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Royalty Payment Law by State

Quick answer

Buckhead Energy read the royalty-payment statutes of 27 oil- and gas-producing states in official state sources: each state's official code site, except Arkansas (official session laws and appellate opinions), California (the legislature's official bulk code data, linked to its code pages) and Mississippi (the state oil and gas regulator's published statute compilation). 18 of the 27 have a statute on when the first payment is due or when interest on it starts, 17 address interest on late payments, and 16 list what a payment statement must show. Each state page quotes the statute text, links the official source and lists the date it was checked.

State-by-state comparison

Each rule is a short form of the statute, linked to the official source it is quoted from; open a state for the full rule and the quoted text. “No statute found” means we read the state's code on that point and found no provision specific to royalty payments, and links the official code read; general contract, interest and limitation statutes are not covered. Each state page lists and links everything read.

State First paymentLater paymentsLate-payment interestMinimum / aggregationCheck stub
Alabama No later than six months after first sale (from receipt of proceeds for a substituted operator or lessee)
Ala. Code § 9-17-33(c)
60 days after the end of the month of sale (from receipt of proceeds for a substituted operator or lessee)
Ala. Code § 9-17-33(c)
12% a year; Federal Reserve discount rate when title is unmarketable
Ala. Code § 9-17-33(d)
Annual when a year's proceeds do not exceed $100; monthly on request above $25; under $10 may be held until production or payment duty ends, or paid yearly on request
Ala. Code § 9-17-33(c)
Statutory list of items on the stub or an attachment
Ala. Code § 9-17-33(b)
Alaska No statute found
official code read
No statute found
official code read
No statute found
official code read
No statute found
official code read
No statute found
official code read
Arkansas No later than six months after the date of first sale
Ark. Code Ann. § 15-74-601(a)
Ark. Code Ann. § 15-74-601(a)
Acts 1987, No. 94, § 2
Ark. Code Ann. § 15-74-604(b)
60 days after the end of the month of sale
Ark. Code Ann. § 15-74-601(a)
Ark. Code Ann. § 15-72-305(a)(5)(A)
12% a year unless a written agreement sets another rate
Ark. Code Ann. § 15-74-601(e)
Ark. Code Ann. § 15-74-604(b)
Annual under $150 (first purchasers); $100 or less (lease operators)
Ark. Code Ann. § 15-74-601(b)(1)
Ark. Code Ann. § 15-74-604(b)
Integrated units: statutory list of items with each distribution
Ark. Code Ann. § 15-72-305(a)(5)(A)
Acts 1987, No. 94, § 1
California No statute found
official code read
No statute found
official code read
No statute found
official code read
No statute found
official code read
No statute found
official code read
Colorado Unless agreed otherwise: six months after the end of the month of first sale
C.R.S. § 34-60-118.5(1)(a)
Unless agreed otherwise: 60 days (oil) or 90 days (gas) after the month of sale
C.R.S. § 34-60-118.5(2)(a)
Simple interest at twice the Kansas City Fed discount rate (not on payments withheld for the statutory reasons)
C.R.S. § 34-60-118.5(4)
Unless agreed otherwise: may pay annually when $100 or less is due over twelve months
C.R.S. § 34-60-118.5(2)(a)
Statutory list of items with every payment
C.R.S. § 34-60-118.5(2.3)
C.R.S. § 34-60-118.5(2.5)
Florida No statute found
official code read
No statute found
official code read
No statute found
official code read
No statute found
official code read
No statute found
official code read
Illinois On or before 150 days after the end of the month of first purchase
765 ILCS 520/10(2)(a)
On the lease schedule; if none, 60 days (oil) or 90 days (gas)
765 ILCS 520/10(2)(a)
The New York Fed rate on loans to depository institutions
765 ILCS 520/10(3)(a)
May pay annually when $100 or less is owed
765 ILCS 520/10(2)(b)
No statute found
official code read
Indiana Crude oil: within 60 days after title approval and executed division orders
IC 32-23-9-1(1)
No statute found
official code read
Crude oil: 6% per year on the unpaid balance
IC 32-23-9-2
No statute found
official code read
No statute found
official code read
Kansas No deadline as such; interest-free if mailed within 120 days of the month of initial sale
K.S.A. 55-1615
K.S.A. 55-1614(f)
Interest runs from 60 days after the last day of the month of sale (not on excluded small accumulations)
K.S.A. 55-1614(i)
K.S.A. 55-1615
1.5 points above the New York Fed rate on loans to depository institutions
K.S.A. 55-1618
K.S.A. 55-1614(h)
K.S.A. 55-1615
K.S.A. 55-1616
$100 or less over 12 months may be paid annually
K.S.A. 55-1614(i)(1)
Statutory list of items with each payment
K.S.A. 55-1622a
K.S.A. 55-1620
K.S.A. 55-1622(b)
Kentucky No statute found
official code read
No statute found
official code read
No statute found
official code read
No statute found
official code read
No statute found
official code read
Louisiana No lessor deadline; operator-sold unleased shares in a compulsory unit within 180 days
La. R.S. 30:10(A)(4)
La. R.S. 31:210.2(C)(2)
No recurring lessor deadline; unit rule for some unleased owners (see first payment)
La. R.S. 30:10(A)(4)
Interest from the due date; the Title 31 sections set no rate
La. R.S. 31:139
La. R.S. 31:212.23(A)-(B)
La. R.S. 31:210.1(A)-(B)
Annual when 12 months total less than $100; monthly on written request above $25
La. R.S. 31:212.32(A)
La. R.S. 31:210.2(D)
Statutory list of items on the stub or an attachment
La. R.S. 31:212.31(B)
Michigan Gas leases: promptly after divisions of interest are determined (no fixed days)
MCL 324.61503a(2)
Gas leases: monthly statements and payments (no fixed day)
MCL 324.61503a(1)(a)
No statute found
official code read
Gas lessee may defer until royalties total $50.00
MCL 324.61503a(2)
