Am I entitled to itemized details for P&A expenses on Joint Interest Billing?

Accounting and Taxes
1

The cost to Plug & Abandon a well (in Oklahoma) is double or triple the AFE.

Should I speak to someone in the accounting department first, to get more specific information on the JIB and then speak to someone in the field for an explanation of the overages and to find out the date the work was completed?

Are there any restrictions on applying overhead and payroll to JIB?

One company did reverse about 6 months of overhead, back to the month of final production. Should I ask accounting what their rule is?

I sent them a check for $6,000 last month, thinking that was the final bill, but got another JIB invoice this month for $4,000. Not sure if that is final either.

If P&A is completed this year (2011) when will the final Property Tax be charged?

Are there other common accounting errors or overcharges I should look for?

Does the Oklahoma Commission do any auditing of JIB?

Any and all advise or resources are welcome.

2

Mary,

I'm assuming you are a WI owner in the referenced well otherwise you would not be receiving a JIB. With that being said you have every right as a WI owner to have all itemized bills available to you. If I were you I would contact the operator and request all all itemized expenditures. There is a caviat to that in which they will likely tell you they will get them to you, but it might take a long time. The operator is required by law to have insurance, however i't might not include plugging costs.(although it should) You should have had the opportunity to opt out or in for insurance. They send a form out every year. Generally you have to opt out by written request to do so. BTW, What percentage to you own in the well?