Don’t wait for an audit notice. Being proactive can save your company valuable time, money and resources.
With the rise in unclaimed property audits, shrinking dormancy periods, and ever-changing regulations across the 55 reporting jurisdictions, oil & gas companies are having to devote more time and resources than ever to stay on top of complex unclaimed property reporting requirements.
Unclaimed Property Audits and Mineral Proceed Payments
Oil & gas companies are continuing to be targeted for audits and invited into the Delaware Voluntary Disclosure (VDA) program. The largest area of concern is typically royalties held in suspense, but states are also paying more attention to other general ledger property types such as payroll, accounts payable checks and accounts receivable credit balances.
Mineral proceed payments continue to be the most complex area when it comes to unclaimed property compliance for oil & gas companies. The dormancy periods range from one to five years, some states are current pay states while others are not and now four states require the location of the well to be reported under certain circumstances. There is also inconsistency when it comes to state guidance on which suspense codes are escheatable and how royalties should be reported in current pay states. Combine that with systems that are not always geared to track owner activity and you have the perfect compliance storm.
Georgeson can help
Georgeson has a strong track record of providing oil & gas companies with the support necessary to make unclaimed property processes easier to manage, while lowering the level of risk associated with noncompliance. The unclaimed property specialists at Georgeson include some of the most experienced in the oil & gas industry, and our dedicated team of professionals view customer service as our top priority.
Interested in learning more?
Check out our webinar: Drilling into Unclaimed Property – Mineral Proceeds and Beyond