My mom's dad died in 1978 owning a non-participating royalty interest on a section in a Texas county that no one in his family knew about. Two months later an oil well was completed on that property and has been producing from 1978 to the present. His children, my mother included, have all died knowing nothing about it. We found out about it recently and there are royalty payments held in suspense in his name.
Is there any time limit on how long an operator, who is the division order provider, will hold funds in suspense?
From how far back can we expect royalty held in suspense to be distributed to us?
Wilson:
I am not familiar with the laws regarding royalty payments held in suspense but I would definately contact an oil and gas attorney to handle this matter. There could be some legal curves along the way involving the filing of proper paperwork, etc.
You would need to contact the current well operator/lessee and present proof of your title to the NPRI. You may have statute of limitations problems, but the company may just work with you and pay the full amount. I suggest you hire an O&G lawyer to assist. If you cannot afford to pay the lawyer hourly, he may do it on a contingency where he is paid out of the suspended funds.
Operators may hold in their internal suspense for an indefinite length of time but are required to forward to Texas State Comptroller of Public Accounts for custodialship and then held by State CPA for 7 years before "escheated" to State Treasury ... visit the website of the Comptroller for unclaimed funds and type-in your fathers name
Thank you Charles, Ben and Rocky for your suggestions and information.
A search of the Texas website for unclaimed funds produced no results and I am preparing info for the attorney.