Royalty Funds in Suspense

Gulfport drilled 3 additional multi-unit wells last year that included Section 27-04N-06W. Wells went online in March/April and I received Division Orders in August. There were 2 decimal interests listed on the Division Order. One for minerals my dad inherited from 2 aunts and one for minerals my dad inherited from his dad via an “Affidavit of Heirship”. I am receiving royalties on the first well (for all of the minerals) that went online in 2016, however I am only receiving royalties for the minerals my dad received from his 2 aunts on the 3 new wells. Gulfport acknowledged at the end of January that some funds were in suspense. As of this date they have not called me back or disclosed what documentation is needed from me. Thoughts? Before I call my attorney.

I would contact Gulfport and inquire as to why some interest is in suspense and what they require to get that interest in pay status. A certified letter is cheaper than a lawyer. It could be as simple as needing to file a probate for your Grandfather.

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I agree with Todd. Definitely send a certified letter first. It can take awhile to get a response from owner relations these days. You’ve just gotta be persistent and keep following up with them on emails, and calls.

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Did you check the oklahoma unclaimed site. There are a whole lot listed for a Donald Bray and Larry. From Tulsa, Also a Donna Sue. You click on the name to make a claim if you think its you. They will send you the money. After sending in all your paperwork.

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Great find Sandra! I’d also check the MOEA suspense funds. Don Google search “MOEA Search Oklahoma” the first result is the corporation commission page with the link to it. There’s $124 in there for a Donald Bray, looks to be a pooling bonus. Gotta love free money!

It does sound like there’s money in the operators suspense account as well.

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Thanks Todd… The follow up call I made today has not been returned. I sent them an email after CoB and if I do not hear from them before next week, I will send them a certified letter.

Thanks Diesel… will do.

It appears the unclaimed funds and MOEA suspense funds are tied to minerals in McClain County. That is a county I have never lived in. No relation to any Bray’s who live there.

@Don_Bray Any relation to the Bray 1–22 lease in Garvin County?

No relation that I am aware of.

Just received a call from Gulfport’s Owner Relations Department. Confirmed that a case was logged on January 31 when I first contacted them. Waiting on the next department (legal department I guess) to respond. I just have to have patience.

Great to hear that Don! Just keep following up with up with them. You gotta be the squeaky wheel.

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Bummer, I’ve got a royalty interest in that lease. Would’ve been a cool coincidence.

You need to ask the company to provide you with “the division order analyst’s title requirements needed to put the minerals into pay status.” You will likely find that a probate is required. This isn’t the end of the world. In Oklahoma a probate can occur years later and resolve many generations.

This post is not legal or tax advice. No attorney client relationship established by reading or responding to this post.

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Thank You Richard… Probate might be easier than the Journal Entry of Judgement (Book 3175, Pages 171-174) my dad and uncle did about 22 years ago. And it’s a shame the Judgement did not include the 12.5 acres of minerals their dad had back then. All my dad and uncle could see was the house and land.

Don,

If that Journal Entry of Judgement you referenced covers the heirship/conveyance from your grandfather to your dad then you might not need to probate anything, you can get by with filing an affidavit of facts referencing the lands that should have been included. As Richard mentioned, you just need to get the title requirements from Gulfport first and that will determine the best route to move forward.

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Thanks Hawkeye23: An affidavit of facts would be nice. Per the Lead Owner Relation Tech, still waiting for the Gulfport analyst to advise what is needed.

I still find it interesting that Gulfport is paying us (brothers & cousins) on the first multi-unit horizontal well in the section, but now all of a sudden there is a question of title on the next 3 multi-unit horizontal wells. Same section. Same minerals. I don’t understand.

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If you go to 10 lawyers you get 10 answers. The lawyer on the new wells is different than the one on the original well. The operator should waive the requirement. That doesn’t give you marketable title. At some point you really should perfect the title before the the interest is passed to future generations. My 2 cents, not legal advice.

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I often believe this is a stalling tactic to allow the producer to temporarily have more working capital.

Tom: Very doubtful as the penalties for commingling of funds are pretty stiff.

Received an email and we are now in pay status… cleared it up by furnishing the Gulfport analyst with a copy of the Journal Entry of Judgement (Book 3175, Pages 171-174) my dad and uncle did about 22 years ago. Even though there was no mention of the minerals in the document.

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