55-1622. Oil and gas payments to interest owners; specific listing of information; when.
55-1622
55-1622. Oil and gas payments to interest owners;specific listing of information; when.(a) Upon written request by the owner of a royaltyinterest inoil or gas production, submitted to the payor bycertified mail, the payor shall provide to the royaltyowner in writing any of the following information which has beenspecifically requested:
(1) Each lease, property or well identification number used by the payor forroyalty payment purposes and corresponding lease, property or wellidentificationnumber(s) used for identification by the department of revenue, statecorporationcommission or American petroleum institute (API).
(2) Each lease, property or well name and its corresponding section,township,range and county.
(3) The field name or producing formation.
(4) For a given sales period for which payment has been received or is duetheroyalty owner, the total produced volume as reported for each well, lease orunit to thestate corporation commission and department of revenue.
(5) A specific listing of the amount and purpose of any other deductions oradjustments from the royalty owner's share of the sale of oil and gas notidentified on thepayment statement.
(6) Whether any payments reported on payor's statement are from asplit-streamsale and, if so, the manner in which the payor accounts to the royalty ownerfor such sale.As used in this paragraph, "split-stream sale" means a sale for which thepayment from apayor to the royalty owner is for the sale of less than all of the oil and gasproduced andsold from the lease or well for the sales period.
(7) Whether the sale of any of the production for which payment is made bypayor has been made to an affiliate of the payor. As used in this paragraph,"affiliate"means any entity which, directly or indirectly, controls or is controlled by,or is undercommon control with, the payor.
(b) Any request made by a royalty owner pursuant to this section shall bemade inwriting, specifying the information desired and the sales period or periods forwhichinformation is needed, and shall be made by certified mail. The payor shallrespond tosuch a request by certified mail not later than the 60th day after the date therequest isreceived. A payor shall not be required by virtue of this section to: (1)Provide anyinformation pursuant to a request made on behalf of multiple royalty owners;(2) provide anyinformation forsales periods prior to the 12-month period immediately preceding the first dayof themonth in which the request is received, except that, if adjustments to aroyalty owner'spayment have been made within such 12-month period for sales periods prior tosuch 12-month period, information concerning such adjustments shall beprovided; and(3) seekinformation from other payors or third parties.
(c) If a payor does not have any of the information requested by a royaltyownerpursuant to subsection (a), the payor shall provide to the royalty owner thename andaddress of the seller of the production for which the royalty owner is beingpaid by payor.A royalty owner thereafter may request from the seller the information notprovided bythe payor and the seller shall respond to the royalty owner in the same mannerasprovided for in this section. As used in this subsection, "seller" means thelessee of theoil and gas lease from which a royalty owner derives its royalty interest orthe operator ofthe oil and gas production unit which produced the oil and gas for whichpayment isbeing made.
History: L. 1997, ch. 136, § 3;L. 2006, ch. 10, § 1; July 1.