Oklahoma Statutes

Okla. Stat. tit. 52, § 903 (2026)

Failure to pay proceeds from production - Remedies

✓ current as of July 2026

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Except for the right to enforce lien rights under private agreement or under Sections 548 through 549.12 of Title 52 of the Oklahoma Statutes and except where specific remedies are provided by private agreement, and as long as paragraph 1 of subsection D of Section 570.10 of Title 52 of the Oklahoma Statutes provides for an interest rate equal to or greater than twelve percent (12%) compounded annually, the Production Revenue Standards Act shall provide the exclusive remedy to a person entitled to proceeds from production for failure of a holder to pay the proceeds within the time periods required for payment. The interest amounts set forth in subsection D of Section 570.10 and the remedies set forth in subsection C of Section 570.14 of Title 52 of the Oklahoma Statutes, with the term “actual damages” as used therein being limited to the proceeds due and the interest as provided in subsection D of Section 570.10 of Title 52 of the Oklahoma Statutes, are deemed to be adequate remedies for failure to pay proceeds within the time periods required for payment and no other penalty or damages shall be recoverable in any litigation involving a claim for unpaid or

underpaid proceeds from production including, without limitation, punitive or exemplary damages or disgorgement damages, unless there shall be a determination by the finder of fact upon clear and convincing evidence that the holder who failed to pay such proceeds did so with the actual, knowing and willful intent: (a) to deceive the person to whom the proceeds were due, or (b) to deprive proceeds from the person the holder knows, or is aware, is legally entitled thereto. Added by Laws 2012, c. 201, § 3, emerg. eff. May 8, 2012.

Notes of Decisions

Cited in 3 cases (1 in the last 5 years), 2019–2025 · leading case: Cline v. Sunoco (10th Cir. 2025).

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Cline v. Sunoco (10th Cir. 2025). · cites it 2× “See Okla. Stat. Ann. tit. 52, § 903 (allowing punitive damages under the ELRA if a factfinder determines “upon clear and convincing evidence” that the defendant failed to pay required proceeds “with the actual, knowing and willful intent: (a) to deceive the person to whom the…”

Cline v. Sunoco, Inc. (R&M) (E.D. Okla. 2019). “See Okla. Stat. tit. 52, § 903 . Sunoco omits the fact that the statute unequivocally creates an exception to allow for other remedies if Cline can show that Sunoco violated the PRSA knowingly or willfully.”

Cline v. Sunoco, Inc. (R&M) (E.D. Okla. 2020). “The Energy Litigation Reform Act Allows Cline’s Recovery In its reply brief, Sunoco raised again its argument that the Energy Litigation Reform Act (“ELRA”), Okla. Stat. tit. 52, § 903 , only applies to claims for “proceeds,” not “interest,” and, therefore, Cline may not recover…”

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