» When must oil and gas royalties be paid?

When must oil and gas royalties be paid?

Section 91.402 of the Texas Natural Resources Code provides that proceeds from the sale of oil or gas production must be paid on or before 120 days after the end of the month of the first sale of production from a well. After that time, payments must be made according to the frequency of payment specified in the lease. If the lease or other agreement does not specify the time for payment, subsequent proceeds must be paid no later than 60 days after the end of the calendar month in which subsequent oil production is sold or 90 days after the end of the calendar month in which subsequent gas production is sold. Under certain circumstances, such as an ongoing title dispute, payments may be delayed or suspended.

< Back to Oil and Gas Frequently Asked Questions

Website by SEO | Law Firm™, an Adviatech Company