ARE YOU A ROYALTY OWNER OR A WORKING INTEREST OWNER?A royalty owner shares in production revenues, while a working interest owner shares in both production revenues and development and operating expenses.
GENERAL ROYALTY OWNER QUESTIONS & ANSWERS
What are royalties?Royalties are the mineral owner's share of production as reserved in an oil and gas lease. Funds are payable on these interests and are based upon the volume and value of the production as provided in 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. (Example: If your 40 net mineral acres is within a spacing unit of 640 acres, then the result is 40/640=0.0625);
- Multiply that number by the royalty interest negotiated in your Oil, Natural Gas and Mineral Lease. (Example: If your royalty interest is 1/8, then your royalty interest in the well is 0.0625 x 1/8 = 0.0078125).
What is a division order?A division order is a document confirming ownership information in a particular property/unit and authorizing distribution of funds according to that information.
The division order does NOT represent a sale of your property or any changes to your lease.
When you sign and return the Division Order, you confirm that you agree with your owner information disclosed in the document. If you have any questions regarding the content of your Division Order, please contact Vitruvian's Land Administration department.
Where can I get a valuation of my mineral rights?Vitruvian does not provide appraisals for interests. Please contact a certified petroleum engineer, a royalty management company or a broker to obtain a valuation.
What is an Owner Number (Account No.)?An Owner Number is basically the same as an account number. You have been assigned a unique, five-digit owner number for your account. Please include your owner number in all communications with Vitruvian including voicemail and in the subject line of any emails. For royalty payments, owner numbers are located in the lower left corner of your check detail. For joint interest billings (JIB), owner numbers are located in the upper right corner of the JIB statement.
How do I change my address (COA)?Download and print the Change of Address form (COA form). Fill it out completely and have all persons listed on the account sign and date the form. Fax the completed form to (832) 458-3101 or mail it to the address listed on the COA form. For additional questions, please call (832) 458-3132.
What documentation is required for a name change?Provide Vitruvian's Land Administration department with the appropriate documents, as listed below:
- 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 executed W-9
How do I add someone to my account?Provide Vitruvian's Land Administration department with a copy of the conveyance document establishing the new ownership that has been recorded in the county where the minerals are located.
Does Vitruvian offer direct deposit (Electronic Funds Transfer) of royalty checks?Yes. Download and print the Electronic Funds Transfer form (EFT form). Fill it out completely and have all persons listed on the account sign and date the form. Include a voided check copy for the account to which you wish to have funds deposited. Fax the completed form to (832) 458-3101, or mail it to us.
How do I change my direct deposit information?Download and print the EFT form. Make any necessary changes, sign and date the form. Include a voided check copy for the account to which you wish to have funds deposited. Fax completed form to (832) 458-3101 or mail it to us.
When are royalty checks issued?Checks are issued and mailed on or about the 25th day of each month. If this day falls on a weekend or holiday, your check will be mailed out on the next business day. Direct deposits are generally made within two (2) business days after the royalty checks are issued. Oil revenue is normally paid within 30-60 days following the sales month and gas revenue is normally paid within 60-90 days following the sales month.
What is minimum pay amount?An owner must accumulate a minimum balance in their account of $25 in order for a check to be issued. Amounts under the minimum pay amount are paid annually in September.
Why does my monthly payment amount vary?Many factors may cause your payment to vary including, but not limited to, market conditions, suspended payments, adjustments (including any overpayments or underpayments), fluctuating commodity prices, regulatory or contractual changes, production volumes, seasonal conditions and routine maintenance or operating issues which may affect the volumes produced from a well during a given time period.
Why does my payment differ from others in my family?This may occur because ownership between family members is not equal, because one party has not provided Vitruvian with a Tax ID Number (TIN) or other required information or because some family members may own interest(s) in other properties in addition to those commonly owned. Other factors possibly causing variances between family member check amounts may be related to stale-dated checks, returned checks and/or address changes.
What will be the amount of my next check?Check amounts depend on well production and commodity pricing, which cannot be accurately predicted. For security reasons, we do not provide check details over the phone before you receive your check.
