DAR File No. 43613
This rule was published in the April 15, 2019, issue (Vol. 2019, No. 8) of the Utah State Bulletin.
School and Institutional Trust Lands, Administration
Section R850-5-300
Royalties
Notice of Proposed Rule
(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proposed rule changes are not anticipated to have any additional costs or savings as it is removing unnecessary and outdated language so it is more clear and concise.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proposed rule changes are not anticipated to have any additional costs or savings as it is removing unnecessary and outdated language so it is more clear and concise.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proposed rule changes are not anticipated to have any additional costs or savings as it is removing unnecessary and outdated language so it is more clear and concise.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proposed rule changes are not anticipated to have any additional costs or savings as it is removing unnecessary and outdated language so it is more clear and concise.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proposed rule changes are not anticipated to have any additional costs or savings as it is removing unnecessary and outdated language so it is more clear and concise.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 LandsAdministrationRoom 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 [email protected]
- Merritt Dunn at the above address, by phone at 801-538-5130, by FAX at , or by Internet E-mail at [email protected]
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)
Additional Information
More information about a Notice of Proposed Rule is available online.
The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at https://rules.utah.gov/publicat/bull_pdf/2019/b20190415.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version.
Text to be deleted is struck through and surrounded by brackets ([example]). Text to be added is underlined (example). Older browsers may not depict some or any of these attributes on the screen or when the document is printed.
For questions regarding the content or application of this rule, please contact Lisa Wells at the above address, by phone at 801-538-5154, by FAX at , or by Internet E-mail at [email protected]; Merritt Dunn at the above address, by phone at 801-538-5130, by FAX at , or by Internet E-mail at [email protected]. For questions about the rulemaking process, please contact the Office of Administrative Rules.