If a payor fails to make payment to the person entitled to payment within the period
provided in Section 70-10-3 NMSA 1978 and after the payor has been furnished with
the information required by Section 70-10-3.1 NMSA 1978, the payor shall pay the
person the unpaid amount of the payment and in lieu of the interest provided in Section
70-10-4 NMSA 1978 shall pay interest at the rate of eighteen percent per year on the
unpaid balance due, unless payment is excused by the happening of one or more of the
following:
A. the payor fails to make payment in good-faith reliance upon a title opinion by a
licensed New Mexico attorney making objection to the lack of good and marketable title
of record in the party claiming entitlement to payment and furnishes a copy thereof to
such party for curative action required thereby;
B. the payor receives information that in his good-faith judgment brings into
question the entitlement of the person claiming the right to the payment to receive the
payment or that has rendered the marketable title of record unmarketable or that may
expose the payor to the risk of multiple liability or liability to third parties if the payment
is made;
C. the total amount of oil and gas proceeds in the possession of the payor owed to
the owner of the oil and gas proceeds making claim to payment is less than one
hundred dollars ($100) at the end of any month; or
D. the party entitled to payment has failed or refused to execute a reasonable
division or transfer order acknowledging the proper interest to which he claims to be
entitled and setting forth a mailing address to which payment may be directed.
History: 1978 Comp., § 70-10-5, enacted by Laws 1991, ch. 235, § 4.
ANNOTATIONS
Repeals and reenactments. — Laws 1991, ch. 235, § 4 repealed former 70-10-5
NMSA 1978, as enacted by Laws 1985, ch. 55, § 5, relating to application, and enacted
a new section, effective June 14, 1991.
Notes of Decisions
Anderson Living Trust v. Conocophillips Co., 952 F. Supp. 2d 979 (D.N.M. 2013).
· cites it 15× “ConocoPhillips additionally argues that “[njothing in the Act suggests that the interest ‘penalty’ and attorneys’ fees provision apply to contractually-based claims by royalty owners contending payments previously received were incorrectly calculated under novel legal theories.”
Anderson Living Trust v. WPX Energy Prod., LLC, 306 F.R.D. 312 (D.N.M. 2015).
· cites it 9× “N.M. Stat. Ann. § 70-10-5 . Additionally, the lessee need not pay interest on unpaid balances if the lessee, has not received from the operator or lessee arranging for the sale of oil and gas “the name, the address, and the percentage of interest of each person to whom payment…”
Abraham v. WPX Prod. Prods., LLC, 317 F.R.D. 169 (D.N.M. 2016).
· cites it 8× “N.M. Stat. Ann. § 70-10-5 . Additionally, the lessee need not pay interest on unpaid balances if the lessee, has not received from the operator or lessee arranging for the sale of oil and gas “the name, the address, and the percentage of interest of each person to whom payment…”
Murdock v. Pure-Lively Energy 1981-A, Ltd., 775 P.2d 1292 (N.M. 1989).
· cites it 2× “NMSA 1978, Section 70-10-5 (Repl.Pamp. 1987) reads in part: "The penalty provisions of the Oil and Gas Proceeds Payment Act [70-10-1 to 70-10-5 NMSA 1978] shall not apply in the following instances: A.”
First Baptist Church of Roswell v. Yates Petroleum Corp., 2012 NMCA 64 (N.M. Ct. App. 2012).
· cites it 2× “In addition, the 1991 amendments moved penalty interest from Section 70-10-4 (1985) to Section 70-10-5 (1991). THE DISTRICT COURT DECISION {14} The district court first rejected Defendant’s argument that because Section 70-10-4 of the 1991 Act uses the phrase, “legally entitled…”
First Baptist Church v. Yates Petroleum Corp., 2012 NMCA 064 (N.M. Ct. App. 2012).
· cites it 2× “In addition, the 1991 amendments moved penalty interest from Section 70-10-4 (1985) to Section 70-10-5 (1991). THE DISTRICT COURT DECISION {14} The district court first rejected Defendant’s argument that because Section 70-10-4 of the 1991 Act uses the phrase, “legally entitled…”
Ulibarri v. Southland Royalty Co., LLC (D.N.M. 2019).
· cites it 5× “(citing N.M. Stat. Ann. § 70-10-5 ). Plaintiffs bring their OGPPA claim pursuant to § 70-10-5, asserting that since January 1, 2015, “Southland has failed to pay the full amount of royalties owed to Plaintiffs .”
Ulibarri v. Energen Resources Corp. (D.N.M. 2019).
· cites it 5× “(citing N.M. Stat. Ann. § 70-10-5 ). Plaintiff brings his claim for relief under the OGPPA pursuant to § 70-10-5, asserting that from September 1, 2007, to May 31, 2015, “Energen failed to pay the amount of royalties owed to Plaintiff .”
Snyder Ranches, Inc. v. Oxy USA Inc. (D.N.M. 2025).
· cites it 3× “NMSA 1978, § 70-10-5 (1991). There, the operator must pay the proceeds along with a punitive eighteen percent interest rate unless one of four exceptions apply.”
N.M. Stat. § 70-10-5(A): 2 cases
Anderson Living Trust v. Conocophillips Co., 952 F. Supp. 2d 979 (D.N.M. 2013).
“ConocoPhillips additionally argues that “[njothing in the Act suggests that the interest ‘penalty’ and attorneys’ fees provision apply to contractually-based claims by royalty owners contending payments previously received were incorrectly calculated under novel legal theories.”
Snyder Ranches, Inc. v. Oxy USA Inc. (D.N.M. 2025).
“NMSA 1978, § 70-10-5 (1991). There, the operator must pay the proceeds along with a punitive eighteen percent interest rate unless one of four exceptions apply.”
N.M. Stat. § 70-10-5(D): 1 case
Anderson Living Trust v. Conocophillips Co., 952 F. Supp. 2d 979 (D.N.M. 2013).
“ConocoPhillips additionally argues that “[njothing in the Act suggests that the interest ‘penalty’ and attorneys’ fees provision apply to contractually-based claims by royalty owners contending payments previously received were incorrectly calculated under novel legal theories.”
Annotations are extracted automatically from the opinions in the
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treatment. Dots show Syfertize treatment of the citing case itself.