Texas Natural Resources Code

§ 91.402 — TIME FOR PAYMENT OF PROCEEDS

NR § 91.402Title 3. OIL AND GAS · Part B. CONSERVATION AND REGULATION OF OIL AND GAS · Ch. 91. PROVISIONS GENERALLY APPLICABLE · Art. J. PAYMENT FOR PROCEEDS OF SALE

Statute text

View on source

(a)The proceeds derived from the sale of oil or gas production from an oil or gas well located in this state must be paid to each payee by payor on or before 120 days after the end of the month of first sale of production from the well. After that time, payments must be made to each payee on a timely basis according to the frequency of payment specified in a lease or other written agreement between payee and payor. If the lease or other agreement does not specify the time for payment, subsequent proceeds must be paid no later than:

(1)60 days after the end of the calendar month in which subsequent oil production is sold; or

(2)90 days after the end of the calendar month in which subsequent gas production is sold.

(b)Payments may be withheld without interest beyond the time limits set out in Subsection (a) if:

(1)there is:

(A)a dispute concerning title that would affect distribution of payments;

…

Legislative history

Acts 2017, 85th Leg., R.S., Ch. 961 (S.B. 1965), Sec. 4, eff. September 1, 2017. Acts 2021, 87th Leg., R.S., Ch. 101 (S.B. 1259), Sec. 1, eff. May 24, 2021.