Types of Reporting
Types of Reporting For Oil And Gas Companies
To schedule a free consultation, please call (303) 463-8799 or fill out our contact form.
Reporting is one of the most complex aspects of division order services for oil and gas companies, not only because the requirements vary from state to state, but also because they are different depending on who is the owner of the division order interest.
At ExTex, we have the experience and expertise to file regulatory reports and other required reports, accurately and on time.
Below are examples of the types of reports that we regularly file for oil and gas purchasers and operators.
State Oil And Gas Severance Tax Returns
Most states collect severance taxes when natural resources (such as oil, gas, and minerals) are “severed” from the ground. We remit payments and file severance tax reports that include: volumes of production, values, deductions, tax rates, and allocations by the well or property.
Ad Valorem Tax Reports
Ad valorem tax, which is assessed annually by the county where the well is located, is based on the assessed value of the oil or gas property. Some counties and states send the Ad valorem bill to the last known owners of record for the lease, while others send it to the oil and gas operator. We prepare Ad valorem tax reports and remit taxes.
Tax Warrants
Tax warrants are legal documents that are issued by a county or state tax authority to collect on delinquent taxes for owners who have failed to pay Ad valorem taxes on their mineral rights. When we receive a tax warrant, we locate the owner and property and book the warrant and any penalty and interest assessed against the property. We pay the warrant as funds are collected or when all of the funds have been collected in full.
Tax Levies
The federal government or a state can issue a tax levy for unpaid taxes. We process tax levies, by remitting owner funds to the entity that issued the tax levy (until the debt has been paid in full or until we are notified by the entity that the lien has been paid in full).
Statutory Interest On Oil And Gas Payments
If an oil and gas company is late in paying out royalties (within the explicit timeframe determined by state law), some states require interest be added to the late payment. The extra amount goes directly to the royalty owner, as compensation for the delay. Depending on the state’s law, statutory interest that is applied to underpaid or late royalty payments is either simple interest or compound interest.
Unclaimed Property / Escheatment
If oil and gas royalty payments cannot be delivered to owners (because they cannot be located or ownership cannot be proved), we submit reports to the state where the owner’s last known address is located. Our unclaimed property reports include details about the owner, their last known-addresses, the amounts owed, and the dates of the last activities to try to locate and contact the owner.
After due-diligence efforts to locate the rightful owner have failed (and the legal dormancy period has expired), we turn over the royalty payments to the state, in a legal process known as escheatment. Because each state has its own unique and specific laws that govern how “unclaimed” or “abandoned” property is handled, unclaimed property and escheatment are among the most complex aspects of division order services.
Other Reports
In addition to the reports, listed above, we also file:
- Production reports
- State Lands reports
- Transportation reports
- EIA reports
- University Lands reports
- ERMA reports
- Force Pool reports
- Wyoming UCP reports
- NDIC reports
- 2014 (ONRR/BIA) reports
About ExTex
Thanks to almost 30 years experience, we can handle all of your regulatory reporting and reports, as well as other division order services, including:
We offer outsourced back office admin support for all sizes of oil and gas purchasers and operators, from start-ups to multi-national corporations, and we’re SOC compliant.
For more information about our full range of services, 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.
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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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