CSSB 61(RES) Summary

• Authorizes the Department of Natural Resources commissioner to modify royalty or net profit share rates on oil and gas leases under specified economic conditions.

• Establishes four scenarios allowing modifications: enabling production from newly delineated fields, prolonging economic life as costs increase or prices decrease, reestablishing shut-in production, and maintaining viability without additional capital expenditures.

• Sets minimum royalty rate floors: 5 percent for new field development or fields requiring capital expenditures, and 3 percent for prolonging production or reestablishing shut-in wells; maintains 10 percent minimum net profit share.

• Requires lessees to submit financial and technical data demonstrating modifications meet statutory requirements and are in the state's best interest; allows confidential treatment of sensitive data disclosed to legislators and auditors.

• Establishes public notice and comment procedures including preliminary findings, 30-day public comment period, Legislative Budget and Audit Committee review option, and final commissioner determination that is not appealable to courts; caps independent contractor evaluation costs at $150,000 per application.