{"data":{"id":"us-ok/okla.-stat.-tit.-52-52-570.4","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 52, § 52-570.4","heading":"Sharing of and payment of proceeds - Operator's capacity","body":"and duties - Alternative royalty disbursement procedure.\n\nA. In each month, each royalty interest owner shall share in\n\nall proceeds derived from the sale of gas production from a well to\n\nthe extent of such owner's royalty interest in that well without\n\nregard to the identity of the producing owners during that period.\n\nB. Each producing owner shall pay or cause to be paid to the\n\noperator the royalty share of its gas sales proceeds, valued\n\naccording to such producing owner's lease terms or Corporation\n\nCommission forced pooling order, from all gas produced from the well\n\nby such owner during any month. The operator shall thereupon pay or\n\ncause to be paid such royalty proceeds to each royalty interest\n\nowner in the well in accordance with the proportionate royalty share\n\nowned by each royalty interest owner. The payment of such proceeds\n\nshall be accompanied by the information set out in Section 12 of\n\nthis act.\n\nC. The operator shall act solely in a ministerial capacity when\n\nperforming functions on behalf of others pursuant to this act. The\n\noperator shall have discharged its duties to pay royalty proceeds\n\nunder this act when it remits to the royalty interest owner such\n\nroyalty proceeds that the operator has received from an owner\n\npursuant to this act. In the absence of a division order signed by\n\na royalty interest owner, an operator in distributing or causing to\n\nbe distributed the royalty proceeds on gas production to that\n\nroyalty interest owner shall be entitled to rely on royalty\n\nownership and remittance information provided by the working\n\ninterest owner burdened by such royalty interest. Working interest\n\nowners shall be solely liable for mispayments caused by their errors\n\nin or omissions of royalty ownership and remittance information on\n\nthe royalty interests burdening them. When collecting and\n\ndisbursing royalty funds and reporting pursuant to Section 12 of\n\nthis act, the operator shall be entitled to rely on information\n\nprovided to it by or on behalf of another producing owner.\n\nD. As an alternative to the royalty disbursement procedure set\n\nforth in subsection B of this section, a producing owner shall have\n\nthe right to pay or cause to be paid the royalty share of its gas\n\nsales from gas produced by such owner during any month directly to\n\nall royalty interest owners according to their proportionate royalty\n\nshares in such well, contingent upon the following:\n\n1. Such producing owner shall be solely liable for all errors\n\nin and omissions of payment that it makes of royalty proceeds;\n\n2. Such producing owner shall make written report to the\n\noperator within thirty (30) days of the date of such payment of all\n\ninformation relating to such payments, including the information\n\nspecified by Section 12 of this act;\n\n3. Such producing owner shall give to the operator not less\n\nthan sixty (60) days' written notice prior to initiating or\n\nterminating this alternate royalty disbursement procedure; provided,\n\nhowever, any owner terminating this alternate royalty disbursement\n\nprocedure may not reinitiate such procedure for twelve (12) months\n\nfrom the effective date of such termination;\n\n4. Such producing owner shall solely bear all additional costs\n\nincurred by the operator or itself because of its initiation,\n\nutilization or termination of this alternative royalty payment\n\nprocedure; and\n\n5. Such producing owner shall provide or cause to be provided\n\nto the royalty interest owners for each month such producing owner's\n\nproportionate production interest, and the information required\n\nunder Section 12 of this act.","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":"2b7dd82d2cf08055e2ab5c71155367b9fce6e68a0f8ce67e59dd44c5855ffcf3","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-52-52-570.3","next":"us-ok/okla.-stat.-tit.-52-52-570.5"},"notice":"GroundRules: Original legal text. Not legal advice."}