55-221. Same; duties of receiver; duties of court. - Kansas Statutes

55-221

Chapter 55.--OIL AND GAS Article 2.--LEASES AND LIENS

      55-221.   Same; duties of receiver; duties ofcourt.Such receiver shall proceed immediately to enter into negotiations withprospective purchasers and shall sell an oil and gas lease on the interestof the defendant or defendants, such lease to be for aprimary term of notto exceed five years from date and as long thereafter as oil andgas,or either of them, is produced in paying quantities from theland by thelessee. The lease shall not be sold for less than theminimum bonus,rentals and royalties specified in the order of the court. All bonuses,rentals or other monies paidto the receiver for the execution or extension of the oil and gas leaseshall be by the receiver deposited with the court for theuse and benefit of the defendants. Upon productionbeing obtained or the expiration of the lease, the court shall immediatelydischarge such receiver. The court shall hold anddistribute the monies received in the same manner as property received by acourt as proceeds of a class action as specified in subsection (a)(9) of K.S.A.58-3935, and amendments thereto. Any and all future production payments orother benefits paid under such oil and gas lease shall be retained in suspenseby the oil and gas purchasing company and held until further orders of thecourt or until required to be distributed pursuant to the uniform unclaimedproperty act, K.S.A. 58-3934 et seq., and amendments thereto. The cost ofthe receiver andthecourt cost shall be affixed by the court and shall be paid by theplaintiff.

      History:   L. 1973, ch. 218, § 3;L. 2008, ch. 53, § 1; July 1.