Wellhead Depletions
Wellhead depletion is the result of pumping and presumptive depletion factor (PDF) multiplied together.
In the two examples above based on 100 Common Shares at a 60% Allocation the wellhead depletions are calculated as follows:
Rule 14
153.8 acft x 0.50 PDF = 76.9 acft
Augmentation Plan
88.2 acft x 0.68 PDF = 60 acft
In general, the volume of wellhead depletions associated with a well can be calculate by adjusting the formula for how well pumping is calculated as follows:
Common Shares x Alloc % = Wellhead Dep
Usability Factor
Note: All transfers between farm units are based on an equal transfer of wellhead depletions. If an owner transfers some LAWMA pumping from Farm Unit Y (Well A) that has a lower PDF to Farm Unit Y (Well B) that has a higher PDF, then Farm Unit Y will not get the same amount of pumping that was on Farm Unit Z.
Example:
Farm Unit Y (Well A)
60 acft pump x 0.50 PDF = 30 acft dep
30 acre-feet of wellhead depletions is transferred from Farm Unit Y (Well A) to Farm Unit Z (Well B)
Farm Unit Z (Well B)
30 acft depletion = 40 acft pump
.075
In this scenario, the 30 acre-feet of wellhead depletions resulted in an increase of only 40 acre-feet of additional pumping and not 60 acre-feet that was originally on Farm Unit Y (Well A).
Wellhead depletion is the result of pumping and presumptive depletion factor (PDF) multiplied together.
In the two examples above based on 100 Common Shares at a 60% Allocation the wellhead depletions are calculated as follows:
Rule 14
153.8 acft x 0.50 PDF = 76.9 acft
Augmentation Plan
88.2 acft x 0.68 PDF = 60 acft
In general, the volume of wellhead depletions associated with a well can be calculate by adjusting the formula for how well pumping is calculated as follows:
Common Shares x Alloc % = Wellhead Dep
Usability Factor
Note: All transfers between farm units are based on an equal transfer of wellhead depletions. If an owner transfers some LAWMA pumping from Farm Unit Y (Well A) that has a lower PDF to Farm Unit Y (Well B) that has a higher PDF, then Farm Unit Y will not get the same amount of pumping that was on Farm Unit Z.
Example:
Farm Unit Y (Well A)
60 acft pump x 0.50 PDF = 30 acft dep
30 acre-feet of wellhead depletions is transferred from Farm Unit Y (Well A) to Farm Unit Z (Well B)
Farm Unit Z (Well B)
30 acft depletion = 40 acft pump
.075
In this scenario, the 30 acre-feet of wellhead depletions resulted in an increase of only 40 acre-feet of additional pumping and not 60 acre-feet that was originally on Farm Unit Y (Well A).