Frequently Asked Questions

GENERAL TERMS

What is a division order?


  • A division order is a document confirming ownership information in a particular property/unit and authorizing distribution of funds according to that information. The division order does NOT represent a sale of your property or any changes to your lease.
  • When you sign and return the Division Order, you confirm that you agree with the information disclosed in the document. If you have any questions regarding the content of your Division Order, please contact Sabine Oil & Gas Corp’s Land Administration Department ("Land Administration").




What is a Transfer Order?


  • A transfer order is a document that is an adjunct to the division order used to confirm the transfer of an interest from one owner to another after preparation of the initial division order.




What are royalties?


  • Royalties represent the interests retained by lessors under an oil, natural gas and mineral lease. Funds are payable on these interests based upon the value of a percentage of the minerals produced from the lease.




What is an “owner number” and what is its purpose?


  • Sabine Oil & Gas Corp assigns each of its interest owners a unique owner number for internal identification purposes. Please include your owner number when communicating or corresponding with Sabine Oil & Gas Corp.




How is my interest calculated?


  • Your decimal is calculated as illustrated in the example below: mineral interest × royalty × (your acreage included in unit divided by total acreage of unit) or: 1/6 × 1/8 × (30.35 ÷ 638.34) = .00099052




How long does it take to get an answer for inquiries?


  • Most inquiries can be answered in a matter of days, however depending on the complexity of the issue some requests may require 30-60 days to complete. Sabine Oil & Gas implements a First-In First-Out process for completing calls and owner maintenance items.





OWNER INFORMATION & CHANGES

How do I change my address?


  • Please promptly notify Sabine Oil & Gas Corp. of any change in your mailing address. This notice must be in writing and signed by you or your official representative. Please include your name, owner number, Social Security number, old address, and new address, including the zip code. For your protection, address changes are not accepted by telephone.




How do I change my name in Sabine Oil & Gas Corp’s records if I get married or divorced?


  • Please provide Sabine Oil & Gas Corp with a written request to change your name. Your request should include your old name as it appears in our records, your new name, and a court certified copy of the marriage certificate or divorce decree. In the event your divorce is not finalized, you should state whether you want your payments to continue under your old name or whether you want your payments suspended until the divorce proceedings are complete.




How do I add my spouse to my account?


  • You must file a deed, assignment, or other instrument conveying title in the interest to you and your spouse in the real property records of the county or parish in which the interest is located. You must then provide us with a certified copy of the instrument to add your spouse to your account. In the event this transaction is not completed and the instrument has not been signed and recorded, you must advise us in writing if you want your payments suspended until the transaction is completed and you have provided us with a certified copy of the instrument.




What do I do to transfer my ownership to someone else?


  • The purchaser must file a deed, assignment, or other instrument conveying your title in the interest in the real property records of the county or parish in which the interest is located. The purchaser must then provide us with a certified copy of the instrument, along with a Social Security number or tax identification number, address, and daytime phone number. In the event this transaction is not yet completed and the instrument has not been signed and recorded, you must advise us in writing if you want payments suspended until the transaction is completed and we have been provided with a certified copy of the instrument




What documents are required if I buy or sell an interest in a property?


  • You should provide Sabine Oil & Gas Corp with a certified copy of the deed, assignment, or other instrument of conveyance properly recorded in the county or parish in which the property is located




What happens if an interest owner passes away?


  • If the deceased interest owner left a will and the will is being probated, you should provide us with certified copies of the death certificate, Order Issuing Letters Testamentary, Order Admitting Will to Probate, and final decree or judgment distributing the estate. If the estate is not probated or the owner dies without a will, you should provide us with a certified copy of the death certificate, a copy of the will (if available), and a completed Affidavit of Heirship recorded in the county or parish where the interest is located. The Affidavit of Heirship must be completed by a disinterested party and signed and sworn in the presence of a notary public. A “disinterested party” is someone who is not an heir of the decedent, though the disinterested party may be from the same family. The attached Corroborating Affidavit must be signed by someone NOT a member of the decedent’s family, and also must be signed and sworn in the presence of a notary public




How do I notify Sabine Oil & Gas Corp of a change in trustee?


  • You should provide us with a copy of that portion of the trust instrument that identifies the successor trustee, its duties and powers, and the circumstances leading to the trustee’s replacement. You should also provide us with the successor trustee’s address.





UNCLAIMED PROPERTY

Where can I research Unclaimed Property?


  • Each state makes an effort to locate rightful owners of production revenues, holding the funds until the owner is found. To locate and collect unclaimed funds, please visit the National Association of Unclaimed Property Administrator's (NAUPA) website at: https://www.unclaimed.org/




How is abandoned property reported?


  • Each state has abandoned property or escheat laws that require the reporting of funds held for its residents. Once abandoned property has reached the state's required dormancy period, it is paid to the state of the owner's last known address.





PAYMENT INFORMATION

What options are available for receiving my payments?


