NYSE:
CLR
86.06
-1.26
Frequently Asked Questions
General
Q.What is a Division Order?
A.
A Division Order is a written contract that directs the distribution of proceeds from the sale of oil and gas. Among other things, the Division Order:
- Describes the specific property involved
- Specifies the ownership interest of individual owners
- Outlines the basis for distributing proceeds that result from the sale of oil and/or gas production from that property
- Establishes certain responsibilities between the parties
- Does not alter or amend an oil and gas lease
Q.When should I return the Division Order?
A.
Please be sure to sign and return the Division Order as soon as you are satisfied that it contains:
- An accurate legal description and decimal interest for your ownership
- The correct spelling of your name
- Your current mailing address
- Where you want your revenue sent if different than your mailing address
- Your taxpayer identification number
- Any other information required by the law of the state in which your land is located
- If you have questions about your division order, you should contact your own attorney
Q.How do I change my address?
A.
Please notify us promptly of any change in your mailing address. Please be sure the notice:
- Is in writing
- Contains your signature or the signature of your appointed agent
- Includes your owner number
- Specifies your old address and new address, including zip codes
- Specifies an effective date of this change
For your protection, address changes are not accepted by telephone. Please mail changes to:
Division Order Department
Continental Resources, Inc.
P.O. Box 269091
Oklahoma City, OK 73126
Q.What is your activity in other states?
A.To learn about Continental’s operations across the United States, please visit our Operations page.
Payments
Q.How is my interest calculated?
A.
Your proportionate share of production from a well is calculated based on the net acres you own in the spacing unit established for the well multiplied by the base royalty provided for in your lease (subject to your lease provisions). For example, if you own 10 net acres in a 640 acre spacing unit and your lease provides for a 3/16 base royalty your interest is a .0029296 decimal interest (10/640 x .1875)
Q.How much will my check be worth?
A.
No one can accurately predict whether a well will be productive or if productive how many barrels of oil or cubic feet of gas it will produce.
Q.When can I expect my check?
A.
It can take up to five months or longer from the first sale on your well before you receive a check, depending on the state in which the well is located. However, if you are advised of a title dispute or adverse claim affecting your interest it must be resolved prior to disbursement of revenue.
After the first sale, monthly checks for oil and gas revenues are mailed on or around the 25th of each month. If you have not received your oil and gas revenue check by the last day of the following month, please call our Revenue Department at (800)-256-8955 x705
Q.I haven’t received my check. Can you tell me why?
A.
The most common reason is that your account balance has not reached your set minimum pay level under your lease or applicable law. All balances over $10, but less than set minimum pay levels, are paid annually in December. Balances under $10 are paid when required by law.
Q.Why does my payment amount change from month to month?
A.
A number of factors can influence your payments each month, including:
- Fluctuations in prices received and volumes sold due to changing market conditions
- Normal production declines as a property ages
- Temporary mechanical or operating challenges affecting production
If you notice a significant change in the amount of your payment and you have reason to believe an error has occurred, please contact the Revenue Department at (800)-256-8955 x705 to verify that the payment is correct.
Q.Can I set up direct deposit?
A.
Yes, you can choose to have your funds deposited directly to your bank by electronic funds transfer (EFT). To do this, please contact the Division Order Department by email at divord@clr.com and a form will be mailed or faxed to you for completion. If you choose this method, your funds will be available to you on or before the same day that you would normally receive your checks by mail. We will need your current e-mail address to notify you of the details of the payment.
Q.What are “stale dated” checks?
A.
Our revenue checks are not negotiable after 90 days. If you did not deposit your check within that time frame, we must re-issue the check. Please return the check to our Revenue Department and we will take the necessary steps to include this amount on your next revenue check.
Q.Where can I research unclaimed funds?
A.
Each state makes an effort to locate the rightful owners of production revenues through an organization that holds the funds until the owner is found. To locate and collect unclaimed funds, please visit the National Association of Unclaimed Property Administrators (NAUPA) at www.unclaimed.org.
Taxes
Q.When can I expect my 1099 form?
A.
We will mail your 1099 information each year by January 31st.
Minerals
Q.What determines Continental’s preference in some acreage over others?
A.
There are many considerations in determining our interest in acreage. These include but are not limited to:
- Geological considerations
- Proximity to pipelines and other infrastructure
- Whether the prospect is primarily oil or gas
- Competitive factors
- Other business considerations
If you are interested in leasing with us, please call (405) 234-9000 to see if we are leasing in your area.
Wells
Q.How long will the rig be on my property?
A.
The following timelines are estimates, but should give you a general guide for the process. From site build to completion, you can expect 4-5 months or more of activity on your property.
- Up to 30 or more days for construction of the site
- Up to 70 or more days to reach total drilling depth
- Up to 30 or more days to complete the well
Q.How long does it take between the time I lease and the time you drill?
A.
While there is no assurance that all leases will be drilled, there are many factors that determine the time it takes to drill. These include but are not limited to:
- Whether we need to conduct seismic
- Preparatory work (geologists, engineers, landmen)
- Availability of drilling rigs
- Availability of service companies to help us complete wells
- Pipeline and railhead capacity for transporting the resources we produce