Can Texas operators force royalty owners to accept payment by ACH ?
I don’t know the answer BUT… Make sure the ACH agreement says that they can ONLY deposit.
1 Like
No they can not force you to do ACH , I’m a paper lady and I receive a paper check monthly to see what their taking out of it . Hope this helps
That may not be correct. There is no law in Texas currently on whether an oil company can force you to use ACH. However, you should always check your lease to see if ACH use is addressed.
Richard Winblad has a good summary on ACH do’s and don’ts. Use the magnifying glass to look it up. The language on the document is critical so that they do not have access to pull money out of your account.
1 Like
Thanks for the info.
Probably not since there is always a possibility that a person does not have a bank account. Some try to charge a fee in order to mail a check and encourage you to accept ACH, but this can be offset by annual/minimum payment requirements. There is a large cost efficiency for the Purchaser to go digital especially when it applies to the smaller royalty checks.
The greater question is why would you not want an ACH deposit? They are more efficient on your side and you will generally receive the funds in a more timely fashion. Check details will most likely be provided through EnergyLink or email. Curious though, I do have Purchaser that pay via ACH and provide a check detail via mail.
This topic was automatically closed after 90 days. New replies are no longer allowed.