I have to pay for my rights under statute?

We were recently told by a smaller operator that if we insisted on being paid monthly when our share of production proceeds exceeded $25.00, the operator could legally charge us a fee for changing the pay threshhold. Has anyone ever heard of this? Surely they can’t charge us for their requirement to meet the statute…

Here is that part of the statute. Ask them what section of the statute allows them to charge an extra fee?

2021 Oklahoma Statutes

Title 52. Oil and Gas §52-570.10. Payment of proceeds from sale of oil and gas production.

Universal Citation: 52 OK Stat § 52-570.10 (2021)

A. All proceeds from the sale of production shall be regarded as separate and distinct from all other funds of any person receiving or holding the same until such time as such proceeds are paid to the owners legally entitled thereto. Any person holding revenue or proceeds from the sale of production shall hold such revenue or proceeds for the benefit of the owners legally entitled thereto. Nothing in this subsection shall create an express trust.

B. Except as otherwise provided in this section:

  1. Proceeds from the sale of oil or gas production from an oil or gas well shall be paid to persons legally entitled thereto:
  • a.commencing not later than six (6) months after the date of first sale, and
  • b.thereafter not later than the last day of the second succeeding month after the end of the month within which such production is sold.
  1. Notwithstanding paragraph 1 of this subsection, royalty proceeds from the sale of gas production from an oil or gas well remitted to the operator pursuant to subsection B of Section 570.4 of this title shall be paid to persons legally entitled thereto:
  • a.commencing not later than six (6) months after the date of first sale, and
  • b.thereafter not later than the last day of the third succeeding month after the end of the month within which such production is sold; provided, however, when proceeds are received by the operator in its capacity as a producing owner, the operator may pay the royalty share of such proceeds to the royalty interest owners legally entitled thereto at the same time that it pays the royalty proceeds received from other producing owners for the same production month, but not later than the last day of the third succeeding month after the end of the month within which such production was sold.

3.a.Proceeds from production may be remitted to the persons entitled to such proceeds annually for the twelve (12) months accumulation of proceeds totaling at least Ten Dollars ($10.00) but less than One Hundred Dollars ($100.00). Amounts less than Ten Dollars ($10.00) may be held but shall be remitted when production ceases or by the payor upon relinquishment of payment responsibility.

  • b.Proceeds totaling less than One Hundred Dollars ($100.00) but more than Twenty-five Dollars ($25.00) shall be remitted monthly if requested by the person entitled to the proceeds. Amounts less than Ten Dollars ($10.00) shall be remitted annually if requested by the person entitled to the proceeds.
  • c.Before proceeds greater than Twenty-five Dollars ($25.00) may be accumulated, payor shall provide notice to the person owning interest as defined in Section 570.2 of this title, entitled to such proceeds that there is an option to be paid monthly for proceeds greater than Twenty-five Dollars ($25.00). Such notice to the person shall also provide directions for requesting monthly payment, and constitutes notice to all heirs, successors, representatives, and assigns of the person.
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