Frequently asked questions

Article

In this article

Frequently asked questions

Direct deposit

Q: Can I have my royalty check direct deposited to my bank account?

A: Yes. You may complete and follow the instructions listed on our form below or you may use our online system to initiate or update direct deposit. Please click on Interest Owner Relations - Online System to register or log in.

Address change

Q: How can I change my mailing address?

A: It is very important that you keep us informed of an address change, even if you are receiving funds via direct deposit into your bank account. A correct address on file will allow you to receive future XTO Energy mailings and 1099 tax information. You may email the Change of Address form to XTO-DO-BA-SM@XTOENERGY.COM or mail to the address listed below.  
You may also update your address using our online system, please click on Interest Owner Relations - Online System to register or log in.

XTO Energy Inc.
Attn: Division Order Department
22777 Springwoods Village Parkway
LOC 116
Spring, TX 77389

The change request MUST include your owner number, name, old address, new address, last 4 digits of your social security/tax identification number and signature of the account holder. If the account with XTO Energy is a joint account, both account holders must sign the

Change of ownership

Q: What happens when the interest owner of a property passes away?

A: You will need to furnish XTO with the proper documentation that outlines the disposition of the ownership of the deceased party.

If there is no last will and testament or the will is not being probated, please follow the instructions noted for completing an affidavit of heirship. See link below for instructions and document forms.

Affidavit of Heirship Guidelines

Instructions for Change of Ownership after Owner's Death (Affidavit of Heirship)

Affidavit of Heirship

If the estate is being probated, please follow the instructions below outlined in the link for probated will.

Instructions for Change of Ownership after Owner's Death (Probated Will)

States with special requirements:

  • Arkansas: Jointly owned mineral ownership only requires a copy of the decedent's death certificate to transfer title.
  • Oklahoma: Jointly owned mineral ownership only requires a copy of the decedent's death certificate to transfer title.
  • Ohio: Requires a certificate of transfer from the court to change title regardless of intestate or testate situations.

Email to:

divorder@xtoenergy.com

Mail to:

XTO Energy Inc.

Attn: Division Order Department
Loc 116
22777 Springwoods Village Parkway
Spring, Texas 77389

Phone:

+1 866 886 2613 for Division Order Department Interest Owner Relations

Fax:

+1 817 887 3502

Q: Do you have a beneficiary form?

A: No. Transfer of title for minerals or leasehold ownership requires proper recorded documentation made through a deed or other conveyance document; or, in the event the party is deceased through probate or affidavit of heirship as defined in the previous question.

If the ownership is being conveyed, see the instructions for conveyance in the link below.

Instructions for change of ownership (conveyance)

Email to:

divorder@xtoenergy.com

Mail to:

XTO Energy Inc.
Attn: Division Order Department
Loc 116
22777 Springwoods Village Parkway
Spring, Texas 77389

Phone: 
+1 866 886 2613 for Division Order Department Interest Owner Relations

Fax:
+1 817 887 3502

Q: How do I report a change of ownership, other than an owner passing away?

A: For specific instructions on how to transfer ownership, please review the instructions for change of ownership.

Instructions for change of ownership (conveyance)

Lost or stolen checks 

Q: What should I do if I do not receive a check that was issued to me?

A: If you have not received your check and have waited 15 business days from the date the check was originally mailed, please contact our office to process a void of the original check and re-issue the funds to you on the next available check write date. Once we void your check, please do not attempt to cash it. The check will be voided in our system and will no longer be honored when presented for payment.

Q: What should I do if I ever lose my check, it is stolen, or I forget to cash it before the 180 days listed on the check?

A: If you lose your check, please contact our office so that we may void and re-issue the check at our next check write date.

If your check is stolen, contact XTO immediately at our main toll free number: +1 866 886 2613.

