Third Party Disbursements

The Disbursement and JIB Manager Integrated Edition allows you to disburse income and expenses to owners that you receive on a third party statement. For example: Your production company has a share in a program of wells from another producer. You then need to disburse that income to other owners. You can do this by using one of the two following methods.

1. Enter the net amounts from the statement you receive with your income. In this case the owner's percentages have been divided up from the percentage your company has in the wells from the other producer. For instance, you have a 20% share in the wells. When you disburse them to your owners, you divide your percentage into amounts relative to the contracts you have with the owners. No owners percentage can be greater than 20%. The sum of all the owners can not be greater than 20%. You then have to add a couple of "dummy" owners to the owner file. One Dummy owner would represent the "other" working interests and the other Dummy owner would represent the "other" royalty interests in the well. The other royalty interests should equal the total royalty interest for the particular well. The other working interests share of the well should be the remainder of 100% - your interest. In this case it would be 80%. This method would require you to mark the particular wells as 3rd party wells on the Well Information screen. These wells would then be denoted on your production reports as being 3rd party. Any owner that has the word "dummy" in the name will not have checks or statements generated.

2. Enter the net amounts from the statement you receive with your income. In this case the owner's percentages are a function of your original percentage as though it were 100%. For instance, your share of the wells is 20%. You then divide this share between 5 other owners. Owner A should have 25%, owner B, 25%, owner C, 30% and owners D and E, 10% each. Using this method will not provide the gross production information for the well.