Bellaire, OH asked in Energy, Oil and Gas for Ohio

Q: Can a person legally cash royalty checks sent by mistake from mineral rights they sold months earlier?

Related Topics:
1 Lawyer Answer
James Tack Jr
James Tack Jr
  • Energy, Oil & Gas Law Lawyer
  • Oklahoma City, OK

A: You need to review your sales contract or mineral deed to determine the effective sate of the transfer. If the revenues are for before the effective date they would belong to you. If after the effective date, they belong to the buyer. If you cash the check and the revenues do not belong to you, it is likely the buyer or oil company will ask for the revenues back. Even if you later repay them, they are likely to have already sent the 1099 information to the IRS and then you will have to explain the issue to the IRS also. If the revenues do not belong to you, you will save yourself future headaches if you send the check back to the oil company with a copy of the mineral deed and tell them to correct their records. If you are unable to determine if the revenues belong to you, you should consult an oil and gas attorney.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.