Automated Clearing House (ACH) payments and electronic remittance statements are available. For information regarding these services, please contact email@example.com or at 1-800-624-3821.
Once title is cleared, the signed division order is received, and the well’s production begins, most royalty owners will be issued a monthly check around the 24th of the month, unless the amount due is less than the “minimum payment” amount of $100. Amounts smaller than the “minimum payment” accumulate and are paid when the “minimum payment” amount has been reached, or at least near year-end regardless of amount.
PDC generally receives payment for a production period and distributes for that production period on a two month lag to allow for proper processing and allocations to multiple owners. For example, October’s production period would be distributed in December provided PDC receives payment from the purchaser by early December.
There are many factors that contribute to fluctuations in your monthly payment, including: market conditions, fluctuating commodity prices, regulatory or contractual changes, production volumes, seasonal conditions and well downtime.
This may be due to any number of factors, including differences in ownership, differences in lease provisions, ownership of interests in other properties, or interests being suspended.
Royalty checks are mailed around the 24th of each month. A check may arrive a few days later than usual due to postal delays. If your check is more than two weeks late, please contact the Revenue Department at 800-624-3821.
If you believe your check may be lost or stolen, you may request a stop payment by contacting the Revenue Department at 800-624-3821. Please provide your owner number and the month for which you are missing a check.
A frequent reason for not receiving a royalty check is that your account has not reached its “minimum pay” status. PDC will not remit revenue to you until your account balance exceeds $100, or at year-end, whichever comes first.
Occasionally, payments are held due to title matters that create uncertainty as to ownership, such as notice of death, change of address, transfer of property, assignment of interest, or legal dispute. These types of held payments are commonly referred to as “suspense” or “legal suspense”. Payments due are accumulated and released when the matter affecting ownership has been resolved. Inquiries regarding suspense balances should be made in writing to PDC’s Division Order Department. See contacts for address.
PDC issued revenue checks are not negotiable after six months. If you did not present your check for payment within that time frame, we must re-issue the check. Please return the check to our Revenue Department (1775 Sherman Street, Suite 3000, Denver, CO 80203), and we will take the necessary steps to include this amount (with full detail) on your next available revenue check.
Send us a letter requesting your payments occur annually. Include your owner number and the last 4 digits of your Social Security Number or Taxpayer Identification number for verification. These annual payments are released in December. Please mail your request to:
PDC Energy, Revenue Accounting
1775 Sherman Street, Suite 3000
Denver, CO 80203
Yes, revenue payments are subject to adjustment. There are many factors that may result in a prior period adjustment, such as:
- Production or measurement volume revisions from the operator
- Sales volume or revenue revisions from the purchaser
- Revised plant statements from a plant operator
- Corrected data received after an unexpected operational change (often due to a mechanical failure that interrupts normal operations or a major weather event)
- Revised pricing information from third parties
- Revised allocation statements or pricing information due to audit findings
- Revisions or corrections to ownership percentages
A discrepancy may be identified several years after the original distribution for a given production month, and because many parties have input into the overall process, there may be multiple revisions over any period of time.
Yes, since revenue payments are dependent on there being production and revenue from wells. The well(s) may be temporarily shut in for various reasons, or may stop producing all together and eventually be plugged and abandoned, or sold to another operator.