Senate Bill No. 2319 Summary

• Operators must notify all force pooled royalty owners of all associated drilling and completion costs before certifying a horizontal, horizontal reentry, or two-year inactive well for tax incentive eligibility under chapter 57-51.1.

• Operators must provide an affidavit to the oil and gas division confirming they have fulfilled the notification requirement before the well can qualify for tax reduction purposes.

• Extends the deadline for unleased mineral interests to receive cost-free royalty interest equal to the acreage weighted average of leased tracts from August 1, 2009 to December 31, 2014.

• Adds a new subsection requiring nonparticipating owners to receive a year-end accounting of costs and risk penalties paid on their behalf, with the paying owner required to provide this accounting by the end of January following the request.

• Provides for retroactive application of the bill's provisions.