The Oklahoma Senate has unanimously approved legislation formalizing a negotiated agreement between mineral owners and oil and gas producers over interest payments on royalties.
House Bill 1371 updates the Production Revenue Standards Act, aiming to resolve longstanding disputes about how interest is handled when royalty payments are delayed.
Oklahoma Senator Grant Green said the measure reflects years of negotiations between stakeholders on both sides of the issue.
“This legislation has been years in the making,” Green said. “After extensive negotiations with all parties, House Bill 1371 has become a win for mineral owners and the oil and gas producers that make energy Oklahoma’s top industry. This legislation reinforces the fundamental importance of private property rights by ensuring Oklahomans are fairly compensated for their mineral rights. At the same time, it gives industry leaders the regulatory certainty they need to keep growing their businesses.”
The bill clarifies how interest penalties are applied when producers are unable to locate the rightful owner of a mineral interest. It also creates an alternative to lengthy court battles that can delay payments and increase costs.
Under the proposal, a State-Managed Mineral Owner Fund would be established under the oversight of the State Treasurer’s office. The escrow account would hold unclaimed proceeds, allowing mineral owners to recover their payments and accrued interest once ownership is verified.
House Bill 1371 now returns to the House, where it is authored by Oklahoma Representative Anthony Moore.
