Oil & Gas Customer Recovers $100,000 for Incorrect Compression Fees and Fuel Deducts

Contract Compliance • Incorrect Terms on Statement

Situation

A high-performing oil and gas customer could not understand why realized prices for its natural gas were lower than budgeted and forecasted. Customer engaged AEGIS to perform a full review of the pay statements it received from the purchaser of its natural gas.

Solution

AEGIS quickly identified that a well was incorrectly mapped to a low-pressure gathering system. In fact, the well was receiving high pressure service. The incorrect mapping caused multiple errors in realized prices, including an incorrect compression fee and an in-kind reduction of sales gas due to erroneous fuel deduct. Both had a meaningful impact on realized prices.

Outcome

AEGIS notified the customer and contacted the operator responsible for the pay statement. AEGIS provided the data it found to the operator and performed a full reconciliation of the impact on realized prices. The operator acknowledged the error and remitted $100,000 to the customer as a make whole payment.

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