You are here:

Oil/Gas/Suspended Royalty Payments


Question.How can a gas and oil company hold payments for 5 years before sending them to the state comptrollers office?

It's actually good that they hold them for five years before sending them to the state. That way, for the first five years at least, you are probably due some statutory amount of interest once they figure out it's you they're supposed to be paying. Once it's sent to the state you won't get any interest on what the state holds.

Money can be put in suspense (and often is) if there's some doubt as to whom they should be paying it. If you are not getting paid on a well you think you should be getting paid on call the operator and see if they have you in their "pay deck." If they do, but they've placed the money in a suspense account, ask them why, and what you need to do in order for them to begin paying you (along with any statutory interest that may be due.)

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


All Answers

Answers by Expert:

Ask Experts


Frederick M. Scott


Oil and gas leasing, lease negotiations, how to best deal with the oil and gas companies or their representatives, buying/selling mineral rights, forced-pooling, correlative rights, deeds and conveyances, and "post-production" costs. I am most experienced with Oklahoma properties and laws, but am able to answer questions concerning other oil and gas producing states in many cases.


I am a Certified Professional Mineral Manager (CMM) certified by the National Association of Royalty Owners (NARO) in Tulsa, OK. I am also a Registered Professional Landman (RPL) with the American Association of Professional Landmen (AAPL). I have managed my family's oil and gas properties in Oklahoma for over 10 years and have dealt with many landmen, title analysts, attorneys and other oil and gas professionals in the process. I have written several articles which have appeared in various oil and gas industry magazines and newsletters. I have negotiated and drafted leases, prepared deeds, affidavits, and other legal instruments relating to my own minerals, as well as performed title, legal research, and curative work for same. I have acquired a good deal of knowledge on the subjects of oil and gas law, mineral appraisal, and landwork over the past ten years, and also worked as a professional landman and lease buyer for a time. I've seen the business from "both sides" and therefore feel confident I can help out most of the folks who ask questions in this forum.

National Association of Royalty Owners (NARO); American Association of Professional Landmen (AAPL)

National Association of Royalty Owners "Action Report" (ROAR); NADOA Magazine, The Mineral Hub, Landman Magazine, and several royalty owner association group's newsletters.

Certified Mineral Manager (CMM), Registered Professional Landman (RPL)

©2017 All rights reserved.