FAQ:
Address Change: Submit a change of address in writing with the signature of the owner (s) as the name is our records. If the title is held jointly, both owners must sign.
Change of Ownership-Divorce: A copy of the complete divorce decree with appropriate recorded cross conveyances shall be submitted for review
Change of Ownership-Inheritance with a Will: We typically require the executor/executrix to assign or convey the interests to the proper heirs with a properly recorded instrument where the property is located. The conveyance is required provide assurance the property is free and clear of other requirements that are often times part of the will. In addition, oil and gas title instruments are sometimes organized in their own section in various courthouses. A recorded copies of the Will, Death Certificate, Letters Testamentary, and Order Admitting Will to Probate will all need to be provided for review.
Change of Ownership-Inheritance without a Will: If the interest owner left no Will, we need a copy of the Death Certificate, Letters of Administration, and three independent Affidavits of Heirship. These affidavits executed by non-family members without any beneficial interest in the estate. The instruments should state that the individual executing the affidavit has knowledge of the deceased person’s family, their current and prior marital status, how long they have known the deceased and who their known descendants are along with their addresses. This document should be signed and properly notarized. The affidavits must be filed for record in the county where the property/well is located. State laws may dictate the division of the estate where there is not a will and probate.
Change of Ownership-Sale: A copy of the recorded instrument where the property is located
Change of Ownership-Transfer to a Trust: Copy of Trust Agreement or Memorandum of Trust along with recorded conveyance in appropriate county/parish.
Corporate Merger Certificate of Merger filed with Secretary of State. Also, please provide new Tax I.D. Number
Division Order-What is a Division Order: A Division Order is an authorization for payment by the owner directing the operator to pay the owner in accordance with the decimal interest set out in the Division Order at the address as noted. The owner should always verify the accuracy of the information contained in the Division Order prior to signing and returning the instrument. The Division Order also set out various terms and conditions of the payments but cannot change or ratify other instruments as a condition of payments. There is generally warranty language in division orders that allow the operator to recover funds if the interest in error.
A W-9 is typically required along with a Division Order. Payments are generally suspended until both instruments are signed.
Deductions-Why are there deductions if my interest is a royalty interest that should not bear any costs? There are a number of reasons there could be deduction from royalty interests. Many royalty interests are free and clear of costs up to the boundaries of lease or the “mouth of the well” but are still subject to costs that are downstream of these points. In certain situations, operators use products to produce the well that did not come from the formation but are sold with the oil. The value of these products are netted from the total sales from the lease before royalties are paid.
Name Change-Individual: Provide a copy of the marriage certificate, divorce decree reinstating maiden name or other document affecting name change.
Name Change-Corporate, LLC, Partnerships: A Certificate of name change as filed with the appropriate Secretary of State needs to be provided.
Guardianship: Provide a copy of the court approved orders.
Production Verification-Why do the volumes on my check not match the production reported to the state regulatory agencies? There are a variety of reasons that volumes will not match. In some instances, gas volumes on purchaser statements are based on one pressure basis and have to be adjusted to the pressure basis requirements of the state. In some states, the state arbitrarily converts condensate to an equivalent amount of gas as part of the gross production that will not match sales of the gas. Perhaps the most common are of confusion is that many gas contracts take raw gas from the field and separate the gas from the natural gas liquids. The remaining gas is known as residual gas and sometimes is reported on revenue checks.
Power of Attorney: Provide a copy of the properly notarized power of attorney. Some actions may require an original to filed in appropriate counties.
Revenue-Oil- Why do I not get paid for oil production every month? Low producing wells have to accumulate sufficient production before a purchaser will send out a truck to pick up the oil. Depending on how low the production is from the well, there may be many months between sales. In some cases, several wells may accumulate a load of production and the purchased barrels are allocated.
Revenue-What if I do not receive my check or if it is lost or stolen or becomes outdated?
Please provide a written request for a check to be reissued. In some cases, a stop payment charge on the original check may be deducted.
Revenue-Why does my payment differ from others in my family? There are several reasons family members may receive different payments. Ownership type and percentage between family members may not be equal. Family members may have an interest in different properties. One party may be in a suspense pay status for a variety of reasons.