HomeMy WebLinkAbout20242905.tiffChevron
11%.
1%0
October 1, 2024
Dear Colorado Interest Owner:
RECEIVED
OCT 2 9 2024
WELD COUNTY
COMMISSIONERS
FSS--Production, Revenue &
Royalty Accounting
Tax & Royalty Reporting -- Royalty
Disbursements
Comptrollers, Chevron U.S.A. Inc.
P. O. Box 4791
Houston, TX 77210-4791
Tel 303-860-5836
Fax 713-754-3065
pdcenergy@ownerrelationssupport.com
On August 7, 2023, Chevron Corporation completed its acquisition of PDC Energy, Inc.
("PDCE"), which operates in Colorado. The acquisition has allowed PDCE to access more
systems and delivery networks. Beginning with the October 2024 production month, Chevron
U.S.A. Inc. ("Chevron"), acting on behalf of PDCE, will administer royalty payments and provide
payment information.
The transition will bring a change to your owner number(s) and property number(s). If you need
to reference your previous property or account numbers for any reason, please contact us in the
ways described below.
For oil, the manner in which royalties are calculated and paid will change. In the past, PDCE paid
oil royalties to all of its Colorado royalty owners using a weighted average sales price ("WASP"),
with owners receiving the same price and paying the same proportionate share of the post -
production costs PDCE incurred. The majority of PDCE royalty owners will continue to be paid
on a WASP based on a combination of the NYMEX index price at Cushing, Oklahoma (as most
oil produced is moved to Cushing) and the prices received from local sales in Colorado.
Transportation costs, however, will now consist of the specific pipeline or trucking costs incurred
to transport the oil to terminals in the Platteville, Colorado area, plus a weighted average of the
pipeline costs charged to move the oil from the Platteville area either to Cushing or to the local
refinery. Royalty owners share proportionately in the transportation costs as permitted under their
respective leases and Colorado law. For some wells, the oil is not transported to Platteville but is
instead sold at or near the lease property. Royalty owners who have an interest in these wells will
receive a royalty based on the actual proceeds received from the sales rather than based on the
WASP.
For gas, PDCE will continue to sell the majority of its production to gas processors at or near the
wellhead. However, beginning with production month October 2024, the starting point for royalty
calculation will be based on the processors' sales of the gross volumes of residue gas and natural
gas liquids ("NGLs") and any residue gas or NGL sales by PDCE or its affiliates. PDCE will no
longer deduct the costs PDCE incurs prior to the tailgate of the processing plants unless such costs
are specifically addressed in the applicable leases. Royalty owners will continue to share
proportionately in the costs for other post -production activities, such as downstream transportation,
as allowed under their leases and Colorado law. Gas royalty payments subject to class action
settlement agreements will continue to be paid per the terms of those agreements.
Co IA vn,Go-4 ons
11/4/24
2024-2905
Laok00
October 1, 2024
Page 2
Your monthly check statement will also be updated, such that it will be presented in a different
format and use different codes and abbreviations than were previously used by PDCE. For your
convenience, we have included a sample check statement with this letter. The enclosed sample
provides an example and explanations of the code and abbreviation legends that will appear on
your new check statements each month.
We partner with EnergyLink so owners can conveniently view, download, and print payment
details, tax information, and other forms. Instructions for retrieving your statement, payment
details, and other information can be found at https://app.energylink.com/default.aspx.
Royalty payments are mailed or deposited into your account no later than the 28th of each month.
(See the Electronic Funds Transfer option below.) Oil royalties are paid the month following
production. Gas royalties will be paid two months following the month of production.
This information is intended to be general in nature. Specific circumstances and lease language
may impact your royalty calculation. We understand you might have questions. If you do, please
contact our Owner Relations Department using the information detailed below.
Electronic Funds Transfer Option
If you receive payment directly to your banking institution via electronic funds transfer ("EFT")
and would like to continue that service, please complete and return the enclosed EFT form and
W-9 form. Completing these forms will help to ensure you continue receiving payment via EFT.
Funds are deposited on the 28th of each month.
If you currently do not receive payment by EFT, we highly recommend you choose this method
so your payments go directly to your banking institution. To change your method of payment to
EFT, please utilize the enclosed EFT Authorization Form, instruction sheet, and W-9 form.
Minimum Payment Amount
We have a minimum payment policy for all owners. Consistent with Colorado law, oil and gas
proceeds are accumulated until they total $100.00, after which a check will be issued. Annual
payments are made in March of each year, regardless of the amount.
