My letter to Scout:
My name is Dennis Broadbrooks and i am one of your new mineral owner from your purchase of Fidelity Exploration & Production Company(Fidelity) Interest's in Phillips County, Montana. I just received my first royalty check from Scout Energy Management LLC(Scout) and noticed on my statement that my Decimal Ownership Interest has changed from 0.01544000 to 0.00015440 in November of 2015, at the time Scout took over ownership from Fidelity. It seems to me as this was entered incorrectly upon transfer. Amounts are in same column in my statement under Decimal Ownership Interest.
Response from Scout:
I just talked with our accounting department and confirmed that Fidelity
used percentage to pay their revenues. If you'll note, the monthly
revenue amounts are very similar, which confirms we pay on decimal
interest and they paid on percentage interest.
Scout should have sent a letter explaining the change from percentage interest to decimal interest (confusing to me). Is there a difference and is anyone familiar with this and can explain it to me?