1. For purposes of determining the respective rights of the lessor and lessee and the owners of a royalty interest, overriding royalty interest and any other nonworking interest in the money earned from an oil and gas lease or other agreement concerning the sale of the production from an oil or gas well located in this state: (a) The lessee is liable for all of the costs of production, which must be deducted from the working interest. (b) The lessors interest, the mineral owners royalty interest and the overriding royalty interest must not be decreased by the costs of production. (c) The following information must be reported with each remittance, unless otherwise reported each month, to the owner of an interest: (1) The name or number used to identify the lease, property or well; (2) The month and year during which any sale occurred for which payment is being made; (3) The total number of barrels of oil or thousands of cubic feet of gas sold; (4) The price per barrel of oil or the price per thousand cubic feet of gas; (5) The total amount of state taxes on the net proceeds of minerals, taxes ad valorem and other taxes on the production from an oil or gas well, if the payment of those taxes reduces the amount paid to the owner of an interest; (6) An itemized list of any other deductions or adjustments that reduce the amount paid to the owner of an interest; (7) The net value of total sales after deductions or adjustments that reduce the amount paid to the owner of an interest; (8) The percentage share of the owner of an interest in the sales of the production from the oil or gas well, lease or property as expressed by a decimal number; (9) The share of the total value attributed to the owner of an interest in the sales of the production from the oil or gas well, lease or property before any deductions or adjustments and after any deductions or adjustments; and (10) A name and an address where the owner of an interest may receive clarification of the information reported pursuant to this paragraph and additional information concerning the owners interest. If information is requested by certified mail, an answer must be mailed by certified mail within 30 days after receipt of the request. 2. Any person who fails to report information pursuant to paragraph (c) of subsection 1 is liable to the affected owner of an interest, except for the working interest, in the amount of $100 for each violation and $100 for each month that elapses thereafter until the information is provided. 3. As used in this section, the term costs of production means all costs incurred for the exploration and development of, primary or enhanced recovery of oil or gas from, and operations associated with the abandonment of, an oil or gas well, including costs associated with the: (a) Acquisition of an oil and gas lease; (b) Drilling and completion of the well; (c) Pumping or lifting, recycling, gathering, compressing, pressurizing, heater treating, dehydrating, separating and storing of oil or gas; and (d) Transporting of oil to storage tanks, or gas into the pipeline for delivery. The term does not include the reasonable and actual direct costs associated with transporting oil from storage tanks to the market, gas from the point of entry into the pipeline to the market or the processing of gas in a processing plant.
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