If Old Operator Doesn't Pay Mineral Royalty Does the New Operator Owe Back Royalty

If you are owed mineral royalty and the operator does not pay for five years, does the new operator inherit that debt?

Generally not. Think of it like a landlord/tenant situation. If a tenant doesn’t pay the landlord and the apartment or rented space turns over to new tenant, the new tenant doesn’t inherit that debt.

Your rights may be affected by state law and the reasons why the royalty was not paid. Is there a title issue which has not been resolved? Did the former company hold the royalties in suspense and turn over the suspended funds to the new company? Were the funds turned over to the state and now held in unclaimed funds account where you can apply to retrieve the money? How much money is involved? Do you have ongoing correspondence with the first company?

This topic was automatically closed after 90 days. New replies are no longer allowed.