Oil And Gas Royalties: The Concept Of Escheat Explained
http://www.lawsays.net/articles/4363/1/Oil-And-Gas-Royalties-The-Concept-Of-Escheat-Explained/Page1.html
Elle Wood
If a Phoenix Bankruptcy is in your future, particularly a Phoenix Chapter 13 Bankruptcy, seek counsel from The Bankruptcy Group at Dault Law. By Elle Wood
Published on 01/12/2010
Every year, oil and gas royalties worth millions of dollars are being produced in states such as Texas; at the same time much of this money is being lost by the owners through a process that is referred to as escheat.
Every year, oil and gas royalties worth millions of dollars are being produced in states such as Texas; at the same time much of this money is being lost by the owners through a process that is referred to as escheat. In effect, it means that when a royalty company is not able to locate the true owner of the mineral producing property, the companies must then have to give the money to the Texas Comptroller.
Such eventualities arise because of simple oversights on the part of the original owners of the property who may have died without informing their next of kin about the deed to the land that is producing such minerals.
This simple oversight can affect how the heirs receive the their payments because, for example, the company may only pay a minimum amount of royalty and if the property has been divided among several heirs then each heir might not be receiving that minimum amount at one time. Lesson, it pays to make certain you are involved with a reputable mineral royalties company.
Furthermore, the people that are actually entitled to receive a royalty from the companies may be the original owners that have died. In case these people failed to leave behind a will then there is no one left that is legally entitled to receive the money.
Or, if for any other legal reason such as wills not being probated or even if the wills were probated but the executors failed to prepare the transfer deed; then there would be nothing in the county records showing who the real owner of the property is on which oil and gas has been found.
If you are in such a situation then you need to deal with a good Texas attorney who knows how to investigate such matters. All you may need to do is to provide the attorney with a document related to your land which is enough for an expert attorney to help you recover dues on your mineral royalties or contact the royalty company directly.
Such eventualities arise because of simple oversights on the part of the original owners of the property who may have died without informing their next of kin about the deed to the land that is producing such minerals.
This simple oversight can affect how the heirs receive the their payments because, for example, the company may only pay a minimum amount of royalty and if the property has been divided among several heirs then each heir might not be receiving that minimum amount at one time. Lesson, it pays to make certain you are involved with a reputable mineral royalties company.
Furthermore, the people that are actually entitled to receive a royalty from the companies may be the original owners that have died. In case these people failed to leave behind a will then there is no one left that is legally entitled to receive the money.
Or, if for any other legal reason such as wills not being probated or even if the wills were probated but the executors failed to prepare the transfer deed; then there would be nothing in the county records showing who the real owner of the property is on which oil and gas has been found.
If you are in such a situation then you need to deal with a good Texas attorney who knows how to investigate such matters. All you may need to do is to provide the attorney with a document related to your land which is enough for an expert attorney to help you recover dues on your mineral royalties or contact the royalty company directly.