Please note that all XTO Energy royalty checks are voided 180 days after issuance. It is important payments are cashed, regardless of the amount, prior to the 180-day mark. After 180 days, a check is considered "stale dated" and XTO Energy will no longer honor the check when presented for payment. Thus, the check will automatically be voided and re-issued on a subsequent check.

General royalty revenue questions 

Q: What are royalties?

A: Royalties are the mineral owner's proportionate share of production in an oil and gas lease.

Q: When does XTO Energy issue royalty checks?

A: Revenue checks are issued at the end of each month if your revenue reaches $100 minimum, or depending on state regulations.

Q: Will the royalty check vary?

A: Yes. Many factors contribute to your payment, such as market conditions, fluctuating commodity prices, regulatory or contractual changes and production volumes.

Q: Why am I not getting paid for the current month of production?

A: Natural gas and oil revenues are generally paid one to three months after the actual production date, in accordance with state regulations and lease terms.

Q: Can the revenue paid to me be adjusted after the check has been issued?

A: Yes. Royalty accounts are subject to adjustment, either upward or downward. Adjustments on your check detail can be identified by a positive and negative entry listed under the "Your Net" column on your revenue check. The negative entry will indicate what was previously paid to you on a prior royalty check. The positive entry right above it will indicate the amount that should have been paid to you. The difference is the adjustment to you for that specific production month. There are many factors that may result in a prior period adjustment, such as:

  • Revised production statements from the property operator
  • Revised plant statements from a plant operator
  • Corrected data received after an unexpected operational change (often due to a mechanical failure that interrupts normal operations or a major weather event)
  • Revised pricing information from third parties
  • Revised allocation statements or pricing information due to audit findings
  • Accounting errors
  • Retroactive tax incentives provided by government authorities

A discrepancy may be identified several years after the original accounting for a given production month, and because many parties have input into the accounting process, there may be multiple revisions over any period of time.

Q: Can royalty checks stop being issued to me?

A: Yes. Royalty payments are dependent on production from wells. The well(s) you are paid from may be shut down for maintenance or may stop producing. There is no guarantee on the life of a well or the amount or frequency of revenue payments.

Q: Will I be notified of adjustments to my check or if revenue is going to stop?

A: You will generally not be notified of adjustments or a stop in payment; however, there are some exceptions.

Q: How is the pricing of oil and gas determined?

A: Crude oil and natural gas are commodities, and their value is subject to daily swings in the marketplace. XTO Energy continually negotiates to get the most favorable prices possible.

Q: What is the difference between a royalty owner and a working interest owner?

A: A royalty owner shares in production revenues, while a working-interest owner shares in both production revenues and development and operating expenses.

Q: How do I calculate my decimal interest (my proportionate share of production)?

A: The basic formula for calculating your decimal interest is to take the number of mineral acres you own, divide that by the number of acres in the unit (listed as the property description on your division order) then multiply by the royalty rate in your lease. However, there are many variations in this formula. Should you have any questions, please contact our Division Order Department for more information. (Acres you own / Total acreage in the unit) x Royalty rate stated in your lease = Your Decimal Interest

Q: Where can I obtain information on the value of my mineral rights?

A: Due to the many variables involved in determining the estimated value of a property, we do not provide such valuations. However, you can contact an independent business or professional who offers this service for assistance.

Q: What is an extension payment?

A: There may be a clause in your lease that gives XTO the right to extend the primary term of your lease by making a specified payment. Extensions are at XTO's discretion, and if exercised, occur at the time your lease is scheduled to expire. They are non-negotiable.

Q: Does the disclosure of company information affect me?

A: Yes. Due to the proprietary nature of the information, XTO Energy may not always be able to respond to certain questions you may have regarding properties. Information not for general release includes:

  • Forecasts of production
  • Future development plans
  • Reserve estimates 

Q: How can I get the legal descriptions for the wells I have ownership in?

A: XTO regrets that we are unable to provide personal ownership research. Any information on file with XTO would be specific to XTO's operated production, which may not be an accurate representation of all your ownership in the area.

