Owner Relations - CrownQuest Operating, LLC

Owner Relations Dept

Phone: (432) 279-0061
Email: owners@crownquest.com

Working Interest Owners

CrownQuest provides electronic images of our joint interest billing invoices and statements to our joint interest owners by utilizing advanced Electronic Data Interchange (“EDI”). CrownQuest utilizes EnergyLink, by Red Dog Systems, as our vehicle to provide this information. Our use of EDI leverages technology to assist in our delivery of accurate and consistent information on a timely basis to provide our owners with the tools to more efficiently receive and process their non-operated JIB data.

To obtain more information on how to enroll in this service, which allows our joint interest owners to view and/or print their JIB’s at no cost, please visit EnergyLink’s website at www.energylink.com or call them at 1-888-573-3364.

FAQs

How do I receive royalty payments by Direct Deposit?

How do I notify you of a change of address?

How do I add my spouse or other individual to my account?

How do I transfer my interest into a Trust?

What if the Trustee changes?

Can I receive a valuation on property that I am named Executor?

My mortgage company is requiring a letter from CrownQuest stating that my royalty payments will continue. Can you provide this?

When are 1099's mailed out?

When are checks mailed out?

How do I get a copy of my Revenue Detail and payment history?

Why have I not received my check?

What if my check is lost, stolen or stale dated?

Does CrownQuest offer IRS tax withholding?

What if I do not receive a check after one month?

What is a Division Order?

Why does my monthly payment sometimes vary?

What happens when the interest owner of a property passes away?

Will I have to pay taxes on the revenue I receive?

Yes. Royalty interest owners receiving more than $10.00, and working interest owners receiving $600.00 or more annually will receive an IRS Form 1099-Misc by January 31st of the following year. The income reported to the IRS is your gross income prior to any other deductions or taxes. The 1099 will also list any state or U.S. withholding amounts deducted from your revenue checks.

You may also receive an annual property tax bill (Ad Valorem Tax) from the county (or parish) in which your well(s) are located.

What is an Ad Valorem Tax?

Ad Valorem taxes on minerals are levied at the county level. Ad Valorem is Latin for “according to value.” In Texas (and in some other states), this tax becomes payable only when minerals are producing (as opposed to non-producing), and are billed and collected once per year. Mineral interests are classified as real property, and are taxed based on the appraised Fair Market Value. In its simplest form, fair market value is the price a willing buyer from the open market will pay for a mineral interest within the currently prevailing market conditions.

There is a "Sev/Prod Tax", deducted from my revenue check. What is this tax?

A severance/production tax is a state tax levied against both royalty and working interest owners upon their pro rata share of oil and gas production. State governments set owner severance tax rates and levy the tax when natural resources such as oil and gas are “severed” from the earth. In addition, county governments render and collect a yearly “Ad Valorem Tax” on producing minerals in many states. Owners are usually assessed and billed annually directly from the county where the well(s) are located.

Can the revenue paid to me be adjusted after the check has been issued?

Yes. Royalty accounts are subject to adjustment, either upward or downward, whenever computational errors are discovered. Adjustments on your check detail can be identified by a positive and negative entry listed under the “Your Net” column on your revenue check. The negative entry will indicate what was previously paid to you on a prior royalty check. The positive entry right above it will indicate the amount that should have been paid to you. The difference is the adjustment to you for that specific production month. There are many factors that may result in a prior period adjustment, such as:

Revised production statements from the property operator
Revised plant statements from a plant operator
Corrected data received after an unexpected operational change (often due to a mechanical failure that interrupts normal operations or a major weather event)
Revised pricing information from third parties
Revised allocation statements or pricing information due to audit findings
Accounting errors
Retroactive tax incentives provided by government authorities

Owner Relations Dept

Working Interest Owners

FAQs

Forms