Transfer DOI Between Owners

This utility will transfer interests from one owner to up to 20 other owners. You can transfer all of an owners interests, or just his interest in a specific well. Suspense and History can also be transferred to the new owners.

CAUTION: We do not have a way to reverse a transfer that is processed with this utility. We highly suggest creating a backup prior to completing a transfer and fully auditing the results.

Filling out the window
Transferring only a portion of an interest
Re-issuing a check to a new owner
Transferring to more than 20 people
Can't Transfer because it says a check was created and needs voided first
Transferring a Net interest with a suspense balance to a JIB Owner
Transferring a JIB interest with balances to a Net Owner
Transferring an interest that has prepayments applied

Original Owner
Select the owner whose interests should be transferred.

Transfer All Interests/Interest in a Specific Well
Select whether you wish to transfer this owner's interests in all wells or just for a single well.

Interest Types to Transfer
Select what type of interest you want to transfer from the original owner.

Owners 1-20
Select up to 20 owners who should receive the interest, and what percentage of the original interest they should receive. The total must add up to 100 percent. As an example, if you were equally splitting an owner who had a 20% interest between two new owners, they would each be entered as 50%, since they're each getting half of the original existing interest. All owners receiving a transferred interest must have a record in the Owner Information .

Transfer Owner and Suspense History
Lets you choose whether past history files should be transferred in addition to current division of interests. If selected, you can choose a run at which the transfer should begin. Any runs that have been processed after that (within the same group) will have their data transferred as well. After transferring the data, you will receive a report showing the original and new percentages and data. If you would like to transfer all of the suspense history, regardless of the run number and include beginning suspense balances, select All Past Data from the Run No. list.

Clear
This button allows you to clear all the owners and their percentages from the fields on this window.

Only need to transfer a portion of an owner's interest.

If you only want to transfer part of an owner's interest you can include the original owner's name in the bottom also along with the percentage of interest that they should continue to hold. So if you are only transferring 50% to a new owner, both the new and old owner would be listed at the bottom. Each would have 50%.

Top

A check is returned to you and now needs to be issued to a new owner. The Division of Interest will also need to be changed to this new owner as of the run that created this check.

First you can void the check in the Check Register. This will put the amount of the check into suspense. Then transfer the interest from the old owner to the new with this window. Choose either all wells or just a specific interest depending on the situation. You will need to mark the option at the bottom to "Transfer Owner and Suspense History." You only need to choose the run that the original check was created on if the owner did not have any suspense prior to that run. If suspense had been carried forward from previous runs you will have to choose a prior run far enough back to include all of the suspense. The suspense, which should be the amount of the check, will be released to the new owner when the next run is closed.

Top

Do you need to transfer the interest to more than 20 people?

In this situation you can enter 19 of the people that you are transferring the interest to with the percentage that they should get of the original owner. Use the original owner for the 20th person and give him the percentage that the remainder of the owners should be getting. Once this original transfer is done you can then transfer again from the original owner to the rest of the owners for the percentage that they should get of what is left of his interest after the first transfer.
**If you were transferring to 22 people with equal percentages, the first transfer would give each of the 19 owners 4.5454545% and the original owners' percentage would be 13.6363635%. For the second transfer the remaining three owners would each get 33.33% each. You can then review the interests in the Division of interest and each of the 22 people will have an interest of 4.5454545%.

Top

Can't Transfer because it says a check was created and needs voided first.
If a message appears saying that "Some of the owner history being transferred created a check which must be voided before the history can be transferred." then the software thinks that at least one check was created for this owner during the period that you are trying to transfer.

You can look to see if any checks were created by viewing the "Print Check Register Report" in SherWare. View the report for a date range starting with the date that was used on the oldest run you are trying to transfer and ending with today. Use the owner in question as both the first and last owner so it only reports on them. Do any checks show up when you preview the report?

If checks do show up then that is the reason it is not letting you do the transfer. It is not transferring because if it did then the check would have actually been sent to the original owner, but the history for that check would be associated on the new owners 1099 and historical reports. This would be a problem with your audit trail because it would appear that the check was sent to the new owner when it was actually sent to the original owner. If the check was never cashed you can void it, so that the amounts are added to suspense, and then do the transfer again. The suspense will then be moved to the new owner and released to him on the next run closing. If you cannot void the check then I suggest doing the transfer as of a run that took place after this check was created so you do not cause a discrepancy. This will leave the history associated with the owner that actually received the check.

Would this owner have had a check created from another group or well that did not affect the interests that are being transferred during the desired period?

If the owner did receive a check during this time period but it was for a different group or different well then it will still not let you do the transfer because it is picking up this check. We don't have a good way around that. If this is the case then you will not be able to transfer the suspense that was created prior to this check. You can transfer everything after that check but not prior to it. After you transfer what you can, you will have to clear the remainder of the suspense for the owner under the utilities menu and then add it back in for the new owner under the maintain menu on the suspense beginning balances/adjustments window. You can print off the suspense report prior to clearing the suspense balance so you know how much to add back in for the new owner. The detail of the suspense will not report when these amounts are released but it will at least allocate the correct amounts to the new owner.

Transferring a Net interest with a suspense balance to a JIB Owner:
The option to Net or JIB an interest is determined on the Interest level, so the new interest will retain the same settings as the original interest had. The only time this might be an issue is if you are transferring to an owner that already has an interest in the well and it is marked as a JIB interest. If you have this situation, then manually check the Division of Interest window to make sure that it keeps the setting you need for this situation. If you leave the suspense balance as is, it will net from future revenue until it is fully cleared while any new expenses will be handled with the JIB processing. If you want the balance to be handled with the normal JIB Processing then you will need to manually adjust the totals the same as described in the Net vs. JIB topic under Help by Subject.

Transferring a JIB interest with balances to a Net Owner:
The option to Net or JIB an interest is determined on the Interest level, so the new interest will retain the same settings as the original interest had. The only time this might be an issue is if you are transferring to an owner that already has an interest in the well and it is marked as a Net interest. If you have this situation, then manually check the Division of Interest window to make sure that it keeps the setting you need for this situation. The JIB Balances will not transfer to the new owner. If they need transferred you will need to manually adjust the totals the same as described in the Net vs. JIB topic under Help by Subject.

Transferring an interest that has prepayments applied:
Prepayments do not transfer with this utilility. You will need to manually remove the prepayment from the original owner and apply it to the new owner as if it were a new prepayment. If you do not do this the balance will be left hanging. If the original owner ever obtains another interest in this well then it would apply to the prepayment at that time.