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OH HB528
Bill
Status
5/1/2012
Primary Sponsor
Mark Okey
Click for details
AI Summary
HB 528 Summary
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Requires lessees of oil and gas leases to provide lessors with monthly production statements containing at least 15 specified items, including lease identification, royalty rates, production volumes, prices, deductions, and contact information.
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Monthly statements must detail the accounting method used to calculate royalty payments and, if applicable, the nature and amount of each expense deducted under a workback accounting method.
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Grants lessors the right to audit lessee records and requires lessees to provide copies of all relevant documents within 30 days of request, including records related to exploration, production, processing, sale, taxes, and post-production costs.
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Requires lessees to send written authorization documents to any third parties who purchased or received products from the well, instructing them to provide audit-related records to the lessor; authorization must not expire and must include a waiver of lessee's legal claims.
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Defines "product" as oil, gas, condensate, and liquid hydrocarbon.
Legislative Description
To require the lessee of an oil and gas lease to provide to the lessor monthly oil and gas production statements, to specify the minimum information that must be included in a monthly statement, and to establish procedures and requirements in accordance with which a lessor may conduct an audit of the lessee's records and documents related to production or post-production costs under the lease.
Oil and gas leases-lessee duties/lessor rights
Last Action
To Agriculture & Natural Resources
5/1/2012