State lawmakers and Gov. Kevin Stitt have finalized a landmark agreement between mineral owners and the oil and gas industry with the passage and signing of House Bill 1371. The measure represents a show of unity, with both sides working together to modernize outdated provisions of the Production Revenue Standards Act (PRSA).

“This legislative session began with a clear message from The Petroleum Alliance: Oklahoma has an opportunity to send a strong signal that our state welcomes oil and natural gas investment,” Petroleum Alliance Chairman Kim Hatfield said. “HB 1371 is proof that industry leaders, mineral owners, and policymakers can come together to modernize outdated laws, create certainty, and strengthen Oklahoma’s position as a leader in American energy.”

HB 1371, signed by Stitt on Wednesday during the Alliance’s Sine Die celebration, delivers a series of long-negotiated updates aimed at improving transparency, reducing disputes, and creating a fair and predictable framework for all parties.

Key provisions of the bill include:

• Increasing interest on late payments to mineral owners from 12% compounded to 15% simple interest.
• Establishing the Mineral Owner’s Fund, an escrow account overseen by the State Treasurer
• Allowing operators, after 36 months, to remit unpaid proceeds to the Fund, thereby releasing the operator from further liability.
• Making it easier for unlocated mineral owners to determine whether they are owed unpaid proceeds through the searchable Mineral Owner’s Fund, modeled after the state’s unclaimed property system, which is published online and twice annually in newspapers across Oklahoma.
• Clarifying that interest does not accrue during certain common delays, including: probate issues, lien disputes, owner-requested holds, and uncashed checks.

With its enactment, HB 1371 stands as the most significant update to Oklahoma’s PRSA in decades.