Oil and Gas; Production Revenue Standard Act; unpaid proceeds; effective date.
What changed between versions
Payment deadlines were adjusted: oil/gas royalties must be paid within 6 months of first sale and monthly thereafter, while gas royalties have a 3-month deadline instead of 2 months.
A minimum payment threshold of $10 was established, with amounts between $10-$100 held until production stops or a $100 threshold is reached.
Payors must now notify owners of the option to receive monthly payments for amounts exceeding $25, with specific instructions for requesting this option.
Monthly payment options must be offered for amounts over $25, with notice sent to all heirs, successors, and assigns of the entitled person.
Liability protections were added for first purchasers and working interest owners who correctly pay royalties to entitled owners or the operator, discharging their duty to pay those proceeds.
Interest penalties for late payments were specified at 12% per annum, compounded annually, calculated from the end of the production month until payment date.
