Royalty Owners

Royalty Owners Links

  • Questions on Oil and Gas Leases
  • Questions on Division Orders
  • Questions on Ownership Changes/Updates
  • Surface Owner Inquiries/Concerns
  • I am interested in Selling my Minerals or Royalty Interest
  • Questions regarding Hunting, Grazing, Surface Access on Caerus’ Deeded Surface
  • Questions regarding Check Stub Detail
  • Questions regarding Tax Information
  • Questions regarding Joint Interest Billing (JIB)
  • Forms

Questions on Oil and Gas Leases

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What is an Oil and Gas Lease?
An oil and gas lease is a legal contract between a mineral owner and Caerus which grants Caerus the rights to drill and produce the mineral owner’s oil and natural gas. In exchange for granting Caerus the right to explore for oil and natural gas, the mineral owner may be provided an upfront payment (bonus payment) and a royalty percentage of future production. As oil and gas leases change hands from time to time, the original lessee to your oil and gas lease may be an individual or entity other than Caerus; in that event, Caerus acquired the lease from the original lessee or its successor.
What is a lease rental payment?
A lease rental payment is an annual, quarterly or monthly rental payment that is paid to the Lessor (mineral owner) on all paid up leases in order to maintain the validity of an Oil & Gas Lease, pursuant to the terms and conditions of the Oil & Gas Lease. Rental payments maintain an Oil & Gas Lease in lieu of drilling activities or production.
When will I get paid for oil and or gas revenue?
Once title is cleared, the signed division order is received, and the well’s production begins, most royalty owners will be issued a monthly check (or receive a direct deposit) on the 25th of the month, unless the amount due is less than the “minimum payment” amount of $50. Amounts smaller than the “minimum payment” accumulate and are paid when the “minimum payment” amount has been reached, or in October of each year, regardless of the amount.

Questions on Division Orders

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What is a division order?

Often a single well or lease will have multiple owners. A Division Order is created as soon as the title has been confirmed, the well has been drilled, and production has begun.  A Division Order is a written document that directs the distribution of proceeds from the sale of crude oil, natural gas, and/or natural gas liquids (“NGL”‘s).  Among other things, the Division Order describes the specific property involved with its legal description (usually Section, Township, and Range); it specifies the royalty or working interest of individual owners, their most current address, and the request of their signature with social security number (“SSN”) or tax-payer identification number (“TIN”).  Until the Division Order is signed, any funds will be placed in suspense.  Occasionally the Division Order is referred to as a division of interest.

On the Division Order, there is a line for the owner to include their TIN or SSN. Caerus needs this information to report payments to the IRS. If an owner does not wish to provide their TIN/SSN, there will be a withholding deduction of 24% as provided under IRS regulations.

Royalty owners can update their address directly on the Division Order by hand writing their new address and initialing next to the changes.  Caerus then mails two duplicate copies of the Division Order; one to be signed and returned to Caerus and one copy for the owner to retain for their own records.

Why haven’t I received royalty payments?

Royalty checks are mailed and direct deposit are made on the 25th of each month. A check may arrive a few days later than usual due to postal delays. If you do not receive your direct deposit as expected or if your check is more than two weeks late, please contact the Revenue Department at (720) 880-6351 or Revenue@caerusoilandgas.com.

If you believe your check may be lost or stolen, you may request a stop payment by contacting the Revenue Department at (720) 880-6351 or Revenue@caerusoilandgas.com. Please provide your owner number and the month for which you are missing a check.

A common reason for not receiving a royalty check is that your account has not reached its “minimum pay” status. Caerus will not remit revenue to you until your account balance exceeds $50, or in October of each year, whichever comes first.

Occasionally, payments are held due to title matters that create uncertainty as to ownership of the mineral interest, such as notice of death, change of address, transfer of property, assignment of interest, or legal dispute. These types of held payments are commonly referred to as “suspense” or “legal suspense”. Payments due to suspense interest are accumulated and released when the matter affecting ownership has been resolved. Inquiries regarding suspense balances should be made in writing to Caerus’ Land Administration Department. See contacts for address.

How is my interest calculated?

The proportionate share of production from a well is calculated by the net acres you own/contribute to the spacing unit (that was established for the well) and then multiplied by the royalty rate provided in your lease.

For example, if you own/contribute 20 net acres in a 640 acre drilling and spacing unit and your lease provides for an 1/8th royalty rate, your interest is a 0.00390625 decimal interest (20/640 x 12.5%).

