Learn
Guides for Texas royalty owners, by situation
Situation 1
I just inherited minerals
Situation 2
My check changed or stopped
- 7 minute readTexas late royalty payment interest (§91.402 and §91.403)The 60 and 90 day deadlines, the interest rate, and how to work out what you are owed.Read the guide
- 7 minute readPost-production deductions explainedGathering, compression, treating and processing: what they are and when to ask.Read the guide
- 6 minute readRailroad Commission disposition codes explainedWhere your gas went, code by code, and why a code change can change your check.Read the guide
Situation 3
I want to read my stub
- 8 minute readHow to read a royalty check stubEvery box on the stub, what it means, and the five checks that take ten minutes.Read the guide
- 7 minute readWhat the codes on a royalty stub meanBBL, MCF, NRI, ORRI and the rest: a searchable glossary and a stub you can tap.Read the guide
- 7 minute readHow Texas oil royalties are calculatedVolume, price, decimal and tax on one real month, with the arithmetic marked up.Read the guide
- 7 minute readWhat your decimal interest means, and how to check itWhere the long decimal comes from and how to rebuild it from your lease and the unit.Read the guide
- 6 minute readOil, casinghead gas and gas well gasThe Railroad Commission's words for the gas on your stub, and why they matter.Read the guide
Situation 4
It is tax season
Free tools
Try it on your own numbers
- Why did my check go down?Why is my royalty check lower?Splits the drop from last check to this one into volume, price, deductions and your share.
- What should each check have been?Lease royalty estimatorTwo years of monthly royalty for a Texas lease and your decimal, with the date each payment was due.
- What should my check be?Royalty calculatorVolume, price and decimal to an estimated check, with costs and tax.
- Is my oil price fair?Oil price checkYour stub's oil price against the month's WTI average, with the gap in dollars.
- Is my gas royalty right?Gas royalty calculatormcf to MMBtu, residue gas and plant products, and where each cost comes off.
- Was I paid late, and what is owed?Late payment interestTexas, Oklahoma and North Dakota deadlines and the interest a late payment earns.
- What are my mineral rights worth?Mineral rights valueLast-year income, a decline curve and a value range for your Texas interest.
- Is my decimal right?Decimal interest calculatorRoyalty fraction times net acres over unit acres, for royalty, override and working interests.
- Was too much tax taken out?Severance tax checkCompare the tax on your stub with the Texas rate: 4.6% of oil, 7.5% of gas.
- Does my 1099 match my checks?1099 royalty reconcilerYour twelve checks against Box 2 of the 1099-MISC, with the missing check circled.
Looking up one word
Search the stub glossary
30 codes and terms from royalty stubs, each with a plain meaning and a source: BBL, MCF, NRI, ORRI, suspense, casinghead gas and the rest.
FAQ
Questions people ask
Where do I start if I just inherited mineral rights in Texas?
Start with the inherited minerals page, which walks through finding out who pays the lease and what paperwork operators ask for. Then read what a division order may contain and the guide to your rights as a royalty owner, which covers payment deadlines, interest and what a check stub must show.
Why did my royalty check go down?
A stub multiplies the lease's volume sold, the price and your decimal, then subtracts taxes and any deductions. A lower check means one of those moved, or the check covers a different month. Compare the volume with the Railroad Commission record, the price with the WTI or Henry Hub monthly average, and the decimal with your division order.
Where does the data behind these guides come from?
Production and disposition come from the Texas Railroad Commission, which runs two to three months behind and revises recent months. Prices come from the U.S. Energy Information Administration. The law is quoted from the Texas statutes, and every guide lists its sources at the end.
Rather have us do the checking?
Upload a statement. We compare every month with the Railroad Commission record and give you the questions to ask.