Quick answer
Main statute: IC 32-23-9 (payment by crude oil purchasers).
| Topic | What the statute says | Citation |
|---|---|---|
| First payment deadline | Crude oil: within 60 days after title approval and executed division orders | IC 32-23-9-1(1); IC 32-23-9-1(2) |
| Later payments | No statute found | — |
| Minimum payment and aggregation | No statute found | — |
| Interest on late payments | Crude oil: 6% per year on the unpaid balance | IC 32-23-9-2; IC 32-23-9-2(2) |
| Suspense and withheld payments | Payment not due until title is approved and division orders are signed | IC 32-23-9-1(1); IC 32-23-9-2(2) |
| Division orders | Executed division orders are a condition of crude oil payment | IC 32-23-9-1(2) |
| Owner remedies, notice and attorney fees | No statute found | — |
| Check-stub disclosures | No statute found | — |
| Unclaimed royalties (escheat) | No mineral-specific period; 3 years for business debts | IC 32-34-1.5-3(17); IC 32-34-1.5-3(17)(B); IC 32-34-1.5-3(24)(B)(ii); IC 32-34-1.5-4(4); IC 32-34-1.5-4(13) |
A purchaser of crude oil pumped from an Indiana oil well must pay for the oil not more than 60 days after the date of examination and approval of abstracts of title furnished by the interest owners showing good title, and after the purchaser has received executed division orders from those owners. The statute covers crude oil only; we found no parallel rule for gas.
A purchaser of crude oil pumped from an Indiana oil well must pay not more than 60 days after examination and approval of abstracts of title showing good title in the owners of interests. (IC 32-23-9-1(1))
Statute text “A person, firm, limited liability company, or corporation that purchases crude oil that is pumped from an oil well in Indiana shall pay for the crude oil: (1) not more than sixty (60) days after the date of the examination and approval of abstracts of title that are furnished by owners of interests and that show good title in the owners of interests”
Payment is also conditioned on the purchaser having received executed division orders from the owners of interests. (IC 32-23-9-1(2))
Statute text “after the purchasers have received executed division orders from the owners of interests.”
We found no Indiana statute setting a separate deadline for ongoing royalty or proceeds payments; IC 32-23-9-1 states only the 60-days-after-title-approval rule for crude oil purchasers. (IC 32-23-9 was read in full; the other oil and gas chapters of IC 32-23 and IC 14-37 were reviewed by section heading only.)
What we read: Read IC 32-23-9 (sections 1 and 2) in full; read every section heading of IC 32-23 chapters 7-10 and 13 and of IC 14-37 (Oil and Gas) in the 2026 Indiana Code. No separate schedule for later payments, and no gas-proceeds payment rule. Sources read: IC 32-23-9 (Oil and Gas: Purchase of and Payment for Crude Oil), 2026 Indiana Code, Title 32 (official IGA HTML; extracted by element id via Firecrawl because the site blocks plain HTTP clients); IC 32-23 chapter and section headings (oil and gas chapters 7-10 and 13), 2026 Indiana Code; IC 14-37 (Oil and Gas) chapter and section headings, 2026 Indiana Code.
We found no Indiana statute on minimum royalty payments or aggregation thresholds. (IC 32-23-9 was read in full; the other oil and gas chapters of IC 32-23 and IC 14-37 were reviewed by section heading only.)
What we read: Read IC 32-23-9 in full and every section heading of IC 32-23 chapters 7-10 and 13 and IC 14-37; no minimum-payment provision. Sources read: IC 32-23-9 (Oil and Gas: Purchase of and Payment for Crude Oil), 2026 Indiana Code, Title 32 (official IGA HTML; extracted by element id via Firecrawl because the site blocks plain HTTP clients); IC 32-23 chapter and section headings (oil and gas chapters 7-10 and 13), 2026 Indiana Code; IC 14-37 (Oil and Gas) chapter and section headings, 2026 Indiana Code.
If a crude oil purchaser fails to pay within 60 days after title examination and approval (after receiving executed division orders), or fails to notify known claimants of its reason for nonpayment, it must pay interest at 6% per year on the unpaid balance from the date payment was required until paid. The statute does not say whether the interest is simple or compound.
