Camino is telling me that interest rate is calculated at 12% starting six months after first production date. I understood it to be starting from the first date of sale. Am I correct? Thanks
These days those dates are very close to the same. But 1st sales is the date.
First production date was February 6, 2020. According to Camino, six months from that date they are subject to pay interest. The interest would START after the six months of no payment. They would pay interest starting the date the six months passed up to the date they issued me a check. That would be about a month’s worth of interest. I copied the following from a post I found on this forum. Is this the correct reference for the demand of interest payment at 12%?
§52-570.10. Payment of proceeds from sale of oil and gas production. :: 2014 Oklahoma Statutes :: US Codes and Statutes :: US Law :: Justia 4. with the new section added…D. 1. Except as otherwise provided in paragraph 2 of this subsection, where proceeds from the sale of oil or gas production or some portion of such proceeds are not paid prior to the end of the applicable time periods provided in this section, that portion not timely paid shall earn interest at the rate of twelve percent (12%) per annum to be compounded annually, calculated from the end of the month in which such production is sold until the day paid. 2. a. Where such proceeds are not paid because the title thereto is not marketable, such proceeds shall earn interest at the rate of (i) six percent (6%) per annum to be compounded annually for time periods prior to November 1, 2018, and (ii) the prime interest rate as reported in the Wall Street Journal for time periods on or after November 1, 2018, calculated from the end of the month in which such production was sold until such time as the title to such interest becomes marketable or the holder has received an acceptable affidavit of death and heirship in conformity with Section 67 of Title 16 of the Oklahoma Statutes, or as set forth in subparagraph b of this paragraph. Marketability of title shall be determined in accordance with the then current title examination standards of the Oklahoma Bar Association.
Thank you.
If proceeds aren’t paid within 6 months of 1st sales, they owe interest from 1st sales.
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Thank you so much. I like the way you simplified that. I could not quite think of how to put it clearly.
Camino, well, they made me an offer and I took my ORRI of the market with the offer stating we would close within 30 days pending title verification. They did not follow thru. Just my experience and my family owns interests in 178 sections.
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