Division of Interests

To set up relationships between owners and the wells they have interest in, use the Division of Interests . This information is entered once for each well. It does not need to be entered again unless the owners change, or their share changes. When this is first opened, you are viewing a single owner's record for a single well. If you make any changes here, such as overwriting the owner, you have changed that existing owner's record. To add a new owner to a well, click the New Button on the toolbar at the top of the . It will automatically fill in the current well, but the rest of the fields will be blank. To search for a separate existing division of interest for a different well or owner, use the List button on the toolbar - do not use the Well ID or Owner ID buttons, as that will change the existing interest you are viewing.

It is recommended to enter any royalty or override interests into the well first before entering the working interests when setting up a new well's division of interest. This is so that the system can calculate the net revenue interest for your working interest owners more easily. Be sure to enter the interests as whole percentages. For example: 12.5% is entered as 12.5000000. If the royalty owners in the well are unknown, be sure to give the dummy owner a royalty interest in the well for that total royalty percentage.

When entering a royalty or override owner's interest in the well, simply enter their percentage in the Oil or Gas revenue interest class. The system will prompt you to copy this percentage to the appropriate tax interest classes.

When entering a working interest into the well, simply enter their percentage in the Working Interest class shown in the Expenses section, then click Save on the toolbar. The system will automatically calculate the net revenue interest for Oil and Gas revenue and the appropriate tax classes. This will ensure that all revenue interests total 100.

It is important that all interest classes used in the Division of Interest for the well total 100. If the interest class does not total 100, the system will not be able to fully allocate the amounts that are entered using that interest class. For example: if only 87.5% of the Gas Revenue interest class is entered, then the system will only allocate 87.5% of revenue entered using MCF as the revenue type.

Record Navigation: Make sure that you use the lookup list IN THE TOOLBAR to switch between interests. If you click on the Owner ID field that is located on the record, that will change the owner associated with this interest. This would be the same thing as if an owenr sold his interest.

Auto Calculation: The screen is designed to calculate the Net Revenue Interests for you on the Working Interest records. When initially setting up a well, you enter the RI and ORRI records first. Then when entering the WI records, you only have to fill in the Working Interest field and when you press save, the software will automatically calculate the percentage to go in the oil and gas fields. This is greatly beneficial when setting up a well, however, can be confusing to people when making adjustments at later times. If this is confusing you, just mark the option in the top right corner so that it doesn't automatically calculate the net revenue interests.

Owner Interests Tab

Contains every interest class available for an owner in a well. To add an owner to a well, you MUST add a new record. If you just change the owner ID on the current record, you have replaced an owner in a well with a different owner.

Well ID
Choose or enter the Well ID of the well for which interests will be set up. Choose from the lookup window by pressing F2. To add an owner to a well, you MUST add a new record. If you just change the owner ID on the current record, you have replaced an owner in a well with a different owner.

Don't Automatically Calculate Net Revenue Interests
When enabled, this option allows revenue interests to be maintained separate from the calculated interests in the working interest class. This option should rarely be used, but if enabled, will allow the Gas and Oil revenue interests to be manually input.
The Accounting Manager, by default, automatically calculates the net revenue interests for the working interest owners based upon the amount of royalty and override interests in the well and the rate of working interest entered for an individual owner. For example, well W001 has royalty interests of 17.5% entered. Joe Smith is entered as a working interest owner with 25% working interest. The system would calculate Joe's net revenue interest to be (100% - 17.5%) * 25% = 20.625%.
If this option is enabled, you will have to manually enter the correct percentages into the Gas Revenue and Oil Revenue Interest classes. Otherwise, for working interest owners, you would simply enter their working interest percentage, then click Save, which will calculate the rest of the revenue and tax interests for you automatically. For royalty owners, you would just need to enter their oil and gas revenue percentages. When you do this, the system will ask you if you want to copy their revenue percentages to the corresponding tax fields. This is recommended and will save data entry time.

Owner ID
Enter the Owner ID of the owner that has a share in this well. Choose from the lookup window by pressing F2 or by clicking on the owner button located beside the owner ID field.

Program Code
If this interest belongs to a defined well program, enter the program code here. The program must already be defined in the Program/Partnership Information window. If you fill this field in, and then create a new record, this field will automatically fill in again with the program that was specified on the record that was showing on the window when the new button was pressed.

