FREQUENTLY ASKED QUESTIONS

What is a Division Order?

A Division Order (“DO”) is a document confirming ownership information in a particular property, or unit, and authorizing distribution of funds according to that information from the proceeds of the sale of oil and gas. The DO does not represent a sale of your property or any changes to your lease. When you sign and return the DO, you confirm that you agree with the information disclosed in the document.

With this in mind, if you receive a DO from Armor Energy, we ask that you verify the information on the DO, such as the spelling of your name, your mailing address, your ownership interest, and other information specified on the DO. Also, please be sure to sign the DO before returning it to us and make sure it is signed by two unrelated people as witnesses as well.

 

What are royalties?

Royalties are the mineral owner’s proportionate share of production as reserved in an oil and gas lease.

 

When are royalties paid?

Royalty payments are issued monthly. Checks are usually mailed on the 27th day of each month. If the 27th day falls on a weekend or a holiday, then checks will be mailed on the next regular business day.

 

Why does my monthly royalty payment vary?

Many factors have an affect on your payment, including market conditions, fluctuating commodity prices, regulatory or contractual changes, production and sales volumes, seasonal conditions and well downtime.

 

Why does my payment differ from others in my family?

While it is common for family members to own an interest in the same property, the payment amount to each family member could differ because their ownership interest may not be equal, other family members might also have an interest in other properties, or they may have taxes withheld that changes the amount paid to them usually due to not providing Armor Energy with their Tax ID Number.

 

What kind of taxes are deducted from my check?

State severance taxes, also referred to as production taxes, are deducted from your check.

Additionally, if you do not provide us with your Tax ID Number, then we may withhold federal income tax as required by the Internal Revenue Service. Also, if you are a non-resident alien, we may deduct federal income tax from your check.

 

What are the deductions on my check?

Generally, the deductions are transportation or gathering charges.

 

What is the minimum monthly royalty payment amount?

Our minimum royalty check amount is $100.

 

Why did I receive a check in October for less than the minimum amount?

Armor Energy will issue checks annually, in October, on accounts with accumulated amounts less than $100, but more than $10.

 

How long do I have to cash my check?

Checks are valid for 180 days after the date of issue. If you have not cashed your check within 180 days, it is considered stale dated, or outdated, and cannot be cashed. If you fail to cash one of your checks within 180 days, please return the check to Armor Energy and contact the Owner Relations Team to have your check reissued.

 

Why have I not received my check?

The most common reason is because your account has not reached the minimum $100 balance. If your account balance is less than $100, a check will not be issued for that month. Revenue amounts will accumulate month to month until they reach the minimum check amount of $100. Once your account accumulates to $100 a check will be issued during the next regular check date.

Other reasons for not receiving a check include your account being placed in suspense, or non-payment status, due to a bad address, transfer of interest, title dispute, missing Tax ID Number, or unsigned Division Order.

 

Why are royalty payments suspended?

Accounts, or royalty payments on individual properties, may be placed in suspense, or non-payment status, for various reasons including (but not limited to) a bad address, transfer of interest, title dispute, death of owner, legal requirement, missing Tax ID, or unsigned Division Order.

 

What should I do if I have not received my check or if my check has been lost or stolen?

Please contact the Owner Relations Team to request payment if your check has been lost or stolen. We will verify the status of your check with our Treasury Department and place a stop payment on the check if it is outstanding. Checks that need to be reissued will be processed in the next regular check cycle.

 

What do I do if a stop payment has been placed on my check?

If a stop payment has been placed on your check, the payment will be reissued to you on the next regular check date as long as you have confirmed with Armor Energy that all of your information on file is correct and nothing further is needed from you.

 

How do I enroll to have my revenues directly deposited into my bank account?

You will need to complete our Authorization Agreement for ACH Direct Deposits and return it along with an original voided check to the Division Order Department by mail.

 

How do I notify Armor Energy of a change of address?

Please fill out Armor Energy’s Address Change form and mail or email it to the Division Order Department.

For your protection we will not accept address changes by telephone. Due to legal requirements, Armor Energy cannot accept a change of address request without a signature. If another party is signing on behalf of the owner, we must be provided a copy of the document granting the authorization (Power of Attorney, Appointment of Guardian or Conservator, etc.).

You may mail, or email, your signed address change request to the attention of the Division Order Department:

 

Armor Energy, LLC

Attn: Division Order Dept.

4500 South Garnett Road, Suite 250

Tulsa, Oklahoma 74146

ownerrelations@armorenergyllc.com

 

What type of annual statements will I receive?

Royalty owners who are paid more than $600 annually will be mailed an IRS Form 1099-Misc. Income statement. This tax document summarizes the total payments made to you and tax withholdings for the previous year.

 

When are the Form 1099 Miscellaneous Income statements mailed?

The 1099 Miscellaneous Income forms are mailed out by January 31st of each year.

 

What is the difference between a royalty owner and a working interest owner?

A royalty owner shares in production revenues, while a working interest owner shares in both production revenues and development and operating expenses.

 

I am a working interest owner, where can I send my Joint Interest Billing payments?

Armor Energy, LLC

4500 South Garnett Road, Suite 250

Tulsa, Oklahoma 74146

 

How do I notify Armor Energy of a transfer of interest or name change?

Please see the Ownership Change Guide to determine the documents required to be submitted to Armor Energy based on the type of ownership change and situation.

 

What happens when the royalty owner of a property dies?

Please notify Armor Energy’s Division Order Department as soon as possible. Upon notifying Armor Energy, we will send you information describing what must be provided to transfer the interest of the deceased royalty owner to the proper heirs/beneficiaries. The documentation required can also be found on our Ownership Change Guide. The deceased owner’s revenue will be held in suspense until the proper heirs/beneficiaries can be determined.

 

What is the value of my interest?

Armor Energy does not provide any type of valuation or opinion of your interest. Please retain the services of a certified petroleum engineer, or a royalty management company for the purpose of obtaining the value of your interest.

 

How do I transfer my interest in a property?

Forward a recorded deed or instrument of conveyance evidencing sale of the property to Armor Energy’s Division Order Department at:

 

Armor Energy, LLC

Attn: Division Order Dept.

4500 South Garnett Road, Suite 250

Tulsa, Oklahoma 74146

 

Or email to:

ownerrelations@armorenergyllc.com

 

Where do I send documents to have them recorded?

All heirship and conveyance documents must be filed of record with the county or parish where the property is located. Contact the appropriate County Clerk’s office for filing instructions.

You can also contact Armor and we will work to help with any filing questions or assist you in filing the proper documents with the appropriate county(s).

 

How do I contact you?

By Mail

Armor Energy, LLC

Attn: Division Order Dept.

4500 South Garnett Road, Suite 250

Tulsa, Oklahoma 74146

 

By Phone

918.938.6385

 

By Email

ownerrelations@armorenergyllc.com