Utah Royalty Payment Law: Deadlines, Interest and Owner Remedies

Utah royalty payment rules at a glance

First payment deadline

Unless a valid contract with the person entitled to the proceeds provides otherwise, oil and gas proceeds must be paid no later than 180 days after the first day of the month following the date of first sale. Payment is made directly by the payor and is considered made when deposited in the U.S. mail.

Proceeds must be paid no later than 180 days after the first day of the month following the date of the first sale, unless a valid contract provides other periods or arrangements. (Utah Code § 40-6-9(1)(a))

Statute text “shall be paid to any person legally entitled to the payment of the proceeds not later than 180 days after the first day of the month following the date of the first sale”

The time limits yield to other periods or arrangements in a valid contract with the person entitled to the proceeds. (Utah Code § 40-6-9(1)(a))

Statute text “unless other periods or arrangements are provided for in a valid contract with the person entitled to the proceeds.”

Payment is made directly by the payor and is considered made upon deposit in the United States mail. (Utah Code § 40-6-9(1)(b)-(c))

Statute text “The payment shall be made directly to the person entitled to the payment by the payor. (c) The payment is considered to have been made upon deposit in the United States mail.”

Later payments

After the first payment, proceeds are due no later than 30 days after the end of the calendar month in which the payor receives payment for the production, unless a valid contract provides otherwise.

Later payments are due no later than 30 days after the end of the calendar month in which the payor receives payment for production. (Utah Code § 40-6-9(1)(a))

Statute text “thereafter not later than 30 days after the end of the calendar month within which payment is received by the payor for production”

Minimum payment and aggregation

Proceeds are remitted annually, aggregating up to 12 months, if the total owed is $100 or less. Separately, the board may treat a suspension as reasonably justified when the total held for the owner is less than $100 at the end of any month.

Payments are remitted annually for up to 12 months of accumulated proceeds if the total owed is $100 or less. (Utah Code § 40-6-9(2))

Statute text “Payments shall be remitted to any person entitled to oil and gas proceeds annually for the aggregate of up to 12 months accumulation of proceeds, if the total amount owed is $100 or less.”

A total under $100 held for the claimant at the end of any month is listed as a circumstance in which the board may find suspension reasonably justified. (Utah Code § 40-6-9(8)(c))

Statute text “the total amount of oil and gas proceeds in possession of the payor owed to the person making claim to payment is less than $100 at the end of any month”

Interest on late payments

Utah does not set an automatic statutory interest rate on every late payment. Proceeds that cannot be paid on time must be placed in an interest-bearing escrow account earning the institution's highest rate for similar demand deposits. If, after a hearing, the board finds the proceeds were not escrowed, it may order interest at 1-1/2% per month from the date payment should have been suspended. If the board sets a final distribution date and payment is not made by then, the total proceeds, interest and any penalty bear interest at 1-1/2% per month until paid.

Escrowed proceeds earn interest at the institution's highest rate for the amount and term of similar demand deposits. (Utah Code § 40-6-9(3)(b)(ii))

Statute text “The deposit shall earn interest at the highest rate being offered by that institution for the amount and term of similar demand deposits.”

If the board finds after a hearing that proceeds were not escrowed, it may order a complete accounting and interest of 1-1/2% per month, accruing from the date payment should have been suspended. (Utah Code § 40-6-9(7)(a))

Statute text “the proceeds be subject to an interest rate of 1-1/2% per month, as a substitute for an escrow account interest rate, accruing from the date the payment should have been suspended in accordance with Subsection (3).”

If payment is not made by the board's final distribution date, the total proceeds, interest and any penalty bear interest at 1-1/2% per month until paid. (Utah Code § 40-6-9(7)(c)(ii))

Statute text “If payment is not made by the required date, the total proceeds, interest, and any penalty as provided in Subsection (7)(b) shall be subject to interest at a rate of 1-1/2% per month until paid.”

