A. Any person authorized to stop and inspect a vehicle pursuant to Section 152.6 of this title shall seize any unlawful oil or unlawful gas and shall seize any vehicle or trailer which is being used to transport such unlawful oil or unlawful gas. Except as authorized by Section 152.8 of this title, such property shall be held as evidence until a forfeiture has been declared or a release ordered.
B. Notice of seizure and intended forfeiture proceeding shall be filed in the office of the clerk of the district court for the county in which such unlawful oil or unlawful gas and vehicle or trailer is seized and shall be given all owners and parties in interest.
C. Notice shall be given to:
1. The Oklahoma Tax Commission Gross Production Division;
2. Each owner or party in interest whose rights, title, or interest is of record in the Oklahoma Tax Commission, by mailing a copy of the notice by certified mail to the address as given upon the records of the Oklahoma Tax Commission;
3. Each owner or party in interest whose name and address is known, by mailing a copy of the notice by registered mail to the last-known address; and
4. All other owners, whose addresses are unknown, but who are believed to have an interest in the unlawful oil or unlawful gas, vehicle or trailer, by one publication in a newspaper of general circulation in the county where the seizure was made.
D. Within sixty (60) days after the mailing or publication of the notice, the owner of the unlawful oil or unlawful gas, vehicle or trailer and any other party in interest or claimant may file a verified answer and claim to the unlawful oil or unlawful gas, vehicle or trailer described in the notice of seizure and of the intended forfeiture proceeding.
E. If at the end of sixty (60) days after the notice has been mailed or published there is no verified answer on file, the court shall hear evidence upon the fact of the unlawful use and shall order the unlawful oil or unlawful gas, vehicle or trailer forfeited to the state, if such fact is proved.
F. If a verified answer is filed, the forfeiture proceeding shall be set for hearing.
G. At the hearing the state shall prove beyond a reasonable doubt by competent evidence that the oil or gas seized is unlawful oil or unlawful gas and that any vehicle or trailer seized was being used to transport the unlawful oil or unlawful gas.
H. The claimant of any right, title, or interest in the unlawful oil, unlawful gas, vehicle or trailer may prove that the lien mortgage or conditional sales contract of the claimant is bona fide and that such right, title, or interest was created without any knowledge of the unlawfulness of the oil or gas or that the oil or gas became unlawful without the knowledge of the claimant after the creation of the interest of the claimant, or that the vehicle or trailer was being used for the purpose charged without the knowledge of the claimant.
I. In the event of such proof, the court shall order the unlawful oil or unlawful gas, vehicle or trailer released to the bona fide or innocent owner, lien holder, mortgagee, or vendor if the amount due the person is equal to, or in excess of, the value of the unlawful oil or unlawful gas, vehicle or trailer as of the date of the seizure.
J. If the amount due to such person is less than the value of the unlawful oil or unlawful gas, vehicle or trailer or if no bona fide claim is established, the unlawful oil or unlawful gas, vehicle, trailer or bond shall be forfeited to the state and the unlawful oil or unlawful gas, vehicle or trailer shall be sold under judgment of the court, as on sale upon execution.
K. The proceeds of the sale of any unlawful oil or unlawful gas, vehicle, trailer or bond shall be distributed as follows, in the order indicated:
1. All gross production and petroleum excise taxes due to the Oklahoma Tax Commission;
2. To the bona fide innocent purchaser, conditional sales vendor, or mortgagee of the unlawful gas or unlawful oil, vehicle or trailer, if any, up to the amount of the interest of the person in the unlawful gas or unlawful oil, vehicle or trailer, when the court declaring the forfeiture orders a distribution to such person;
3. To the payment of the actual expenses of preserving the property;
4. The remainder of such proceeds shall be remitted forthwith as follows:
5. The sheriff executing the sale shall issue a bill of sale or certificate to the purchaser of the oil or gas and the Tax Commission, upon the presentation of the certificate of clearance, shall issue a license, if a license is required, permitting the purchaser of the oil or gas to move the same into commerce.
L. If the court finds that oil or gas seized is not unlawful, the court shall order the oil or gas released to the owner and shall order any vehicle or trailer used to transport the oil and gas released to the owner as the right, title, or interest of the owner appears on the record of the Oklahoma Tax Commission as of the date of the seizure.
Added by Laws 1985, c. 187, § 8, eff. Nov. 1, 1985. Amended by Laws 2008, c. 364, § 5, eff. Jan. 1, 2009.