What information do you need to process my offer?
We will need a copy of the following in order to make you an offer
- Check stub attached to your revenue check from the oil and gas purchaser(s)
- Division Orders or transfer orders from the oil and gas purchaser(s)
- Mineral Deeds and/or Assignments under which you obtained your interest
- Correspondence from the oil and gas purchasers, operators or taxing authorities
- If you are representing an Estate, a copy of Letters Testamentary, Court Appointment or Power of Attorney
- Completion of an Authorization Form that allows us to contact the oil/gas purchasers for information on your interests. Russell T. Rudy Energy L.L.C. Authorization Form signed and dated.
I receive a check stub every time I get a check in the mail, but I don’t understand all the details. What do they mean?
Every purchaser and producer uses a slightly different format for their check stubs, but they all include certain basic information. Click here for a generic example of the check stub with explanations of each type of information. If you still have questions, please contact us.
Why should I consider selling my oil and gas interest?
- Oil and gas interests can involve erratic revenues and unique risks. For a full discussion of these risks, please go to (link to Individual Investors segment).
- By selling your interest for an immediate lump sum of cash, you can reinvest the proceeds in more conventional financial instruments, retire debt, or spend it however you choose.
Why Should I contact Russell T. Rudy Energy, L.L.C. for an offer for my oil and gas interests?
Russell T. Rudy is a third generation oil and gas, mineral, royalty and overriding royalty interest buyer. Ellis Rudy, his father, and his grandfather, developed a well-earned reputation for honesty, fair dealing and a very high standard of ethical communication. Russell has maintained those standards. Throughout the sales process, Russell T. Rudy Energy, LLC, will keep you informed and up-to-date on all aspects of your transaction. Unlike some of our competitors, who immediately resell or “flip” the interest, Russell T. Rudy Energy, LLC acquires interest for our own account. We are not brokers and we never repackage and resell interests that we have acquired.
In many cases, after one transaction is completed, we will purchase additional oil and gas interests from the same person. People often say that they come back to us because of the professional, honest and efficient manner in which we conducted their previous transaction. This is particularly true when they inherit additional interests months or years later.
What will I be required to do in order to get an offer from you?
To begin the process on producing properties we will need check stubs, division orders, and/or payment statements from the companies which purchase your oil and gas. On non-producing interest we will need a deed assignment, will or an oil and gas lease. Once this is available, we will be able to prepare the conveyance instruments and transfer documents. After these are signed, witnessed ad notarized, we will ask you to execute a transfer letter which will only need to be witnessed. At this point, the IRS requires us to obtain your Social Security Number/Taxpayer Identification Number for the preparation of a 1099. We do the rest! We handle the clerical work which includes: recording the conveyance instruments, notification of the County Tax Assessor, filing the documents in the appropriate County Records, and notifying the paying oil companies.
How long will it take you to get me an offer?
As soon as you have provided us with the supporting documentation specified above, we can generally have an offer to you within three (3) business days. This is certainly true when you are additionally able to supply a copy of the Mineral Deed, Assignment, Trust Deed, Divorce Decree, Probate Documents, or other instruments evidencing your ownership and title to the properties.
If I accept your offer what happens next?
Once you tell us that you have accepted our offer, we will be able to prepare the conveyance instruments and transfer documents. After you sign the conveyance instruments in front of a witness and have your signatures notarized, we will ask you to execute a transfer letter which will only need to be witnessed. At that point we are required to obtain your Social Security Number/Taxpayer Identification Number for the IRS. We’ll do the rest of the clerical work, which includes: recording of the conveyance instruments, notification of the County Tax Assessor, filing the documents in the appropriate County Records and notifying the paying oil companies!
How soon will I receive payment from you?
Once we receive the properly signed, witnessed and notarized conveyance instruments and transfer documents, we will forward payment either by mail, overnight delivery or wire transfer the next business day.
How do I know when my transaction is complete?
After you receive payment for our acquisition of your oil and gas interest, we will record the conveyance instruments in the appropriate County Records. When we get the recorded documents back from the County Clerk we will send you a copy. This will be your record of the sale of your oil and gas interest to Russell T. Rudy Energy, L.L.C.
Will I receive a 1099 for the sale of my oil and gas interest to you?
Yes, the IRS requires us to report the sale amount of our transaction to the Internal Revenue Service and submit a 1099 to you. We are also required to withhold thirty (30%) percent of the sale amount if you do not provide us with your Social Security Number/Taxpayer Identification Number.
I pay ad valorem (property) taxes on my oil and gas interest each year – how is this handled if I sell my interests to you?
Depending upon the amount of taxes levied on your interest and the date your transaction is effective (property taxes are paid on a calendar year basis in nearly all oil/gas producing states), the tax is prorated between you and Russell T. Rudy Energy, L.L.C. However this issue is negotiable and we often include the payment of “your share” of the property taxes in our offer.