Suspense and withheld payments

If accrued payments cannot be made on time, the payor must deposit them in an interest-bearing escrow account at a federally insured bank or savings and loan; the escrow agent pays principal and interest within 30 days after receiving a final legal determination of entitlement, less escrow fees. Circumstances the board may treat as reasonable justification for suspension include a Utah attorney's title opinion objecting to marketable title (with the relevant portions furnished to the owner), information questioning entitlement or rendering title unmarketable or exposing the payor to third-party liability, a balance under $100, and the owner's failure or refusal to sign a division or transfer order that does not alter the lease. In title-opinion or adverse-information situations the payor may escrow or, at the claimant's request and expense, interplead the funds. A dispute over one person's entitlement does not delay payments to others.

If accrued payments cannot be made within the time limits, the payor must deposit them in an escrow account at a federally insured bank or savings and loan institution. (Utah Code § 40-6-9(3)(b)(i))

Statute text “the payor shall deposit all oil and gas proceeds credited to the eventual oil and gas proceeds owner to an escrow account in a federally insured bank or savings and loan institution using a standard escrow document form.”

The escrow agent pays principal and accrued interest within 30 days after receiving a final legal determination of entitlement; escrow fees are deducted. (Utah Code § 40-6-9(3)(b)(iv)-(v))

Statute text “Payment of principal and accrued interest from the escrow account shall be made by the escrow agent to the person legally entitled to them within 30 days from the date of receipt by the escrow agent of final legal determination of entitlement to the payment.”

A delay in determining one person's entitlement does not affect payments to others. (Utah Code § 40-6-9(3)(a))

Statute text “Any delay in determining whether a person is legally entitled to an interest in the oil and gas proceeds does not affect payments to other persons entitled to payment.”

Reasonable justification includes good-faith reliance on a licensed Utah attorney's title opinion objecting to marketable title, with relevant portions furnished to the claimant for curative action. (Utah Code § 40-6-9(8)(a))

Statute text “fails to make the payment in good faith reliance upon a title opinion by a licensed Utah attorney objecting to the lack of good and marketable title of record of the person claiming entitlement to payment”

Reasonable justification includes information that questions entitlement, has rendered title unmarketable, or may expose the payor to third-party liability. (Utah Code § 40-6-9(8)(b))

Statute text “in the payor's good faith judgment, brings into question the entitlement of the person claiming the right to the payment to receive that payment; (ii) has rendered the title unmarketable; or (iii) may expose the payor to the risk of liability to third parties if the payment is made”

In those title or adverse-information situations, the payor may suspend and escrow, or at the claimant's request and expense pay the funds into court in an interpleader action. (Utah Code § 40-6-9(9))

Statute text “at the request and expense of the person claiming entitlement to the payment, make the payment into court on an interpleader action to resolve the claim and avoid liability under this chapter.”

If the board finds the delay was reasonably justified and the proceeds were escrowed, the payor need not account for or pay appropriately suspended proceeds until the justifying condition is satisfied. (Utah Code § 40-6-9(7)(d))

Statute text “the payor may not be required to make an accounting or payment of appropriately suspended proceeds until the condition which justified suspension has been satisfied.”

Division orders

The division-order rule we quote is within the suspense provisions: the board may find suspension reasonably justified when the owner fails or refuses to sign a division or transfer order acknowledging the claimed interest and giving a mailing address, provided the order does not alter or amend the lease.

Failure or refusal to sign a division or transfer order acknowledging the claimed interest and mailing address can justify suspension, but only if the order does not alter or amend the lease terms. (Utah Code § 40-6-9(8)(d))

Statute text “the person entitled to payment has failed or refused to execute a division or transfer order acknowledging the proper interest to which the person claims to be entitled and setting forth the mailing address to which payment may be directed, provided the division or transfer order does not alter or amend the terms of the lease.”

Owner remedies, notice and attorney fees

An owner may petition the Board of Oil, Gas, and Mining for a hearing on why proceeds were not paid. The division investigates and negotiates within 60 days; if unresolved the board may set a hearing within 30 days, and if it does not, the investigation information goes to the petitioner, who may sue. After a hearing finding the delay unjustified, the board may order an accounting and assess a penalty of up to 25% of the total proceeds and interest, and must set a final distribution date no later than 90 days after the hearing. Separately, the chapter, a suit by or against the board and a charged violation may not impair, abridge or delay a damages action, and a person damaged by a violation of the chapter may sue for damages.

