Owner FAQ

Royalties are the mineral owner’s proportionate share of production as reserved in an oil and gas lease.

Sanchez Energy assigns each interest owner a unique six digit number to distinguish you from Sanchez Energy’s other interest owners. When communicating with Sanchez Energy, please include your owner number to enable us to more quickly and accurately respond to your request.

Yes, we do. Please complete the Direct Deposit Form in full and include a voided check and either email to our Royalty Accounting Department or mail to Royalty Accounting Dept. 1000 Main St., Suite 3000, Houston, TX 77002. Please be sure to fill out form completely remembering to sign at bottom. Incomplete forms will not be set-up.

Unfortunately, once we change an owner’s account over to Direct Deposit payments, our system no longer generates paper copies of detail to be mailed out. At this point, you will need to register on our Owner Relations website to either access your monthly revenue details or set your account up to have PDS e-mail these details to you monthly. You can contact PDS Energy at (800) 318-7850 to receive a username and password to access this site.

Sanchez Energy issues royalty payments to royalty owners once a month, normally on or around the 25th of each month. The most common reason is because your account has not reached your minimum pay status. If your monthly payment is below $25, Sanchez Energy holds that money in a suspense account until it exceeds $25 at which point we send a check. Generally revenue held in suspense is released annually in December regardless of the amount held.

Occasionally, payments are held due to matters which create uncertainty as to ownership, such as a notice of death, change of address, transfer of property, assignment of interest or legal dispute. Payments due are accumulated in a suspense account and released when the matter affecting ownership has been resolved. Inquiries regarding suspense balances must be communicated in writing to our Royalty Accounting Department.

Our revenue checks are non-negotiable after 90 days. If you do not deposit your check within 90 days of issuance, we must void and re-issue the payment. Please return the check to our  Royalty Accounting Department (1000 Main Street, Suite 3000, Houston, TX 77002) and we will take the necessary steps to include this amount (with full detail) on your next revenue check.

For your protection, all change requests must be submitted in writing with the appropriate documentation and signed by the owner. Nothing can be done over the phone.

Address changes: Please click here for our Address Change Form. If the title to the property is held jointly, both owners must sign.

Marital Status Change: Please click here for our Name Change Form. Please attach a copy of marriage certificate, divorce decree reinstating maiden name or other document affecting name change.

Other Changes: Please contact our Lease Administration Department regarding all other changes.


Please notify in writing at the address below and include a copy of the recorded assignment/deed conveying interest to the new owner/s. Also include most current contact information for new owner/s.

Sanchez Energy
Attn: Lease Administration
P. O. Box 2986

Laredo, TX  78044-2986
Phone: (956) 722-8092
Fax:  (956) 718-1057

 


Please notify in writing at the address below and include death certificate for owner, Letters of Testamentary, copy of probated will (if applicable) or recorded Affidavit of Heirship and current address for new owner/s.

Sanchez Energy
Attn: Lease Administration
P. O. Box 2986

Laredo, TX  78044-2986
Phone: (956) 722-8092
Fax:  (956) 718-1057


Form 1099’s are mailed via the U.S. Postal Service on or before January 31st of each year for the previous calendar year. The IRS does not require 1099 forms if your Royalty Income is less than $10 a year, if your Working Interest Income is less than $600 a year, or if your vendor payments are less than $600 a year.

A valid Tax Identification Number or Social Security Number must be provided to Sanchez Energy for reporting and identification purposes. If it is not provided, the Internal Revenue Service requires a withholding of 28% of all revenues (30% for foreign residents) until the information is provided.