COPAS Update “Tell me something good!”. Petroleum Accountants Society of New Orleans January 15, 2014 Tom Wierman, Executive Director. COPAS Update – Highlights. Membership is up 12%! Expanding emphasis on CPE at COPAS meetings APA® Program undergoing a complete review
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COPAS Update“Tell me something good!” Petroleum Accountants Society of New Orleans January 15, 2014 Tom Wierman, Executive Director
COPAS Update – Highlights • Membership is up 12%! • Expanding emphasis on CPE at COPAS meetings • APA® Program undergoing a complete review • PMTA dissolution and COPAS’ response • Publications process & greater transparency • New publications approved – Fall 2013 • Continuing efforts to author new publications, refresh prior publications
COPAS Update – Highlights • Company support initiative taking root • Mentoring program underway • Working on rolling out a pre-packaged CPE presentation • COPAS MPACT • ACCOUNTS, COPAS EXTRA!, Communication • Social Media impact • Volunteer Thank You Notes/Press Releases
COPAS Update – Highlights • New CEPS Support Provider • New Process for Publications “CD” • Freshen COPAS image through trade show booth, giveaways, materials and display • Office Supply Member Discount Program has been steady • More Member Benefits are about to be launched
Membership Update • Just over 4,000 members • Thank you for your contributions to the industry • Employers – THANK YOU for supporting the important work of COPAS
Membership Update • Five Largest Societies • Colorado – 987 • Houston – 542 • Oklahoma City - 430 • Fort Worth – 310 • Dallas - 309 But remember, in COPAS, everyone is equal
COPAS Update – CPE Initiatives • Inaugural Education Day event in San Antonio • Four Hours CPE - Reasonably priced
COPAS Update – CPE Initiatives • April 23 – Glendale (Spring 2014) “Contracts, Contracts, Contracts” We certainly can’t live without them, so let’s learn to better live with them! • Pre-Drilling Agreements • The Oil and Gas Lease • JOA Provisions and Exhibits • JOA Pitfalls and problem areas
COPAS Update – CPE Initiatives • Initiative to increase CPE opportunities • NASBA Discussion • Work with Committee Chairs on agendas • Publish meeting agendas with CPE hours
COPAS Update – CPE Initiatives • Pre-packaged CPE • Qualifying presentation • Leader guide • Discussion questions • Available to ‘fill in’ for no-show presenters • Beta Test – Education Committee (Fall 2013)
COPAS Update – APA® Program • 200 APA®s – are YOU next? • Expanding Testing Locations and Options Testing in COPAS office, Company Locations, and at COPAS meetings • Continue to find ways to promote our certification program – social media among the possibilities • Credentialing conference attendance • BOE is working to increase test questions coverage • Investigating Review Program
COPAS Update – APA® Program • Initiating a program review • Job Analysis Request for Proposal • Literature Review • Data Gathering • Framework/Tasks & Knowledge • Focus Groups • Content, Format, Layout • Pretest/Pilot with SMEs • Surveys • Data Analysis • Focus Groups
COPAS Update – APA® Program • Job Analysis vendor selection by end of January • Stay Tuned • Not anticipating sweeping changes in the very near future, changes will take several months
COPAS Update – Vehicle Rates • PMTA Rates • Trusted economic factor • Reliability lead to process change in data tracking • Fewer responses received • Declining Membership • PMTA Dissolution • COPAS Accounting Procedure requires equivalent rate • COPAS’ response
COPAS Update – Vehicle Rates • What will happen for 2014? • Control panel or subcommittee will provide an Economic Factor • Rates published on the COPAS website • Companies will always have the option to calculate and charge a rate commensurate with: • Actual cost (up to the commercial rate limit) or • Rate that represents average commercial rates in the area less 20%. • Obtain MFI-55 for more information • See Economic Factors Page
COPAS Update – Vehicle Rates Vehicle Rates COPAS model form Accounting Procedures allow use of PMTA rates as an option to bill costs of operator-owned vehicles. The PMTA organization disbanded effective January 1, 2014, and advised COPAS that it would no longer publish rates after the 2013 rates. As such, COPAS devised and approved an equitable alternative similar to the previously published PMTA rates. To manage consistency with other COPAS economic factors, COPAS, upon annual Council approval, will begin publishing automotive rates effective April 1, 2014. The annual rates will be provided at no charge. For January through March 2014, COPAS recommends operators using PMTA rates continue to use the 2013 PMTA rates. For convenience, the 2013 PMTA rates are reprinted here, with permission. For a complete discussion, please refer to COPAS MFI 55.
COPAS Update – Economic Factors • Annual Overhead Adjustment • Annual Employee Benefits Rate Upper Limit • Annual Audit Per Diem Rate • Annual Workers Compensation Insurance Manual Rates • Annual Loading & Unloading Rates • Annual Used Equipment Percentages
Types of COPAS Publication Types • MF Model Forms Majority • MFM Model Form Modifications Majority • MFI Model Form Interpretation 2/3 • AG Accounting Guidelines Majority • TR Training & Reference Board • We have KNOWLEDGEABLE members in what COPAS documents say, but the average person can’t quote ‘chapter and verse.’
