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An Act
ENROLLED HOUSE
BILL NO. 1371 By: Moore, Boles, Sterling,
West (Tammy), and Stark of
the House
and
Green, Mann, Stanley,
Seifried, Thompson, Haste,
Coleman, Hall, Pugh, and
Woods of the Senate
An Act relating to oil and gas; amending 52 O.S.
2021, Section 570.10, which relates to the Production
Revenue Standards Act; modifying amount of interest
earned on certain proceeds; providing for cap of
certain earned interest; providing that certain
proceeds shall not earn interest; requiring
maintenance of certain records; authorizing
remittance of certain proceeds to certain fund;
requiring the Office of the State Treasurer to
establish and administer the Mineral Owner’s Fund;
requiring certain written notice; authorizing
remittance as alternative to filing certain action;
relieving certain liability; authorizing deposit of
certain payments; clarifying certain claiming right;
requiring certain proof of identity and ownership;
requiring certain remittance within certain time
frame; clarifying obligation of payor; amending 52
O.S. 2021, Section 903, which relates to the Energy
Litigation Reform Act; modifying amount of interest
earned on certain proceeds; amending 60 O.S. 2021,
Section 658, which relates to the Uniform Unclaimed
Property Act; stating certain presumption of
abandonment; updating statutory language and
references; and providing an effective date.
SUBJECT: Oil and gas
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
ENR. H. B. NO. 1371 Page 2
SECTION 1. AMENDATORY 52 O.S. 2021, Section 570.10, is
amended to read as follows:
Section 570.10. A. All proceeds from the sale of production
shall be regarded as separate and distinct from all other funds of
any person receiving or holding the same until such time as such
proceeds are paid to the owners legally entitled thereto. Any
person holding revenue or proceeds from the sale of production shall
hold such revenue or proceeds for the benefit of the owners legally
entitled thereto. Nothing in this subsection shall create an
express trust.
B. Except as otherwise provided in this section:
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.
2. Notwithstanding paragraph 1 of this subsection, royalty
proceeds from the sale of gas production from an oil or gas well
remitted to the operator pursuant to subsection B of Section 570.4
of this title 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 third
succeeding month after the end of the month within
which such production is sold; provided, however, when
proceeds are received by the operator in its capacity
as a producing owner, the operator may pay the royalty
share of such proceeds to the royalty interest owners
legally entitled thereto at the same time that it pays
the royalty proceeds received from other producing
owners for the same production month, but not later
than the last day of the third succeeding month after
the end of the month within which such production was
sold.
ENR. H. B. NO. 1371 Page 3
3. a. Proceeds from production may be remitted to the
persons entitled to such proceeds annually for the
twelve (12) months months’ accumulation of proceeds
totaling at least Ten Dollars ($10.00) but less than
One Hundred Dollars ($100.00). Amounts less than Ten
Dollars ($10.00) may be held but shall be remitted
when production ceases or by the payor upon
relinquishment of payment responsibility.
b. Proceeds totaling less than One Hundred Dollars
($100.00) but more than Twenty-five Dollars ($25.00)
shall be remitted monthly if requested by the person
entitled to the proceeds. Amounts less than Ten
Dollars ($10.00) shall be remitted annually if
requested by the person entitled to the proceeds.
c. Before proceeds greater than Twenty-five Dollars
($25.00) may be accumulated, the payor shall provide
notice to the person owning interest, as defined in
Section 570.2 of this title, entitled to such proceeds
that there is an option to be paid monthly for
proceeds greater than Twenty-five Dollars ($25.00).
Such notice to the person shall also provide
directions for requesting monthly payment, and
constitutes notice to all heirs, successors,
representatives, and assigns of the person.
4. Any delay in determining the persons legally entitled to
proceeds from production caused by unmarketable title shall not
affect payments to persons whose title is marketable, or that
portion of a person’s interest which is marketable.
C. 1. A first purchaser that pays or causes to be paid
proceeds from production to the producing owner of such production
or, at the direction of the producing owner, pays or causes to be
paid royalty proceeds from production to:
a. the royalty interest owners legally entitled thereto,
or
b. the operator of the well,
shall not thereafter be liable for such proceeds so paid and shall
have thereby discharged its duty to pay those proceeds on such
production.
ENR. H. B. NO. 1371 Page 4
2. A working interest owner that pays or causes to be paid
royalty proceeds from production to:
a. the royalty interest owners legally entitled thereto,
or
b. the operator of the well,
shall not thereafter be liable for such proceeds so paid and shall
have thereby discharged its duty to pay those proceeds on such
production.
