How to Remit Royalty Payments

The basic procedures for remitting royalty payments are set forth below. For comprehensive requirements, please refer to the Monthly Report of Minerals Subject to State Royalty – Instructions [Download:].

Should you have any questions, please contact John Schott at (225) 342-8736 or John.Schott@la.gov.

Basic Procedures

1. Contact John to obtain your payor number and complete a Payor Information Sheet [Download:].

2. Prepare a Payor Notification Form [Download:or] for each of the properties on which you will pay.

3. Royalty payments are to be made monthly using the Monthly Report of Minerals Subject to State Royalty [Download:or]. Oil royalty is due the 25th of the month following disposition. Gas and plant products are due the 25th of the 2nd month following disposition. An acknowledgement form [Download:or] must accompany the report.

4. Royalty payments [Download:or] exceeding $50,000.00 must be sent via ACH or wire transfer. Failure to do so may result in a late payment penalty.

5. Interest and penalty charges are applicable on late royalty payments. Interest charges cannot be waived; however, penalty waivers can be granted. All penalty waiver requests must be detailed in writing and are granted by the State Mineral Board or their designee.

6. Any single credit adjustment over $25,000 must go through a recoupment process. Detailed worksheets must accompany any recoupment request and are granted by the State Mineral Board.

7. All the items mentioned above should be sent to the Office of Mineral Resources, Attention: Mineral income Division, 617 North Third Street, 8th Floor, Baton Rouge Louisiana 70802.

Forms mentioned on this page...

xlsx xls pdf Monthly Report of Minerals Subject to State Royalty – Instructions     Payor Information Sheet     Payor Notification Form   Monthly Report of Minerals Subject to State Royalty Royalty Acknowledgement Form   Royalty Payments

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