Please mouseover or click on the area of the following check detail to view the explanation of that area.
Items on Your Check Detail
The check detail includes information for both the entire interest for which EOG remits a royalty payment, as well as your ownership interest. Information specific to your ownership interest can be found in the four columns on the right side of the check detail under the "Owner" heading. The other check detail columns contain property information and information applicable to the entire interest for which EOG remits a royalty payment. Definitions for all items displayed on the check detail include:
Interest Type: Your type of ownership in the property, as identified on the bottom right corner of the check stub and may include:
Settlement Interest: The interest used to calculate your share of the entire interest for which EOG remits royalty. EOG does not always own or have the right to sell all of the products produced from the property. EOG distributes to interest owners proportionately from proceeds received. In the above example, the .20 settlement interest indicates that EOG had the right to sell 50% of the gas (.10 owner interest divided by .20 settlement interest equals 50%). If EOG has the right to sell all of the products, the settlement interest will be equal to the owner interest.
Product Type: Type of product for which payment is being remitted. Products reported are identified at the bottom left corner of the check stub and may include:
Quantity: Barrels (Bbls) of crude oil, condensate, or plant products or thousand cubic feet (Mcf) of natural gas associated with the total sales from the property or the entire interest for which EOG remits a royalty payment. If the settlement interest is equal to the owner interest, then the quantity represents the total quantity (Mcf or Bbls) from the property (See note K).
Deduct Code: Code used to identify other deductions. Deduction codes are identified at the bottom center of the check detail:
- CM Compression: The cost of compressing natural gas to meet pipeline pressure requirements.
- DH Dehydration: The cost of removing water from natural gas, as necessary to meet the pipeline specification for transporting.
- P1/P2 Processing: The cost of processing natural gas to extract plant products.
- TR Tax Reimbursement: Reimbursements received from purchasers for applicable severance taxes.
- T1/T2 Transportation: The cost of gathering and/or transporting crude oil, condensate, plant products or natural gas from the lease to a down-stream point of delivery.
- MS Miscellaneous: Other deductions not listed.
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