# Interest on Late Royalty Payments by State | Buckhead

> Several producing states require operators to pay interest on royalties held past a statutory deadline. What triggers the interest clock, the rate in OK, TX, NM, ND, WV, and KS, and the title exception that suspends it. Reviewed Aug 2026.

**URL:** https://www.buckheadenergy.com/resources/interest-owed-late-royalty-payments-by-state
**Source:** Buckhead Energy (https://www.buckheadenergy.com/)
**Generated:** 2026-09-02 (heuristic; server-side extraction)

## Answer
Quick Answer Several producing states require operators to pay interest on royalties held past a statutory deadline — Oklahoma 12% (prime if title is unmarketable), Texas 2 points over the New York Fed depository rate, New Mexico the Dallas Fed discount rate plus 1.5%, North Dakota a flat 18%, West Virginia prime plus 2% on horizontal wells, and Kansas 1.5 points over the depository rate. Interest is usually suspended when the delay is caused by a title defect, legal dispute, or unlocatable owner. Build a dated timeline, write the division-order department citing the statute, escalate to a demand letter and the registered agent, and know when the recovery no longer justifies the fight. Reviewed August 2026; not legal advice. Key Takeaways Interest on late royalties is often paid only when the owner cites the specific statute in writing. Rates range widely — from about 1.5 points over a reference rate up to North Dakota's flat 18% per year. The common exception: a title defect, legal dispute, or unlocatable owner usually suspends the obligation. A dated timeline written to the division-order department is the most effective first move. On a small suspended balance, the cost to chase can exceed the interest — selling is a legitimate exit.

## Frequently Asked Questions
**Do operators have to pay interest on late royalty payments?**
In many producing states, yes — statutes require interest on royalty proceeds held past a statutory deadline. Oklahoma, Texas, New Mexico, North Dakota, West Virginia, and Kansas all have such provisions, though the rate, the deadline, and the exceptions differ by state, and West Virginia's applies to horizontal wells. In practice the interest is frequently paid only after the owner cites the statute in writing. This is educational information reviewed August 2026, not legal advice.

**Which state has the highest interest rate on late royalties?**
Of the states covered here, North Dakota is the highest at a flat 18% per year under N.D.C.C. Section 47-16-39.1. Others tie the rate to a reference rate — for example Texas at two points above the New York Federal Reserve rate on loans to depository institutions, and Kansas at one and one-half points above a similar rate. Rates were reviewed August 2026; verify the current statute.

**Why is the operator holding my royalties in suspense?**
Usually because it cannot confirm who owns the interest — a title defect, a break in the chain of title, a death that has not been probated, or an address it cannot reach. In most states, funds held in suspense for a title problem the owner must cure may not earn the full statutory interest until the defect is resolved. Clearing title is often the fastest way to release both the principal and any interest.

**How do I actually get the interest paid?**
Build a dated timeline of when payments were due versus received, then write the operator division-order department (not the landman), citing the statute, the amount, and the interest owed. If that is ignored, a written demand and a copy to the registered agent usually escalates it. Some of these statutes also allow recovery of attorney fees if you must sue. Whether to involve counsel is a legal decision; this is not legal advice.

**Can I just sell an interest that is stuck in suspense?**
Often, yes. A buyer can take on a suspended or disputed interest, including the title work and the dealings with the operator, and convert it into one payment now. A suspense status does affect price — a buyer prices in the uncertainty and the cost to cure — so expect a clean, currently-paying interest to sell for more. Buckhead Energy will explain how a suspense status affects the offer rather than hiding it.

## Page Outline
- Late Royalty Payments: The Interest You Are Owed, State by State

## About Buckhead Energy
Buckhead Energy is a direct buyer of oil & gas mineral rights and royalty interests across all 50 U.S. states. We provide free written offers within 24-48 hours, with closings in 30-45 days. Family-owned and operated since 2006, A+ BBB rated.

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