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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.