55-1622a. Annual notice to royalty interest owners, required contents.
55-1622a
55-1622a. Annual notice to royalty interest owners,required contents.Not later than December 31, 2006, and at least once every 12monthsthereafter, the payor shall provide the following statement to each royaltyinterest owner to whom the payor makes a payment:
"Section 55-1622 of the Kansas Statutes Annotated gives an owner of a royaltyinterest in oil or gas produced in Kansas the right to specifically request anyof thefollowing information from a payor about the owner's royalty payment and thewells forwhich payment is made:
(1) Each lease, property or well identification number used by the payor forroyalty payment purposes and corresponding lease, property or wellidentificationnumber(s) used for identification by the Kansas department of revenue, statecorporation commission or American petroleum institute (API).
(2) Each lease, property or well name and its corresponding section,township,range and county.
(3) The field name or producing formation.
(4) For a given sales period for which payment has been received or is duetheroyalty owner, the total produced volume as reported for each well, lease orunit to thestate corporation commission and Kansas department of revenue.
(5) A specific listing of the amount and purpose of any other deductions oradjustments from the royalty owner's share of the sale of oil and gas notidentified on thepayment statement.
(6) Whether any payments reported on the payor's statement are from asplit-stream sale and, if so, the manner in which the payor accounts to theroyaltyowner forsuch sale. As used in this paragraph, "split-stream sale" means a sale forwhich thepayment from a payor to the royalty owner is for the sale of less than all ofthe oil andgas produced and sold from the lease or well for the sales period.
(7) Whether the sale of any of the production for which payment is made bypayor has been made to an affiliate of the payor. As used in this paragraph,"affiliate"means any entity which, directly or indirectly, controls or is controlled by,or is undercommon control with, the payor.
The request by the royalty owner must be made in writing, specifying theinformation desired and the sales period or periods for which information isneeded, andmust be made by certified mail. The payor must respond to such a request bycertifiedmail not later than the 60th day after the date the request is received. Apayor shall not berequired to (1) provide any information pursuant to a request made on behalf ofmultiple royaltyowners, (2)provide any information for sales periods which were prior to the 12-monthperiodimmediately preceding the first day of the month in which the request isreceived, exceptthat, if adjustments to a royalty owner's payment have been made within such12-monthperiod for sales periods prior to such 12-month period, information concerningsuchadjustments shall be provided and (3) seek information from other payors orthird parties.
If a payor does not have any of the information requested by a royalty owner inaccordance with this law, the payor shall provide to the royalty owner the nameandaddress of the seller of the production for which the royalty owner is beingpaid by payor.A royalty owner may thereafter request from the seller the information notprovided bythe payor and the seller shall respond to the royalty owner, all in the samemanner asprovided for in this law. As used in this paragraph, "seller" means the lesseeof the oiland gas lease from which a royalty owner derives its royalty interest or theoperator ofthe oil and gas production unit which produced the oil and gas for whichpayment isbeing made.
This law is not meant to discourage or prohibit the royalty owner fromcontactingthe payor by telephone, e-mail or other means of communication concerning theaboveinformation or any other information about the owner's royalty payment.Additionalinformation regarding production and related information may also be obtainedbycontacting the state corporation commission or Kansas geological survey, or byaccessing their websites."
History: L. 2006, ch. 10, § 2; July 1.