Interest Owner Resource Center

Discover answers to Frequently Asked Questions about royalties, check and payment details. Find updates and other announcements here.

» Questions about 2022 Taxes / IRS Form 1099-MISCs? Please click here for the latest.

If you received a royalty check or payment from us during the year 2022, you will receive an IRS Form 1099-MISC this year.

Per IRS Requirements for this year, IRS Form 1099s-MISCs for the 2022 Tax Year will be mailed before or on February 1st, 2023. Your IRS Form 1099-MISC will be mailed to the address we have on file. You should receive your IRS Form 1099-MISC within one day to two weeks of mailing at the latest, depending on USPS delivery delays. If you need a digital copy before this date, please email us with your owner number and the last four digits of your Tax ID and we will email you a digital copy of your 2022 1099-MISC with your Tax ID obscured for your protection.

The total amount shown on your IRS Form 1099-MISC is based on any payments issued by us during the tax year. This amount will not include royalties paid for prior production sale dates on checks issued after December 31st, 2022. Any royalty disbursement checks issued by us during 2023, regardless of production sale dates will be reported on the 2023 Tax Year 1099-MISC issued in early 2024, per IRS requirements.

» Will I receive a Form 1099 every year?

If you did not receive a payment check during the past year, you will not receive an IRS Form 1099-MISC for the past year. Royalty owners who received $10 or more and working interest owners who received $600 or more in the calendar year will receive a 1099. If you did not receive a payment during the past year, you will not receive a 1099. We mail all 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.

» Will I have to pay taxes on the revenue I receive?

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.

» Can I request for Paradigm Twenty to withhold taxes from my check?

No. You will receive an IRS Form 1099 at the end of the year to review with your tax preparer.

» How can I change my mailing address?

It is very important that you keep us informed of an address change. A correct address on file will allow you to receive future Paradigm Twenty mailings and 1099 tax information. You may email the Change of Address form to mail@paradigm20.com or mail to the address listed below.

Paradigm Twenty
Attn: Division Order Department
3910 West 6th Avenue #282
Stillwater, OK 74074

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 Paradigm Twenty is a joint account, both account holders must sign the form.

» How do I report a change of ownership?

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

Instructions for change of ownership (conveyance)

If the change in ownership is because the interest owner has passed away, you will need to furnish us with the proper documentation that outlines the disposition of the ownership of the deceased party. If the estate is being probated, please follow the instructions below outlined in the link for probated will. 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 below for instructions and document forms.

Instructions for change of ownership after owner's death (Probated Will)

Instructions for change of Ownership after owner's death (Affidavit of Heirship)

Affidavit of Heirship Form

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

At this time Paradigm Twenty doesn't offer direct deposit, however this is something we plan on offering in the future. Please check back here for updates.

» When does Paradigm Twenty issue royalty checks?

Revenue checks are issued automatically at the end of each month if the accumulative revenue on your account exceeds a minimum payout threshold. You can always contact us and request a manual payout, certain limits may apply for smaller amounts, depending on state regulations.

» Will the amount of my royalty check vary?

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

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

Natural gas and oil revenues are generally paid one to three months after the actual production date, all royalty payouts are also dependent on when we receive payment from the purchaser. Your total revenue account balance must also exceed the threshold for minimum payouts for a check to automatically be mailed.

» I didn't receive my regular check, can royalty checks stop being issued to me?

Yes. You will generally not receive a statement or notice if the well(s) you are paid from are shut in or had no production sales during a certain month. 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.

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

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.

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

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

» How is the pricing of oil, gas and other minerals determined?

Crude oil, natural gas and most minerals are commodities, and their value is subject to daily swings in the marketplace. Paradigm Twenty continually negotiates to get the most favorable prices possible.

» There are Taxes and/or Deductions shown on my statement, what are they?

Taxes listed on the gas check statement are not state or federal personal tax withholding. These taxes are gross production taxes paid directly by the purchaser we sell to and these amounts are not received or withheld by us and as such they are not directly disbursed to you by us, but are required by law to be on the statement for transparency. On the check statement, the tax column is the total of any gross production taxes on the sale. The owner tax column is the amount that the tax affected your royalty payment based on your royalty decimal interest. Any amounts shown on the deductions column are deduction charges or fees taken by the purchaser and are not deductions taken by Paradigm.

» My question isn't answered above, how can I contact the Owner Relations Department?

Please email us at the following address: contactus@paradigm20.com  When inquiring, please reference your owner number or the well/lease your interest is related to.

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