3. An operator that pays or causes to be paid royalty proceeds
from production, received by it as an operator, to the royalty
interest owners legally entitled thereto shall not thereafter be
liable for such proceeds so paid and shall have thereby discharged
its duty to pay those proceeds on such production.
4. Where royalty proceeds are paid incorrectly as a result of
an error or omission, the party whose error or omission caused the
incorrect royalty payments shall be liable for the additional
royalty proceeds on such production and all resulting costs or
damages incurred by the party making the incorrect payment.
D. 1. Except as otherwise provided in paragraph 2 of this
subsection, where proceeds from the sale of oil or gas production or
some portion of such proceeds are not paid prior to the end of the
applicable time periods provided in this section, that portion not
timely paid shall earn interest at the rate of twelve percent (12%)
fifteen percent (15%) per annum to be compounded annually,
calculated from the end of the month in which such production is
sold until the day paid.
2. a. Where such proceeds are not paid because the title
thereto is not marketable, such proceeds shall earn
interest at the rate of (i) six percent (6%) per annum
to be compounded annually for time periods prior to
November 1, 2018, and (ii) the prime interest rate as
reported in the Wall Street Journal for time periods
on or after November 1, 2018, calculated from the end
of the month in which such production was sold until
such time as the title to such interest becomes
marketable or the holder has received an acceptable
affidavit of death and heirship in conformity with
ENR. H. B. NO. 1371 Page 5
Section 67 of Title 16 of the Oklahoma Statutes, or as
set forth in subparagraph b of this paragraph.
Marketability of title shall be determined in
accordance with the then current title examination
standards of the Oklahoma Bar Association. In no case
shall the interest applied under this subparagraph
exceed six percent (6%) per annum, calculated from the
end of the month in which such production is sold
until the day paid.
b. Where marketability has remained uncured, or the
holder has not been provided an acceptable affidavit
of death and heirship in conformity with Section 67 of
Title 16 of the Oklahoma Statutes, for a period of one
hundred twenty (120) days from the date payment is due
under this section, any person claiming to own the
right to receive proceeds which have not been paid
because of unmarketable title may require the holder
of such proceeds, or the holder of such proceeds may
elect, to interplead the proceeds and all accrued
interest into court for a determination of the persons
legally entitled thereto. Upon payment into court,
the holder of such proceeds shall be relieved of any
further liability for the proper payment of such
proceeds and interest thereon.
c. Subject to paragraph 8 of subsection H of this
section, where marketability has remained uncured and
a probate is required to cure, such proceeds shall not
earn interest pursuant to paragraphs 1 and 2 of this
subsection until title is cured and the payor receives
a file-stamped copy of the final decree from the
probate action.
d. Subject to paragraph 8 of subsection H of this
section, proceeds in suspense due to the filing of
statutory liens, or at the written request of the
owner, shall not earn interest pursuant to paragraphs
1 and 2 of this subsection from the date of the
statutory lien filing or written request.
e. Subject to paragraph 8 of subsection H of this
section, where such proceeds are not paid because the
payment was returned to the payor as undeliverable or
the payment check is not cashed by the owner, such
ENR. H. B. NO. 1371 Page 6
proceeds shall not earn interest pursuant to
paragraphs 1 and 2 of this subsection after the date
the check was mailed. The payor shall maintain
records of such mailing dates and copies of any
undeliverable envelopes and payment checks. This
provision shall only apply to payment checks mailed to
an address obtained after good faith and reasonable
diligence by the payor. Any payment made by
electronic means, as authorized by subsection G of
this section, that is refused by an owner shall not
earn interest pursuant to paragraphs 1 and 2 of this
subsection after the date the electronic funds
transfer is initiated.
E. 1. Except as provided in paragraph 2 of this subsection, a
first purchaser or holder of proceeds who fails to remit proceeds
from the sale of oil or gas production to owners legally entitled
thereto within the time limitations set forth in paragraph 1 of
subsection B of this section shall be liable to such owners for
interest as provided in subsection D of this section on that portion
of the proceeds not timely paid. When two or more persons fail to
remit within such time limitations, liability for such interest
shall be shared by those persons holding the proceeds in proportion
to the time each person held such proceeds.
