Frequently Asked Questions
Here we have compiled some of the most commonly asked owner questions.
Checks are typically issued on or before the 20th of every month.
Please notify our office immediately of any change to your mailing address by completing this Address Change Form or you can send changes in writing to Kirkpatrick Oil Company, Inc. Your notification should include your name, old address, new address, and signature, owner number and/or social security number for verification. Once completed, you can mail, email, or fax back to Kirkpatrick. For your protection, address changes are not accepted by telephone.
Yes. Click here to fill out our direct deposit enrollment form. Return the completed form with a VOIDED check or letter from your bank to Kirkpatrick.
Checks are issued when the royalty payment amount reaches $100. Once a year, checks are issued for smaller royalty payment amounts of $10 and over.
Funds will be credited to your bank account on or about the 20th day of every month.
There are several reasons this may occur, including:
• Ownership type and ownership percentage may not be the same among family members.
• Family members may own interests in different or additional properties.
• A family member may be in a suspense pay status.
When an ownership change is due to a sale or assignment of property, a copy of the deed or other conveyance instrument (properly recorded in the county where the property is located) should be submitted to Kirkpatrick. When an ownership change is due to the death of an owner, the requirements for updating ownership will vary depending upon several matters. Once notified of the death, Kirkpatrick will guide you through the pertinent requirements. Click here to see a list of requirements for ownership changes.
The most common reason is that your account has not reached a balance of $100. Kirkpatrick remits payment to you once your balance reaches $100 or once annually (for balances of $10 or more), whichever occurs first.
Please allow 15 business days to receive your check. If your check is stolen, contact our office immediately.
Any check more than six months old should be marked "VOID" and sent back to Kirkpatrick. We will reissue payment to you in our next check run after the voided check has been received.
A valid Social Security Number or Tax Identification Number is requested by Kirkpatrick for tax reporting and identification purposes. This information is provided to Kirkpatrick on an IRS Form W-9. If this information is not provided, the Internal Revenue Service currently requires us to withhold 24% (for US Residents) of your oil and gas revenues. All backup withholding is reported on your IRS Form 1099 at year-end, and it is considered a payment to the IRS on your behalf. Kirkpatrick does not issue refunds for backup withholding. Royalty owners are able to report the withholding on their income tax returns at the end of the year. Click here for a downloadable W-9 form to provide your tax ID number to Kirkpatrick.
Yes, we mail 1099's by January 31st of the following calendar year. The income reported to the IRS is your gross income for oil and gas revenues prior to any other deductions or taxes.
Kirkpatrick makes a concerted effort to seek out and pay oil and gas revenues to the rightful owners. Despite such diligent efforts, Kirkpatrick may be unable to determine the identity of the rightful owner or to locate that owner. In such event, each state has unclaimed property laws that require certain assets to be considered abandoned after a period of inactivity, usually ranging from one to five years. Once the statutory period of inactivity has been reached and Kirkpatrick has made a good faith effort to determine and locate the rightful owner of unclaimed funds, those funds are transferred (or escheated) to the state of the owner's last known residence.
To claim funds reported as unclaimed by Kirkpatrick and transferred to the state of the owner's last known residence, you will need to contact the appropriate state directly.
A Division Order is an instrument used by Kirkpatrick and other companies for the purpose of directing the payment of proceeds from the sale of oil and gas. Among other matters, the owner therein warrants in writing his or her decimal interest in the well and his or her name, address and tax identification number. The Division Order contains a provision requiring notice of change of ownership. The Division Order enables the first purchaser of the production or the holder of proceeds to make payment directly to the rightful owner. It does not relieve the lessee of any liabilities or obligations under the owner's oil and gas lease.
Prior to completing and returning your Division Order to Kirkpatrick, please confirm that all of the information set forth therein is current and correct.
Each owner is assigned a unique owner number to distinguish you from other interest owners. Each well is also given a unique property number. The owner number and the associated property number will appear on your account correspondence from Kirkpatrick. That account correspondence includes Division Orders and the check detail attached to payments to you for oil and gas revenues. So that we may better assist you, please include your owner and property number in any correspondence addressed to us.
Occasionally, we have to make retroactive adjustments on current checks for prior payments. If Kirkpatrick has to make such an adjustment, it can impact the amount of your check. While we certainly try to avoid these types of adjustments, many of the causes are outside of our control.
Working Interest (WI)
Royalty Interest (RI)
Overriding Royalty Interest (ORRI)