As Introduced

130th General Assembly
Regular Session
2013-2014
H. B. No. 400


Representatives Carney, Cera 


A BILL
To amend section 1509.30 of the Revised Code to 1
require the owner of an oil or gas well to provide 2
a royalty statement to the holder of the royalty 3
interest when the owner makes payment to the 4
holder.5


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 oil29
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 record63
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 fifteen71
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 gas78
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