S.B. 470 Summary

• Removes requirement that interest on unpaid oil and gas proceeds be compounded annually; interest on proceeds not timely paid now accrues at 12% per annum without annual compounding.

• Reduces interest rate to 6% per annum (non-compounded) for proceeds withheld due to unmarketable title, with operator permitted to presume proceeds abandoned and remit to state under Unclaimed Property Act after 2 years of unmarketable title.

• Authorizes holders of proceeds to interplead unpaid amounts into court for determination of legal entitlement after 120 days of unmarketable title delay.

• Clarifies payment timelines for royalty proceeds from gas production, allowing operators receiving royalty proceeds as producing owners to consolidate payment timing with other producing owners.

• Establishes that Production Revenue Standards Act provides exclusive remedy for unpaid proceeds, with limitations on damages unless holder acted with actual, knowing, willful intent to deceive or deprive; effective November 1, 2015.