772             1997 Session Laws of Kansas             Ch. 136

Chapter 136

Ch. 136             1997 Session Laws of Kansas             773

SENATE BILL No. 147*


An Act relating to oil and gas; prescribing information to be included with payments
to interest owners from sales of oil and gas.

Be it enacted by the Legislature of the State of Kansas:

Section 1. When a payment is made for proceeds attributable to oil

Ch. 136             1997 Session Laws of Kansas             773

or gas production, the payment shall be accompanied by the following
information, or the following information shall be calculable from the
information provided with the payment:

(a) The lease, property, or well name or any lease, property, or well
identification number used to identify the lease, or well;

(b) the month and year during which the sale occurred for which
payment is being made;

(c) the total volume of oil, attributable to such payment, measured in
barrels and the total volume of either wet or dry gas, attributable to such
payment, measured in thousand cubic feet;

(d) the price per barrel of oil or thousand cubic feet of gas sold;

(e) total amount of state severance and production taxes;

(f) payee's interest in the sale expressed as a decimal;

(g) payee's share of the sale before any deductions or adjustments;

(h) payee's share of the sale after deductions or adjustments;

(i) an address and telephone number from which additional infor-
mation may be obtained and any questions answered.

Sec. 2. Nothing contained in this act shall be construed to amend or
otherwise affect any contractual obligations or rights which may otherwise
exist.

Sec. 3. Upon written request by the payee, submitted to the payor
by certified mail, the payor shall provide to the payee in writing a specific
listing of the amount and purpose of any other deductions or adjustments,
including volumetric deductions, with explanation of such treatment. A
written response shall be provided within 60 days of the receipt of such
certified mail request.

Sec. 4. This act shall take effect and be in force from and after Jan-
uary 1, 1998, and its publication in the statute book.

Approved April 24, 1997.