ACCOUNTS RECEIVABLE FINANCIAL SERVICES Industry Compliance Accurate Revenues

ACCOUNTS RECEIVABLE FINANCIAL SERVICES Industry Compliance Accurate Revenues & Data Professionalism & Integrity

OBJECTIVE Ø Understanding when Royalties and Rent payment requirements are due Ø Listing the different kinds of accepted payments to ONRR Ø Understand where additional resources and videos are for making payments Ø Understand what steps are taken for nonpayment/under payment 2 Industry Compliance Accurate Revenues & Data Professionalism & Integrity

WHEN TO PAY 30 CFR 1218. 50 -51 PAYMENT REQUIREMENTS Royalties are due: 30 days after the product is removed or sold from lease with an estimate additional 30 days Rents are due: On or before the 1 st day of lease year Weekend or holiday, next business day 3 Industry Compliance Accurate Revenues & Data Professionalism & Integrity

ONRR Accepted Types of Payment Per CFR § 1218. 51 (b) General instructions, you must make all payments to ONRR electronically to the extent it is cost effective and practical. Pay. gov- Made through the website, payment can be made 24/7/365 Wire-Federal Wire Network- Set up through your bank Automated Clearing House (ACH)- Set up through your bank Online Rental System- Uses pay. gov for payment however reports Rental as well Credits/On Account Balances- Overpayments, Negative 2014 reports IND Lockbox- Sent to Lockbox at the PO where bank picks up and deposits Industry Compliance Accurate Revenues & Data Professionalism & Integrity 4

Payment Must Have In order for payments to be applied in a timely manner and avoid a possible penalty, please make sure all elements are included on the payment. Ø Payor Code (If possible, do not include any characters before the payor code so the information appears correctly on our side) Ø PAD/Invoice Ø F or I indicator Ø Dist Code (if Indian) * The instructions for FW and ACH state to use an * but any character can be used to separate the information, even spaces. 5 Industry Compliance Accurate Revenues & Data Professionalism & Integrity

When Does ONRR Date Your Payment? q Pay. gov- Around 2 -3 days after payment is submitted in the system q Wire- Same day payment is made by the bank q ACH- 1 -2 days after your bank send it q Online Rental System- Same as Pay. gov q Credits- If it’s money on account from a previous overpayment then when that payment was originally made taking into consideration the above circumstances. If it’s a credit due to a negative report submitted due to adjustments, then the submission date is used as a “payment date” 6 Industry Compliance Accurate Revenues & Data Professionalism & Integrity

What Happens to Money On Account/Credits? q Can be used toward future receivables if it’s not previously earmarked to be applied elsewhere q A refund can be requested to have the money paid back q If the amounts are not used or refunded within 5 years then only a refund can be made in year 6 q If the amounts are not refunded within that 6 th year then the money will be written off and sent to Treasury and is lost 7 Industry Compliance Accurate Revenues & Data Professionalism & Integrity

Online Rental Payment System q System for paying Federal, non-recoupable leases q Terminable Rents can only be paid and reported on this system q Located in e. Commerce (EMARF to get access) q Connects Directly With Pay. gov to make ACH Debit Payment q No 2014 reporting 8 Industry Compliance Accurate Revenues & Data Professionalism & Integrity

Pay. gov Payment Information n Input Payment Information 9 Industry Compliance Accurate Revenues & Data Professionalism & Integrity

Pay. gov Submit Payment n Review and Authorize Payment 10 Industry Compliance Accurate Revenues & Data Professionalism & Integrity

Pay. gov Additional Resources May need to provide ONRR Agency ID 1417000103 -Royalty & 1417000101 -Rental (e. Commerce) As a courtesy, ONRR sends a notification that payments were rejected if the payor provides an email address on their payment through Pay. gov Industry Compliance Accurate Revenues & Data 11 Professionalism & Integrity

Debt Collection of an Invoice • Non reporting for annual Rent and/or Minimum Royalty or Interest Issued • 35 days from due date • Appeals Rights given with invoice Issued Notice of Demand • Debt Collection process starts Appeal Rights Invoice • Notification to LORs & ORO Potential Treasury Referral (PTR) • 30 Days from due date of invoice • 30 days to appeal Appeal Rights • 10 Days from due date of invoice if payment is still not received Issued Referred to Treasury • 100 days from due date of the invoice • Company must contact Treasury to clear the debt Payment 12 Industry Compliance Accurate Revenues & Data Professionalism & Integrity

Debt Collection of a 2014 • Federal Royalty Document (2014) Reporting • 30 Days from submission date of 2014 Issued Demand to Payor (DTP) • 10 Days from submission date of 2014 if payment is still not received Appeal Rights • 30 days to appeal • Payor has 30 days to appeal DTP letter Notice of Demand • Notification to LORs & ORO Appeal Rights • 80 -100 days from receipt date of the 2014 Payment • Company must contact Treasury to clear the debt Referred to Treasury 13 Industry Compliance Accurate Revenues & Data Professionalism & Integrity

Interest and Admin Costs We will assess interest on all delinquent debts as prescribed by applicable statutes and regulations. Interest is accruing and will continue to accrue until the debt is paid. This is on top of the interest Treasury will charge as well of upwards to 36%. If your debt is referred to the Department of Treasury for collection, ONRR will add-on a $436. 00 fee. It will be added to cover administrative costs incurred as a result of your failure to pay the debt. Such assessments shall be made against you unless we determine otherwise under the criteria of the Federal Claims Collection Standard (31 CFR parts 900 through 904). Once debt is referred to Treasury, payments and questions must be made to Treasury, not to The Office of Natural Resources and Revenue (ONRR). 14 Industry Compliance Accurate Revenues & Data Professionalism & Integrity

Resources q e. Commerce Online Rental FAQ https: //www. onrr. gov/reportpay/PDFDocs/e. Commerce_Online_Rental_FAQ. pdf q ONRR Payment Information Page- Instruction Videos https: //onrr. gov/Report. Pay/payments. htm q ONRR Contacts https: //onrr. gov/about/contact. htm q Debt Collection Act of 1996 https: //fiscal. treasury. gov/fsservices/gov/debt. Coll/rsrcs. Tools/debt_dca. htm q Royalty Simplification Fairness Act (RSFA) https: //www. govtrack. us/congress/bills/104/hr 1975/text of 1996 15 Industry Compliance Accurate Revenues & Data Professionalism & Integrity

Review/Summary Ø Payment Requirements – 30 CFR 1218. 50 -51 • • – Accepted payments • • • – System for paying Federal, non-recoupable leases Located in e. Commerce Connects Directly With Pay. gov to make ACH Debit Payment No 2014 reporting Pay. gov • • • – Pay. gov Fed-Wire ACH Online Rental system Credits Online Rental Payment System • • – Royalties: 30 days after removed or sold, with estimate additional 30 days Rents: On or before the 1 st day of lease year. ACH payment Free Open 24/7/365 Debt Collection • • Demand letters are sent to Payors for non/under payment NOD letters are followed up to LOR & ORO Referred to Treasury for further collection Once referred to Treasury all payments and questions must be made to Dept of Treasury 16 Industry Compliance Accurate Revenues & Data Professionalism & Integrity

QUESTIONS? Thank You!!! Industry Compliance Accurate Revenues & Data Professionalism & Integrity