TCU Energy Institute/PPDC - Royalty Owner Program Class 3 - Critical Issues After Production Begins
Division Orders & Post Lease Requirements – Once production of oil & gas has commenced, the division order specifies the proportion of the proceeds that the royalty owner is entitled to receive. In most cases, the operator will make this determination based on the title work that he has done. The royalty owner will be able to verify that he is receiving the correct royalty payment based on the terms specified in the lease by learning exactly how royalty interests are calculated. Both division orders and transfer orders will be reviewed.
Payment Review & Production Verification – Payor statements, production data reports, and other information will be reviewed to ensure that mineral owners are receiving correct royalty payments. We will examine several alternatives to gather and collect information from production payments to examine readily available reports on various wells and mineral properties.
Eminent Domain & Pipelines – Every oil and gas well must have a distribution outlet to get the product from the wellhead to the marketplace, including pipelines, rail, and truck routes. The locations of these distribution systems can be controversial and disruptive to the royalty owner unless they are planned for in advance. We will discuss who decides on the locations of pipelines and truck routes, eminent domain and condemnation proceedings, pooling agreements, and how best to avoid disputes and legal proceedings.
Accounting & Taxation – Royalty owners must be aware of the importance of having a personal accounting system that provides the records necessary for preparing tax returns and paying taxes that are due on royalty income. These recordkeeping systems will make your CPA's life easier, save you time and money, and prepare you to deal with the taxes that are due on royalty income, including federal income, severance, and ad valorem taxes. What should be reviewed when you receive your Ad Valorem tax statement regarding your minerals. We will learn what to do to insure that you are receiving the production payments you should receive.
Estate Planning – Most large royalty owners should engage in estate planning to make sure that their mineral interests are protected and passed on to their heirs in accordance with their wishes. Inheritance taxes can take a significant portion of the value of an estate if proper planning is not done in advance. These laws and regulations are complex and confusing to the typical royalty owner. We will consider wills, trusts, LLC's, LP's, gifting and conveyance to heirs in advance of death.
8:00 - 8:30
Breakfast, Welcome, Logistics, and Introduction of Instructor
8:30 - 9:45
Topic: Division Orders and Transfer Orders. Review and preparation of what is required by Texas law, payment review, royalty payments, how royalty interests are determined, and review of division order title opinions, decimal interests, and production verification.
9:45 - 9:59
10:00 - 11:59
Topic: Eminent Domain & Pipelines, and Their Legal Ramifications. Notice, locations, placements, damages, eminent domain, and condemnation proceedings, pooling agreements, and how best to avoid disputes and legal proceedings.
12:00 - 12:59
1:00 - 2:44
Topic: Accounting and Taxation. Review personal accounting systems that assist the accountant. Ad valorem tax statements and the law.
2:45 - 2:59
3:00 - 4:30
Topic: Estate Planning to Protect Mineral Assets. Asset protection and transfer of wealth as per Federal and Texas law under various entities of protection including Wills, Trusts, LLC's, LP's, gifting, and conveyances.
George H. Wilson, II is founder and principal of Wilson Consulting, a privately-held business enterprise devoted to the education of and issues concerning independent royalty owners. He advises clients on all aspects of minerals management and negotiations and is recognized in Texas, Oklahoma and Colorado for his work as an advocate for fair and equitable leasing practices. George serves as the TCU Energy Institute Legal Scholar in Minerals Management and teaches regularly in Royalty Owner Programs.
George received his Doctorate of Jurisprudence Degree from the University of Tulsa and began his private law practice in Oklahoma in the early 1970s. He was admitted to the Federal U.S. District Court for the Western District of Oklahoma and to the 10th Circuit of the United States Court of Appeals during his time there. In 1981, he was appointed to the office of United States Magistrate in the Western District of Oklahoma and became a City Judge in 1991. George's law practice has spanned 30 years and throughout his career he has provided leadership and counsel in many aspects of law related to the oil and gas industry.
An active leader in the National Association of Royalty Owners (NARO), George has served on the NARO Board of Directors, was Vice-President of the national organization, and led the NARO Ethics Committee. He has been named to the Board of Directors of both Oklahoma NARO and NARO Texas and is a frequent contributor to the organization's publication, ROAR.
A Certified Minerals Manager, George is a frequent speaker in cities across the U.S. on topics of importance to royalty owners. Known for his high energy and entertaining style, George educates land owners in all aspects of the management and leasing process including "Techniques of Minerals Management," "Leasing: How to Mine the Underground," "Leasing Clauses and Other Protection," "Dealing and Negotiating with the Landman," "Surface Damages: Know Your Rights," and more.
George lives in Dallas, TX, where he maintains his consulting and management practice.
|G093133Q||Mar 26||8:30 am - 4:30 pm|
|Midland College PPDC Building|
|Registered: 0||7.0 Hours|