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.
Q:
How does Rosebud protect my information?
A:
Rosebud values your right to privacy and will not release your
royalty information without your explicit written consent.
Q:
Why do you ask for my social security number?
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.
Q:
How often are advance royalty and royalty payments
processed?
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.
Q:
What do I do if my address changes?
A:
Please furnish the following information to Rosebud in writing
if your mailing address changes:
- Name
- Old address
- New address
- Lease Document Number (located on the front of this
brochure)
- Daytime telephone number
- 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.
Q:
What should I do if I am buying or selling a property currently
under lease to Rosebud?
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.
Q:
What should I do if my name changes?
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.
Q:
I recently divorced, what documentation do I need to provide to
Rosebud?
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.
Q:
What documentation is necessary when a trust is created?
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.
Q:
What documentation is necessary for a power of attorney?
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.
Q:
What documentation is necessary if a lessor dies with a
will?
A:
When a Lessor dies with a Will, please furnish Rosebud with as
many of the following documents as appropriate:
- Death Certificate
- The probated or recorded Will
- Order admitting the Will to probate
- Name, address and telephone number of the estate's
attorney
- Name, address and Social Security Number of the person(s) to
whom the property passes under the Will
- 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.
Q:
What documentation is necessary if a lessor dies without a
will?
A:
When a Lessor dies without a Will, please furnish Rosebud with
as many of the following documents as appropriate:
- Death Certificate
- Letter of Administration
- Affidavit of Heirship - should be recorded in the county in
which the property is located
- Name, address and telephone number of the estate's
attorney
- Name, address and Social Security Number of the legal
heir(s)
Q:
What documentation is needed if one of the lessors in a joint
tenancy dies?
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.
Q:
What documentation is needed if a life tenant dies?
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.
Q:
If the lessor is a minor or is declared incompetent, what
documentation is needed?
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.
Q:
What documentation is necessary if I file for bankruptcy?
A:
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.