Pursuant to HB 981 passed by the Legislature of the State of Texas, we are required to provide you with the following information:
Section 91.504, Texas Natural Resources Code, gives an owner of a royalty interest in oil or gas produced in Texas the right to request from a payor information about itemized deductions, the heating value of the gas and the Railroad Commission of Texas identification number for the lease, property or well that may not have been provided to the royalty interest owner. The request must be in writing and must be made by certified mail. A payor must respond to a request regarding itemized deductions, the heating value of the gas or the Railroad Commission of Texas identification number by certified mail not later than the 60th day after the date the request is received. Additional information regarding production and related information may be obtained by contacting the Railroad Commission of Texas’ office of Public Assistance or accessing the commission’s website.
Most royalty owners will receive a monthly check. Small amounts are accumulated and paid as stated in your division order, usually $100, or once a year. Most states also have laws that affect this policy.
What is a division order? A division order is an authorization for payment by the owner directing the payor to pay the owner in accordance with the decimal interest set out in the division order. The owner should always verify the accuracy of the information contained in the division order prior to signing and returning the instrument. The owner must provide the correct Social Security number/tax identification number to the operator to avoid suspension of interest and the deduction of back-up withholding as required by the Internal Revenue Service. The owner should maintain a copy of the division order for future reference.
Interest may be transferred by a recorded instrument of conveyance. The conveyance must be recorded in the county where the property is located. CIMA must receive a recorded copy of the conveyance to transfer interest and issue division orders. You may want to have your attorney prepare these documents. If transferring to a trust, please provide a copy of the document appointing the trustee.
What if I change address or marital status? Address changes must be received in writing. Please send changes to:
CIMA ENERGY, LTD., attention Division Order Department. CIMA ENERGY, LTD Attn: Division Order 100 Waugh Drive, Suite 500 Houston, Texas 77007 Fax # 713-759-1186
Include your name, old address, new address and signature. Please include your owner number and Social Security number for verification. Please send a copy of your marriage certificate to update your name as a result of marriage or a copy of your divorce decree as a result of a divorce. CIMA will forward the information on to EEPC.
What happens when owner of a property dies? Once notified, the deceased owner revenue will be held in suspense until receipt of the proper probate documents or affidavit of death of heirship is received. Upon notifying CIMA, you will be sent a package describing what must be received to transfer the interest from the deceased owner to the appropriate parties See forms section below.