Well Information
Wells and any settings for a well are specified on the Well Information window. Although we refer to wells, it can also be thought of as a disbursing unit. You may be used to referring to it as a well, a lease, or even a field.
When opening the Well Information window for the first time after setting up a new company, the window will appear to be grayed out and disabled. This just means that there are no wells in the file yet to display. Click the New button on the toolbar, and the window should be enabled and ready for entering records. After entering each well, click the Save button on the toolbar before clicking on the New button to add the next record.
Choose a tab to view:
Well ID
Enter the well ID of this well. A well ID is a 1-10 character code used to reference a well. This code can consist of any numeric or alphabetic characters. If you have wells in different states, a good coding scheme would be to prefix a sequence number with the state abbreviation. For example: OH01. Be consistent when choosing an ID for your wells because many reports are sorted by the well ID.
Well Name
Enter the name of this well or lease. It usually consists of the farm name and a sequence number or the landowner's name and a number. For example: Sherwood #1. Limited to 30 characters in length.
Township
Enter the township or district in which this well is located. Limited to 20 characters in length.
County
Enter the county or parish in which this well is located. Limited to 20 characters in length.
State
Enter the state in which this well is located. This information is required. Limited to two characters in length.
Group
Select the group to which this well belongs. The list of groups to choose from comes from the groups defined to the system. The default group is "00". Groups are used to separate the processing between wells. Groups are defined in the Well Group Definitions window.
Associating wells with different groups allows you to process wells separately. You may need to do this because you process different wells at different times, want to keep wells from different states separate, or want to group them in any other way. Runs will be processed by group. If you have multiple groups then you will have to do multiple run closings each month. If an owner has an interest in multiple groups then he will get a check for each group that he has an interest in. Having multiple groups will be more work than just having one. So we do not recommend adding multiple groups unless you have a reason to do so.We do not recommend changing the group that a well is associated with once a run closing has been processed for that well. Changing the group a well is associated with will affect past reports negatively. Regardless of how you choose to use groups, make sure you understand how they work and that you have them setup so that you will not need to change the group in the future.
Status
Choose the status of this well. The available status codes are: Active, Inactive, Plugged, Sold and Investment.
- Active (A) means that a well is capable of having revenue or expenses incurred for it. You can enter Revenue and expenses for a well with this status and they will be allocated to the investors.
- Inactive (I) wells will not be processed nor will they show up on reports. You cannot enter revenue and expenses for a well with this status.
- Plugged (P) wells will not be processed nor will they show up on reports. You cannot enter revenue and expenses for a well with this status.
- Sold (S) wells will not be processed nor will they show up on reports. You cannot enter revenue and expenses for a well with this status.
- Shut In (N) means that a well is capable of having revenue or expenses incurred for it. You can enter Revenue and expenses for a well with this status and they will be allocated to the investors.
- Spudded (D) means that a well is capable of having revenue or expenses incurred for it. You can enter Revenue and expenses for a well with this status and they will be allocated to the investors.
- Permitted (T) means that a well is capable of having revenue or expenses incurred for it. You can enter Revenue and expenses for a well with this status and they will be allocated to the investors.
- Investment (V) status is for wells that your company only invests in but do not operate. You will not be able to allocate any revenue or expenses in an investment well to multiple owners. The "Allocate All To" field will change to a drop down list for you to choose whether the detail is for a Royalty, Override, or Working Interest when an investment well is chosen. If you have any Investment Wells refer to the Investment Well Status topic.
- If you want to track your investment in a well that you are operating, you should be sure to add your company to the Division of Interest for this well. If you are operating the well and disbursing revenue or billing expense to other owners, the well's status should not be Investment.
Tax Table
Defines which severance tax table the well is tied to for calculating severance taxes. Enter a code that matches the Well Products Tax Table to use for this well. The tax tables will need to have been defined before they can be chosen.
Suspend Well
This button will place all interests on hold, or release all interest from hold. Once you select the button to suspend the well, the description of the button will change to say "Release Well".
