S0806B1105A03466 KMK:EJH 01/20/22 #90 A03466
AMENDMENTS TO SENATE BILL NO. 806
Sponsor: SENATOR YAW
Printer's No. 1105
Amend Bill, page 2, lines 23 through 30; page 3, lines 1
through 30; page 4, lines 1 through 11; by striking out all of
said lines on said pages and inserting
Section 3.2. Payment information to [interest owners] royalty
owners for oil, natural gas and natural gas liquids
from a conventional formation.
Whenever payment is made [for oil or gas production to an
interest owner, whether pursuant to a division order, lease,
servitude or other agreement,] to a royalty owner for the
production of oil, gas or natural gas liquids from a
conventional formation, pursuant to an oil and gas lease, all of
the following information, at a minimum, shall be included on
the check stub provided to the royalty owner or on an attachment
to the form of payment provided to the royalty owner, unless the
information is otherwise provided on a regular basis:
(1) A name, number or combination of name and number
that identifies the lease, property, unit or well or wells
for which payment is being made; and the county in which the
lease, property or well is located.
(2) Month and year of [gas production] oil, gas or
natural gas liquids production for which payment is being
made.
(3) Total barrels of crude oil or number of Mcf of gas
or volume of natural gas liquids sold.
(4) Price received per barrel, Mcf or gallon.
(5) Total amount of severance and other production taxes
and other deductions permitted under the lease, with the
exception of windfall profit tax.
(6) Net value of total sales from the property less
taxes and deductions from paragraph (5).
(7) [Interest] Royalty owner's interest, expressed as a
decimal or fraction, in production from paragraph (1).
(8) [Interest] Royalty owner's share of the total value
of sales prior to deduction of taxes and deductions from
paragraph (5).
(9) [Interest] Royalty owner's share of the sales value
less the [interest] royalty owner's share of taxes and
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deductions from paragraph (5).
(10) Contact information, including an address and
telephone number.
Section 3.3. [Accumulation of proceeds from production.
(a) General rule.--Proceeds from production of oil and gas
may be accumulated and remitted to the persons entitled thereto
annually for the 12 months' accumulation of proceeds totaling
less than $100.
(b) Owner to be paid.--Notwithstanding any other provision
of this section to the contrary, all accumulated proceeds shall
be paid to the owner thereof when production ceases or upon
relinquishment or transfer of the payment responsibility.]
Payment information to royalty owners for oil, natural gas and
natural gas liquids from an unconventional formation.
(a) Payment information.--Whenever payment is made to a
royalty owner for the production of oil, gas or natural gas
liquids from an unconventional formation, pursuant to an oil and
gas lease, all of the following information, at a minimum, shall
be included on the check stub provided to the royalty owner or
on an attachment to the form of payment provided to the royalty
owner, unless the information is otherwise provided on a regular
basis:
(1) A common well name and the American Petroleum
Institute identification number that identifies the well for
which payment is being made.
(2) Month and year of oil, gas or natural gas liquids
production for which payment is being made.
(3) Total barrels of crude oil or number of Mcf or MMBtu
of gas and volume of natural gas liquids produced and sold
from each well.
(4) Price received by the payor per unit of oil, natural
gas and natural gas liquids produced and sold.
(5) The aggregate amounts for each category of
deductions for each well incurred by the payor which reduces
the royalty owner's payment, including all severance and
other production taxes.
(6) Net and gross value of the payor's total sales from
the sale of oil, gas and natural gas liquids from each well
less any deductions identified in paragraph (5).
(7) Royalty owner's legal and contractual interest in
the payor's share, expressed as a decimal or fraction.
(8) Royalty owner's share of the gross value of the
payor's total sales for the oil, gas and natural gas liquids
before any deductions identified in paragraph (5).
(9) Royalty owner's share of the sales value less the
royalty owner's share of taxes and any deductions identified
in paragraph (5).
(10) Payor's contact information, including an address
and telephone number.
Amend Bill, page 4, lines 26 and 27, by striking out "Subject
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to the provisions of section 3.3, if " and inserting
If
Amend Bill, page 5, lines 14 through 23, by striking out all
of lines 14 through 22 and "(c)" in line 23 and inserting
(e)
Amend Bill, page 5, line 24, by striking out "(d)" and
inserting
(f)
Amend Bill, page 6, line 19, by striking out "(d)" and
inserting
(f)
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