JIB Payments Management:

Clarity oversees Joint Interest Billing (JIB) payments, ensuring accuracy, timeliness, and compliance with agreements among working interest partners. We streamline the process, handling expenses related to drilling, production, and operations efficiently.

Monthly Accounting and Reporting:

Our team provides meticulous monthly accounting services, offering detailed reports on revenue, expenses, production volumes, and cost allocation. These reports are tailored to meet the specific needs of each client, enabling informed decision-making and financial transparency.

AFE (Authorization for Expenditure) Committals and Tracking:

We manage AFEs, tracking and monitoring expenditures against approved budgets and forecasts. This includes comprehensive tracking of committed and actual expenses, facilitating informed decision-making and cost control.

Future Outlook Analysis:

Clarity conducts in-depth analyses to provide insights into future investment opportunities, potential risks, and market trends. We assist clients in forecasting cash flows, evaluating investment returns, and identifying areas for optimization within their working interest portfolios.

Year-End Accounting Needs:

At year-end, our services extend to comprehensive financial reporting, reconciliations, and compliance with regulatory requirements. We ensure accuracy in financial statements, tax implications, and adherence to industry standards.

Asset Performance Monitoring:

We continuously monitor and evaluate the performance of working interests, identifying opportunities for optimization and improvement. This includes assessing operational efficiencies, production enhancements, and cost-saving strategies.

Compliance and Regulatory Oversight:

Our team stays updated with evolving regulations and compliance standards within the oil and gas industry. We assist clients in ensuring adherence to regulatory requirements, mitigating compliance risks, and implementing best practices.

Partner Communication and Coordination:

Clarity facilitates clear and consistent communication among working interest partners, addressing inquiries, sharing financial information, and fostering collaborative decision-making.

Risk Management and Mitigation:

We proactively identify and mitigate risks associated with working interest management, including financial, operational, and regulatory risks. Our strategies aim to protect assets and optimize returns for our clients.

Customized Consulting Services:

In addition to core services, we offer tailored consulting services, assisting clients in strategy development, asset valuation, portfolio optimization, and performance improvement initiatives.

In managing royalties, Clarity meticulously reconciles the provisions within oil and gas leases with the actual disbursed royalties. Our approach involves cross-referencing field operations, raw operator data, and publicly available information from entities like the Texas Railroad Commission and Texas Comptroller.

Precision in Royalty Payments:

Ensuring accuracy in royalty payments is a fundamental aspect of our management strategy. The terms outlined in the lease profoundly influence how royalties are remitted by oil companies.

Critical Factors in Royalty Determination:

Elements such as metering, measurement, volume calculations, methodology, quality analysis, and pricing significantly impact the accuracy of royalty payments.

Comprehensive Royalty Management Services:

Our suite of Royalty Management services includes:

Preliminary Evaluation: Thorough assessment of lease provisions and initial analysis.

Lease Summary (Royalty): Detailed summary outlining royalty-related clauses and obligations.

Check Detail Maintenance: Accurate and consistent record-keeping of royalty payments.

Division Order Review: Scrutiny of division orders to ensure accuracy of decimal interests.

Monthly Reporting and Analysis: Maintenance: Managing and organizing data related to field operations.

Clarity provides comprehensive monthly reports detailing revenue per operator and per well. Our reporting includes specific deduction costs on a per-operator and per-well basis. These reports offer detailed insights into revenue streams, costs, and deductions, empowering informed decision-making.

Strategic Insights and Recommendations:

Based on our analysis, we offer strategic insights and recommendations to optimize revenue streams, minimize deductions, and improve overall royalty performance.

The ultimate leverage in negotiation lies in the ability to walk away. While the lease outlines the guidelines for exploration methods and royalty payments, a one-size-fits-all approach isn't suitable. Clarity tailors each negotiation specifically to the client and their acreage, offering three primary lease levels:

Lease negotiation is a critical and delicate process. Clients of Clarity benefit from over 15 years of experience, enabling us to identify and advocate for maximum compensation and crucial lease terms.

Negotiating pipelines poses substantial challenges for surface owners. Timing and expertise play vital roles. Clarity harnesses its experience to benefit the client, skillfully advocating for optimal compensation, ideal locations, and favorable contract terms.

Payments (Royalty and Non-Royalty)

A breakdown of the Oil & Gas Lease emphasizing the Lessee’s responsibilities regarding metering, measurement, volume assessments, calculation methods, quality analysis, pricing, and deductions.

A breakdown of the Oil & Gas Lease highlighting the Lessee’s obligations and entitlements outlined in provisions like crucial timelines, ongoing development, pooling, and retained acreage, among others.

Clarity ensures precise and uniform documentation of royalty payments, alleviating the onerous task for royalty owners to reconcile extensive data for accurate payment validation. This includes confirming proper royalty payments, adjusting for out-of-period discrepancies, and managing deductions and reimbursements for severance taxes.

Clarity's experts meticulously scrutinize all division orders furnished by Operators/Purchasers, ensuring the precision of decimal interests through a comprehensive examination of available ownership data. This assessment includes, among other documents, deeds, title documents, title opinions, leases, and unit designations.

Clarity professionals possess expertise in navigating intricate negotiations and settling disputes effectively.

We assist our clients in identifying and resolving lease breaches, aiming to mitigate the need for litigation whenever feasible.

Clarity conducts meticulous title analysis and research, employing a strategic approach. Our comprehensive research methodology delves into title documents, deeds, and historical records to provide clients with clear insights into property ownership, rights, and potential encumbrances. This strategic analysis forms the foundation for informed decision-making and asset management.