Bill No. 1371 amends the Production Revenue Standard Act concerning 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 specific timelines for payment, including provisions for annual remittance of proceeds under certain conditions. Notably, the bill introduces a new provision stating that if a physical 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 who fail to remit payments within the specified timeframes, detailing how interest on unpaid proceeds will be calculated. It also emphasizes that existing contractual rights related to gas balancing agreements remain unaffected. The bill allows for electronic payments to be made to owners or other entitled parties with mutual consent. The effective date for these changes is set for November 1, 2025.