In this month's edition:

Cover

Home

Page 1

Texas Changes Payment Requirements

Page 2

President's Letter

Page 3

Behind the Scenes Planning for 2002
Donna Reeves


Page 4

State Bar of Texas-
Opportunity for
Associate Membership

Page 5

Icebreaker and NAPE 2002
S. Sullivan and M. Cousins


Page 6

Counterpart Connection

Page 9

Certification News

Page 10

State of Texas HB 981
An Act
Relating to Oil and Gas
Royalty Reporting Standards

Page 12

MMS Royalty Reduction Program

Page 13

NADOA 2002 Institute

Page 14

Test Your Title Knowledge

Page 17

Calendar of Events

Page 19

Board of Directors and
Committee Chairmen

© 2002, All Rights Reserved



STATE OF TEXAS CHANGES PAYMENT REQUIREMENTS


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 deductions.

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.