Owner Relations

Owner Relations

Interest Owner

Owner Relations Contact

Bonanza Creek Energy, Inc.
Attn: Division Order Supervisor

410 17th Street Suite 1400
Denver, CO 80202

Bonanza Creek values our relationships with all of our interest owners. You are an integral part of our business. We understand how important your ownership is to you, and we believe that communication is critical to maintaining a good relationship.

Leasing Information

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Lease Records

Our Lease Records Department maintains and controls Bonanza Creek’s lease records. The department is responsible for payment of delay rentals, minimum royalty payments and other payments associated with leasehold ownership. It is also responsible for the maintenance of all of our leasehold which means we maintain accurate records relative to leased acreage and the associated contracts relative to surface use, etc. This information is used for internal analysis and corporate reporting which is required by all states where we operate as well as the SEC.

Division Holder

Soon after an operated well begins producing oil or gas, Bonanza Creek issues a document, a Division Order, to each interest owner that identifies the well, describes the spacing unit, the interest owner’s remittance address we have on file and, the interest owner’s decimal interest in the well. The interest owner is asked to sign and return the Division Order. Bonanza Creek uses this information to remit proceeds to the interest owner.

Owner Numbers

Bonanza Creek currently has thousands of interest owners to whom it issues checks each month. In order to manage all the interest owners in our system, we assign an owner number to each interest owner. Your owner number should appear on all correspondence from us such as a Division Order or the check detail which accompanies your revenue check. So that we may better assist you, please include your owner number in any correspondence addressed to us.

Payment Information

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Address Change

It is important that you notify Bonanza Creek’s Division Order office in writing when you change your address. For more information, see Frequently Asked Questions or the Change of Address form.

Taxpayer Identification Number

Federal law requires that individuals and partnerships provide a certified Taxpayer Identification Number (TIN) for the interest owner account. For individual interest owners, your TIN is your Social Security Number. Other entities should provide Employer Identification Numbers. If the appropriate TIN is not received, Bonanza Creek is required to withhold 28% from your payment for federal income taxes.

Payment Amounts

The interest owner’s decimal interest in a well is calculated by taking the net acres owned in the spacing unit divided by the total acres in the spacing unit times (x) the royalty or override rate associated with the interest. The well interest is then multiplied by the dollar amount of total production Bonanza Creek receives from the purchaser. Changing market conditions may cause price fluctuations. Operational or mechanical problems or routine maintenance may temporarily impact production, causing downtime. Any of these conditions may increase or decrease the amounts paid to interest owners of interests in oil or natural gas wells. If production volumes and/or prices fluctuate, the amount of your check will be affected accordingly.

Payment Schedule

Bonanza Creek’s payments are made in accordance with applicable State Statute. After the payment for initial production is made, Bonanza Creek pays for oil and gas production two months after production occurs. Bonanza Creek’s minimum payment threshold is $50*; therefore, payment will be made when the accumulated funds amount to $50*. Owners can expect payment in the last week of the month.

*Effective as of June 1, 2015.

Suspended Payments

For your protection, payments may be occasionally suspended due to questions regarding your account. Examples of when such suspension could occur include, but are not limited to:

  • When your address is not current
  • When a title may be in dispute
  • During a transfer of property
  • When an interest owner dies
  • When we do not have a TIN on file
Retroactive Adjustments to Payments

On occasion adjustments are made on current checks for prior months’ payments. When this occurs the original payment is reversed and the new amount is paid. While we certainly try to avoid these types of adjustments, many of the causes are outside of our control. This may occur when there is a subsequent adjustment made to Bonanza Creek’s remittance by the purchaser of the oil and gas from the well(s), a change in a spacing unit in accordance with field regulations, or a resurvey of the spacing unit which requires a recalculation of the affected owner’s interest.

Ownership Changes

For your convenience we created the diagram below to help you learn about proper documentation for ownership changes.

Please keep in mind that this is merely a guide and that all requests for changes must be submitted in writing. Please allow 60 business days for the transfer to be completed or more time if additional information is needed.

Changing Ownership
01
Documentation

Current interest owner or authorized representative completes and records (in the county where lands are located) documents that signify the change in ownership. Owner provides Bonanza Creek with copies of the recorded document.

See Required Documents » 01 Icon
02
Verification

Bonanza Creek receives and verifies the documents. A Transfer Order is issued and sent to both the previous and new Owner.

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03
Transfer Order

The previous and new Owner sign the Transfer Order and send it back to Bonanza Creek.

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04
Confirmation

Upon receiving the Transfer Order Bonanza Creek updates its records with the new Owner information.

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05
Revenue Disbursement

When appropriate, Bonanza Creek remits payments to the new Owner.

