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Production Taxes Overview

This document provides a detailed overview of production-taxes in an economic model. The main properties (econ functions) include adValoremTax and severanceTax. These properties are defined by a series of objects that set parameters for economic functions in an economic model.

Example Response​

{
        "id": "6463e9e105bfb500218f828e",
        "copiedFrom": null,
        "name": "Production Taxes Demo",
        "tags": [],
        "unique": false,
        "createdBy": "6283eac6241df8001331f6a3",
        "lastUpdatedBy": "6283eac6241df8001331f6a3",
        "createdAt": "2023-05-16T20:38:57.818Z",
        "updatedAt": "2023-05-16T23:20:25.827Z",
        "adValoremTax": {
            "deductSeveranceTax": false,
            "shrinkageCondition": "shrunk",
            "calculation": "nri",
            "rateType": "gross_well_head",
            "rowsCalculationMethod": "non_monotonic",
            "escalationModel": {
                "escalationModel1": "none",
                "escalationModel2": "none"
            },
            "rows": [
                {
                    "dollarPerBoe": 100,
                    "offsetToFirstSegment": 2
                }
            ]
        },
        "severanceTax": {
            "state": "texas",
            "shrinkageCondition": "shrunk",
            "calculation": "nri",
            "rateType": "gross_well_head",
            "rowsCalculationMethod": "non_monotonic",
            "oil": {
                "escalationModel": {
                    "escalationModel1": "64629fb11cb0cc0021eaaa38",
                    "escalationModel2": "none"
                },
                "rows": [
                    {
                        "dollarPerBbl": 0.0081,
                        "offsetToFpd": 20,
                        "pctOfRevenue": 4.6
                    },
                    {
                        "dollarPerBbl": 0,
                        "offsetToFpd": 20,
                        "pctOfRevenue": 0
                    },
                    {
                        "dollarPerBbl": 0,
                        "offsetToFpd": 20,
                        "pctOfRevenue": 0
                    }
                ]
            },
            "gas": {
                "escalationModel": {
                    "escalationModel1": "none",
                    "escalationModel2": "64629fb11cb0cc0021eaaa38"
                },
                "rows": [
                    {
                        "dates": "2022-01-01",
                        "dollarPerMcf": 0.0007,
                        "pctOfRevenue": 7.5
                    },
                    {
                        "dates": "2023-01-01",
                        "dollarPerMcf": 0,
                        "pctOfRevenue": 0
                    }
                ]
            },
            "ngl": {
                "escalationModel": {
                    "escalationModel1": "none",
                    "escalationModel2": "none"
                },
                "rows": [
                    {
                        "dollarPerBbl": 0.0001167,
                        "oilRate": 3,
                        "pctOfRevenue": 7.5
                    },
                    {
                        "dollarPerBbl": 0,
                        "oilRate": 6,
                        "pctOfRevenue": 0
                    },
                    {
                        "dollarPerBbl": 0,
                        "oilRate": 9,
                        "pctOfRevenue": 0
                    }
                ]
            },
            "dripCondensate": {
                "escalationModel": {
                    "escalationModel1": "64629fb11cb0cc0021eaaa38",
                    "escalationModel2": "64629fb11cb0cc0021eaaa38"
                },
                "rows": [
                    {
                        "dollarPerBbl": 0.0081,
                        "entireWellLife": "Flat",
                        "pctOfRevenue": 4.6
                    }
                ]
            }
        }
    }

Econ Functions​

  • adValoremTax: (required) This object includes the following properties deductSeveranceTax, shrinkageCondition, calculation, rateType, rowsCalculationMethod, escalationModel, rows
  • severanceTax: (required) This object includes the following properties state, shrinkageCondition, calculation, rateType, rowsCalculationMethod,oil, gas, ngl, and dripCondensate.

