Questin about royalty payment

I received a royalty check today Will I receive checks each month? There was no explaination with the check

It depends on the wells and the amount, but generally yes. If the check you received was well over $100 and for production on wells (and not just a lease bonus or shut-in payment), then you should receive another next month for something probably less than the first check. Sometimes dramatically less than the first check, since the first check sometimes has several months of production.

If the check was for under ~$200, you might not receive the next one until your account accrues over $100 in payments again which may be a few months. Some people only get one check a year for $10, for example. Usually $100 is the threshold or yearly, whichever comes first, although you can request it to be lowered to something like $25 on the division order.

1 Like

Be sure and save the statements that came with the check. You need to save them for seven years for IRS purposes. If you do not have a statement that gives the well name, the date of production, amounts, prices, etc. then it might be available through an online service that is listed on the check paperwork. You need to download those statements!

This topic was automatically closed after 90 days. New replies are no longer allowed.