Is it normal for Acacia to just send a letter saying that funds will be deposited on the 25th of this month without disclosing an amount? I don’t really understand the decimal concept.
5/618.90 * 3/16 = 0.00151478 (decimal on check)
That is your share of all production. The amount deposited will be different every month because production is different as are prices for the products produced. The well will decline by about 80% the first year so your first check will be a nice one as it will be for 5-6 months of production.
I see. Thanks so much
The equation represents your share of the production according to how many net acres you have with respect to the spacing of the well and what your royalty percent is.
Net acres/spacing acres (actual) x royalty
You have five net acres. The well may have been spaced at 640, but the actual section acreage is only 618.90 due to the curvature of the earth and corrections in the surveys to account for that. You have a 3/16ths royalty which is .1875 in percentage terms.
Be sure and save your check stub statements for at least seven years just in case there are any IRS questions. The first check will be the largest since it will contain the early months of production. The next check will be for one month only.
If I understand your question, you want information about the amount that is deposited by direct deposit each month, right? I think that different companies do things in different ways but if you have direct deposit you won’t get a statement in the mail telling you how much oil, gas, etc. was produced in the month, the amount of tax, the price of the products, etc. With direct deposit you don’t know what the amount will be until it’s actually in the bank. If you were getting a check by mail you would also get a statement outlining the items I just mentioned. However, if you want a statement they are usually available online you just have to contact the company and get signed up so that you can access the information online and download statements.
Depending upon the operator, the statement for the “run sheet” which lists the wells, gross oil, net oil, gross gas, net gas, prices, etc. may or may not be emailed to you, mailed to you or available online. I prefer to get my checks by mail with the statements attached so I can check that the check actually matches the statements. I do have some that are direct deposited and I have to chase down statements which costs me more time. It just depends on what your operator offers.
1 Like
Thanks. I guess I will have to track down the statements I didn’t see an option for a check just direct deposit. I was trying to see if there was anyway to calculate how much to expect since this will be my first check after waiting 11 years.
The first check will be for about five-six months so you can get a general idea using the decimal they give you on the Division order.
You can look up the production on the Gross Production site (Gross Production)and get the gross amounts. You don’t know the pricing, but you can estimate from WTI oil prices and Henry Hub gas prices for those months. OK prices are usually a bit less. Each month will have different prices and different volumes.
The Tax site is many months behind. But you can see the September oil amounts. September is only a partial month, so October will be a full month, then usually lower after that.
This topic was automatically closed after 90 days. New replies are no longer allowed.