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ENGROSSED HOUSE
BILL NO. 2230 By: Moore of the House
and
Taylor of the Senate
An Act relating to oil and gas; amending 52 O.S.
2011, Sections 570.1 and 570.11, which relate to the
Production Revenue Standard s Act; updating statutory
references; renaming the Production Revenue Standard s
Act; providing for transfer orders and substitute
division orders; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 52 O .S. 2011, Section 570.1, is
amended to read as follows:
Section 570.1 Sections 1 570.1 through 15 570.15 of this act
title shall be known and may be cited as the "Production Revenue
Standards and Royalty Standardization Act".
SECTION 2. AMENDATORY 52 O.S. 2011, Section 570.11, is
amended to read as follows:
Section 570.11 A division order or transfer order is an
instrument prepared by the operator, the first purchaser of the
production or holder of proceeds for the purpose of dir ecting the
distribution of proceeds from the sale of oil, gas, casinghead gas
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or other related hydrocarbons which warrants in writing the division
of interest and the name, address and tax identification number of
each interest owner with a provision requi ring notice of change of
ownership. Any owner legally entitled to receive a distribution of
production proceeds may prepare and submit to the operator, the
first purchaser of the production or holder of proceeds a substitute
division order or transfer ord er which warrants in writing the
division of interest and the name, address and tax identification
number of each interest owner with a provision requiring notice of
change of ownership. A division order or transfer order is executed
to enable the first p urchaser of the production or holder of
proceeds to make remittance of proceeds directly to the owners
legally entitled thereto and does not relieve the lessee of any
liabilities or obligations under the oil and gas lease. Terms of a
division order or transfer order which conflict with the terms of
any oil and gas lease are invalid, unless previously agreed to by
the affected parties. This subsection section shall only apply to
division orders or transfer orders executed on or after July 1,
1989.
SECTION 3. This act shall become effective November 1, 2021.
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Passed the House of Representatives the 2nd day of March, 2021.
Presiding Officer of the House
of Representatives
Passed the Senate the ___ day of __________, 2021.
Presiding Officer of th e Senate