{"data":{"id":"us-ok/okla.-stat.-tit.-52-52-570.10","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 52, § 52-570.10","heading":"Payment of proceeds from sale of oil and gas","body":"production.\n\nA. All proceeds from the sale of production shall be regarded\n\nas separate and distinct from all other funds of any person\n\nreceiving or holding the same until such time as such proceeds are\n\npaid to the owners legally entitled thereto. Any person holding\n\nrevenue or proceeds from the sale of production shall hold such\n\nrevenue or proceeds for the benefit of the owners legally entitled\n\nthereto. Nothing in this subsection shall create an express trust.\n\nB. Except as otherwise provided in this section:\n\n1. Proceeds from the sale of oil or gas production from an oil\n\nor gas well shall be paid to persons legally entitled thereto:\n\na. commencing not later than six (6) months after the\n\ndate of first sale, and\n\nb. thereafter not later than the last day of the second\n\nsucceeding month after the end of the month within\n\nwhich such production is sold.\n\n2. Notwithstanding paragraph 1 of this subsection, royalty\n\nproceeds from the sale of gas production from an oil or gas well\n\nremitted to the operator pursuant to subsection B of Section 570.4\n\nof this title shall be paid to persons legally entitled thereto:\n\na. commencing not later than six (6) months after the\n\ndate of first sale, and\n\nb. thereafter not later than the last day of the third\n\nsucceeding month after the end of the month within\n\nwhich such production is sold; provided, however, when\n\nproceeds are received by the operator in its capacity\n\nas a producing owner, the operator may pay the royalty\n\nshare of such proceeds to the royalty interest owners\n\nlegally entitled thereto at the same time that it pays\n\nthe royalty proceeds received from other producing\n\nowners for the same production month, but not later\n\nthan the last day of the third succeeding month after\n\nthe end of the month within which such production was\n\nsold.\n\n3. a. Proceeds from production may be remitted to the\n\npersons entitled to such proceeds annually for the\n\ntwelve (12) months accumulation of proceeds totaling\n\nat least Ten Dollars ($10.00) but less than One\n\nHundred Dollars ($100.00). Amounts less than Ten\n\nDollars ($10.00) may be held but shall be remitted\n\nwhen production ceases or by the payor upon\n\nrelinquishment of payment responsibility.\n\nb. Proceeds totaling less than One Hundred Dollars\n\n($100.00) but more than Twenty-five Dollars ($25.00)\n\nshall be remitted monthly if requested by the person\n\nentitled to the proceeds. Amounts less than Ten\n\nDollars ($10.00) shall be remitted annually if\n\nrequested by the person entitled to the proceeds.\n\nc. Before proceeds greater than Twenty-five Dollars\n\n($25.00) may be accumulated, payor shall provide\n\nnotice to the person owning interest as defined in\n\nSection 570.2 of this title, entitled to such proceeds\n\nthat there is an option to be paid monthly for\n\nproceeds greater than Twenty-five Dollars ($25.00).\n\nSuch notice to the person shall also provide\n\ndirections for requesting monthly payment, and\n\nconstitutes notice to all heirs, successors,\n\nrepresentatives, and assigns of the person.\n\n4. Any delay in determining the persons legally entitled to\n\nproceeds from production caused by unmarketable title shall not\n\naffect payments to persons whose title is marketable, or that\n\nportion of a person's interest which is marketable.\n\nC. 1. A first purchaser that pays or causes to be paid\n\nproceeds from production to the producing owner of such production\n\nor, at the direction of the producing owner, pays or causes to be\n\npaid royalty proceeds from production to:\n\na. the royalty interest owners legally entitled thereto,\n\nor\n\nb. the operator of the well,\n\nshall not thereafter be liable for such proceeds so paid and shall\n\nhave thereby discharged its duty to pay those proceeds on such\n\nproduction.\n\n2. A working interest owner that pays or causes to be paid\n\nroyalty proceeds from production to:\n\na. the royalty interest owners legally entitled thereto,\n\nor\n\nb. the operator of the well,\nwners legally entitled thereto,\n\nor\n\nb. the operator of the well,\n\nshall not thereafter be liable for such proceeds so paid and shall\n\nhave thereby discharged its duty to pay those proceeds on such\n\nproduction.\n\n2. A working interest owner that pays or causes to be paid\n\nroyalty proceeds from production to:\n\na. the royalty interest owners legally entitled thereto,\n\nor\n\nb. the operator of the well,\n\nshall not thereafter be liable for such proceeds so paid and shall\n\nhave thereby discharged its duty to pay those proceeds on such\n\nproduction.\n\n3. An operator that pays or causes to be paid royalty proceeds\n\nfrom production, received by it as operator, to the royalty interest\n\nowners legally entitled thereto shall not thereafter be liable for\n\nsuch proceeds so paid and shall have thereby discharged its duty to\n\npay those proceeds on such production.\n\n4. Where royalty proceeds are paid incorrectly as a result of\n\nan error or omission, the party whose error or omission caused the\n\nincorrect royalty payments shall be liable for the additional\n\nroyalty proceeds on such production and all resulting costs or\n\ndamages incurred by the party making the incorrect payment.\n\nD. 1. Except as otherwise provided in paragraph 2 of this\n\nsubsection, where proceeds from the sale of oil or gas production or\n\nsome portion of such proceeds are not paid prior to the end of the\n\napplicable time periods provided in this section, that portion not\n\ntimely paid shall earn interest at the rate of twelve percent (12%)\n\nper annum to be compounded annually, calculated from the end of the\n\nmonth in which such production is sold until the day paid.