Why are they not giving me our balances, is there a law or rule that allows these companies to do this?
Pretty typical for the companies not to disclose until they have all title information. If they have turned over to the state, then you can find out-again if you have the proper title information filed. Prevents fraud.
Thank you for yr reply. That makes sense. I will look into this. E
We have had to have minerals in suspense for twice while change overs take place, the oil companies keep the minerals in Suspense for 22 months before returning the royalties to us. If you’re not getting yours and you know they are not in suspense, I would check the Texas Unclaimed Funds. I have found $12,000 of Royalties that the Bank close the PO Box they checks were coming to and so they forward to Texas Unclaimed funds. Sincerely, Chris
Thanks for that info, they also mentioned a litigation is pending. $12,000 is in suspense, that must b the reason. Thanks A
Every company I’ve ever worked for as a division order analyst has a policy concerning what to disclose to owners about their suspended accounts. Martha Barnes touched on the incomplete title and fraud reasons, which certainly lead the pack.
Another common reason is that whatever amount showing in the computer today might not reflect any adjustments that need to be made to the account before it can be paid. One common adjustment is to trade out the “estimated volume” and “estimated price” entered at the time the money was booked to the account, with the final, true volume and true price paid by the purchaser when the purchaser’s check is finally received and booked. Most owners don’t know that many oil companies initially book revenues based on “accrual” methods. A typical accrual method is to take the total number of true bbls or mcf and final price the well produced the month before, divide it by the number of days in that month, then apply those volumes and the same final price to this month’s booking. Next month the company will reverse the estimates and enter the true, final numbers.
So if an owner’s call comes in while the estimated numbers are still sitting in the account, the amount told to the owner could be incorrect. And Katie, bar the door if the amount you give them turns out to be more than what they see on that check when they receive it…
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