Royalties held in suspense
Is an operator holding your royalties?
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EXAMPLE LETTER FROM AN OPERATOR
Our records show that the owner of record has passed awaythe reason. We are holding royalty payments for this owner, a balance of $1,284.10what it says it holds, until we receive the documents below.
- A certified copy of the death certificatewhat to send
- An affidavit of heirship or letters testamentary
- A completed Form W-9 for each heir
Please respond by October 30, 2026answer by so that we can resume payment.
Four things to find in any of these letters.
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Read your letter
Copy the words of it into the box. This page reads them in your browser. Nothing is sent to us or anyone else.
What it says will show here.
The reason it gives, the papers it wants, the balance and the date, each with the words of the letter that show it.
What operators write
The reasons operators give
| The letter says | In plain English | Statute | It usually asks for |
|---|---|---|---|
| The owner has died | The operator says its record shows the owner has died, so it needs proof of who inherits before it can pay. | §91.402(b)(1)(B)§91.402(b)(1)(C) | A death certificate, papers that show the heirs (an affidavit of heirship, a court judgment or the probated will), a W-9 and a signed division order from each heir. |
| A title question | The operator says something about who owns the interest has to be settled, or its title opinion asks for a document, before it pays. | §91.402(b)(1)(A)§91.402(b)(1)(C)§91.402(b-1) | The papers the operator's title opinion lists: a deed, an assignment, a probate order. |
| A division order is missing | The operator says it has not received your signed division order, and it is holding payment until it does. | §91.402(c)§91.402(e) | A signed division order. Under section 91.402(e) an owner who will not sign one with extra terms cannot be held for that alone. |
| A tax form is missing | The operator says it needs a taxpayer identification number (a W-9) before it can pay. | §91.402(c)(1)(E) | A Form W-9 with a name, tax classification, address and number. |
| They cannot reach you | The operator says mail came back or it does not have a current address for you. | §91.402(b)(1)(C) | A current mailing address in writing. |
| A lien or a court order | The operator says a lien or an order against the owner (a child support lien, for example) affects payment. | §91.402(b)(2) | The lien or order has to be released or paid. The operator holds until it is. |
| The balance is small | The operator says the amount is below its minimum for sending a check, so it is saving payments up. | §91.402(f) | Nothing. Up to twelve months of payments may be saved for a balance of $100 or less, and under $10 may wait until production ends. |
| They cannot match you to the record | The operator says the name, signature or ownership on its record does not match what it holds for you. | §91.402(b)(1)(B) | Papers that connect the name on the record to yours: a marriage record, a name-change order, an ID. |
A reason is not a ruling
What the statute says
Holding money, interest and the state
1
The statute names the reasons
A payor may hold without interest past the deadline when there is a title dispute, reasonable doubt that the payee has clear title or sold its share, a title opinion requirement about the payee’s identity or whereabouts that a reasonable request has not cured, or a child support lien. NRC §91.402
2
Interest waits for the reason to end
Late interest is two percentage points above the rate the New York Federal Reserve Bank charges depository institutions on loans, unless a written agreement sets another. It does not apply while payment is withheld for one of those conditions. For any other reason it runs from when the time limit passes. NRC §91.403
3
Delivery to the state stops it
The duty to pay interest ends when the payor delivers the proceeds and the interest to the Comptroller. Mineral proceeds unclaimed for three years are presumed abandoned. NRC §91.403 Prop. Code §75.101
Two more that come up
- A division order may carry an authorization to suspend payment until a title dispute or adverse claim is resolved. NRC §91.402
- An owner who will not sign a division order with terms beyond the statute’s list cannot be held for that alone. One that has only the listed terms can be held without interest until it is signed. NRC §91.402
Small balances
A payor may pay once a year, for up to twelve months saved up, when it owes a total of $100 or less. Under $10 it may hold until production ends or its duty to pay ends. NRC §91.402
Step by step
How to get held royalties released
Step 1: Find the reason and the list
Read the letter for the reason it gives and the papers it asks for. The reader above marks both. If the letter gives no reason, that is the first question to ask.
Step 2: Send what it asks for
Use certified mail with a return receipt. Send copies, not originals, and keep a copy of every page. Ask the operator to confirm in writing what it has received.
Step 3: Ask for the balance, month by month
In the same letter ask for the total held, the months it is made of and the reason for each month. A payor that gets a certified request about a payment must answer by certified mail within 30 days. NRC §91.505
Step 4: Write down every contact
Date, who you spoke to, what was said, what was promised and by when.
