Description

Table of Contents

1. PREFACE
2. BACKGROUND
   1. Gas Surplus
   2. Deregulation
   3. Gas Industry Standards Board (GISB)
   4. Natural Gas Spot/Direct Markets
   5. Market Impact on Gas Balancing Agreements
   6. Market Impact on Gas Imbalance Reporting
3. PRODUCER GAS IMBALANCE REPORTING
   1. Definition of Producer Imbalance
   2. Responsibility, Accountability, & Timing Requirements of Operator and Non-Operator in the Producer Imbalance Process
   3. Basis for Determining Producer Imbalance
   4. Determination of Imbalance
   5. Effect of Joint Interest Payout On Imbalances
   6. Unitized Gas Sales
   7. Incentive Wells
   8. Reporting Data Elements
      1. Recommended Minimum Data Elements – Producer/Producer Gas Imbalance Statement
      2. Sample – Producer/Producer Gas Imbalance Statement
   9. Verification and Reconciliation of Imbalances
   10. Royalty In-Kind
   11. Understanding the Impact of Allocations on Producer Imbalances
   12. Production Handling Agreements
   13. Flash Gas
   14. Allocations Recognizing Makeup
   15. Gas Balancing Agreements (GBA)
   16. Imbalance Resolution Alternatives
4. ACCOUNTING FOR GAS IMBALANCES
   1. Methods of Accounting for Gas Imbalances
      1. Producer Imbalances
      2. Transportation Imbalances
   2. Implications of General Industry Practices on Accounting and Reporting of Gas Imbalances
      1. Revenue Recording
      2. Sales Method
      3. Entitlement Method
      4. Severance Taxes – Producer Imbalances
      5. Severance Taxes – Transportation Imbalances
      6. Severance Taxes – Imbalances Between Leases
      7. Royalties – Producer Imbalances
      8. Royalties – Transportation Imbalances
      9. Royalties – Imbalances Between Leases
      10. Operating Expenses
      11. Federal Income Tax
      12. Management Information Reports
   3. Recommendations
      1. Generally Accepted Accounting Principles
      2. General Industry Practices
      3. Entitlement Basis
      4. Sales Basis
5. EXHIBITS
   1. EXHIBIT 1 – GAS BALANCING / ALLOCATION ILLUSTRATIONS
   2. EXHIBIT 2 – PRODUCER GAS IMBALANCES
   3. EXHIBIT 3 – CALCULATION OF FIFO CASH GAS IMBALANCE SETTLEMENT