Wyoming Statutes

Wyo. Stat. § 30-5-302 (2026)

Payment for production; interest on late

✓ current as of May 2026
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payments.

Any delay in determining any person legally entitled to an
interest in the proceeds from production shall not affect
payments to all other persons entitled to payment. In instances
where payment cannot be made for any reason within the time
limits specified in W.S. 30-5-301(a), the lessee or operator,
purchaser or other party legally responsible for payment shall
deposit all proceeds credited to the eventual interest owner to
an escrow account in a federally insured bank or savings and
loan institution in Wyoming, using a standard escrow document
form approved by the attorney general of Wyoming, which deposit
shall earn interest at the highest rate being offered by that
institution for the amount and term of such deposits. The escrow
agent may commingle monies received into escrow from any one
lessee or operator, purchaser or other party legally responsible
for payment. Payment of principal and accrued interest from such
accounts shall be paid by the escrow agent to all persons
legally entitled thereto within thirty (30) days from the date
of receipt by the escrow agent of final legal determination of
entitlement thereto. If the escrow agent is unable to deliver
the payment to the legally entitled person within three (3)
years from the end of the month in which the escrow agent first
received notice of the person legally entitled to the payment,
the payment shall be considered unclaimed for purposes of W.S.
34-24-101 through 34-24-139.     Applicable escrow fees shall be
deducted from the payments.
Notes of Decisions
Cited in 8 cases (1 in the last 5 years), 1986–2025 · leading case: Ultra Resources, Inc. v. Hartman, 2010 WY 36 (Wyo. 2010).
Ultra Resources, Inc. v. Hartman, 2010 WY 36 (Wyo. 2010). · cites it 4× “There is, however, a good faith exception included in § 30-5-302 which allows a party legally obligated to pay a royalty to escrow the funds until a determination is made as to who is legally entitled to payment.”
Moncrief v. Harvey, 816 P.2d 97 (Wyo. 1991). · cites it 6× “They point to the language of W.S. 30-5-302, wherein it provides: "Any delay in determining any person legally entitled to an interest in the proceeds from production shall not affect payments to all other persons entitled to payment.”
Lon V. Smith Found. v. Devon Energy Corp., 403 P.3d 997 (Wyo. 2017). · cites it 11× “Did the district court properly dismiss the Foundation’s claim that Devon violated Wyo. Stat. Ann. § 30-5-302 when it is undisputed that Devon held ORRI ■ proceeds in Devon’s own “suspense account” and not in an interest-bearing • account in a Wyoming financial institution? 3.”
Morris v. CMS Oil & Gas Co., 2010 WY 37 (Wyo. 2010). · cites it 4× “§ 30-5-302. Payment for production; interest on late payments.”
Indep. Producers Mktg. Corp. v. Cobb, 721 P.2d 1106 (Wyo. 1986). · cites it 4× “" Section 30-5-302 requires that the payor hold late payments in escrow for the benefit of the royalty interest owner, while § 30-5-303 creates an interest penalty of eighteen percent for a violation of § 30-5-301(a), supra, and provides for an award of attorney's fees if…”
Chesapeake Expl., Llc, an Oklahoma Ltd. Liab. Co. v. Morton Prod. Co., Llc, a Wyoming Ltd. Liab. Co., 2025 WY 15 (Wyo. 2025). · cites it 2× “1991) (citing Wyo. Stat. Ann. § 30-5-302 ). We interpret Section 302 as providing a good faith exception which allows a party legally obligated to pay a royalty to escrow the funds until a determination is made as to who is legally entitled to payment.”
Cities Serv. Oil & Gas Corp. v. State, 838 P.2d 146 (Wyo. 1992). · cites it 2× “We held that a lessee who knowingly 10 failed to pay (or place into escrow pursuant to Wyo.Stat. § 30-5-302) royalty proceeds to an assignor who reserved a five percent overriding royalty interest was liable for eighteen percent per annum penalty interest for unpaid royalties…”
Chevron v. Bolack (10th Cir. 1999). “See Wyo. Stat. Ann. § 30-5-302 . “The Royalty Payment Act also provides protection to the legally responsible payor.”
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