petroleum accountants society of new orleans january 15, 2014 tom wierman, executive director

COPAS Update“Tell me something

good!”

Petroleum Accountants Society of New Orleans

January 15, 2014Tom Wierman, Executive Director

Membership is up 12%!Expanding emphasis on CPE at COPAS meetingsAPA® Program undergoing a complete reviewPMTA dissolution and COPAS’ responsePublications process & greater transparencyNew publications approved – Fall 2013Continuing efforts to author new publications, refresh prior publications

COPAS Update – Highlights

Company support initiative taking rootMentoring program underwayWorking on rolling out a pre-packaged CPE presentationCOPAS MPACT ACCOUNTS, COPAS EXTRA!, CommunicationSocial Media impactVolunteer Thank You Notes/Press Releases


New CEPS Support ProviderNew Process for Publications “CD”Freshen COPAS image through trade show booth, giveaways, materials and displayOffice Supply Member Discount Program has been steadyMore Member Benefits are about to be launched


MEMBERSHIP

Membership Update

Just over 4,000 members

Thank you for your contributions to the industryEmployers – THANK YOU for supporting the important work of COPAS

Membership Update

Five Largest SocietiesColorado – 987Houston – 542Oklahoma City - 430Fort Worth – 310Dallas - 309

Membership Update

But remember, in COPAS, everyone is equal

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


Initiative to increase CPE opportunitiesNASBA DiscussionWork with Committee Chairs on agendasPublish meeting agendas with CPE hours


Pre-packaged CPE • Qualifying presentation• Leader guide• Discussion questions• Available to ‘fill in’ for

no-show presenters• Beta Test – Education

Committee (Fall 2013)


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 possibilitiesCredentialing conference attendanceBOE is working to increase test questions coverageInvestigating Review Program

COPAS Update – APA® Program

Initiating a program reviewJob Analysis Request for Proposal

1. Literature Review2. Data Gathering3. Framework/Tasks & Knowledge4. Focus Groups5. Content, Format, Layout6. Pretest/Pilot with SMEs7. Surveys8. Data Analysis9. Focus Groups


Job Analysis vendor selection by end of JanuaryStay TunedNot anticipating sweeping changes in the very near future, changes will take several months


Vehicle Authority

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


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.


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

COPAS Update – Economic Factors

Publications Process

Types of COPAS Publication Types

MF Model Forms MajorityMFM Model Form Modifications MajorityMFI Model Form Interpretation 2/3AG Accounting Guidelines MajorityTR 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

COPAS Update –Publications Process

Track the progress of the draft projects by visiting the COPAS website www.copas.org

http://www.copas.org/

Publications – New and Emerging

COPAS Update – New Publications MFI-54 Well Containment Service Provider Costs

New safety requirements for deepwater drillingOperators must prove access to one of the two well containment organizationsAddresses cost allocation of ownership, member fees and penaltiesAddresses cost allocation of containment system operating costs

COPAS Update – New Publications

AG-29 Allocation of Shared Well Pad CostsNew requirements for ‘super’ pads to reduce environmental impact create many previously unencountered cost allocation issuesHow to allocate costs among all the wells to be drilled on a padHow to allocate costs to modify an existing pad to accommodate more wellsWhat costs are to be shared vs paid for by new or existing wellsHow to allocate costs of new or replacement equipment at a central battery

COPAS Update – New PublicationsMFI-35 Chargeability of Training Costs to the Joint Account

Update to the 1997 editionTo include chargeability of contractor trainingA table listing chargeable vs. non-chargeable trainingExpands discussion on training for non-field employeesResolve 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 manualResolve 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-operatorsWill address chargeability issues so the existing AG-25 will be rolled into this document and the publication reclassified to an MFIHow to allocate costs for rig moves, rig modifications, and dead timeHow to allocate costs of construction oversight, commissioning, and mobilizationHow to allocate costs when a rig is shared or loaned to another operation

COPAS Update – New PublicationsTR-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.

TR-9 Education GuideSeverance Tax Guide, Royalty Incentive GuideChange in Survey Methodology for the Employee Benefits SurveyComputerized Equipment Pricing System – encourage greater participation so pricing information is representativeJust made changes to how the COPAS Publications CD (now ePublications) is distributed

COPAS Update – Other Activity

COPAS Update - 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 UpdatePossible Future Projects

COPAS Update - Future ProjectsWhere 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

Have some energy around participating in one of these current (or future) project teams?

