55-1631. Assessments; amount, collection and payment; assessments voluntary and refundable to interest owner.
55-1631
55-1631. Assessments; amount, collection andpayment; assessments voluntary and refundable to interest owner.(a) To fund the activities of the Kansas oil and gas resourcesboard,and in the discretion of the board, a voluntary assessment not to exceed0.05% of the gross revenues from oil or natural gas produced from each well inthe state ofKansas shall be deducted from proceeds paid by the first purchaser to eachinterest owner.The Kansas oil and gas resources board, however, may permit or require anentity other than the first purchaser to deduct such proceeds where that entityis the operator or the entity distributes revenues to interest owners, directlyor indirectly.Any interest owner may seek a refund, as provided in this act.Thisassessment is a voluntary checkoff and shall be treated in all respectsaccordingly.The assessment shall not in any manner be deemed to be a tax orgovernmental assessment of any kind, and the state of Kansas shall have no dutyor responsibility with respect to any such assessment.
(b) The assessment imposed pursuant to subsection (a) shall be deducted fromthe proceeds of production and collected by the first purchaser. There shall bea conspicuous line item on each statement showingthe amount and pertinent time period of the assessment. Thestatement shall provide the Kansas oil and gas resources boardcontactinformation for obtaining more information or directions for obtaining a refundof the assessment. The assessments, which are imposed on the interest owner,shall be remitted to the Kansas oil and gas resources board by the firstpurchasernot later than the 60th day followingthe endof the month inwhich the assessment was collected. The moneys collected pursuant to K.S.A.2009 Supp. 55-1630,and amendments thereto, shall be deposited with a bank or savings and loanassociation and shall be used only in defraying costs of administration of thepetroleum education and marketing program and for carrying out the provisionsofK.S.A. 2009 Supp.55-1627, 55-1628, 55-1633 and 55-1634, and amendmentsthereto.
(c) The board shall be responsible for taking any appropriate legal actionnecessary to collect any assessment which is not paid or is not properly paidby the first purchaser.
History: L. 2006, ch. 94, § 7;L. 2007, ch. 119, § 3; July 1.