LEARN
What is Joint Interest Billing (JIB)?
Definition
Joint Interest Billing (JIB) is the process by which costs associated with jointly owned oil and gas properties are allocated and billed among working-interest owners. The operator generally records costs associated with operating or developing the property and bills the other working-interest owners for their respective shares. JIBs can include operating expenses, capital expenditures, and other costs allocable under the applicable operating and accounting agreements. The amount billed to each owner depends on the ownership interests and the terms governing the property.
Practical questions
- What costs are being billed to this property or well?
- What portion of the costs belongs to each working-interest owner?
- Which expenses are operating costs versus capital-related costs?
- Why did the JIB increase this month?
- What supporting detail sits behind a particular charge?