Replies to This Discussion

Permalink Reply by Henry on August 13, 2011 at 14:13

US Postal Service.  That's why many people call royalties "mailbox money."

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Permalink Reply by Gambler on August 14, 2011 at 5:29

When you get your first check sign up for direct deposit. Get your money sooner and you don't have to trust the Post Office.

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Permalink Reply by adubu on August 16, 2011 at 15:04

not all companies have direct deposit option avaliable

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Permalink Reply by Linda Whatley on August 18, 2011 at 8:28

Chesapeake offers direct deposit, but they also have a threshold.  Royalty payments have to be under $50,000.

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Permalink Reply by ledlights on August 18, 2011 at 17:43

Dang Linda,

 

That's one threshold I wouldn't mind bumping up against.

Here are some others that also offer direct deposit:

Cabot Oil & Gas

Devon

Encana Corporation

EOG Resources, Inc.

Exxon

Petrohawk

Samson

Southwestern Energy

XTO Energy Inc.

 

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Permalink Reply by ledlights on August 19, 2011 at 7:04

By the way - there is not necessarily a one-to-one correspondence between the availability of direct deposit and the availability of online access to your royalty records.  Some companies that provide direct deposit still only send out paper records of the production/sales stats and other companies that provide online access to your payment/production statistics do not yet provide direct deposit.

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Permalink Reply by Ken Boone on August 14, 2011 at 11:30

thanks

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Permalink Reply by ken hatcher on August 19, 2011 at 2:28

Does anyone know If Comstock does?

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Permalink Reply by ledlights on August 19, 2011 at 6:57

Last time I checked they did not.  But I believe that the producers (at least the more substantial ones) have been adding this service at a decent clip.  It doesn't hurt to request it and ask them to let you know if/when it is available - I believe most will send out an announcement about how to set it up to royalty recipients when the service is up and running.  Some will let you know if it is already in the works if you ask.

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Permalink Reply by Bacon on August 20, 2011 at 23:30

There is a service called Oildex that several companies use.  It gives you a history of your production.

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Permalink Reply by John Brewster on August 21, 2011 at 4:15

As a "newbie" here is some free advice.  Most companies cut royalty checks during the last week of each month.  You'll find they arrive around the same day each month for that reason.  You have a statutory right to be paid within a certain time after production.  That time period depends on what state you live in, and what the statue says in your state.  Generally, if the producer doesn't pay on time (unless the delay was due to a legitimate title issue),  you may be entitled to recieve up to 12% interest.  Just as a head's up, you won't receive that interest unless you ask for it.  So, I recommend you do two things as a royalty owner: (1) retain your check stubs in a file; and (2) look at every check to see what produciton months you are being paid for.

 

At the end of the year, you'll receive a 1099 from the producer.  That is your copy of a form sent to the IRS.  It states how much you have been paid in the prior year.  You'll need it for your tax return.  You'll also want to check it against your check stubs for accuracy.  Over the years, I have found mistakes.  Secondly, when you see that you are being paid more than 60-90 days after the production month (depending on your state law), write a letter to the company and request statutory interest.  They'll pay it.  Now, just as a matter of decency, I wouldn't do that to them if the amount of the payment on which interest is owed is small - say $50 or less.  It is not worth your time and would be very expensive for the company to calculate and cut a check.  But often they make mistakes and you'll get a check that has several old months payment on it.  Send that letter.  If you aren't entitled to it for some legitimate reason, they'll tell you.

I hope this is clear and helpful.

John

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Permalink Reply by Ken Boone on August 21, 2011 at 6:59

Thanks John,

 

This is very valuable information.

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