Section 35.3 - Payment information to royalty owners for oil, natural gas and natural gas liquids from an unconventional formation.(a) Payment information.--Whenever payment is made to a royalty owner for the production of oil, gas or natural gas liquids from an unconventional formation, pursuant to an oil and gas lease, all of the following information, at a minimum, shall be included on the check stub provided to the royalty owner or on an attachment to the form of payment provided to the royalty owner, unless the information is otherwise provided on a regular basis:(1) A common well name and the American Petroleum Institute identification number that identifies the well for which payment is being made.(2) Month and year of oil, gas or natural gas liquids production for which payment is being made.(3) Total barrels of crude oil or number of Mcf or MMBtu of gas and volume of natural gas liquids produced and sold from each well.(4) Price received by the payor per unit of oil, natural gas and natural gas liquids produced and sold.(5) The aggregate amounts for each category of deductions for each well incurred by the payor which reduces the royalty owner's payment, including all severance and other production taxes.(6) Net and gross value of the payor's total sales from the sale of oil, gas and natural gas liquids from each well less any deductions identified in paragraph (5).(7) Royalty owner's legal and contractual interest in the payor's share, expressed as a decimal or fraction.(8) Royalty owner's share of the gross value of the payor's total sales for the oil, gas and natural gas liquids before any deductions identified in paragraph (5).(9) Royalty owner's share of the sales value less the royalty owner's share of taxes and any deductions identified in paragraph (5).(10) Payor's contact information, including an address and telephone number.(b)Summary statements.--A payor may make available and provide for a summary statement format for a royalty owner to receive the information under subsection (a) upon the mutual consent of the royalty owner and payor. The summary statement shall conspicuously disclose that the royalty owner has the right to receive the information under subsection (a) in its entirety upon written request, sent by certified mail, to the payor. Upon receipt of a written request under this subsection, the payor shall provide all the information under subsection (a) in its entirety from the month of the notice and each subsequent month thereafter and for any prior period requested by the royalty owner. Nothing in this subsection shall be construed as a waiver of the ability of a royalty owner to receive the information under subsection (a).(c) Noncompliance.-- If a payor does not provide the payment information to a royalty owner as required under this section, the royalty owner may send a written request for the information to the payor by certified mail. The royalty owner shall identify the lease information under subsection (a)(1) in the written request. If the payor does not provide payment information or does not supply a reason for not providing the payment information within 60 days after receiving the written request, the royalty owner may bring a civil action to enforce the provisions of this section and to recover any resulting attorney fees or court costs incurred in the civil action.(d) Transmission of information.--If a royalty owner has already been receiving the payment information required under this act electronically before the effective date of this subsection or upon the mutual written consent of the information payor and the royalty owner, all information required to be included under subsection (a) may be provided or made available to the royalty owner by electronic means, including, but not limited to, electronic mail or a website or database accessible to the royalty owner.(e)Remittance of proceeds.-- (1) Except as provided under subsection (f) or as otherwise provided in the lease, all proceeds due and payable to the royalty owner under the terms of the lease from the sale or production of oil, gas and natural gas liquids shall be remitted in a timely manner as follows: (i) no later than 120 days from the date of the first sale of oil, gas or natural gas liquids; and(ii) thereafter, within 60 days after the end of the month when the production is sold.(2) A payor shall not be required to comply with paragraph (1) if any of the following apply: (i) There is a lack of marketable record title in the royalty owner.(ii) There is bona fide dispute concerning the royalty owner's interest.(iii) The owner of interest is missing or not able to be located.(3) Failure to remit a timely payment of the proceeds as required under paragraph (1) shall result in a mandatory payment of an interest penalty to be set at the legal rate of interest in accordance with section 202 of the act of January 30, 1974 ( P.L. 13, No.6), referred to as the Loan Interest and Protection Law, until the payment of production proceeds due and payable to the royalty owner under the terms of the lease is made, unless otherwise provided for in the lease.(f) Accumulation of proceeds.--Proceeds from the production of oil, gas and natural gas liquids may be accumulated and remitted annually for a 12-month accumulation of proceeds totaling less than $100, unless production permanently ceases or a relinquishment or transfer of the payment responsibility occurs.Amended by P.L. TBD 2022 No. 153, § 2, eff. 3/3/2023.Added by P.L. 473 2013 No. 66, § 4, eff. 9/7/2013.