» The oil company is not paying my royalties timely.  What can I do?

The oil company is not paying my royalties timely. What can I do?

If your lease does not specify the remedy, then the answer to this question is governed by Section 91.401-91.406 of the Texas Natural Resources Code. Under that statute, if the payments are not timely, the oil company must pay interest on the royalty payments at the rate provided by the statute. Before suing for untimely payment, however, you must generally give written notice to the oil company under Section 91.404 of the Texas Natural Resources Code. There are certain circumstances under which the oil company may be allowed to suspend or delay royalty payments without penalty, such as when there is a title dispute.

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