A. The following sales are exempt from the provisions of the Natural Gas Market Sharing Act:
1. Sales pursuant to contracts for an initial term of more than one (1) year entered into prior to January 1, 1985, or any successor, replacement, or rollover contract thereto entered into prior to January 1, 1990. This subsection shall not apply to participating mineral owners who were sharing in any contract on January 1, 1992 and continue to share in such contract on September 1, 1992. Such participating mineral owners shall be subject to all other provisions of this act;
2. Sales pursuant to contracts which provide for:
3. Sales of natural gas liquids extracted as a result of mechanical processing of the natural gas stream for the removal of liquid components other than methane.
B. Owners in a well shall not be entitled to elect to market share pursuant to the provisions of the Natural Gas Market Sharing Act if in such well, such owners:
1. Are subject to a balancing agreement or other written agreement which expressly provides for the taking, sharing, marketing or balancing of gas in a manner other than as provided for in the Natural Gas Market Sharing Act;
2. Have terminated their contract with a purchaser for value received, until the expiration of the remainder of the term provided in such contract;
3. Have terminated market sharing within the previous twelve (12) months; or
4. Are currently overproduced owners.
Added by Laws 1992, c. 190, § 21, eff. Sept. 1, 1992.