01 March 2006

Governor signs bill encouraging information sharing on oil & gas production

With Kansas’ oil and gas industry experiencing a resurgence, Governor Kathleen Sebelius today signed into law a bill enabling gas and oil royalty owners to obtain more information about wells and well production.

Current law provides for royalty owners to only obtain a list of the amount and purpose of any deductions or adjustments to a payment. HB 2673 expands to include lease, property or well identification numbers, property or well name and the corresponding county, section, township and range location, field name or producing formation, total produced volume for each well, the amount and purpose of any other deductions or adjustments not made on the payment statement, whether any payments are from a split-stream sale, and whether any production for which payment is made has been sold to an affiliate of the payor.

This bill also provides a mechanism for resolving disputes that arise from a payor’s failure to provide requested information, and requires payors to annually notify royalty owners of the provisions of this statute.

HB 2673 will take effect after its publication in the statute book.

For the 2006 Legislative Session, Governor Sebelius has signed ten bills and vetoed none.