Any person entitled to proceeds may petition the board for a hearing to determine why proceeds have not been paid. (Utah Code § 40-6-9(4))

Statute text “Any person entitled to oil and gas proceeds may file a petition with the board to conduct a hearing to determine why the proceeds have not been paid.”

The board sets the matter for division investigation and negotiation within 60 days; if unresolved, it may set a hearing within 30 days. (Utah Code § 40-6-9(5)-(6)(a))

Statute text “Upon receipt of the petition, the board shall set the matter for investigation and negotiation by the division within 60 days. (6) (a) If the matter cannot be resolved by negotiation as of that date, the board may set a hearing within 30 days.”

If the board does not set a hearing, the investigation information goes to the petitioner, who may seek a remedy in court. (Utah Code § 40-6-9(6)(b))

Statute text “If the board does not set a hearing, any information gathered during the investigation and negotiation shall be given to the petitioner who may then seek a remedy in a court of competent jurisdiction.”

If the delay was without reasonable justification and proceeds were escrowed, the board may assess a penalty of up to 25% of the total proceeds and interest in escrow; if not escrowed, up to 25% of the total proceeds and interest determined under (7)(a). (Utah Code § 40-6-9(7)(b))

Statute text “assess a penalty of up to 25% of the total proceeds and interest in the escrow account”

On finding the delay unjustified, the board must set a final distribution date no later than 90 days from the hearing. (Utah Code § 40-6-9(7)(c)(i))

Statute text “Upon finding that the delay of payment is without reasonable justification, the board shall set a date not later than 90 days from the hearing for final distribution of the total sum.”

The chapter and board proceedings may not impair, abridge or delay a cause of action for damages against a person violating the chapter, and a person damaged by a violation may sue for and recover the damages otherwise available. (Utah Code § 40-6-11(7))

Statute text “(a) This chapter, a suit by or against the board, and a violation charged or asserted against a person under this chapter, or a rule or order issued under the authority of this chapter, may not impair, abridge, or delay a cause of action for damages that a person may have or assert against any person violating this chapter, or a rule or order issued under the authority of this chapter. (b) A person damaged by a violation may sue for and recover whatever damages that the person otherwise may be entitled to receive.”

Check-stub disclosures

Each royalty payment must show, on the check stub or an attachment: lease/property/well name and ID number; month and year of sales; total volume sold; average price per unit; state severance, ad valorem and other production taxes; other deductions or adjustments; net value after taxes; the owner's decimal interest; the owner's share before deductions; the owner's share net of its share of deductions; and an address for questions. An owner who does not receive this information may notify the board by certified mail and request a division investigation, and a damaged owner may sue.

The required information must appear on the payor's check stub or an attachment to the payment. (Utah Code § 40-6-9.1(1))

Statute text “the following information shall be included on the payor's check stub or on an attachment to the form of payment:”

Required items include lease, property or well name and ID number; month and year of sales; and total volume sold. (Utah Code § 40-6-9.1(1)(a)-(c))

Statute text “(a) the lease, property, or well name, and any lease, property, or well identification number from which production is attributed; (b) the month and year of the sales included in the payment; (c) the total volume of oil or gas sold”

Required items include average price per unit; total state severance, ad valorem and other production taxes; other deductions or adjustments; and net value after taxes. (Utah Code § 40-6-9.1(1)(d)-(g))

Statute text “(d) the average price per unit of oil or gas sold; (e) the total amount of state severance, ad valorem, and other production taxes; (f) a list of any other deductions or adjustments; (g) the net value of total sales after taxes are deducted;”

Required items include the owner's decimal interest and the owner's share of total sales value before any deductions. (Utah Code § 40-6-9.1(1)(h)-(i))

Statute text “(h) the royalty owner's interest, expressed as a decimal number, in sales from the lease, property, or well; (i) the royalty owner's share of the total value of sales prior to any deductions;”

The statement must also show the owner's net share and an address for questions. (Utah Code § 40-6-9.1(1)(j)-(k))

Statute text “(j) the royalty owner's proportionate share of the sales value less the royalty owner's proportionate share of the deductions, as applicable; and (k) an address at which additional information pertaining to the royalty owner's interest in production may be obtained and questions may be answered.”

