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FAQ 2017-05-19T19:02:48+00:00

FAQ

WHY IS BACKUP WITHHOLDING DEDUCTED FROM MY REVENUE CHECK? 2017-04-13T15:03:58+00:00

You must provide us with a valid tax identification number or Social Security number for reporting and identification purposes. Otherwise, the Internal Revenue Service requires that we withhold 28 percent of all revenues until this information is provided. On your behalf, Edge Resources also deducts and pays the State of Texas for your potion of severance taxes due.

WHY ARE ADJUSTMENTS SOMETIMES MADE TO MY PAYMENT? 2017-04-13T15:03:33+00:00

Edge Resources strives to disburse revenues in accordance with each owner’s oil and gas lease and all statutes and regulations of the state in which the interest is located. In the event of an error or discrepancy in your payment, we will make the appropriate correction and an adjustment to your payment may result. For instance, we may receive adjusted production figures or adjusted pricing from a transporter. An adjustment to your royalty payment might then be required to ensure that accurate payment is made. Each state has a statute of limitations that governs how far back in the past a company can make such payment adjustments. Please remember that adjustments may sometimes be in the royalty owner’s favor.

WHY DOES MY ROYALTY PAYMENT VARY FROM MONTH TO MONTH? 2017-04-13T15:03:03+00:00

Many factors contribute to your payment. Changing market conditions may cause fluctuations in commodity prices on a monthly basis, while mechanical or operational problems or routine maintenance may temporarily affect production and cause downtime. Also, over time, production volumes from an individual well will experience a natural decline. So, while this may be offset with additional wells being drilled on your property, the decline in production volumes from individual wells is inevitable. Also, regulatory or contractual changes or seasonal conditions can affect the amount of your payment. If you have reason to believe an error in payment has occurred, please contact us.

WHEN ARE ROYALTY PAYMENTS SUSPENDED? 2017-04-13T15:02:28+00:00

For your protection, payments may be suspended in the event of a title dispute, assignment of interest, notice of death, transfer or sale of property, or unknown address. You can prevent such an inconvenience by promptly notifying us of any change regarding your interest. Royalty payments also will be withheld if the total amount owed is less than $100.00 (See What Are Royalties).

HOW DO I TRANSFER MY INTEREST TO SOMEONE ELSE? 2017-04-13T15:01:55+00:00

The purchaser, assignee, or beneficiary must file a deed, assignment, or other instrument conveying your title in the interest in the real property records of the county or parish in which the interest is located. The purchaser must then provide us with a certified copy of the instrument, along with a Social Security number or tax identification number, address, and daytime phone number. In the event this transaction is not yet completed and the instrument has not been signed and recorded, you must advise us in writing if you want payments suspended until the transaction is completed and we have been provided with a certified copy of the instrument.

WHAT DOCUMENTS ARE REQUIRED IF I BUY OR SELL INTEREST IN A PROPERTY? 2017-04-13T15:01:20+00:00

You should provide Edge Resources with a certified copy of the deed, assignment, or other instrument of conveyance properly recorded in the county or parish in which the property is located.

WHAT HAPPENS IF AN INTEREST OWNER PASSES AWAY? 2017-04-13T15:00:51+00:00

If the deceased interest owner left a will and the will is being probated, you should provide us with certified copies of the death certificate, Order Issuing Letters Testamentary, Order Admitting Will to Probate, and final decree or judgment distributing the estate. If the estate is not probated or the owner dies without a will, you should provide us with a certified copy of the death certificate, a copy of the will (if available), and a completed Affidavit of Heirship (Edge can provide, if requested) recorded in the county or parish where the interest is located. The Affidavit of Heirship must be completed by a disinterested party (someone who is not an heir of the decedent) who is NOT a member of the decedent’s family and also must be signed and sworn in the presence of a notary public.

HOW DO I ADD MY SPOUSE TO MY ACCOUNT? 2017-04-13T14:59:43+00:00

You must file a deed, assignment, or other instrument conveying title in the interest to you and your spouse in the real property records of the county or parish in which the interest is located. You must then provide us with a certified copy of the instrument to add your spouse to your account. In the event this transaction is not completed and the instrument has not been signed and recorded, you must advise us in writing if you want your payments suspended until the transaction is completed and you have provided us with a certified copy of the instrument.

HOW DO I LET EDGE KNOW ABOUT MY NAME CHANGE (MARRIAGE/DIVORCE)? 2017-04-13T14:54:39+00:00

Please provide Edge Resources with a written request to change your name. Your request should include your old name as it appears in our records, your new name, and a court certified copy of the marriage certificate or divorce decree. In the event your divorce is not finalized, you should state whether you want your payments to continue under your old name or whether you want your payments suspended until the divorce proceedings are complete.

HOW DO I CHANGE MY ADDRESS? 2017-04-13T14:54:04+00:00

Please promptly notify Edge Resources of any change in your mailing address. This notice must be in writing and signed by you or your official representative. Please include your name, owner number, Social Security number, old address, and new address, including the zip code. For your protection, address changes are not accepted by telephone.

