Suspending monies


#1

Is it legal for a leasing company to suspend monies and refuse to answer to how much they are holding? If so, what can I do about it? Thanks.


#2

I company should be able to tell you what the title requirements are if you have an interest in the property. Whether they are inclined to share the amount in suspense is probably up to the company policy. If the property is in suspense they are not convinced the inquirer has the right to the money and therefore is not yet entitled to that information. This may vary from state to state.


#3

It depends on the reason for the suspension. Were you overpaid royalties and the operator is recouping the overpayment? Is there a title dispute or issue as to how the minerals are owned within a group? This assumes that you mean the royalty payments were suspended by the operator. The operator owes you an explanation of the reason for the suspension. If you have just signed a lease and the lessee has not yet paid the bonus, then this is different matter. You should not send an original signed lease to a lessee except in exchange for the bonus payment.


#4

Thank you! I appreciate the information.