This set of frequently asked questions (FAQ) is provided as an informal guide to members of the public seeking information or legal services the Railroad Commission CANNOT provide. Since the Texas Legislature has given the Railroad Commission limited authority to regulate the oil and gas industry in Texas, our staff cannot advise you in all oil and gas matters. Areas over which the Railroad Commission has no authority include lease and royalty matters (including leasing, payment of royalties and the right to receive royalties), the financing of or investment in oil and gas activities, and bankruptcy.
The purpose of this page is to increase awareness of royalty payment requirements. It is not intended to serve as legal advice. Consult with your own attorney about questions concerning royalty payments.
Also, the lease or another contract may provide different requirements for payment than this statute. Working interest owners should check their lease terms so that they can be sure payments are made as required.