JIB Interest
If this owner is to be billed for the expenses of this well instead of having his expenses netted from the revenue, put a check mark in this box. When this option is on for an owner in a well, the owner will be paid any revenue the well generates and then will be billed separately for his/her share of the expenses. This option is disabled if the owner type chosen is not Working Interest.

Int On Hold
Check this box to put this interest on hold. When an interest is on hold, the amounts generated by this interest are put into the suspense file until the interest is taken off of hold. When the interest is taken off of hold status, the amounts held are released the next time a revenue run for the group this well is in is closed. If you want to put the entire owner on hold, and not just this interest, you can do that through the owner information window.

Flat Rate
Check this box if this interest is a flat rate royalty interest. A flat rate interest is paid the flat rate amount instead of a percentage. When the flat amount is paid, it is determined by the Flat Rate Starts and Flat Freq options below. The Working Interest owners in this well will be charged for this flat rate. You cannot set a "Dummy" owner up with a Flat rate Record.

Owner Type
Describes what type of owner this is. Choose Working Interest, Royalty or Override.

Interest Type
Specify the type of royalty/override interest by choosing Gas if this royalty owner has only a Gas (MCF) interest. Choose Oil if this royalty owner has only an Oil (BBL) interest. Choose Both if this interest is the same for both Oil and Gas. Working interest owners must be set as Both.

Direct Paid
If the revenue to this interest is paid directly by the purchaser, you can denote that here. If the oil interest is paid directly, choose Oil here. If the gas interest is paid directly, choose Gas here. If both the oil and gas interests are paid directly, choose Both here. If neither gas nor oil interests are paid directly, choose None. Do not choose Direct Paid for the operator's interest within the well.

Month Flat Rate Starts
Enter the month the flat rate should start. The system uses the month to calculate when the next quarter, semi-annual or annual payment is due.

Flat Freq
Specify how often the flat rate should be paid. The flat rate will be paid at the beginning of the selected period. The flat rate will only be released on a run run closing if the run is closed during a month that it will release in and the option is marked to release flat rates when the run is closed.
Monthly - Owner will receive a check every month.
Quarterly - Owner will receive a check every quarter. A check will be created in January, April, July, and October assuming January is selected as the month the flat rate starts.
Semi-Annually - Owner will receive two checks every year. A check will be created for the owner in January and July assuming January is selected as the month the flat rate starts.
Annually - Owner will receive one check every year in January assuming January is selected as the month the flat rate starts.

Having both an Annual Flat Rate Frequency (Division of Interest Window) for an owner setup with an Annual Disbursement Frequency (Codes tab of the Owner Information Window) will result in 11 month delay before the owner receives teh check. The Flat Rate will be released at the beginning of the term, but since the owner is not set to receive a disbursement check the balance will be held in suspense until the end of the term before it will release the check. Typically it is best to leave the Owner Disbursement Frequency left as Monthly if you will be having a different Flat Rate Frequency. That way it will create a check every time a flat rate is released.

Flat Rate
Enter the royalty owner's flat amount. This amount cannot be entered unless the Flat Rate option has been enabled for this royalty owner. See Flat Rate checkbox above.

Rate Per MCF & Rate Per BBL
If the flat rate should be paid as a flat amount based on how much the well produces, you can fill in the amount per barrel and per MCF for those calculations. If these are filled in, the system will take this amount times the total units produced, and pay the flat rate owner that amount.

Oil Revenue
Enter the owner's oil revenue interest in this well. Enter as a whole percentage. For example: 12.5% would be 12.50000. If this is a working interest owner and you want the net revenue interests to be automatically calculated, don't enter this revenue interest.

Gas Revenue
Enter the owner's gas revenue interest in this well. Enter as a whole percentage. For example: 12.5% would be 12.50000. If this is a working interest owner and you want the net revenue interests to be automatically calculated, don't enter this revenue interest.

Trans Revenue
Enter the owner's transportation revenue interest in this well. Enter as a whole percentage. For example: 12.5% would be 12.50000.

Misc Revenue 1
Enter the owner's miscellaneous 1 revenue interest in this well. Enter as a whole percentage. For example: 12.5% would be 12.50000.

Misc Revenue 2
Enter the owner's miscellaneous 2 revenue interest in this well. Enter as a whole percentage. For example: 12.5% would be 12.50000.

Working Interest
Enter this working interest owner's working interest in this well. Enter as a whole percentage. For example: 12.5% would be 12.50000. This interest is for normal lease operating expenses. Expenses that are in expense class 0 will be charged to this interest class.

