TABLE OF CONTENTS


Negative and Zero ONRR Payments 

Due to historically low oil prices, producers are sometimes having to sell their oil at a zero or negative value. The ONRR will not allow payors to report or pay a negative value. Instead, the reporting must reduce the value to (but not below) zero and report the transaction using a transaction code “20”. The enhancement is designed to work by looking for transactions where the volume is positive and the value is zero or negative, and where the MMS Lease is NOT Indian, and if so, populate the transaction code field in the spreadsheet with “20”. Since the negative value must be borne by someone, the system will chargeback negative values to the responsible working interest owners.


Note: The system will not create a type “20” when the cause of the negative value is due to deducts being greater than the gross value of the product.  

Revenue Transaction with a positive volume and negative price.


 

Revenue Deck showing the DOI - Minerals Mgmt. interest.



Revenue Inquiry showing the DOI - Minerals Mgmt. with a positive volume and negative value. 


 

MMS 2014 Process thru 2014 Detail Recap step. 



ONRR 2014 Detail Listing report showing Trans Code 20 with positive volume and $0 value. 



 

General Ledger Journalization Report showing amounts being written off. 


Revenue Deck Import Summary

A new revenue deck import was created that allows a user to import all of the revenue deck information including burden groups with details in the same import. The new import has been updated to be a multi-sheet import to accommodate importing all of the revenue deck information. This allows users to use each sheet to specify the details they want imported where multiple rows on a child sheet may relate to a single row on a parent sheet. 


Revenue Deck Import

The Revenue Deck Import can either be accessed through the Revenue Deck Decimal form or through the Revenue Deck Decimal Import. After completing the deck import form, the user will open up the Revenue Deck Decimal Import to import the file. Click the Select File icon to select the file to import. 

 


The next icon will load the file and all of the details. As seen, each tab on the import is broken out by a panel for the user to review. After loading the file, the next icon will validate the import and give the user any errors or warnings related to the import. 

 


The last icon will import the data into Enertia. The same free/exempt prompts will display similar to the prior import. Once the import is imported into Enertia, a final deck view will show the user the information that was imported. If Deck Code is set to auto-number and the deck code used on the import has not been used in Enertia, the system will create the next Deck Code in the sequence. However, the Deck Code must be numeric. The same thing holds true for the Burden Groups. 

 



 

Revenue Product Specific Decks Summary

Decks can now be specified to be product specific. In many instances the ownership in a well is different for different products. Enertia has added the ability to relate decks to one or more products and have the system restrict the use of the deck to only transactions that have one of the specified products during Agreement Setup, Revenue Transaction Entry, Revenue Transaction Import, Revenue Allocation Group Setup, PPA Deck Selection, and Rollup Deck Setup. There are also error traps in the Revenue Batch Edit and Revenue Distribution Preliminary Recaps steps to look for transactions where the product on the transaction is not set up for the deck on the transaction. If no products are related to the deck, then the deck will be valid for use on revenue transactions for any product. 

 

Deck Type

On the Deck Type form, there is a checkbox that will indicate if Revenue Decks can be Product Specific. If a revenue deck is marked as product specific, the same deck cannot be used as a JIB deck. 

 

 

Deck Maintenance

Once a deck type is marked as product specific and it is set up in Deck Maintenance, a Products button is available for a user to specify a product or products for this deck. 

 

 

Products Setup

On the Products setup, the user can click the Edit icon to add products. They have the ability to add no products, one product, or multiple products. If no products are added the deck will be available to use for all products. 

 



After the product(s) have been added, they will show up under the Products grid in Deck Maintenance.

 


Once a deck is limited by product(s), only those decks will be available based on the products specified on Agreement Setup, Revenue Transaction Entry, Revenue Transaction Import, Revenue Allocation Group Setup, PPA Deck Selection, and Rollup Deck Setup. An example of the revenue agreement setup can be seen below for a deck set up as an oil deck. The oil deck is available to select for the oil revenue agreement but not for the gas revenue agreement. 