Changes to Your Account
From time to time, you may need to make changes to your account. For example, you may need
to update your address or inform us of a name change. In addition, there may be events that affect
the ownership of the account, such as a sale or assignment of the underlying property or the death
of the account owner. You will need to contact us to make the appropriate changes to your account.
Enclosed herewith is a brief list of common account changes and the types of documentation we
may require from you in order to facilitate those changes. The list is intended to provide general
October 1, 2024
Page 3
guidance for common questions about account changes. The types of documentation needed will
vary by situation. Please contact our Land Ownership Department for specific questions about
changes to your account.
Privacy Notice
As part of your relationship with us, we have and may collect and use certain personal or business
data relating to you, including among other data: name, address, phone numbers, social security or
tax ID number, e-mail, and financial information including bank account number. This
information is used for business purposes and account management, which includes: performing
payment and billing processes; confirming title and ownership for various purposes, including the
acquisition or divestiture of properties and interests; handling tax reporting; performing
administrative, record -keeping, and maintenance matters; communication and contact with owners
and partners; managing claims resolution, litigation, and discovery; and complying with laws,
rules, regulations, and court orders. The examples mentioned in this notice are for illustration only.
Your personal data, and certain rights under state privacy laws, may be subject to our Chevron
privacy statements located at https://www.chevron.com/privacy.
Contact Us
For now, we are maintaining PDCE's Owner Relations phone number and email address. For
questions about your account, please contact PDCE's Help Line at 303-860-5836, or via e-mail at
pdcenergy@ownerrelationssupport.com.
If you have questions or documents related to address changes or changes in ownership, please
send them to the Chevron Land Ownership Department, P.O. Box 4538, Houston, TX 77210-4538.
Contact information can also be found at https://www.chevron.com/who-we-are/contact/royalty-
owners.
We appreciate your patience while we make this transition. We value our relationship and look
forward to assisting you.
Very truly yours,
Chevron Royalty Disbursements
Revenue & Royalty Accounting
Enclosures
Chevron
°NO
%NO
Land Department
Chevron U.S.A. Inc.
Chevron North America
Exploration and Production
Company
P.O. Box 4538
Houston, Texas 77210-4538
pdcenergy@ownerrelationssupport.com
Chevron U.S.A. Inc. is pleased to announce Electronic Funds Transfer (EFT) as our preferred
payment option. The EFT payment method will speed payment delivery by depositing payments directly
to your checking or savings account. In addition, EFT payments are a safe and secure alternative to
traditional mail delivery.
If you have not elected to receive EFT payments, please do so now!
To set up direct deposit by EFT please complete the following steps:
1. Complete and sign the attached authorization form (if the form is executed by a representative,
please provide the documentation providing authority). This form allows Chevron to make EFT
payments to your account.
2. Attach a voided check to the authorization form. The voided check enables Chevron to verify the
financial institution name and routing information on your form.
3. Return the completed authorization form and attached voided check to Chevron for processing.
To help Chevron reduce the use of paper we have partnered with Enverus/Energylink to provide our interest
owners with a safe, secure website to view, download and print your Chevron payment details, as well as
tax and other forms. If you are currently receiving EFT payments, or change your election to receive
EFT payments, you will no longer receive check payment detail by mail. Instructions for retrieving your
payment details and other information electronically can be found at:
https://www.energylink.com/Public/Signup.aspx.
We encourage you to begin using EFT to receive your payments electronically and thank you in advance
for your consideration.
Sincerely,
Land Ownership
Address Change
• Submit request in writing (form available
upon request)
Appointment of Attorney -in -Fact
• Copy of Power of Attorney
Bankruptcy
1. Chapter 11 (Debtor in possession)
• Plan of Reorganization
• Order Confirming the Plan of
Reorganization
?. Chapter 7
• Appropriate conveyance document filed
and recorded in all counties, parishes or
districts in which property is located
Change of Ownership Due to Divorce
• Court certified divorce decree
including Settlement Agreement
• Appropriate conveyance document filed
and recorded in the county, parish or
district in which the property is located
EFT Authorization for Direct Deposit
• Submit request in writing (form available
upon request)
• Include voided check
Guardianship
1. Owner declared incompetent
• Court issued Letter of Guardianship
naming Guardian
2. Owner, previously "a minor" reaches legal age
• Copy of birth certificate
Joint Tenants*
• Death certificate. Also provide completed
W9 and mailing address for surviving
tenant.
