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Current as of May 05, 2022 | Updated by FindLaw Staff
(1) When payment is made to an owner of a royalty interest for the sale of oil or gas produced from that royalty interest pursuant to the requirements of Section 40-6-9, the following information shall be included on the payor's check stub or on an attachment to the form of payment:
(a) the lease, property, or well name, and any lease, property, or well identification number 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 standards prescribed 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's proportionate share of the deductions, as applicable; and
(k) an address at which additional information pertaining to the royalty owner's interest in production may be obtained and questions may be answered.
(2)(a) A royalty owner who fails to receive the information required by this section may notify the board by certified mail of the problem and request that the division conduct an investigation.
(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 the matter.
(c) The board may take any action it considers necessary to resolve the matter pursuant to the provisions of this chapter.
(3) A royalty owner damaged by a violation of this section may proceed as provided in Subsection 40-6-11(7).
Cite this article: FindLaw.com - Utah Code Title 40. Mines and Mining § 40-6-9.1. Payment information to royalty owners - last updated May 05, 2022 | https://codes.findlaw.com/ut/title-40-mines-and-mining/ut-code-sect-40-6-9-1/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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