Fawn Scott ERP Product Manager Gas Balancing Fawn Scott ERP Product Manager

What-Why-Who-How ?? Deregulation of gas industry – owners allowed to defer/market their own gas Congratulations! Gas balancing at the wellhead added to industry Operator of well/lease/unit responsible for prep and sending of Gas Balancing Statement to WI owners What do I need to consider? How do I create and manage Gas Balancing?

Gas Balancing Solution Operators required by law to provide all WI owners their current gas balancing positions Integrated, efficient solution through WolfePak Gas Balancing Module Gas Balancing Statements reside within your software System utilizes division of interest to recognize owner entitled percentage

The Circle of Gas Balancing Gas Balancing Agreement Nominations Entitlements Well Production Over/Under Produced Imbalances Makeup Gas Considerations as an Operator Gas Balancing Agreement Well Production Nominations Entitlements Overproduced/Underproduced Imbalances Makeup Gas Finally the Gas Balancing Statement

Gas Balancing Statement Into the Mixer ! Gas Balancing Statement Who Picks up the Imbalance? I Market My Gas Pay Me - I am Royalty

Simple Wellhead Imbalance Estimated Production 1000 mcf Royalty and Overrides (20%) 200 mcf Leaving WI Entitlement 800 mcf Defined DOI for Gas Balancing with Johnny Adams deferring his gas

Where DO I Start? Key Elements:

Process Steps Start Cycle for Production Month Enter or Import Data From the Purchaser Settlement Statement Enter or Import Adjusted Settlements

Settlement Statement

Start the First Cycle and Record Sales Start the cycle for production month Populate Gross Volume per meter from Purchaser Statement

Adjustment of Settlements Adjust Settlements Example: Johnny Adams deferring his gas reflected in his Settlement Percent of 0.00

Gas Balancing Statements Lease statement: One per owner for first cycle

Next Month’s Cycle-August 2018 Lock Settlement Pct Settlement percentages carried forward for Johnny Adams and WolfePak Oil & Gas Company Reflects prior balance and new balance

August 2018 Gas Balancing Statement Reflection of Cumulative Balances

Questions