Understanding suspense accounts and how to get your royalties released.
Get Your Free Mineral ValuationFew things frustrate mineral owners more than knowing a well is producing on their land—but not receiving royalty checks. If this describes your situation, your royalties are likely in suspense.
Suspended royalties are payments that the operator holds in a special account instead of distributing to you. The money is being collected, just not released. Understanding why royalties get suspended—and how to resolve the issue—can help you get paid.
The operator cannot verify clear ownership. This often happens when minerals passed through multiple generations without proper documentation, or when there are gaps in the chain of title.
The operator doesn't have your current address. Royalty checks sent to old addresses are returned, and funds go into suspense until you update your information.
When a mineral owner dies, royalties are often suspended until the estate is probated and new owners are identified. This is especially common when no will exists.
When multiple heirs claim the same minerals or disagree about ownership percentages, operators suspend payments until the dispute is resolved.
Some operators hold royalties in suspense until you return a signed division order, even though this isn't legally required in most states.
Many operators only cut checks when accumulated royalties reach a minimum amount (often $25-$100). Small interest owners may wait months between payments.
Call the operator's owner relations or revenue department. They can tell you exactly why your funds are in suspense and what documentation they need.
Common documents needed:
Death certificates (for deceased prior owners)
Probate documents or Letters Testamentary
Affidavit of Heirship
Recorded deeds showing ownership transfer
Updated W-9 tax form
Send documents as requested (often by mail or email) and follow up to confirm receipt. Processing can take 30-90 days.
Once resolved, you should receive accumulated royalties plus any statutory interest owed.
If suspended royalties remain unclaimed for too long, they may be turned over to the state:
Timeframes vary by state:
Texas: 3 years
Oklahoma: 5 years
North Dakota: 3 years
Other states: Typically 3-7 years
Once escheated, you can still claim your funds from the state's unclaimed property division, but it adds complexity. It's better to resolve suspense issues promptly.
Search your state's unclaimed property database or use MissingMoney.com to search multiple states at once.
For some mineral owners, suspended royalties are a recurring frustration:
Complex title from multiple generations of inheritance
Small fractional interests barely meeting payment thresholds
Operators changing frequently with new paperwork each time
Living far from the minerals with outdated records
If managing suspended royalties has become an ongoing headache, some owners choose to sell their mineral rights. A sale converts the uncertain stream of royalties into an immediate lump sum, eliminating suspense issues entirely.
Learn what your mineral rights are worth with a free, no-obligation valuation.
Request Your Free ValuationSuspended royalties are payments held by an oil and gas operator instead of being distributed to the mineral owner. The operator places royalties in a "suspense account" when there's an issue preventing payment, such as unclear title, missing contact information, or unresolved ownership disputes.
Common reasons include: title defects or unclear ownership, missing or outdated contact information, unsigned division orders, probate issues after an owner's death, disputes between heirs, minimum payment thresholds not met, or the operator needs additional documentation to verify your ownership.
Contact the operator's owner relations or revenue department to understand why funds are suspended. Provide requested documentation such as death certificates, probate documents, or affidavits of heirship. Once the issue is resolved, the operator should release accumulated funds.
After a period of time (typically 3-7 years depending on the state), unclaimed suspended royalties may be turned over to the state as unclaimed property. You can still claim these funds from the state's unclaimed property division, but it requires additional steps.
Some states require operators to pay interest on suspended royalties after a certain period. Texas, for example, requires interest on royalties held beyond the statutory payment deadline. Check your state's regulations or your lease terms for specific requirements.
Disclaimer: This information is for educational purposes only and should not be considered legal advice. Royalty payment rules vary by state. Consult with a qualified attorney for specific questions about suspended royalties.