adValoremTax​

  • deductSeveranceTax: (required) Boolean
  • shrinkageCondition: (required) string
  • calculation : (required) string
  • rateType: (required) string
  • rowsCalculationMethod: (required) string
  • escalationModel: (required) object
  • rows: (required) array

rows​

  • dollarPerBoe, pctOfRevenue or dollarPerMonth: (one required) A number representing the dollar amount per barrel of oil equivalent (Boe), the dollar amount per month, the percentage of revenue.
  • dollarPerBoe, pctOfRevenue or dollarPerMonth: (one required) A number representing the dollar amount per barrel of oil equivalent (Boe), the dollar amount per month, the percentage of revenue. Note: These options are the same as the previous field.
  • entireWellLife, offsetToFpd, offsetToAsOf, offsetToDiscountDate, offsetToFirstSegment, offsetToEndHistory, dates, oilRate, gasRate, waterRate: (one required) Various criteria related to well life and production rates.
"adValoremTax": {
            "deductSeveranceTax": false,
            "shrinkageCondition": "shrunk",
            "calculation": "nri",
            "rateType": "gross_well_head",
            "rowsCalculationMethod": "non_monotonic",
            "escalationModel": {
                "escalationModel1": "none",
                "escalationModel2": "none"
            },
            "rows": [
                {
                    "dollarPerBoe": 100,
                    "offsetToFirstSegment": 2,
                    "pctOfRevenue": 2.5
                }
            ]
        }

severanceTax​

  • state: (required) string
  • shrinkageCondition: (required) string
  • calculation: (required) string
  • rateType: (required) string
  • rowsCalculationMethod: (required) string
  • oil: (required) object
  • gas: (required) object
  • ngl: (required) object
  • dripCondensate: (required) object

oil, gas, ngl, and dripCondensate​

  • escalationModel: (optional) An object that refers to the EscalationModelObject definition. It includes two properties: escalationModel1 and escalationModel2.
  • rows: (required) An array of objects. Each object in the array should match the.

rows​

  • dollarPerBbl, dollarPerMcf pctOfRevenue or dollarPerMonth: (required) A number representing the dollar amount per barrel (Bbl), the dollar amount per one thousand cubic feet (Mcf) of natural gas, the dollar amount per month, or the percentage of revenue.
  • dollarPerBbl, dollarPerMcf pctOfRevenue or dollarPerMonth: (required) A number representing the dollar amount per barrel (Bbl), the dollar amount per one thousand cubic feet (Mcf) of natural gas, the dollar amount per month, or the percentage of revenue.
  • Note: These options are the same as the previous field.
  • entireWellLife, offsetToFpd, offsetToAsOf, offsetToDiscountDate, offsetToFirstSegment, offsetToEndHistory, dates, oilRate, gasRate, waterRate: (one required) Various criteria related to well life and production rates.
"severanceTax": {
            "state": "texas",
            "shrinkageCondition": "shrunk",
            "calculation": "nri",
            "rateType": "gross_well_head",
            "rowsCalculationMethod": "non_monotonic",
            "oil": {
                "escalationModel": {
                    "escalationModel1": "64629fb11cb0cc0021eaaa38",
                    "escalationModel2": "none"
                },
                "rows": [
                    {
                        "dollarPerBbl": 0.0081,
                        "offsetToFpd": 20,
                        "pctOfRevenue": 4.6
                    },
                    {
                        "dollarPerBbl": 0,
                        "offsetToFpd": 20,
                        "pctOfRevenue": 0
                    },
                    {
                        "dollarPerBbl": 0,
                        "offsetToFpd": 20,
                        "pctOfRevenue": 0
                    }
                ]
            },
            "gas": {
                "escalationModel": {
                    "escalationModel1": "none",
                    "escalationModel2": "64629fb11cb0cc0021eaaa38"
                },
                "rows": [
                    {
                        "dates": "2022-01-01",
                        "dollarPerMcf": 0.0007,
                        "pctOfRevenue": 7.5
                    },
                    {
                        "dates": "2023-01-01",
                        "dollarPerMcf": 0,
                        "pctOfRevenue": 0
                    }
                ]
            },
            "ngl": {
                "escalationModel": {
                    "escalationModel1": "none",
                    "escalationModel2": "none"
                },
                "rows": [
                    {
                        "dollarPerBbl": 0.0001167,
                        "oilRate": 3,
                        "pctOfRevenue": 7.5
                    },
                    {
                        "dollarPerBbl": 0,
                        "oilRate": 6,
                        "pctOfRevenue": 0
                    },
                    {
                        "dollarPerBbl": 0,
                        "oilRate": 9,
                        "pctOfRevenue": 0
                    }
                ]
            },
            "dripCondensate": {
                "escalationModel": {
                    "escalationModel1": "64629fb11cb0cc0021eaaa38",
                    "escalationModel2": "64629fb11cb0cc0021eaaa38"
                },
                "rows": [
                    {
                        "dollarPerBbl": 0.0081,
                        "entireWellLife": "Flat",
                        "pctOfRevenue": 4.6
                    }
                ]
            }
        }

