Oil/Gas/Oklahoma Production Revenue Standards Act
Would you be so kind as to tell me how this is calculated? I am to this point with the oil company and I cannot get a clear answer from anyone. Does the percentage come from the gross revenue of the well or what line on my revenue statement?
This is what I am going off of:
In Oklahoma, per the Oklahoma Production Revenue Standards Act, they have six months from first production to begin paying on a new well. If they don't pay within six months, then interest accrues on "late" payments at either 6% or 12% per year.
Thank you for your help
I guess I don't understand your question unless the answer is the interest due to the late payment is added to the amount they should have paid you earlier.
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QUESTION: Mr Bonner,
The well started producing Jan 2014 and I was paid the royalties this year to date. I am told by the Oil and Gas Commission that they still owe interest for the production of the oil and gas at 6 or 12 %. They did not know if it came from the gross amount of sales or from the revenue that went to my royalties. The oil company said they have acknowledged that they owe me interest other than that I am lost on how to figure where to take it from and the oil company has not given me an answer. Yes there late payments as they have not paid interest since Jan 2014. I hope I did not confuse you more, but this is from the Okla Production Revenue Standards Act.
Thank you for replying,
They owe you interest only to the extent they didn't pay you on time, therefore, only on your royalty interest and not on the entire well. It is 12% if you have marketable title, 6% if you don't. In all likelihood you will have to sue them to collect it.