Oil & Gas: Unique Solutions for a Unique Industry
Unclaimed property compliance for oil and gas companies can be an especially complex process due to various industry-specific nuances and intricacies. Exclusive property types, such as mineral interest proceeds and royalty payments, title disputes, and operationally-intensive state requirements all contribute to the uniqueness of the industry and its unclaimed property challenges.
Keane offers a full suite of services to help oil and gas companies comply with state unclaimed property laws in a cost effective manner.
Annual Compliance Reporting
Keane’s outsourced annual compliance reporting services allow organizations to conduct compliant and accurate filings on time, every time. Leveraging our proprietary unclaimed property rules engine, a dedicated Compliance Team, and a team of highly-qualified specialists, Keane manages the entire unclaimed property reporting and escheat process. Keane identifies escheatable property, conducts state-mandated due diligence, and prepares final reports on behalf of our clients – freeing your internal resources for other activities that are more strategic to your business.
Current Pay Analysis
One of the reasons why unclaimed property reporting can be difficult for oil and gas companies is the use of “Current Pay” statutes, used by more than 25 jurisdictions. These state laws mandate that when one mineral interest is presumed abandoned and required to be escheated, any other outstanding mineral interests owed to the same owner are also to be presumed abandoned – regardless of the statutory dormancy period of each individual mineral interest.
As part of our unclaimed property services for oil and gas companies, our specialists can perform a current pay rule analysis on your potential escheat population, applying all appropriate current pay statutes and ensuring all eligible property is reported.
Specialized Consulting Services
Like many other industries, the oil & gas industry has seen a significant increase in the number of unclaimed property audits conducted by states and their third-party auditors. Through proven processes and a nationally-recognized team of unclaimed property advocates, Keane offers a range of specialized consulting services to help oil and gas companies solve their compliance challenges.
For companies currently under examination, Keane provides audit assistance and support to provide guidance from kickoff through completion – working in collaboration with both in-house and outside counsel to achieve more favorable results.
If you fear an audit is imminent or want to establish a proactive compliance program, Keane performs comprehensive risk assessments and liability analyses to quantify any potential audit exposures and remediate them through targeted outreach or state voluntary disclosure agreement programs.
Royalty Owner Location and Communication Programs
As part of the recent surge in audits, certain auditors have attempted to apply the Social Security Death Master File (DMF) as a tool to identify deceased mineral interest owners and other potentially past-due property and liabilities. A proactive approach to mitigate these hidden risks and liabilities includes identifying and locating owners of past-due property or whose assets are at risk of escheatment.
Keane’s royalty owner location and communication programs identify deceased, lost, or missing mineral rights owners and provide them with an opportunity to update or remedy the account. These highly customizable programs are not only an effective way to remediate compliance liabilities and lessen the imposition of interest and penalties, but also to reduce the impact of estimation in audit situations.
For more insight on unclaimed property issues within the Oil & Gas industry, visit our Unclaimed Property Blog.
To learn more about Keane’s services to the Oil & Gas industry, please contact us at 800-848-8896, or email us at Questions@KeaneUP.com.