The purchaser must pay interest at 6% per year on the unpaid balance from the required payment date to the date of payment. (IC 32-23-9-2)
Statute text “the purchaser shall pay interest at the rate of six percent (6%) per year on the unpaid balance from the date on which the purchaser was required to pay for the crude oil under this chapter to the date of payment.”
Interest is also triggered if the purchaser has failed to notify known claimants of its reason for nonpayment. (IC 32-23-9-2(2))
Statute text “has failed to notify the known claimants of an interest of the purchaser's reason for nonpayment to the claimants of an interest”
The payment duty runs from examination and approval of abstracts of title furnished by owners showing good title, and from receipt of executed division orders, so payment is not due before those events. A purchaser that does not pay owes 6% interest if it has failed to notify known claimants of its reason for nonpayment.
The 60-day period runs from examination and approval of abstracts of title furnished by the owners showing good title. (IC 32-23-9-1(1))
Statute text “not more than sixty (60) days after the date of the examination and approval of abstracts of title that are furnished by owners of interests and that show good title in the owners of interests”
A purchaser that has failed to notify known claimants of its reason for nonpayment owes interest. (IC 32-23-9-2(2))
Statute text “has failed to notify the known claimants of an interest of the purchaser's reason for nonpayment to the claimants of an interest”
Indiana's crude oil payment statute makes payment due after the purchaser has received executed division orders from the interest owners. We found no statute governing what a division order may contain or its effect on the lease.
Payment for crude oil is due after the purchaser has received executed division orders from the owners of interests. (IC 32-23-9-1(2))
Statute text “after the purchasers have received executed division orders from the owners of interests.”
Beyond the 6% interest in IC 32-23-9-2, we found no Indiana statute giving private royalty owners a specific notice procedure, cure period, penalty or attorney-fee right for nonpayment. (IC 32-23-9 was read in full; the other oil and gas chapters of IC 32-23 and IC 14-37 were reviewed by section heading only.)
What we read: Read IC 32-23-9 in full; read every section heading of IC 32-23 chapters 7-10 and 13 and IC 14-37 (IC 14-37-3-13 'Expenses and attorney's fees' and IC 14-37-12/13 concern regulatory enforcement, judged from headings only). No owner nonpayment remedy found. Sources read: IC 32-23-9 (Oil and Gas: Purchase of and Payment for Crude Oil), 2026 Indiana Code, Title 32 (official IGA HTML; extracted by element id via Firecrawl because the site blocks plain HTTP clients); IC 32-23 chapter and section headings (oil and gas chapters 7-10 and 13), 2026 Indiana Code; IC 14-37 (Oil and Gas) chapter and section headings, 2026 Indiana Code.
We found no Indiana statute requiring specific disclosures on royalty check stubs or statements. (IC 32-23-9 was read in full; the other oil and gas chapters of IC 32-23 and IC 14-37 were reviewed by section heading only.)
What we read: Read IC 32-23-9 in full and every section heading of IC 32-23 chapters 7-10 and 13 and IC 14-37; no payment-statement provision. Sources read: IC 32-23-9 (Oil and Gas: Purchase of and Payment for Crude Oil), 2026 Indiana Code, Title 32 (official IGA HTML; extracted by element id via Firecrawl because the site blocks plain HTTP clients); IC 32-23 chapter and section headings (oil and gas chapters 7-10 and 13), 2026 Indiana Code; IC 14-37 (Oil and Gas) chapter and section headings, 2026 Indiana Code.
Indiana's Revised Unclaimed Property Act (IC 32-34-1.5) treats mineral proceeds, defined to include royalties, overriding royalties and net revenue interests, as property. IC 32-34-1.5-4 sets no mineral-specific period; a debt of a business association is presumed abandoned 3 years after the obligation to pay arises, and unspecified property 3 years after the owner first has a right to demand it or the obligation to pay arises. The program is run by the Indiana Attorney General.
