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Committee advances bill on royalty interest penalties while sponsors continue stakeholder talks
Summary
House Bill 13‑71, an Oklahoma Petroleum Alliance request bill, would adjust interest and penalty treatment on royalty payments mailed within statutory timelines; the committee passed it and sponsors said they are still negotiating final language with royalty‑owner groups.
The House Energy and Natural Resources Committee voted to advance House Bill 13‑71, a request bill from the Oklahoma Petroleum Alliance that would change how interest and penalties apply to royalty payments mailed to royalty owners.
The presenter said the bill does not remove the existing six‑month statutory window for royalty payments but would protect producers from interest penalties when checks are mailed within that six‑month period even if the payee delays depositing the check. The sponsor described the proposal as balancing producer protections with the royalty owner’s interest in timely payment and said he is working with the royalty owner coalition, Farm Bureau, and other stakeholders to refine language.
Representative Heffner and Representative LePak asked whether the proposal could be abused if a producer mailed checks to a wrong address or mailed checks intentionally to avoid penalty exposure. The sponsor said parties are negotiating protections and that litigation remains an avenue if disputes arise. Representative Dack asked whether certified mail or other recordkeeping practices are required; the sponsor said those practices vary by company and that ACH payment usage reduces disputes but the bill focused on physical checks.
Representative Roberts asked whether stakeholders were comfortable with advancing the bill despite open language work; the sponsor said stakeholders were willing to advance the bill out of committee and continue negotiations. The committee recorded a 10‑aye, 0‑nay vote to pass the bill out of committee. The transcript does not include final statutory text or an agreed edit; the sponsor and stakeholders plan further work before subsequent steps.