\n\n2. a. Where such proceeds are not paid because the title\n\nthereto is not marketable, such proceeds shall earn\n\ninterest at the rate of (i) six percent (6%) per annum\n\nto be compounded annually for time periods prior to\n\nNovember 1, 2018, and (ii) the prime interest rate as\n\nreported in the Wall Street Journal for time periods\n\non or after November 1, 2018, calculated from the end\n\nof the month in which such production was sold until\n\nsuch time as the title to such interest becomes\n\nmarketable or the holder has received an acceptable\n\naffidavit of death and heirship in conformity with\n\nSection 67 of Title 16 of the Oklahoma Statutes, or as\n\nset forth in subparagraph b of this paragraph.\n\nMarketability of title shall be determined in\n\naccordance with the then current title examination\n\nstandards of the Oklahoma Bar Association.\n\nb. Where marketability has remained uncured, or the\n\nholder has not been provided an acceptable affidavit\n\nof death and heirship in conformity with Section 67 of\n\nTitle 16 of the Oklahoma Statutes, for a period of one\n\nhundred twenty (120) days from the date payment is due\n\nunder this section, any person claiming to own the\n\nright to receive proceeds which have not been paid\n\nbecause of unmarketable title may require the holder\n\nof such proceeds, or the holder of such proceeds may\n\nelect, to interplead the proceeds and all accrued\n\ninterest into court for a determination of the persons\n\nlegally entitled thereto. Upon payment into court the\n\nholder of such proceeds shall be relieved of any\n\nfurther liability for the proper payment of such\n\nproceeds and interest thereon.\n\nE. 1. Except as provided in paragraph 2 of this subsection, a\n\nfirst purchaser or holder of proceeds who fails to remit proceeds\n\nfrom the sale of oil or gas production to owners legally entitled\n\nthereto within the time limitations set forth in paragraph 1 of\n\nsubsection B of this section shall be liable to such owners for\n\ninterest as provided in subsection D of this section on that portion\n\nof the proceeds not timely paid. When two or more persons fail to\n\nremit within such time limitations, liability for such interest\n\nshall be shared by those persons holding the proceeds in proportion\n\nto the time each person held such proceeds.\nh in paragraph 1 of\n\nsubsection B of this section shall be liable to such owners for\n\ninterest as provided in subsection D of this section on that portion\n\nof the proceeds not timely paid. When two or more persons fail to\n\nremit within such time limitations, liability for such interest\n\nshall be shared by those persons holding the proceeds in proportion\n\nto the time each person held such proceeds.\n\n2. When royalty proceeds on gas production are remitted\n\npursuant to subsection B of Section 570.4 of this title:\n\na. A first purchaser that causes such proceeds to be\n\nreceived by the operator or by a producing owner in\n\nthe well for distribution to the royalty interest\n\nowner legally entitled thereto within the first month\n\nfollowing the month in which such production was sold\n\nshall not be liable for interest on such proceeds.\n\nb. A producing owner receiving royalty proceeds that\n\ncauses such proceeds to be received by the royalty\n\ninterest owner legally entitled thereto or by the\n\noperator for distribution to the royalty interest\n\nowner legally entitled thereto not later than the end\n\nof the first month following the month in which\n\nproceeds for such production was received by the\n\nproducing owner from the purchaser shall not be liable\n\nfor interest on such proceeds.\n\nc. An operator receiving royalty proceeds that causes\n\nsuch proceeds to be received by the royalty interest\n\nowner legally entitled thereto, not later than the end\n\nof the first month following the month in which\n\nproceeds for such production was received by the\n\noperator from the purchaser or producing owner, shall\n\nnot be liable for interest on such proceeds.\n\nd. Liability for interest provided in subsection D of\n\nthis section shall be borne solely by the person, or\n\npersons, failing to remit royalty proceeds within the\n\ntime limitations set forth in subsection B of this\n\nsection. When two or more persons fail to remit\n\nwithin such time limitations, liability for such\n\ninterest shall be shared by such persons in proportion\n\nto the time each person held such proceeds.\n\nF. Nothing in this section shall be construed to impair or\n\namend existing or future contractual rights provided for in gas\n\nbalancing agreements or other written agreements which expressly\n\nprovide for the taking, sharing, marketing or balancing of gas or\n\nthe proceeds therefrom. Any proceeds to be paid pursuant to any\n\nsuch agreement shall not commence to earn interest until the sooner\n\nof the time provided in such agreement for the payment of such\n\nproceeds or ninety (90) days from the date of the depletion of the\n\nwell. Nothing herein shall be deemed to alter or limit the payment\n\nof royalty proceeds as provided in the Production Revenue Standards\n\nAct.\n\nG. All payments under the Production Revenue Standards Act to\n\nowners or any other person or governmental entity legally entitled\n\nto the payment may be made by electronic means including but not\n\nlimited to electronic funds transfer, Automated Clearing House\n\n(ACH), direct deposit, wire transfer, or any other similar form of\n\ntransfer, upon the mutual written consent of the payor and payee.","path":["OK Code","Title 52"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os52.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"24bcefd138579f609291f8485a4c05322bfb6f18824aff8de242b40c48d5d132","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-52-52-570.1","next":"us-ok/okla.-stat.-tit.-52-52-570.11"},"notice":"GroundRules: Original legal text. Not legal advice."}