You might consider hiring a professional landman or attorney to undertake the research required to resolve your inquiry, or you may contact the county clerk or the tax assessor/collector's office for information regarding your ownership.

Tax questions

Q: Will I have to pay taxes on the revenue I receive?

A: Yes. Royalty interest owners receiving more than $10, and working interest owners receiving $600 or more annually will receive an IRS Form 1099-Misc by January 31 of the following year. The income reported to the IRS is your gross income prior to any other deductions or taxes. The 1099 will also list any state or U.S. withholding amounts deducted from your revenue checks. You may also receive an annual property tax bill (Ad Valorem Tax) from the county (or parish) in which your well(s) are located.

Q: What is an Ad Valorem Tax?

A: Ad Valorem taxes on minerals are levied at the county level. Ad Valorem is Latin for "according to value." In Texas (and in some other states), this tax becomes payable only when minerals are producing (as opposed to non-producing), and are billed and collected once per year. Mineral interests are classified as real property, and are taxed based on the appraised fair market value. In its simplest form, fair market value is the price a willing buyer from the open market will pay for a mineral interest within the currently prevailing market conditions.

Q: There is a "Sev/Prod Tax," deducted from my revenue check. What is this tax?

A: A severance/production tax is a state tax levied against both royalty and working interest owners on their pro rata share of oil and gas production. State governments set owner severance tax rates and levy the tax when natural resources such as oil and gas are "severed" from the earth. In addition, county governments render and collect a yearly "Ad Valorem Tax" on producing minerals in many states. Owners are usually assessed and billed annually directly from the county where the well(s) are located.

Q: Can I request for XTO Energy to withhold federal taxes from my check?

A: No. You will receive a 1099 at the end of the year to review with your tax preparer.

Q: Will I receive a 1099 every year?

A: Royalty owners who received $10 or more and working interest owners who received $600 or more in the calendar year will receive a 1099. We mail 1099s on or about January 31 of the following year. The income reported to the IRS is your gross income prior to any other deductions or taxes. The 1099 will also list any state or federal backup withholding amounts deducted from your revenue checks. The 1099 can also be used to report state income tax.

Selling mineral rights

Q: What should I do if I want to sell my mineral rights to XTO?

A: Contact the Lease Department at XTO. Your request and information will be sent to a landman for evaluation.

Unclaimed funds

Q: How do I research unclaimed funds?

A: Funds are reported to various states based on the state of the owner's last known address of record. If the address is unknown, the funds are reported to XTO's state of incorporation, which is Delaware. To claim funds reported as unclaimed by XTO, you will need to contact the state. Websites you might find helpful are: www.unclaimed.org or www.missingmoney.com.

How to contact XTO

A: A list of contacts is available.

Payout

Q. What is a Payout?

A. When a Working Interest Owner (WIO) elects not to participate in working interest activities proposed by the Operator or is Force Pooled, the Operator will carry non-consent interest and track a payout. Once non-consent WIO's share of revenue exceeds its expenditures, including the contractually allowed penalties, non-consent WIO resumes normal ownership.

While a well is in payout, non-consent or force pooled owners are entitled to receive a payout statement in order to track the status and balance of the well.

Q. Why am I receiving a payout statement?

A. Quarterly Payout Statements are prepared in the following scenarios:

  1. When interest owners elect not to participate in working interest activities and are non-consent in a well
  2. When interest owners do not reply to an election and are deemed non-consent
  3. When interest owners are force pooled or are additional interest owners

Q. How can I access my payout statements in EnergyLink?

If you already have access to the EnergyLink webpage, all you have to do is go to the Non-Op Receiver tab, and search under Non-Op Statement Search – Statements.  There you can search by owner name or number and you will find all the payout statements available.

Q. Why did I not find the payout statement for a well where I am Non-Consent or Force Pooled?

A. If you did not receive a payout statement, please contact XTOpayout@exxonmobil.com including the well name and the API number.

