS AND ROYALTIES
    2. LABOR
    3. MATERIAL
    4. TRANSPORTATION
    5. SERVICES
    6. EQUIPMENT AND FACILITIES FURNISHED BY OPERATOR
    7. AFFILIATES
    8. DAMAGES AND LOSSES TO JOINT PROPERTY
    9. LEGAL EXPENSE
    10. TAXES AND PERMITS
    11. INSURANCE
    12. COMMUNICATIONS
    13. ECOLOGICAL, ENVIRONMENTAL, AND SAFETY
    14. ABANDONMENT AND RECLAMATION
    15. OTHER EXPENDITURES
  11. OVERHEAD
    1. OVERHEAD—DRILLING AND PRODUCING OPERATIONS
    2. OVERHEAD—MAJOR CONSTRUCTION AND CATASTROPHE
    3. AMENDMENT OF OVERHEAD RATES
  12. MATERIAL PURCHASES, TRANSFERS, AND DISPOSITIONS
    1. DIRECT PURCHASES
    2. TRANSFERS
    3. DISPOSITION OF SURPLUS
    4. SPECIAL PRICING PROVISIONS
  13. INVENTORIES OF CONTROLLABLE MATERIAL
    1. DIRECTED INVENTORIES
    2. NON-DIRECTED INVENTORIES