55-1626. Definitions.

55-1626

Chapter 55.--OIL AND GAS
Article 16.--MISCELLANEOUS PROVISIONS

      55-1626.   Definitions.As used in this act:

      (a)   "Act" means the provisions ofK.S.A. 2009 Supp.55-1625 through 55-1635,and amendmentsthereto;

      (b)   "board" means the Kansas oil and gas resources board as created by thisact;

      (c)   "first purchaser" means:

      (1)   With regard to crude oil, the person to whom title first is transferredbeyond the gathering tank or tanks, beyond the facility from which the crudeoil was first produced, or both; and

      (2)   with regard to natural gas, the person to whom title first is transferredbeyond the inlet side of the measurement station from which the natural gas wasfirst produced;

      (d)   "independent producer" means a person who complies with both of thefollowing:

      (1)   Produces oil or natural gas and is not engaged in refining eitherproduct; and

      (2)   derives a majority of income from ownership in properties producing oilor natural gas;

      (e)   "interest owner" means a person who owns or possesses an oil or gasleasehold interest in the gross production of oil or natural gas produced froma well in Kansas. For the purposes of this act, an oil and gas leasehold estateinterest shall include the working interest and any overriding interest carvedout of the working interest in any oil andgas lease, but shall include neither any royaltyinterests nor any overriding royalty interest carved out of the workinginterest;

      (f)   "person" means an individual, group of individuals, partnership,corporation, association, limited liability company, cooperative or any otherentity or an employee of the entity; and

      (g)   "qualified producer association" means an entity that is organized undersection 501(c)(6) of the federal internal revenue code and in existence on theeffective date of this act, organized and operates within the state of Kansas,and in which a majority of the members of such association's governing bodyconsists of independent producers. In addition to any other entity whichconstitutes a qualified producer association as defined in this subsection, theKansas independent oil and gas association, the Kansas petroleum council andthe eastern Kansas oil and gas association shall be qualified producerassociations.

      History:   L. 2006, ch. 94, § 2;L. 2007, ch. 119, § 2; July 1.