We have developed and implemented processes to combat the seemingly impossible task of properly reporting Royalties to the state of Louisiana. While creating our clients’ solutions , we look not only at the big picture of a production facility such as location within the field, but also at location relative to satellite wells and sales pipelines. This includes reviewing and monitoring third-party statements to ensure Royalties are properly paid each month. We also review lease, commingling, transport agreements, as well as production facility schematics and production allocations.
Once we have a clear understanding of your company’s revenue streams and allocation process, we begin tailoring a customized solution specifically for your operations and lease terms. Our approach when it comes to Royalty Reporting ensures that reports are submitted in a timely manner and the state is kept whole to all leases. We pride ourselves on having the skills and knowledge necessary to properly report Revenues and Royalty liabilities to the state. Each month, we calculate our clients’ liability and report on the following forms:
- Oil (SR-1)
- Gas (SR-2)
- NGLS (SR-5)
Although Royalty Reporting may seem like a menial task, there are several restrictions with regard to deductions as well as coding standards that complicate the monthly reporting process. As with our Production Accounting and Severance Reporting services, we tailor our solutions to work in conjunction with all industry standard accounting software while completing timely prior period adjustments when utilizing all of our services.