Indiana Code Title 14. Natural and Cultural Resources § 14-38-1-26

Sec. 26. (a) This section applies when a royalty is required to be paid under this chapter:

(b) The lessee shall account to the commission for the market value of the oil or gas at the well for all that is sold by the lessee or used by the lessee in the manufacture of gasoline or other products.  At the election of the commission, instead of delivering the royalty, when oil in kind, the lessee shall purchase the oil at the oil's market value at the well when produced.