State Codes and Statutes

Statutes > Utah > Title-40 > Chapter-06 > 40-6-9-1

40-6-9.1. Payment information to royalty owners.
(1) When payment is made to an owner of a royalty interest for the sale of oil or gasproduced from that royalty interest pursuant to the requirements of Section 40-6-9, the followinginformation shall be included on the payor's check stub or on an attachment to the form ofpayment:
(a) the lease, property, or well name, and any lease, property, or well identificationnumber 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 standardsprescribed 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'sproportionate share of the deductions, as applicable; and
(k) an address at which additional information pertaining to the royalty owner's interest inproduction may be obtained and questions may be answered.
(2) (a) A royalty owner who fails to receive the information required by this section maynotify the board by certified mail of the problem and request that the division conduct aninvestigation.
(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 thematter.
(c) The board may take any action it considers necessary to resolve the matter pursuant tothe provisions of this chapter.
(3) A royalty owner damaged by a violation of this section may proceed as provided inSubsection 40-6-11(7).

Enacted by Chapter 132, 1995 General Session