Example
Overview: One well (Well #1) flowing into a facility (Facility #1):
Well #1 Settings:
- WI: 50%
- Daily Rate: 100e3m3/day
Facility #1 Settings:
- WI: 100%
- Operating Costs: $20/e3m3
- Processing Fees: $25/e3m3
- “Also Add All Local Facility Operating Costs as Processing Fees” not checked
- “Generate Process Fee Revenue at this Facility” checked
Results
- Well #1 will incur a Processing Fee Expense of $2,500/day ($1,250/day on a WI basis)
- Facility #1 will recognize $2,500/day in revenue and $2,000/day in operating costs for a net of $500/day on both a gross and WI basis