X12 transaction guide · Government and regulatory

EDI 185 Royalty Regulatory Report

The X12 document used to provide royalty regulatory data for minerals and petroleum extracted from leased property to governments.

Sent by
Lease operator or royalty payer
Received by
Federal or state government agency
Standard
ANSI ASC X12

What is an EDI 185?

The EDI 185 Royalty Regulatory Report is the ANSI X12 transaction set used to provide royalty regulatory data for the extraction of minerals and petroleum products from leased property. The data can be sent to federal and state government agencies.

Companies producing oil, gas and minerals from public lands pay royalties to governments and must report production volumes, values and royalties due by lease. Agencies use the reports to verify payments and audit producers. Current reporting formats are set by each agency.

How the EDI 185 worksDiagram of the EDI 185 Royalty Regulatory Report. Lease operator or royalty payer sends it to federal or state government agency. It usually starts the exchange. It is usually followed by 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BGN (Beginning Segment) and detail: the required LX loop with LX (Transaction Set Line Number). 5 optional loops are listed by their first segment.How the EDI 185 worksRoyalty Regulatory Report: who sends it, where it fits and what the standard marks required1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeEDI 185SENDERLease operator orroyalty payerRECEIVERFederal or stategovernment agency997 or 999 acknowledgment back, if the partners agreeUSUALLY FOLLOWED BY997FunctionalAcknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDsISA … IEAFunctional group, ID code RDGS … GETransaction set 185ST … SEHEADINGBGNBeginning Segment+ 2 optional loops, starting with:N1LMDETAILRequired loop LX · repeats manytimesLXTransaction Set LineNumber+ 2 optional loops, starting with:LMPIDSUMMARY+ 1 optional loop, starting with:ASMBlue box: required loop. Optional loops are listed by the segment that starts them; when a loop is used, that first segment is required. Optional segmentsoutside loops are not drawn.Structure: required segments and loops in the X12 008010 listing for the 185. Your trading partner's implementation guide adds its own requirements.
How the EDI 185 worksDiagram of the EDI 185 Royalty Regulatory Report. Lease operator or royalty payer sends it to federal or state government agency. It usually starts the exchange. It is usually followed by 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BGN (Beginning Segment) and detail: the required LX loop with LX (Transaction Set Line Number). 5 optional loops are listed by their first segment.How the EDI 185 worksRoyalty Regulatory Report: who sends it, whereit fits and what the standard marks required1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeEDI 185SENDERLease operatoror royalty payerRECEIVERFederal or stategovernmentagency997 or 999 acknowledgment back, if the partnersagreeUSUALLY FOLLOWED BY997Functional Acknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDs (ISA… IEA)Functional group, ID code RD (GS … GE)Transaction set 185 (ST … SE)HEADINGBGNBeginning Segment+ 2 optional loops, starting with:N1LMDETAILRequired loop LX · repeats manytimesLXTransaction Set LineNumber+ 2 optional loops, starting with:LMPIDSUMMARY+ 1 optional loop, starting with:ASMBlue box: required loop. Optional loops are listedby the segment that starts them; when a loop isused, that first segment is required. Optionalsegments outside loops are not drawn.Structure: required segments and loops in the X12008010 listing for the 185. Your trading partner'simplementation guide adds its own requirements.

How to read this diagram: the top row shows who sends the 185, to whom, and which documents usually come before and after it. The lower part shows what X12 release 008010 itself requires: the envelopes around the 185 and the segments and loops the standard marks as required, area by area. Optional loops are listed by the segment that starts them rather than drawn in full. This is the standard's minimum, not a trading partner's requirement: each partner's implementation guide usually makes some optional loops mandatory, restricts the codes and may use a different release.

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When it is used

  • Reporting royalties on production from public leases
  • Reporting volumes and values by lease
  • Correcting previously reported royalties

Where it fits in the document flow

This document 185 Royalty Regulatory Report
Usually followed by 997 Functional Acknowledgment

Structure

Mandatory segments in the 185 (X12 release 008010)

The segments X12 release 008010 marks as mandatory at their level, in order. Segments inside optional loops are needed only when the loop is used. This is the standard's requirement, not your trading partner's: each partner's implementation guide names the release it uses, adds the optional segments it requires and restricts the values. The requirement status comes from one published X12 reference listing and has not been checked against a second source.

  • ST
  • BGN
  • N1
  • LM
  • LQ
  • LX
  • PID
  • ASM
  • SE

Practical example

The 185 in practice

An oil producer operates wells on federal leases. Each month it reports to the royalty agency the volumes produced and sold from each lease, the sales value, allowable deductions and the royalty due, and pays the amount. The agency reconciles the report with the payment.

Implementation

Implementation considerations for the 185

  • Confirm the reporting format each agency requires.
  • Report by lease and product as required.
  • Reconcile royalty reports with the payments made.
  • Keep supporting records for royalty audits.

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