Screen Shot 2019-10-29 at 8.44.18 AM

Does It Pay To Be Late?

Did you know that oil & gas operators are required to pay royalty owners interest on late royalty payments? If you receive oil & gas royalties, the operator must pay you within 6 months of the first sale of production and thereafter by the end of the second month following subsequent sales. If they do not pay within this time, you as a royalty owner are owed interest at 12%, compounded annually, on the unpaid royalties. In most cases, even if you are entitled to unpaid interest, the operator may not pay you automatically. You may have to expressly request interest on late payments from the operator. See Oklahoma Statutes Title 52 Section 570.10 for more information. 

Tags: No tags

Comments are closed.