Bill > SB360

This bill aims to clarify the royalties owed to owners of oil and gas in place under leases or other contracts that provide for a "flat well royalty" - a fixed payment based solely on the existence of a producing well, rather than the actual volume of oil and gas extracted. The bill prohibits the issuance of permits for the development of oil and gas under such flat well royalty leases, unless the lessee agrees to pay the owner of the oil and gas in place at least one-eighth of the gross proceeds from the sale of the extracted resources, without deducting post-production expenses. The bill also provides the owner of the oil and gas in place with a cause of action to enforce their rights under this law.