Governor Mary Fallin has signed into law a bill making changes to the interest rate paid by oil and natural gas producers when there are issues with royalties on minerals.
The governor signed House bill 2775 making it effective Nov. 1 at which time changes to the Production Revenue Standards Act will happen. Under the new law, the interest rate will be set at the prime interest rate as reported by the Wall Street Journal.
Industry groups applauded the changes but also admitted that a small percentage of royalty owners will be affected. The new law will apply to royalties paid for minerals with unmarketable titles which can happen in the event of the death of a mineral owner or there is a question over the legal ownership.
Terry Stowers, executive director of the Coalition of Oklahoma Surface Mineral Owners has said the law will likely not affect the majority of mineral owners.
But Zack Lee with the Oklahoma Oil and Gas association indicated the new law will stop unwarranted costs and estra expenses for oil and natural gas operators.