This article originally appeared as a Gavel to Gavel guest column in the Journal Record on June 10, 2026.
By Phillips Murrrah attorney Colby D. Karcher
Colby D. Karcher
In May 2026, Oklahoma enacted significant amendments to the Production Revenue Standards Act (“PRSA”) through House Bill 1371, marking the most substantial update to the statute in decades. The legislation reflects a negotiated effort between industry participants and mineral owners to modernize payment practices, reduce disputes, and improve transparency.
A central feature of the amendments is the revision of interest on unpaid proceeds. The statute increases the applicable rate for certain late payments while shifting to a simple interest structure. At the same time the law clarifies when interest does not accrue, such as during probate proceedings, title disputes, owner-requested holds, or where payments remain uncashed, providing clearer guidance in areas that have historically generated litigation.
The amendments also establish the Mineral Owner’s Fund, which is an escrow-like account administered by the State Treasurer, to hold proceeds attributable to unknown or unlocatable owners, with specific procedures for remitting funds, providing notice, and discharging liability once payment is made into the fund.
The Act also maintains general requirements of payment timing, but adds more detailed provisions regarding minimum payment thresholds, aggregation of small amounts, suspension of payments where title is not marketable, and guidelines regarding proceeds held in suspense for longer than thirty-six months.
While the amendments to the PRSA provide greater clarity, they also introduce new compliance considerations. Operators and first purchasers should review existing payment practices, title review procedures, and recordkeeping protocols to ensure alignment with the revised statute, particularly with respect to interest calculations, suspension practices, and timelines for remitting funds.
In addition, internal processes for tracking unlocatable owners and handling long-term suspense accounts will likely require adjustment. Early attention to these areas may reduce exposure to disputes as the amendments begin to be implemented.
As stakeholders begin operating under the updated framework, the practical application of these provisions, and any resulting litigation, will further define the contours of Oklahoma’s modernized PRSA.
About the author:
Colby D. Karcher is a litigation attorney at the law firm of Phillips Murrah who represents individuals and both privately-held and public companies in a wide range of civil litigation matters
CONTACT: ckarcher@phillipsmurrah.com | 405.552.2408
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