their oil and gas royalty and net-profit-share reporting and payment obligations are met on each of their leases, regardless of any operating or payment agreements in effect. NPSL Report Forms: The NPSL Report filing standardizes NPSL reporting and payments for all Net-Profit-Share lessees. The NPSL reports include the: Account (AC) Report: the AC Report contains three sections, the Development Account (DV), Production Revenue (PR) and the Net Profit Payment (NP) that report NPSL lease development and operating costs, production revenue and net profit payments information. Volume/Value (VV) Report: The VV Report contains current production activity for the NPSL in an Unit” including oil and gas quantity, royalty quantity, starting value, “Accounting adjustments to starting value, total value, royalty value, royalty expense, abandonment cost per unit, and total abandonment cost. Petroleum Production Tax Lease Allowance (PT) Report: the PT Report contains 9 sections that both use information from the AC Report and provide information to the AC Report and includes both production net revenue and credit information. Royalty and NPSL Payment Summary (S1) Report: The S1 Report must accompany any NPSL payment and includes information on the principal and interest reported paid on the Net Profit AC Report. Payment amounts are summarized by lease and broken out into principal, interest and total payments. NPSL Lease Status: The contents of a complete NPSL Report filing vary depending on the status of the lease. Non-producing NPSL Lease Filing: A lease is in this status if it is not producing commercial or saleable quantities of hydrocarbons. A complete NPSL filing for a Non-Producing Lease in Non-Net-Profit status consists of the following reports monthly: Account (AC) Report Petroleum Production Tax Lease Allowance (PT) Report Supplemental Reports (as required by DO&G) Producing NPSL Lease Filing: A lease is in this status if it produces commercial or saleable quantities of hydrocarbons. Once a lease starts producing the AC Report, PT Report, and VV Report must be filed together as a package beginning with the first month of production. There are two Producing Lease categories: Net-Profit Non-Payout Status:
their oil and gas royalty and net-profit-share reporting and payment obligations are met on each of their leases, regardless of any operating or payment agreements in effect. NPSL Report Forms: The NPSL Report filing standardizes NPSL reporting and payments for all Net-Profit-Share lessees. The NPSL reports include the: Account (AC) Report: the AC Report contains three sections, the Development Account (DV), Production Revenue (PR) and the Net Profit Payment (NP) that report NPSL lease development and operating costs, production revenue and net profit payments information. Volume/Value (VV) Report: The VV Report contains current production activity for the NPSL in an “Accounting Unit” including oil and gas quantity, royalty quantity, starting value, adjustments to starting value, total value, royalty value, royalty expense, abandonment cost per unit, and total abandonment cost. Petroleum Production Tax Lease Allowance (PT) Report: the PT Report contains 9 sections that both use information from the AC Report and provide information to the AC Report and includes both production net revenue and credit information. Royalty and NPSL Payment Summary (S1) Report: The S1 Report must accompany any NPSL payment and includes information on the principal and interest reported paid on the Net Profit AC Report. Payment amounts are summarized by lease and broken out into principal, interest and total payments. NPSL Lease Status: The contents of a complete NPSL Report filing vary depending on the status of the lease. Non-producing NPSL Lease Filing: A lease is in this status if it is not producing commercial or saleable quantities of hydrocarbons. A complete NPSL filing for a Non-Producing Lease in Non-Net-Profit status consists of the following reports monthly: Account (AC) Report Petroleum Production Tax Lease Allowance (PT) Report Supplemental Reports (as required by DO&G) Producing NPSL Lease Filing: A lease is in this status if it produces commercial or saleable quantities of hydrocarbons. Once a lease starts producing the AC Report, PT Report, and VV Report must be filed together as a package beginning with the first month of production. There are two Producing Lease categories: Net-Profit Non-Payout Status: