Bill No. 1371 amends the Production Revenue Standard Act in Oklahoma, specifically addressing the payment of proceeds from oil and gas production. The bill clarifies that proceeds from production are to be treated as separate from other funds until paid to the rightful owners. It establishes timelines for payment, including provisions for annual remittance of small amounts and the handling of proceeds when title issues arise. Notably, the bill introduces a new provision stating that if a payment check is returned as undeliverable or is not cashed by the royalty owner, those proceeds will not accrue interest after the check's mailing date. The payor operator is required to maintain records of mailing dates and any undeliverable checks.

Additionally, the bill outlines the liability of first purchasers and holders of proceeds for failing to remit payments within specified timeframes, including shared liability among multiple parties. It also emphasizes that existing contractual rights related to gas balancing agreements remain intact and that payments can be made electronically with mutual consent. The act is set to take effect on November 1, 2025.