Metered Revenue ‐ what is it? How does it work? How can you make Metered Revenue sound exciting?
We're about to find out! We will delve into the exciting, laugh in the face of danger world of metered revenue! Who knows? It just might be what you're needing to make entering revenue receipts FASTER and EZier! And that's what we're all looking for - fast and EZ…right? Right.
Metered Revenue - it's used to prorate production when gas from several wells is commingled into one purchaser pipeline. It kinda reminds you of a wagon wheel. Gas produced from multiple wells that flow into a single pipeline meter (the center of the wheel) must somehow get allocated back to the individual gas wells (the spokes) that supplied their own individual production volumes, because…well…the ownership might be different on each individual well…right? Right. Gotta pay the right owners and right percentages per well…right? RIGHT!
For operated wells, prior to flowing into the purchaser's pipeline, the volumes produced per well can be measured in a variety of ways.
Some decide to simply pro-rate evenly to all the wells in the wagon wheel. Others use a service that provides some type of source document ‐ a bunch of “figger its” and “gazintas” ‐ for a monthly gauge report or chart integration/allocation for individual well volumes with the percentage allocation of actual production for each well. Still others have a well head meter that measures gas flow per well before it goes into the purchaser's pipeline.
The hard part -
Getting that production calculated and allocated back to the individual wells, and ultimately entered at the individual well level. You've got to figure out a fast and EZ way to allocate it back to the actual wells on which it was produced. See? It can be an accounting nightmare on the allocation part.
It's just math, each well getting a percentage of the whole. But sometime there are LOTS and LOTS of individual wells flowing into a meter. All that production on all those wells has to be allocated. And then of course entered into SSI.
RP03M ‐ Transaction Entry/Maintenance
The EZ part -
You got it…SSI! The beauty of your SSI Oil and Gas Accounting software is that a purchaser pipeline meter can be added, the individual wells that flow into that pipeline meter can be attached, with each well's allocation into RP03M, and can be static. That means the meter and its allocation wells and volumes can stay there until/unless YOU need to change something with the wells flowing into the pipeline. You don't have to re-add the allocation wells or re-key the allocation volumes for each well EVERY. SINGLE. TIME. It's on an as needed/if needed basis.
Worth honorable mention!
A max of 3000 individual wells can be added to a meter and the well volume entry screen!! Sheesh!!
Once the meter and allocation wells with volumes have been added, enter the production at the meter level. Don't worry, the transaction entry for the meter is very similar to standard RP03 transaction entry. No trouble there.
RP03MU ‐ Meter Transactions Allocation Trial/Post
Notice the Trial/Post reference? That's the beauty, SSI provides the opportunity to double-check your work before the buy-off.
Words to live by? On ANYTHING, if you get a trial option, take it. Review it.
A few simple clicks present a trial report of how the volumes are going to allocate to the individual wells. The dialog screen is defaulted as a trial to help you out so you won't post the allocation before you're ready.
Post This Run. When reviewed and approved, one additional click.
Even if posted prematurely, never fear. SSI has utilities to help correct.
IMPORTANT TO KNOW -
What does the meter allocation post REALLY do? Don't be scared of the word “Post”. The Post process is really nothing more than a short-cut for getting revenue entered into RP03. The Post takes the metered revenue added in RP03M, allocates it to the wells, and updates those allocated revenue entries into RP03. One line of transaction to the meter, allocate and post to RP03, rather than manually allocating and then entering 3000 lines of individual well revenue transactions directly into RP03.
SHRINKAGE
What about line loss, aka SHRINKAGE? Yeah…it happens. Production from the run statement isn't going to be the same as what was received on the revenue distribution check, due to SHRINKAGE and LINE LOSS. Fear not, because your SSI Oil and Gas Accounting Software is GOOD at MATH. The allocation volumes entered per well will revert to a ratio between the individual well allocations against the whole, whatever the whole ends up being.
Simple example. Say the field reported 1000 MCF was fed into the pipeline, and there are 5 wells in the wagon wheel ‐ each getting 200 MCF allocation. When all is said and done, the actual revenue receipt is for 900 MCF (with 100 MCF of line loss). Each well will still get 1/5 of the total ‐ but 180 MCF will go to each well (not 200 MCF - even though that's what we put into the meter allocation). It works the same way whether it's allocated evenly to each well or by some other method of allocating. The allocation volumes start as an MCF allocation percentage of the whole, and when the actual production is entered it converts to allocate a ratio percentage of the whole for what was actually received.
FYI ‐ we'd like to know if anyone's ever seen any production “gainage” or “line gain”.
Another honorable mention!
There's an option to import the allocation volumes into the meter from the SSI Production module. And, of course, SSI's Production is integrated with Greasebook. So the field production can be entered in Greasebook, uploaded to SSI Production and then allocated to the meter. Sweet!
Help!
Right click on the RP03M ‐ Transaction Entry/Maintenance button. Then click Help for additional detailed instructions on set-up and implementation of Revenue Meters.
RP03MH ‐ Historical Variances
As with just about EVERYTHING in SSI, we provide historical allocation information. Check historical transactions to the meter and corresponding well allocation. Includes the Purchaser Paid Volume, Company Paid Volume, and the volume and percentage variance between the two.
FYI ‐ the Purchaser Paid Volume is what was actually paid by the purchaser and entered into the meter. The Company Paid Volume is the allocated volume for each individual well within the meter.
Imports
Imports you may ask? Yep…got 'em. SSI Oil and Gas Accounting Software also includes an Excel import so that, once the meter is set up in RP03M, the individual wells and volumes can be uploaded to the meter. Posting for the import is found under RP03M ‐ Transaction Entry/Maintenance - Import tab on the menu bar at the top of the dialog screen.
If you've got metered revenue and are manually calculating and entering the individual well volumes and dollars, STOP THE MADNESS!! Using SSI's Revenue Metering product will make your job SO MUCH EZIER!!
Hesitant? Just try it once. You can't mess it up, and we're betting you're gonna love it!!
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