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
COPAS MPACT
ACCOUNTS, COPAS EXTRA!, Communication
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

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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
Antonio
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
1.
Literature Review
2.
Data Gathering
3.
Framework/Tasks & Knowledge
4.
Focus Groups
5.
Content, Format, Layout
6.
Pretest/Pilot with SMEs
7.
Surveys
8.
Data Analysis
9.
Focus Groups

Job Analysis vendor selection by end of
January
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
AG
TR
Accounting Guidelines
Training & Reference
Majority
Board
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 www.copas.org

MFI-54 Well Containment Service Provider
Costs
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

AG-29
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
In each ACCOUNTS

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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
Integrity
Exchange
Ethics Networking
Collaboration Mentor
Dedication
Innovation
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
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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
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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 www.copasmpact.com
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 www.copasmpact.com
Gas Balancing
2005 Accounting Procedure
New classes added to 2014 Schedule – send a note to info@copasmpact.com
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

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 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 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
CD.

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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
COPAS EXTRA! and ACCOUNTS
◦ More details at www.copas.org
member benefits link under Quick Links section

Member Services
Shortly you’ll hear about additional member benefit offerings

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
ACCOUNTS , EXTRA!
• Follow the progress of draft publications, project calendar
• Register for meetings
• Member benefit summary

Current
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

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

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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
Renaissance
Glendale
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
California
September, 2016

Ark-La-Tex and Houston
April, 2017
Colorado
October, 2017

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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

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
Use ACCOUNTS, COPAS EXTRA!
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