Royalty Compliance

The Royalty Compliance Section assures timely and accurate payment of royalties in return for the removal of minerals from State Trust Lands. In addition, this section serves over 400 oil, gas, coal, sand & gravel, and hard mineral companies by providing them with information for State reporting guidelines.

The Section processes royalty and production reports to ensure the trust receives full and fair value for the minerals that are extracted from State Trust Land.

What does this mean to the public?

Staff works in conjunction with companies to help maintain compliance.

The Section conducts audits to recover unpaid royalties. Penalties from these audits are deposited in an account to be distributed to the County in which the lease is located. These funds are distributed by the State Treasurer’s Office. Interest funds from these audits are deposited to the assigned Permanent Income Fund for specific uses during the budget cycle.

By implementing the Leasing and Royalty Compliance System (LARCS) software, staff is now able to process funds in a more effective and efficient manner; and, reporters and payers of royalty information can use real time on-line report submission. This insures proper distribution of royalties received from State Trust Lands.