What legal remedies are available if a company fails to pay royalties on time?

If a company fails to pay royalties on time in Virginia, there are several legal remedies available. Most commonly, the person who owns the royalty interest may be able to file a lawsuit against the company to recover the back payments, plus interest and legal fees. Additionally, oil and gas companies can be held liable for fees if they do not comply with the Virginia Oil and Gas Law, which requires oil and gas companies to provide accurate statements of production and royalty payments. The state of Virginia also has a Department of Mines, Minerals, and Energy (DMME) that is responsible for enforcing oil and gas laws. If DMME finds a violation of the law, the company can be fined and even face criminal charges. Additionally, the DMME can file a civil lawsuit on behalf of the person with the royalty interest, collecting back payments as well as interest and penalties. Owners of the royalty interest can also issue a demand to the oil and gas company in question, requesting a detailed statement of account and for payment of any and all unpaid funds. Such owners may also be eligible to apply for a lien against the company’s property or assets until the royalties have been paid. Additionally, owners of royalty interests may be eligible to receive a per diem of up to $100 against the company for each day the company fails to pay royalties. All of these remedies are enforceable in the state of Virginia.

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What legal remedies are available if a company fails to pay royalties on time?

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