Bill > HB1371

This bill amends Oklahoma's oil and gas production revenue laws by modifying provisions related to payment of proceeds from oil and gas sales. The legislation addresses how and when proceeds from production sales must be paid to owners, including specific timelines for remittance that vary depending on whether the proceeds are from oil or gas production. The bill introduces a new provision specifically dealing with undeliverable or uncashed physical payment checks, stipulating that interest will not continue to accrue after the check is mailed if it is returned as undeliverable or never cashed by the royalty owner. The bill maintains existing requirements about interest rates for unpaid proceeds, which can range from 6% to 12% per annum depending on circumstances such as title marketability. The legislation also preserves provisions allowing for electronic payment methods with mutual consent and provides flexibility for smaller proceeds amounts, such as allowing annual remittance for proceeds under $100. Importantly, the bill includes protections for first purchasers, working interest owners, and operators regarding their liability in paying proceeds, and it sets clear guidelines for handling situations where title to proceeds is not immediately clear. The changes will become effective on November 1, 2025, giving stakeholders time to prepare for the new regulations.

Agriculture and Natural Resources

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb1371&Session=2600