Swallow Group, LLC

The vast experience of our principals and our staff in the oil and gas business, and our professional, hands-on approach are two aspects that make our company one of a kind. We are capable and comfortable serving your needs with regard to your oil and gas interests.  While we can negotiate with oil and gas companies, we can also sit down with you or your family members and bring clarity to the complex world of the oil and gas business. 

Leasing - The Swallow Group enjoys longstanding relationships with people involved in oil and gas businesses throughout the country. We are able to utilize these relationships in addition to industry information to ascertain current activity and interest, as well as appropriate lease terms, in particular geographic areas. This wealth of knowledge gives our company a leg up in negotiations. Our goal is always to obtain the most favorable lease terms for mineral interest owners while also encouraging exploration and production, thereby maximizing the benefit for our clients.

Execution of Division or Transfer Orders – Oil and gas ownership requires verifying proposed division orders or transfer orders against available title opinions and against the terms of the lease. As a rule, we require a lessor under any new lease to provide us with the applicable leasing and division order legal title opinions.

Please note that it is absolutely crucial that the files related to any oil and gas interests be preserved until they can be reviewed by a professional even if they are considered "quite old." Often those old files will contain legal documents that increase or decrease an owner's interests. Those documents may be otherwise unavailable from any other source, or a search for unknown documents might be prohibitively expensive. When old files have been discarded or destroyed, it significantly limits our ability to verify that our client's interest is being correctly reported.

Once the proposed division order or transfer order accurately reflects the client's interest, it is promptly executed and returned so that our client's interest may be put into pay status. Frequently, it is necessary to maintain a series of communications with a paying oil company to ensure that its records accurately reflect the interests that our clients' own.

Bookkeeping - The Swallow Group can receive, deposit and monitor monthly oil and gas income payments to ensure that our clients are being paid correctly. We utilize sophisticated oil and gas computer software, downloading data directly from payors. This comprehensive software enables us to quickly and efficiently verify the accuracy of payments received by our clients. We carefully monitor clients' income according to their interests in each property, the price obtained for the product, and terms of the lease. We systematically compare monthly income with division orders as well as taxing entities' records to ensure that each client consistently receives accurate royalty payments for all interests owned.

Reporting to Our Clients – Reports can be customized and provided to our clients on a regular basis to show income and production in almost any manner such as by payor, county, lease, or well. Many of our clients appreciate being able to compare their income, expenses, taxes and distributions on a monthly, quarterly, or semi-annual basis.

Payment of Property Taxes – Each year ad valorem property taxes must be verified and paid, or risk foreclosure on the interests. Many counties have multiple taxing entities that invoice for ad valorem taxes. We compare tax invoices to our land records to ensure that all invoices are received, are correct, and are timely paid.

Federal Tax Preparation Support - Our meticulous year-round monitoring and record keeping makes tax preparation easier. Year-end reports can be compared quickly and easily to Form 1099s received from oil and gas payors, and promptly submitted to accountants for preparation of state and federal tax returns. Quarterly estimates based on income and expenses as well as prior years' numbers are made to minimize any surprises. As a general rule, we continue to utilize the services of the CPA or accounting firm that was used prior to our engagement. If the client does not already have a CPA, we have a number of professionals in the west Texas area well versed in oil and gas accounting, in whom we have the utmost respect.

Geography – The Permian Basin is the name of one of the most productive oil and gas regions of the country. It stretches from the central part of Texas through a large part of New Mexico. Our offices are located in downtown Midland, Texas, the center of the Permian Basin in terms of both geography and activity. Our active participation in the business community of Midland provides to our clients the benefit of our personal and regular contact with oil company executives, landmen, and exploration personnel. Frequently, we can meet face to face with people with whom we need to communicate. Often a quick phone call can prevent or solve problems.

All of our services, from leasing to bookkeeping, are performed in our offices in Midland. While many trust companies as well as oil and gas management companies outsource various responsibilities to third party providers, we have secured the experienced personnel to allow us to perform all our services under one roof (other than federal income tax preparation). Our clients can be assured that answers to their questions will be promptly provided by personnel familiar with their situation and familiar with the industry.