Questions on Ownership Changes/Updates

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How do I change my address?

Please notify Caerus promptly of any changes in your mailing address. Please include your owner number, old address, and new address, including the zip code and social security number (at least last 4 digits) for verification.  This notice must be in writing with your signature or the signature of your appointed agent. For your protection, address changes will not be accepted by telephone. Please mail, fax, or email changes to our Land Administration Department along with the Change-of-Address-Form .

How do I change my name?

Send a copy of your marriage license, divorce decree, or other valid court document to Caerus.  Faxed and emailed documents are also accepted.

What do I need to sell or transfer my interest?

For Caerus to transfer ownership of interest we must be provided with legal documentation reflecting the conveyance of the interest in question. These documents may include, but are not limited to an assignment, deed, and/or properly probated estate documents. For additional information please contact our Land Administration Department.

Surface Owner Inquiries/Concerns

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Questions concerning surface rental payments?
Operator road use concerns.

If you have concerns regarding the condition or use of roads on your surface, please contact Surface@caerusoilandgas.com.

What is happening at the well location near me?
Odor, Dust, Noise Concerns.

We take seriously and investigate all odor, dust, and noise concerns.  Please contact Surface@caerusoilandgas.com.

I am interested in Selling my Minerals or Royalty Interest

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I am thinking of selling my minerals/royalty interests, why sell to Caerus?

Caerus is one of the premier oil and gas producers in the Piceance and Uinta Basins.  We are interested in acquiring minerals and royalty interests in the areas in which we have operations. Buy selling directly to us, you will receive the maximum value from your minerals or royalty interest.

Questions regarding Hunting, Grazing, Surface Access on Caerus’ Deeded Surface

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Does Caerus grant grazing leases?

Yes, please contact the Ranch Manager, John Andrews, for information on available grazing leases at Ranch@caerusoilandgas.com.

I would like to access Caerus-owned surface for recreation, hiking, or some other purpose?

All Caerus deeded lands are closed to the public, for inquiries on accessing Caerus Lands please contact John Andrews, Ranch Manager at Ranch@caerusoilandgas.com

Does Caerus allow hunting on Caerus-owned surface?

All Caerus deeded lands are closed to the public for hunting, except for hunts guided by Caerus personnel.  To enquire about guided hunting on Caerus surface, please contact John Andrews, Ranch Manager at Ranch@caerusoilandgas.com

Questions regarding Check Stub Detail

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How can I obtain my check detail?
Why didn’t I get a check or ACH last month?

To sign up for ACH/Direct Deposit, please click here: ACH-Form 1.

For other questions please contact Revenue@caerusoilandgas.com.

What can be done with a stale-dated check?

Caerus issued revenue checks are not negotiable after six months. If you did not present your check for payment within that time frame, we must re-issue the check. Please return the check to our Revenue Department  at 1001 17th Street, Suite 1600, Denver, CO 80202, and we will take the necessary steps to include this amount (with full detail) on your next available revenue check.

Questions regarding Tax Information

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When are the 1099’s mailed?

1099’s are mailed by January 31st.

When are the UT TC-675R’s mailed?

Utah’s TC-675R’s are mailed by January 31st.

When are the CO DR21W’s mailed?

Colorado’s DR21W’s are mailed by February 28th.

Questions regarding Joint Interest Billing (JIB)

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How do I receive my JIB invoice?
How are the charges on my invoice calculated?
How can I pay my invoice?

Invoices may be made by check to the following address:

Caerus Operating, LLC
PO Box 912621
Denver, CO 80291-2621

Invoices may also be made by ACH/wire.  Please contact Caerus at jib@caerusoilandgas.com for ACH/wire instructions.

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Downloadable Forms

Contact

Land Administration
Phone: (720) 880-6392
Fax: (303) 565-4605
Email: LandAdmin@caerusoilandgas.com

Surface Land
Zane Lay
Phone: (970) 285-2816
Email: Surface@caerusoilandgas.com

Grand Valley Mineral Company
Tom Aten
Phone: (720) 682-4714
Email: Minerals@caerusoilandgas.com

Ranch Management
John Andrews
Phone: (970) 285-2722
Email: Ranch@caerusoilandgas.com

Revenue Accounting
Phone: (720) 880-6351
Email:Revenue@caerusoilandgas.com

JIB Accounting
Phone:  (720) 880-6327
Email: jib@caerusoilandgas.com