Tug Hill Operating is committed to providing a high level of professional service to all landowners and stakeholders. The Company values its landowner relationships and strives to answer all inquiries in a polite, timely, and accurate manner. As you can imagine, we receive many requests each day and your patience is greatly appreciated.
Please utilize the information on this site to answer your most commonly asked questions. If information on this site does not address your concerns, please contact us with your name, owner number, a brief description of the reason for your inquiry, and a phone number where you can be reached. Please go to the Contact Us page for our contact information, and we will respond to your request as soon as possible.
For your protection and to prevent unauthorized access to your account information, we can only answer requests from the actual owner or the owner’s legally recognized agent (trustee, attorney-in-fact, etc.) Documentation verifying your right to act as an agent (trust agreement, power of attorney, etc.) is needed prior to your request being processed. All change requests must be submitted in writing and signed by the owner.
Royalty Direct Deposit
ACH is an electronic payment system that is used to process direct deposit transfers. This is available to you at no cost, allowing Tug Hill to make deposits into, but not withdrawals from, your bank account. This system eliminates your wait time for royalty payments because they are directly deposited into your bank account.
Tug Hill will process payments on or about the 25th of each month (see Owner Forms for more details). Should you have questions or concerns, please contact our Owner Relations Department via our Contact Us page (please select “Owner Relations” from the Support Category).
How do I change my address for my check?
A Change of Address form can be downloaded HERE.
What is the purpose of my Vendor Number?
You have been assigned an exclusive four or five-digit vendor number to distinguish you from our other interest owners. When communicating with us, please include your vendor number. Your vendor number can be found in the upper-left hand corner of your revenue detail or JIB statement.
When are revenue checks mailed?
Tug Hill normally generates and mails revenue checks on the 25th day of each month. If your account is in a pay status and if the account has reached your minimum pay status, a check should be issued. If you have not received your check by the 15th of the following month, please call us at (800) 652-8599 or send an email to email@example.com. Please allow up to two weeks for delivery of your check. Checks are mailed via USPS from Fort Worth, Texas. (Any ownership changes received after the 10th of the month will be processed during the next month’s business.)
Are there scenarios where my royalty check would not be mailed?
We will generate and mail a revenue check to you once your balance exceeds $25. Amounts over $10 but under your minimum pay amount are paid annually. Occasionally, payments are held due to matters which create uncertainty as to ownership, such as a notice of death, change of address, transfer of property, assignment of interest or legal dispute. Payments due are accumulated and released when the matter affecting ownership has been resolved.
What should I do if my check is lost, stolen, damaged or older than the 90 days listed on the check?
If your check is lost, stolen or more than 90 days old, contact the Owner Relations hotline at (800) 652-8599 (note stolen checks require written notification). You will be advised of our void process, after which we will reissue the check on our next revenue check write.
Why is backup withholding deducted from my revenue check?
A valid Tax Identification Number (TIN) or Social Security Number (SSN) must be provided to us for reporting and identification purposes. If it is not, the Internal Revenue Service requires withholding of 28% of all revenues (30% for foreign residents) until the information is provided.
To notify us of your valid TIN or SSN, please complete a Form W-9 (form can be downloaded HERE) and return by mail to:
Tug Hill Operating Attn: Owner Relations 1320 South University Drive, Suite 500 Fort Worth, TX 76107
Who do I contact regarding my revenue check and what information should I include to help answer my question?
Please contact the Owner Relations hotline at (800) 652-8599 or email firstname.lastname@example.org. Include your name, daytime phone number with area code, vendor number and last 4 digits of your Tax ID/Social Security number for verification. A representative should contact you within 48 hours.
What type of annual statements will I receive?
Royalty owners receiving more than $10 and working-interest owners receiving more than $600 annually receive IRS Form 1099-MISC. The IRS requires us to report the gross dollars paid to you during the previous calendar year. As a courtesy, we also provide to you the total net dollars paid to you, which equals your gross revenues less all applicable deductions (such as transportation, severance taxes, etc.) The net value noted on your 1099 should equal the total value of payments made to you during the calendar year.
When will I receive my 1099 form?
Who do I contact with 1099 questions?
If you have questions regarding your 1099 or have not received your 1099 by February 15th, you should call (800) 652-8599 or email email@example.com.
What is a Division Order?
A Division Order is a directive signed on behalf of the interest owner verifying to the purchaser or operator of a well the decimal interest of production owned by the owner.
How do I transfer my interest or change my address?