When used, this button is actually affecting the "INT Hold" option on the Division of Interest window. You are really just putting every interest on hold at the same time.
Leases
If this well is associated with a lease you can choose it here. The lease must be setup on the Lease Information window before you can select it. Once you click on the Leases button, a seperate window will appear with a list of leases. Select the desired leases and move them to the right side. Those will then be added to the list in the Leases field.
X
This button allows you to remove a lease from this well. Select a lease that is in the list of leases in the lease field and then click on this button. The lease will then be removed from the list.
Date Added
An automatically generated date that displays the date and time that this well was first entered into the software.
Added By
An automatically generated field that displays the user that was logged in when this well was created.
Date Changed
An automatically generated field that displays the date and time that this well was last edited.
Changed By
An automatically generated field that displays the user that was logged in when this well was last edited
Pumper
Select the pumper associated with this well. The pumper is defined in the Pumper Information window. This field is informational only.
Tank Battery
Select the Tank ID associated with this well. The Tank must be setup on the Maintain/Tank Information window before you can select it here.
Depth
Enter the depth for which the well is drilled. (Informational only)
Elev
Enter the well elevation. (Informational only)
DOI Info button
Clicking this button will display a general listing of the interests defined for this well. This is not a data entry window, and is not used to enter the division of interest for this well.
Location
Enter up to 15 characters of location information. Informational only.
Lot
Enter the lot where this well is located. Informational only.
Qtr/Twp
The Quarter/Township where this lease is located.
Section
Enter up to 10 characters of section information. Informational only.
Range
Enter up to 10 characters of range information. Informational only.
Latitude/Longitude
The GPS coordinates for the location of the well, or a waypoint that you use to locate the well.
Map
When clicked, a web page will appear showing you a map of the location of the coordinates specified.
Parcel
Enter the parcel number which the well is located on. Limited to 30 characters in length. The parcel is used for state compliance reporting.
The number given here should match the number of API numbers entered in the Permits page.
Formation
The geologic formation the well is drilled into. The formation is used for state compliance reporting.
Field
The producing field the well is drilled into. The field is used for state compliance reporting and for Investment Manager reporting. Press F2 to bring up a list of Investment Manager defined fields.
Acres
Enter the number of acres the well lease sits on. This information is used for the state compliance reports.
Farm No
A reference field. This does not print anywhere.
No. of Wells
The number of wells described by this well record. There can be a maximum of six wells on one well record, because that's the number of API number fields available. The system uses this number to create the information required on the state compliance reports. If more than one well is represented, the system will divide the total production by the number of wells to derive the production totals to report for each well. This field affects the state compliance reports OH Form 6, OH Form 10, PA Annual Production and NY Annual Production by dividing the production by the No. of Wells number and reporting each API number with the new total.
Purchase Date
The date that you purchased the well, if you purchased it from another operator.
Purch From
The entity that you purchased the well from. (Reference Only)
Spud Date
Enter the date this well was spudded. Informational only.
Comp Date
Enter the date that this well was completed. Informational only.
First Prod
Enter the date of first production. This is informational only, except for wells in Ohio, where it is used to determine whether a well should have flush production reported on the Form 10 report. The production from the first 12 months that a well produces can be credited as Flush Production. This will be calculated as of 12 months from this "First Prod" date.
Date Sold
This option will specify that the well has been sold for investment purposes. This is used in the well payout and discounted rate of return calculations.
Sell Price
This option specifies the price received for the well for integration with the investment portion of the software. This amount is used by the Investment Manager in calculating the well payout and discounted rate of return reports.
Property No
A generic code that is used by someone that you will be importing activity from. A unique ID that can be assigned to this well for the purpose of using the import module. The entity that is providing you with the activity to be imported may identify this well with something other than the well ID and name that you use. By entering their code here, the software will be able to recognize which well the activity should be imported for.
