Frequently Asked Questions About Leasing
 

How does Rosebud protect my information?

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

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Why do you ask for my Social Security Number?

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% non-refundable withholding under IRS regulations.

 

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

 

How often are advance royalty and royalty payments processed? 

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.

 

What do I do if my address changes? 

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. 

 

What should I do if I am buying or selling a property under lease to Rosebud? 

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 County recorded copy -- recorded in the County and State in which the property lies.

 

Also, please provide the Name, Address, Social Security Number or Federal Tax Identification Number of the new owners.

 

Rosebud cannot transfer payments to the new owner without a recorded document.  Payments can only be issued to the owners of record listed with the corresponding County Offices.

 

What should I do if my name changes? 

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 or Divorce Decree 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 that of the IRS.

 

I recently divorced, what documentation do I need to provide to Rosebud? 

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.

 

What documentation is necessary when a Trust is created? 

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 landowner’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.

 

What documentation is necessary for a Power of Attorney? 

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.

 

What documentation is necessary if a Lessor dies with a will? 

When a Lessor dies with a will that has been admitted to probate proceedings, 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. Names, addresses and Social Security Numbers of the persons to whom the property passes under the Will

6. Copies of any appropriate recorded conveyances

 

What documentation is necessary if a Lessor dies without a will? 

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. Names, addresses and Social Security Numbers of the legal heirs

 

Note:  If the Will was admitted to probate in a different state other than 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.

 

What documentation is needed if one of the Lessors in a Joint Tenancy dies?

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.

 

What documentation is needed if a Life Tenant dies? 

When an owner of a life estate dies, Rosebud requires a copy of the Death Certificate and the names, addresses and Social Security Numbers of the individuals who own the remainder and who succeed in interest.

 

Note:  Individual state laws differ on descent and distribution. 

 

If the Lessor is a minor or is declared incompetent, what documentation is needed? 

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

 

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

 

What documentation is necessary if I file bankruptcy? 

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.

 

Please note, the information in this document is not to be construed as legal advice.  For official legal advice, speak with your attorney.