Quick answer
Main statute: Virginia Gas and Oil Act, Va. Code Title 45.2, Chapter 16.
| Topic | What the statute says | Citation |
|---|---|---|
| First payment deadline | No statute found | — |
| Later payments | No statute found | — |
| Minimum payment and aggregation | No statute found | — |
| Interest on late payments | No statute found | — |
| Suspense and withheld payments | Pooling: unknown owners' proceeds into Board escrow or the Treasury; conflicting coalbed methane claims escrowed or released under the coalbed methane sections | Va. Code § 45.2-1620(D); 4VAC25-160-90; Va. Code § 45.2-1622(B)(2); Va. Code § 45.2-1622(B)(5); Va. Code § 45.2-1624(A); Va. Code § 45.2-1624(B); Va. Code § 45.2-1624(C) |
| Division orders | No statute found | — |
| Owner remedies, notice and attorney fees | No statute found | — |
| Check-stub disclosures | No statute found | — |
| Unclaimed royalties (escheat) | No mineral-specific period; five years for business-held property | Va. Code § 55.1-2501; Virginia Department of the Treasury, Property Type Chart; Virginia Department of the Treasury, Property Type Chart (MI codes) |
We found no Virginia statute setting a deadline for the first royalty payment after first sale or first production.
What we read: Read the full Virginia Gas and Oil Act (Va. Code Title 45.2, ch. 16, §§ 45.2-1600 to 45.2-1649) and searched it for royalty, statement, accounting, interest, suspense, escrow and day-count deadlines; read the Gas and Oil Board regulations 4VAC25-160 (full chapter, searched the same terms); ran government-law searches of law.lis.virginia.gov for royalty payment timing, interest and statements in Titles 45.2 and 55.1. No payment-timing provision found. Sources read: Code of Virginia, Title 45.2, Chapter 16 (Virginia Gas and Oil Act), full chapter; 4VAC25-160 (Virginia Gas and Oil Board Regulations), full chapter.
We found no Virginia statute setting a deadline for ongoing royalty payments.
What we read: Same as the first payment: Va. Code Title 45.2 ch. 16 and 4VAC25-160 read in full; law.lis.virginia.gov searches in Titles 45.2 and 55.1 found no payment-timing provision. Sources read: Code of Virginia, Title 45.2, Chapter 16 (Virginia Gas and Oil Act), full chapter; 4VAC25-160 (Virginia Gas and Oil Board Regulations), full chapter.
We found no Virginia statute on minimum payments or accumulation of small royalty amounts.
What we read: Read Va. Code Title 45.2 ch. 16 and 4VAC25-160 in full; no minimum-payment / aggregation provision. Sources read: Code of Virginia, Title 45.2, Chapter 16 (Virginia Gas and Oil Act), full chapter; 4VAC25-160 (Virginia Gas and Oil Board Regulations), full chapter.
We found no Virginia statute providing interest specifically on late royalty payments; general statutes on interest in litigation are not covered by this page. (Escrowed coalbed methane proceeds are paid out with accrued escrow interest; see suspense.)
What we read: Read Va. Code Title 45.2 ch. 16 and 4VAC25-160 in full; law.lis.virginia.gov searches for royalty interest provisions returned none. Sources read: Code of Virginia, Title 45.2, Chapter 16 (Virginia Gas and Oil Act), full chapter; 4VAC25-160 (Virginia Gas and Oil Board Regulations), full chapter.
