Looking for any insight regarding escheatment in Texas—
Do operators have any guidelines or protocols they are required to follow before they are able to turn an account over to the state of Texas?
Background- I’ve been trying to work through the curative process regarding inherited mineral rights and since the process has been a back and forth between myself, a third party company hired to resolve tract issues and the operator, it has drug on for months and months. The third party (probably due to frustration with the delays) recently made a comment essentially threatening to turn the entire account over to escheatment but I was curious if this was possible if I have documented communication with the operator. Or what specific steps/communication requirements I have to meet to prevent the operator from turning it over as unclaimed.
I believe you have done what you need to - the funds are no longer “unclaimed” and therefore not subject to being paid over to the state comptroller. I have had operators using this threat more frequently lately. “Get us an Affidavit of Heirship by x date or we will escheat” Not very smart on their part, as it can turn into a colossal pain for them. I would let them know that you are claiming the funds, and any payment (or even reporting, at this point) is improper, and if they wrongfully pay claimed funds, you shall seek appropriate remedies. I have had operators accidently pay over suspended funds pending litigation and they were tripping over themselves to claw the funds back when we came for the $ (which they did recover).
If you owned the minerals/royalties at the time they were paid, you can recover from the State. Ownership vested in you upon death of person you inherited from.
Even given the above, they can and will still do it, so the sooner you can provide curative, the better.
Also, send every request by certified mail return receipt and keep a copy of all correspondence, emails, and phone calls. They are required by law to respond to a certified letter, so do most of your correspondence that way. Make it very clear that you are claiming the funds due to you.