(1) The proceeds derived from the sale of oil or gas production from any oil or gas well shall be paid to persons legally entitled thereto, commencing no later than six (6) months after the date of first sale and thereafter no later than sixty (60) days after the end of the calendar month within which subsequent production is sold or as provided for under subdivision (b)(2) of this section.
(2) The payment of proceeds under subsection (a) of this section is to be made to persons entitled thereto by the first purchasers of the production.
(3) The payment may be made annually for the aggregate of up to twelve (12) months of accumulation of proceeds if the aggregate amount owed is at least ten dollars ($10.00), but less than one hundred fifty dollars ($150), provided, upon written request by the royalty owner, the payment shall be made when the aggregate amount exceeds fifty dollars ($50.00). Accumulated amounts of less than ten dollars ($10.00) may be held but shall be paid when production ceases or by the payor of the payment upon relinquishing responsibility.
(4) As used in this subchapter, “first purchaser” means the first commercial purchaser after completion of the well and shall not include purchasers of oil or gas during initial testing prior to completion.
(5) Any delay in determining the persons legally entitled to an interest in the proceeds from production caused by unmarketable title to the interest shall not affect payments to persons whose title is marketable.
(6) When payment has not been made within the time limits specified in this subchapter, the first purchaser shall pay interest to those legally entitled to the withheld proceeds commencing on the payment due date at the rate of twelve percent (12%) per annum on the nonpaid amounts unless a different rate of interest is specified in a written agreement between the payor and the payee.
(7) The first purchaser shall be exempt from the provisions of this subchapter, and the owner of the right to drill and to produce under an oil and gas lease or force pooling order shall be substituted for the first purchaser therein when the owner and purchaser have entered into arrangements in which the proceeds are paid by the purchaser to the owner, who assumes the responsibility of paying the proceeds to persons legally entitled thereto.
(8) Moneys paid by the payor under this section may be paid by either check or any form of electronic funds transferred to the persons legally entitled to the moneys under § 15-72-305.