 


Texas Oil Severance Tax - Version 5.0

The state of Texas has revised their Online Reporting for Oil Severance taxes to allow for multiple exemptions. Enertia has modified the EDI report process to populate the different structure and added information in the process settings field in the process control table to know that the file was generated using the "Version 5.0" format so that the fields in the report are parsed out correctly and displayed in the file info in the process grids correctly.


Old Version View

 

Current Version View

Revenue Deducts Based on Formulas 

New functionality has been added that gives the user the ability to base revenue contract deduct calculations off of a formula. This will allow a user to enter a formula that will base revenue contract deducts on the higher of the volume multiplied by a rate or the value multiplied by a different rate. For example, this functionality would give the user the ability to have a revenue contract deduct calculate the higher of the Gross Volume times a rate of $0.35 or the Gross Value times a rate of $0.15. An example of this formula would be:  

CASE WHEN ( [GrsVol] * 0.35) > ( [GrsVal] * 0.15) THEN  [GrsVol] * 0.35 ELSE [GrsVal] * 0.15 END


Formula button - Clicking this button opens the Formula Builder tab where a formula may be entered from which the Contract Deduct calculations will be based. This will allow the user to base Contract Deducts on the higher of the value multiplied by a rate or the volume multiplied by a different rate. This button will be disabled if a value is entered in Deduct Rate or Fixed Amount fields. If the user uses the formula button and enters a formula, Deduct Rate and Fixed Amount text boxes will be disabled. These two text boxes will become available again if the formula is cleared, either on the formula form or by using the eraser button.


To make sure that the syntax is correct, use the “Validate Formula” button to validate the SQL statement.


 



As can be seen in the following revenue transactions based on the deduct formula when the Gross Volume of 10,000 MCF * $0.35 = $3,500 is greater than the Gross Value of $20,000 * $0.15 = $3,000 then the deduct amount will be $3,500.



When the deduct amount calculated based on the Gross Volume of 10,000 MCF * $0.35 = $3,500 is less than the Gross Value of $25,000 * $0.15 = $3,750 then the deduct amount will be $3,750.


Owner Level Deducts Based On Formulas

A similar change to give the user the ability to base revenue contract deduct calculations off of a formula has been made for Owner Level Deducts. This will allow a user to enter a formula that will base owner level deducts on the higher of the volume multiplied by a rate or the value multiplied by a different rate. For example, this functionality would give the user the ability to have an owner level deduct calculate the higher of the Owner Volume times a rate of $0.45 or the Owner Value times a rate of $0.25. An example of this formula would be:  

CASE WHEN ( [OwnVol] * 0.45) > ( [OwnVal] * 0.25) THEN  [OwnVol] * 0.45 ELSE [OwnVal] * 0.25 END


Formula button - The Formula button becomes available when current deduct/tax record is set as an Owner Level Deduct. Clicking this button will launch the Formula Builder tab where the user can enter a formula for the calculations. This will allow users to enter formulas that reference the owner net fields and changes to the Revenue Distribution Process which the system will use when calculating creating the owner level deduct records.


NOTE: This button will be disabled if the user enters a value in Rate field. If the user uses the formula button and enters a formula the Rate field will be disabled. This field will become available again if the user clears the formula, either on the formula form or by using the eraser button.

To make sure that the syntax is correct, use the 'Validate Formula' button to validate the SQL statement.



 

 

In the example below BusAssoc 0003058 RMS Monte Christo LLC in Deck 4835 with a NRI of 0.19147170 was set up with an MKT_OWN deduct. 




Revenue Transactions were booked for June 2021 & July 2021. 




As can be seen in the Revenue Inquiry BusAssoc 0003058 RMS Monte Christo LLC had an MKT_OWN deduct calculated on each transaction. On the June 2021 revenue transaction, the MKT_OWN deduct based on the deduct formula when the Owner Volume of 1,914.72 MCF * $0.45 = $861.62 is greater than the Owner Value of $2,872.08 * $0.25 = $718.02 then the deduct amount will be $861.62. On the July 2021 revenue transaction, the MKT_OWN deduct based on the deduct formula when the Owner Volume of 1,914.72 MCF * $0.45 = $861.62 is less than the Owner Value of $3,829.43 * $0.25 = $957.36 then the deduct amount will be $957.36.