Navigation:  Application Modules > Contracts > Contracts > Other Cost Formulas

A contract within EnergySteward.com can have an unlimited number of other cost formulas.  These individual other cost formulas are comprised of volume sensitive tiers, with each tier containing its own set of calculation formula components.  A valid other cost formula will always have at least one tier. Each of these other cost formula tiers can reference their own unique set of price indices, price index baskets, fixed cost components, etc.  

 

Other cost formulas within EnergySteward.com are setup within a hierarchy.  At the top level, you have the formula itself, with rules governing the overall calculations of the formula.  Within the formula you have 1 or more volume sensitive other cost tiers.  These tiers are based on average volume per day (an example could include 0-100 as an initial tier, 101-200 could be next tier, etc.).  Within each tier you have one or more ordered other cost calculation components.  The other cost calculation components dictate how the other cost is determined (price index references, price basket references, fixed cost assignments, etc.).

 

 

These contract other cost formulas are referenced by the various contract meters/wells and routes (if applicable) on the same contract.  In addition, when a deal is setup against the contract, all other cost formulas (and their respective associations to meters/wells and routes) are automatically synchronized to the deal.

 

The following screen indicates where a contract other cost formula is added, updated, deleted or viewed.

 

 

Add Other Cost Formula (button) - Click this button to add a new other cost formula to the contract.

 

View/Edit Grid Button (pencil) - Click this next to the applicable other cost formula in order to change any of the information.

 

Delete Grid Button (red x) - Click this next to the applicable other cost formula that you want to permanently delete.  When you delete a contract other cost formula, then all information relevant to that contract other cost formula will be permanently deleted. The other cost formula will still exist on any deal production months whose volumes are in a 'Frozen' status.  In many cases, it might make more sense to set the appropriate from and thru effective dates to retain historical information on the contract level.   Important note: You will be presented with a confirmation ("Are you sure...?") dialog box prior to deletion.