# Kentucky Royalty Payment Law: Deadlines, Interest and Owner Remedies > Kentucky oil and gas royalty payment rules from the statute text: first-payment deadline, later payments, late-payment interest, suspense, division orders, owner remedies, check stubs and unclaimed royalties, with citations. Educational, not legal advice. - URL: https://www.buckheadenergy.com/royalty-payment-law/kentucky - Last updated: 2026-11-03 - Publisher: Buckhead Energy (https://www.buckheadenergy.com/) - Format: full-content Markdown twin of the page (same content as the HTML; site navigation and footer removed) Breadcrumb: [Home](https://www.buckheadenergy.com/) › [Royalty Payment Law by State](https://www.buckheadenergy.com/royalty-payment-law) › Kentucky Quick answer We found no Kentucky statute that sets a deadline, interest, minimum-payment rule, payor suspense rule, division-order rule, owner remedy or check-stub requirement for oil and gas royalty payments (full text of KRS Chapter 353 read). Kentucky's unclaimed property law, KRS Chapter 393A, states that the chapter does not apply to money or other intangible property held or owing for any mineral proceeds (KRS 393A.020(2)(c)), and we found no other Kentucky statute setting when unclaimed royalties are presumed abandoned. ## Kentucky royalty payment rules at a glance | Topic | What the statute says | Citation | | --- | --- | --- | | First payment deadline | No statute found | — | | Later payments | No statute found | — | | Minimum payment and aggregation | No statute found | — | | Interest on late payments | No statute found | — | | Suspense and withheld payments | No payor suspense statute; court trustee holds lease proceeds for unknown or missing owners | KRS 353.468 | | Division orders | No statute found | — | | Owner remedies, notice and attorney fees | No statute found | — | | Check-stub disclosures | No statute found | — | | Unclaimed royalties (escheat) | Unclaimed property act does not apply to mineral proceeds | KRS 393A.020(2)(c); KRS 393A.010(16); KRS 393A.010(16)(b)2. | ## First payment deadline We found no Kentucky statute setting a deadline for the first royalty or proceeds payment. **What we read:** Read the full text of every section of KRS Chapter 353 (Mineral conservation and development, through the 2026 Regular Session) on the Kentucky General Assembly site and read KRS 353.640 in full; no section addresses the timing of royalty or proceeds payments to owners. Two government-source searches of Kentucky law (apps.legislature.ky.gov) for royalty payment deadlines, interest and division orders returned only pooling, consolidation and unknown-owner trust sections. Sources read: [KRS Chapter 353 (Mineral conservation and development), full text of all 160 sections listed on this chapter page (each section's official PDF), through the 2026 Regular Session](https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=38944); [KRS 353.640 - Pooling order (read to check for escrow/suspense provisions)](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=47763). ## Later payments We found no Kentucky statute setting deadlines for ongoing royalty payments. **What we read:** Same review as the first payment: the full text of KRS Chapter 353, including KRS 353.640; no payment-timing provision. Sources read: [KRS Chapter 353 (Mineral conservation and development), full text of all 160 sections listed on this chapter page (each section's official PDF), through the 2026 Regular Session](https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=38944); [KRS 353.640 - Pooling order (read to check for escrow/suspense provisions)](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=47763). ## Minimum payment and aggregation We found no Kentucky statute on minimum royalty payments or aggregation thresholds. **What we read:** Same review as the first payment: the full text of KRS Chapter 353; no minimum-payment or annual-payment provision. Sources read: [KRS Chapter 353 (Mineral conservation and development), full text of all 160 sections listed on this chapter page (each section's official PDF), through the 2026 Regular Session](https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=38944). ## Interest on late payments We found no Kentucky statute requiring interest on late royalty payments. **What we read:** Full text of KRS Chapter 353 read; the only interest language found (KRS 353.650) concerns a reasonable interest charge on well costs recovered from a pooled owner's share, not late royalty payments. Sources read: [KRS Chapter 353 (Mineral conservation and development), full text of all 160 sections listed on this chapter page (each section's official PDF), through the 2026 Regular Session](https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=38944). ## Suspense and withheld payments We found no Kentucky statute governing when a payor may suspend royalty payments or whether suspended funds earn interest. For severed mineral interests of unknown or missing owners, a court may appoint a trustee to lease them; the trustee collects, holds and invests the lease proceeds for those owners and distributes them, with future proceeds, if the owners establish their identity and title (KRS 353.468). A court-appointed trustee for unknown or missing owners' severed mineral interests collects the lease proceeds and holds and invests them for those owners. ([KRS 353.468](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33099)) > Statute text “The trustee shall collect the proceeds, if any, from the sale of the