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
Gas Settlement Statement FAQs
How often are gas settlement statements issued?
Gas settlement statements are typically issued monthly, following the end of the production month. They detail gas volumes sold, sales prices, transportation and processing deductions, and net proceeds. Statements generally arrive 30 to 60 days after production, although timing varies according to contractual arrangements and purchaser reporting procedures.
What are common deductions on a gas settlement statement?
Common deductions on a gas settlement statement include gathering, compression, processing, dehydration, transportation, and marketing charges. Additional deductions can include fuel usage, gas lost during processing, production and severance taxes, and royalties. The applicable deductions depend on contractual terms, ownership arrangements, and the location of the production facilities.