BACK OFFICE ADMINISTRATION FOR OIL & GAS PURCHASERS

Common Royalty Owner Questions

 

Royalty Owners Have Questions, And We Have Answers

To schedule a free consultation, please call (303) 463-8799 or fill out our contact form.

Over the years of doing division order management, we have answered tens of thousands of questions from royalty owners.

Too many questions to count, in fact, but here are some of the most common questions that royalty owners ask about their payments, taxes, and paperwork.

Payments

  • Why is my royalty check lower this month than last month?
  • Why is my royalty check different than another owner’s check?
  • Why didn’t I receive a check this month?
  • Is there a minimum check amount or payment threshold?
  • Why can’t I give my payment information (e.g. my bank ACH info) to you over the phone?

Timing Of Payments

  • When do you pay each month?
  • Why am I just now getting paid for older production?
  • Why am I in suspense?
  • What do I need to do to get my funds released?
  • How long does it take to come out of suspense?
  • Why are payments delayed?     

Oil Pricing And Deductions

  • Why is the price per barrel of oil less than what I see on the news?
  • What are gathering/transporting/processing deductions?
  • What does “post-production costs” mean?
  • Can you explain how to read a royalty statement?     

Oil Volume and Production

  • Why are the volumes of oil different than last month?
  • How much did the well(s) actually produce?
  • Why did production drop so much?
  • Are there multiple wells on my property?    

Ownership/Decimal Interest

  • What is a decimal interest, and is it the same thing as percentage of ownership?
  • How did you calculate my decimal interest?
  • Why is my decimal interest different than I expected?

Taxes

  • Why do you need me to submit a W-9?
  • How do I fill out a W-9?
  • Why are taxes withheld from my check?
  • What is backup withholding?
  • How do I report this income?
  • What is a 1099?
  • When will I receive my 1099?   

Titles/Ownership

  • What documents do you need to transfer ownership?
  • What do I do after a divorce?
  • What happens to my royalty interest after I die?
  • What happens when another owner dies?
  • What happens if an owner dies without a will?
  • Do I need probate to be completed to get paid?

Customer Communications, Support, And Much More
Answering all of these questions and others is just part of the comprehensive owner communications and support that we provide for our clients.

We offer a full range of division order services, including: well services, title services, revenue accounting services, and tax accounting services. We are SOC compliant, and we can customize our back office support to your exact needs!

For more information about the owner relations and communications support that we provide, or to schedule a free consultation, call (303) 463-8799 or fill out our contact form.

ExTex Division Order Services, LLC is located in the Denver metro area (in Golden, Colorado), and we provide back office outsourcing services for oil and gas companies across the U.S. and Canada. In addition to division order services, we also offer a full range of back office administrative services for oil and gas companies, including: title services, well services, revenue accounting services, and tax accounting services.

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“The ExTex executives and staff go above and beyond expectations to ensure the highest level of service.”

Mark B, VP of Finance, Texas

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