The bill amends existing laws concerning oil and gas production and conservation, specifically focusing on the information that operators must provide to royalty owners regarding deductions from their payments. It specifies that operators must itemize each deduction and the associated amount, detailing the nature, purpose, and amount of each deduction from the payment to the royalty owner. This change aims to enhance transparency and ensure that royalty owners have a clear understanding of the deductions being made.

Additionally, the bill revises the sanctions for noncompliance related to information requests from royalty owners. It increases the maximum civil penalty for noncompliance from five hundred dollars to the maximum penalty amount allowed for a delinquency as described in another section of the law. The Oil and Gas Commission is also granted the authority to suspend the imposition of any sanctions for up to sixty days, allowing noncompliant parties the opportunity to demonstrate compliance with commission orders.

Statutes affected:
HB 1900: 15-72-305(a)