Okla. Admin. Code § 165:10-25-3

Current through Vol. 42, No. 7, December 16, 2024

Section 165:10-25-3 - Escrow account requirements

(a) Monies which are directed to be paid under a Commission pooling order and which cannot be paid because the persons entitled thereto are unknown or cannot be located shall be placed into escrow accounts in a financial institution. The holder shall choose the institution. The holder and the financial institution may make such arrangements as are necessary and appropriate for the establishment of the account. Service charges, fees, and costs may be deducted from any interest generated by the monies but in no event shall such charges, fees, and costs be deducted from the principal. Any financially solid and stable holder may apply to the commission for an exception to the requirement to place monies into escrow accounts in a financial institution. The granting of an exception shall be within the sole discretion of the Commission and may only be granted upon the filing of a proper application therefor pursuant to notice given to the Manager of the Mineral Owners Escrow Account by mail at least ten days prior to the hearing and by publication one time at least 15 days prior to the hearing in a newspaper of general circulation in Oklahoma County and in a newspaper of general circulation in the county where the holder's principal office in the state is located. The granting of an exception shall not exempt the holder from any other requirements set forth in this Subchapter.

(b) Only one account need be established by each holder. If only one account is established, a record shall be make of deposits and withdrawals for each person for whom monies are being held. Either the holder or the financial institution may keep the deposit/withdrawal record.

(c) An application for an exception under (a) of this Section shall state that the holder has proof by the holder's annual financial statement that the it is a solid and stable holder. The holder must introduce its annual financial statement into evidence in the cause and the order, if one is issued, shall show that the annual financial statement was in fact introduced into evidence and considered by the Administrative Law Judge in making the determination to grant holder's request for an exemption under (a) of this Section, and holder shall submit a current financial statement on an annual basis thereafter.

(d) Withdrawals from such escrow account by the holder may only be made for the following purposes:

(1) To pay the rightful recipient of the monies upon presentation of a proper claim.

(2) To submit and pay to the commission the principal of all monies placed in escrow pursuant to 165:10-25-6.

(3) To correct an overpayment or other mistake made in the distribution of monies by the holder.

Okla. Admin. Code § 165:10-25-3

Amended at 9 Ok Reg 2337, eff 6-25-92

Amended by Oklahoma Register, Volume 32, Issue 23, August 17, 2015, eff. 8/27/2015.