27-565

27-565. Application to purchase royalty
oil

A. An Arizona refinery business may apply to the department to purchase royalty oil
which the department elects to receive from a lessee. The application shall be filed not
more than fifteen weeks nor less than thirteen weeks before the date of sale of the
royalty oil by the department. The application shall be in the nature of a request and
an offer to purchase which becomes irrevocable after the department sends notice of the
election to the lessee as provided in section 27-566. The offer may be revoked by the
applicant at any time before the date of sale upon the written agreement of the lessee
and payment of all costs incurred by the department.

B. The application shall be in a form prescribed by the department containing the
following information:

1. The full name and address of the applicant, the location of the refinery and a
complete disclosure of the applicant's affiliation with any other petroleum refiner if
such relationship exists.

2. The capacity of the refinery to be supplied with refinery oil and the amount,
source and grade of all refinery oil currently available to the applicant by purchase.

3. The amount and grade of refinery oil which the applicant desires to purchase.

4. The field or fields which the applicant believes offer a potential source of
refinery charge stocks due to quality, the proximity to the refinery and available
transportation facilities which the applicant proposes to utilize.

C. The department shall examine each application. If the department finds that the
application is incomplete, the department shall so advise the applicant within one week
of the date that the application was filed with the department, and the applicant may
amend the application within ten days. If the department finds the application to be
complete, the department shall so advise the applicant within one week. If the
department fails to provide the notice prescribed by this subsection, the application is
deemed to be complete.

D. Upon approval of the application, the applicant shall file the bond or other
assurances required by the department pursuant to section 27-570.