*Interest Is Owned as Joint Tenants with Right of
Survivorship and one tenant dies
Estate Proceedings**
1. Owner dies testate (with a will) and probate
proceedings are to be conducted in the same
state in which the property is located
If probate is not complete, please provide copies
of the following:
• Certified Death Certificate
• Order Issuing Letters Testamentary
• Order Admitting the Will to Probate
• Last Will and Testament
When probate is completed:
• Evidence debts and taxes have been paid
• Court certified Final Decree of Distribution
• Appropriate recorded conveyance
documents
2. Owner dies testate (with a will) and
probate proceedings are to be conducted in a
state other than the state(s) in which the
property is located (Where applicable**)
All of the above in addition to the following:
• Ancillary Probate proceedings will be
required in every state in which the
deceased owned property
• Court Order admitting Foreign Will to
Probate
• Appropriate conveyance documents filed
and recorded in all counties, parishes or
districts in which property is located
3. Estate not probated or owner dies intestate
(without a will)
• Certified Death Certificate
• Order issuing Letters of Administration
• Completed Affidavit of Heirship filed and
recorded in the county, parish or district
in which property is located (state laws of
descent and distribution based on property
location will apply). Affidavit of Heirship
form available upon request.
• If available, Court Order Determining Heirship
Please note that document requirements for Estate
Proceedings vary by state. Contact Chevron Land
Ownership Department at PO Box 4538, Houston,
TX 77210 for further information on Estate
Proceeding documentation.
Life Estate Owner Dies
• Copy of certified death certificate for Life
Estate Owner
• Names and addresses of remaindermen
• Completed W-9 of remaindermen
Name Changes
1. Individual name changes due to marriage or
divorce
• Court certified copy of marriage certificate
or divorce decree reinstating maiden name
or other court certified document reflecting
name change
2. Company or Corporation Name Change
• Certificate of Name Change
• Completed W-9
3. Company or Corporation name change due to
merger
• Certificate of Merger
• Completed W-9
Purchase or Sale of Interest
• Assignment, Conveyance or Purchase and
Sale Agreement which has been filed and
recorded in the county, parish or
district in which the property is located
Trusts
1. Trust is created
• Copy of Trust Agreement
• Copy of appropriate conveyance document,
filed and recorded in the county, parish,
or district in which the property is located,
transferring interest(s) to the trust
• Completed W-9
2. Change in Trustee
• Document evidencing appointment of
Successor Trustee
3. Trust is terminated
• Copy of Dissolution of Trust
• Appropriate conveyance document filed
and recorded in the county, parish or
district in which the property is located
• Completed W -9(s) for grantee(s)
This information in this brochure is not legal advice and is provided as a courtesy only. It is guidance and ownership change requirements may vary by State and/or situation. Reliance on the information
provided in this brochure is at your own risk and without recourse on Chevron USA Inc. Please contact an attorney for advice on specific issues.
Chevron U.S.A. Inc (CUSA) for CUSA; Chevron Midcontinent L.P.,
Noble Energy, Inc., Union Oil Company of California., PDC Energy, Inc.; and PDC Permian Inc.
ROYALTY OWNER
ADDRESS
HOUSTON, TEXAS 77002
PLEASE RETAIN THIS EXAMPLE DOCUMENT FOR FUTURE REFERENCE
DIRECT ALL INQUIRIES TO:
Chevron USA Inc
Attn Royalty Disbursements
P.O. Box 4791
Houston, TX 7721G-4791
1-866-212-1212 MONDAY - FRIDAY
5
I
7
8
OPF
9
OI
10
DATE 1INT�NPE IINT TYPE DOISDEDCIIM�AL
11
VOLUME
070470-00002 GREENWOOD PRE -GRAYS 14 (GAS)/NM/EDDY
12/2023 GAS WI
.00434060 0.00
852 00
0.00
0.00
0.00
O 00
0.00
070470-00004 GREENWOOD PRE -GRAYS 14 (NGLS)/NM/EDDY
12/2023 NGLS WI .00409501 1,346 00
0.00
0.00
O 00
0.00
0.00
YOUR TOTALS:
i
12
C
PRICE
0.00
2.12
O.00
