SIG Application Instructions

1. Participation in POSC SIGs is on a company or organization basis. SIG participation is open to all companies and organizations, whether the company or organization is a POSC member or not.
   
2. Beginning January '05, only companies and organizations that are not current POSC members are required to complete a Non-Member Participation Agreement covering a stated period of time (the "Contract Term") and may elect to participate in any number of activities (SIGs, Work Groups, etc.) within the term of the contract. The POSC Membership Agreement, signed by all POSC member organizations, provides the contractual framework for participation in SIGs, Work Groups, and other specially organized activities.

3. To participate in a specific SIG, Work Group, or other organized activity, the participating company or organization must complete the Addendum for that activity. Each Addendum is for a stated period of time. For SIGs, participation can be renewed for each successive six-month period within the SIG Term without the need to sign any further documents.

4. To extend participation in a SIG beyond the end of the a SIG Term, a new SIG Addendum must be completed.
   
5. The SIG fees are stated in the respective SIG Addenda as a percentage of the POSC Annual Membership Dues (without the SIG Package beginning in '04) as presented in the tables below. Beginning in '04, there is a minimum SIG fee of $500.00 per six-month period. SIG fees for current POSC members are based on the member's current annual membership dues. SIG fees for non POSC members are determined based on information provided by the company or organization as described in the next paragraph. Current POSC member organizations that choose the SIG Package option do not pay separate SIG fees for any and all of the SIGs in the SIG Package. For '04 through '06, the SIGs in the SIG Package are: DSS Data Management, PWLS™ Geology, Integrated Operations Production, and WITSML™ Drilling. 
   
6. The company or organization applying to participate in a SIG that is not a POSC member will provide with the SIG Addendum a copy of its (or its affiliate's, whichever is applicable) annual report (or, in the U.S., Form 10-K) containing the company or organization's financial statements for the most recently completed fiscal year. If this information is not public, the company or organization agrees to certify to the Corporation its gross revenues and the gross revenues of any affiliated entities.
   
7. A check or actual bank transfer of funds for the SIG fees stated in the SIG Addendum, if any, payable in U.S. dollars to the Corporation is provided with the SIG Addendum.
   
   2006 Notes: 
   
   A. Renewing participant SIG fees in 2006 are based on the renewing membership dues, which are set to 2005 dues plus 10%. Non-energy participating organizations for which the $25,000 Annual Membership Dues would apply pay SIG fees as follows: 3.5% Fee = 900, 4.5% Fee = 1,100.
   
   B. New participant SIG fees in 2006 are based on the new membership dues, which significantly lower the regular membership fees while raising the SIG fees. 
   
   B.1 The stated SIG fee as a percentage of POSC Annual Membership Dues is higher due to the lower base membership dues, as follows: 4.5% becomes 12.25% and 3.5% becomes 9.5%.
   
   B.2 To encourage multiple SIG participation, discounts are given as follows: 2nd SIG 20%, 3rd SIG 40%, 4th SIG 60%, 5th SIG 80%.
   
   B.3 The minimum SIG fee of $500 is applied after the discounts are applied.
   
   B.4 Non-energy participating organizations for which the $25,000 Annual Membership Dues would apply pay SIG fees as follows:  9.5% Fee = $2,400, 12.25% Fee = $3,100)

Notes:

1. Calendar Year Membership Basis. Beginning January 1, 2004, all memberships and membership renewals will be on a calendar year basis or pro-rated to the relevant portion of the calendar year. 
2. SIG Package. Each member has the option to include a SIG Package with the annual membership fee. The SIGs in the 2004 through 2006 packages are DSS, Geology (PWLS), Integrated Operations (Production), and WITSML Drilling. The content of the SIG package may be changed. Changes will be announced and posted. 
3. Non-Energy Member Dues. To the extent that any For Profit organization (a "Non-Energy Member") with annual gross revenue of at least $50 Million derives less than fifty percent (50%) of its annual gross revenues from activities in the energy industry (including the exploration, production, processing, refining, storage, transportation, distribution or sale of petroleum or other energy-related products, or the sale, leasing, development, repair, operation, installation or promotion of products, software or services relating to the energy industry) ("Energy Industry Activities"), then the Membership Dues for such Non-Energy Member shall equal the greater of:
   1. the Membership Dues that would be payable by such Non-Energy Member based solely on its annual gross revenue attributable to Energy Industry Activities, or
   2. For 2004, 2005, and 2006 renewals, $25,000 without the SIG Package or $29,000 with the SIG Package.
      For 2006 new participating organizations, $25,000 without the SIG Package or $36,000 with the SIG Package

 

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