Every producing state sets a deadline for paying royalties and an interest rate for missing it. Almost nobody tells mineral owners those numbers. Here they are, with the statute behind each one.
First payment is the deadline after production is first sold. Ongoing is the deadline for each month thereafter.
| State | First payment | Ongoing | Interest on late payment | Statute |
|---|---|---|---|---|
| Oklahoma | 6 months | Oil: end of 2nd month after sale Gas: end of 3rd month | 12% per year, compounded annually. Unmarketable title: WSJ prime (since Nov 2018) | 52 O.S. § 570.10 |
| Texas | 120 days after month of first sale | Oil: 60 days Gas: 90 days (if lease is silent) | NY Fed discount rate + 2 points. None while a bona fide title dispute exists | Tex. Nat. Res. Code §§ 91.402, 91.403 |
| New Mexico | 6 months | 45 days after month payor is paid | 18% per year penalty. Funds properly in suspense: Dallas Fed discount + 1.5% | NMSA §§ 70-10-3, 70-10-4, 70-10-5 |
| Kansas | No hard deadline; interest grace runs ~120 days | Interest starts 60 days after month of sale | NY Fed discount + 1.5 points, or the rate actually earned if segregated | K.S.A. 55-1614, 55-1615 |
| North Dakota | 150 days after production is marketed | Same 150-day standard | 18% per year. Does not apply during a genuine title dispute | N.D.C.C. § 47-16-39.1 |
| Colorado | 6 months after month of first sale | Oil: 60 days Gas: 90 days | 2× Kansas City Fed discount rate, simple, from date of each sale | C.R.S. § 34-60-118.5 |
| Wyoming | 6 months | 60 days after month of sale | 18% per year, plus court costs and attorney fees to the prevailing party | Wyo. Stat. §§ 30-5-301, 30-5-303 |
| Montana | 120 days after production is marketed | Oil: 60 days Gas: 90 days | Greater of 15% or prime + 6 points | Mont. Code §§ 82-10-103, 31-1-107 |
| Arkansas | 6 months (first purchaser) or 180 days (operator) | 60 days after month of sale | 12% per year unless a written agreement sets another rate | Ark. Code §§ 15-74-601, 15-74-604 |
| Louisiana | No statutory deadline; the lease governs | Lease governs; 30 days to cure after written notice | No fixed rate. Willful nonpayment can mean double royalties, interest, fees, and lease dissolution | La. R.S. 31:137 to 31:140 |
The threshold is the amount below which an operator may hold your money instead of cutting a check. The limitation period is how long you have to sue over an underpayment.
| State | Minimum payment rule | Time limit to sue | Forced pooling |
|---|---|---|---|
| Oklahoma | $10 to $100 may be paid annually; under $10 held until production ends | 5 years | Yes, Corporation Commission |
| Texas | Under $100 held until reached or 12 months, whichever first; monthly on written request | 4 years, and no discovery rule | Yes, but rarely granted |
| New Mexico | No threshold, but the 18% penalty does not apply under $100 | 6 years | Yes, Oil Conservation Division |
| Kansas | Under $100 annually if over $10; monthly on written request once over $25 | 5 years | No, unitization only |
| North Dakota | Under $50 may be paid semiannually | 6 years | Yes, Industrial Commission |
| Colorado | $100 or less for a 12-month period may be paid annually | 6 years | Yes, with 45%+ consent |
| Wyoming | $100 or less may be held up to 12 months; request payment at $25 | 10 years | Yes, Oil and Gas Conservation Commission |
| Montana | Under $50 semiannually; under $10 annually | 6 years (reduced from 8 in 2025) | Yes, Board of Oil and Gas Conservation |
| Arkansas | $10 to $150 annually; request payment once over $50 | 5 years | Yes, called integration |
| Louisiana | No statutory threshold located | 3 years for royalty underpayment | Yes, Commissioner of Conservation |
Start with the operator: call owner relations and ask, in writing if you can, why payment is being withheld. Most late payments are a bad address, an unsigned division order, or a title question the operator noticed and you did not. If the answer is unsatisfying, the leverage is that in most states the operator owes you interest by statute, often at rates well above what a bank pays, and in several states the prevailing party recovers attorney fees. Saying "I understand the statute provides interest on late payments" changes the tone of a phone call considerably.
In several states, yes, and by law. Texas, Kansas, Wyoming, North Dakota, and Montana all give royalty owners a statutory right to demand itemized information about deductions, volumes, and prices, generally by certified mail, with a deadline for the operator to respond. Texas even requires payors to notify owners annually that this right exists. Oklahoma requires an itemized listing of other deductions on request. Send the demand by certified mail and keep the receipt; the certification is what starts the clock.
Almost none of them, and this surprises people. Colorado is the exception: its Energy and Carbon Management Commission can actually adjudicate whether payment was due and what interest is owed. Everywhere else, royalty payment is a private contract matter, and the regulator will tell you so. The Texas Railroad Commission says plainly that it has no jurisdiction over royalty payments. That does not mean you have no remedy, it means the remedy is a demand letter and, if needed, a lawsuit, which is why the attorney-fee provisions in these statutes matter.
Between three and ten years depending on the state, and the clock is less forgiving than people assume. Texas is the harshest: four years, running from the date of the underpayment rather than from the day you discovered it, which the Texas Supreme Court confirmed in Shell Oil Co. v. Ross. Louisiana is three years. If you suspect a long-running underpayment, time is genuinely working against you.
Send a statement through Ask a Landman or text a photo to 918-984-1645 and we will read it with you, free. Our statement decoder explains every line, and the calculators check your decimal.
Ask a Landman Decode My StatementSources are each state's statutes, cited in the tables above; we verified every figure against the statutory text rather than secondary summaries. Laws change and courts interpret them: Montana shortened its limitation period in 2025, Oklahoma changed its unmarketable-title interest rate in 2018, and Colorado renamed its commission in 2023. Berlin Royalties is a mineral buyer and a landman shop, not a law firm, and this page is general information rather than legal advice for your situation. For a dispute worth real money, hire a lawyer in that state. Last reviewed August 2026.