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). “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). “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). “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). “§ 30-5-302. Payment for production; interest on late payments.”
Indep. Producers Mktg. Corp. v. Cobb, 721 P.2d 1106 (Wyo. 1986). “" 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). “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). “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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