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When  a  well  is  tied  into  an  existing  system,  where  some  or  all  of  the  well  owners  do  not  have  an  ownership,  or  sufficient  spare  capacity,  in  one  or   more  of  the  downstream  components  (flow-­‐lines,  compressors,  processing  plants,  etc.),  then  the  joint  interest  groups  must  agree  on  usage  terms   and  a  fee.  Sometimes  either  the  agreement  is  not  made,  or  the  fees  are  not  charged  out,  or  paid,  because  they  were  not  set  up  properly.

How  FacilityStudio  provides  value

FacilityStudio  pulls  in  all  third-­‐party  wells  inside  batteries  your  company  has  reported  to  Petrinex,  and  identifies  all  the third-­‐party  facilities   reported  in  Petrinex  as  being  connected  to  your  company’s  facilities.

Your  company  should  have  their  joint  interest  group  review  measurement  schematics  to  identify  instances  where  non-­‐owners  are  using   downstream  facilities  and  not  paying  a  capital  fee  (retroactive  billings  are  allowed).  Although  the  non-­‐ownership  parties  may  be  being  charged  out   a  share  of  operating  costs  for  the  facilities,  they  should  also  be  paying  a  capital  cost  contribution.

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