The State of Texas has enacted HB 981, which modifies the information required on a check stub for payments on Texas production. Effective September 1, 2002, each payor
will be required to include on it's check stub or remittance advice, in addition to all previously required information, a county and state in which the lease, property, or
well is located and a telephone number at which additional information regarding the payment may be obtained and questions may be answered.
Other information still required on the check stub includes the lease, property, or well name, the production month, the number of barrels or quantity of gas sold, the
price per barrel or MCF, the amount of state severance or other production tax paid, any other deductions or adjustments, the net value of total sales after deductions,
the owner's interest expressed as a decimal, the owner's share of the total value of sales before any tax deductions, and the owner's share of the sales value less
The payor must also provide, at a minimum, a description of the property from which oil or gas is being produced and the type of production for which payment is being
reported if this information has not been previously furnished in a division order. Provisions regarding information about payment deductions and adjustments, heating
value, lease identification, and other information that an owner requests are set for in the bill.
A royalty owner who received payment from a payor during the preceding calendar year may request in writing by certified mail that the payor provide a report listing the
following information for the preceding year:
- Each lease, property, or well identification number
- Each lease, property, or well name
- The field name
- The county and state in which the property is located; and
- The commission lease identification number or commingling permit number or any other identification
number under which the production for the lease, property, or well is being reported to the state.
A payor is required to respond to a written request by certified mail for information within 60 days. An owner is authorized to bring a civil action against the payor if the
requested information is not received within 60 days.
For a complete copy of HB 981, see pages 14 and 15. Or click the link at the left in the electronic version.