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Selective Processing ( RELNISOIL_46B_PC_SELPROC )

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Short text

Selective Processing

Use

The Selective Processing transaction allows you to select which components should be used for selective plant processing.

There are five components to which selective processing can be applied:

• Ethane (C2)

• Propane (C3)

• Isobutane (IC4)

• Normal-Butane (NC4)

• Pentane Plus (C5+)

Components are elected at a plant level, and become available for election by individual working interest owners. Any components not elected at a plant level are not available for election by individual working interest owners.

At the plant level, there is an option to select components that default for an owner when an owner does not make an election.

When an owner elects components, it is not guaranteed that the owner will receive entitlements in natural gas liquids (NGLs). NGL entitlements are based on total elected volume compared to total NGL volume.

When the total elected volume is less than the total physical NGL volume, owners who did make an election receive all of their entitlements in NGLs, while owners who did not make an election receive a portion of their entitlement in NGL's and residue.

When the total elected volume is greater than the total physical volume, owner who did make an election receive a portion of their entitlements in NGLs and residue, while owner who did not make an election receive all of their entitlements in residue.

When the total elected volume is zero, owners receive a portion of their entitlements in NGLs.

Selective processing ensures accuracy by using moles as the unit of measure.

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