Oklahoma § 17-517 - Payment of proceeds - Times - Information accompanying

§ 17-517. Payment of proceeds - Times - Information accompanying

payment - Violation - Jurisdiction of district court - Court costs

and fees.

A. The proceeds derived from the sale of brine, solution gas or

brine and solution gas production shall be paid to persons legally

entitled thereto, commencing no later than six (6) months after the

date of first sale, and thereafter no later than sixty (60) days

after the end of the calendar month within which proceeds are

received for subsequent production. In those instances where

proceeds are not received for disposition of brine, solution gas or

brine and solution gas production due to venting, flaring, use for

operations, nonpayment from purchasers, or any other cause, the time

periods previously specified within which any required payment shall

be paid to the persons legally entitled thereto shall be measured

from the date on which such venting, flaring, use for operations,

nonpayment or other event occurred. Provided, proceeds from the

sale of brine and solution gas from lands covered by a pending

application for unitization pursuant to this act shall be paid to

persons legally entitled thereto within six (6) months from the

entry of a final order of unitization, together with interest

thereon at the rate of six percent (6%) per annum to be compounded

annually, calculated from the date of first sale after the filing of

the application for unitization. Such payment is to be made to

persons entitled thereto by the operator of such production.

Provided, such operator may remit to the persons entitled to such

proceeds from production semiannually for the aggregate of six (6)

months' accumulation of monthly proceeds of amounts less than

Twenty-five Dollars ($25.00). Further provided, that any delay in

determining the persons legally entitled to an interest in such

proceeds from production caused by unmarketable title to such

interest shall not affect payments to persons whose title is

marketable. Provided, however, that in those instances where such

proceeds cannot be paid because the title thereto is not marketable,

the operator of such production shall cause all proceeds due such

interest to earn interest at the rate of six percent (6%) per annum

to be compounded annually, calculated from the last day of the

production month, until such time as the title to such interest has

been perfected. Marketability of title shall be determined in

accordance with the then current title examination standards of the

Oklahoma Bar Association.

B. The following information shall be included with each

payment made to a brine owner from the sale of brine:

1. Unit identification;

2. Month and year of sales included in the payment;

3. Total volume of production from the unit of brine, solution

gas and concentration of chemical substances contained therein and

volumes extracted therefrom;

Oklahoma Statutes - Title 17. Corporation Commission

4. Owner's interest, expressed as a decimal, in production from

the unit;

5. Total value of extracted chemical substances and solution

gas, including the price per unit of measurement at which the

products were sold;

6. Owner's share of the total value of sales prior to any

deductions;

7. Owner's share of the total value of sales after any

deductions; and

8. A specific detailed listing of the amount and purpose of any

deductions, including, but not limited to BTU adjustments and taxes,

from the gross proceeds due to the owner.

C. Any operator that violates this section shall be liable to

the persons legally entitled to the proceeds from production for the

unpaid amount of such proceeds with interest thereon at the rate of

twelve percent (12%) per annum to be compounded annually, calculated

from the last day of the production month.

D. The district court for the county in which the unit is

located shall have jurisdiction over all proceedings brought

pursuant to this section. The prevailing party in any proceeding

brought pursuant to this section shall be entitled to recover any

court costs and reasonable expert witness and attorney's fees.

Added by Laws 1990, c. 255, § 18, eff. Sept. 1, 1990.