Quick answer
Main statute: Oil and Gas Proceeds Payment Act, NMSA 1978, §§ 70-10-1 to 70-10-6.
| Topic | What the statute says | Citation |
|---|---|---|
| First payment deadline | Six months after the first day of the month following first sale | NMSA 1978, § 70-10-3 |
| Later payments | 45 days after the end of the month the payor is paid | NMSA 1978, § 70-10-3 |
| Minimum payment and aggregation | No accumulation rule; late-payment penalty excused under $100 | NMSA 1978, § 70-10-5(C) |
| Interest on late payments | Dallas Fed discount rate plus 1.5 points on suspended funds; 18% per year penalty | NMSA 1978, § 70-10-4(B); NMSA 1978, § 70-10-5 |
| Suspense and withheld payments | Suspense account or interpleader; suspended funds earn interest | NMSA 1978, § 70-10-4(A); NMSA 1978, § 70-10-4(B); NMSA 1978, § 70-10-5(A); NMSA 1978, § 70-10-5(B); NMSA 1978, § 70-10-5(D); NMSA 1978, § 70-10-3.1(C) |
| Division orders | Payor must try to furnish a reasonable division order | NMSA 1978, § 70-10-3.1(A); NMSA 1978, § 70-10-3.1(B) |
| Owner remedies, notice and attorney fees | 18% per year penalty; prevailing party recovers attorneys' fees | NMSA 1978, § 70-10-6; NMSA 1978, § 70-10-5 |
| Check-stub disclosures | No statute found | — |
| Unclaimed royalties (escheat) | No mineral-specific period; five years for property not otherwise listed | NMSA 1978, § 7-8A-10.1(E); NMSA 1978, § 7-8A-1(9); NMSA 1978, § 7-8A-1; NMSA 1978, § 7-8A-2(A)(15); NMSA 1978, § 7-8A-2(B); NMSA 1978, § 7-8A-10.1(A) |
Proceeds from a New Mexico well must be paid to all persons legally entitled to them commencing not later than six months after the first day of the month following the date of first sale, unless a valid contract with the person entitled provides other periods or arrangements.
Payments must begin not later than six months after the first day of the month following the date of first sale, unless a valid contract with the payee provides otherwise. (NMSA 1978, § 70-10-3)
Statute text “shall be paid to all persons legally entitled to such payments, commencing not later than six months after the first day of the month following the date of first sale”
Payment is made directly to the entitled person and is deemed made upon deposit in the United States mail. (NMSA 1978, § 70-10-3)
Statute text “Payment shall be made directly to the person or persons entitled thereto by the payor and payment shall be deemed to have been made upon deposit in the United States mail.”
After the first payment, proceeds are due not later than 45 days after the end of the calendar month in which the payor receives payment for the production, unless a valid contract with the person entitled provides other periods or arrangements.
Later payments are due within 45 days after the end of the calendar month in which the payor receives payment for production, unless a valid contract provides otherwise. (NMSA 1978, § 70-10-3)
Statute text “thereafter not later than forty-five days after the end of the calendar month within which payment is received by payor for production unless other periods or arrangements are provided for in a valid contract with the person entitled to such proceeds.”
The Act has no general accumulation or annual-payment rule. The only small-balance provision is that the 18% penalty interest of § 70-10-5 is excused when the total proceeds the payor holds for the owner are less than $100 at the end of any month.
Failure to pay on time is excused from the 18% penalty when the total proceeds held for the owner are less than $100 at the end of any month. (NMSA 1978, § 70-10-5(C))
Statute text “the total amount of oil and gas proceeds in the possession of the payor owed to the owner of the oil and gas proceeds making claim to payment is less than one hundred dollars ($100) at the end of any month”
Funds that cannot be paid on time are held in suspense and earn interest from the § 70-10-3 due date at the Federal Reserve Bank of Dallas discount rate plus 1.5 percentage points, fixed on the date payment is due. If the payor fails to pay on time after receiving the § 70-10-3.1 owner information, it owes 18% per year on the unpaid balance instead, unless an excuse in § 70-10-5 applies. The statute does not say whether either rate is simple or compound.
