House Co-Sponsorship Memoranda

House of Representatives
Session of 2017 - 2018 Regular Session

Posted:	March 28, 2017 03:19 PM
From:	Representative Cris Dush
To:	All House members
Subject:	Defining Royalties and Wellheads

In response to a variety of questions and concerns that have arisen in relation to natural gas leases and royalties, I intent to reintroduce legislation which would amend the Oil and Gas Lease Act to clearly define the terms “Royalty” and “Wellhead.” In particular, the language defines the following; "Royalty" A lessor's ownership interest in the oil, natural gas or gas of any other designation produced from below a specific tract of real property, valued at the wellhead free of expenses of production and transportation. “Wellhead” The point at which oil, natural gas or gas of any other designation reaches the ground surface or departs from the subject real property for which a lease or other such agreement conveys the right to remove or recover oil, natural gas or gas of any other designation from the lessor to the lessee. This is a reintroduction of former HB 2319. Prior cosponsors include GROVE and MILLARD. CD:jl:cmc
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Introduced as HB1350