Step 5: When the papers are complete, ask for release and interest
Ask for the money it held and for interest from the day the condition ended. NRC §91.403
Step 6: If it does not answer, give the written notice
Section 91.404 asks for written notice by mail before a suit for nonpayment. The payor has 30 days after it receives it to pay or state a reasonable cause. NRC §91.404
WHAT TO KEEP FOR EACH CASE
- The operator's letter or email, and the envelope
- Each paper you sent, and the certified mail receipt
- The date the operator received it
- Its answer, and the date of the answer
- The balance it says it holds, and as of when
- Every phone call: date, name, what was said
Keep the operator’s figure apart from your own.
The suspense tracker in your Mineral File does this for you: you upload the operator’s letter, it lists the reason and the papers, keeps what you sent and what is outstanding, writes the follow-up letters and builds the evidence pack in date order. The balance the operator states is kept apart from anything we estimate.
Related
Keep going
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- HelpInherited mineral rightsWhat to do, in order, after a family member's death.
- HelpAffidavit of heirship for oil and gasWhich papers prove who inherited, and how to record them.
- HelpTexas division ordersWhat you may sign, what you may refuse, what to check.
- HelpUnclaimed royaltiesHow royalties reach the Comptroller and how to claim them.
FAQ
Questions people ask
What does royalties in suspense mean?
It means the operator owes you a royalty and is keeping it in an internal account instead of paying it. The word is industry usage. Chapter 91 of the Natural Resources Code speaks of payments that are "withheld or suspended" and lists the conditions that allow it. The money is still yours while it is held.
Can an operator hold my royalties in Texas?
For the reasons in section 91.402(b), yes, and without interest past the payment deadline: a dispute about title, reasonable doubt that you have clear title or sold your share, a title opinion requirement about who or where you are that a reasonable request has not cured, or a child support lien. A division order that carries the statutory suspense clause can also let it hold until a title dispute is settled. If you refuse a division order that has terms beyond those the statute allows, the operator may not hold payment only for that refusal.
Do I get interest on royalties held in suspense?
Not while they are held for one of the conditions in section 91.402. Section 91.403(b) says interest does not apply where payments are withheld or suspended for those conditions. If the money is late for any other reason, interest runs from the end of the payment deadline at two percentage points above the rate the New York Federal Reserve Bank charges depository institutions on loans, unless a written agreement sets a different rate.
How long can an operator hold my money?
The sections of chapter 91 we read set no end date for a hold. It lasts as long as the condition does. Mineral proceeds that stay unclaimed for longer than three years after they became payable are presumed abandoned under Property Code section 75.101, and a holder reports and delivers them to the Comptroller by July 1.
The owner died. What does the operator need?
Operators usually ask for a certified death certificate, the papers that show who the heirs are (a probated will, a court judgment of heirship or a recorded affidavit of heirship), a Form W-9 and a signed division order for each heir. Each operator sets its own list, so write and ask for it. Once the papers are in, ask what it held from the date of death and for interest from the day the condition ended.
How do I find out how much is in suspense?
Ask in writing, by certified mail. Under section 91.505 a payor that gets a certified-mail request about a payment must answer by certified mail within 30 days of receiving it. Ask for the total held, the months it is made of, and the reason for each month.
What if the operator does not answer?
Section 91.404 requires you to give the payor written notice by mail of the failure to pay before you start a lawsuit for nonpayment. The payor then has 30 days after it receives the notice to pay what is due or to state in writing a reasonable cause for not paying. A suit lies in the county where the well is. If a suit is filed under the subchapter, the court includes reasonable attorney's fees in a judgment for the plaintiff, and raises damages under $200 to $200.
Is suspense the same as unclaimed property?
No. Suspense is the operator holding your money for a reason it gives you. It becomes unclaimed property only if it stays unclaimed for three years after it became payable and the operator hands it to the Comptroller, where you can still claim it with no deadline.
Keep the whole case in one place.
Upload the letter and the papers you sent. We keep the dates and write the next letter.
Sources
Primary sources, opened on 29 September 2026. Statute text is the current version on statutes.capitol.texas.gov.
- Texas Natural Resources Code §91.401, definitions of payee, payor and division order
- Texas Natural Resources Code §91.402, time for payment of proceeds and division orders
- Texas Natural Resources Code §91.403, interest on late payments
- Texas Natural Resources Code §91.404, notice before a suit for nonpayment
- Texas Natural Resources Code §91.406, attorney's fees and the $200 minimum award
- Texas Natural Resources Code §91.505, other information requests
- Texas Property Code §75.101, presumption of abandonment for mineral proceeds
- Texas Property Code §75.001, what counts as mineral proceeds
- Texas Property Code §74.101, holder reports due July 1