lease and hold and invest the same for the use and benefit of the unknown or missing owners.” If the owners establish their identity and title, the trustee distributes the funds held for them and assigns all future proceeds from the lease to them. ([KRS 353.468](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33099)) > Statute text “If the court finds that the unknown or missing owners have established their identity and title, the trustee shall be directed to distribute the funds in his hands attributable to the unknown or missing owners' interest, and shall assign all future proceeds from said lease to the owners as their interests appear” ## Division orders We found no Kentucky statute governing division orders. **What we read:** Full text of KRS Chapter 353 read; no section mentions division orders. A government-source search of Kentucky law for division orders returned no provision. Sources read: [KRS Chapter 353 (Mineral conservation and development), full text of all 160 sections listed on this chapter page (each section's official PDF), through the 2026 Regular Session](https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=38944). ## Owner remedies, notice and attorney fees We found no Kentucky statute giving royalty owners a specific remedy, notice procedure, penalty or attorney-fee right for nonpayment. **What we read:** Full text of KRS Chapter 353 read; KRS 353.710 (suit to enjoin violations of KRS 353.500-353.720) concerns conservation-law violations, not royalty nonpayment. No royalty-nonpayment remedy found. Sources read: [KRS Chapter 353 (Mineral conservation and development), full text of all 160 sections listed on this chapter page (each section's official PDF), through the 2026 Regular Session](https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=38944). ## Check-stub disclosures We found no Kentucky statute requiring specific disclosures on royalty check stubs or statements. **What we read:** Full text of KRS Chapter 353 read; no payment-statement disclosure provision. Sources read: [KRS Chapter 353 (Mineral conservation and development), full text of all 160 sections listed on this chapter page (each section's official PDF), through the 2026 Regular Session](https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=38944). ## Unclaimed royalties (escheat) Kentucky's unclaimed property law, KRS Chapter 393A, defines mineral proceeds to include royalties and overriding royalties, but KRS 393A.020(2)(c) states that the chapter does not apply to money, funds or other intangible property held by or owing for any mineral proceeds. Its dormancy periods therefore do not reach royalties, and we found no other Kentucky statute setting when unclaimed royalties are presumed abandoned. KRS Chapter 393A does not apply to money, funds or any other intangible property held by or owing for any mineral proceeds. ([KRS 393A.020(2)(c)](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=48964)) > Statute text “This chapter shall not apply to: … (2) Money, funds, or any other intangible property held by or owing: … (c) For any mineral proceeds;” 'Mineral proceeds' means an amount payable for extraction, production, or sale of minerals, and includes royalties, overriding royalties and net revenue interests. ([KRS 393A.010(16)](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=48098)) > Statute text “"Mineral proceeds": (a) Means an amount payable for extraction, production, or sale of minerals” Mineral proceeds include amounts payable for extraction, production or sale of minerals, including a net revenue interest, royalty and overriding royalty. ([KRS 393A.010(16)(b)2.](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=48098)) > Statute text “For the extraction, production, or sale of minerals, including a net revenue interest, royalty, overriding royalty, extraction payment, and production payment” ## Scope notes - The Kentucky review read the full text of every section of KRS Chapter 353 listed on the official chapter page. - KRS Chapter 393A defines mineral proceeds but, under KRS 393A.020(2)(c), does not apply to them, so its dormancy periods are not shown for royalties. ## Frequently asked questions ### How long does a payor have to make the first royalty payment in Kentucky? We found no Kentucky statute setting a deadline for the first royalty or proceeds payment. ### When are later royalty payments due in Kentucky? We found no Kentucky statute setting deadlines for ongoing royalty payments. ### Can a payor hold small royalty amounts until they add up in Kentucky? We found no Kentucky statute on minimum royalty payments or aggregation thresholds. ### What interest is owed on late royalty payments in Kentucky? We found no Kentucky statute requiring interest on late royalty payments. ### When can royalties be held in suspense in Kentucky, and does interest accrue? We found no Kentucky statute governing when a payor may suspend royalty payments or whether suspended funds earn interest. For severed mineral interests of unknown or missing owners, a court may appoint a trustee to lease them; the trustee collects, holds and invests the lease proceeds for those owners and distributes them, with future proceeds, if the owners establish their identity and title (KRS 353.468). (KRS 353.468) ### What does Kentucky law say about division orders? We found no Kentucky statute governing division orders. ### What can an owner do about late or missing royalties in Kentucky? We found no Kentucky statute giving royalty owners a specific