Interest Penalty for Late Payment of Royalties (North Dakota)

Royalty Statements
1

Oil from the well in which we have an interest in Williams County, North Dakota was first marketed in March, 2011. We didn't receive our first royalty check until the end of November. I asked the company (Continental Resources) for interest on the oil and gas sold during the months of March-June because these royalties were not received during the 150 day window as specified in the North Dakota Century Code. The company tells me that the clock actually started in August when the well was "released". I'm not sure what this term refers to. In any event, I'm curious whether anyone else has had a similar experience or can tell me when the clock should actually start.

2

150 days from first sales is the law. I have no idea what released might be, possibly off confidential list, or possibly it means their title lawyer finished figuring out who owns what ? In any case, they need to pay within 150 days of first sales, regardless or they owe you interest, unless you have a title defect, in which case they can hold your money forever interest free until you remedy the title defect. Stand firm and get what they owe you.

3

Thanks guys, I appreciate your insight.