Oil Property No
The code that is used by your oil purchaser. A unique ID that can be assigned to this well for the purpose of using the import module. The entity that is providing you with the activity to be imported may identify this well with something other than the well ID and name that you use. By entering their code here, the software will be able to recognize which well the activity should be imported for.
Gas Property No
The code that is used by your gas purchaser. A unique ID that can be assigned to this well for the purpose of using the import module. The entity that is providing you with the activity to be imported may identify this well with something other than the well ID and name that you use. By entering their code here, the software will be able to recognize which well the activity should be imported for.
Oth Property No
The code that is used by the purchaser of Other revenue. A unique ID that can be assigned to this well for the purpose of using the import module. The entity that is providing you with the activity to be imported may identify this well with something other than the well ID and name that you use. By entering their code here, the software will be able to recognize which well the activity should be imported for.
The permits page allows you to define up to six different API numbers that are associated with this disbursing "well." Up to six wells can be disbursed as one well and then have their production information split out for state compliance reporting.
API No1. - API No 6
Enter the well's API permit numbers for this well. Limited to 15 characters in length.
User 1-6
The User fields are used for various state compliance reports. Please see each State Compliance Report for the information on what each user field will contain. Depending on the state that is selected for this well, the captions on the user fields will change to the appropriate fields.
Meters
The ID code of the master meter this well is connected to or if the well has its own meter, enter the meter ID for that single meter. For a master meter ID to be chosen, it needs to have been set up in the Master Meters window. Up to five meters can be associated with a well. To select a meter, click in the meter ID box, and then press the F2 key to bring up a list of available meters, or type in the appropriate meter ID.
Additional options determine how the well is processed.
Process Well
Check the appropriate button to select the processing option for this well. If the well is disbursed on a monthly basis, select Monthly. If the well is disbursed on a quarterly basis, select Quarterly. If any wells are set as quarterly wells, you will be prompted when closing the run as to whether quarterly wells should be processed.
Adjust Rounding To
By default, the system will adjust any rounding for this well to the working interest owner with the lowest owner ID that has an interest in the well. If you would like to select a different owner, you can choose one from the list. Only working interest owners with an interest in this well will be available for selection. If your company has a working interest within the well, it is recommended that you select your own company to have the rounding adjusted to, so that the rounding adjustment does not appear on other owners' statements.
Account
The NRA number should be entered in this field so that it properly affect the WV state reports.
System
An extra field that is added that allows you to reference another unique ID that is needed. This doesn't affect anything but allows users with the Advanced Reporting Module the ability to sort or report on an additional field.
3rd Party Well (not company operated)
Check this box if this well is a third party well. Third party wells are wells that you don't operate but disburse income from statements you get from another producer.
This is mainly used as a reference so that you know the well is a 3rd party well. The only thing that this affects is the Severance/Production Tax Report. 3rd Party wells will not be included on that report. Please see special topics.
Charge Compression on Gas
Charge this well a compression charge. The default compression charge is defined in the Preferences window on the Miscellaneous section as a charge per MCF.
Compression per MCF
The charge for compression per MCF for this well. This entry will override the default charge for compression in the global options.
Charge Gathering on Gas
Charge this well a gathering charge. The gathering charge is defined in the Preferences window on the Miscellaneous as a charge per MCF.
Gathering per MCF
The charge for gathering per MCF for this well. This entry will override the default charge for gathering for this well.
Exclude Royalty Owners from Comp/Gathering
Exempts any royalty owners in this well from any compression or gathering that is calculated.
Secondary Recovery Well & House Gas Only
These options are used for reporting on various state compliance reports. This options only affect the OH Form 6 and OH Form 10 state compliance reports.
House Gas Only
This option is informational only, and doesn't affect any reports. It was added as an option to allow house gas wells to be better tracked.
Default Oil Purchaser
Enter the usual Oil purchaser for this well. This information will be brought into the Well Revenue by Well (8/8ths) window when BBL is chosen as an income type.
