What Are Division Orders?
As a written contract, a Division Order describes and directs the distribution of proceeds from the monetary exchange of oil and gas. It will describe the property involved, outline ownership interest of each owner, specify how proceeds from the sale of oil and gas production on the property will be distributed, define specific responsibilities between the parties, and does not change an oil and gas lease.
Can I Transfer My Interest In A Property?
Interest is transferred by either a deed or an assignment. Consult an attorney to prepare these documents, record them with the appropriate county, and then provide a copy of the recorded deed or assignment to Welco Operating. Upon receipt of the recorded documents, we will change our records and reissue Division Orders.
How Do I Update My Address or Marital Status?
Please notify us promptly of a change in your mailing address by submitting the change in writing with your signature or the signature of your agent. Include your identifying owner number, social security number, the old address and new address, and the effective date of the change.
For changes in your marital status, please send a copy of your marriage or divorce decree certificate so that we may update your legal name, if necessary.
Documents can be mailed to 1120 Lincoln St., Suite 1605, Denver, Colorado 80203.
What Is the Process After the Interest Owner Passes Away?
Send legal probate documents and/or affidavit of death and heirship to Welco Operating. The deceased owner’s royalty checks will be suspended until we receive these documents. After the documents are in our possession, we will provide instructions for transferring the interest of the deceased owner to the appropriate party and will provide additional forms as needed.
Under What Circumstances Will My Royalty Payments Stop?
Your payments may be suspended during a title dispute, assignment of interest, and notice of death. The transfer of property or an unknown address may also temporarily stop payments. Suspension of payment is for your protection. Please keep your information current to prevent this delay.
When Will Payments Begin?
All owners receive payments every month. You may experience a deferral from the sale on your well before receiving a check, depending on the state in which the well is located. Balances under $100 are issued annually in December.
If you do not receive one of your scheduled checks, please notify us immediately.
Why Are My Payment Amounts Different?
Changes in the amount of your payments reflect economic factors effecting market conditions such as price and volumes sold, a normal decrease in reserve resources, and brief mechanical or operating issues.
How Do I Locate Unclaimed Funds?
Contact the National Association of Unclaimed Property Administrators (NAUPA) by visiting www.unclaimed.org. States make honest efforts to hold funds until the rightful owner is located.
Will I Receive My 1099 Form?
We issue 1099 forms by January 31st to royalty interest owners who receive more than $10 annually.