Operating cost royalties

Miscellaneous Direct Costs Estimates for the cost of maintenance and repairs, operating supplies, royalties, and patents are best based on company records for similar processes. A rough average value for the annual cost of maintenance is 6 percent of the capital cost of the plant. This percentage can vaiy from 2 to 10 percent, depending on the severity of plant operation. Approximately half of the maintenance costs are for materials and half for labor. Royalty and patents costs are in the order of 1 to 5 percent of the sales price of the product. 

Debits Stock cost Naphtha Extra, butanes Direct operating cost Total process costs Ethylizing Taxes and insurance Royalties... 

Note In the above analysis, the annual costs for insurance, local taxes, and maintenance were not changed with varying investment costs. Royalties and catalyst replacement costs were not changed with operating volumes. 

Annual Operating Cost,. The cost of raw materials, labor, utilities, administration, insurance, and royalties, etc., but does not include debt service payments. 

Estimated investment costs for Cases A and B are shown in Table III. Investment costs are based upon erection of the plant on the U.S. Gulf Coast. Erected costs include the first catalyst charge but exclude associated off-site facilities, crystallizer, and royalty charges. Estimated operating costs are shown in Table IV. Utility costs in dollars per calendar day are based upon use of electric drivers for pumps and compressors, maximum use of air coolers, and fired furnaces for reboiling the light ends... 

Estimates of investmort and operating costs of Fischer-Tropsch plants were made in 1953 by the U.S. Bureau of Mines and the National Petroleum Council. The cost of a 27,000-bbl-per-day synthetic liquid-fuels plant using coal-steam-o (ygen pressure gasification was estimated at 290 milUon dollars, not including the costs for a coal mine, royalties, start-up expense, and working capital. With these items included, the total investment cost amounted to 380-400 million dollars, which is equivalent to about 514,500 per daily barrel of oil. 

Variable costs (operating costs) tend to vary with the production level. They include cost of raw materials, cost of product degradation, costs of energy and utilities, direct labor (operating, works transport, supervision, and laboratory control), interest on working capital, royalties. 

Property, State, Federal, and Severance Taxes Plus Royalty Mill Operating Cost... 

Prepare a schedule of technology costs either as lump sum payments or royalties related to operating costs or sales revenues. 

Wind power is essentially free of fuel costs (except for royalties to the land owners), and has rather low operating costs, compared to nuclear power. Capital costs are in the range of half the capital costs of nuclear power. However, wind has a typical capacity factor of only about 30% (there are a few locations where one might expect as high as 40%). Installed capital costs for wind turbine systems have seen a significant increase during the last year, because of inflated copper and reinforced concrete prices. A nominal installation cost of 2000/kW is typical. This is equivalent to 6667/kW at a 100% capacity factor. 

Once production commences (possibly 3-8 years after the first capex) gross revenues are received from the sale of the hydrocarbons. These revenues are used to recover the capital expenditure (capex) of the project, to pay for the operating expenditure (opex) of the project (e.g. manpower, maintenance, equipment running costs, support costs), and to provide the host government take which may in the simplest case be in the form of taxes and royalty. 

The manufacturing cost consists of direct, indirect, distribution, and fixed costs. Direct costs are raw materials, operating labor, production supervision, utihties, suppHes, repair, and maintenance. Typical indirect costs include payroll overhead, quaHty control, storage, royalties, and plant overhead, eg, safety, protection, personnel, services, yard, waste, environmental control, and other plant categories. However, environmental control costs are frequendy set up as a separate account and calculated direcdy. The principal distribution costs are packaging and shipping. Fixed costs, which are insensitive to production level, include depreciation, property taxes, rents, insurance, and, in some cases, interest expense. 

Fixed costs 5. Maintenance 6. Operating labour 7. Laboratory costs 8. Supervision 9. Plant overheads 10. Capital charges 11. Insurance 12. Local taxes 13. Royalties 5-10 per cent of fixed capital from manning estimates 20- 23 per cent of 6 20 per cent of item (6) 50 per cent of item (6) 10 per cent of the fixed capital 1 per cent of the fixed capital 2 per cent of the fixed capital 1 per cent of the fixed capital... 

