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.
ANNOTATIONSAllegations 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).