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Fracking Texas    Fracking Alberta     IFS Protocol Pricing     Pilot Well Package

IFS – INTEGRATED FLOW SYSTEMS


PILOT STRUCTURE



IFS – TERMS AND CONDITIONS

IFS Methodology Usage

Any application of the IFS methodology beyond the approved pilot well—whether directly instructed, internally replicated, adapted, modified, partially implemented, reverse-engineered, or operationally reproduced—constitutes active IFS system use.

Any rig utilizing the IFS methodology shall be considered a Participating Rig and is subject to the agreed $5,000 USD IFS Rig License Fee.

This applies to:

  • wells on the same pad

  • wells on separate pads

  • wells within the same field

  • wells in additional fields

  • affiliated or contracted operations

  • subsidiaries or operational entities under common control

where IFS methodology, operational sequencing, flow-control logic, pressure-management concepts, tuning structures, or materially similar execution behavior is utilized.


Definition of Adoption

Adoption is defined as:

  • execution of the IFS Deployment Manual on any well beyond the pilot well, or

  • application of IFS-derived operational logic, flow-state management, sequencing behavior, tuning structures, or materially similar operational methodology beyond the pilot evaluation scope.

Replication, adaptation, modification, internal recreation, or partial implementation resulting in materially similar operational behavior or outcomes constitutes IFS system usage and falls under the IFS licensing structure.

Operator shall not circumvent this agreement through:

  • renaming methodology

  • internal restructuring

  • derivative workflows

  • modified execution patterns

  • compartmentalized implementation

  • indirect deployment through affiliates or contractors

where materially similar operational behavior is produced from IFS-derived logic or methodology.


Pilot Well Structure

The IFS Pilot Program is intended as a controlled operational validation under real-world field conditions.

Pilot requirements include:

  • one designated pilot well

  • defined operational evaluation window

  • full adherence to IFS protocol

  • no hybrid execution

  • no partial implementation during pilot evaluation

IFS operates as a detached advisory system utilizing operator-submitted operational snapshots only.

IFS:

  • does not connect directly to rig infrastructure

  • does not integrate into live control systems

  • does not automate operational execution

  • does not require telemetry integration

All operational recommendations remain advisory in nature. Final operational decisions remain solely under the authority and responsibility of the Operator.


Current Evaluation Architecture

The current IFS evaluation engine operates through a controlled master logic framework.

To maintain deterministic operational consistency:

  • the master prompt architecture is refreshed every four (4) hours

  • this refresh cycle prevents contextual drift

  • preserves logic integrity

  • maintains stable operational interpretation

  • prevents unintended output variation during ongoing evaluations

This temporary architecture will be replaced within the dedicated IFS application platform currently under development.

The application version will permanently embed:

  • operational rule structures

  • workflow sequencing

  • flow-state evaluation systems

  • tuning logic

  • reporting architecture

  • deterministic execution pathways

eliminating dependency on recurring prompt refresh cycles.

Target deployment for the IFS application platform is projected for end of June 2026.


Baseline Data Requirements

Prior to application of IFS methodology on any additional well beyond the pilot well, Operator shall provide baseline production and operational data for the upcoming well.

Baseline data shall include:

  • minimum three (3) months production history where available

  • or another mutually agreed equivalent baseline period

IFS reserves the right to reject insufficient baseline submissions where comparison integrity cannot reasonably be established.


Performance Threshold and Activation

If the pilot well demonstrates measurable operational uplift of five percent (5%) or greater relative to agreed baseline metrics, the following commercial terms immediately activate prior to additional IFS deployment:

Activation Requirements

  • $5,000 USD Rig License Fee per participating rig

  • $1,000 USD monthly platform and methodology support fee

No additional wells may utilize IFS methodology beyond the pilot scope until activation fees are satisfied.


Rig Licensing Structure

Each licensed rig receives:

  • one operational deployment manual

  • one active IFS rig license

  • associated support and methodology rights tied to that participating rig

Additional wells operated under that licensed rig do not require separate per-well licensing fees, provided:

  • baseline submission requirements are maintained

  • reporting requirements are maintained

  • operational usage remains within the licensed rig structure


Well Tuning Manuals

Optional well-specific tuning manuals are available at:

  • $1,000 USD per additional well submission

These manuals may include:

  • localized tuning adjustments

  • formation-specific refinements

  • rig behavior optimization

  • operational sequencing refinements

  • pressure and flow observations

  • execution stabilization recommendations


Version 2 Self-Tuning Module

Version 2 of the IFS platform will include an optional self-tuning module allowing operators to independently configure and manage new and existing well setups within their own secured operational environment.

Planned package structure:

  • fixed-rate 10-well configuration packages

  • $1,000 USD monthly package rate

This structure is intended to:

  • improve scalability

  • reduce configuration turnaround time

  • allow internal operator flexibility

  • maintain deterministic IFS operational structure

IFS reserves the right to revise pricing and package structures upon commercial platform expansion.


Reporting and Audit Rights

Operator agrees to maintain accurate operational records for all wells where IFS methodology is applied.

Operator shall provide:

  • monthly reporting of active participating wells

  • quarterly production and operations reports for all operated wells

Reports shall include, at minimum:

  • well identifiers

  • production volumes

  • completion parameters

  • operational sequencing information

  • relevant operational metrics reasonably necessary to identify IFS application

IFS reserves the right, upon reasonable notice, to review and audit:

  • operational records

  • production reports

  • decision logs

  • execution structures

  • tuning methodologies

  • related operational documentation

for the purpose of:

  • identifying participating rigs

  • validating fee applicability

  • detecting undeclared IFS deployment

  • confirming methodology usage

Failure to provide complete or timely reporting constitutes material breach of this agreement and triggers immediate audit rights.


Confidentiality and Data Handling

IFS acknowledges that all operational, geological, production, and related data supplied by the Operator may contain confidential and commercially sensitive information.

All supplied data shall:

  • remain confidential

  • remain under Operator ownership

  • be used solely for:

    • operational evaluation

    • deployment preparation

    • support services

    • validation

    • auditing

    • enforcement of this agreement

IFS shall not disclose, distribute, sell, or provide Operator data to any third party without prior written consent, except where required by applicable law.

IFS utilizes detached snapshot-based operational review architecture rather than persistent infrastructure integration. Operator systems, infrastructure, and operational environments remain under full Operator control at all times.

Only data reasonably necessary for operational support, validation, deployment, auditing, or participating rig identification shall be requested or retained.


Payment Terms

All fees are due within thirty (30) days of invoice issuance or identification of participating rig status.

Late payments accrue interest at:

  • five percent (5%) per month

Operator shall remain responsible for all unpaid fees associated with undeclared or previously unreported participating rigs or wells utilizing IFS-derived methodology.


Survival Clause

All obligations related to:

  • confidentiality

  • payment

  • reporting

  • audit rights

  • undeclared deployment

  • methodology protection

  • participating well identification

shall survive termination of this agreement.


Governing Law

This agreement shall be governed by and interpreted in accordance with the laws of the Province of British Columbia and the applicable federal laws of Canada.




This agreement is governed by the laws of the Province of British Columbia and applicable federal laws of Canada.

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For collaboration, critique, or formal debate:
leadauditor@mc-sa-if.com




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