04/24/1997 08:10 AM House FIN

  HOUSE BILL 242                                                               
                                                                               
       "An  Act relating  to unpaid,  underpaid,  and overpaid                 
       royalty and net profit share payments  due on leases of                 
       state  land  and  to  the  collection  and  payment  of                 
       interest on those payments."                                            
                                                                               
  KEN BOYD, (TESTIFIED VIA TELECONFERENCE), DIRECTOR, DIVISION                 
  OF  OIL & GAS,  DEPARTMENT OF  NATURAL RESOURCES,  noted his                 
  appreciation for the proposed legislation.                                   
                                                                               
  WILLIAM VAN  DYKE, (TESTIFIED VIA  TELECONFERENCE), DIVISION                 
  OF OIL & GAS,  DEPARTMENT OF NATURAL RESOURCES,  stated that                 
  the bill would allow the  State and the lessees a  sixty day                 
  grace period on  computing interest and paying  interest for                 
  royalties.    The  legislation  would benefit  both  parties                 
  equally.  The grace period would  be parallel to current oil                 
  and gas laws.                                                                
                                                                               
  The  bill is  designed  to increase  efficiency  on how  the                 
  Department  of Natural  Resources operates  by amending  the                 
  interest statutes as it  pertains to oil and  gas royalties.                 
  He added that the bill was only a housekeeping issue.                        
                                                                               
  Representative  Martin  MOVED  to  report   HB  242  out  of                 
  Committee   with   individual   recommendations    and   the                 
  accompanying fiscal note.                                                    
                                                                               
  HB  242  was reported  out  of  Committee with  a  "do pass"                 
  recommendation and with a zero fiscal note by the Department                 
  of Natural Resources.