Royalty Payment Audits

Mineral Owner’s Audit: Checklist

Revenue

  • Confirm royalty ownership percentage
  • Secure Operator’s Report from Oklahoma Corporation Commission (hereinafter, “OCC”)
  • Secure Spacing or Unitization report from OCC
  • Secure Oil and Gas Purchaser’s Report from Oklahoma Tax Commission (hereinafter, “OTC”)
  • Compare OCC Report vs. OTC Report vs. Royalty Owners Report (quantity and price)
  • Track quantity and price over time
  • Benchmark quantity over time
Expenses

  • Determine whether Operator is wrongfully assessing gas marketing expenses
  • Surface
  • Confirm water payments
  • Confirm that surface covenants are satisfied
Regulatory

  • Monitor OCC actions for spacing unit
Daily tracking of key partners

  • Operator
  • Oil purchaser
  • Gas purchaser

On August 27, 2013, Gary Quinnett presented a legal seminar on commercial real estate issues. The attendees rated him "Excellent"