Virginia's suspense and escrow rules arise from pooling. In a pooling order, an owner whose identity and location remain unknown is deemed to lease at a Board-set rate, and that owner's share of proceeds is paid into a Board escrow account and treated as unclaimed property; the operator may instead deposit an unknown lessor's funds with the Treasury's Unclaimed Property Division. For coalbed methane with conflicting ownership claims, proceeds go into a Board escrow account; under § 45.2-1622(B)(5) the Board orders them paid out with accrued interest, less escrow fees, only after a court decision, an arbitration determination or an agreement. Section 45.2-1624 sets separate release routes: for a coalbed methane well force-pooled before July 1, 2015, the Board orders the escrowed principal and interest, less fees, and future royalties paid to each gas claimant named in the pooling order unless the coal claimant provides evidence of a proceeding or agreement within 45 days of the operator's notice of its release application; for a well force-pooled on or after July 1, 2015, the pooling order directs royalties to the gas claimant unless the coal claimant provides that evidence by the pooling hearing. In both cases the Board may delay or must withhold payment to a gas claimant for a gas title conflict, an unknown or unlocatable gas claimant, an unresolved heirship issue, another reason beyond the operator's reasonable control, or missing information. For voluntarily pooled coalbed methane wells, the operator is not required to pay a gas claimant when there is a gas title conflict, an unknown or unlocatable claimant, an unresolved heirship issue, another reason beyond its reasonable control, or missing information, and must give written notice of the reason.
In a pooled unit, an unknown and unlocated owner is deemed to lease at a Board-set rate; the share of proceeds is paid into an escrow account, deemed unclaimed property and disposed of under the Unclaimed Property Act. (Va. Code § 45.2-1620(D))
Statute text “Any gas or oil owner whose identity and location remain unknown at the conclusion of a hearing concerning the establishment of a pooling order for which public notice was given shall be deemed to have elected to lease his interest to the gas or oil operator at a rate to be established by the Board. The Board shall cause to be established an escrow account into which the unknown lessor's share of proceeds shall be paid and held for his benefit. Such escrowed proceeds shall be deemed to be unclaimed property and shall be disposed of pursuant to the provisions of the Virginia Disposition of Unclaimed Property Act (§ 55.1-2500 et seq.).”
The operator may deposit an unknown lessor's funds directly with the Treasury's Unclaimed Property Division. (4VAC25-160-90)
Statute text “When any gas or oil owner's identity and location remain unknown, the operator may, pursuant to § 45.2-1600 of the Code of Virginia, dispose of the unknown lessor's funds directly with the Department of Treasury Unclaimed Property Division to be held and distributed pursuant to the Virginia Disposition of Unclaimed Property Act (§ 55.1-2500 et seq. of the Code of Virginia).”
Where coalbed methane ownership is in conflict, proceeds attributable to the conflicting interests go into a Board escrow account. (Va. Code § 45.2-1622(B)(2))
Statute text “The Board shall cause to be established an escrow account into which the payment for costs or proceeds attributable to the conflicting interests shall be deposited and held for the interest of the claimants.”
Under § 45.2-1622(B)(5), the Board orders escrowed coalbed methane funds paid to conflicting claimants, with accrued interest less escrow fees, only after a court decision, an arbitration determination or an agreement among all claimants; § 45.2-1624 sets separate release routes (below). (Va. Code § 45.2-1622(B)(5))
Statute text “The Board shall order payment of principal and accrued interest, less escrow account fees, from the escrow account to conflicting claimants only after (i) a final decision of a court of competent jurisdiction adjudicating the ownership of coalbed methane gas as between them is issued, (ii) a determination is reached by an arbitrator pursuant to § 45.2-1623, or (iii) an agreement is reached among all claimants owning conflicting estates in the tract in question or any undivided interest therein.”
For a coalbed methane well force-pooled before July 1, 2015, the Board orders the escrowed principal and accrued interest, less fees, and all future royalties paid to each gas claimant identified in the pooling order unless, within 45 days of the operator's notice of its release application, the coal claimant provides evidence of a proceeding or agreement. (Va. Code § 45.2-1624(A))
Statute text “The Board shall order payment of the principal and accrued interest, less escrow account fees, held in escrow, along with all future royalties attributable to the drilling unit, to each gas claimant identified in the pooling order unless, within 45 days of the coalbed methane gas well operator's notice of its application, the coal claimant provides the Board and the coalbed methane gas well operator with evidence of a proceeding or agreement.”
