No. 43613 (Amendment): Section R850-5-300. Royalties

(Amendment)

DAR File No.: 43613
Filed: 04/01/2019 12:58:42 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule was promulgated many years ago and is being updated to be more clear and reduce unneeded text.

Summary of the rule or change:

These changes clarify and consolidate this rule to remove redundant or unnecessary language.

Statutory or constitutional authorization for this rule:

• Subsection 53C-1-302(1)(a)(ii)

Anticipated cost or savings to:

the state budget:

These proposed rule changes are not anticipated to have any additional costs or savings as it is removing unnecessary and outdated language so it is more clear and concise.

local governments:

These proposed rule changes are not anticipated to have any additional costs or savings as it is removing unnecessary and outdated language so it is more clear and concise.

small businesses:

These proposed rule changes are not anticipated to have any additional costs or savings as it is removing unnecessary and outdated language so it is more clear and concise.

persons other than small businesses, businesses, or local governmental entities:

These proposed rule changes are not anticipated to have any additional costs or savings as it is removing unnecessary and outdated language so it is more clear and concise.

Compliance costs for affected persons:

No anticipated compliance costs for affected persons.

Comments by the department head on the fiscal impact the rule may have on businesses:

These proposed rule changes are not anticipated to have any additional costs or savings as it is removing unnecessary and outdated language so it is more clear and concise.

David Ure, Director

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

School and Institutional Trust Lands
AdministrationRoom 500
675 E 500 S
SALT LAKE CITY, UT 84102-2818

Direct questions regarding this rule to:

• Lisa Wells at the above address, by phone at 801-538-5154, by FAX at , or by Internet E-mail at [e-mail]
• Merritt Dunn at the above address, by phone at 801-538-5130, by FAX at , or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

05/15/2019

This rule may become effective on:

06/01/2019

Authorized by:

David Ure, Director

RULE TEXT

Subsection 53C-1-201(3)(c) exempts the School and Institutional Trust Lands Administration from the requirement to conduct a thorough analysis, consistent with the criteria established by the Governor's Office of Management and Budget, of the fiscal impact a rule may have on businesses, as required in Subsection 63G-3-301(5).

 

 

R850. School and Institutional Trust Lands, Administration.

R850-5. Payments, Royalties, Audits, and Reinstatements.

R850-5-300. Royalties.

1. Royalty Reports and Reporting Periods

(a) All royalty payments shall be made payable to the School and Institutional Trust Lands Administration and shall be accompanied by a royalty report on a form specified by the agency. Failure to provide such a report may, after proper notification, subject the lease to cancellation. Check stubs or other report forms are unacceptable and do not satisfy the reporting requirement of this section.

(b) Any report not sufficiently complete and accurate to enable the agency to deposit the royalty to the correct institutional fund must be promptly corrected or amended by the payor. Failure to provide such a report may, after proper notification, subject the lease to cancellation.

(c) Any report submitted which includes entries as described below, may not be accepted by the agency and may be returned[and may be made subject to the penalty provisions of this rule].

i) Any report submitted[including adjustments to reporting periods more than] 24 months [prior to the current report period]after the royalty due date.

ii) Amendments to prior report periods creating a net adjustment of less than $10.

iii) Any oil and gas royalty report line of original entry submitted after the first 180 days following the month of first production with a volume entry of zero which is subsequently amended with the actual volume.

2. Interest on Delinquent Royalties

Interest shall be based on the prime rate of interest at the beginning of each month as approved by the Director and documented in the agency's Director's Actions, plus 4%.[However, interest will not be assessed for prior period adjustments or amendments except as provided in R850-5-300(1)(c) and for amounts of additional royalties due discovered during any audit action. Also, interest will not be accrued or billed for amounts less than $30.]

 

KEY: [administrative procedures]audits, royalties, payments, reinstatements

Date of Enactment or Last Substantive Amendment: [October 22, 2013]2019

Notice of Continuation: June 27, 2017

Authorizing, and Implemented or Interpreted Law: 53C-1-302(1)(a)(ii)

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