Gas settlement statement definition
/What is a Gas Settlement Statement?
A gas settlement statement is a document used in the oil and gas industry that details the amount of gas delivered to a purchaser. The key information on a gas settlement statement includes the following items:
Lease number
Producer identification
Quantity delivered
British thermal unit factor (BTU). The higher the BTU stated, the higher will be the gross dollar amount paid.
Lease production taxes
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FAQs
How often are gas settlement statements issued?
Gas settlement statements are typically issued monthly, reflecting the production, sales, and associated revenues and deductions for the prior month's gas activity. However, the exact frequency can vary based on the terms of the lease agreement, operator policies, or purchaser arrangements. In some cases, statements may be issued quarterly or on a delayed basis, especially for smaller operations or complex revenue structures.
What are common deductions on a gas settlement statement?
Common deductions on a gas settlement statement include gathering, compression, processing, and transportation fees charged to move gas from the wellhead to market. Additional deductions may include fuel retainage, marketing fees, and shrinkage adjustments related to processing losses. Production taxes and royalty burdens are also commonly deducted before calculating the producer’s net payment.