What are royalties?
Royalties represent the interests retained by lessors under an oil, natural gas and mineral lease. Funds are payable on these interests based upon the value of a percentage of the minerals produced from the lease.
What is clearing title?
Clearing title is the process of verifying that you own the interest. Title is the legal right or evidence of the legal right to property.
How is my royalty interest calculated?
- Royalty is calculated based on the following:
- Take the number of net mineral acres that you own within a well’s drilling or spacing unit (example: If you own an undivided 1/2 mineral interest in 80 acres, you own 40 net mineral acres.);
- Divide that number by the total acres in that well’s drilling or spacing unit; and
- Multiply this number by the royalty interest negotiated in your Oil, Natural Gas and Mineral Lease.
For example, if you own 40 net mineral acres, the spacing unit is 640 acres and the royalty interest is 1/5, then your royalty interest in the well is (40/640) x 1/5 =0.0125.
What is a division order?
A Division Order is an authorization for payment by the owner directing the operator to pay the owner in accordance with the decimal interest set out in the Division Order at the address reflected on the Division Order. The owner should always verify the accuracy of the information contained in the Division Order prior to signing and returning the instrument. The owner must provide the correct social security number/tax identification number to the operator to avoid suspension of interest and the deduction of back-up withholding as required by the Internal Revenue Service. The owner should maintain a copy of the Division Order for future reference.
When will I receive my Division Order?
Documents regarding a transfer of interest are analyzed for completeness and accuracy and then the transfer is implemented in our system. Due to the time required for title analysis, it generally takes thirty (30) to sixty (60) days before our owners receive the corresponding Division Order.
When will I receive my first check?
Checks are mailed on, or about, the 25th of each month. Revenue will be paid only after your account reaches $100.00 or as required by applicable state statute. You may make a request in writing to receive your revenue when it reaches $25.00. Click here for a Minimum Check Request Form. Owners who have less than $100, but more than $1 for the year, will receive a check in the last quarter of the year.
Why didn’t I receive a check?
Executed Division Orders must be received five (5) business days prior to the check run in order for the revenue to be released. If your Division Order is received after this time, your check will not be released until the following month’s check run.
White Oak Operating Co., L.L.C. has a minimum payment policy that defers issuance of checks until the aggregate amount due is at least $100.00 or the minimum amount required by statute or lease. You will automatically be issued a check in the month that your account has accumulated to this minimum amount. Once a year, in December, funds in excess of $1.00, without regard to the $100.00 minimum, will be released.
What is a Transfer Order?
A Transfer Order is an authorization for payment by the owner directing the operator to pay the owner in accordance with the decimal interest set out in the Transfer Order at the address reflected on the Transfer Order. The owner should always verify the accuracy of the information contained in the Transfer Order prior to signing and returning the instrument. The owner must provide the correct social security number/tax identification number to the operator to avoid suspension of interest and the deduction of back-up withholding as required by the Internal Revenue Service. The owner should maintain a copy of the Transfer Order for future reference.
Where can I find my 1099 information?
The Federal 1099 MISC forms are mailed by January 31st of each year. Separate State 1099 MISC forms will be mailed by January 31st of each year, if required.
The IRS does not require 1099* forms for:
- Royalty Income of less than $10 annually
- Working Interest Income of less than $600 annually
- Vendor payments of less than $600 annually
What can I do to report a lost, stolen or stale-dated check?
Royalty checks are mailed on or about the 25th of each month. Please allow sufficient time for delivery by the postal service before contacting us to report that you did not receive your check. The checks are void 180 days after the issue date – so please cash at your earliest convenience. We do not replace checks less than 30 days old in order to give the Post Office sufficient time to deliver or return the check to us.
If you believe your check may be lost or stolen, you may request a replacement by email, or calling (281) 876-2217. You must include your owner number, name and month of the check that you did not receive.
If you find a stale-dated check, you may return it to the address below with a written and signed request for a replacement.
White Oak Operating Co., L.L.C.
16945 Northchase Dr., Suite 1700
Houston, Texas 77060
Where can I get a valuation of my mineral rights?
White Oak does not provide appraisals for interests. Please contact a certified petroleum engineer, a royalty management company or broker to obtain the valuation. You may also contact one of these people if you wish to sell your mineral interest.
What is an Owner Number (Account No.)?
You have been assigned a unique six-digit owner number for your account. Please include your owner number in all communications with White Oak, including in all voicemail messages and in the subject line of any email correspondence. Owner numbers are located in the upper right corner of your check detail. JIB owner numbers are located in the upper right corner of your monthly JIB Invoice.
How do I change my address (COA)?
Download the Change of Address (COA) form located in the forms section. Fill it out completely and have all persons listed on the account sign and date. Fax to 281-876-2265 or mail to our Houston address listed on the COA form, Attn: Land Department. For additional questions, please contact owners.
What documentation is required for a name change?
- Copy of marriage certificate
- Divorce decree reinstating maiden name
- Other documents affecting a name change
- Certificate of Name Change with verification of Tax ID to be used
- Certificate of Merger with verification of Tax ID to be used
How do I add someone to my account?
Provide Land Administration with a copy of the conveyance document establishing joint tenancy/ownership that has been recorded in the county and state where the minerals reside by email, or call (281) 876-2082, Fax (281) 876-2025.
How do I make a change to my ownership?
The types of documents that can change ownership on a real property account include (but are not limited to): a deed, title, a court order or a death certificate. In some cases, there may be a need to file more than one type of document to complete the process. The documents must be recorded in the county where the minerals are located.
If you have any questions about the preparation or filing of a document, you may want to consult with an attorney, real estate professional or title company.
What should I do when a royalty owner dies?
The requirements of ownership transfer due to death vary by state and are dependent on whether or not the deceased had a Last Will and Testament. You may want to contact an attorney to advise you how to proceed.
What information is needed when there is a change in Trustee?
Provide Land Administration with a copy of the applicable portion of the Trust document that identifies the successor Trustee, the duties and the powers of the Trustee, and the circumstances leading to the replacement of the Trustee. Complete and submit a Change of Address form if needed.
What happens when the owner having a life estate dies?
Interest is transferred to the remaindermen. The death certificate and a copy of the deed noting the life estate should be submitted to Land Administration. The remaindermen addresses and tax identification number(s) are required as well.
I sent my transfer documentation in. How long will it take to hear back?
Where can I research unclaimed property?
Each state makes an effort to locate rightful owners of production revenues, holding the funds until the owner is found. To locate and collect unclaimed funds, please visit the National Association of Unclaimed Property Administrator’s (NAUPA) website.
How is abandoned property reported?
Each state has abandoned property or escheat laws that require the reporting of funds held for its residents. Once abandoned property has reached the state’s required dormancy period, it is paid to the state of the owner’s last known address.