The Challenge: Outdated Systems and Limited Data Access
Scissortail Energy, a subsidiary of Copano Energy, faced significant operational inefficiencies due to their outdated and proprietary plant allocation system. The system was built on an old database platform, making it difficult to use and maintain. One of the biggest drawbacks was that internal teams could not access or extract critical operational data without relying on external consultants.
This outdated system led to several key challenges:
Data Access Issues – Employees had limited visibility into plant allocations and financial data, requiring specialized knowledge to extract reports.
Reliance on Consultants – Extracting information required a consultant’s assistance, increasing costs and slowing down decision-making.
Inefficiencies in Plant Allocations – The system could not easily support various allocation methodologies, leading to manual workarounds.
Complex Financial Processes – Managing division of interest (DOI) payments, force pooling, and tax distributions was cumbersome and required extensive manual effort.
To support its expanding operations in Oklahoma, Scissortail Energy needed a modern, flexible, and automated solution that would provide full control over data, support various allocation methodologies, and streamline revenue payments.
The Solution: TIES Delivers Transparency, Automation, and Financial Efficiency
To overcome these operational bottlenecks, Scissortail Energy implemented TIES, a comprehensive plant processing and revenue management solution. With TIES, the company experienced immediate improvements in several critical areas:
1. Replacing the Proprietary System with a User-Friendly Platform
TIES replaced the legacy proprietary database system, giving internal users full control over their data. Employees could now:
Easily query and extract data without needing a consultant.
Gain real-time visibility into plant allocations and financial reports.
Make faster, data-driven decisions based on accessible information.
2. Supporting Complex Allocation Scenarios
Scissortail Energy required a solution that could handle multiple allocation methodologies across various plants in Oklahoma. TIES delivered:
Fixed recovery allocations for certain plants.
Plant recovery allocations for dynamic processing environments.
Mole percent residue allocations for accurate gas distribution.
With these automated allocation processes, Scissortail eliminated the need for manual adjustments, ensuring accurate and efficient processing.
3. Automating Escheat Payments and Force Pooling Distributions
Managing Escheat payments and force pooling distributions was previously a time-consuming process, requiring manual calculations and extensive paperwork. TIES streamlined these financial processes by:
Automating escheat payments to the state of Oklahoma annually, ensuring compliance with state regulations.
Handling force pooling distributions yearly without manual intervention.
Calculating and reporting production tax payments, including applicable tax discounts.
With TIES, Scissortail significantly reduced administrative workload, minimized errors, and ensured that payments were processed accurately and on time.
The Results: Improved Efficiency, Cost Savings, and Financial Transparency
After implementing TIES, Scissortail Energy transformed its plant processing and revenue management workflows, achieving several key benefits:
Full Data Access – Users gained direct access to operational and financial data, eliminating the need for consultants.
Faster, More Accurate Allocations – Automated allocation methods ensured precise and timely settlements.
Streamlined Financial Operations – DOI payments, force pooling, and tax distributions were fully automated, reducing manual effort.
Regulatory Compliance – Automated escheat and tax reporting simplified compliance with Oklahoma state regulations.
Cost Savings – By eliminating reliance on outdated systems and external consultants, Scissortail reduced operational costs.
Conclusion: Moving Beyond Legacy Systems in Midstream Operations
Legacy and proprietary database systems limit operational efficiency in the midstream sector. Scissortail Energy’s transition from a consultant-dependent system to TIES underscores the importance of automation, accessibility, and financial accuracy.
For midstream companies still using outdated allocation systems, TIES provides a scalable and cost-effective solution to:
Automate plant allocations
Improve financial transparency
Ensure compliance with revenue distribution regulations
If you’re ready to move beyond outdated systems and take control of your data and revenue processes, TIES is the answer.