Call Tom Wierman (316) 841-7966Attend a COPAS meeting and volunteerTouch base with a society committee chair

COPAS Update – Project Teams

Company Support Initiative

Marketing Advisory ProgramMarket COPAS to Industry LeadersImprove our communication on value of membershipIncrease company supportIncrease human resource efforts for COPAS projects

COPAS Update – MAP

COPAS Update – Company Support

The COPAS Vision:

THE source of business and accounting solutions for the energy

industry.


C – Cost EffectiveO – One of a KindP – ParticipationA – AccreditationS – Source


COPAS

THE source of business and accounting solutions for the energy industry.

S – SharingO – OpportunityU – UnitedR – Return on InvestmentC – Continuing EducationE – Expertise


COPAS Mission:

COPAS provides expertise for the Oil and Gas Industry through the development of Model Form Accounting Procedures, Publications, and Education. We are a forum for the active exchange of ideas which result in innovative business and accounting solutions.


Strategic Planning - Core Values

Integrity Ethics NetworkingExchange Collaboration MentorDedication Educate/Train TeamworkInnovationResponsive Respect Intellectual Honesty Credibility


Elevator SpeechFor 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.


Volunteer RecognitionCompany thank you notes/lettersPress ReleasesFace to Face appreciation


COPAS benefits

YOUYOUR COMPANYTHE INDUSTRY


New Professionals Mentoring

COPAS Update - Mentoring


Changes in Demographics prompts us to be looking for our next leadersSuccession planning is part of our goalsSteady supply of new professionals entering the Oil and Gas IndustryNeed to connect the knowledge of the ‘old’ with the inexperience of the ‘new’Lack of a centralized mechanism to do so


Mentoring Program Goals Better connect newer members to what

COPAS is and what we do Most of us would say we had an early

mentor that made a difference Opportunity to repay Create new project team and committee

volunteers


Mentoring Program Goals Build knowledge and skills, expand and

leverage networks Encourage future leadership For some mentors, rejuvenate interest in

resuming COPAS activities Put into action something we’ve

discussed doing for some time now


What will I need to make this successful?

YOU!

COPAS MPACT

COPAS MPACT Energy Educationwww.copasmpact.com

Venture began in 2010 and has grown yearlyStandard Joint Interest and Revenue CoursesLevel 2 Joint Interest and Revenue CoursesOperations for the Oil and Gas AccountantSpecialized training related to Farm-out, Casing Point, Carried Interests

COPAS Update – COPAS MPACT

http://www.copasmpact.com/

COPAS MPACT Energy Educationwww.copasmpact.com

Gas Balancing2005 Accounting ProcedureNew classes added to 2014 Schedule – send a note to [email protected] to get on a notification list


http://www.copasmpact.com/

mailto:[email protected]

Knowing Your COPAS Documents assimilated into COPAS MPACTDeveloping additional coursesSome possible self-study coursesPossibly some courses using different delivery platformsCustomized classes for employers OR society needsOpen to ideas or suggestions of course material for any length of time


Communication

ACCOUNTS◦ Winter issue mailed in early December◦ Feature Articles on

Coil Tubing Thoughts about when a family might need a CFO Texas UL submission

◦ Regular features◦ New advertising opportunities

NEXT DEADLINE IS JANUARY 24

COPAS Update – Communication

COPAS EXTRA!◦ The less formal publication◦ Used to distribute information in a more timely

manner than the formal print magazine◦ Some information on the ‘lighter side’◦ Will be working on another issue soon


Communication◦ Developed a newsletter directed to society leadership◦ An opportunity for me and my staff to communicate with

society leaders about important events, information we need to collect, procedures, reminders, etc.

◦ From the Field Reports – what are other societies doing for service projects, fun activities, membership enhancement, etc.


Social media will be a tool we use to get the message outWe don’t communicate the same way todayLearning styles are differentPoints of reference are different

COPAS Update – Social Media Challenges

Recent Impact of Social Media

Announcement of Pope Benedict

Announcement of Pope Franc is

Are you following us on


“CD-Rom”

Important Changes ComingDownloadable electronic Zip FileSame functionalityReceive & pay invoiceReceive link & download/extract filesEnterprise licensees will continue to receive a CD.