The person entitled to suspended funds is owed interest from the § 70-10-3 due date at the Dallas Fed discount rate plus 1.5%, on the date payment is due. (NMSA 1978, § 70-10-4(B))
Statute text “The person entitled to payment from the suspended funds shall be entitled to interest on the suspended funds from the date payment is due under Section 70-10-3 NMSA 1978. The interest awarded shall be the discount rate charged by the federal reserve bank of Dallas to member banks plus one and one-half percent on the date payment is due.”
A payor that fails to pay on time after being furnished the § 70-10-3.1 information must pay 18% per year on the unpaid balance in lieu of § 70-10-4 interest, unless excused. (NMSA 1978, § 70-10-5)
Statute text “If a payor fails to make payment to the person entitled to payment within the period provided in Section 70-10-3 NMSA 1978 and after the payor has been furnished with the information required by Section 70-10-3.1 NMSA 1978, the payor shall pay the person the unpaid amount of the payment and in lieu of the interest provided in Section 70-10-4 NMSA 1978 shall pay interest at the rate of eighteen percent per year on the unpaid balance due”
A delay in determining one person's entitlement may not delay payments to others. When payment cannot be made on time, the payor must create a suspense account on its books or may interplead the funds into court; suspended funds earn interest (Dallas Fed discount rate plus 1.5%) from the due date and must be paid with interest within 30 days after a final legal determination of entitlement. The 18% penalty is excused for good-faith reliance on a New Mexico attorney's title opinion objecting to title (with a copy furnished for curative action), good-faith doubt about entitlement or risk of multiple liability, balances under $100, or the owner's refusal to sign a reasonable division or transfer order.
A delay as to one person does not affect payments to others; unpayable amounts go into a suspense account on the payor's books or may be interpleaded into court. (NMSA 1978, § 70-10-4(A))
Statute text “Any delay in determining any person legally entitled to an interest in the proceeds from production shall not affect payments to all other persons entitled to payments. In instances where payments cannot be made within the time period provided in Section 70-10-3 NMSA 1978, the payor shall create a suspense account on his books for such interest or may interplead the suspended funds into court.”
Suspended principal and interest must be paid within 30 days after a final legal determination of entitlement. (NMSA 1978, § 70-10-4(B))
Statute text “Payment of principal and interest on the suspended funds shall be made to all persons legally entitled to the funds within thirty days from the date that the persons are determined to be entitled to the suspended funds by a final legal determination.”
The 18% penalty is excused when the payor relies in good faith on a New Mexico attorney's title opinion objecting to title and furnishes a copy for curative action. (NMSA 1978, § 70-10-5(A))
Statute text “the payor fails to make payment in good-faith reliance upon a title opinion by a licensed New Mexico attorney making objection to the lack of good and marketable title of record in the party claiming entitlement to payment and furnishes a copy thereof to such party for curative action required thereby”
The 18% penalty is excused when information in the payor's good-faith judgment questions entitlement, renders title unmarketable, or risks multiple or third-party liability. (NMSA 1978, § 70-10-5(B))
Statute text “the payor receives information that in his good-faith judgment brings into question the entitlement of the person claiming the right to the payment to receive the payment or that has rendered the marketable title of record unmarketable or that may expose the payor to the risk of multiple liability or liability to third parties if the payment is made”
The 18% penalty is excused when the payee has failed or refused to sign a reasonable division or transfer order stating its interest and mailing address. (NMSA 1978, § 70-10-5(D))
Statute text “the party entitled to payment has failed or refused to execute a reasonable division or transfer order acknowledging the proper interest to which he claims to be entitled and setting forth a mailing address to which payment may be directed.”
If the purchaser or payor cannot locate a listed person, it must notify the operator or lessee. (NMSA 1978, § 70-10-3.1(C))
Statute text “If the purchaser or payor is unable to locate any person listed by the operator or lessee then the purchaser or payor shall notify the operator or lessee that he has been unable to locate or obtain the address of the person entitled to payment.”
The operator or lessee must give the payor each payee's name, address and percentage interest and proof of marketable title. The payor must make a diligent effort to furnish each interest owner a reasonable division or transfer order setting out the owner's proper interest and mailing address. An owner's failure or refusal to sign a reasonable division or transfer order excuses the 18% penalty. The Act does not list permitted or prohibited division-order terms.
The operator or lessee must furnish the payor each payee's name, address and percentage interest, plus proof of marketable title. (NMSA 1978, § 70-10-3.1(A))
Statute text “The operator or lessee arranging for the sale of oil and gas shall furnish the payor with the name, the address and the percentage of interest of each person to whom payment is to be made, as well as proof of marketable title to all of the oil and gas to be sold.”