Exp Class 1
Enter this owner's expense class 1 interest in this well. Enter as a whole percentage. For example: 12.5% would be 12.50000. Expenses that are in expense class 1 will be charged to this interest class.

Exp Class 2
Enter this owner's expense class 2 interest in this well. Enter as a whole percentage. For example: 12.5% would be 12.50000. Expenses that are in expense class 2 will be charged to this interest class.

Exp Class 3
Enter this owner's expense class 3 interest in this well. Enter as a whole percentage. For example: 12.5% would be 12.50000. Expenses that are in expense class 3 will be charged to this interest class.

Exp Class 4
Enter this owner's expense class 4 interest in this well. Enter as a whole percentage. For example: 12.5% would be 12.50000. Expenses that are in expense class 4 will be charged to this interest class.

Exp Class 5
Enter this owner's expense class 5 interest in this well. Enter as a whole percentage. For example: 12.5% would be 12.50000. Expenses that are in expense class 5 will be charged to this interest class.

After Payout
Enter the owner's working interest that the owner reverts to after the well has paid out. Enter as a whole percentage. For example: 12.5% would be 12.50000. This interest class is used only to store the After Payout interest for the working interest owners. It is not possible to charge expenses to this class during the expense entry or run closing. Once payout has been reached, you may use the Copy DOI utility to copy these interests to the Working Interest class.

Before Casing Point
Enter this owner's expense interest for before casing point expenses. Enter as a whole percentage. For example: 12.5% would be 12.50000. Expenses that are in expense class A will be charged to this interest class.

After Casing Point
Enter this owner's expense interest for before casing point expenses. Enter as a whole percentage. For example: 12.5% would be 12.50000. Expenses that are in expense class B will be charged to this interest class.

Tax 1 - Tax 4
Enter this owner's interest for oil, gas and other product taxes. Enter as a whole percentage. For example: 12.5% would be 12.50000. There are four different tax calculations available for each product. Each of the four tax interests corresponds directly to the four tax rates available to be setup by using the Well Products Tax Table form found under the Disbursement and JIB Files section of the Maintain menu.

State Tax W/H Pct
If you need to withhold a state tax for this interest, enter it here. This percentage will be based on the gross revenue (before any deductions) earned for this interest. Enter as a whole percentage. For example: 6.75% would be entered as 6.75. The amount of tax withheld will post to the "Backup & Tax Withholding" account specified in the Rev Dist/JIB Posting Preferences.

- By Default this tax will be calculated based on Gross Revenue. If you want the State Tax to be withheld based on the net revenue (after taxes) instead of the gross revenue you can create a file called "taxnet.cfg" in the "DataFiles" folder. Then all owners with State withholding on the Division of Interest window will be calculated on the Net (after taxes) instead of the Gross. The DataFiles folder is found within the \Program Files\SherWare\AMPRO directory.

Note:
When using the Owner Interests tab, think of it as a book with one page for each owner's interest in a well. To view a different owner or well, you will have to use the toolbar to go to the next or previous record. (like flipping pages) If you change the Owners name on this page it will not browse to that owner's record but change this record from the current owner to different one.

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Interest Views Tab

This window gives a snapshot of all the owners in a well in a particular class. The class can be changed by selecting a different one from the Interest Class drop-down list in the upper right hand corner. Changes cannot be made on this window. To edit any of the owners, click on the Edit button in the right column beside their interest. This will switch the window back to the owner interests tab for that owner, ready to be edited. Please note: only saved entries will show on the interest views tab. Until an entry is saved on the owner interests tab, the changes will not be reflected on the interest views tab.

Interest Class
Choose the interest class that you would like to view.

Check Interests
The check interests button will show you a snapshot of all the interests in a particular well, and give totals for each class of revenue and expense. Changes must be saved for them to show on this window, as well.

Total Well Interest
Gives the total of the interest class being viewed. It is necessary for this to total 100 so that all amounts entered into the system using this interest class can be fully allocated to the owners. If the total does not equal 100, edit the appropriate interest within the well to correct the total. It is possible that you may need to add a dummy owner to bring the total to 100. Please see the Dummy Owners information in the Help by Subject tree.

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Documents Tab

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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Setup/Entry Tips

Automatic Calculation of Working Interests
This window is designed to help you in the entry process when entering the Division of Interest for a well. The end result is that each owner's interest for each class should be listed as the "8/8ths" amount. The 8/8ths amount is the percentage of the total that each owner should receive including the Royalty and Override interests. The automatic calculation makes it easy for you to figure this percentage during data entry.

