In reviewing royalty payment check detail for last year, I find a number of line items with dates all the way back to 2005. Inquiry to royalty owners relation department for this big boy oil co requesting statutory interest be paid, they contend these line items are adjustments and are not subject to statutory interest. Can find nothing in statutes giving them this out. It is true that I did receive royalty payments in the past for the periods in question, but these adjustments on one check equate to normal 12 months royalties. I have requested letter from them reflecting their position.
Anyone got a clue on this?
Thanks
I think the statute is pretty clear, see below. They have to pay within 6 months of first sale and the have 2 months from the end of the subsequent months. Paying a partial payment does not exclude interest on anything except the amount they already paid you. At least that is the way I understand what they are claiming.
Depending on the amount, I'd send a certified letter asking for payment. Or demanding payment within 60 days, with legal action including attorney fees to be requested if not paid. But be prepared to follow through if they don't or don't threaten them with the legal action. I know many that have been asked and have been paid. I wouldn't go through the trouble beyond that unless it was a substantial amount. I've long decided my time, stress, and retaining an attorney is not worth the $$ in some cases.
Oklahoma ยง52-570.10
B. 1. Proceeds from the sale of oil or gas production from an oil or gas well shall be paid to persons legally entitled thereto:
a. commencing not later than six (6) months after the date of first sale, and
b. thereafter not later than the last day of the second succeeding month after the end of the month within which such production is sold.