Due to title ownership issues(they don't honor affavadavits of heirship) that Devon requires before paying out royalty checks we haven't been paid any royalty on a well that had its first sale in March 2014.
Could someone direct me to a link for OCC regulations concerning getting paid interest on delayed royalty payments.I believe the time period states after 6 months from the first sale royalty owners are due interest at a rate of 12% per annum.
Thank You!
Linda,
Ok Statutes: 52-570.10.
Once you read the statute, you will need to know what was the first date of sale. Then it's 6 months from that date, not when the well came in. Then you will need to write the company and request the interest payment.
If you title isn't clear, they can hold the payment till the title is clear and only pay you 6%.
Hope this helps.
http://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=80938
6% if delay is because of title .
Thank you Virginia and Ron..the first oil and gas sale on the section was March 2014 so we should be entitled to 6% interest once we have our quiet title suit completed and submit it to Devon.
Linda
Linda,
That is correct The 6% is like 1/2 % per month as it's not compounded.
Virginia,
No it is compounded.
Where such proceeds are not paid because the title thereto is not marketable, such proceeds shall earn interest at the rate of six percent (6%) per annum to be compounded annually
Linda