Okla. Stat. tit. 68, § 68-2385.28

A. Any amounts withheld in accordance with the provisions of

Section 2385.26 of this title shall be deemed to be held in trust

for the State of Oklahoma, and, as trustee, the remitter shall have

a fiduciary duty to the State of Oklahoma in regard to such amounts

and shall be subject to the trust laws of this state. Any remitter

who fails to pay to the Tax Commission any amounts required to be

withheld by such remitter, after such amounts have been withheld

from oil or gas royalty payments, and appropriates the amount held

in trust to the remitter’s own use, or to the use of any person not

entitled thereto, without authority of law, shall be guilty of

embezzlement.

B. If any remitter fails to withhold the amounts required to be

withheld by Section 2385.26 of this title and thereafter income tax

is paid by the recipient of the oil or gas production payment with

respect to such payment, the amount so required to be withheld shall

not be collected from the remitter but such remitter shall not be

relieved from the liability for penalties or interest otherwise

applicable because of such failure to withhold such amount.

C. If a remitter fails to file a return or to pay to the Tax

Commission the amounts withheld within the time prescribed by

Sections 2385.25 through 2385.28 of this title, there shall be

imposed on the remitter a penalty equal to ten percent (10%) of the

amount required to be withheld, or ten percent (10%) of the amount

of the underpayment of the amount required to be withheld, if such

failure is not corrected within fifteen (15) days after the tax

becomes delinquent. There shall also be imposed on such remitter

interest at the rate of one and one-quarter percent (1 1/4%) per

month during the period such underpayment exists. For the purposes

of this subsection, "underpayment" shall mean the excess of the

amount required to be paid over the amount thereof actually paid on

or before the date prescribed therefor. Such penalty and interest

shall be added to and become a part of the amount assessed.

However, the Tax Commission shall not collect the penalty assessed

if the remitter remits the amount required to be withheld within

thirty (30) days of the mailing of a proposed assessment or

voluntarily pays such amount upon the filing of an amended return.

D. Any remitter who is required under the provisions of

subsection C of Section 2385.27 of this title to furnish a statement

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1088

to a recipient of oil or gas royalty payment, but who willfully

fails to furnish such recipient the statement, shall be punished by

an administrative fine not exceeding One Thousand Dollars

($1,000.00).