That release procedure applies to coalbed methane wells force-pooled before July 1, 2015. (Va. Code § 45.2-1624(A))
Statute text “For a coalbed methane gas well that was force-pooled prior to July 1, 2015, the coalbed methane gas well operator shall, on or before January 1, 2016, apply to the Board for the release of the funds in escrow”
For a coalbed methane well force-pooled on or after July 1, 2015, the pooling order directs the operator to pay royalties to the gas claimant unless the coal claimant provides evidence of a proceeding or agreement by the time and place of the pooling hearing. (Va. Code § 45.2-1624(B))
Statute text “For a coalbed methane gas well force-pooled on or after July 1, 2015, the Board, in its pooling order, shall direct the coalbed methane gas well operator to pay royalties to the gas claimant unless the coal claimant provides the coalbed methane gas well operator and the Board with evidence of a proceeding or agreement not later than the time and place of the pooling hearing.”
For voluntarily pooled coalbed methane wells, the operator need not pay a gas claimant when there is a title conflict, unknown or unlocatable claimant, unresolved heirship, another reason beyond its reasonable control, or missing information. (Va. Code § 45.2-1624(C))
Statute text “However, the coalbed methane gas well operator shall not be required to make payment to a gas claimant if there exists any gas title conflict, unknown gas claimant, unlocatable gas claimant, unresolved gas heirship issue, or other reason beyond the reasonable control of the coalbed methane gas well operator or if the gas claimant fails to provide the coalbed methane gas well operator with information to process or pay royalties.”
We found no Virginia division-order statute.
What we read: Searched the full text of Va. Code Title 45.2 ch. 16 and 4VAC25-160 for 'division order'; no match. law.lis.virginia.gov searches found no division-order provision. Sources read: Code of Virginia, Title 45.2, Chapter 16 (Virginia Gas and Oil Act), full chapter; 4VAC25-160 (Virginia Gas and Oil Board Regulations), full chapter.
We found no Virginia statute giving royalty owners a notice-and-cure procedure, statutory interest, penalty, attorney fees or lease cancellation for unpaid royalties.
What we read: Read Va. Code Title 45.2 ch. 16 and 4VAC25-160 in full. The only fee-shifting provision found is § 45.2-1624(D), which lets a prevailing coalbed methane gas claimant recover costs and attorney fees from a nonprevailing coal claimant in an ownership proceeding; § 45.2-1624(F) preserves any claim for an accounting. Neither is a general remedy against a payor for late or unpaid royalties. Sources read: Code of Virginia, Title 45.2, Chapter 16 (Virginia Gas and Oil Act), full chapter; 4VAC25-160 (Virginia Gas and Oil Board Regulations), full chapter.
We found no Virginia statute specifying what a royalty payment statement or check stub must show.
What we read: Read Va. Code Title 45.2 ch. 16 and 4VAC25-160 in full and searched for statement, accounting and royalty; the provisions found concern accountings filed with the Board for escrow disbursements (§§ 45.2-1620(D), 45.2-1622(B)(5)) and access for nonleasing owners to unit records submitted to the Director or Inspector (§ 45.2-1620(C)(6)), not statements to royalty owners with each payment. Sources read: Code of Virginia, Title 45.2, Chapter 16 (Virginia Gas and Oil Act), full chapter; 4VAC25-160 (Virginia Gas and Oil Board Regulations), full chapter.
Virginia's unclaimed property act presumes property held or owing in the ordinary course of business abandoned when it remains unclaimed for more than five years after it became payable; the act has no mineral-specific period. The Treasury's holder chart lists royalties and other mineral-proceeds codes without an exception, under a general 5-year rule. Escrowed proceeds of unknown owners in pooled units are deemed unclaimed property by statute (see suspense).
Property unclaimed for more than five years after it became payable is presumed abandoned. (Va. Code § 55.1-2501)
Statute text “All tangible and intangible property, including any income or increment thereon, less any lawful charges, that is held, issued, or owing in the ordinary course of the holder's business and has remained unclaimed by the owner for more than five years after it became payable is presumed abandoned, except as otherwise provided by this chapter.”
