Hello Forum, Does anyone know if OK operators have a time limit as to when they must pay revenues after a well is completed? In my case, well was completed in May, 2018, a lateral that included unitization of 2 sections. I’ve not yet received a Division Order but am copied in on production data. I know operators’ land department is busy but the clock continues. Should I contact OCC, an attorney or just be patient if there’s nothing to be gained from outside exposure. Any suggestions greatly appreciated.
Not sure about OK but I think TX is 6 months before they start accruing interest on late payments.
Hello I am in the same situation. They owe interest ,I think 12% , after 6 months of first sales of production. I have been waiting for a year for EOG resources to send me division orders. Running out of patience. I have 5 wells over 2 sections in McClain Co.
Title 52. Oil and Gas
Chapter 13A - Production Revenue Standards Act
Section 570.10 - Proceeds from Sale of Production
Title 52 Oklahoma Statute Section 570.10 Production Revenue Standards Act generally requires payment within 6 months assuming no title issue. If not timely paid interest:
- 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.
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Yes they have 6 months to pay or they have to pay interest on your money
The clock starts ticking at first sales, not first production. Also, realize that if the first sales start after the check cut date for the company, it may roll into the next month. I don’t worry about that. If you have wells that are multi-unit, it can take extra time to do the title work because each section has hundreds of owners. I usually wait until about eight months after first sales and then send a certified return receipt letter (so I have a paper trail) to the Division Order analyst for the company and request my interest and status of the Division order. (Sometimes you might be in suspended status for a title issue that you have to correct, or they do not have your correct address.) You usually have to ask for the interest as the sometimes “forger” to send it. Often, they will get that first check out and the interest is in the second check.