Martha, we just received the first payout from the Nighthawk wells and it goes back for 16 months of production. I can’t tell from looking at the production sheets if they have included the 12% interest that would be due for holding the payment for so long. How can I tell and what should I do?
Many times the first payment is for the royalties only and the interest comes on the second payment. Look on the statement for a code similar to INT. You may have to write a certified letter return receipt and specifically ask for the interest.
Certain companies are notoriously late. Remember to save all run statements that come with the checks for seven years for IRS purposes. You also want to check that the interest payment matches your 1099-INT, so save that statement as well.
The interest that EOG owed us last year was paid after four months. We did send in a letter asking for this payment - however, not sure if it had any effect. It seems they are very slow - not sure if a reason for that or not. 12% interest is not a bad deal however, is the good side.
Thank you, Martha, for the always good advice. And Bud for your follow up!
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