Frequently Asked Questions

If you are making changes to account, in most cases we need the information in writing.  Please mail all required documentation to:

Dan A. Hughes Company, LP
PO Drawer 669
Beeville, TX 78104

See the specific question below to know which department needs the information.

Q: When are Royalty checks mailed?
A: Checks are mailed on or about the 20th of each month
Q: What if my check is lost, stolen, or becomes outdated?
A: Contact us at 888-803-3588 to request payment, if your check has been lost or stolen. Please have the following information ready when you call:
  • Your full, legal name
  • Your owner number
  • Your taxpayer identification number
We will verify the status of your check with our Accounting Department and stop payment if the check is outstanding. The funds will be made available again through reissue to you under a new check number. If your check is over 90 days old, it will not be honored. Please void the check and return it with a written request to reissue to:
Attn: Land Owner Relations    
Q: Why does my monthly payment sometimes vary?
A: Many factors contribute to your payment, including: commodity price fluctuations, regulatory or contractual changes, diminished production, seasonal conditions, and downtime of the well or wells.
Q: What taxes are deducted from my check?
A: Generally, state severance taxes are deducted
Q: If marriage (or divorce) has changed my name, will this affect my receipt of royalty checks?
A: Furnish a Recorded Marriage Certificate or Divorce Decree specifying the name change or other documents affecting the name change. Please send the required documents to the Hughes’ Beeville location,
Attn: Land Owner Relations

Questions about unpaid or suspended royalties

Q: How do I find unclaimed funds in my name?
A: Please visit the National Association of Unclaimed Property Administrator (NAUPA) website at http://www.unclaimed.org/ to locate and collect unclaimed funds in your name.
Q: Why are royalty payments suspended?
A: Common reasons for suspending your revenue are title dispute or defects, death of owner, transfer of ownership, unknown address, unexecuted division order, escheated, legal requirement, lien, missing tax ID or missing Social Security number.
Q: What if the royalty owner has died?

A:  REQUIREMENTS FOR DEATH OF AN INTEREST OWNER
If the decedent died testate (with a will) and the will is being probated, the following documentation must be submitted for our review:

    Death Certificate
    Letters Testamentary
    Last Will and Testament
    Order Admitting Will to Probate
If the decedent died intestate (without a will) or if the will is not being probated, the following must be submitted for our review:
    Death Certificate
    Affidavit of Heirship
All documents must be filed of record in the county where the property is located. Please keep the originals for your records.
Please provide an executed W9 for each of the beneficiaries, attention: Division Order Department
Q: What documentation do you require for transfer or sale of interest?
A: Conveyance document recorded in county/parish in which property is located. Please send the required documents attention: Division Order Department.
Q: What documentation do you require for merger or change to corporation or company name?
A: Certificate of Name Change, Certificate of Merger and Executed W9
Please send the required documents attention: Division Order Department.
(Download W-9 Form)
Q: What documentation do you require for Appointment of Attorney-in-fact?
A: Please send a recorded copy of the Power of Attorney attention: Division Order Department
Q: What documentation do you require for trusts and partnerships?

A: These are the documents we need to be sent:

    Conveyance of interest into or out of trust/partnership recorded in county/parish in which property is located
    A copy of the trust/partnership agreement
    Any instruments pertaining to successor trustee 
    An executed W9 Form

Please send the required documents attention: Division Order Department
(Download W-9 Form)

Q: What documentation is needed to be placed in pay status?
A: A signed Division Order and social security number or tax identification number with two witness signatures is required to be placed in pay status.  Please send this documentation attention:  Division Order Department

Questions about 1099’s

Q: When will I receive my 1099?
A: 1099s will be mailed to your address of record by January 31 of the current year.
Q: I received very few royalty payments. Will I receive a 1099?
A: The minimum amounts for which 1099s are issued are:
Box 1 (Rents) - $600    (includes lease bonus payments)
Box 2 (Royalties) - $10
Box 7 (Non-Employee Compensation/Gross Working Interest) - $600
Q: It is the end of February and I did not receive my 1099. How do I get a new one?
A: Call the 1099 Coordinator at 888-803-3588. In addition to your owner number, you will be asked to verify your address and Social Security number. We can then fax, email or re-mail the form to you.
Q: My address has changed, and I did not receive my 1099. How do I get a new one?
A: All requests for a change of address must be submitted in writing. Request a change of address in writing and send to the mailing address above.
  Attention Land Records Supervisor
 Once a change of address form has been received, a 1099 can be requested at 888-803-3588 or downloaded from our site.
Q: What are the numbers on my 1099?
A: The numbers are as follows:

Box 1: Rents: Monies paid for Lease Bonus and Right of Way

Box 2: Royalties: Gross payments made on production or minimum royalties

Box 3: Other: Damages and water usage

Box 7: You will see either:

GWI (Gross Working Interest) Your owner shares in the operating revenues and costs associated with the well. This is most commonly seen along with monies in Box 2.

NEC (Non-Employee Compensation) Payments made to contractors
Q: The amount in Box 2 does not equal what I deposited. Why?

A: Dan A. Hughes Company is required to report Gross Royalty Amounts to the IRS. Your periodic disbursements are net of production-related deductions and State Severance Taxes. Refer to the summary at the bottom of your 1099, the “Net=$” or Net figure should equal your deposits.