KANSAS STATUTES AND CODES

55-1624. FERC-ordered refunds of tax reimbursements; recovery.

55-1624

Chapter 55.--OIL AND GAS Article 16.--MISCELLANEOUS PROVISIONS

55-1624. FERC-ordered refunds of tax reimbursements;recovery.(a) As used in this act, royalty interest owners includeoverriding royalty interest owners and royalty interests include overridingroyalty interests.

(b) On and after the effective date of this act, no firstseller of natural gas shall maintain any action against royalty interest ownersto obtain refunds of reimbursements for ad valorem taxesattributable toroyalty interests, ordered by thefederal energy regulatory commission.

(1) The period of limitation of time for commencing civil actions to recoversuch refunds attributable to reimbursements of ad valorem taxes onroyaltyinterests during the years 1983 through 1988 has expired and such refundsclaimed to be owed by royalty interest owners areuncollectible;

(2) first sellers of natural gas are prohibited from utilizing billingadjustments or other set-offs as a means of recovering from royalty owners anysuch claimedrefunds; and

(3) first sellers of natural gas took every opportunity to protect theirrights involving Kansas ad valorem tax reimbursements attributable toroyaltyinterest owners.

(d) Upon entry of a final order by a court having jurisdiction, or a finalorder of a governmental authorityhaving jurisdiction, that requires first sellers to make refunds ofreimbursementsfor ad valorem taxes on royalty interests during the years 1983 through1988notwithstanding this section or if this section is determined to beunconstitutional, in whole or in part, nothing in this section shall beconstrued to have affected the rights and remedies available to any party underthe laws of the state of Kansas, including those applicable in any action thata first seller of natural gas may bring against a royalty interest owner toobtain such a refund.

History: L. 1998, ch. 122, § 7; Apr. 30.