Wyoming Royalty Payment Act

The Wyoming Royalty Payment Act, Wyo. Stat. Ann. 30-5-301 through 305, requires royalty payments to be made to the royalty interest owners within certain time frames. That act also provides a penalty of 18% interest if the statutes are not followed and the payments are not made within the prescribed time frames. However, Wyo. Stat. Ann. 30-5-302 allows an operator to escrow funds if the payments cannot be paid to the royalty interest owner within the prescribed time. Specifically, that statute provides, in relevant part, "In instances where payment cannot be made for any reason within the time limits specified in Wyo. Stat. Ann. 30-5-301(a), the lessee or operator, purchaser or other party legally responsible for payment shall deposit all proceeds credited to the eventual interest owner to an escrow account in a federally insured bank or savings and loan institution in Wyoming, using a standard escrow document form approved by the Attorney General of Wyoming, which deposit shall earn interest at the highest rate being offered by that institution for the amount and term of such deposits.

Royalty Escrow Agreement Form

Attorney General Opinion