The “Retooled Model CO-O Agreement” is now ready to be verified. This document has been significantly improved and expanded from the 1999 model and was developed in response to feedback from the VPA membership of almost the creation of the 1999 model. While the accounting procedure and/or agreement may grant the right of audit, the parties` subsequent actions, events and provisions of the agreement may restrict this right. The Alberta Limitations Act, as amended by the industrial agreement, requires the non-operator to bring an action (in court) within two years of the date the agreement is to be reviewed for claims that have been disclosed by a review. (For all other claims, 4 years after the time they knew or should have known.) The pasC accounting procedures (1969, 1988 and 1996) clauses that allow for the application of an escalation factor at the fixed interest rate for the production well overhead provide that the operator will increase or increase the fixed rate of escalating factor overhead on July 1 of each year. Each specific agreement may be different, so it is imperative that the parties meet the agreed terms, but most relevant PASC accounting procedures contain the following wording: “The adjustment is calculated by multiplying the rate currently used by the percentage increase or decrease in the average……. Adjusted rates are the interest rates currently used, increased or decreased from the calculated adjustment, rounded to the next dollar. For example, for an agreement that will take effect in 2014, the first date the operator would be able to do so would be July 1, 2015. If this has not been done by 1 July 2015, the next option for the operator to adjust the rate is on 1 July 2016, if there are no contrary provisions in the government agreement. Each instance may depend on the wording of the head agreement and the operating and accounting procedure attached. Please make sure to check the text of your agreement; section 10 of the capl operating procedure and Article II of the PASC accounting procedure. However, if your agreement contains a default word in these clauses, CAPL`s operating procedure states that a payment account must be opened for all well-related charges and charged to participating owners.
Notwithstanding closed wells, some operational and regulatory activities may continue to be required. With regard to enterprise agreements of contracts, it is difficult to know from your question whether you are referring to the contract work undertaken by the well operator or the contractual operating costs incurred by the well operator as part of a contractual enterprise agreement with a downstream Facility Operator. Scenario 1: costs under a formal operating agreement (CWOA) between the alternative operator and another operator: most contractual agreements are structured, that the contract operator charge the well operator a charge for the physical operation of the well and a fee for administration (production accounting and board reporting): (a) operating charge: for closed wells (whether closed for months or years), the CWOA should give the operator direction to determine whether a fee is levied by the contract operator. Very often, the parties set a reduced operating tax (for example. B 300 USD/good/month, compared to USD 1,000/good/month during production). Some agreements do not have two-stage royalties, which means that the singular levy will apply until the status of the well is changed by the regulatory authorities or the CWOA is terminated. b) Administration costs: For closed wells, the board`s report continues until the well status is formally amended. Since the contract operator remains responsible for notifying the ERCB of the well until the status of the well is formally changed or the CWOA is terminated, a monthly administration fee is levied on the well operator and will be paid by the operator well. The same goes for good information within LA BC and SK. Note that, as with the expl fee