The payor must make a diligent effort to furnish each interest owner a reasonable division or transfer order with the owner's proper interest and mailing address. (NMSA 1978, § 70-10-3.1(B))
Statute text “The payor shall make a diligent effort to furnish each interest owner with a reasonable division or transfer order that will set forth the proper interest to which the interest owner is entitled, as well as the mailing address to which payment may be directed.”
A payor that fails to pay within the statutory period after receiving the required owner information owes the unpaid amount plus 18% per year interest, unless an excuse applies. The prevailing party in any proceeding under the Act is entitled to court costs and reasonable attorneys' fees. The Act contains no pre-suit notice or cure-period requirement.
The prevailing party in any proceeding under the Act recovers all court costs and reasonable attorneys' fees. (NMSA 1978, § 70-10-6)
Statute text “The prevailing party in any proceedings brought pursuant to the Oil and Gas Proceeds Payment Act shall be entitled to recover all court costs and reasonable attorneys' fees.”
A payor that misses the deadline after receiving the owner information owes the unpaid amount plus 18% per year, unless excused. (NMSA 1978, § 70-10-5)
Statute text “the payor shall pay the person the unpaid amount of the payment and in lieu of the interest provided in Section 70-10-4 NMSA 1978 shall pay interest at the rate of eighteen percent per year on the unpaid balance due, unless payment is excused by the happening of one or more of the following:”
We found no New Mexico statute specifying what a royalty payment statement or check stub must show.
What we read: Read NMSA 1978, §§ 70-10-1 to 70-10-6 (Oil and Gas Proceeds Payment Act) in full in the 2026 official Chapter 70 PDF, and searched all of Chapter 70 for 'check stub', 'remittance advice', 'statement' and 'proceeds'; no payment-statement content requirement found. Sources read: NMSA 1978, Chapter 70 (Oil and Gas), official compilation PDF '7-1-26_chapter-70-oil-and-gas-2026.pdf' (Article 10, §§ 70-10-1 to 70-10-6).
New Mexico's Uniform Unclaimed Property Act lists mineral proceeds (bonuses, royalties, shut-in royalties, delay rentals, net revenue interests, overriding royalties and production payments) as property. It names no separate period for them; its period for property not otherwise listed is five years after the owner's right to demand the property or the obligation to pay arises, whichever first occurs. Holders of unclaimed oil and gas royalty or working-interest checks of $50 or more that do not use due diligence to locate the owner owe interest; that section does not apply to federal or New Mexico government holders.
The due-diligence section does not apply to the United States or its agencies or instrumentalities, or to New Mexico or its agencies or political subdivisions. (NMSA 1978, § 7-8A-10.1(E))
Statute text “E. The provisions of this section shall not apply to the United States or any agency or instrumentality of the United States or to the state of New Mexico or any agency or political subdivision of the state.”
"Mineral proceeds" includes bonuses, royalties, shut-in and minimum royalties, delay rentals, net revenue interests, overriding royalties and production payments. (NMSA 1978, § 7-8A-1(9))
Statute text “"mineral proceeds" means amounts payable for the extraction, production or sale of minerals, or, upon the abandonment of those payments, all payments that become payable thereafter. The term includes amounts payable:”
Unclaimed "property" under the Act expressly includes mineral proceeds. (NMSA 1978, § 7-8A-1)
Statute text “refund, credit memorandum, unpaid wage, unused ticket, mineral proceeds or unidentified remittance;”
Property not otherwise listed is presumed abandoned five years after the owner's right to demand it or the obligation to pay arises, whichever first occurs; the section lists no separate period for mineral proceeds. (NMSA 1978, § 7-8A-2(A)(15))
Statute text “all other property, five years after the owner's right to demand the property or after the obligation to pay or distribute the property arises, whichever first occurs.”
When an interest is presumed abandoned, other property rights accruing from it are also presumed abandoned. (NMSA 1978, § 7-8A-2(B))
Statute text “At the time that an interest is presumed abandoned under Subsection A of this section, any other property right accrued or accruing to the owner as a result of the interest, and not previously presumed abandoned, is also presumed abandoned.”
