27-563. Payment of noncompetitive lease
royalties in kind or cash


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.