COPAS Update - COPAS Of New Orleans


Petroleum Accountants Society of New Orleans

January 15, 2014

Tom Wierman, Executive Director

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

Company support initiative taking root

Mentoring program underway

Working on rolling out a pre-packaged CPE presentation



Social Media impact

Volunteer Thank You Notes/Press Releases

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

Just over 4,000 members

Thank you for your contributions to the industry

Employers – THANK YOU for supporting the important work of COPAS

Five Largest Societies

Colorado – 987

Houston – 542

Oklahoma City - 430

Fort Worth – 310

Dallas - 309

But remember, in COPAS, everyone is equal

Inaugural Education Day event in San


Four Hours CPE - Reasonably priced

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 opportunities

NASBA Discussion

Work with Committee Chairs on agendas

Publish 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 possibilities

Credentialing conference attendance

BOE is working to increase test questions coverage

Investigating Review 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




Data Analysis


Focus Groups

Job Analysis vendor selection by end of


Stay Tuned

Not anticipating sweeping changes in the very near future, changes will take several months

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

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

MF Model Forms Majority

MFM Model Form Modifications Majority

MFI Model Form Interpretation 2/3



Accounting Guidelines

Training & Reference



We have KNOWLEDGEABLE members in what COPAS documents say, but the average person can’t quote ‘chapter and verse.’

Track the progress of the draft projects by visiting the COPAS website

MFI-54 Well Containment Service Provider


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


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

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)

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.

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

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.

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

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

Where do we find project opportunities?

Emerging Issues Subcommittees

Audit & Revenue Standing Committees

Industry Demand

Industry Trends

Track Project Status:

On the Website


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

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

The COPAS Vision:

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

C – Cost Effective

O – One of a Kind

P – Participation

A – Accreditation

S – Source

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 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



Ethics Networking

Collaboration Mentor



Educate/Train Teamwork

Responsive Respect

Intellectual Honesty Credibility

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.

Volunteer Recognition

Company thank you notes/letters

Press Releases

Face to Face appreciation

COPAS benefits




Changes in Demographics prompts us to be looking for our next leaders

Succession planning is part of our goals

Steady supply of new professionals entering the Oil and Gas Industry

Need 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?

COPAS MPACT Energy Education

Venture began in 2010 and has grown yearly

Standard Joint Interest and Revenue Courses

Level 2 Joint Interest and Revenue Courses

Operations for the Oil and Gas Accountant

Specialized training related to Farm-out,

Casing Point, Carried Interests

COPAS MPACT Energy Education

Gas Balancing

2005 Accounting Procedure

New classes added to 2014 Schedule – send a note to

to get on a notification list

Knowing Your COPAS Documents assimilated into COPAS MPACT

Developing additional courses

Some possible self-study courses

Possibly some courses using different delivery platforms

Customized classes for employers OR society needs

Open to ideas or suggestions of course material for any length of time


◦ 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



◦ 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


◦ 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 out

We don’t communicate the same way today

Learning styles are different

Points of reference are different

Are you following us on

Important Changes Coming

Downloadable electronic Zip File

Same functionality

Receive & pay invoice

Receive link & download/extract files

Enterprise licensees will continue to receive a


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

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

Member Services

Car Rentals – group rates

◦ Anyone in the organization can use these discounts

◦ Group numbers have been published in


◦ More details at

member benefits link under Quick Links section

Member Services

Shortly you’ll hear about additional member benefit offerings

It “pays” to be a member

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 and Communication


• Follow the progress of draft publications, project calendar

• Register for meetings

• Member benefit summary



Increasing Presence at Industry Events &

Society Meetings


◦ 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

2012 – 2013 Society Visits

Kansas – September 11

Colorado – September 12

Anchorage – November 7

Abilene – January 9

San Antonio – January 15

Corpus Christi – January 22

Dallas – February 14

New Mexico – February 21

Wichita Falls – March 14

Tulsa – November 13

Canada– November 21

San Juan Basin – March 19

Michigan – April 18

Permian Basin – November 27 Rocky Mountain – May 15

Oklahoma City – May 21

Mississippi – May 29

2013-2014 Society Visits

Fort Worth – September 9

Houston– November 21

New Orleans – January 15

California – February 19

Tulsa – March 11

Michigan – 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

Spring, 2014

Glendale, Arizona



April 21 - 25

Fall 2014

Fort Worth

April 20 – 24, 2015

Hilton Hotel Downtown

New Mexico

October 18 – 22, 2015

Embassy Suites

Albuquerque, NM

Oklahoma City

April, 2016


September, 2016

Ark-La-Tex and Houston

April, 2017


October, 2017

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 meetings

Using COPAS products such as Economic Factors

Attend committee meetings whenever possible, learn the issues, and participate

Take advantage of the CPE and Training opportunities – inexpensively priced

Meet people – expand your knowledge network

Study COPAS documents for your focus area

Use other tools available on the COPAS website


Attend COPAS meetings

Volunteer for something recruit a new member help at Education Day suggest a speaker or topic of interest to present at society or committee meetings be an active committee member serve in a leadership role