General Questions

General Questions

1. My checks used to come from Alta Mesa, but now they come from Martindale. Why?

Martindale is now distributing revenues from properties for which Mach Resources is responsible for distributing. If you are receiving payments from Martindale for properties that were once remitted by Alta Mesa or Hinkle Oil & Gas, one or more properties in which you hold mineral interests are the responsibility of Mach Resources to distribute. You may still have mineral interests being distributed by Alta Mesa and/or its successor.

Martindale is now distributing revenue from properties where various operators are responsible for distributing. If you are receiving payments from Martindale for properties that were once remitted by DCP, one or more properties in which you hold mineral interests are the responsibility of an oil and gas producer who has outsourced its revenue distributions to our firm. You may still have mineral interests being distributed by DCP and/or its successor.

Royalties represent the interests retained by lessors under an oil, natural gas, and mineral lease. Generally, funds are payable on these interests based upon the value of a percentage of the minerals produced from the lease.

Net acres/unit acres x lease royalty rate. Example: 10/640 x 0.125 = 0.001953125. But, you must consult your specific lease and/or legal advice for your specific calculation.

A Division Order is a document signed on behalf of the interest owner verifying to the purchaser, operator, or remitter of a well or wells the decimal interest of production owned by that party. It also provides the owner’s remittance address and taxpayer identification number, possibly along with other information.

Sign and return the document after consulting with your legal advisor to be sure the following, and other, information is correct.

  1. The accurate decimal interest for your ownership
  2. The correct spelling of your name
  3. Your current mailing address
  4. Where you want your revenue sent, if different than your mailing address
  5. Your taxpayer identification number

Generally, royalty owners share in production revenues and working-interest owners share in both production revenues and development and operating expenses.

Your Tax ID is either the Social Security Number (SSN), Employer Identification Number (EIN), or Taxpayer Identification Number (TIN) for the individual/entity receiving royalty payments and must be on file for identification and IRS reporting requirements. If your Tax ID is not on file, Martindale is required by the IRS to withhold 24% of all payments and revenues and remit them to the IRS on behalf of the owner until a Tax ID is provided.