The oil and gas proceeds derived from the sale of production from any well
producing oil, gas or related hydrocarbons in New Mexico shall be paid to all persons
legally entitled to such payments, commencing not later than six months after the first
day of the month following the date of first sale and thereafter not later than forty-five
days after the end of the calendar month within which payment is received by payor for
production unless other periods or arrangements are provided for in a valid contract with
the person entitled to such proceeds.
Payment shall be made directly to the person or persons entitled thereto by the
payor and payment shall be deemed to have been made upon deposit in the United
States mail.
History: Laws 1985, ch. 55, § 3.
ANNOTATIONS
Allegations for claim. — Based on the plain language of the statute, in order to
maintain an Oil and Gas Proceeds Payment Act claim, a party must allege a potentially
successful claim for underpayment of royalties or theory of liability showing that it is
legally entitled to such payments, independent of any claim under the Oil and Gas
Payment Act. Elliott Indus. Ltd. P'ship v. Conoco, Inc., 407 F.3d 1091 (10th Cir. 2005).
Notes of Decisions
First Baptist Church of Roswell v. Yates Petroleum Corp., 2015 NMSC 4 (N.M. 2015).
· cites it 28× “In instances where payments cannot be made within the time period provided in Section 70-10-3 NMSA 1978, the payor shall create a suspense account on his [or her] books for such interest or may interplead the suspended funds into court.”
Abraham v. WPX Prod. Prods., LLC, 317 F.R.D. 169 (D.N.M. 2016).
· cites it 14× “’ ” (quoting N.M. Stat. Ann. § 70-10-3 )). 50. The NMPPA provides a specific time frame in which lessees on oil-and-gas lessees must pay royalty interest owners for proceeds they receive: The oil and gas proceeds derived from the sale of production from any well producing oil,…”
Anderson Living Trust v. Conocophillips Co., 952 F. Supp. 2d 979 (D.N.M. 2013).
· cites it 12× “the Proceeds Payment Act provides a remedy to royalty owners only if: (i) “the royalty payment has been withheld for longer than the statutorily authorized time period provided in Section 70-10-3;” and (ii) the royalty payor has withheld1 the payment “after the payor has…”
Anderson Living Trust v. WPX Energy Prod., LLC, 306 F.R.D. 312 (D.N.M. 2015).
· cites it 10× “’ ” (quoting N.M. Stat. Ann. § 70-10-3 )). 69. The NMPPA provides a specific time frame in which lessees on oil-and-gas lessees must pay royalty interest owners for proceeds they receive: The oil and gas proceeds derived from the sale of production from any well producing oil,…”
First Baptist Church of Roswell v. Yates Petroleum Corp., 2012 NMCA 64 (N.M. Ct. App. 2012).
· cites it 36× “In instances where payments cannot be made within the time period provided in Section 70-10-3 NMSA 1978, the payor shall create a suspense account on his books for such interest or may interplead the suspended funds into court.”
Elliott Indus. Ltd. P'ship v. BP Am. Prod. Co., 407 F.3d 1091 (10th Cir. 2005).
· cites it 2× “N.M. Stat. Ann. § 70-10-3 (2004). i. Meaning of Legal Entitlement In the Second Amended Complaint, Elliott asserted that Appellees’ underpayment of royalties is a failure to make full payments to Elliott for their pro rata share of proceeds from the sale of NGLs within the…”
First Baptist Church v. Yates Petroleum Corp., 2012 NMCA 064 (N.M. Ct. App. 2012).
· cites it 40× “In instances where payments cannot be made within the time period provided in Section 70-10-3 NMSA 1978, the payor shall create a suspense account on his books for such interest or may interplead the suspended funds into court.”
Anderson Living Trust v. Energen Res. Corp., 886 F.3d 826 (10th Cir. 2018).
“" N.M. Stat. Ann. § 70-10-3 . Energen did so, except it held royalty funds from a well in a suspense account from July 2007 to December 2012 until a title issue relating to that well was resolved in favor of the N-R Trust.”
First Baptist Church v. Yates Petroleum Corp., 2015 NMSC 004 (N.M. Ct. App. 2015).
· cites it 32× “In instances where payments cannot be made within the time period provided in Section 70-10-3 NMSA 1978, the payor shall create a suspense account on his [or her] books for such interest or may interplead the suspended funds into court.”
Anderson Living Trust v. Energen Resources Corp., 161 F. Supp. 3d 1055 (D.N.M. 2016).
· cites it 4× “” NMSA § 70-10-3 (emphasis). Thus, Defendant is correct that the suspension of payments to the individual New Mexico plaintiff was legally permitted under the statute.”
Anderson Living Trust v. Energen Resources Corp., 879 F.3d 1088 (10th Cir. 2018).
“” N.M. Stat. Ann. § 70-10-3 . Energen did so, except it held royalty funds from a well in a suspense account from July 2007 to December 2012 until a title issue relating to that well was resolved in favor of the N-R Trust.”
First Baptist Church of Roswell v. Yates Petroleum Corp. (N.M. 2014).
· cites it 30× “In instances where payments cannot be made within the time period provided in Section 70-10-3 NMSA 1978, the payor shall create a suspense account on his [or her] books for such interest or may interplead the suspended funds into court.”
Annotations are extracted automatically from the opinions in the
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treatment. Dots show Syfertize treatment of the citing case itself.