Arkansas Code § 18-28-403 - Abandoned Mineral Proceeds -- Disposition of Funds

(a) (1) (A) All mineral proceeds that are held or owing by the holder and that have remained unclaimed by the owner for longer than three (3) years after the mineral proceeds became payable or distributable are presumed abandoned.

(B) Abandoned mineral proceeds are subject to the unclaimed property provisions of the Unclaimed Property Act, ยง 18-28-201 et seq., except that funds received by the Auditor of State under this section shall be deposited by the Auditor of State into a special trust fund to be known as the "Abandoned Mineral Proceeds Trust Fund".

(C) Such funds shall be deposited into accounts in one (1) or more financial institutions authorized to do business in this state, to be administered in accordance with the laws of this state pertaining to the appropriation, administration, and expenditure of cash funds.

(2) (A) However, upon petition of the county attorney of the county in which the abandoned minerals were produced or severed, abandoned mineral proceeds that are held pursuant to leases executed by receivers or their successors appointed by a court of proper jurisdiction, shall be remitted by the holder to the county in which the minerals were produced or severed and deposited into the county general fund.

(B) The county attorney shall publish notice of his or her petition in a legal newspaper having general circulation in the county, and the notice shall be published at least one (1) time.

(3) The holder of abandoned mineral proceeds turned over to the Auditor of State under this section shall provide the following information to the Auditor of State:

(A) The name and last known address of the property owner;

(B) The applicable well name, uncontrolled lease name, or unitized area name as recognized by the Oil and Gas Commission;

(C) Either:

(i) The county, section, township, and range of the well; or

(ii) The county, section, township, and range from which the abandoned minerals were severed or produced; and

(D) Any other information required by the Auditor of State.

(b) The Abandoned Mineral Proceeds Trust Fund shall be used by the Auditor of State to pay the claims of persons establishing ownership of mineral proceeds in possession of the state under this subchapter and for the enforcement and administration of this subchapter. At least one (1) time each fiscal year, the Auditor of State shall transfer to the County Aid Fund in the State Treasury all funds in the Abandoned Mineral Proceeds Trust Fund in excess of an amount determined by the Auditor of State to be sufficient to pay the anticipated expenses and claims of the Abandoned Mineral Proceeds Trust Fund.

(c) (1) Funds credited to the County Aid Fund pursuant to the provisions of this subchapter shall annually be equally distributed among all the counties in the state by the Treasurer of State.

(2) All funds remitted to the respective counties shall be credited to the county general fund.

Section: Previous  18-28-402  18-28-403  18-28-404    Next

Last modified: November 15, 2016