Frequently Asked Questions
What is the value of my mineral interest?
It would be a conflict of interest for Velandera to provide an assessment of value for its royalty owners. There are independent petroleum engineers who perform this service and they may also assist you in the marketing of your minerals, if that is your objective.
When will 1099 forms be sent?
1099's will be mailed by January 31st.
Why is backup withholding deducted from my revenue check?
A valid Tax Identification Number or Social Security Number must be provided to us for reporting and identification purposes. If it is not, the Internal Revenue Service requires withholding of 28% of all revenues (30% for foreign residents) until the information is provided.
When are revenue checks mailed?
- Checks are mailed out the last week of each month. If you are advised of a title dispute or adverse claim affecting your interest it must be resolved prior to disbursement of revenue.
- You elected a payment type other than monthly on your Division Order.
- Occasionally, payments are held due to matters which create uncertainty as to ownership, such as a notice of death, change of address, transfer of property, assignment of interest or legal dispute. Payments due are accumulated and released when the matter affecting ownership has been resolved. Inquiries regarding suspense balances must be communicated in writing to our Division Order Department.
What do I do if I did not receive a revenue check?
Velandera normally remits checks when the amounts due exceed $100.00. If the check amount is less than this, we withhold the checks until the threshold is exceeded, but checks are sent at least once a year even if the check amount is less than the threshold.
Why does the amount of my royalty payment change from month to month?
Many factors may cause your payment to vary including, but not limited to market conditions, suspended payments, adjustments (including any overpayments or underpayments), fluctuating commodity prices, regulatory or contractual changes, production volumes, seasonal conditions and routine maintenance or operating issues which may affect the volumes produced from a well during a given time period.
How do I obtain copies of my Division Order?
Please contact Owner Relations Hotline (318) 731-0000 Option 1 or email us at owner-relations@velandera.net
What is minimum pay, or minimum suspense?
An owner must accumulate a minimum balance in their account of $100 in order for a check to be issued. The minimum may be changed to $25 by letting us know in advance through email (owner-relations@velandera.net). In any case, all accounts are released once a year in January to release all suspense, no matter how small.
What type of annual statement will I receive?
Owners will receive a 1099 statement for payment received in the prior year. 1099's are mailed out on January 31st.
What if I need an additional copy of my statement?
Please contact Owner Relations Hotline at (318) 731-0000 Option 1 or email us at owner-relations@velandera.net
What is residue return?
After gas is removed from a well, it is then processed at a gas plant to remove the Natural Gas Liquids. The remainder product is refered as "Residue Gas". The Well operator will then buy back this gas to operate on site equipment.