Royalty

Patriot has not sent royalities out this month. They customarily arrive on the 22nd. When I call I am told “tomorrow” but alas, tomorrow comes alone. Do I have any recourse? I have lots of bills and am not getting a straight answer.

Periodic minor delays in payments are not unusual if an oil company is switching to a new oil buyer, changing their accounting software, changing banks, assigning the lease to a new operator, etc... Unless you had a specific clause in your lease creating a window in which royalties must be paid, then you'll likely need to wait a bit longer before you have some recourse. Below is an excerpt from the Texas Natural Resources Code.

Sec. 91.402. TIME FOR PAYMENT OF PROCEEDS. (a) The proceeds derived from the sale of oil or gas production from an oil or gas well located in this state must be paid to each payee by payor on or before 120 days after the end of the month of first sale of production from the well. After that time, payments must be made to each payee on a timely basis according to the frequency of payment specified in a lease or other written agreement between payee and payor. If the lease or other agreement does not specify the time for payment, subsequent proceeds must be paid no later than:

(1) 60 days after the end of the calendar month in which subsequent oil production is sold; or

(2) 90 days after the end of the calendar month in which subsequent gas production is sold.