remedy, notice procedure, penalty or attorney-fee right for nonpayment. ### What must a royalty payment statement show in Kentucky? We found no Kentucky statute requiring specific disclosures on royalty check stubs or statements. ### When do unpaid royalties go to the state unclaimed property program in Kentucky? Kentucky's unclaimed property law, KRS Chapter 393A, defines mineral proceeds to include royalties and overriding royalties, but KRS 393A.020(2)(c) states that the chapter does not apply to money, funds or other intangible property held by or owing for any mineral proceeds. Its dormancy periods therefore do not reach royalties, and we found no other Kentucky statute setting when unclaimed royalties are presumed abandoned. (KRS 393A.020(2)(c); KRS 393A.010(16); KRS 393A.010(16)(b)2.) ## Sources Last reviewed November 3, 2026. - [KRS Chapter 353 (Mineral conservation and development), full text of all 160 sections listed on this chapter page (each section's official PDF), through the 2026 Regular Session](https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=38944) — Kentucky General Assembly (Legislative Research Commission), fetched November 2, 2026 - [KRS 353.640 - Pooling order (read to check for escrow/suspense provisions)](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=47763) — Kentucky General Assembly (Legislative Research Commission), fetched November 2, 2026 - [KRS 353.468 - If advantageous to unknown or missing owner, court may declare trust; trustee's duties](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33099) — Kentucky General Assembly (Legislative Research Commission), fetched November 3, 2026 - [KRS 393A.020 - Inapplicability to foreign transaction (effective June 27, 2019)](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=48964) — Kentucky General Assembly (Legislative Research Commission), fetched November 2, 2026 - [KRS 393A.010 - Definitions (Kentucky unclaimed property, KRS Chapter 393A)](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=48098) — Kentucky General Assembly (Legislative Research Commission), fetched November 2, 2026 ## Related guides - [Royalty payment law by state (comparison of the covered states)](https://www.buckheadenergy.com/royalty-payment-law) - [Kentucky mineral rights](https://www.buckheadenergy.com/mineral-rights/kentucky) - [Suspended royalties: why you are not getting paid](https://www.buckheadenergy.com/suspended-royalties-guide) - [Division orders explained](https://www.buckheadenergy.com/division-orders-explained) - [How to read a royalty statement](https://www.buckheadenergy.com/reading-royalty-statement) - [Unclaimed mineral royalties](https://www.buckheadenergy.com/unclaimed-mineral-royalties) ## Other states [Alabama](https://www.buckheadenergy.com/royalty-payment-law/alabama) · [Alaska](https://www.buckheadenergy.com/royalty-payment-law/alaska) · [Arkansas](https://www.buckheadenergy.com/royalty-payment-law/arkansas) · [California](https://www.buckheadenergy.com/royalty-payment-law/california) · [Colorado](https://www.buckheadenergy.com/royalty-payment-law/colorado) · [Florida](https://www.buckheadenergy.com/royalty-payment-law/florida) · [Illinois](https://www.buckheadenergy.com/royalty-payment-law/illinois) · [Indiana](https://www.buckheadenergy.com/royalty-payment-law/indiana) · [Kansas](https://www.buckheadenergy.com/royalty-payment-law/kansas) · [Louisiana](https://www.buckheadenergy.com/royalty-payment-law/louisiana) · [Michigan](https://www.buckheadenergy.com/royalty-payment-law/michigan) · [Mississippi](https://www.buckheadenergy.com/royalty-payment-law/mississippi) · [Montana](https://www.buckheadenergy.com/royalty-payment-law/montana) · [Nebraska](https://www.buckheadenergy.com/royalty-payment-law/nebraska) · [New Mexico](https://www.buckheadenergy.com/royalty-payment-law/new-mexico) · [New York](https://www.buckheadenergy.com/royalty-payment-law/new-york) · [North Dakota](https://www.buckheadenergy.com/royalty-payment-law/north-dakota) · [Ohio](https://www.buckheadenergy.com/royalty-payment-law/ohio) · [Oklahoma](https://www.buckheadenergy.com/royalty-payment-law/oklahoma) · [Pennsylvania](https://www.buckheadenergy.com/royalty-payment-law/pennsylvania) · [South Dakota](https://www.buckheadenergy.com/royalty-payment-law/south-dakota) · [Texas](https://www.buckheadenergy.com/royalty-payment-law/texas) · [Utah](https://www.buckheadenergy.com/royalty-payment-law/utah) · [Virginia](https://www.buckheadenergy.com/royalty-payment-law/virginia) · [West Virginia](https://www.buckheadenergy.com/royalty-payment-law/west-virginia) · [Wyoming](https://www.buckheadenergy.com/royalty-payment-law/wyoming) 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 Kentucky. ### Get a Free Written Offer Buckhead provides a free written offer. Our offer comes at no cost and no obligation. [Start Your Free Written Offer](https://www.buckheadenergy.com/sell) ## About Buckhead Energy Buckhead Energy is a direct buyer, not a broker — we purchase mineral and royalty interests with our own capital. Buckhead Energy buys mineral and royalty interests across all 50 states and has completed acquisitions in 33 states. Buckhead Energy has been buying mineral and royalty interests since 2006. Buckhead Energy holds an A+ rating with the Better Business Bureau. Buckhead provides a free written offer. Buckhead Energy typically provides an offer within 24–48 hours. Closings typically take 30–45 days, subject to title review and clearance. 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