Royalty payment deductions update to the paper check issue

The topic was closed but I have an update.

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.


Thank you for posting that.

As always, Martha…thanks for the info!

Thanks for this, Martha. We have the same issue currently with a Texas company paying on assets in Baylor County, TX. I have a message in to TX NARO on this. The gentleman there was going to present it to their board to get a consensus but I’ve not heard back yet. Bad enough we already have to bear the cost of printing our check statements, now tney want to nickel and dime us for more.

Interesting to know. Seems most operators have transitioned to EnergyLink/Enverus for providing run check information. It is pretty handy and doesn’t cost anything but some people want to get their check in the mail and the back up that goes with it. I get that. Never heard of a bank not accepting ACH but doesn’t surprise me really. All that aside for an operator to deduct $15 to provide a paper check is crazy! Thanks for the reference!

Martha, thank you so much for the update you provided. It was very timely as I just received another check with a $15.00 deduction. I’ll get a letter off to the payor this weekend including the information you provided.