Definitions​

Calculation​

This property is a string defining the type of calculation used. Possible values are:

  • "100_pct_wi"
  • "lease_nri"
  • "lease_nri_minus_one"
  • "nri"
  • "nri_minus_one"
  • "one_minus_nri"
  • "one_minus_lease_nri"
  • "one_minus_wi"
  • "wi"
  • "wi_minus_one"

dates​

This is a string property representing a date. The format of the date is YYYY-MM-DD, and the date must fall between 1900-01-01 to 2262-04-01. For the DD portion of the date, the value must be 01.

deductSeveranceTax​

A Boolean that determines if you want to deduct severance tax. Possible values are true and false.

dollarPerBbl​

A number representing the dollar amount per barrel (Bbl). This must be a number between 0 and 100 with a minimum decimal precision of 0.000001.

dollarPerBoe​

A number representing the dollar amount per barrel of oil equivalent (Boe). This must be a number between 0 and 100 with a minimum decimal precision of 0.000001.

DollarPerMcf​

A number representing the dollar amount per one thousand cubic feet (Mcf). This must be a number between 0 to 100 with a minimum decimal precision of 0.000001.

dollarPerMonth​

A number representing the dollar amount per month. This must be a number between 0 and 1000000 (1,000,000) with a minimum decimal precision of 0.000001.

entireWellLife​

This is a string property that can only have the value "Flat".

escalationModel (Object)​

This object has two properties:

  • escalationModel1: A string which must be either the Escalation Model ID (example: "6463e9e105bfb500218f828e") or "none".
  • escalationModel2: A string which must be either the Escalation Model ID (example: "6463e9e105bfb500218f828e") or "none".

gasRate​

This property represents a range, defined as a number. The possible range for this value is from 0 to 10000000000 (10,000,000,000) inclusive with a minimum decimal precision of 0.000001.

oilRate​

This property represents a range, defined as a number. The possible range for this value is from 0 to 10000000000 (10,000,000,000) inclusive with a minimum decimal precision of 0.000001.

offsetToAsOf​

This property represents a time period, defined as an integer. The possible range for this value is from 1 to 1200, inclusive.

offsetToDiscountDate​

This property represents a time period, defined as an integer. The possible range for this value is from 1 to 1200, inclusive.

offsetToEndHistory​

This property represents a time period, defined as an integer. The possible range for this value is from 1 to 1200, inclusive.

offsetToFirstSegment​

This property represents a time period, defined as an integer. The possible range for this value is from 1 to 1200, inclusive.

offsetToFpd​

This property represents a time period, defined as an integer. The possible range for this value is from 1 to 1200, inclusive.

pctOfRevenue​

A number representing the percentage of revenue. This

must be a number between 0 and 100 with a minimum decimal precision of 0.000001.

RateType​

String representing the rate type. Only possible value is "gross_well_head".

rowsCalculationMethod​

A string representing the method of calculating rows. Possible values are "monotonic" and "non_monotonic".

ShrinkageCondition​

This property is a string defining the criteria of reduction or contraction of volume. Possible values are: "shrunk" or "unshrunk".

state​

This is a string property that represents the name of a state. The property can take any of the following values:

  • "alabama"
  • "alaska"
  • "arizona"
  • "arkansas"
  • "california"
  • "colorado"
  • "custom"
  • "florida"
  • "idaho"
  • "indiana"
  • "kansas"
  • "kentucky"
  • "louisiana"
  • "maryland"
  • "michigan"
  • "mississippi"
  • "montana"
  • "nebraska"
  • "nevada"
  • "new_mexico"
  • "new_york"
  • "north_dakota"
  • "ohio"
  • "oklahoma"
  • "oregon"
  • "pennsylvania"
  • "pennsylvania horizontal"
  • "pennsylvania vertical"
  • "south_dakota"
  • "tennessee"
  • "texas"
  • "utah"
  • "virginia"
  • "west_virginia"
  • "wyoming"

waterRate​

This property represents a range, defined as a number. The possible range for this value is from 0 to 10000000000 (10,000,000,000) inclusive with a minimum decimal precision of 0.000001.