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Money Held In Suspense

Discuss anything to do with property law - buying, selling property

Money Held In Suspense

Postby Domingo » Wed Dec 07, 2016 2:11 am

We have interest in property mineral rights and signed leases with an oil company. They have drilled a number of wells on that property and have been taking oil out from about June 2012. We have complied with every thing they have ask for to prove heir-ship but they still are holding our royalty in suspense. This has gone on for months and they keep coming up with all kinds of delays. Most recent reason for not paying is that they still need to contact more interest owners. How long, by law, can they hold our funds in Texas?
Domingo
 
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Joined: Tue Mar 25, 2014 3:50 am

Money Held In Suspense

Postby yehudi » Wed Dec 07, 2016 6:33 am

I believe Section 91.402(a) and(f) of the Texas Natural Resources Code states that once a well begins producing they have 120 days to begin paying you, and ongoing payments after that are due no later than 60 days after the end of the calendar month in which oil is sold, or in the case of gas, 90 days. They apparently can suspend payments without paying interest in certain cases(barring lease language to the contrary) such as a title "cloud" on your ownership that needs "curing." In this case they should at least tell you WHAT needs curing so that you can go fix it. They can also suspend payments until they reach the state minimum for distribution; usually $25 to $100. In the event interest is due(as it is in certain cases where your title is not the issue) I believe it's 2% above(and 4% in some cases) the rate charged on loans to depository institutions by the New York Federal Reserve Bank. Interest is basically due when title is clear but payment is late, or when they send you a division order to sign that does not comply with statutes(fairly common) and you therefore refuse to sign it. You can read the statutes I referred to above here: http://www.tlma.org/pdf/news_requirements.pdf

Hope this helps you out. Frederick M. "Mick" Scott CMM RPL

www.mineralhub.com The Mineral Hub  
yehudi
 
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Money Held In Suspense

Postby Christos » Tue Dec 13, 2016 12:08 am

We have interest in property mineral rights and signed leases with an oil company. They have drilled a number of wells on that property and have been taking oil out from about June 2012. We have complied with every thing they have ask for to prove heir-ship but they still are holding our royalty in suspense. This has gone on for months and they keep coming up with all kinds of delays. Most recent reason for not paying is that they still need to contact more interest owners. How long, by law, can they hold our funds in Texas?
Christos
 
Posts: 40
Joined: Wed Jan 08, 2014 5:16 am


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