- Change of Address Form
- Marriage certificate, divorce decree or other document affecting name change
- Certificate of merger or name change
- New Tax ID (Form W9)
- Death certificate
- Copy of the will
- Copy of order admitting will to probate recorded to the proper deed records office
- Letters testamentary or administration
- Evidence that debts and taxes have been paid
- Copy of Trust document if one was created through will
- Death certificate
- Evidence of debt and taxes being paid
- Affidavit of Death & Heirship Form
- Copy of recorded deed wherein you conveyed and/or received your interest in property to another party
How do I receive an offer to sell my interest to Tug Hill Operating?
If you are interested in selling your working, overriding royalty or royalty (mineral) interest, please contact us at (800) 652-8599 or email firstname.lastname@example.org.
How do I calculate my Royalty Interest?
Royalty is calculated based on the following:
- Take the number of net oil and gas acres that you own within a well’s drilling or spacing unit. (Example: If you own an undivided 1/2 mineral interest in a 40 acre parcel, you own 20 net mineral acres.)
- Divide your net mineral acres in the unit by the total acres in that well’s drilling or spacing unit; and
- Multiply this number by the royalty rate interest negotiated in your oil and gas lease.
- For example, if you own 20 net mineral acres, the spacing unit is 346.357 acres and the lease royalty interest is 16%, then your royalty decimal interest calculation in the well/unit is (20/346.357) x .16000000 = 0.0092390.
- Your royalty decimal interest can change if the unit in which you own expands or contracts, and the unit acres or your acres contributing to the unit changes.
What is a W-9, how do I fill it out and why do I need it?
A W-9 is the Internal Revenue Service’s “Request for Taxpayer Identification Number and Certification” form. It is a form used to accurately report payments made to you to the IRS. The form itself is not provided to the IRS, however, the form is necessary for Tug Hill Operating to accurately report to the IRS payments made to you (form can be downloaded HERE).
The W-9 needs to be completed in the same capacity as the title of the property (for example, if the lease or transfer document (deed for example) was taken out individually. The W-9 should be filled out with that individual’s information;
If the lease was taken out jointly, both parties should complete a W-9; or
If the lease was taken out in the name of a company, business, partnership, or trust, the information for that company, business, partnership, or trust should be provided). Please sign the form and return it to Tug Hill Operating.
- Either a Social Security number for an individual or a Tax Identification number for a company, business, or partnership MUST be provided on the W-9. Failure to include this information will result in withholding of taxes from your check.
- If you do not complete and return a W-9, or if you fail to provide your Social Security number of Tax Identification number on the W-9, this will result in the backup withholding of 28% of your payment, pursuant to Internal Revenue Code section 1441.
What is Direct Deposit?
Direct Deposit is an electronic method of payment where your funds are deposited directly into your bank account through the Automated Clearing House (ACH) Network.
What are the benefits of Direct Deposit?
Direct deposit eliminates the handling of paper checks and manual deposits. It reduces payment problems due to lost, stolen, mutilated or misdirected checks. Your money transfers securely and directly into your account on time. This service is provided to you at no cost.
Do I need to have an email address to participate in Direct Deposit?
No. Email address is not a requirement. However, Tug Hill is asking you to provide your email to facilitate and expedite future communication between us. We will not disclose your email address to third parties.
When will the funds be deposited?
Funds will be credited to your bank account on or about the 25th day of the month.
If my oil and gas interest is held jointly do we both need to sign the Direct Deposit Authorization Form?
Yes. For example, if the ownership is held in the name of Mr. and Mrs. John Jones, both parties must sign the Direct Deposit Authorization Form.
Can I direct funds to be deposited into a bank account in a foreign country?
No. Tug Hill is only offering Direct Deposit into any United States bank account that accepts ACH transfers.
Can I direct funds to be deposited in the account of another person or into a joint account?
You may direct funds to be deposited into any bank account of which you are a registered owner. It can be an account owned solely by you or an account owned jointly with others. Tug Hill cannot deposit funds into an account in which you have no ownership interest.
Can I direct funds to more than one bank account?
No. Tug Hill can only provide deposits into one bank account for each owner number.
After turning in my Direct Deposit Authorization Form how long before I begin receiving my distributions by Direct Deposit?
Tug Hill will process each request as soon as possible in the order received. In the normal course of business, please allow 90 days for the first electronic distribution to begin.
What if my Direct Deposit information changes?
It is required that you notify Tug Hill with a new Direct Deposit Authorization Form. We will inactivate your original direct deposit instructions while the new instructions are being processed. If there is a distribution that occurs while the new instructions are being processed, you will receive your distributions via check.
How do I discontinue Direct Deposit?
Cancellation requests must be in writing. Please notify Tug Hill by completing our Direct Deposit Authorization Form and selecting “Cancellation” for request type.