*ATTENTION*

Pursuant to the recent ACH transition to Wells Fargo, Sabine Oil & Gas has revised their company policy regarding the frequency of how payments are remitted. Effective November 17th, 2017, owners who have enrolled in Wells Fargo ACH will now be placed in “Always Pay” status (royalties will be remitted each month regardless of the dollar amount). Again, ONLY owners who have enrolled to receive ACH payments via Wells Fargo will be eligible for “Always Pay” status.  Consequently, owners who do not sign up for Wells Fargo ACH will receive a check payment either once $50 has accrued in their account or once a year as part of the minimum suspense release. If you are already a Wells Fargo ACH user, there is no further action needed as you will be receiving payments every month effective November 17, 2017 assuming there is production.

To enroll in the Wells Fargo ACH service, please review the instructions and log on to the website (both provided below) to create an account with the Wells Fargo Commercial Electronic Office (CEO) portal.  Be prepared to provide the following information:

Website AddressClick here

Instructions for ACH setup: Click Here

Originators Identifier Number: Please refer to your most recent check detail

Trading Partner ID: This is your Owner number with Sabine Oil & Gas (can be found on your most recent check detail)  **please note, if you have multiple owner numbers, you will need to create an ACH account for each number – or – send in a written request to combine your owner numbers to one account**

Confirmation Code: Please refer to your most recent check detail

If you have any questions or issues regarding your ACH setup, you may contact Wells Fargo at 1-800-851-8311 or contact our Owner Relations at 832-242-9575.

Please note at the end of the enrollment process you will receive an error message stating your “Trading partner is inactive…”, this error message is due to a manual verification process between Wells Fargo and Sabine Oil & Gas. Therefore, when you reach this page, you have completed the enrollment process and should grant 48 hours for the manual verification to commence.

Hours
Monday – Friday
8am – 5pm CDT 

Email OwnerRelations@sabineoil.com
Fax 832-242-9729
Post 1415 Louisiana, Suite 1600, Attn: Division Orders, Houston, Texas 77002

Online Access to Owner Payment Information:

Sabine Oil & Gas provides secure, online access to payment information via EnergyLink. Please login below or if you’re a new User, click ‘Need a User ID’.

Change of Address or Contact information:

Complete the change of address form and return with signature and SSN attention: Division Order Department.
(Download Address Change Form Here)

Setup Direct Deposit\ACH:

Sabine Oil & Gas has contracted with Wells Fargo for direct deposit. Please see the attached form for detailed instructions.
(Download ACH\Direct Deposit Setup Instructions)

Name change due to marriage, divorce:

Recorded Marriage Certificate, Divorce Decree specifying name change or other documents affecting name change. Please send the required documents attention: Division Order Department.

Merger or change to corporation or company name:

Certificate of Name Change, Certificate of Merger and Executed W9
Please send the required documents attention: Division Order Department.
(Download W-9 Form)

Appointment of Attorney-In-Fact:

Please send a recorded copy of the Power of Attorney attention: Division Order Department.

Transfer of Interest (Sale of Interest):

Conveyance document recorded in county/parish in which property is located.
Please send the required documents attention: Division Order Department.

Trusts and Partnerships:

Conveyance of interest into or out of trust/partnership recorded in county/parish in which property is located, copy of trust/partnership agreement, instruments pertaining to successor trustee, and executed W9.
Please send the required documents attention: Division Order Department.
(Download W-9 Form)

Minimum Suspense:

Sabine Oil & Gas issues royalty checks when royalty totals $50 or more, or once a year in September.

1099 Questions

Q: When will I receive my 1099?
A: 1099s will be mailed to your address of record by January 31, 2017.

Q: I received very few royalty payments. Will I receive a 1099?
A: The minimum amounts for which 1099s are issued are:

  1. Box 1 (Rents) – $600
  2. Box 2 (Royalties) – $10
  3. Box 7 (Non-Employee Compensation/Gross Working Interest) – $600

Q: It is the end of February and I did not receive my 1099. How do I get a new one?
A: Call our owner relations line at 832-242-9575 or email us at ownerrelations@sabineoil.com. In addition to your owner number, you will be asked to verify your address and Social Security number. You can then have the form faxed, emailed or re-mailed.

Q: My address has changed, and I did not receive my 1099. How do I get a new one?
A: All requests for a change of address must be submitted in writing. To request a change of address:

  1. Send a written request to 1415 Louisiana, Suite 1600, Houston TX 77002
  2. Fax a written request to 832-242-9729
  3. Send an email to ownerrelations@sabineoil.com
  4. Visit www.sabineoil.com and click the Owner Relations tab Once a change of address has been received, a 1099 can be requested at 832-242-9575 or email ownerrelations@sabineoil.com.

Q: What are the numbers on my 1099?
A: The numbers are as follows:

  1. Box 1: Rents: Monies paid for Lease Bonus and Right of Way
  2. Box 2: Royalties: Gross payments made on production or minimum royalties
  3. Box 3: Other: Damages and water usage
  4. Box 7: You will see either:
    • GWI: Gross Working Interest: Your owner type shares in the operating revenues and costs associated with the well. This is most commonly seen along with monies in Box 2.
    • NEC: Non-Employee Compensation: Payments made to contractors

Q: The amount in Box 2 does not equal what I deposited. Why?
A: Sabine is required to report Gross Royalty Amounts to the IRS. Your periodic disbursements are net of production- related deductions and State Severance Taxes. Refer to the summary at the bottom of your 1099, the “Net=$”, or Net figure should equal your deposits.

Q: The Net does not equal my deposits. How do I get the detail?
A: Contact our Owner Relations line at 832-242-9575 or send a request via email at ownerrelations@sabineoil.com and we will provide you with detail. Your year-to-date totals can be found on your last check stub for 2014.

Q: I received my December royalty check in January. Why is it on my 1099?
A: The IRS uses a “Constructive Receipt” doctrine. Because the payments are issued in December, the figures are appropriately included on the 1099.

Q: I had several old royalty checks dated prior to 2016 reissued in 2016. I’ve already reported the amounts in the year the original payment was issued. How do I ensure the amount is not being double-reported? 
A: We have made every attempt to exclude these amounts from your current year 1099. In the event that you think we have made an error, please contact the Owner Relations line at 832-242-9575 or send a request via email at ownerrelations@sabineoil.com and we will research the matter and correct if necessary.

Q: I want to lower my tax bill. Can you withhold Federal Taxes from my checks?
A: Sabine does not withhold Federal Taxes unless required by statute.

Q: What are the Other Deductions and where do I put them on my tax form?
A: Other Deductions include your share of expenses incurred to make the products salable and to transport to market as well as your share of the State Severance Taxes assessed on production. Sabine is not able to provide any tax advice and encourages all owners to seek proper tax assistance in preparing their tax returns.