Default Gas Purchaser
Enter the usual Gas purchaser for this well. This information will be brought into the Well Revenue by Well (8/8ths) window when MCF is chosen as an income type.
Well Tax ID
The federal tax ID for the well. This will only be used if each well has its own tax ID and you build the 1099s by well. The ID here will be used as the payers Tax ID on the 1099s. If you are not building the 1099s by well this this will not be used on the 1099.
This page defines how severance taxes are calculated for this well.
Exclude Royalty Owners From Severance Tax
Check this box if the royalty owners for this well should not be charged severance taxes. When marked the severance taxes will be allocated to the owners in the well based on the interest specified on the Division of Interest window in the "Working Interest" field instead of the tax fields. The result is that the working interest owners will be paying a higher percentage of the taxes in order to cover what the royalty owners would be paying.
Well is Exempt from Tax 1 - 4
Do not charge this well any taxes.
Purchaser Withholds Oil Tax 1 - 4
Check this box if the purchaser withholds the taxes due on oil production and sends you the net amount. If checked, this well will not show up on the quarterly severance tax report. Severance and production taxes will be assumed to be entered along with well revenue.
Purchaser Withholds Gas Tax 1 - 4
Check this box if the purchaser withholds the taxes due on gas production and sends you the net amount. If checked, this well will not show up on the quarterly severance tax report. Severance and production taxes will be assumed to be entered along with well revenue.
Purchaser Withholds Oth Tax 1 - 4
Check this box if the purchaser withholds the taxes due on other well production and sends you the net amount. If checked, this well will not show up on the quarterly severance tax report. Severance and production taxes will be assumed to be entered along with well revenue.
Purchaser W/H Dir Pay Oil/Gas Tax
Check this box if directly paid owners have the taxes withheld from their checks before receiving them. Otherwise, the direct paid owners will be responsible for their share of the taxes.
Use These Severance Tax Rates Instead of Tax Table
When enabled, this option tells the system to use the following percentages in calculating the state severance taxes for the owners in this well. When this option is marked and a Tax Table is associated with the well on the Well Info tab the Oil and Gas taxes set up under "Tax Calculation 1" on the tax table will be ignored. These rates will take the place of the Oil and Gas rates specified under "Tax Calculation 1". Note that the "Oth Product Tax" under "Tax Calculation 1" will not be ignored. This feature is designed for wells located on Tribal lands in Montana. View the Montana Severance Tax and Tribal Calculations topic for more information on this. Percentages are entered as a whole number. For example: 4.5% would be entered as 4.5.
Oil Severance Tax Rates
Fill in the percentage rate being charged to Royalty owners as well as Working owners for oil.
Gas Severance Tax Rates
Fill in the percentage rate being charged to Royalty owners as well as Working owners for gas.
The percentages given are used to calculate the severance taxes by multiplying the given owner (either Royalty or Working) with their gross income from oil or gas.
You can enter any free-form notes that pertain to this well by using the Notes page.
The Documents tab allows you to associate files with this record and then view them from within the software at any time.
This capability is offered as an optional module. You will not be able to see this tab unless you have purchased the Document Management module
Link Doc:
A new document can be associated with this record by clicking on the "Link Doc" button. You will be able to browse to the desired file. After selecting the file it will ask you to specify a description for the file. Once a document is selected it will be listed to the left with the description that you typed in.
View Doc:
You can view a document associated with this record by selecting the document from the space on the left and then clicking this button.
Remove Doc:
A document can be removed from the list by selecting it then clicking on this Remove Doc button.
Show Paths:
Each stored file will be listed using the description that you keyed in for it when it was linked. Clicking on this "Show Paths" button will change what is displayed so that is lists the full file path to this file instead of the description.
Treeno:
The Treeno button allows you to access and save documents on the cloud. The capability to store documents on the cloud is only available if you purchased the optional "Cloud Document Management" Module. You will not see this button unless you have purchased that module.
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