Legislative
Update
Changes to Oklahoma Senate Bill 168 effective November 1, 2018
Oklahoma
require the holder of such proceeds, or the holder of such proceeds may elect , to interplead the proceeds and all accrued interest into court for a determination of the persons legally entitled thereto. Upon payment into court the holder of such proceeds shall be relieved of any further liability for the proper payment of such proceeds and interest thereon. (Changes effective November 1, 2018 are bold above)
Oklahoma HB2775 was signed by Governor Fallin 4/9/18
Any delay in determining the persons legally entitled to proceeds from production caused by unmarketable title shall not affect payments to persons whose title is marketable, or that portion of a person’s interest which is marketable. Late Payment Penalties: Marketable title – commencing not later than six (6) months after the date of first sale – that portion not timely paid shall earn interest at the rate of twelve percent (12%) per annum to be compounded annually, calculated from the end of the month in which such production is sold until the day paid. interest at the rate of (i) six percent (6%) per annum to be compounded annually for time periods prior to November 1, 2018, and (ii) the prime interest rate as reported in the Wall Street Journal for time periods on or after November 1, 2018 , calculated from the end of the month in which production was sold until such time as the title to such interest becomes marketable or the holder has received an acceptable affidavit of death and heirship in conformity with Section 67 of Title 16 of the Oklahoma Statutes, or as set forth in subparagraph b of this paragraph. Marketability of title is determined in accordance with the then current title examination standards of the Oklahoma Bar Association b. Where marketability has remained uncured, or the holder has not been provided an acceptable affidavit of death and heirship in conformity with Section 67 of Title 16 of the Oklahoma Statutes , for a period of one hundred twenty (120) days from the date payment is due under this section, any person claiming to own the right to receive proceeds which have not been paid because of unmarketable title may D. 2. a. Where such proceeds are not paid because the title thereto is not marketable, such proceeds shall earn
Oklahoma Statute Section 67 of Title 16 –
C. In order to establish marketable title pursuant to this section:
1. The affidavit or recital must state that the decedent died without a will, or if the decedent had a will, that the will was never probated in Oklahoma and a copy of the will is attached to the affidavit or recital, or if the will was probated that the severed mineral interest was omitted from the final decree of the decedent and a copy of the will and final decree is attached to the affidavit or recital; 2. The affidavit or recital must list the names of the decedent’s heirs and their relationship to the decedent; 3. The affidavit or recital must state that the maker is related to the decedent or otherwise has personal knowledge of the facts stated therein; 4. The affidavit or the title transaction that contains the recital must have been recorded for at least ten (10) years in the office of the county clerk in the county in which the real property is located; and 5. During the ten-year period following the recording of the affidavit or the title transaction that contains the recital, no instrument inconsistent with the heirship alleged in the affidavit or recital was filed in the office of the county clerk in the county in which the real property is located.
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N a t i o n a l A s s o c i a t i o n o f D i v i s i o n O r d e r A n a l y s t s
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