In this age of paperless transactions, many royalty interest owners have benefited from the ease and convenience of retrieving their revenue detail electronically. While paperless is where the future is headed, old habits die hard and will take time for everyone to get onboard. A majority of interest owners still receive paper checks, however, as Oil and Gas Operators adopt electronic distribution of their owner’s check detail to cut costs and streamline processes —providing owners the choice on how they receive their detail, may not be a common practice in the industry.
The Texas House Bill 129 , which takes effect September 1, 2017, was brought on to accommodate interest owners who may not have access to a computer or hold some hesitation to going electronic. The Bill ensures all interest owners are given a choice on how they would like to receive their revenue detail, whether that is in paper form or electronic.
What is Texas House Bill 129?
129 relates to the manner in which a payor of proceeds derived from the sale of oil or gas production is required to provide certain information to a royalty interest owner.
What this means for Oil & Gas Operators?
If payment is made to the royalty interest owner by a paper check delivered by mail or by means of a private delivery service, the payor must provide the required information to royalty interest owners using any of the following methods:
- Include the information on the check stub
- An attachment to the payment form
- Another remittance advice that accompanies the payment
Exceptions apply if the payor obtains, or a previous payor has obtained, the written consent of the royalty interest owner to provide the information in some other manner.
3 Conversation Tips to Shift the Fear of Electronic Check Detail
Whether it be fear of being targeted by cyber criminals or they don’t have easy access to internet or a computer, the hesitation to switch to paperless check detail exists among many royalty interest owners. While we may not be able to address the latter, we can certainly educate interest owners on the advancements and precautions online applications have built to protect sensitive data, not to mention the convenience online access provides for the user.
Addressing the security fear
- Data encryption helps protects our information from cyber criminals. This encryption is achieved by 'transforming' electronic data stored or sent from one person to another into lengthy and unreadable code. Encryption often uses complex mathematical algorithms combined with numerical sequences which can be difficult to decrypt. Along with other tools, it is an effective method used to protect the confidentiality, integrity, and availability of information.
Login and password
Your login and password provides the authentication and authorization for you to access your data versus another person. The authentication you provide, including login ID and password, determines what data you are authorized to see. This prevents others from accessing your data.
- Using strong passwords will add an extra layer of security to your online experience whether you are at home or traveling.
- Only a few minutes to access and review all statements.
- Handle your statements on your time, anywhere, anytime.
- Access current and historic financial data faster.
- View, print and report.
- Able to see transaction activity as it happens.
- Avoid lost or stolen mail.
- Access statements earlier than the paper statement would arrive.
- Have a paper trail as appose to a mail trail.
Oildex knows your business and understands your challenges. We are here to answer any questions you may have and assist you in distributing your revenue check detail – both electronic via our Owner Relations Web Portals and paper via our Mailing Services.