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.


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.