The Treasury's holder chart sets a 5-year dormancy period for all property types except governmental agencies (1 year) and employee benefit trust distributions (10 years). (Virginia Department of the Treasury, Property Type Chart)
Statute text “Except where noted, all dormancy periods are 5 years Exceptions for Governmental Agency/Public Corp. or Authority, which is 1 year, and Employee Benefit Trust Distributions, which is 10 years.”
The chart lists royalties, overriding royalties and other mineral-proceeds types under 'Mineral Proceeds & Mineral Interests' with no stated exception. (Virginia Department of the Treasury, Property Type Chart (MI codes))
Statute text “NET REVENUE INTEREST ROYALTIES OVERRIDING ROYALTIES PRODUCTION PAYMENTS WORKING INTEREST BONUSES DELAY RENTALS SHUT-IN ROYALTIES MINIMUM ROYALTIES”
Official unclaimed property search: Virginia Department of the Treasury, Unclaimed Property (vaMoneySearch).
We found no Virginia statute setting a deadline for the first royalty payment after first sale or first production.
We found no Virginia statute setting a deadline for ongoing royalty payments.
We found no Virginia statute on minimum payments or accumulation of small royalty amounts.
We found no Virginia statute providing interest specifically on late royalty payments; general statutes on interest in litigation are not covered by this page. (Escrowed coalbed methane proceeds are paid out with accrued escrow interest; see suspense.)
Virginia's suspense and escrow rules arise from pooling. In a pooling order, an owner whose identity and location remain unknown is deemed to lease at a Board-set rate, and that owner's share of proceeds is paid into a Board escrow account and treated as unclaimed property; the operator may instead deposit an unknown lessor's funds with the Treasury's Unclaimed Property Division. For coalbed methane with conflicting ownership claims, proceeds go into a Board escrow account; under § 45.2-1622(B)(5) the Board orders them paid out with accrued interest, less escrow fees, only after a court decision, an arbitration determination or an agreement. Section 45.2-1624 sets separate release routes: for a coalbed methane well force-pooled before July 1, 2015, the Board orders the escrowed principal and interest, less fees, and future royalties paid to each gas claimant named in the pooling order unless the coal claimant provides evidence of a proceeding or agreement within 45 days of the operator's notice of its release application; for a well force-pooled on or after July 1, 2015, the pooling order directs royalties to the gas claimant unless the coal claimant provides that evidence by the pooling hearing. In both cases the Board may delay or must withhold payment to a gas claimant for a gas title conflict, an unknown or unlocatable gas claimant, an unresolved heirship issue, another reason beyond the operator's reasonable control, or missing information. For voluntarily pooled coalbed methane wells, the operator is not required to pay a gas claimant when there is a gas title conflict, an unknown or unlocatable claimant, an unresolved heirship issue, another reason beyond its reasonable control, or missing information, and must give written notice of the reason. (Va. Code § 45.2-1620(D); 4VAC25-160-90; Va. Code § 45.2-1622(B)(2); Va. Code § 45.2-1622(B)(5); Va. Code § 45.2-1624(A); Va. Code § 45.2-1624(B); Va. Code § 45.2-1624(C))
We found no Virginia division-order statute.
We found no Virginia statute giving royalty owners a notice-and-cure procedure, statutory interest, penalty, attorney fees or lease cancellation for unpaid royalties.
We found no Virginia statute specifying what a royalty payment statement or check stub must show.
Virginia's unclaimed property act presumes property held or owing in the ordinary course of business abandoned when it remains unclaimed for more than five years after it became payable; the act has no mineral-specific period. The Treasury's holder chart lists royalties and other mineral-proceeds codes without an exception, under a general 5-year rule. Escrowed proceeds of unknown owners in pooled units are deemed unclaimed property by statute (see suspense). (Va. Code § 55.1-2501; Virginia Department of the Treasury, Property Type Chart; Virginia Department of the Treasury, Property Type Chart (MI codes))
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Educational only — not legal advice; statutes change, so confirm the current version and consult a qualified attorney for your situation. For a question about a specific payment, consult an attorney licensed in Virginia.
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