Please be advised a print error occurred on the 2017 1099 Misc form which was sent to owners. The line "Total Amount Reported to the IRS" may be incorrect and the correct total amount should be the summation of Lines 1-16 on the 1099 form. Lines 1-16 are correctly displayed and the IRS has the correct information. If you need a corrected 1099 form before the published updated form is available on the website, please call 303-309-1950.

Crestone recently paid the final ad valorem tax invoice related to the 2016 tax-year, which were billed by the various Colorado county assessors where the producing properties are located. During 2016, the predecessor operator made ad valorem tax withholding estimates, which were deducted from 2016 revenue checks with those withheld funds being remitted to the county assessors in April of 2018 upon their due date. After review of final payment, it was noted the previous operator's estimates were significantly lower than the actual payments due and the additional tax difference was ultimately paid by Crestone on your behalf. Crestone has billed-out the remaining 2016 ad valorem taxes due for each owner's proportionate share of the higher tax obligation, which will be deducted out of the current and future revenue checks, as necessary. Crestone, as current operator, has adjusted the process to provide more precision on how ad valorem tax estimates are calculated and withheld to alleviate any significant differences going forward.