A holder of unclaimed oil and gas royalty or working-interest checks of $50 or more that fails to use due diligence to locate the owner during the dormancy period owes interest on the value. (NMSA 1978, § 7-8A-10.1(A))
Statute text “the holder of unclaimed intangible property in the form of checks in payment of royalty interests, working interests or other interests payable out of oil and gas production with a value of fifty dollars ($50.00) or more who fails to exercise due diligence in attempting to locate the apparent owner of such property during the running of the period specified under Section 2 [7-8A-2 NMSA 1978]”
Official unclaimed property search: New Mexico Taxation and Revenue Department — Unclaimed Property.
Proceeds from a New Mexico well must be paid to all persons legally entitled to them commencing not later than six months after the first day of the month following the date of first sale, unless a valid contract with the person entitled provides other periods or arrangements. (NMSA 1978, § 70-10-3)
After the first payment, proceeds are due not later than 45 days after the end of the calendar month in which the payor receives payment for the production, unless a valid contract with the person entitled provides other periods or arrangements. (NMSA 1978, § 70-10-3)
The Act has no general accumulation or annual-payment rule. The only small-balance provision is that the 18% penalty interest of § 70-10-5 is excused when the total proceeds the payor holds for the owner are less than $100 at the end of any month. (NMSA 1978, § 70-10-5(C))
Funds that cannot be paid on time are held in suspense and earn interest from the § 70-10-3 due date at the Federal Reserve Bank of Dallas discount rate plus 1.5 percentage points, fixed on the date payment is due. If the payor fails to pay on time after receiving the § 70-10-3.1 owner information, it owes 18% per year on the unpaid balance instead, unless an excuse in § 70-10-5 applies. The statute does not say whether either rate is simple or compound. (NMSA 1978, § 70-10-4(B); NMSA 1978, § 70-10-5)
A delay in determining one person's entitlement may not delay payments to others. When payment cannot be made on time, the payor must create a suspense account on its books or may interplead the funds into court; suspended funds earn interest (Dallas Fed discount rate plus 1.5%) from the due date and must be paid with interest within 30 days after a final legal determination of entitlement. The 18% penalty is excused for good-faith reliance on a New Mexico attorney's title opinion objecting to title (with a copy furnished for curative action), good-faith doubt about entitlement or risk of multiple liability, balances under $100, or the owner's refusal to sign a reasonable division or transfer order. (NMSA 1978, § 70-10-4(A); NMSA 1978, § 70-10-4(B); NMSA 1978, § 70-10-5(A); NMSA 1978, § 70-10-5(B); NMSA 1978, § 70-10-5(D); NMSA 1978, § 70-10-3.1(C))
The operator or lessee must give the payor each payee's name, address and percentage interest and proof of marketable title. The payor must make a diligent effort to furnish each interest owner a reasonable division or transfer order setting out the owner's proper interest and mailing address. An owner's failure or refusal to sign a reasonable division or transfer order excuses the 18% penalty. The Act does not list permitted or prohibited division-order terms. (NMSA 1978, § 70-10-3.1(A); NMSA 1978, § 70-10-3.1(B))
A payor that fails to pay within the statutory period after receiving the required owner information owes the unpaid amount plus 18% per year interest, unless an excuse applies. The prevailing party in any proceeding under the Act is entitled to court costs and reasonable attorneys' fees. The Act contains no pre-suit notice or cure-period requirement. (NMSA 1978, § 70-10-6; NMSA 1978, § 70-10-5)
We found no New Mexico statute specifying what a royalty payment statement or check stub must show.
New Mexico's Uniform Unclaimed Property Act lists mineral proceeds (bonuses, royalties, shut-in royalties, delay rentals, net revenue interests, overriding royalties and production payments) as property. It names no separate period for them; its period for property not otherwise listed is five years after the owner's right to demand the property or the obligation to pay arises, whichever first occurs. Holders of unclaimed oil and gas royalty or working-interest checks of $50 or more that do not use due diligence to locate the owner owe interest; that section does not apply to federal or New Mexico government holders. (NMSA 1978, § 7-8A-10.1(E); NMSA 1978, § 7-8A-1(9); NMSA 1978, § 7-8A-1; NMSA 1978, § 7-8A-2(A)(15); NMSA 1978, § 7-8A-2(B); NMSA 1978, § 7-8A-10.1(A))
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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 New Mexico.
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