Blackbeard Operating

Owner Frequently Asked Questions

What are royalties?

Royalties are the mineral owner’s proportionate share of production as reserved in an oil and gas lease.

 

I have a question about my royalty check. Whom do I contact?

Blackbeard Operating, LLC
ATTN: ROYALTY RELATIONS
1751 River Run, Suite 405
Fort Worth, TX 76107
Phone: 432-242-0050

 

What is a Division Order?

A Division Order is a document Blackbeard Operating issues that describes the property, the operator, the legal description, the owner's remittance address and tax ID information, if known, as well as the owner's decimal interest in the property. The owner is asked to sign and return the Division Order. Blackbeard uses this information to remit proceeds to the owner if Blackbeard has the disbursement responsibility.

 

What is the purpose of my Owner Number?

Your owner number is specific to you and is tied to every Blackbeard well connected to you. Always use your owner number when corresponding with Blackbeard.

 

How do I transfer my interest in a property?

Forward a recorded deed or instrument of conveyance to Blackbeard’s Land Department at:
Blackbeard Operating, LLC
ATTN: LAND DEPARTMENT
1751 River Run, Suite 405
Fort Worth, TX 76107

 

What happens if I change my address or marital status?

Please send changes in address to Blackbeard’s Land Department. Please send a copy of your marriage certificate to update your name as a result of marriage. Submit your address change in writing and with the appropriate documentation as listed on the Ownership Changes page. Please include your owner number, old address and new address including the zip code, and be sure to include your signature or the signature of your appointed agent. For your protection, address changes are not accepted by telephone. Please see our Owner Relations page for a Change of Address form.

 

What happens when the interest owner of a property dies?

Once notified, the deceased owner’s revenue will be held in suspense until the proper heirs can be determined. Upon notifying Blackbeard’s Land Department, Blackbeard will send you information describing what must be provided to transfer the interest to the proper heirs.

 

Can I set up Direct Deposit?

Yes, we have an electronic funds transfer (EFT) option for our revenue interest owners. EFT payments are only available for accounts drawn within the United States. If you elect to receive electronic payments, you will no longer receive your payment detail by mail. To set up direct deposit, return the enrollment form with a voided check to the address provided on the form. If you have enrollment questions, please email the Land Department at info@blackbeardoperating.com or call 432-242-0050.

 

When are royalties paid?

Once title is cleared, most royalty owners will be issued a monthly check unless the amount due is less than $100. Smaller amounts are accumulated and paid when $100 has accumulated. Blackbeard generates and mails revenue checks on the last business day of each month. If your account is in a pay status and if the account has reached your minimum pay status, a check should be issued. If you have not received your check by the 15th of the following month, please call us at 432-242-0050 or email our Land Department.

 

What is the difference between a royalty owner and a working interest owner?

A royalty owner shares in production revenues, while a working interest owner shares in both production revenues and development and operating expenses.

 

What type of annual statements will I receive?

Royalty interest owners receiving more than $10 and working interest owners receiving more than $600 annually receive IRS Form 1099. This summarizes your total payments and tax withholdings for the previous year.

 

What do I do if my check is lost, stolen or becomes outdated?

Contact our accounting department at 432-242-0050 to stop payment if your check is lost or stolen. Please have the following information ready when you call: your name, owner number and check date. We will stop payment on your check and issue a replacement within 10 days. If your check is outdated, void the check, and send it back to Royalty Relations with a written request for a new check.

 

Why does my monthly payment sometimes vary?

Many factors contribute to your payment, including: market conditions, fluctuating commodity prices, regulatory or contractual changes, production volumes, seasonal conditions and well downtime.

 

Why does my payment differ from others in my family?

This occurs because ownership between family members is not equal, because one party has not provided Blackbeard with a Taxpayer Identification Number (TIN), or because some family members may own interest in other properties in addition to those commonly owned.

 

Why are the decimals on my Division Order and check detail different?

This occurs due to special marketing arrangements or other contractual agreements. The value is still proportionally correct.

 

How do I clear the title to my mineral rights? How long does it take?

If petroleum can be produced in commercial quantities on your land, it is time to clear the title to mineral rights. First, our Land Department must receive official notice of the first well completion. Next, copies of the property’s records must be obtained by the abstractor. Then, an attorney must examine title to all mineral rights in the well and submit a Title Opinion reflecting current ownership. Lastly, any outstanding questions are resolved. This process can take several months to complete.

 

Taxpayer Identification Number

Federal law requires that individuals and partnerships provide a certified Taxpayer Identification Number (TIN) for the owner account. For individual owners, your TIN is your Social Security Number. Other entities should provide Employer Identification Numbers. If the appropriate TIN is not received, Blackbeard is required to withhold 28 percent from your payment for federal income taxes.

 

When are royalty payments suspended?

For your protection, payments are suspended upon a title dispute, the assignment of interest, notice of death, transfer of property, or in the event of no known address. Keeping your information current can prevent this inconvenience.

 

Suspended Payments

For your protection, interest payments are occasionally suspended due to questions regarding your account. Such suspension occurs:
• When your address is not current
• When a title dispute is underway
• During an assignment of interest
• During a change in address
• During a transfer of property