COPAS Update –Publications Process Track the progress of the draft projects by visiting the COPAS website www.copas.org
COPAS Update – New Publications MFI-54 Well Containment Service Provider Costs • New safety requirements for deepwater drilling • Operators must prove access to one of the two well containment organizations • Addresses cost allocation of ownership, member fees and penalties • Addresses cost allocation of containment system operating costs
COPAS Update – New Publications AG-29 Allocation of Shared Well Pad Costs • New requirements for ‘super’ pads to reduce environmental impact create many previously unencountered cost allocation issues • How to allocate costs among all the wells to be drilled on a pad • How to allocate costs to modify an existing pad to accommodate more wells • What costs are to be shared vs paid for by new or existing wells • How to allocate costs of new or replacement equipment at a central battery
COPAS Update – New Publications MFI-35 Chargeability of Training Costs to the Joint Account • Update to the 1997 edition • To include chargeability of contractor training • A table listing chargeable vs. non-chargeable training • Expands discussion on training for non-field employees • Resolve issues on new types of training (such as behavior-based)
COPAS Update – New Publications MFI-38 Material Pricing Manual • Current MFI-38 not changing, however expanding to include all materials-related documents. • Comprehensive manual for understanding material transfers, condition percentages, transfer pricing, taxes, loading/unloading costs, etc. • Consolidate the numerous materials-related publications into a comprehensive manual • Resolve new issues such as critical spares, different pricing mechanisms, premium pricing, etc.
COPAS Update – New Publications MFI-xx Chargeability of Rig-Related Costs(Replacement for AG-25) • New requirements and costs for deepwater rigs create clarification of costs which may be billed to non-operators • Will address chargeability issues so the existing AG-25 will be rolled into this document and the publication reclassified to an MFI • How to allocate costs for rig moves, rig modifications, and dead time • How to allocate costs of construction oversight, commissioning, and mobilization • How to allocate costs when a rig is shared or loaned to another operation
COPAS Update – New Publications TR-XX Gas Processing Agreements Overview • An overview of Gas Processing Agreements for newer professionals and those without exposure or experience with natural gas production, transportation and processing it into residue gas and plant products. • The guide will help users better understand terms and provisions in processing agreements, the reasons for certain provisions, and the implications for producers and processors of the different ways agreements can be structured.
COPAS Update – Other Activity • TR-9 Education Guide • Severance Tax Guide, Royalty Incentive Guide • Change in Survey Methodology for the Employee Benefits Survey • Computerized Equipment Pricing System – encourage greater participation so pricing information is representative • Just made changes to how the COPAS Publications CD (now ePublications) is distributed
COPAS UpdatePossible Future Projects • Water as a “Material?” • Production Water • Fresh Water • Recycling • Ownership – who owns it? • A waste product or not? • Compensation – who gets paid for it? • Court Cases • Audit Rights/Protocol
COPAS Update - Future Projects • Where do we find project opportunities? • Emerging Issues Subcommittees • Audit & Revenue Standing Committees • Industry Demand • Industry Trends
COPAS Update – Project Status Track Project Status: On the Website In each ACCOUNTS
COPAS Update – Project Teams • Have some energy around participating in one of these current (or future) project teams? • Call Tom Wierman (316) 841-7966 • Attend a COPAS meeting and volunteer • Touch base with a society committee chair
COPAS Update – MAP • Marketing Advisory Program • Market COPAS to Industry Leaders • Improve our communication on value of membership • Increase company support • Increase human resource efforts for COPAS projects
COPAS Update – Company Support The COPAS Vision: THE sourceof business and accounting solutions for the energy industry.
COPAS Update – Company Support COPAS C – Cost Effective O – One of a Kind P – Participation A – Accreditation S – Source
COPAS Update – Company Support THE source of business and accounting solutions for the energy industry. S – Sharing O – Opportunity U – United R – Return on Investment C – Continuing Education E – Expertise
COPAS Update – Company Support COPAS Mission: COPAS provides expertisefor the Oil and Gas Industry through the developmentof Model Form Accounting Procedures, Publications, and Education. We are a forum for the active exchange of ideas which result in innovativebusiness and accounting solutions.
COPAS Update – Company Support Strategic Planning - Core Values Integrity Ethics Networking Exchange Collaboration Mentor Dedication Educate/Train Teamwork Innovation Responsive Respect Intellectual Honesty Credibility
COPAS Update – Company Support • Elevator Speech For more than 50 years, COPAS has established itself as the respected and go-to source of business and accounting solutions in the energy industry. It publishes documents that are incorporated into contracts and issues industry-accepted guidelines used by revenue and expense accountants, auditors and managers in their daily job.
COPAS Update – Company Support Volunteer Recognition • Company thank you notes/letters • Press Releases • Face to Face appreciation
COPAS Update – Company Support COPAS benefits YOU YOUR COMPANY THE INDUSTRY