Internal/Special Projects

Overhead Recovery

Martindale will review your internal procedures and make recommendations to ensure the efficient and correct calculation of all overheads owed under your joint operating agreements, production handling agreements, and other governing agreements.  Our experience tells us that most operators undercharge one or more types of overhead; you should call us so you can be one of the few that recovers all overhead to which you are contractually entitled. 

Severance Tax Analysis

Martindale will capably and expertly assist you in verifying that all deductions and exemptions allowed are taken, file for past deductions and exemptions missed, and set up a system to ensure you pay only what you are legally required.  Martindale keeps up to date on the latest rules and regulations regarding rates, deductions, and exemptions allowed.  Additionally, we verify revenues and deductions declared for the County or Parish to determine validity of the taxes you paid or abatements filed.

Gas Balancing

Provisions in gas balancing agreements are as varied as the number of agreements, and our numerous reviews over many years have allowed us to gain a unique and extensive understanding of the different provisions as well as the benefits and challenges of each.  Martindale is the ideal choice to help you design a system to monitor your gas imbalances as a non-operator, or help you design a system to accurately and efficiently account for gas imbalances when you are an operator.

Staffing

It is likely there have been many times you needed to enlist temporary resources to solve specific problems and did not know who could provide the expertise you needed for your specific project.  Martindale is who you need to call; our goal is to solve problems, it’s just what we do.  We also place importance on providing a good fit for your team, so you can finally complete these special projects you have not been able to get done.

With the fast pace of acquisitions, dispositions, accounting system changes, staffing turnover, regulatory requirement changes, and the endless number of other barriers blocking your progress, you should join the many companies that understand drawing on Martindale’s experience in handling special projects is the way get that project done correctly, efficiently, and in a cost-effective manner. 

From project-by-project to long-term staffing, Martindale provides knowledgeable, resourceful, and experienced personnel to help you achieve your goals.

• Oil and gas accounting systems, procedures, and setup
• Incorporate new properties into systems or modify exiting systems to accommodate new properties
• Gas balancing calculations
• Royalty payment setup
• Tubular reconciliations
• Respond to exceptions on operated properties 
• Resolve exception backlogs
• Host non-operator audits
• Conduct physical inventories or reconcile inventory results
• Handle owner relations calls/staff a "call center"
• Joint interest billing collections
• Joint interest billing processing
• Analysis of vendor payables

Insurance Claims

We have assisted many companies and individuals in filing accurate and complete claims for property, Builder’s Risk, catastrophe, and hurricane damages by making sure the claims include all eligible costs.  

We thoroughly review contracts and all internal and external documents and expenses generated by you as well as the property’s operator, if applicable, to make sure all costs are correctly classified and quantified in order to maximize your recovery.

Chargeability Reviews

Are you confident that all contractually billable costs are charged to non-operators across your different properties and various joint operating agreements?  Is overhead billed properly?  Is all overhead billed? Is all chargeable labor, employee and contractor, billed?

Do you have the resources, expertise, and time to determine if you are in full compliance with the Accounting Procedures and Operating Agreements?  Martindale has performed thousands of audits and been involved in drafting many of the COPAS model form accounting procedures that likely govern your properties.  From simple and small operations to the expansive and complex, Martindale understands operations and how the governing agreements apply in the myriad of situations because many of our staff have worked for independent and integrated companies.  We know what is contractually chargeable and what is not, and we know the common areas where operators routinely undercharge their joint accounts.

If you have recently acquired properties, are developing new operations, or simply haven’t performed a chargeability review, let Martindale come in and review your internal costs and agreements to ensure you are billing out all contractually eligible costs.

Due Diligence Assistance

An organized and executed due diligence review is key to successful oil and gas properties and minerals acquisitions. There are many aspects of a due diligence review including title work, operational analysis, reviewing outstanding litigation and environmental issues, and potential accounting issues. Martindale can help evaluate a potential transaction by performing cut-off or post-close cost reviews and settlements from a joint venture or “COPAS” standpoint, review existing operating agreements and accounting procedures, and analyze outstanding joint venture audit claims.

Whether an operated or non-operated property, understanding the unique language or provisions in an operating agreement or accounting procedure is critical to being able to properly implement the agreements and understand what costs can and cannot be charged. Also, companies need precise and clear language in their Purchase and Sale Agreements (PSA) detailing how certain types of costs should be handled:

• How are outstanding audit claims to be resolved and which party receives credits?
• Which party has joint interest billing and revenue audit rights for the pre-effective date period?
• Is the PSA language clear enough as to the cut-off dates for costs and revenues?
• There will likely be transitional accounting performed; is the PSA language clear enough as to the specific dates and time periods each party pays costs and is entitled to revenues?

Other oil and gas acquisition components where Martindale’s experience and expertise can assist:

• Ensure oil and gas revenues materially reflect actual sales transactions.
• Verify oil and gas production reported represents actual production.
• Determine potential royalty-related liabilities on Federal and states leases.
• Analyze high volume vendors, affiliates, and related-party transactions.
• Review fee royalty lease payment provisions and liabilities.

Make Martindale part of your oil and gas acquisitions team to ensure you have the COPAS and joint venture and revenue accounting expertise necessary to effectively execute and implement your acquisition.