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Producer Cost of Service (PCOS)
The Producer Cost of Service (PCOS) is a deduction from gross royalties for the cost of moving the royalty or tax share of raw gas from the wellhead to the inlet of the processing plant. It does not include processing plant costs, which are allowed for in the Gas Cost Allowance. PCOS rates are based on standard cost estimates for equipment in use.
See Section 5.5 of the Oil and Gas Royalty Handbook for more explanation of PCOS rates.
The PCOS Rates Request Screen allows clients to have a report showing the (new) PCOS rates for all facilities and/or production entities at which they have ownership interest in wells.
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