2. When royalty proceeds on gas production are remitted
pursuant to subsection B of Section 570.4 of this title:
a. A first purchaser that causes such proceeds to be
received by the operator or by a producing owner in
the well for distribution to the royalty interest
owner legally entitled thereto within the first month
following the month in which such production was sold
shall not be liable for interest on such proceeds.
b. A producing owner receiving royalty proceeds that
causes such proceeds to be received by the royalty
interest owner legally entitled thereto or by the
operator for distribution to the royalty interest
owner legally entitled thereto, not later than the end
of the first month following the month in which
proceeds for such production was received by the
producing owner from the purchaser, shall not be
liable for interest on such proceeds.
ENR. H. B. NO. 1371 Page 7
c. An operator receiving royalty proceeds that causes
such proceeds to be received by the royalty interest
owner legally entitled thereto, not later than the end
of the first month following the month in which
proceeds for such production was received by the
operator from the purchaser or producing owner, shall
not be liable for interest on such proceeds.
d. Liability for interest provided in subsection D of
this section shall be borne solely by the person, or
persons, failing to remit royalty proceeds within the
time limitations set forth in subsection B of this
section. When two or more persons fail to remit
within such time limitations, liability for such
interest shall be shared by such persons in proportion
to the time each person held such proceeds.
F. Nothing in this section shall be construed to impair or
amend existing or future contractual rights provided for in gas
balancing agreements or other written agreements which expressly
provide for the taking, sharing, marketing or balancing of gas or
the proceeds therefrom. Any proceeds to be paid pursuant to any
such agreement shall not commence to earn interest until the sooner
of the time provided in such agreement for the payment of such
proceeds or ninety (90) days from the date of the depletion of the
well. Nothing herein shall be deemed to alter or limit the payment
of royalty proceeds as provided in the Production Revenue Standards
Act.
G. All payments under the Production Revenue Standards Act to
owners or any other person or governmental entity legally entitled
to the payment may be made by electronic means including, but not
limited to, electronic funds transfer, Automated Clearing House
(ACH), direct deposit, wire transfer, or any other similar form of
transfer, upon the mutual written consent of the payor and payee.
H. 1. Notwithstanding any other provision of this section,
where proceeds from the sale of oil or gas production, or any
portion thereof, together with any interest accrued thereon pursuant
to paragraphs 1 and 2 of subsection D of this section, remain unpaid
for a period of thirty-six (36) months after the date such proceeds
first became due under subsection B of this section and the payor
has had contact with the owner, the payor may remit such proceeds,
together with any accrued statutory interest, to the Mineral Owner’s
Fund established pursuant to Section 553 of this title.
ENR. H. B. NO. 1371 Page 8
2. The Office of the State Treasurer shall establish and
administer a separate escrow account for the receipt and holding of
proceeds and any interest remitted to the Mineral Owner’s Fund
pursuant to paragraph 1 of this subsection. Such escrow account
shall be maintained exclusively for proceeds and any interest due
under paragraphs 1 and 2 of subsection D of this section, and all
amounts deposited therein shall be held in trust for the benefit of
the owners legally entitled thereto. The escrow account shall be
structured in a manner substantially similar to the escrow accounts
established pursuant to Section 552 of this title, including
comparable reporting, recordkeeping, and maintenance requirements;
provided, however, that such escrow account shall be separate and
distinct from any escrow accounts established under Section 552 of
this title for pooled interests of persons who are unknown or cannot
be located. Such escrow account shall be an interest-bearing escrow
account maintained by the Office of the State Treasurer at a
federally insured bank or savings and loan institution.
3. Upon the transfer of an owner’s proceeds and any accrued
interest to such escrow account, the payor shall send written notice
to the last-known address of the owner legally entitled to proceeds
under this section informing the owner such proceeds were remitted
to the Mineral Owner’s Fund pursuant to this subsection and
identifying the statutory basis for such remittal.
4. A payor may, at its sole discretion, remit proceeds and any
accrued interest to the Mineral Owner’s Fund pursuant to this
subsection as an alternative to filing an action in interpleader
under paragraph 2 of subsection D of this section.
5. Upon remittance of proceeds and any accrued interest to the
Mineral Owner’s Fund, the payor shall be relieved of any further
liability for any interest and proceeds remitted under this
subsection, provided the payor has complied with all applicable
requirements of this subsection and section. The owner’s source of
recovery for the proceeds and accrued interest remitted under this
subsection shall be restricted to the Mineral Owner’s Fund.
6. Following remittance of proceeds and any accrued interest to
the escrow account established pursuant to paragraph 2 of this
subsection, the payor may continue to make subsequent payments of
proceeds and any accrued interest owed to the same owner by
directing such payments to the Mineral Owner’s Fund for deposit into
such escrow account on behalf of the owner.