Gas leases: monthly plain-English statement with unit price and itemized deductions
MCL 324.61503a(1)(a)(i)
MCL 324.61503b(3)
Mississippi No deadline as such; interest from 120 days after first sale (later receipt date for a substituted payor)
Miss. Code Ann. § 53-3-39
No interest if paid within 60 days after the month of sale
Miss. Code Ann. § 53-3-39
Greater of 8% a year or 2% above the federal discount rate
Miss. Code Ann. § 53-3-39
No interest on $100 or less if paid at least every 120 days
Miss. Code Ann. § 53-3-39
Only: the interest rate must be shown on the payment document
Miss. Code Ann. § 53-3-39
Montana Within 120 days after the initial production is marketed
MCA § 82-10-103(2)
60 days for oil and 90 days for gas
MCA § 82-10-103(2)
The maximum rate allowed under MCA § 31-1-107
MCA § 82-10-103(2)
MCA § 31-1-107(1)
Semiannual under $50; annual under $10
MCA § 82-10-103(2)
Statement form with each check lists the statutory items
MCA § 82-10-104(1)
Nebraska No statute found
official code read
No statute found
official code read
No statute found
official code read
No statute found
official code read
No statute found
official code read
New Mexico Six months after the first day of the month following first sale
NMSA 1978, § 70-10-3
45 days after the end of the month the payor is paid
NMSA 1978, § 70-10-3
Dallas Fed discount rate plus 1.5 points on suspended funds; 18% per year penalty
NMSA 1978, § 70-10-4(B)
No accumulation rule; late-payment penalty excused under $100
NMSA 1978, § 70-10-5(C)
No statute found
official code read
New York No statute found
official code read
No statute found
official code read
No statute found
official code read
No statute found
official code read
No statute found
official code read
North Dakota Within 150 days after the oil or gas is marketed
N.D.C.C. § 47-16-39.1(1)
N.D. Admin. Code § 43-02-06-01.1
Same 150-day rule for every payment
N.D.C.C. § 47-16-39.1(1)
18% per annum on late royalties
N.D.C.C. § 47-16-39.1(1)
Under $50 may be paid semiannually
N.D.C.C. § 47-16-39.1(1)
Information statement with every payment; Industrial Commission rule lists the items
N.D.C.C. § 38-08-06.3
N.D. Admin. Code § 43-02-06-01
Ohio No statute found
official code read
No statute found
official code read
No statute found
official code read
No statute found
official code read
Gas wells: volume report on the holder's request
Ohio Rev. Code § 1509.30
Oklahoma Not later than six months after the date of first sale
52 O.S. § 570.10(B)(1)(a)
By the last day of the second month after the month of sale (third month for certain gas proceeds)
52 O.S. § 570.10(B)(1)(b)
15% per annum (12% compounded annually before the November 1, 2026 amendment)
52 O.S. § 570.10(F)
52 O.S. § 570.10(D)(1) (superseded)
Okla. Sess. Laws 2026, c. 175 (HB 1371), § 4
May pay annually when 12 months total at least $10 but less than $100
52 O.S. § 570.10(B)(3)(a)
Statutory list of items with each payment; decimals to six places
52 O.S. § 570.12(A)(1)-(5)
Pennsylvania Unconventional, unless the lease provides otherwise: no later than 120 days from first sale
Pa. Oil and Gas Lease Act § 3.3(e)(1)(i)
Unconventional, unless the lease provides otherwise: 60 days after the end of the month of sale
Pa. Oil and Gas Lease Act § 3.3(e)(1)(ii)
Unconventional, unless the lease provides otherwise: penalty at the legal rate (six percent per annum)
Pa. Oil and Gas Lease Act § 3.3(e)(3)
Loan Interest and Protection Law § 202 (Act of Jan. 30, 1974, P.L. 13, No. 6)
Unconventional: annual when 12 months total less than $100
Pa. Oil and Gas Lease Act § 3.3(f)
Statutory list of items for conventional and unconventional production
Pa. Oil and Gas Lease Act § 3.2
South Dakota No statute found
official code read
No statute found
official code read
No statute found
official code read
No statute found
official code read
No statute found
official code read
Texas Within 120 days after the end of the month of first sale
Tex. Nat. Res. Code § 91.405
On the lease schedule; if silent, 60 days (oil) or 90 days (gas) after the month of sale
Tex. Nat. Res. Code § 91.402(a)
Two percentage points above the New York Fed rate on loans to depository institutions
Tex. Nat. Res. Code § 91.403(a)
May pay annually when $100 or less is owed
Tex. Nat. Res. Code § 91.402(f)
Each stub, attachment or remittance advice must show the statutory list of items
Tex. Nat. Res. Code § 91.501
Utah Unless a valid contract provides otherwise: 180 days after the first day of the month following first sale
Utah Code § 40-6-9(1)(a)
Unless a valid contract provides otherwise: 30 days after the end of the month the payor is paid
Utah Code § 40-6-9(1)(a)
No automatic rate; interest-bearing escrow; board may order interest after a hearing
Utah Code § 40-6-9(3)(b)(ii)
Annual when $100 or less is owed
Utah Code § 40-6-9(2)
Statutory list of items on the stub or an attachment
Utah Code § 40-6-9.1(1)
Virginia No statute found
official code read
No statute found
official code read
No statute found
official code read
No statute found
official code read
No statute found
official code read
West Virginia Horizontal wells: within 120 days from the first date of sale
W. Va. Code § 37C-1-3
Horizontal wells: within 60 days after each later sale
W. Va. Code § 37C-1-3
Horizontal wells: prime rate plus two percent, compounded quarterly
W. Va. Code § 37C-1-3
Horizontal wells: may accumulate until over $100; paid at least yearly and when production or payment responsibility ends
W. Va. Code § 37C-1-2
Horizontal wells: statutory list of items with each payment
W. Va. Code § 37C-1-1(a)
Wyoming Six months after the first day of the month following first sale
Wyo. Stat. § 30-5-301(a)
60 days after the end of the month of sale
Wyo. Stat. § 30-5-301(a)
18% per annum on the unpaid principal balance
Wyo. Stat. § 30-5-303(a)
Annual when $100 or less is owed; on request within 60 days once $25 accrues
Wyo. Stat. § 30-5-301(b)(i)
Statutory list of items on the stub; penalty for omissions
Wyo. Stat. § 30-5-305(b)

