General-Questions

Frequently Asked Questions (FAQs)

Owner Relations - General Questions

What is a Division Order?

A Division Order is the document that lets you know production from a well has started and Denbury is preparing to make distribution of revenue derived from the sale of oil, gas and other hydrocarbons.  Denbury uses a Division Order to verify that your name and address is correct as shown for mailing payments.  We also use this document to verify your decimal is accurate to ensure revenue distribution is correct.

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What is a W-9 form and where can I find one?

W-9 forms are required by federal law in order for Denbury to pay royalties to Interest Owners. Please click here to complete your W-9. Please note this document must have your signature to be valid, therefore you will need to print out, complete and either mail by post, scan and email or fax.

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What does "Royalty Interest" mean?

Royalty Interest (RI) owners own the minerals and have signed an oil and gas lease which entitles the owner to a percentage of revenue from the sale of oil and gas produced from the acreage described in the oil and gas lease.  This percentage of revenue is referred to as the “royalty interest”.  This interest is not subject to any of the costs related to the development, drilling, operations or maintenance of the well.

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What does "Working Interest" mean?

A Working Interest (WI) is a percentage of ownership in an oil and gas lease and grants its owner the right to explore drill and produce oil and gas from a tract of property. Working Interest owners are obligated to pay their proportionate percentage of the cost of leasing, drilling, producing and operating a well or unit.

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What does "Mineral Interest" mean?

A Mineral Interest (MI) is also known as an unleased mineral interest and is a cost-bearing interest because the unleased mineral interest owners are not sharing a portion of their production in exchange for the Operators covering all of the production costs associated with extracting the resources from the ground.  The unleased mineral interest owners are entitled to 100% of their production minus their proportionate share of the cost of drilling, completing and equipping the well in addition to operating costs after the well is completed.

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What is a "Net Profit" Interest?

A net proceeds interest is not an interest in actual minerals. A net proceeds interest is a fractional ownership in the revenue derived from the sale of oil and gas, less expenses. This interest type is generally created when the leasehold, or working interest, is transferred through a 247 Operating Agreement to a second party with the first party reserving a percentage of revenue from the sale of production, less expenses.

Although your check detail indicates your interest is a royalty interest (RI), as though you own leased minerals, you actually own a net proceeds interest.

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What is an "Overriding Royalty Interest" or ORRI?

An Overriding Royalty Interest (ORRI) is an interest which is not connected to an ownership of minerals under the ground.  It is the right to receive revenue from the production of oil and gas from a well. The overriding royalty is carved out of the Lessee’s (operator’s) working interest and entitles its owner to a fraction of production.  It is limited in duration to the terms of a specific existing oil and gas lease, but is not subject to any of the expenses of development, operation or maintenance.  An overriding royalty interest expires once the lease has expired and production has stopped, whereas minerals and royalty owners maintain their ownership after production stops.

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What is the value of the interest?

Denbury Resources Inc. cannot provide an appraisal as the value is a matter of opinion. You may contact a royalty broker or local banker in the county/parish where your lease is located.

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Where can I find out about unclaimed (escheated) funds?

All states have laws that require the reporting of unclaimed funds belonging to owners who cannot be located. Please contact the applicable state(s) to reclaim funds that have been escheated and belong to you. A website you may find helpful is www.naupa.org National Association of Unclaimed Property Administration.

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How do I sell my interest?

All changes of ownership must be filed of record in the County/Parish/State where the property is located. We cannot provide forms for conveying real property interests.  Please contact an attorney for assistance in document selection and preparation.

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Who should I contact if I have questions regarding the website or for online assistance?

Contact Enverus at 1-855-301-5241 or email: ormsupport@enverus.com  

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Who should I contact if I have questions regarding my Check Detail?

Contact Denbury Owner Relations at 800-348-9030 or by email at ownerrelations@denbury.com

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