Oil & Gas

Capacity Reservation Fee Income

Earning a fee from a third party reserving pipeline capacity regardless of actual throughput.

Account NameTypeDebit ($)Credit ($)
Capacity Fee ReceivableAsset (+)1,200,000.00-
Capacity Reservation Fee RevenueRevenue (+)-1,200,000.00

💡 Accountant's Note

Capacity reservation fees provide stable, predictable income for pipeline and processing owners. They are recognized over the reservation period regardless of whether the capacity is used.

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