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Change Required Document
Power of Attorney addition or change Copy of Power of Attorney, or copy of document effecting the change in current status.
Name change for a company or other entity Affidavit of name change or other state certified document effecting the change together with the new tax identification number, if applicable.
Name change due to marriage, divorce or other Marriage Certificate, Divorce Decree or other document effecting the change.
Address Change A written request with the owner number, last four digits of the tax identification number, address, owner signature and date. Change of Address Form
Bank Change or Direct Deposit Request for Automatic Payment If payment is mailed to a bank or lockbox, send the request in writing with the same information as a request for an address change. For direct deposit or to change current account information, complete the Bonanza Creek Automatic Payment form.
Purchase or Sale of Interest Copy of conveyance as recorded in the county or counties in which the property is located.
Ownership change due to divorce Divorce decree and settlement agreement or judgment as recorded in the county or counties in which the property is located, if applicable.
Ownership is transferred to or from a trust Copy of the trust agreement, or at a minimum, the pages addressing the creation of the trust, identification of the trustee and/or successor trustee, the powers afforded the trustee and a copy of the conveyance as recorded in the county or counties where the property is located.
Trustee change Documents evidencing the change and appointing the new trustee.
Death of Joint Tenant Death Certificate of joint tenant.
Death of owner – a Will was probated Copy of each of the following documents:
  • Death Certificate
  • Will
  • All documents of complete Probate Proceedings
  • Estate Inheritance Tax Release, if applicable
  • If the probate is in a state other than where the property is located, a copy of the ancillary probate recorded in the county or counties in which the property is located
Death of owner – No Will or Will was not being probated Copy of each of the following documents:
  • Death Certificate
  • Notarized copy of the Affidavit of Heirship as recorded in the county or counties in which the property is located
  • Copy of Letters of Personal Administration from the court, if applicable

Frequently Asked Questions

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What is an oil and gas lease?

An oil and gas lease is a written agreement in which a mineral owner (the “lessor”) allows another person or company (the “lessee”) to explore for, drill, and produce oil or gas on specified lands for a certain period of time in exchange for the payment of royalties.

The lease provides a legal description of the property, the amount of royalty to be paid (typically expressed as a fraction, e.g., 1/8 or one-eighth), the length of the lease (also known as the “primary term,” typically for a specific number of years), and the rights and obligations of the lessor and lessee.

What are royalties?

Royalties are the mineral owner’s proportionate share of production as reserved in an oil and gas lease. The royalty amount is usually expressed as a fraction of the total amount of hydrocarbons produced from the leased premises (or the proceeds attributable to such production).

When are royalties paid?

Bonanza Creek’s payments are made in accordance with applicable State Statute. After the payment for initial production is made, Bonanza Creek pays for oil and gas production two months after production occurs. Bonanza Creek’s minimum payment threshold is $50*; therefore, payment will be made when the accumulated funds amount to $50*. Owners can expect payment in the last week of the month.

*Effective as of June 1, 2015.

What is a Division Order?

Soon after an operated well begins producing oil or gas, Bonanza Creek issues a document, a Division Order, to each interest owner that identifies the well, describes the spacing unit, the interest owner’s remittance address we have on file and, the interest owner’s decimal interest in the well. The interest owner is asked to sign and return the Division Order. Bonanza Creek uses this information to remit proceeds to the interest owner.

What is a Transfer Order?

A Transfer Order is a document that Bonanza Creek uses to evidence the transfer of ownership from one interest owner to another.

What type of annual statements will I receive?

Interest owners receiving more than $10 in royalties or more than $600 in rentals annually will receive IRS Form 1099. This summarizes your total payments and tax withholdings for the previous year.

How do I transfer interest in a property?

Forward all documents evidencing the transfer to Bonanza Creek’s Division Order office in Denver.

For additional information about forms, please view the Ownership Changes.

What happens if I change my address or marital status?

For additional information about forms, please view the Ownership Changes to see the required documentation evidencing change in address or marital status.

What happens when the interest owner of a property dies?

Upon receipt of notification of a death of an interest owner, Bonanza Creek’s Division Order department will send you a package describing what documentation is needed to evidence the transfer of the interest out of the decedent’s estate. Further, the deceased interest owner’s revenues will be held in suspense until proper documentation is received showing the distribution of the estate.

For additional information about forms, please view the Ownership Changes.

When are royalty payments suspended?

For your protection, payments are occasionally suspended due to questions regarding your account. Examples of when such suspension could occur are:

  • When your address is not current
  • When record title is inadequately documented creating uncertain and/or disputed ownership
  • During a transfer of property
  • When an interest owner dies
  • When we do not have a TIN on file
What do I do if my check is lost, stolen or becomes outdated?

Email the Division Order Department to stop payment if your check is lost or stolen. Please have the following information ready when you call: your name, Owner Number and check date. We will stop payment on your check and issue a replacement within 10 business days. If your check is outdated, void the check, and send it back to Division Order Supervisor with a written request for a new check.

Where can I research unclaimed funds?

Each state makes an effort to locate rightful interest owners of production revenues through a single organization, holding the funds until the owner is found. To locate and collect unclaimed funds, please visit the National Association of Unclaimed Property Administrators’ (NAUPA) website at http://www.unclaimed.org/.