0.00
0.00
0.00
0.00
040
0.00
0.00
0.00
0.00
000
13
S INTERES'
VALUE
0.00
1.803.90
0.00
0.00
0.00
0.00
0.00
543.57
0.00
O.00
0.00
0.00
0.00
14
TAXES
0.00
8.12-
1.62-
34.10-
O 00
31 96-
O 00
1.08-
0.22-
4 55-
0.00
0.00
4.26-
15
COST
ADJ
16
6
0.00
0.00
0.00
0.00
0.00
0.00
951.52-
0.00
0.00
000
0.00
429.92-
0.00
NET
VALUE
0.00
1.795 78
1.62-
34.10-
0.00
31.96-
951.52-
542.49
0.22-
4.55-
0.00
429.92-
4.26-
DISB DEC/
DOI DECIMAL
.00434060
00434060
_00434060
00434060
.00434060
.00434060
.00434060
.00409501
00409501
00409501
00409501
00409501
.00409501
17
VOLUME
YTD TOTALS:
ADJU STMENT TYPE S
AVNM AD VALOREM PRODUCTION TAX
CININ I CONSERVATION TAX
ESNIVI EMERGENCY SCHOOL TAX
O17 1'A ISCELLANEt5
PRO PROCESSING
SVNIPOI SE'V'ERANCE TAX
TRP TRAittSP
23
i
0.00
3.70
0.00
0.00
O.00
0.00
0.00
5.51
0.00
0.00
0.00
0.00
0.00
9.21 10 06 0.38- 7 07-
0.00
18
IVVNEF
VALUE
0.00
7.83
0.00
000
0.00
0.00
0.00
2 23
000
0.00
0.00
0.00
0.00
19
2
Check Number:
Owner Number:
Check Amount:
Check Date:
4
REST
TAXES
0.00
0.04
0.01-
0.15-
0.00
0.14-
0.00
0.00
0.00
0.02-
0.00
0.00
0.02-
20
ADJ
TYPES
017
AVNM
CNNM
ESNM
017
SVNM
TRP
AVNM
CNNM
ESNM
017
PRO
SVNM
XXXXXXX
12345678
$2.61
MM/DD/YR
21
1
3
22
COST(
OTHER
ADJ
0 12-
0.00
O 00
O 00
0.78-
0_00
4.13-
0.00
0.00
0.00
0.28-
1.76-
0.00
NET
VALUE
.12-
7.79
.01-
15-
.78-
.14-
4.13-
223
.00
.02-
.28-
1.76-
02-
2.61
210.84 6 73- 190.58-
13.53
INTERE ST TYPE S
WI INORKING INTEREST
RI ROYALTY
OR OVERRIDING ROYALTY INTEREST
PP PRODUCTION PAYMENT
DL sc isa
WR: GROSS INTEREST
Iaa2 NON -PARTICIPATING ROYALTY INTEREST
DIRECT ALL INQUIRIES TO:
Civcynrin U.S A. Inc-
/!°kiln: Royalty lisbirs e,nents
P O. I3ux 4791
Houston. TX 7721O-4791
1-806-212-1212 Monday through Friel y
Email add_ inractac ni nni matche'rri i.corn
UNDERSTANDING YOUR CHECK DETAIL
31
41
51
71
91
10)
CHECK NUMBER: If you receive payments by electronic funds transfer (EFT), this is the Deposit Number on your EFT
statement.
OWNER NUMBER: This number uniquely identifies your Chevron account.
CHECK AMOUNT: The total amount paid on the check. For EFT payments, the Deposit Amount refers to the total amount
paid.
CHECK DATE: The date the check is issued. For EFT, the date of your EFT Statement is the Deposit Date.
PROPERTY-DOI: The Chevron property identification number for your Division of Interest (DOI).
DOI DECIMAL: Your Division of Interest or division order decimal.
DATE (MO/YR): The month and year the production was produced or sold.
PROD: The product for which payment is being made.
INT TYPE: The type of ownership interest in a property reflected in our system
DISB DEC (Disbursement Decimal): A decimal used to reflect your proportionate share in the sale of production from a
property.
11) VOLUME: The volume of a product produced or sold from a property.
12) PRICE: The price per unit of measure for a product from a property.
13) VALUE: The value of the product before taxes and cost adjustments are applied.
14) TAXES: The value of tax obligations for a property.
MEASUREMENT UNITS
GAS
NGLS
OIL
CON
SUL
MCF
LLCPIS
BARRELS
BARRELS
LONG TOWS
15) COST ADJ: Itemized deductions are available upon written request. Please see the contact information
provided for further information.
16) NET VALUE: The value after Taxes and Cost Adj are applied.
17) VOLUME: Your proportionate ownership share [Disb Dec] of the volume produced or sold from a property.
18) VALUE: Your value of the applicable sales of a product from a property, before Taxes and Costs/Other ADJ are
applied
19) TAXES: Your proportionate owners share of tax obligations for a property.
20) ADJ TYPES: Refer to the list above.
21) COST/OTHER ADJ: Your proportionate share of any adjustments. Itemized deductions are available upon
written request.
41 NET VALUE: Your proportionate share of the Value after Taxes and Cost/Other Adj are applied.
YOUR TOTALS: The totals for your share of Value (#18), Taxes (#19), Cost/Other Adj (#21),
and Net Value (#22) from all properties
23) YTD TOTALS: Accumulated total for the year
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