UMI - how detailed must a sworn detailed list of well cost be?

Is it the Commissioner of Conservation that decides if a sworn detalied list of well costs submitted by an operator (in reply to a notice from the UMI owner) is detailed enough to comply with the statute, or is that decided in the courts? As to the amount of detail, at what point would the operator be deemed to have not furnished enough detail in their sworn response to the UMI owner?

For instance, if the operator shows in the sworn list "rental equipment . . . $882,205.34" without any other details as to that item on the list, is that sufficient as to that item to meet the requirements, or does the breakout by the operator need to be more specific? Can the operator make it more specific after the 30 days to comply is up, and that makes it then OK in the eyes of the court or Commissioner?

If its the commissioner who decides if a sworn detailed well cost list is detailed enough, at what point would the Commisssioner say that the operator did not comply with the statute (because of lack of specificity) and therefore cannot take any of the well costs because of lack of details? Anthother example would "Drilling Daywork . . . $715,203.32" be sufficient in the sworn detailed descriptive list.

I was under the impression that a detailed list needs to contain the receipts. Is that correct? Can the operator wait until the day of the well cost hearing to produce the receipts or otherwise let the UMI owner really know what the costs were for?

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Wolf,

" . . . until a well starts drilling, there are likely no receipts, yet. "

Are you saying that when a well is in the process of being drilled that an UMI has the legal right to ask for ( er, demand ? ) receipts or other aspects of the expenses involved in the drilling ?

Any comments will be appreciated.

And, BTW, may GOD BLESS AMERICA ! ! ! (take that, Rev. Wright !!!! )
I wonder if you can't "booby trap" your request for a detailed list of expenses? Specify that the list shall contain the names of payees, printouts of all invoices related to the well expenses specifying the well number, etc.

I wonder if this tactic could be used to help claim that the operator did not comply with the statute? i.e. don't give him a chance to give you a phony bill, and then correct the details later.

Sounds like another case where a UMI coop would come in real handy to lay down legal minefields for dishonest operating companies.

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