You will first enter all Royalty and Override owners, then enter the Working Interest Owner's. When entering the working interest owners percentage, you will just need to fill out the "Working Interest" field, entering his working interest percentage of expenses, and then click Save on the toolbar. This will then update the Gas Revenue, Oil Revenue, Other Revenue and the taxes fields.

For Example: if you have three owners in a well where one is a Royalty owner (12.5%) and the other two are Working Interest owners (50% each). Enter the Royalty owner first and give him 12.5% interest in Oil, Gas, Other, and all of the taxes. Then enter a Working Interest owner by putting his interest (50%) in the "Working Interest" field only. When you press the save button it will automatically calculate the interest for the Oil, Gas, Other, and all of the taxes fields to be 43.75%. This ensures that the total Revenue Interests do not exceed 100% once they are all added. If you do not like this automatic calculation simply mark the option in the top right corner to "Don't Automatically Calculate Net Revenue Interests."

Direct Paid Owners
The Accounting Manager will allow you to handle directly paid owners, that is, owners and royalty owners that are paid directly from the oil or gas purchaser. To set up a well that has directly paid owners, make sure that the owners that are paid directly are marked as direct owners in the Division of Interests window. Select Oil if the royalty or working interest owner is paid their oil interest directly. Select Gas if the gas interest is paid directly or Both if both the oil and gas interests are paid directly.
If the option in Reporting Preferences for "Invoice directly paid owners for expenses" is enabled, the directly paid owners will be invoiced for any severance taxes or other expenses which they have been given a percentage. The invoice is actually the Owner's Distribution Statement with the wording changed to indicate that the statement is an invoice to be paid. Any invoiced amounts for the owner will be put into the suspense file.

Flat Rate Royalties
The Accounting Manager will allow you to set up a well with royalty owners that are paid a flat rate instead of a percentage. To flag a royalty owner as having a flat rate, check the flat rate box when entering the royalty owner in the Division of Interests window. The range for flat rate royalties is .01 to 999.00. If the flat rate should be paid as a flat amount based on how much the well produces, you can fill in the amount per barrel and per MCF for those calculations. If these are filled in, the system will take this amount times the total units produced, and pay the flat rate owner that amount.

Copy Division of Interest Utility
The Copy Division of Interest Utillity will allow you to copy interests from one well to another well (all interests) or one interest class to another interest class within the same well. If you have multiple wells set up with the same interests, you can set the first well's DOI up then copy it to another well. If you just want to transfer each owners Oil Revenue interest percentage to Expense class 1, you can do that also with this utility. The Copy Division of Interest utility is found under the Utilities menu> Division of Interest Utilities.

Check Division of Interests Utility
The Check Division of Interests utility will cycle through all of your wells and give you a report if any wells have an interest that is not equal to either zero or 100 percent. The Check Division of Interest utility is found under the Utilities menu> Division of Interest Utilities.

Dummy Owners
Use a "Dummy Owner" as a place holder for any non-operated interests, or interests that you are not responsible for. This is a special owner that will trigger the processing to recognize the portion of the well that you do not operate. See the Dummy Owner topic for more information.

Unknown Owners
If you have a portion of the well that you are going to need to disburse but do not know who owns the interest, you can set up an unknown owner and assign the interest to that owner. The owner does not specifically have to be named unknown, you can give them any name you want. Make sure the owner is on hold on the Owner Information window. Once you do figure out who owns the interest you can use the Transfer DOI Between Owners Utility to transfer the interest and history from the unknown owner to the correct owner.

Carried Interests
Use the 'Before Casing Point' (BCP) class (or any unused expense classes 1-5) for the owner percentages while the interest(s) is being carried. Fill in the 'Working Interest' expense class with the interests that will be used when the phase is completed and the interest(s) is no longer carried. When entering all the drilling and completion costs for the well, change the class in the expense entry window, such as Enter Bills, to use the 'BCP' expense class (if the expense code chosen is not already defaulting to that class). After the contractually agreed upon time, you will then choose the 'Working Interest' class when entering expenses for the well.

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Why do the numbers keep changing?
Review the section above about the automatic calculation of Working Interest owners. This explains why the numbers may be changing on you when you save the interest. If you do not like this automatic calculation simply mark the option in the top right corner to "Don't Automatically Calculate Net Revenue Interests."