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Escheat Factsheet

Understanding & Simplifying Oil & Gas Unclaimed Property Management

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https://pakenergy.com/resources/factsheet-understanding-simplifying-oil-gas-unclaimed-property-management
The Escheat Process
Team Collaboration Workflows

Track dormancy to document triggers for abandoned property

Team Collaboration Workflows

Send required communication to unclaimed property owners

Team Collaboration Workflows

Advance unclaimed property status based on applicable laws

Team Collaboration Workflows

File notifications and reports to relevant government regulators

TYPES OF UNCLAIMED PROPERTY
  • Lease Bonuses
  • Mineral Interest Royalty Payments
  • Working Interest Production Payments
  • Overriding Royalties
  • Delay Rentals
  • Shut-In Payments
  • Unpaid Wages or Commissions
  • Unreimbursed Expenses
  • AR Balances
  • AR Credit Memos
  • Unidentified Remittances
  • Unresolved AP Balances
SUSPENSE MANAGEMENT

Commonly Escheated Suspense

  • Bad Address
  • Deceased / Probate
  • Unknown Owners
  • No Social Security Number
  • Unsigned Division Order

Historically Excluded Suspense

  • Title Requirement / Title Dispute
  • Litigation
  • Deceased / Probate

ESCHEAT PRIORITY RULES
  • First Priority Rule: The TX v. NJ case established the first priority for remitting unclaimed property to the state of the owner’s last known address.
  • Second Priority Rule: In the absence of the unclaimed property owner's last known residence, the property should be escheated to the holder's state of incorporation.
  • Exception: If the owner's last known address is in a location or country that does not have an applicable escheat law, unclaimed property reverts to the state where holder is incorporated.
DORMANCY & DUE DILIGENCE
  • Each jurisdiction varies, but typically you must send notices to owners no more than 180 days and not less than 60 days before filing deadline
  • Spring dormancy cut-off typically December 31st
  • Summer dormancy cut-off: March 1 (Texas), March 31 (Michigan)
  • Fall dormancy cut-off typically June 30th
Annual Filling Deadlines
Alabama
October 31
Alaska
October 31
Arizona
October 31
Arkansas
October 31
California (remit)
June 15
California (notice)
October 31
Colorado
October 31
Connecticut
March 30
Delaware
March 1
Florida
April 30
Georgia
October 31
Hawaii
October 31
Idaho
November 1
Illinois
April 30
Indiana
October 31
Iowa
October 31
Kansas
October 31
Kentucky*
October 31
Louisiana
October 31
Maine
October 31
Maryland
October 31
Massachusetts
November 1
Michigan
July 1
Minnesota
October 31
Mississippi
October 31
Missouri
October 31
Montana
October 31
Nebraska
October 31
Nevada
October 31
New Hampshire
October 31
New Jersey
October 31
New Mexico
October 31
New York
October 10
North Carolina
October 31
North Dakota
November 1
Ohio
October 31
Oklahoma
October 31
Oregon
November 1
Oklahoma
October 31
Pennsylvania
April 15
Puerto Rico
December 10
Rhode Island
October 31
South Carolina
October 31
South Dakota
October 31
South Dakota
October 31
Tennessee
October 31
Texas
July 1
Utah
October 31
Vermont
April 30
Virgin Islands
October 31
Virginia
October 31
Washington
October 31
Washington DC
October 31
West Virginia
October 31
Wisconsin
October 31
Wyoming
November 1

*Mineral Proceeds Exempt

RULE CHANGES & TRENDS TO TRACK
  • RUUPA: Latest changes add 2 new types of owner activity that show interest in property/exempt from reporting (e-mail and bank withdrawal/deposit)
  • NAUPA III: New standard available in the second half of 2024 but likely to see uneven adoption
  • DOD: Growing use of date of death will bring change to more state filing rules
  • Audits: Increasing activity in Texas, Delaware, Arkansas + more

HOW PAKENERGY HELPS
  • The only energy industry specific unclaimed property management solution
  • Continuously refreshes with latest dormancy rule changes and filing deadlines
  • Tracks owner activity and automates due diligence letters
  • Automatically generates state-specific EDI data files for painless filing

Download Factsheet »

DISCLAIMER: The information provided in this document does not, and is not intended to, constitute legal advice; instead, all information, content, and materials included in this presentation are for informational purposes only. Information contained may not constitute the most up-to-date legal or other information.

Ready to modernize and streamline your Unclaimed Property management operations with The Pak? Get a demo and see how PakEnergy’s purpose-built tech tackles each step in the escheat process, from tracking owners and due diligence to untangling complex dormancy and filing rules. Schedule your demo today!