We just found out in November 2013 that our family had mineral interests in McClain County, OK. We are heirs to these mineral rights thru our great uncle and grandmother. On one of the 100 acre tracts, I found a well on the corporation commission website that produced for 20+ years and that our family is owed money on. This well was plugged in 1996, however. When I contacted the oil company (which amazingly is still in business) who was the operator when it was plugged, I was told by their attorney "this well permanently ceased producing in 1996. As such, any and all claims regarding this well are barred by the applicable statute of limitations". If we didn't know we were owed money, how could we be barred from getting it now? Aren't they supposed to hold this money in a suspense account, especially if our family was never notified?
They are supposed to escheat funds they cannot deliver to the owner to the state. Have you search the state unclaimed funds to see if your relatives are listed?
http://www.occeweb.com/MOEASearch/index.aspx
http://www.ok.gov/treasurer/Unclaimed_Property/index.html
So what the attorney said is not correct? Yes, I've searched the unclaimed funds at the state treasury.
In my opinion they cannot keep the money. If they cannot find the owner it must be escheated to the state. I don't see any way around it. But I'm not an attorney.
Also, I would put little value to the attorney representing the operator. Also his opinion on statute of limitation may or may not be correct. Statute of limitations can be applied multiple ways. Was there a lease? If so contract law applies. If not, other laws apply. In some cases Statute of Limitations have discovery provisions and the clock starts clicking once notified.
More importantly, are you sure you were due payments from this well? I've seen many people chasing their tail on payments they thought they were owed and the well unit did not even cover their ownership.
And how much is owed? You may be chasing such a small amount that will not even cover your attorney fees. Balance cost, risk, and reward if you choose to proceed.
Thank you for your reply. Yes, I am very sure we should have been paid on this, and I'm being told it could be a lot of money. We are starting to work with an oil and gas attorney on getting a new mineral title opinion. I know that there is a lot of knowledge and wisdom available on the mineral rights forum, however, so I'm not just listening to attorneys. Furthermore, I agree that the attorney for the operator is not the best person to be listening to!
"new mineral title opinion" throws another variable into this discussion.
This may lead to them not have not credited your relatives with ownership originally. That could weigh much differently than them crediting them with ownership and never paid.
I've seen a couple of these issues come up including one where they paid the wrong person with the same name. It can get ugly!
Some of the Production Revenue Standards Act may impact some of this and it went into place in 1992.
I believe what has happened is as you said, that our relatives were never credited with ownership originally. I know that would be different than the oil companies knowing they owed us but just never paid our family. The difference would be ??? that we will have to file a lawsuit to get our money is what I'm thinking.
You will likely have to file a lawsuit regardless. That or be very near a lawsuit before a settlement is reached.
It is going to be hard to determine negligence and/or the responsibility for a mistake from 40 years ago. The some of the responsibility may come back to the owner for not managing their property.
I don't know the numbers you are talking about. "A lot of money" can mean different things. It may be a case where the only way you should pursue it is that the attorney is willing to take the case with only a contingency percentage.
Thank you, Rick. Yes, we are speaking with an attorney now. He's saying we have a good strong case. However, a very difficult one, too.
Best of luck to you, Sandy. Please keep us updated.
Let's hope if your attorney says you 'have a good strong case' that he would take it on contingency. Otherwise you could be making his house payments, boat payments & kids college payments & never see anything from it. :-)