Compass Royalty Management Services
The In's and Out's of Oil & Gas Mineral Management
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At our core CRM manages the flow of royalty and lease revenue from thousands of operators on a daily basis. We log all the details down to the well level and distribute client's share of that revenue on a monthly basis.
Ad Valorem Tax Mgt.
As a mineral rights owner, most states assess Ad Valorem taxes, a personal property tax on mineral owners assets.
Many royalty funds have thousands of interests in multiple states and counties. CRM manages the process of paying on behalf of the investor their share of the Ad Valorem taxes. End of year reporting will include applicable state forms required to complete personal tax reporting.
Division Order Processing
A division order is a document from an operator that has recently drilled an oil or gas well. It spells out the division of interest of the mineral rights owner. While this indicates that revenue is about to start flowing from a new well, CRM's Division Order team will confirm the language is correct and will sign to ensure owners get the correct share of this new revenue.
Online Account Detail
Clients of CRM will have online access to their accounts. This access will provide details on monthly checks to include comments on the various assets under management as well as distribution details down to the check number.
Secure File Storage
CRM maintains all historical data on a state of the art system. The system is in a secure offsite data center with redundant backups.
Pro-Active Lease Mgt.
As a mineral owner, the operators prior to drilling lease the surface rights. Leases expire, typically 3 to 5 years, if production has not started. CRM Asset Mgt. Group monitors the leases and as they near expiration, we actively look for operators to bid on leasing the surface in an effort to maximize the lease bonus. Lease bonuses in turn flow back to the mineral owners.
Suspended & Escheated Funds Search
Escheated funds are funds that operators, banks, insurance companies etc., hold when they are either returned or unable to find the rightful owner. Those funds (after 2 years) are returned to the state. CRM constantly sweeps every state we manage assets in looking for client's escheated funds.
The same goes for when operators have an issue with mineral owners that can range from wrong addresses to division of interest questions. CRM's Revenue Recovery Department sweeps the over 1700 operators that pay us to identify suspended funds and solve the issue to get funds released.
Enhanced Revenue Recovery
Suspended & Escheated funds are only 2 of many ways our Revenue Recovery Team can discover funds that may be owed to clients. Our analyst use technology to create campaigns to sweep all potential avenues to recover any funds due.