The oxygen cost for the Pyretron incinerator is 232.50 per hour of operation. At the adjusted throughput rate of 1.05 tons per hoiu, this converts to an oxygen cost of 221.43 tons per hoiu. Since the conventional incinerator uses no oxygen, this cost is considered an incremental cost. Water injection cost for the Pyretron system remain at 0.90 per ton. A royalty fee is also charge by ACI at a flat rate of 7.50 per ton of waste treated. This is an incremental cost for the Pyretron system (D13940M, p. 16-17). 

Among direct production costs, we can list raw materials, utilities, direct operation labour, maintenance, catalysts, royalties, etc. In our case, solvents (THF and pressurised CO2), polymer, and active ingredient are needed on a daily basis. The corresponding quantities were determined using the process simulator, as described in paragraph 8.3.3. In this discussion, additional solvent (THF) losses are supposed to equal 5% of the total flow rate entering the... 

The real breakthrough in soap production was made in 1780 by a French chemist and physician, Nicolas Leblanc, who invented the process of obtaining soda (sodium carbonate, Na2C03) from common salt (the Leblanc process), and increased the availability of this alkali at a reasonable cost. With the development of power to operate factories, soapmaking grew from a cottage industry into a commercial venture and became one of the fastest-growing industries of the modern era. Body soap, which had been a luxury item affordable by royalty and the very rich, became a household item of ordinary folks as well. 

Direct production costs include expenses directly associated with the manufacturing operation. This type of cost involves expenditures for raw materials (including transportation, unloading, etc.,) direct operating labor supervisory and clerical labor directly connected with the manufacturing operation plant maintenance and repairs operating supplies power utilities royalties and catalysts. 

Fixed-capital investment 2. Working capital 3. Total capital investment (1 + 2) 4. Annual income (sales) 5. Annual manufacturing cost (a) Raw materials (b) Labor (c) Utilities (d) Maintenance and repairs (e) Operating supplies (f) Laboratory charges (g) Patents and royalties (h) Local taxes and insurance (i) Plant overhead (j) Other (explain in Notes) 5-T. Total of line 5 ... 

Straight-line method is used for calculating depreciation cost ( 27,000/yr). Calculation of costs per year gives a total of 758,000/yr with this including all costs except those for royalty, income taxes, and startup in the first year of operation. This 758,000 includes the annual depreciation cost of... 

A 70,000 ton/year, 22,000,000 plant was started up in 2001. Since then, it has been operating at capacity for an average of 7200 h/year. It is staffed by 25 full-time production workers ( 32/h), two maintenance workers ( 35/h), and four shift supervisors ( 39/h). All labor rates include payroll and plant overhead. The process consumes 530 kilowatts of electricity ( 0.045/kWh), 50,000 gal/h of water ( 0.15/thousand gal), and 8.75 tons/h of feedstock ( 0.78/lb). Maintenance materials are estimated as equivalent to maintenance labor. Royalties amount to 4.20 per ton of product. The property taxes, insurance, and administrative charges total 5.2% of the total capital investment. Find the direct and indirect annual costs for the plant. 

When James Watt invented the steam engine, he offered it to mine operators at a royalty equivalent to one-third of the fuel savings. He was plagued by piracy and had to hire detectives to catch cheaters, but eventually lowered the royalty to 15%. It is customary for the inventor to assume full responsibility for the cost and risk associated with the research and innovation. The benefits of his labor accrue, in large part, to the public and to the licensees who have assumed no risk. 

Direct costs (DC) Raw materials Operating labour (OL) Direct Supervisory Utilities Maintenance and repairs Operating supplies Laboratory charges Patents and royalties From material balance (10-50% )TOC From manpower (10-20% TOC) 20% OL From energy balance (10-20% TOC) 10% Fc 1 % Ff. (6%OL) 10-20%OL 0-6% TOC... 

Direct costs are composed from the costs of raw materials RAf), utilities Ut), operating labour (OL), direct supervision and clerical labour Ds), maintenance and repairs (M), operating supplies (Os), laboratory charges (Lab), patents and royalties. We may neglect the last term. By using the factors in Table 15.10 we obtain ... 

During the first year of operation, startup costs may occur. During all years of operation, there may be royalty costs. At the conclusion of plant operations, there may be a salvage value for used equipment, Sequip. 

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