Frequently
Asked Questions
about leasing.

Rosebud Mining Company has come a long way since its founding. Much of the successful growth Rosebud Mining Company has achieved is attributable to establishing good relationships with our Lessors. We value our partnership with you and want you to have a positive leasing experience.

Here, you'll find answers to some frequently asked questions about the leasing process and the actions we ask that you take in the event your situation changes.

A:

Rosebud values your right to privacy and will not release your royalty information without your explicit written consent.

 
A:

Social Security Numbers or Tax Identification Numbers are requested by our Land Agents upon lease signing to enable Rosebud to meet Internal Revenue Service (IRS) regulations.

The IRS requires Rosebud to report the Social Security Numbers or Tax Identification Numbers of all of our payees on IRS Form 1099 each year. Without this information, your advance royalty and royalty payments will be subject to 28% withholding under IRS regulations.

After signing your lease, you will receive IRS Form W-9 in the mail for completion. The IRS requires you to complete this form and return it to Rosebud.

 
A:

Checks are generated on a monthly or yearly basis depending upon the terms of your specific agreement. Please refer to your Lease Agreement for further terms of payment.

 
A:

Please furnish the following information to Rosebud in writing if your mailing address changes:

  1. Name
  2. Old address
  3. New address
  4. Lease Document Number (located on the front of this brochure)
  5. Daytime telephone number
  6. Signature

Without an updated address, payments and correspondence may not reach you in a timely manner, if at all.

In the event that your address changes and Rosebud is not notified and cannot locate you, monies due will be put into an escrow account. After three years, the monies will be forwarded to the unclaimed property department of the state where the property is located.

 
A:

Please speak with your attorney prior to signing a Listing Agreement or other sales documents pertaining to the purchase or sale of a property subject to Rosebud's lease.

After the transaction is complete, please notify Rosebud in writing of the change in ownership and furnish a complete copy of the document conveying ownership. This must be a copy recorded in the county in which the property lies.

Also, please provide the Name, Address and Telephone Number of the new owner(s).

Rosebud cannot transfer payments to the new owner(s) without a recorded document. Payments can only be issued to the owner(s) of record listed with the corresponding county offices.

 
A:

When a marriage, divorce, or other event occurs resulting in the name change of the Lessor, please furnish Rosebud with a copy of the Marriage Certificate, Divorce Decree, document reinstating a maiden name, or other official documentation evidencing the name change.

Also, please submit a copy of the Social Security card showing the name as changed with the Federal government/Internal Revenue Service. This insures that Rosebud's records match those of the IRS.

 
A:

Please notify Rosebud in writing and provide a complete copy of the Divorce Decree, including the property settlement documentation and copies of the recorded conveyances, if any.

 
A:

When a trust is created, please provide Rosebud with copies of the Trust Agreement and the recorded conveyance to the trust, as well as the Tax Identification Number of the trust if different from the Lessor's Social Security Number.

When a trust is dissolved, please provide Rosebud with a copy of the Instrument of Dissolution and appropriate recorded conveyances. For a change in trustee, provide a copy of the document that appoints the successor trustee.

 
A:

When a Lessor is represented by an Attorney-in-Fact, please provide a recorded copy of the Power of Attorney document to Rosebud to establish the extent of power given to the Attorney-in-Fact by the Lessor.

 
A:

When a Lessor dies with a Will, please furnish Rosebud with as many of the following documents as appropriate:

  1. Death Certificate
  2. The probated or recorded Will
  3. Order admitting the Will to probate
  4. Name, address and telephone number of the estate's attorney
  5. Name, address and Social Security Number of the person(s) to whom the property passes under the Will
  6. Copies of any appropriate recorded conveyances

Note: If the Will was admitted to probate in a state other than the state where the coal property is located, Rosebud may require all of the above and Ancillary Probate in the state where the coal property is located.

 
A:

When a Lessor dies without a Will, please furnish Rosebud with as many of the following documents as appropriate:

  1. Death Certificate
  2. Letter of Administration
  3. Affidavit of Heirship - should be recorded in the county in which the property is located
  4. Name, address and telephone number of the estate's attorney
  5. Name, address and Social Security Number of the legal heir(s)
 
A:

Rosebud requests a copy of the Death Certificate. Please furnish the name, current address and Social Security Number or Federal Tax Identification Number of the successor(s) in interest.

 
A:

When an owner of a life estate dies, Rosebud requires a copy of the Death Certificate and the name, address and Social Security Number of the individual(s) who own the remainder and who succeed in interest.

Note: Individual state laws differ on descent and distribution.

 
A:

When a Lessor is a minor or is declared incompetent, please furnish the Letter of Guardianship issued by the court.

When a minor reaches the legal age, Rosebud requests a copy of the minor's Birth Certificate.

 
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Rosebud requests copies of the court order appointing the Bankruptcy Trustee, if appropriate, as well as the recorded conveyances and the court order confirming any sales. For a Chapter 11 or Chapter 13 Bankruptcy, a copy of the order to consummate the Plan of Reorganization is requested.

Note: the information in this document is not to be construed as legal advice. For legal advice, please speak with your attorney.