Oklahoma § 52-903 - Failure to pay proceeds from production - Remedies

§ 52-903. Failure to pay proceeds from production - Remedies

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 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 provides for an

interest rate equal to or greater than twelve percent (12%)

compounded annually, 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 and the remedies set forth in

subsection C of Section 570.14 of Title 52 of the Oklahoma Statutes,

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, 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

Oklahoma Statutes - Title 52. Oil and Gas

underpaid proceeds from production including, 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.

Added by Laws 2012, c. 201, § 3, emerg. eff. May 8, 2012.

Oklahoma Statutes - Title 52. Oil and Gas