ENR. H. B. NO. 1371 Page 9
7. Nothing in this subsection shall extinguish or impair the
right of any person legally entitled to such proceeds and any
interest to claim and receive the same from the escrow account
established pursuant to paragraph 2 of this subsection, upon
submission of sufficient proof of identity and proof of ownership of
the interest to the Office of the State Treasurer. Such proof of
identity and ownership shall be the same as provided in Section
735:80-7-2 of the Oklahoma Administrative Code.
8. Notwithstanding paragraph 1 of this subsection, where
proceeds are held pursuant to subparagraphs c, d, or e of paragraph
2 of subsection D of this section, such proceeds shall be remitted
to the Mineral Owner’s Fund within one hundred eighty (180) days
after the date such proceeds thereafter become due under subsection
B of this section.
I. Notwithstanding any other provision of this section, nothing
stated herein shall impact a payor’s obligation to remit proceeds
due under this section pursuant to the Uniform Unclaimed Property
Act.
SECTION 2. AMENDATORY 52 O.S. 2021, Section 903, is
amended to read as follows:
Section 903. Except for the right to enforce lien rights under
private agreement or under Sections 548 through 549.12 of Title 52
of the Oklahoma Statutes this title and except where specific
remedies are provided by private agreement, and as long as paragraph
1 of subsection D of Section 570.10 of Title 52 of the Oklahoma
Statutes this title provides for an interest rate equal to or
greater than twelve percent (12%) compounded annually fifteen
percent (15%) per annum, the Production Revenue Standards Act shall
provide the exclusive remedy to a person entitled to proceeds from
production for failure of a holder to pay the proceeds within the
time periods required for payment. The interest amounts set forth
in subsection D of Section 570.10 of this title and the remedies set
forth in subsection C of Section 570.14 of Title 52 of the Oklahoma
Statutes this title, with the term “actual damages” as used therein
being limited to the proceeds due and the interest as provided in
subsection D of Section 570.10 of Title 52 of the Oklahoma Statutes
this title, are deemed to be adequate remedies for failure to pay
proceeds within the time periods required for payment and no other
penalty or damages shall be recoverable in any litigation involving
a claim for unpaid or underpaid proceeds from production including,
ENR. H. B. NO. 1371 Page 10
without limitation, punitive or exemplary damages or disgorgement
damages, unless there shall be a determination by the finder of fact
upon clear and convincing evidence that the holder who failed to pay
such proceeds did so with the actual, knowing and willful intent:
(a) to deceive the person to whom the proceeds were due, or (b) to
deprive proceeds from the person the holder knows, or is aware, is
legally entitled thereto.
SECTION 3. AMENDATORY 60 O.S. 2021, Section 658, is
amended to read as follows:
Section 658. A. Except as otherwise provided in the Uniform
Unclaimed Property Act, all intangible personal property, including
income or increment derived from the property, less any lawful
charges, that is held, issued, or owing in the ordinary course of a
holder’s business and has remained unclaimed by the owner for more
than five (5) years after becoming payable or distributable is
presumed abandoned.
B. Holders of presumed abandoned intangible property shall
report annually and remit all proceeds accrued to date, including
the current balance held by the holder. When and if any part of the
proceeds has been held for the statutory abandonment period or
longer, the holder must report and remit all interest, additions,
and increments accrued to the account of the owner. Any additional
amounts accruing to an owner of the same intangible property
presumed abandoned previously reported will be reported and remitted
on an annual basis, including additional amounts from the “as of
date” of the previous report year through the “as of date” of the
current report year.
C. In no event shall mineral interest proceeds be required to
be reported or remitted sooner than six (6) months after the date of
first sale from the applicable well. Mineral interest proceeds not
remitted pursuant to subsection H of Section 570.10 of Title 52 of
the Oklahoma Statutes shall be presumed abandoned at thirty-six (36)
months after such proceeds were otherwise due to an owner pursuant
to Section 570.10 of Title 52 of the Oklahoma Statutes.
D. Property is payable or distributable for the purposes of
this act notwithstanding the owner’s failure to demand the property
or to present an instrument or document required to receive payment
of the property.
SECTION 4. This act shall become effective November 1, 2026.
ENR. H. B. NO. 1371 Page 11
Passed the House of Representatives the 29th day of April, 2026.
Presiding Officer of the House
of Representatives
Passed the Senate the 15th day of April, 2026.
Presiding Officer of the Senate
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________