COPAS Update – CD Rom

CEPS Process

Member Benefits

CEPS Subscriber Changes coming◦ Renewals being sent out now◦ New technical support provider◦ No substantive changes, just how we manage the

access to the product

COPAS Update – CEPS Process

Office Supply Discount Program

◦ Anyone in the organization can use this program◦ Must present a program card at time of purchase◦ Retail store or online purchasing options◦ Discounts good on paper, inks & toners, office

supplies, cleaning supplies, break room items, printing, binding and finishing

◦ COPAS does acquire some nominal benefits too

COPAS Update – What’s New?

Office Depot Savings Example

EVERYDAY SAVINGS40% OFF

Member ServicesCar Rentals – group rates

◦Anyone in the organization can use these discounts

◦Group numbers have been published in COPAS EXTRA! and ACCOUNTS

◦More details at www.copas.org member benefits link under Quick Links section


http://www.copas.org/

Member Services

Shortly you’ll hear about additional member benefit offerings


It “pays” to be a member

Website

There are many, many resources on the website for you to consider• Member Directory• Economic Factors, ‘Calculators,’ and Tools• Discussion Forum• Access to electronic issues of ACCOUNTS, EXTRA!

and Communication• Follow the progress of draft publications, project

calendar• Register for meetings• Member benefit summary

COPAS Update - Website

General Update

COPAS Industry LiaisonsCurrent Relationships

Increasing Presence at Industry Events & Society Meetings

◦ NAPAC◦ Society Education Days◦ Natural Gas Conference (Pennsylvania)◦ PDI Royalty Accounting Conference◦ Oklahoma State Oil & Gas Accounting Conference◦ AICPA Oil & Gas Accounting Conference◦ Federal & Indian Compliance Workshop◦ Oklahoma Society of CPAs◦ Anywhere we think we can have an impact

COPAS Update – Exposure

2012 – 2013 Society VisitsKansas – September 11 Dallas – February 14Colorado – September 12 New Mexico – February 21Anchorage – November 7 Wichita Falls – March 14Tulsa – November 13 San Juan Basin – March 19Canada– November 21 Michigan – April 18Permian Basin – November 27 Rocky Mountain – May 15Abilene – January 9 Oklahoma City – May 21San Antonio – January 15 Mississippi – May 29Corpus Christi – January 22


2013-2014 Society VisitsFort Worth – September 9Houston– November 21New Orleans – January 15California – February 19Tulsa – March 11Michigan – April 17


Winter 2014 Audit, Joint Interest and Emerging Issues Committee Meeting

Doubletree @ Intercontinental Airport Thursday, January 30 9 a.m. to 4 p.m. Registration open $90 registration fee Agenda on the home page

Upcoming Meetings

Upcoming Meetings

Spring, 2014

Glendale, Arizona

Renaissance Glendale

April 21 - 25

Upcoming Meetings

Fall 2014

Future Meeting Locations

Fort Worth April 20 – 24, 2015Hilton Hotel Downtown

New MexicoOctober 18 – 22, 2015Embassy SuitesAlbuquerque, NM


Oklahoma CityApril, 2016

CaliforniaSeptember, 2016


Ark-La-Tex and HoustonApril, 2017

ColoradoOctober, 2017

COPAS Update – What’s New?Call us if we can help:

(303) 300-1131 or 877-99COPAS (992-6727)

Register for an event Process an order for you Assist you with your member access on the

website Help you change contact information

We work for you


Tom Cheri Anita

You’re probably already ‘collecting’ by Attending society meetingsUsing COPAS products such as Economic Factors

Attend committee meetings whenever possible, learn the issues, and participateTake advantage of the CPE and Training opportunities – inexpensively pricedMeet people – expand your knowledge networkStudy COPAS documents for your focus area

So how can you ‘collect’ on your New Orleans society membership?

Use other tools available on the COPAS websiteUse ACCOUNTS, COPAS EXTRA!Attend COPAS meetingsVolunteer for something

recruit a new memberhelp at Education Day suggest a speaker or topic of interest to present at society or committee meetingsbe an active committee memberserve in a leadership role

So how can you ‘collect’ on your New Orleans society membership?

Questions?

petroleum accountants society of new orleans january 15, 2014 tom wierman, executive director

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