﻿ Energy Domain

# Energy Domain FAQ's

Notice Last Updated: [March 28, 2023]

### What is Energy Domain?

Energy Domain is an online marketplace to buy, sell, and lease mineral, royalty, and working interests.

### What can I buy or sell on Energy Domain?

Oil and Gas Minerals, Royalties, and Working Interests

There is no fee to list. We only collect a commission upon a successful sale and the fees are equally split between the buyer and seller. Our fee schedule can be found below:

Transaction Bracket Energy Domain Transaction Fees
Greater Than Less Than or Equal to Buyer Seller Total (Buyer + Seller)
\$0 \$50,000 5.0% 5.0% 10.0%
\$50,000 \$250,000 4.0% 4.0% 8.0%
\$250,000 \$750,000 2.75% 2.75% 5.5%
\$750,000 \$7,000,000 1.25% 1.25% 2.5%
\$7,000,000 - 1.125% 1.125% 2.25%

The total transaction fee shall be calculated on a marginal basis according to the above brackets. For example, the first \$50,000 of transaction value shall incur a fee equal to 10% of that value. The next \$200,000 (\$50,000 - \$250,000 bracket) shall incur a fee equal to 8% of that value and so on. The fees in each bracket shall be summed to equal the total transaction fee. There will be a minimum transaction fee equal to \$10,000 for every listing.

Example 1 - Transaction value = \$45,000

Transaction fee = \$10,000
Buyer pays \$5,000 (50% of total fee)
Seller pays \$5,000 (50% of total fee)

Example 2 - Transaction value = \$345,000

Transaction fee = \$50,000 x 10% + \$200,000 x 8% + \$95,000 x 5.5% = \$26,225
Buyer pays \$13,112.50 (50% of total fee)
Seller pays \$13,112.50 (50% of total fee)

Example 3 - Transaction value = \$15,000,000

Transaction fee = \$50,000 x 10% + \$200,000 x 8% + \$500,000 x 5.5% + \$6,250,000 x 2.5% + \$8,000,000 x 2.25% = \$384,750
Buyer pays \$192,375 (50% of total fee)
Seller pays \$192,375 (50% of total fee)

Sellers may pay \$2,500/month for their listing to be shown as a featured listing on our website.

There are extenuating circumstances where we incur an unreasonable cost to create a listing, in which case we will pass that cost on to the seller. This is always communicated beforehand.

### Who can I contact about creating a listing?

You can contact an Energy Domain representative by clicking HERE .

### What qualifications do I need to have to register?

If you are only interested in selling assets, you will need to answer certain suitability questions upon registration, but will not be required to be an accredited investor. Buyers or those interested in both buying and selling will be required to answer suitability questions and self-certify as an accredited investor.

### What are the different ways I can list my properties?

You can elect to choose an Auction, Sealed Bid, or Negotiated Sale Format. An Auction format normally lasts two weeks and allows multiple buyers to bid on your listing. A Sealed Bid format normally lasts 3-4 weeks and allows all buyers to place a sealed bid on the platform before the end date. The seller will then have two days to choose which bids they would like to participate in the final round of bidding. Buyers then place their best and final and the seller will decide whether to proceed with a bid or decline all bids. Negotiated Sales allow the seller to field offers at any time. They can counter offer back to the buyer and vice versa. Negotiated Sales can have end dates or may be continuous listings.

### How does an Auction work on Energy Domain?

Buyers are asked to put in their Max Bid, which is the absolute maximum price they are willing to pay for the property. The bid modal automatically proxy bids for the buyer to prevent the buyer from overpaying for the asset. Auctions typically last anywhere from 1-2 weeks, but it is up to the seller to decide the length of time the auction is live.

### How does a Negotiated Sale work on Energy Domain?

A Negotiated Sale allows the seller to field offers at any time. They can counter offer back to the buyer and vice versa. Negotiated Sales can have end dates or may be continuous listings.

### How does a Sealed Bid work on Energy Domain?

A Sealed Bid listing usually takes place over a 3-4 week period and has a firm end date to collect bids. These bids are not made public. After the initial bidding period, the seller has a 2 day period to review the bids. They may either choose to accept a bid, move a bid to the second round, or decline a bid. If they move a bid to the second round, the buyers have 2 days to place their best and final bid. Once all buyers have placed bids, the seller then has 2 days to review and either accept a bid or decline all bids.

### Does it cost me anything to list?

No, there are no listing fees absent unusual high charges to process revenue data

### How do you map my properties?

We auto-map the seller’s properties and wells using ESRI after the information is added to a listing.

### Can I upload shapefiles to my listing?

If you have a shapefile for the properties you would like to sell, we give you the ability to upload to the listing yourself and bypass the auto-mapping capabilities.

### How does the closing process work?

Closing steps are outlined below
ii. Buyer is asking to pay the full commission as a form of earnest payment into the Energy Domain account (buyer and seller portion of the commission
iii. Buyer has 30 days to conduct their due diligence on a listing
iv. Buyer can report defects or elect to proceed to the settlement statement
v. Buyer and Seller E-sign the settlement statement which outlines the final terms of the deal (sale price and commission paid to Energy Domain)
vi. Seller scans in a signed and notarized copy of the final document to present to the Buyer
vii. Buyer then pays the final net proceeds (total sales price minus one half of the total commission) directly to the seller
viii. Seller is instructed to mail the original document to the Buyer
ix. Buyer confirms receipt of the document and the funds are released to Energy Domain and the Seller
x. Seller confirms receipt of funds
xi. Both Buyer and Seller are presented with closing documents

### Does Energy Domain file the conveyance or lease of record?

It is up to the buyer to record documents, however Energy Domain will provide instructions upon the closing of each transaction.

### How long does it take to list a property?

It could be less than 24 hours depending on how accurate and complete the information is. Our team is constantly monitoring the listings as they are submitted.

### How am I notified of deals that match my criteria?

Upon registration, you will be asked to Save a Search and choose your areas of interest. If any deals go live that meet your criteria, you will be notified automatically. You can also create new saved searches using the filters on the listings page.

### What happens if my auction listing does not meet the reserve requirements?

The listing will not sell. We strongly encourage every Seller to put a realistic reserve price on an Auction listing.

### What happens if my non-auction listing does not sell?

As the seller you can keep the listing on the platform for as long as you would like.

### How can I perform title due diligence on a listing I’ve won?

Vesting deed and other instruments related to the seller’s interests will be provided to the winning buyer via the view listing page. If the winning buyer would like help connecting with a title professional to perform title due diligence, we can help with that as well.

### What type of warranty is provided on a listing that I have won?

Each Seller uploads their own Deed Template that they will be using for the transaction. The warranty will depend from Seller to Seller.

### Can I purchase or create a listing anonymously?

Sellers may choose to act anonymously or publicly.

### What happens if there is a title defect on the listing?

As the Buyer, you can report a title defect directly on the Closing Dashboard. The Buyer will then have the option to Accept the adjusted/defected price, Cure title within 60 days, or Reject the defects.

### How long is the due diligence period?

Our buyer and seller agreements stipulate 30 days, however this can be altered on a deal by deal basis.

### I’m having trouble creating my listing

Please reach out to a representative by clicking HERE and we will be in touch ASAP to help you.