Description

Table of Contents

1. INTRODUCTION
2. PRIMARY CONCEPTS
   1. Cost Categories
   2. Fair, Equitable and Consistent
   3. Obligation for Well’s Portion of Shared Well Pad Costs
   4. Timing of Cost Allocation
   5. Advanced Planning and Authorization
3. COSTS TO CONSIDER
   1. Location and Reclamation
   2. Damages and Right-of-Way
   3. Mud and Flowback Disposal
   4. Rig Moves
   5. Roads
   6. Flowlines and Electrical Lines
   7. Production Equipment
4. OTHER ITEMS TO CONSIDER
   1. Infrastructure Serving Multiple Pads
   2. Title
   3. Temporarily Shut-In Operations on Existing Wells
   4. Wellbore vs. Well Completions
   5. Dry Hole, Shut-In and Temporarily Abandoned Wells
   6. Abandonment of Pad
   7. Audits
5. EXAMPLES OF LOCATION COST ALLOCATIONS
6. GLOSSARY
7. Exhibit A: Shared Well Pad Cost Allocations