# Royalty Calculation Model AI Agent Connect

> Calculates oil and gas royalty payments using jurisdictional rules.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_7yxORMsR7jl2GxuHgqu6ADtKoUbEzcphBTfas7Tm/ai-agent-connect
- **Tags:** royalty, oil, gas, production, calculation

## Description

This MCP server provides precise tools for calculating oil and gas royalties. It handles both Royalty-in-Value (RIV) and Royalty-in-Kind (RIK) models. Users can use `calculate_royalty_value` to determine cash payments based on production volume, market price, and specific jurisdictional deduction rules. The `calculate_royalty_kind` tool calculates physical product volumes, while `get_jurisdiction_rules` provides regulatory parameters for different regions. All inputs can be verified using `validate_production_data` to ensure mathematical consistency before processing.

## Tools

### calculate_royalty_value
Calculates the cash amount (Royalty-in-Value) owed to a royalty owner

### get_jurisdiction_rules
Retrieves the specific calculation parameters and deduction rules for a given region

### validate_production_data
Ensures that a set of production and pricing inputs are mathematically and logically consistent

### calculate_royalty_kind
Calculates the physical volume of product owed to a royalty owner under a Royalty-in-Kind agreement

## Prompt Examples

**Prompt:** 
```
Calculate the cash royalty for 10,000 barrels at $75 per barrel with a 12.5% royalty rate in the Standard US jurisdiction, including $500 in deductions.
```

**Response:** 
```
The royalty value is $89,062.50.
```

**Prompt:** 
```
What is the physical volume for a 5% royalty on 50,000 cubic feet of gas?
```

**Response:** 
```
The royalty volume is 2,500 cubic feet.
```

**Prompt:** 
```
Get the rules for the European/Offshore jurisdiction.
```

**Response:** 
```
The European/Offshore jurisdiction allows deductions and follows value-based royalty rules.
```

## Frequently Asked Questions

**What is the difference between RIV and RIK?**
Royalty-in-Value (RIV) is a cash payment based on the value of the resource, whereas Royalty-in-Kind (RIK) is the delivery of a physical portion of the produced resource.

**How are deductions handled?**
Deductions are applied based on the specific jurisdiction rules retrieved via `get_jurisdiction_rules`. The logic determines if allowances are subtracted from gross value or volume.

**Can I validate my data before calculating?**
Yes, you can use the `validate_production_data` tool to check if your production volume, market price, and royalty rate are logically consistent.