Description

Table of Contents

1. Introduction
2. Background
3. Charges from Well Containment Service Providers
   1. Example 1 – Vendor A – owns well containment equipment – charges a per-well fee
   2. Example 2 – Vendor B – does not own the equipment but has access to equipment – charges to become member of Vendor B
   3. Comparison of Vendor A and Vendor B
4. Chargeability of Fees/Costs Charged by Well Containment Service Providers
   1. General Chargeability Concepts
   2. Chargeability of Specific Costs
   3. Other Chargeability Issues
5. Accounting Procedure Provisions for Well Containment Service Provider Costs
6. Exhibit #1A – Allocation of Vendor B charges to original members for their share of cost of equipment based on number of wells drilled
7. Exhibit #1B – allocation of Vendor B charges to new members for their share of cost of equipment based on number of drilling & completion days
8. Exhibit #1C – allocation of Vendor B initiation fee
9. Exhibit #1D – allocation of Vendor B quarterly member fee
10. Exhibit #1E – allocation of Vendor B costs of required containment exercises