1. ACH (Automatic Clearing House) also referred to as Direct Deposit. This is considered the most secure method of payment. Payments processed by ACH are directly deposited into the account you designate. These funds are available more quickly than payments made via paper check because mailing delays are avoided. Check detail will be made available to royalty owners via www.energylink.com for each payment made by Sabine Oil & Gas Corp. Please visit www.energylink.com to sign up to receive this detail. Note about direct deposit: Sabine Oil & Gas Corp is not responsible for banking institution delays in posting ACH transactions. It is the owner's responsibility to ensure that funds are appropriately credited to the accounts they have provided for deposit 2. Paper check. This is considered less secure because of the mailing and distribution processes.




What do I need to do to get set up to receive payment via Direct Deposit rather than paper check?


  • Reference SUNGARD INSTRUCTIONS FOR DIRECT DEPOSIT




When are checks issued?


  • Sabine Oil & Gas Corp typically issues checks on the last business day of each month. Please allow time for postal delivery.




What is minimum pay amount?


  • An owner must accumulate a minimum balance in their account of $50 in order for a check to be issued. The minimum may be changed to “Always Pay” once owner has successfully signed up for Direct Deposit via Sungard.




What should I do if I do not receive my royalty check?


  • Due to potential postal delays, a check may arrive a few days late. If your check is more than two weeks late, please contact Sabine Oil & Gas Corp. A frequent reason for not receiving a royalty check is that your account has not reached its “minimum pay” or “minimum suspense” status. Sabine Oil & Gas remits revenue to you once your account balance exceeds $50, 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. Payments due are accumulated and released when the matter affecting ownership has been resolved. Inquiries regarding suspense balances should be made in writing to Sabine Oil & Gas Corp’s Division Order Department. See contacts for address.




Why is backup withholding deducted from my revenue check?


  • You must provide us with a valid tax identification number or Social Security number for reporting and identification purposes. Once this information has been requested, Royalty Owners are required to respond within 60 days with this information. If the response is not received timely, the Internal Revenue Service requires that the company withhold 28 percent of all revenues until this information is provided.




Why does my royalty payment sometimes vary from month to month?


  • Many factors contribute to your payment. Changing market conditions may cause fluctuations in commodity prices on a monthly basis, while mechanical or operational problems or routine maintenance may temporarily affect production and cause downtime. Also, over time, production volumes from an individual well will experience a natural decline. So, while this may be offset with additional wells being drilled on your property, the decline in production volumes from individual wells is inevitable. Also, regulatory or contractual changes or seasonal conditions can affect the amount of your payment. If you have reason to believe an error in payment has occurred, please contact us at the e-mail address or address provided on the contact page.




Why are adjustments sometimes made to my payment?


  • Sabine Oil & Gas Corp strives to disburse revenues in accordance with each owner’s oil and gas lease and all statutes and regulations of the state in which the interest is located. In the event of an error or discrepancy in your payment, we will make the appropriate correction and an adjustment to your payment may result. For instance, we may receive adjusted production figures or adjusted pricing from a transporter. An adjustment to your royalty payment might then be required to ensure that accurate payment is made. Each state has a statute of limitations that governs how far back in the past a company can make such payment adjustments. Please remember that adjustments may sometimes be in the royalty owner’s favor.




When are royalty payments suspended?


  • For your protection, payments may be suspended in the event of a title dispute, assignment of interest, notice of death, transfer or sale of property, or unknown address. You can prevent such an inconvenience by promptly notifying us of any change regarding your interest.




What do I do if I have a check that was not cashed within 90 days of issuance?


  • If you opt to receive paper checks, and one is not cashed within the expiration period, the check will be voided and you should write or email our Owner Relations team to request a replacement check. This will delay the receipt of your funds.




What do I do if my check is lost or stolen?


  • If payment is made by paper check and it has not been received within 10 business days of the normal payment date, please contact our Owner Relations team to reissue the check. Please understand that if you ask for a replacement check, the original check will be immediately voided. This means that if the original check arrives on the next day, you should NOT CASH it as this check will not be honored by Sabine Oil & Gas Corp’s banking institution.
  • It is recommended that you sign up for DIRECT DEPOSIT to eliminate the risk of lost, stolen or misplaced checks. With this option, your funds are available to you more timely and there are not associated risks.




Why do the Gross Gas Volumes on my check match the Gas volumes on the Texas RRC website?


  • When Sabine Oil and Gas Corp has the ability to extract heavier volumes from the gas stream produced by the well, the Company does so in order to create more value for everyone. If the gas is processed under the aforementioned circumstance, each royalty owner will see their share of “P” (Plant Products) on their check detail.




Is Sabine Oil and Gas Corp interested in purchasing my royalty interest?


  • Sabine Oil and Gas Corp is always interested in discussing these types of opportunities with Royalty Owner. Please contact Owner Relations at OwnerRelations@sabineoil.com to begin these discussions.




Can Sabine Oil and Gas Corp withhold tax from my monthly checks?


  • Unless explicitly required by a Governmental agency, Sabine cannot accommodate this request.





1415 Louisiana St., Suite 1600

Houston, Texas 77002

(832) 242-9600 Main

(832) 242-9560 Fax

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