Why haven't I received my check?The most common reason is that your account has not reached the $25 minimum balance required to issue a check. If you have recently moved, you may want to verify that you have supplied us with your most current mailing address.
What should I do if I do not receive my revenue check?Due to potential postal delays, a revenue check may arrive a few days late on occasion. If you feel you have not received a timely check, please contact Vitruvian at (832) 458-3130. You may also sign up for direct deposit (EFT) to eliminate delays associated with the postal system.
What is the OK - State Non-Resident Withholding on my check?For producing wells in Oklahoma, companies are required to withhold tax from non-residents. The tax that is withheld is sent to the State of Oklahoma on your behalf. You must file an Oklahoma state income tax return to be eligible for a refund.
Can a check 90 days or older be cashed?Vitruvian does not place an expiration date on revenue checks. However, please contact Vitruvian's Accounting department at (832) 458-3130 prior to cashing a stale-dated check to verify the check has not been voided.
What should I do if I have questions regarding my check detail (amount, adjustments, deductions, production codes, etc)?Please call (832) 458-3130 or e-mail us at email@example.com.
When are royalty payments suspended?Royalty payments may be suspended (or held in suspense) until certain conditions are satisfied. Royalty payments may be suspended for several reasons including, but not limited to, (1) a missing Tax ID Number (TIN), (2) an insufficient address, (3) an assignment of interest, (4) a notice of death, (5) a lack of sufficient documentation/title confirming ownership, or (6) disputes involving proper ownership of interests in the minerals produced. Amounts due are accumulated and are released when the matter in question has been resolved and all related documents have been received and processed. All payments are retroactive to the date of suspension.
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, (1) a deed, (2) an assignment, (3) a court order, or (4) 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 real property records of the county where the property is located.
If you have any questions about the preparation or filing of a document, you should consult with an attorney.
What should I do when a royalty owner dies?If the deceased owner left a will (Testate) and the will was probated in Oklahoma, please furnish a copy of the Death Certificate, Letters Testamentary, Last Will and Testament and Final Decree of Distribution to Vitruvian's Land Administration department. All of the documents furnished should be recorded in the real property records of the county where the property is located.
If the deceased owner died without a will (intestate), please download, print and complete the Proof of Death and Heirship Affidavit found on this website. This affidavit must be executed, notarized and filed in the real property records of the county where the property is located.
Please provide a copy of the recorded Affidavit of Death and Heirship along with a recorded copy of the Death Certificate to Vitruvian's Land Administration department.
Please note that if the deceased owner left a will (Testate) and the will was not probated, Vitruvian will require that Administration proceedings be held to probate the will in Oklahoma prior to distribution of any significant funds (greater than $5,000 annually). Vitruvian's Land Administration department should be provided with recorded copies of the Death Certificate, Letters Testamentary, Last Will and Testament and Final Decree of Distribution which have been filed of record in the real property records of the county where the property is located.
I have transferred my interest to a trust. What do you need?Provide Vitruvian's Land Administration department with a copy of the Trust Agreement, a copy of the recorded Deed transferring the property into the trust and a copy of the IRS Form W-9 for the trust.
What information is needed when there is a change in Trustee?Provide Vitruvian's Land Administration department with a copy 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. You may also need to complete and submit a Change of Address form.
What happens when the owner of a life estate dies?The interest is transferred to the remainderman. For properties located in the State of Oklahoma, an Affidavit of Remainderman should be prepared, executed and filed in the real property records of the county where the property is located. You will need to contact an attorney for assistance in this regard.
Provide Vitruvian's Land Administration department with (1) a copy of the Death Certificate, (2) a copy of the recorded Affidavit of Remainderman, (3) a copy of the Deed identifying the life estate, and (4) the remainderman's address and Tax Identification Numbers.
What happens when a joint tenant dies?The interest is transferred to the remaining joint tenants. For properties located in the State of Oklahoma, an Affidavit of Surviving Joint Tenant(s) should be prepared, executed and filed in the real property records of the county where the property is located. You will need to contact an attorney for assistance in this regard.
