Arizona Laws 27-564. Receipt and sale of royalty oil
A. The department on its initiative and with the approval of the selection board may elect to receive royalty oil in kind from a lessee in lieu of a cash royalty, and the department may resell such royalty oil in the manner provided by the selection board.
Terms Used In Arizona Laws 27-564
- Arizona refinery business: means a firm which markets in this state the product refined from royalty oil purchased under this article and which either owns and controls an oil refinery located within this state or is an Arizona corporation which owns an oil refinery in the United States located within one hundred miles of this state. See Arizona Laws 27-551
- 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
B. An Arizona refinery business may request the department to elect to receive a quantity certain of royalty oil to be resold during a period of not less than one hundred eighty days by the department at a time contemporaneous with receipt of the royalty oil by the department. The department, on receipt of a due, proper and complete application by an Arizona refinery business, may, without approval of the selection board, elect to receive and sell such royalty oil pursuant to section 27-567.