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:
Terms Used In Utah Code 40-6-9.1
Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
Board: means the Board of Oil, Gas, and Mining. See Utah Code 40-6-2
Division: means the Division of Oil, Gas, and Mining. See Utah Code 40-6-2
Gas: means natural gas, as defined in Subsection (10), natural gas liquids, as defined in Subsection (11), other gas, as defined in Subsection (17), or any mixture of them. See Utah Code 40-6-2
Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
Month: means a calendar month, unless otherwise expressed. See Utah Code 68-3-12.5
Oil: includes tar sands produced at the wellhead in liquid form through enhanced recovery operations authorized by the board in accordance with Subsection 40-6-5(3)(c). See Utah Code 40-6-2
Owner: means a person who has the right:
(a)
to drill into and produce from a reservoir; and
(b)
to appropriate the oil and gas produced for that person or for that person and others. See Utah Code 40-6-2
Payor: means the person who undertakes to distribute oil and gas proceeds to the persons entitled to them, whether as the first purchaser of that production, as operator of the well from which the production was obtained, or as lessee under the lease on which royalty is due. See Utah Code 40-6-2
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
(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).
