By: Sims S.B. No. 973
73R4367 MI-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to royalty reporting standards for gas wells.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 91.501, Natural Resources Code, is
1-5 amended to read as follows:
1-6 Sec. 91.501. Information Required. (a) If payment is made
1-7 to a royalty interest owner from the proceeds derived from the sale
1-8 of oil or gas production pursuant to a division order, lease,
1-9 servitude, or other agreement, the person making the payment shall
1-10 include the information required by Section 91.502 of this code on
1-11 the check stub or on an attachment to the payment form.
1-12 (b) A person making payment to a royalty interest owner from
1-13 the proceeds of the sale of gas production shall include for each
1-14 gas well from which production was sold the information required by
1-15 Section 91.502 of this code. The person making payment shall
1-16 specifically identify each deduction or adjustment reported under
1-17 Section 91.502(8) of this code.
1-18 SECTION 2. Section 91.502, Natural Resources Code, is
1-19 amended to read as follows:
1-20 Sec. 91.502. Types of Information Provided. Each check stub
1-21 or attachment to a payment form must include:
1-22 (1) the commission gas well identification number or
1-23 the commission oil lease <lease, property, or well name or any
1-24 lease, property, or well> identification number used to identify
2-1 the lease, property, or well;
2-2 (2) the month and year during which the sales occurred
2-3 for which payment is being made;
2-4 (3) the total number of barrels of oil sold or the
2-5 total amount of gas sold from each gas well;
2-6 (4) the price per barrel <or per MCF> of oil <or gas>
2-7 sold;
2-8 (5) the price per MCF or MMBTU of gas sold, with the
2-9 pricing method identified;
2-10 (6) the total amount of state severance and other
2-11 production taxes paid;
2-12 (7) <(6)> the windfall profit tax paid on the owner's
2-13 interest;
2-14 (8) <(7)> any other deductions or adjustments;
2-15 (9) <(8)> the net value of total sales after
2-16 deductions;
2-17 (10) <(9)> the owner's interest in sales from the
2-18 lease, property, or well expressed as a decimal;
2-19 (11) <(10)> the owner's share of the total value of
2-20 sales before any tax deductions;
2-21 (12) <(11)> the owner's share of the sales value less
2-22 deductions; and
2-23 (13) <(12)> an address at which additional information
2-24 may be obtained and questions may be answered.
2-25 SECTION 3. The changes made by this Act to Sections 91.501
2-26 and 91.502, Natural Resources Code, apply only for a payment made
2-27 to a royalty interest owner on or after the effective date of this
3-1 Act. A payment made before that date is governed by the law as it
3-2 existed when the payment was made, and the former law is continued
3-3 in effect for that purpose.
3-4 SECTION 4. This Act takes effect September 1, 1993.
3-5 SECTION 5. The importance of this legislation and the
3-6 crowded condition of the calendars in both houses create an
3-7 emergency and an imperative public necessity that the
3-8 constitutional rule requiring bills to be read on three several
3-9 days in each house be suspended, and this rule is hereby suspended.