'Mineral proceeds' includes amounts payable for extraction, production or sale of minerals, including a net revenue interest, royalty and overriding royalty. (IC 32-34-1.5-3(17))
Statute text “"Mineral proceeds" means an amount payable for the extraction, production, or sale of minerals”
Mineral proceeds include a net revenue interest, royalty, overriding royalty, extraction payment and production payment. (IC 32-34-1.5-3(17)(B))
Statute text “for the extraction, production, or sale of minerals, including a net revenue interest, royalty, overriding royalty, extraction payment, and production payment”
Property under the act includes mineral proceeds. (IC 32-34-1.5-3(24)(B)(ii))
Statute text “a credit balance, customer's overpayment, security deposit, refund, credit memorandum, unpaid wage, unused ticket for which the issuer has an obligation to provide a refund, mineral proceeds, or unidentified remittance”
A debt of a business association is presumed abandoned 3 years after the obligation to pay arises. (IC 32-34-1.5-4(4))
Statute text “For a debt of a business association, three (3) years after the obligation to pay arises.”
Property not otherwise specified is presumed abandoned at the earlier of 3 years after the owner first has a right to demand it or the obligation to pay or distribute arises. (IC 32-34-1.5-4(13))
Statute text “For property not specified in this section or sections 8 and 9 of this chapter, the earlier of three (3) years after the owner first has a right to demand the property or the obligation to pay or distribute the property arises.”
Official unclaimed property search: Indiana Attorney General unclaimed property.
A purchaser of crude oil pumped from an Indiana oil well must pay for the oil not more than 60 days after the date of examination and approval of abstracts of title furnished by the interest owners showing good title, and after the purchaser has received executed division orders from those owners. The statute covers crude oil only; we found no parallel rule for gas. (IC 32-23-9-1(1); IC 32-23-9-1(2))
We found no Indiana statute setting a separate deadline for ongoing royalty or proceeds payments; IC 32-23-9-1 states only the 60-days-after-title-approval rule for crude oil purchasers. (IC 32-23-9 was read in full; the other oil and gas chapters of IC 32-23 and IC 14-37 were reviewed by section heading only.)
We found no Indiana statute on minimum royalty payments or aggregation thresholds. (IC 32-23-9 was read in full; the other oil and gas chapters of IC 32-23 and IC 14-37 were reviewed by section heading only.)
If a crude oil purchaser fails to pay within 60 days after title examination and approval (after receiving executed division orders), or fails to notify known claimants of its reason for nonpayment, it must pay interest at 6% per year on the unpaid balance from the date payment was required until paid. The statute does not say whether the interest is simple or compound. (IC 32-23-9-2; IC 32-23-9-2(2))
The payment duty runs from examination and approval of abstracts of title furnished by owners showing good title, and from receipt of executed division orders, so payment is not due before those events. A purchaser that does not pay owes 6% interest if it has failed to notify known claimants of its reason for nonpayment. (IC 32-23-9-1(1); IC 32-23-9-2(2))
Indiana's crude oil payment statute makes payment due after the purchaser has received executed division orders from the interest owners. We found no statute governing what a division order may contain or its effect on the lease. (IC 32-23-9-1(2))
Beyond the 6% interest in IC 32-23-9-2, we found no Indiana statute giving private royalty owners a specific notice procedure, cure period, penalty or attorney-fee right for nonpayment. (IC 32-23-9 was read in full; the other oil and gas chapters of IC 32-23 and IC 14-37 were reviewed by section heading only.)
We found no Indiana statute requiring specific disclosures on royalty check stubs or statements. (IC 32-23-9 was read in full; the other oil and gas chapters of IC 32-23 and IC 14-37 were reviewed by section heading only.)
Indiana's Revised Unclaimed Property Act (IC 32-34-1.5) treats mineral proceeds, defined to include royalties, overriding royalties and net revenue interests, as property. IC 32-34-1.5-4 sets no mineral-specific period; a debt of a business association is presumed abandoned 3 years after the obligation to pay arises, and unspecified property 3 years after the owner first has a right to demand it or the obligation to pay arises. The program is run by the Indiana Attorney General. (IC 32-34-1.5-3(17); IC 32-34-1.5-3(17)(B); IC 32-34-1.5-3(24)(B)(ii); IC 32-34-1.5-4(4); IC 32-34-1.5-4(13))
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Educational only — not legal advice; statutes change, so confirm the current version and consult a qualified attorney for your situation. For a question about a specific payment, consult an attorney licensed in Indiana.
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