An oil and gas royalty check is accompanied by a check detail (or remittance statement) that itemizes, for each well and product, the production month, the volume sold, the sale price, the gross value, your decimal interest, any deductions and taxes, and your net payment — and reading it means understanding each of those columns well enough to confirm you are being paid correctly.
The dollar amount on a royalty check tells you little by itself. The important part is the attached check detail (also called a check stub or remittance statement), which breaks the payment down line by line — usually one or more lines per well, per product, per production month. Learning to read it is how you confirm the check is right and spot when it is not.
The layout differs by operator, but nearly every statement contains the same core columns. Once you know what they are, any statement becomes readable.
Property / well / lease ID and name: which well or unit the line is for — match it to the minerals you own.
Product code: oil, gas, condensate, or NGL (plant products) — each is usually priced and paid separately.
Production date: the month the volume was produced — royalties run one to three months behind, so this is not the pay month.
Volume: total barrels (oil) or MCF (gas) sold from the well that month.
Price: the per-unit sale price.
Gross value: volume × price — the total value of that product before your interest is applied.
Decimal / owner interest: your fractional share of the well (your net revenue interest) — the number that turns the well's value into your value.
Deductions & taxes: severance/production tax and, on many gas statements, post-production costs; then your net payment.
The statement is internally checkable. For a given line, volume × price should equal the gross value, and gross value × your decimal, minus the listed taxes and deductions, should equal your net for that line. If those do not tie out, or your decimal has changed from prior months without explanation, that is worth a call to the operator.
Two things commonly puzzle owners and are usually normal: your decimal can differ from what you expected because of the unit size (see division orders and spacing units), and post-production costs on gas can make the price you are paid on lower than the headline market price. A falling check is often just decline or price — see why is my royalty check going down.
If a well you own is producing but missing from your statement, if your decimal drops without a division order explaining it, or if payments stop entirely, the interest may be in suspense or there may be a title or ownership issue to resolve. Keep your statements — they are the record of what you were paid and the basis for questioning an operator or valuing the interest.
Buckhead Energy reads owners' check details as part of evaluating an interest, and can often explain a confusing statement. This page is educational information, not legal, tax, or accounting advice.
Why Is My Royalty Check Going Down?
Oil & Gas Encyclopedia — all terms
Educational information only — not legal, tax, or investment advice. Consult a qualified attorney, CPA, or landman about your specific situation.
The check detail itemizes, per well and product, the production month, volume sold, sale price, gross value, your decimal interest, deductions and taxes, and your net payment. The check is the total; the detail explains how it was calculated.
For each line, volume × price should equal the gross value, and gross value × your decimal, minus listed taxes and deductions, should equal your net. If those do not tie out, or your decimal changed without a division order explaining it, call the operator.
Often because of post-production costs on gas — gathering, processing, and transportation deductions can lower the price you are actually paid on. Severance and production taxes also reduce the net. On many gas statements this gap is normal, but you can ask the operator to itemize the deductions.
Royalty payments run one to three months behind production, so the production date on the statement is not the month you were paid. This lag is standard across operators.
It may be in suspense (payments held over a title, division-order, or ownership issue) or there may be a decimal or title problem. Contact the operator's owner-relations department to find out why, and keep your statements as the record.
Yes — Buckhead Energy is a direct buyer of mineral, royalty, NPRI, and ORRI interests across the United States, producing or non-producing. Buckhead Energy makes a free written offer, pays the title and closing costs, and charges no broker commission.
Buckhead Energy buys mineral and royalty interests across all 50 states and has completed acquisitions in 33 states. Buckhead Energy is a direct buyer, not a broker — we purchase mineral and royalty interests with our own capital. Buckhead Energy has been buying mineral and royalty interests since 2006. Buckhead Energy holds an A+ rating with the Better Business Bureau.
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