Our experience tells us that most operators undercharge one or more types of overhead. Martindale will review your internal procedures and make recommendations to ensure the efficient and correct calculation of all overheads owed under your joint operating agreements, production handling agreements, and other governing agreements.
Sometimes called “reverse JV audits,” a chargeability review is performed to determine if an operator is billing all contractually chargeable costs to non-operators under the governing joint operating agreements. A chargeability review ensures all contractually chargeable costs are billed to non-operators and typically includes overhead, labor, operator-owned facilities.
Our experience tells us that most operators undercharge one or more types of overhead. Martindale will review your internal procedures and make recommendations to ensure the efficient and correct calculation of all overheads owed under your joint operating agreements, production handling agreements, and other governing agreements.
Sometimes called “reverse JV audits,” a chargeability review is performed to determine if an operator is billing all contractually chargeable costs to non-operators under the governing joint operating agreements. A chargeability review ensures all contractually chargeable costs are billed to non-operators and typically includes overhead, labor, operator-owned facilities.
Martindale has performed thousands of audits, from simple to complex operations, so our team understands operations and how the governing agreements apply in a myriad of situations. If you have recently acquired properties, are developing new operations, or simply haven’t performed a chargeability review, let Martindale come in and review your internal costs and agreements to ensure you are billing out all contractually eligible costs.
Matt Pilkington