Data: /api/v1/royalty-payment-law (JSON) · MCP tool get_royalty_payment_law.

Frequently asked questions

Which states have a statute on the timing of the first royalty payment?

Of the 27 states covered here, 18 have a statute on when the first payment is due or when interest on it starts: Alabama, Arkansas, Colorado, Illinois, Indiana, Kansas, Louisiana, Michigan, Mississippi, Montana, New Mexico, North Dakota, Oklahoma, Pennsylvania, Texas, Utah, West Virginia and Wyoming. Some set a fixed number of days and some do not, and some cover only certain payors or products; each state page quotes the statute.

Which states address interest on late royalty payments?

17 of the 27 states covered have a statute on interest for late payments: Alabama, Arkansas, Colorado, Illinois, Indiana, Kansas, Louisiana, Mississippi, Montana, New Mexico, North Dakota, Oklahoma, Pennsylvania, Texas, Utah, West Virginia and Wyoming. The rate and how it is computed differ by state; each state page quotes the statute.

Which states regulate what a royalty check stub must show?

16 of the 27 states covered have a statute listing what a payment statement must show: Alabama, Arkansas, Colorado, Kansas, Louisiana, Michigan, Mississippi, Montana, North Dakota, Ohio, Oklahoma, Pennsylvania, Texas, Utah, West Virginia and Wyoming.

Which states have a division-order statute?

18 of the 27 states covered have a statute on division orders: Arkansas, Colorado, Indiana, Louisiana, Michigan, Mississippi, Montana, Nebraska, New Mexico, New York, North Dakota, Oklahoma, Pennsylvania, South Dakota, Texas, Utah, West Virginia and Wyoming.

Is this page legal advice?

No. Educational only — not legal advice; statutes change, so confirm the current version and consult a qualified attorney for your situation.

How this table was built

Compiled by Buckhead Energy from the official state publications linked on each page (legislature code sites, official session laws, court opinions, and regulator and treasury pages); every royalty-payment rule is quoted from the source text with its fetch date; general statutes named in a “No statute found” summary are linked as sources read, not quoted. Last reviewed .

Related guides

Educational only — not legal advice; statutes change, so confirm the current version and consult a qualified attorney for your situation.

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