Provide Vitruvian's Land Administration department with a copy of the Death Certificate and a copy of the recorded Affidavit of Surviving Joint Tenant(s).
I sent my transfer documentation in. How long will it take to hear back from Vitruvian?The amount of time that it takes to complete a transfer depends on the complexity of the issue. For information on your transfer, contact firstname.lastname@example.org or call (832) 458-3132.
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 found at www.naupa.org.
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.
When are 1099 Misc Tax Forms mailed out?Your 1099 Miscellaneous Tax forms will be mailed annually no later than January 31st. If the 31st falls on Saturday or Sunday, the IRS allows for mailing the following Monday.
Why am I being charged expenses/deductions even though I am not a working interest (WI) owner?Some costs associated with selling a product are shared by all owners including royalty owners. WI owners share in those same costs plus the cost of exploration, drilling, completing, equipping and operating a well.
If your royalty interest is being charged with certain expenses/deductions and you believe that your lease precludes your royalty interest from sharing in certain expenses/deductions, please contact Vitruvian's Land Administration department at email@example.com or call (832) 458-3132.
Why is my 1099 more than what I received?The 1099 shows the GROSS amount before taxes and other deductions as required by the IRS. In order to help you reconcile this gross amount to the total of your actual payments received, we provide the reconciliation on the back of your 1099 showing the gross amount, taxes and deductions and the net amount. The net amount should equal your total payments received for the year. If you have questions as to how this information should be presented on your tax return, please contact a tax professional.
Why is my NET more than my GROSS amount?Net can sometimes be more than the gross due to reimbursement of Severance Tax or other adjustments. In this case, you will notice a negative tax amount on the reconciliation on the back of your 1099.
What is an IRS Levy / Garnishment?A levy is a notice issued by a taxing authority or agency (Internal Revenue Service (IRS), California Franchise Board, Child Support agency, Veterans Land Board, etc.) which states that a taxpayer owes overdue taxes or payments and that proceeds or wages Vitruvian normally pays to the taxpayer should be directed to the taxing authority or agency until the levy is released.
What can I do to get my Levy/Garnishment Released?Vitruvian cannot release the levy/garnishment against your account without written notification from the agency garnishing your account. You will need to contact the agency directly. Once you obtain a Release of Levy, you may mail it directly to our Land Administration department.
GENERAL WORKING INTEREST OWNER QUESTIONS & ANSWERS
When are revenue-netted Joint Interest Billing (JIB) checks issued?If your net revenues exceed your net expenses, a check will be issued to you with your payment being made around the 25th of each month.
How do I access my monthly JIB invoice free of charge online?JIB invoices can be viewed online via Vitruvian's PDS Owner Relations Site.
What should I do if I do not receive my netted revenue check?Contact Vitruvian's Joint Interest Accounting department for further details. Our email address is JIB.firstname.lastname@example.org, or you may call (832) 458-3117 for further explanation.
What should I do to request a refund for a credit balance on my JIB account?Contact Vitruvian's Joint Interest Accounting department by sending an email to JIB.email@example.com, or you may call (832) 458-3117. Please provide your owner name, owner number and the month of the JIB statement that reflects your credit along with the amount of the credit.
How do I request a netting change?Contact Vitruvian's Joint Interest Accounting department by sending an email to JIB.firstname.lastname@example.org. Please provide your owner name, owner number and a complete mailing address.
What should I do if I'm being billed incorrectly?Contact Vitruvian's Joint Interest Accounting department at JIB.email@example.com, or you may call (832) 458-3117. Please provide your owner name, owner number and the name and location of the property along with the amended working interest for further verification.
How do I contact Vitruvian's Land Administration Department?Vitruvian II Woodford, LLC
Attention: Land Administration
4 Waterway Square Place, Suite 400
The Woodlands, TX 77380
How do I contact Vitruvian's Accounting Department?Vitruvian II Woodford, LLC
4 Waterway Square Place, Suite 400
The Woodlands, TX 77380