FAQ

Why do my checks vary each month?
Production from your well can vary greatly on a month-to-month basis, causing your checks to change in value. If your particular well is producing with a small decline, your checks should have become larger over the last year. In this situation your interest would be much more valuable today than it would have been twelve months ago.

What is the cost to transfer my interest to my children or heirs?
It can vary greatly according to how much estate planning has been done. If you have all the paperwork and your assignment, it can be relatively inexpensive to transfer an interest. If you do not have a lot of the paperwork and need legal assistance it can be quite expensive, especially if you need to split the interest among multiple heirs. Often the cost to divide the interest three ways would exceed the value of the original interest.

What happens if I get Royalty Clearinghouse to evaluate my interest?
That is totally up to you, the customer. We will evaluate your interest and provide you an offer for your interest. The decision to keep or divest your interest is up to you. To get a no obligation evaluation click HERE.

How is the value of my interest determined?
Prior to mailing offers, Royalty Clearinghouse performs a complete evaluation on every well. This allows us to determine the value of each royalty owner's interest. A petroleum engineer performs all evaluations by analyzing historical production data and determining decline rates. That information is then used to perform a decline curve analysis to predict future well performance and calculate remaining oil and gas reserves. We then use NYMEX futures pricing to help determine the value of those reserves. With energy prices historical highs, this may be an opportune time to convert a royalty interest into one cash payment.

What does the future hold for oil and gas pricing?
It is impossible for anyone to fully predict what prices will do. There are thousands of experts who offer predictions on inventories and future prices, but very few agree.

Why do I not receive a royalty check anymore?
There are several factors that may have contributed to the discontinuation of payments.
a) The amount due may not be enough to be distributed. Many companies wait until the amounts reach $50 or even $100 before generating a check.
b) The company responsible for distribution of payment may have changed and the transition may not be complete.
c) The well associated with your interest may no longer be producing oil or gas. All oil and gas wells are depleting and will eventually decline to the point where they are no longer economic to produce.
d) Your interest may be in “Suspense” due to a change of address or a change of ownership not completed correctly.
To determine the exact reason, try contacting the number found on the last check you received.

How do I receive an offer for my royalty or working interest?
1. Contact a professional at Royalty Clearinghouse by calling 1-800-877-5122 and begin a relationship with one of our account managers today.
2. They will answer any questions you have and learn more about your unique situation.
3. Send 2-3 recent check stubs from your property for verification of income. If this property is a working interest, please also submit the 12 most resent JIBs.
4. Our engineers will then verify the initial offer amount, or generate a new offer if you have not yet received one, based on current information.
5. Your personal account manager will contact you and ask for a verbal commitment to sell your property for an agreed upon amount.
6. Our staff will put together the paperwork necessary to complete the transaction and send it to you along with payment.

Am I obligated to sell if I receive an offer?
You are not under any obligation to sell your interest at any time.

I do not see my question covered here; what do I do?
We are sorry that we were not able to answer your question in this forum, but we would be happy to address any question you might have via email or phone. Feel free to contact us any time.