If you own mineral rights, you could have money waiting for you—but without action, it could slip away forever. Suspended or escheated revenue can tie up funds indefinitely, but understanding the process can help you reclaim what’s rightfully yours.
Finding out you have unclaimed mineral royalties is like discovering a $100 bill in an old pair of jeans—except it would be orders of magnitude more valuable. It is worth taking the time to find out if there are any mineral funds in those old pockets.
What is Suspended Revenue?
Suspended revenue refers to the income generated from mineral rights that are temporarily withheld by the operator or the company responsible for disbursing payments. This suspension can occur for various reasons, including:
- Title Disputes: When ownership of mineral rights is unclear or contested, it can result in prolonged legal proceedings and complications. Disputes may arise due to unclear deed records, overlapping claims, or previously undiscovered heirs who assert ownership rights. Resolving these disputes often requires legal intervention, extensive documentation, and cooperation from multiple parties, which can significantly delay the release of funds.
- Missing or Incomplete Documentation: Mineral revenue payments require complete and accurate paperwork, including division orders, transfer documents, and tax identification details. Payments may be suspended indefinitely if any of these documents are missing, incorrect, or outdated. Mineral owners should periodically review and update their records to ensure compliance and avoid administrative delays that prevent them from accessing their rightful earnings.
- Legal Issues: Various legal challenges can obstruct mineral revenue distribution, including property disputes, unpaid debts leading to liens, or unresolved contractual disagreements between multiple stakeholders. These complications can delay payments and require extensive negotiations, settlements, or court rulings before the rightful owner can access their funds. Proactively addressing potential legal issues can minimize financial disruptions.
- Unresolved Ownership: Inheritance of mineral rights can be a complex process, especially when heirs are not properly documented or fail to claim their ownership in a timely manner. Revenue may remain in limbo while courts, attorneys, and estate executors work to validate heirship and legal rights. Proper estate planning, clear succession documentation, and timely legal action can help prevent revenue from becoming suspended indefinitely.
How to Release Suspended Revenue
The first step in reclaiming your revenue is identifying exactly why it’s being withheld. Contact the operator or payment company to get clarity on the reason for the suspension, whether it's a title dispute, missing documentation, or a legal complication. If a title dispute is causing the delay, consult a title attorney to obtain a certified title opinion or necessary legal documentation. This step ensures that your claim is substantiated and speeds up the resolution process.
Missing paperwork should be completed and submitted promptly, while any legal matters must be addressed before funds can be released. Follow up consistently, document all correspondence, and escalate when necessary to ensure progress. Operators may have multiple accounts to manage, so persistence can make a difference in getting your revenue released. Once all issues are resolved, the rightful owner will receive payment.
What Are Escheated Funds?
If you’ve lost track of your mineral royalties, they may have already been turned over to the state—and you might still be able to reclaim them. Hundreds of millions of dollars in mineral royalties go unclaimed each year, often due to outdated contact information, lost records, or lack of awareness of ownership rights.
Escheated funds refer to mineral royalties that have been transferred to state control because the rightful owner could not be found or did not claim them within the legally defined period. This typically happens when mineral owners fail to update their records, move without notifying the operator, or pass away without a clear succession plan. To begin reclaiming escheated funds, first identify the appropriate state agency responsible for unclaimed property—typically the state treasurer’s office or a similar government entity. Most states provide searchable online databases where mineral owners can check if they have unclaimed funds.
If your name appears, submit a claim with proof of identity and mineral rights ownership. Some cases may require additional legal documents, such as probate records or affidavits of heirship. Processing times vary by state and can range from a few weeks to several months, depending on the complexity of the claim. If nothing appears in the initial search, mineral owners should check periodically, as records are frequently updated. In cases where a search yields no results, reaching out to the state agency directly can provide additional guidance on the next steps.
Tips for Mineral Owners
To avoid issues with suspended revenue and escheated funds, mineral owners should:
- Keep Records Updated: Ensure all ownership records and contact information are current and accurate.
- Communicate Regularly: Maintain regular communication with the operator or the company managing your mineral rights.
- Seek Legal Advice: Consult with an attorney or your management company specializing in mineral rights to promptly address any legal issues or disputes.
- Monitor Unclaimed Property Databases: Periodically check state unclaimed property databases to ensure no funds have been escheated without your knowledge.
How SS&C Innovest Can Help
Every day, unclaimed mineral revenue sits in limbo—don’t let yours be part of it. SS&C Innovest actively tracks and recovers mineral revenue before it’s lost. Our team not only tracks and recovers mineral revenue but ensures ongoing management, so your wealth keeps working for you. With our technology and expertise, you can stop worrying about lost revenue and start maximizing your mineral wealth.
To learn more about how SS&C Innovest can support your business needs, call (800) 727-0605 or email info@advent.com.
