$15 charge for not having ACH deposits

Have any of you had any luck having an oil company waive the $15 charge per royalty check for receiving a paper check and not having checks direct deposited to your bank? Two years ago, I sent a letter to the company demanding that it stop deducting the $15 per check fee. Not only did I not get a response from the operator, they have not paid me any revenues since that time although the well is producing. My oil and gas assets are in an IRA administered by a trust department at a bank. The trust department does not accept ACH royalty payments.

As an aside, I need to talk to an experienced Oklahoma oil and gas attorney who is familiar with post production deductions. If anyone has any suggestions, I’d appreciate them.

If you are in OK, they are not allowed to do that. There was a previous thread which had a draft letter with the statute quoted. I am looking for it.

I think you asked this same question back in 2023. Here is the answer given then. Also, ask your bank how they handle this for their other clients. Send your request by certified mail return receipt. Demand payment and interest and a paper check and quote the statute under the directions given below.

To Suz, “We just received a letter from a royalty payor on Oklahoma properties informing us that they would be deducting $15 to process a check as a paper check. Our minerals are in a trust administered by a bank who does not accept ACH payments or direct deposit. Is there any statutory authority or Oklahoma case law allowing this deduction? Also, received notice from another payor that the only way to see a check stub is if we sign up for direct deposit. Is anyone else experiencing this?”

We just had an OK NARO board meeting and I asked this question. One of the directors answered and said to send a copy of the OK statute with the pertinent section highlighted and say something along the lines of "I do not agree to the electronic means. I request that I receive a paper check and a complete paper statement without charge. The PSRA (Production Revenue Standards Act) allows for electronic means but only under mutual written consent which I am hereby withholding under Title 52, Chapter 13A Section 570.12. "

Cite as: 52 O.S. § 570.12 (OSCN 2023).

Send by certified mail return receipt so that you have a copy of the letter.

Send the following Statute section in your letter.

PS- I am not giving legal advice but see if this works.

Martha, Thank you for replying again. I did send the suggested letter and not only did the company not respond, they have not paid me since that time. My revenues are on minimum pay status and I’ll probably only get paid once a year. However, this seems to be an ongoing issue with this payor and I would like to see this matter get resolved to benefit other payees also. I own some additional mineral interests and have some questions regarding deductions from some of my other revenue checks Can you suggest a good Oklahoma oil and gas attorney who is familiar with royalty deductions and also title matters?. Thanks again for all of the help that you give Oklahoma mineral owners!

Have you asked the bank how they handle their other clients with the same issue?

The Directories tab above lists attorneys. If they are not in OK, then they may be able to recommend associates in OK.

Martha, Thank you for directing me to the Directories tab for a list of local attorneys. Sorry, I am so late responding. I am like a one armed paper hanger currently. My oil and gas assets are in an IRA administered by the trust department at a local bank. The trust department doesn’t accept direct deposits of oil and gas revenues for any of the clients who hold.oil and gas assets in IRAs which are administered by the trust department.