Royalties payable to this state under section 27-555, subsection B are payable in kind or in cash at the option and demand of the department. The lessee shall pay royalties in cash unless the department elects to receive royalty oil in kind pursuant to this article. The commissioner shall base this determination on what is in the best interest of the trust.

Terms Used In Arizona Laws 27-563

  • Department: means the state land department. See Arizona Laws 27-551
  • Lessee: means the holder of an oil and gas lease issued pursuant to this article and includes any assignee of an original lessee. See Arizona Laws 27-551
  • Royalty oil: means crude oil, liquid petroleum products or gas condensates from wells or lease plants or a mixture of such products. See Arizona Laws 27-551
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