An owner who does not receive the information may notify the board by certified mail and request a division investigation; a damaged owner may proceed under § 40-6-11(7). (Utah Code § 40-6-9.1(2)(a), (3))

Statute text “A royalty owner who fails to receive the information required by this section may notify the board by certified mail of the problem and request that the division conduct an investigation.”

Unclaimed royalties (escheat)

Utah's Revised Uniform Unclaimed Property Act defines mineral proceeds (including royalties, overriding royalties and net revenue interests) and lists them as property. Section 67-4a-201 has no separate period for mineral proceeds; property not otherwise specified is presumed abandoned at the earlier of three years after the owner first has a right to demand it or the obligation to pay arises, and a debt of a business association is presumed abandoned three years after the obligation to pay arises. The program is run by the Utah State Treasurer's Unclaimed Property Division (mycash.utah.gov).

Mineral proceeds include amounts payable for extraction, production, or sale of minerals, including net revenue interests, royalties, overriding royalties, extraction payments and production payments. (Utah Code § 67-4a-102 (Mineral proceeds))

Statute text “for the extraction, production, or sale of minerals, including a net revenue interest, royalty, overriding royalty, extraction payment, or production payment”

Property includes mineral proceeds. (Utah Code § 67-4a-102 (Property))

Statute text “unused ticket for which the issuer has an obligation to provide a refund, mineral proceeds, or unidentified remittance”

Property not specified elsewhere is presumed abandoned at the earlier of three years after the owner first may demand it or the obligation to pay or distribute arises. (Utah Code § 67-4a-201(14))

Statute text “the earlier of three years after the owner first has a right to demand the property or the obligation to pay or distribute the property arises.”

A debt of a business association is presumed abandoned three years after the obligation to pay arises. (Utah Code § 67-4a-201(5))

Statute text “a debt of a business association, three years after the obligation to pay arises;”

Official unclaimed property search: Utah Unclaimed Property (Utah State Treasurer).

Scope notes

• Utah sets no automatic interest rate on every late payment; the monthly interest and penalty in § 40-6-9 are remedies the board may order after a hearing.

Sources

Last reviewed November 2, 2026.

• Utah Code § 40-6-9, Proceeds from sale of production -- Payment of proceeds -- Requirements -- Proceeding on petition to determine cause of nonpayment -- Remedies -- Penalties (current version; last amended Chapter 324, 2010 General Session). le.utah.gov refused direct curl connections; fetched via Firecrawl PDF parser. — Utah Legislature, Office of Legislative Research and General Counsel, fetched November 2, 2026
• Utah Code § 40-6-9.1, Payment information to royalty owners (enacted Chapter 132, 1995 General Session; current version) — Utah Legislature, Office of Legislative Research and General Counsel, fetched November 2, 2026
• Utah Code § 40-6-11 (effective 5/12/2020), excerpt of subsection (7), civil liability — Utah Legislature, Office of Legislative Research and General Counsel, fetched November 2, 2026
• Utah Code § 67-4a-201, When property presumed abandoned (Revised Uniform Unclaimed Property Act; effective 5/6/2026, amended Chapter 158, 2026 General Session) — Utah Legislature, Office of Legislative Research and General Counsel, fetched November 2, 2026
• Utah Code § 67-4a-102, Definitions (effective 5/6/2026) - excerpt of the definitions of Mineral, Mineral proceeds and Property, extracted verbatim by Firecrawl directQuote from the official PDF — Utah Legislature, Office of Legislative Research and General Counsel, fetched November 2, 2026

Related guides

• Royalty payment law by state (comparison of the covered states)
• Utah mineral rights
• Suspended royalties: why you are not getting paid
• Division orders explained
• How to read a royalty statement
• Unclaimed mineral royalties

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