Payment information to royalty owners.

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  • (1) When payment is made to an owner of a royalty interest for the sale of oil or gas produced from that royalty interest pursuant to the requirements of Section 40-6-9, the following information shall be included on the payor's check stub or on an attachment to the form of payment:
    • (a) the lease, property, or well name, and any lease, property, or well identification number from which production is attributed;
    • (b) the month and year of the sales included in the payment;
    • (c) the total volume of oil or gas sold, as measured by the means and upon the standards prescribed by the board pursuant to Subsection 40-6-5(2)(g);
    • (d) the average price per unit of oil or gas sold;
    • (e) the total amount of state severance, ad valorem, and other production taxes;
    • (f) a list of any other deductions or adjustments;
    • (g) the net value of total sales after taxes are deducted;
    • (h) the royalty owner's interest, expressed as a decimal number, in sales from the lease, property, or well;
    • (i) the royalty owner's share of the total value of sales prior to any deductions;
    • (j) the royalty owner's proportionate share of the sales value less the royalty owner's proportionate share of the deductions, as applicable; and
    • (k) an address at which additional information pertaining to the royalty owner's interest in production may be obtained and questions may be answered.
  • (2)
    • (a) A royalty owner who fails to receive the information required by this section may notify the board by certified mail of the problem and request that the division conduct an investigation.
    • (b) The division shall conduct the investigation and report to the board concerning:
      • (i) whether the matter has been resolved; or
      • (ii) whether further action is necessary and its recommendations for resolution of the matter.
    • (c) The board may take any action it considers necessary to resolve the matter pursuant to the provisions of this chapter.
  • (3) A royalty owner damaged by a violation of this section may proceed as provided in Subsection 40-6-11(7).




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