HOW DO I CONTACT EDGE RESOURCES? 2017-04-13T14:53:33+00:00

You may e-mail our administrator Mitch Rios (mitch@edgeresourcesllc.com), write, or call Edge Resources (817-870-0130).

WHAT SHOULD I DO IF I DO NOT RECEIVE MY ROYALTY CHECK? 2017-04-13T14:52:55+00:00

Due to potential postal delays, a check may arrive a few days late. If your check is more than two weeks late, please contact Edge Resources. A frequent reason for not receiving a royalty check is that your account has not reached its minimum pay or minimum suspense status. Edge remits revenue to you once your account balance exceeds $100, or at year-end, whichever comes first. Another common cause is because Edge Resources did not receive your signed division order. Once we received your signed division order, and assuming all requested information was completed accurately, the balance of your account ($100 or greater) will be sent to you on the ensuing monthly check run. Occasionally, payments are held due to title matters that create uncertainty as to ownership, such as notice of death, change of address, transfer of property, assignment of interest, or legal dispute. Payments due are accumulated and released when the matter affecting ownership has been resolved. Inquiries regarding suspense balances should be made in writing to Edge Resources.

WHEN ARE CHECKS ISSUED? 2017-04-13T14:52:05+00:00

Edge Resources check runs occur the end of each month. Please allow time for postal delivery.

WHAT IS AN OWNER NUMBER (OWNER#) AND WHAT IS ITS PURPOSE? 2017-04-13T14:51:22+00:00

Edge Resources assigns each of its interest owners a unique owner code (6-digit alpha code represented on the check detail and labeled as Owner#, not Owner Code) for internal accounting identification purposes. Please include your owner number when communicating or corresponding with Edge Resources.

HOW IS MY INTEREST CALCULATED? 2017-04-13T14:50:22+00:00

Your decimal is calculated by your net acreage in the unit divided by the total size in acres of the unit multiplied by your net royalty interest percentage, or: Lessor Net Acreage / Unit Acreage (Lessor Net Royalty Interest Percentage) = Decimal Interest

WHAT IS AN INTEREST TYPE? 2017-04-13T13:50:36+00:00

Interest types may be represented on Edge Resources’ check detail. The 3 most common interest types are: 1. Royalty Interest: Lessor’s share of production as set forth in the oil and gas lease. 2. Working Interest: The exclusive right granted to the lessee (Edge Resources) to explore for and to produce and own the oil and gas located under the lands covered by the oil and gas lease. Working interest owners bear all costs of exploration, development, and operation. 3. Overriding Royalty Interest (ORRI): An interest in production that is created and payable out of the working interest. Usually, the term of an ORRI is for the life of the oil and gas lease.

WHAT IS A DIVISION ORDER? 2017-04-13T13:50:09+00:00

Once a producing well has been drilled and title has been cleared (i.e., verified by a title opinion), a division order authorizing the sale of production from the well is sent to all royalty and working interest owners for their signatures. The division order sets forth the decimal interest of production owned by each party, their addresses, and a legal description of the property on which the well is located. A tax identification number or Social Security number is also requested on the form in order to avoid backup withholding deductions of 28 percent as provided for under IRS regulations. The owner may make an address correction on the division order. The owner’s signature on the form will allow us to make the address change in our records prior to making a royalty payment.

WHAT IS CLEARING TITLE? 2017-04-13T13:49:40+00:00

Before obtaining an oil and gas lease, drilling a well, or making payments under a division order, the operator must determine who owns title to the surface, minerals, and royalty and working interests in the land. This is done to ensure the operator has the legal right to drill and so the operator knows which parties have a legal right to production or royalties. Title is typically determined by a title opinion, which is an attorney’s written legal opinion, based upon an examination of the real property records in the county where the land is located. The opinion often recommends that curative instruments be obtained before the property interest is purchased, drilled on, or other operations occur. This process may take several months and may affect the timing of your first revenue payment. Obviously, the larger the unit (in acreage and number of lessors), the longer it takes to clear title.

WHAT ARE ROYALTIES? 2017-04-13T13:48:18+00:00

Royalties are the mineral owner’s share of production as reserved in an oil and gas lease. The royalty amount is usually expressed as a fraction of the total amount of hydrocarbons produced from the leased premises (or the proceeds attributable to such production). Checks are mailed during normal check runs at the end of each month. However, several things may affect the issuance of an owner’s first royalty check. The first distribution of revenue may be delayed if clear title to the property has not been resolved or received. Also, checks are issued when the owner’s total royalty balance is $100 or greater. If an owner’s total royalty is less than $100, a check will be issued once a year or when the balance reaches $100, whichever occurs first. Occasionally, wells may be capable of producing gas but lack adequate pipeline connections. Therefore, production will begin pending connection to a pipeline. Once production begins, the 60-day revenue distribution applies.