Federal, Indian, & State Mineral Royalty Compliance
Federal, Indian, & State Mineral Royalty Compliance
Oil and gas producers face a complex web of royalties and severance taxes. Depending on which sovereign entity owns the mineral rights where you extract product, you may owe state and local governments, Tribal governments, and the federal government—not to mention ownership groups—the minute your product comes out of the ground.
For companies that run lean, determining these liabilities, along with sales, use, and property taxes, can take resources away from your core business. But, failing to accurately account for these obligations may result in fines and penalties that can run into millions of dollars—or worse, loss of your lease and ability to generate income.
Gain peace of mind and avoid penalties with guidance from our professionals, and free your team to focus on your primary business mission.
The benefits of accurate royalty reporting
By bringing in professionals who understand the complexities of your industry, you can increase the accuracy of your reporting and reap additional business benefits.
Improve compliance
Too often, you may not realize you have an issue until you receive a letter from an underpaid entity. This can set off a scramble to return the company to compliance and avoid penalties, taking people away from the daily work that keeps your business going.
We can help you make compliance proactive and determine your tax and royalty liability, so no obligation is overlooked, and accurate payments are made on time.
Increase investor trust
In an investor-intensive industry, incidents of noncompliance can tarnish your reputation. Not to mention the impact late payments, interest, and penalties have on your finances.
Our professionals help with accurate royalty reporting at the time we start working together and continue to help you maintain compliance and preserve your money.
Manage risk better
With the number of entities and complexity of the severance tax and royalty rules and laws that apply to your business, a change in any of them can move you from compliance to noncompliance. Additionally, tax incentives, deductions, and credits that could reduce your liability may come and go without you being able to take advantage of them.
Our professionals stay on top of changing rules and regulations for oil and gas producers to keep you from being surprised and can help you identify and benefit from incentives and credits that can improve your bottom line.
How the process works
Our services are designed to help you become compliant, maintain compliance, and avoid interest and penalties while reducing the burden on your staff. To achieve this, we:
- Dig into your business. Using our years of experience, we look at your marketing strategy, affiliate relationships, and other business parameters that can affect your tax and royalty liability.
- Analyze your data. We take a deep dive into your supporting documents, agency reports and other filings, current calculations, processes, and other data to see how it aligns with what we’ve learned about your business.
- Make informed recommendations. We make recommendations on how to improve processes, correct or update calculations based on the latest rules, and reduce your overall risk of audit and penalties. We work with you to implement them in a way that makes sense for your business.
- Help you stay in compliance. Whether it’s helping you keep up with new and changing rules and laws, training your team to handle royalty reporting more efficiently, or accurately adjusting reporting as your business changes, we’re committed to helping your business run compliantly.
Extensive federal, Indian, and state mineral reporting experience
Our team of professionals brings nearly four decades of experience in helping oil & gas producers with severance tax and federal, Indian, and state mineral royalty auditing, reporting, and compliance.
We’ve worked in the industry, are members of industry organizations, including the Council of Petroleum Accountants Societies (COPAS), and have helped shape reporting standards.
With our one-firm approach, you can also tap into the full resources of our firm, integrating property, sales, and use tax, cybersecurity, strategy, and other key support areas.
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