If a gas lease does not specify how soon royalty payments will start after production, does an O&G company have a time limit in which to make the first payment? (This is in Caddo Parish, La.)

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Comment by E.D. Barnett on February 24, 2009 at 4:26pm
Thank you TX, your info is helpful.8~)
Comment by TXsharon on February 24, 2009 at 10:12am
In Texas:

"The mineral owner may encounter other questions and problems
apart from the terms of the division order. For instance,
how soon after production commences will the first royalty
check be issued? After the first royalty check is received, how
frequently will subsequent checks be rendered to the lessor?
If a royalty check is delinquent or withheld, will the mineral
owner receive interest on the unpaid balance?
The answers to these questions are governed both by the
lease terms and Texas statutory law. Unless the lease contains
terms to the contrary, Section 91.401 et seq. of the Texas
Natural Resources Code provides that the first royalty payment
must be tendered within 120 days after the end of the month in
which the first sale of production occurs . Thereafter, subsequent
royalty payments are to be tendered within 60 days after
the end of the month oil production is sold and within 90 days
after the end of the month gas production is sold."


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You probably have something similar if you live in LA.

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