Direct Deposit
Can I have my royalty check direct deposited to my bank account?
Yes. You must fill out our direct deposit form below. Your statements will be emailed to the email address provided on the form.
Please mail direct deposit forms to:
Capital Star Oil & Gas, Inc
4400 Post Oak Pkwy, Suite 2360
Houston, TX 77027
Address Change
How can I change my mailing address?
Please fill out our change of address form below. It must include your owner number, name, old address, new address and signature of the account holder.
Please mail change of address forms to:
Capital Star Oil & Gas, Inc
4400 Post Oak Pkwy, Suite 2360
Houston, TX 77027
Change of Ownership
What happens when the interest owner of a property passes away?
Capital Star will need to be provided 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 in the pdf below for completing an affidavit of heirship.
Change of Ownership after Owner’s Death – Affidavt of Heirship
If the estate if being probated, please follow the instructions in the pdf below.
Change of Ownership after Owner’s Death – Probated Will
Do you have a beneficiary form?
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.
Change of Ownership – Conveyance
Lost or stolen checks
What should I do if I do not receive a check that was issued to me?
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.
Taxes
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.
What is an Ad Valorem Tax?
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.
There is a “Sev/Prod Tax,” deducted from my revenue check. What is this tax?
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.
Will I receive a 1099 every 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. 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.
You may contact us at (844) 663-2764 with any other inquires you may have.