What is meant by the term “escheat” and how might it affect mineral rights I may have in a given property?
Escheat is the process by which the state collects money and other property that is presumed abandoned. If you own rights in a producing mineral property but the person responsible for disbursing payment for mineral proceeds cannot identify or locate you, the money ordinarily will be held for you. After three years, however, Texas law requires the money held for you to be delivered to the state comptroller. Your underlying right to further proceeds is also presumed abandoned at that point, and any mineral proceeds that accrue afterward will also be paid to the state.