Joint Interest Billings

Q. Why was my account placed in netting?

A. There are different reasons for an account to be placed in netting, but the most common is because the account is in arrears due to delayed or non-payment history.

Q. How does netting work at XTO?

A. Our system automatically applies netted Working Interest (WI) revenue against the oldest outstanding JIB balance. Any revenues in excess of expenses remaining on the account will be sent to you on a monthly basis.  Note: netted monies are accumulated until it reaches a threshold of $100 for check distribution.   If you would like checks of less than $100 to be mailed to you, please send an e-mail to XTOJIBinquiry@exxonmobil.com.  Regardless, XTO will send you the revenue statement related to the original amount that was netted, even if you do not receive any check.

Q. I have a credit balance in my Joint Interest Billing account. What can I do about it?

A. We suggest using this credit to cover future JIB invoices. If the credit balance is not enough to cover the next whole invoice, you may just submit payment for the difference between the JIB and the credit balance.  If your account is in good standing, then you may also request a refund of the credit.

Q. I am not receiving a paper copy of my invoices. What do I do?

A. We strongly recommend you to register online at EnergyLink (www.energylink.com). This is a service that is free to you and there you can retrieve current and past invoices and revenue statements and print them if you want to. All you need to register is your last JIB or revenue statement. If you have issues to register, please contact the support at 1-888-573-3364 or at support@energylink.com

You can also send an email to XTOJIBinquiry@exxonmobil.com to retrieve a copy of your last Joint Interest Billing and confirm the address on file.

Q. Why do I receive an invoice some months and not others?

A. In the months you do not receive an invoice, your account might be under our “Billing Threshold”. JIB expenses less than $100 are held and an invoice is not generated.   Once your accumulated expenses reach the Billing Threshold of $100, an invoice is then generated.

Q. What is my owner number? Where can I find it?

A. It is a number associated with your account in XTO. It can be found both on the JIB invoice and Revenue Statement right above your name or the company’s name. It has 8 digits and always start with “30xxxxxx”. If you see 2 zeros at the beginning, you can disregard them. Be aware that all owner numbers changed on January/2019.

Q. Why am I being billed for wells that XTO sold to another operator?

A. Almost all allocated overhead charges are booked with a two-month lag. This includes company labor, mileage, producing overhead, allocated facility charges, etc. Occasionally, residual charges incurred by XTO could be booked in for the following 2-3 months after change in operatorship.

Q. How can I pay my invoices?

A. You have two ways of paying your invoices, by check or direct deposit. Find below payment instructions for both methods:

Check

XTO Energy Inc.
PO Box 840791
Dallas, TX 75284-0791

ACH/Wire

Bank Name: Citibank, N.A.
ABA Number: 021000089
Account Number: 30956943
Company: XTO Energy Inc.

Q. Sometimes I see different amounts in the Statement of Account and Operator Invoice. Why does this happen and what amount should I pay?

A. This is due to rounding differences caused by the system using one rounding interest percentage in the Statement of Account and another on the Operator Invoice. This produces two similar but different amounts in some cases. We suggest basing your payment on the amount shown at the top right box of the Statement of Account (first page).

Q. Why am I being billed for a well, but not paid revenues for the same well?

A. There are a few possible reasons that is happening. It could be that the well is not currently producing (e.g. has not reached completion status or is shut-in).  Another reason is the revenues may be in suspense status due to unknown address, title issues, etc. Please note that when your account is included in netting, the revenues are being paid, but instead of a check being sent to you this money is first routed to your expense account to clear the outstanding balance. If this revenue is enough to cover everything that is past due, then a payment will be sent to you with the remaining balance.

Q. Can I trust an email I received from @exxonmobil.com?

A. Yes, you can. XTO Energy is an ExxonMobil Subsidiary, so the employees use email addresses with ExxonMobil domain.