We have minerals in an area that is part of a federal drilling unit. This was set up before I had any voice in managing these minerals, and now I am finding out about some of the negative features of this unit: for example your royalties can be in escrow for up to 3 years or maybe more until the BLM approves the division of royalties. I understand there are definate benefits for the producer with this type of unit.
My main questions:
1. I am wondering if there are benefits for the mineral owner, other than it protects you from bieng overpaid or underpaid and then later needing to true up the payments after the BLM finishes their work.
2. Why does it take so long?
3. Is the process speedier if the BLM is led by someone who is more friendly to fossel fuels?
4. What happens to these royalties is suspense if the producer goes through bankruptcy?
Thanks in advance for any answers to these questions.