Relating to the information required to be provided by a payor of proceeds from the sale of oil or gas from an oil or gas well to a payee on the request by the payee.
Impact
If enacted, this bill would directly influence the relationship and information exchange between payors and payees in the oil and gas industry. It aims to establish a clear protocol and timeline for the provision of critical information regarding production interests, which could improve the negotiation positions of payees and enhance overall trust in transactions related to oil and gas exploitation. By requiring formula disclosure and documentation, the bill seeks to ensure payees are adequately informed of their interests and rights.
Summary
House Bill 3068 focuses on enhancing transparency regarding the information provided by payors of proceeds from oil and gas sales to payees. The bill stipulates that a payee may request specific details on how their fractional or decimal interest in production is calculated. This includes the formula used, the required information for the calculation, or the individual interests of each payee involved. The payor is mandated to comply with such requests within 21 days of receipt, ensuring timely communication of pertinent financial details to all parties involved.
Contention
While the bill may streamline certain processes and promote transparency, there may be implications for operational practices among payors, who will need to adjust their current systems to accommodate these requests. Industry stakeholders may debate the potential administrative burdens imposed on payors, with concerns that it may complicate operations or lead to increased costs. As the bill progresses, discussions will likely revolve around its effectiveness in balancing the rights of payees with the operational realities of payors.
Identical
Relating to the information required to be provided by a payor of proceeds from the sale of oil or gas from an oil or gas well to a payee on the request by the payee.
Relating to the reduction and plugging of orphaned oil and gas wells; providing for the imposition of a fee and an exemption from certain taxes and fees.
Relating to the reduction and plugging of orphaned oil and gas wells; providing for the imposition of a fee and an exemption from certain taxes and fees.
Relating to an exemption from the severance tax for gas produced from certain wells that is consumed near the well and would otherwise have been lawfully vented or flared.