Bill Text: OH HB400 | 2013-2014 | 130th General Assembly | Introduced

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Bill Title: To require the owner of an oil or gas well to provide a royalty statement to the holder of the royalty interest when the owner makes payment to the holder.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2014-01-09 - To Agriculture and Natural Resources [HB400 Detail]

Download: Ohio-2013-HB400-Introduced.html

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As Introduced

130th General Assembly Regular Session 2013-2014

H. B. No. 400

Representatives Carney, Cera 

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A BILL

To amend section 1509.30 of the Revised Code to

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require the owner of an oil or gas well to provide

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a royalty statement to the holder of the royalty

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interest when the owner makes payment to the

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holder.

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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That section 1509.30 of the Revised Code be	6
amended to read as follows:	7

Sec. 1509.30. The holder of a royalty interest in any	8
natural gas well may request the owner to report to him, no more	9
frequently than the payment period in his contract with the owner:	10

(A) When, pursuant to a lease, another agreement between an	11
owner and the holder of a royalty interest in an oil or gas well,	12
or an order by the division of oil and gas resources management,	13
payment is made to the holder of the royalty interest from the	14
proceeds derived from the sale of oil or gas, the owner shall	15
include all of the following information on the check stub, an	16
attachment to the payment form, or another remittance device:	17

(1) The lease, property, or well name, any lease, property,	18
or well identification number used to identify the lease,	19
property, or well, and the county and state in which the lease,	20
property, or well is located;	21

(2) The month and year during which the sales occurred for	22
which payment is being made;	23

(3) The volume of natural gas or number of barrels of oil for	24
which he was orthe holder is being paid for the most recent	25
period in his contract with the owner, and for any other previous	26
periods within two years of the date of production for which the	27
owner has not already given him such a report;	28

(B)(4) The price per thousand cubic feet or per barrel of oil	29
paid to the holder for such gas or oil;	30

(C)(5) The volume of natural gas whichthat was shown to have	31
passed through the owner's meter for or the number of barrels of	32
oil that were removed from the field containing the holder's well	33
during the applicable payment period;	34

(6) The total amount of state severance and any other	35
production taxes paid on the holder's interest during the	36
applicable payment period;	37

(7) Any windfall profit tax paid on the holder's interest	38
during the applicable payment period;	39

(8) Any other deductions from or adjustments on the holder's	40
interest during the applicable payment period;	41

(9) The net value of total sales of oil and natural gas	42
produced from the lease, property, or well after deductions during	43
the applicable payment period;	44

(10) The holder's royalty interest in sales from the lease,	45
property, or well during the applicable payment period expressed	46
as a decimal;	47

(11) The holder's share of the total value of sales from the	48
lease, property, or well before any tax deductions during the	49
applicable payment period;	50

(12) The holder's share of the value of sales from the lease,	51
property, or well less the holder's share of taxes and deductions	52
during the applicable payment period;	53

(13) An address and telephone number at which additional	54
information regarding the payment may be obtained and questions	55
may be answered.	56

(B) The volume of gas required to be reported by this section	57
shall be indicated on the basis of a standard cubic foot of gas.	58
The volume of oil required to be reported by this section shall be	59
indicated on the basis of a standard barrel.	60

(C) The owner shall preserve records of such volumethe	61
information required to be provided under division (A) of this	62
section for at least two years after the date on which the record	63
information is madeprovided.	64

(D) If the owner does not provide the holder of the royalty	65
interest with information required to be provided under division	66
(A) of this section, the holder may submit a written request by	67
certified mail to the owner that the information be provided. Upon	68
receipt by the owner or histhe owner's agent of a request by the	69
holder pursuant to this sectiondivision, the owner shall supply	70
the information to the holder by certified mail within fifteen	71
thirty days, or the end of the current payment period in the	72
contract, whichever is later.	73

If the holder's well is metered, the owner shall in such	74
report also inform the holder of the volume of natural gas which	75
was shown to have passed through such meter during the period.	76

The volume of gas required to be reported by this section	77
shall be indicated on the basis of a standard cubic foot of gas	78
holder makes a written request and the owner does not provide the	79
requested information within the applicable time period, the	80
holder may bring a civil action against the owner to enforce this	81
section. The prevailing party is entitled to recover reasonable	82
court costs and attorney's fees.	83

(E) As used in this section, "applicable payment period"	84
means the period specified by an owner under division (A)(2) of	85
this section.	86

Section 2. That existing section 1509.30 of the Revised Code	87
is hereby repealed.	88