How is an operator to handle unclaimed royalties? For instance: Someone dies, no one comes to claim their share of the rights for a year, five years, etc. What happens to the money? Is the operator obligated to "hold" it for someone to claim later? Do the funds just remain part of the company? I mean, they know they are supposed to pay someone...but I am sure they aren't going out beating the bushes for someone to pay...so, what happens with the funds?
I am sorry that I don't where to find the information so I could direct you...but it is my understanding that it goes into an escrow account with the state.
Also, if one of the heirs who is getting royalties passes away, the family needs to contact the company with documents and changes. Sometimes... people forget to do this or did not know their relative was getting checks. We have seen this happen from posts on these sites. Best to talk with parents and such to see if there is anything you need to know that affects you later on.
I wonder who holds the escrow? How long? It seems that some of the folks on here who “discover” they won rights because a land an shows up. How long have their relatives been dead before this happens?
In my brief experience, two companies somehow "lost" my mother (inherited rights from my father whose sister had been acting as Attorney in Fact for him). When my sister and I inherited from our aunt, the companies realized that they had been paying her the whole amount instead of her part, but didn't know about my mother (didn't try too hard to find out). When I contacted them, they both said they had escrowed her portion, and sent it on. However in a different experience with yet a different company, somehow our whole family's portion had somehow been paid only 1/2 the correct amount, for many years, and someone else paid the extra. When I pointed that out, the company started paying us correctly but didn't do anything about back payments. I should have pushed it but didn't. So different results in different situations.
There might be something in the WV Code but I haven't looked.
Seen this in the latest issue of the Doddridge Independent (Newspaper). It's only one case but might answer some questions.
In the Circuit Court of Doddridge County West Virginia
QUOTE:You are hereby notified that the Court may enter an order for the appointment of a special Commissioner to privately sell, execute , and deliver to Antero leases for the interest of "NAMES" and their missing ,unknown, and abandoning heirs, successors , and assigns, as well as other unknown parties who hold any right , title, or interest in and to the oil and gas within and underlying the subject property. You are also notified that in the event that neither the Defendants, nor their heirs, successors, or assigns, appear to CLAIM ownership of the defendants interest within SEVEN YEARS after the date of the lease, the Court MAY order a conveyance of the Defendants interest to the surface owner of the Subject Property.
This is the problem with West Virginia having not title companies...I don't think there is such a thing as clear title in the state. I know that I had to do a notarized affidavit for chain of inheritance. But even the lawyers involved in all this are discombobulated! LOL I think it'd be a daunting task for them to trace a chain of inheritance when people have died in other states, sometimes other countries so there is not a death certificate on file in any WV county. Even Google hasn't caught up...if an obit was NOT printed anywhere, it's hard to chase it. Ouch Nancy! Seems to be that they would be liable for that!
My lawyer told me that they aren’t required to do a google search. I would think they at the very least they should be required to do records search for the county! My grandfather owned the rights to the well, documented on the records page. His will is also recorded on the records page. But yet they were lost!
West Virginia (Doddridge County) doesn't seem to have a problem sending out Property Taxes each year and if you don't pay, your interest goes on sale on the Court House steps. If your interest does not sell, they will try the next year and on and on each year. I guess at sometime the names will drop off the list but their should still be a record of the tax holder in the County Court House, or you would think. I would also think that after a certain number of years the interest would go to either the State or County. in almost every other State, Pay up or lose it.
if the state holds a missing or deceased persons royalties in escrow how does one get the state to tell them who and how much is being held? Should it then not be paid to remaining relatives who also have the same royalty shares?
Probably have to submit documents of "heirship" to unclaimed property if, the state has one that includes mineral royalties in escrow. Doubt it would be that easy though and may require an attorney. They usually only publish legal items in the paper during probate when a person passes away. Never see anything asking for an heir to come get some money. As far as giving the funds back to remaining relatives not in the "heirship" line, that is a tough one and again an attorney may be needed. It is a sad situation that all of this mineral rights and drilling attention could be made easier. Bottom line is Wv was and is not ready for it.
Nancy, I have one well that my cousin and mother didn't receive royalties for ten years or more. We paid taxes, they filed the paperwork correctly with the courthouse. I have called on that. I received several calls initially, but now Antero is slowing up on calling. (My guess is that they still have the same workload and with 250-600 less folks working....it is going to be a while.)
Arnold, I have seen that verbiage before. Thanks for the reminder. It would seem filing the will and probate documents with the county doesn't always mean you get all your wells attached to you. It is just so complicate.
I am so glad this forum is here. I was really pulling my hair out. It is so complicated to explain this stuff to folks. I find it difficult to even explain it to my darling husband. =/
Those 250-600 should have nothing to do with Antero taking care of office business for anyone. Those people were independent workers who you could say, worked for themselves. Antero paid them for leases they were able to get signed. Antero wants everyone to think these people were part of the team. When the story came out it did not take long for people to think Antero was getting rid of their employees. They were contactors not Antero company employees. Still hate to see people lose their jobs but, I have to admit, some of them are pretty shady. Maybe the money made them that way.
Point taken DT.
Here is a link to the State Auditor's office Delinquent lands website. A few years ago I found an old name, somebody i know died in the late 1950s, with an interest in something I had an interest in. Small interest! I bid on it and got it. Had to track down her heirs the best I could, no children, just siblings long gone.
WV Auditor's Delinquent Lands website
I think these include parcels that didn't sell in the latest sale (fall 2014) and anything left over. Some have status "deed" meaning it got sold. Some "redeemed" with obvious meaning. Up to the buyer to hire an attorney to do title research or do it himself. You need to know what you are buying.
Arnold L Stuart said:
West Virginia (Doddridge County) doesn't seem to have a problem sending out Property Taxes each year and if you don't pay, your interest goes on sale on the Court House steps. If your interest does not sell, they will try the next year and on and on each year. I guess at sometime the names will drop off the list but their should still be a record of the tax holder in the County Court House, or you would think. I would also think that after a certain number of years the interest would go to either the State or County. in almost every other State, Pay up or lose it.
Stephanie P said:
Point taken DT.
Steph, I am sorry I answered your post in a harsh manner. I am guilty at times and become frustrated at times and am very unreasonable at times. See, I once posted that this mineral leasing stuff will give you a headache. Besides that, our family just received a summons in the mail for the partitioning of our minerals. I have a whole lot to say about that but, I would be saying it in the manner I mentioned above. Got to love it.
No offense taken...not even a little.
=)
These mineral rights are so puzzling that it begins to be a personal challenge. It is like one of those awful video games. You think you beat it and there is another level. (I am not a fan of video games but seems the best analogy.)
P.S. I just received a reply from a long lost cousin. I pray she is interested enough to join up in the smacking of hands that I have started this past month. =) So, that is my good news for the day!
Question of the day: Now that oil company owns/bought a piece of our minerals, do I send them a bill for taxes or put a lien on the mineral property for not paying their portion?
I know there are tons of people out there that have been paying taxes on the minerals for all family/owners. SOMETIMES they are the same ones who set back and collect the rewards or sue for all the hard work that was put into the process. Taxes are probably something they do not even think about unless mentioned to them.
Good point!
If they don't pay the taxes, then their shares should go up for auction. Which means you could purchase them. =)