Sec. 26. (a) This section applies when a royalty is required to be paid under this chapter:
(1) for oil, at the option of the commission:
(A) at the mouth of the wells into tanks provided by the commission; or
(B) into the pipeline with which the wells are connected, to the commission's credit; and
(2) for gas, including casinghead gas or other gaseous substance.
(b) The lessee shall account to the commission for the market value of the oil or gas at the well for all that is sold by the lessee or used by the lessee in the manufacture of gasoline or other products. At the election of the commission, instead of delivering the royalty, when oil in kind, the lessee shall purchase the oil at the oil's market value at the well when produced.
[Pre-1995 Recodification Citation: 14-4-3-22.]
As added by P.L.1-1995, SEC.31.
Structure Indiana Code
Title 14. Natural and Cultural Resources
Article 38. Other Petroleum Regulation
Chapter 1. Petroleum Exploration on State Property
14-38-1-1. "Commence to Drill a Well" Defined
14-38-1-3. "Petroleum" Defined
14-38-1-4. "Proven Territory" Defined
14-38-1-5. "Public Land" Defined
14-38-1-7. No Permits Issued for Proven Territory
14-38-1-8. Compensation of Landowners and State
14-38-1-9. Prosecution of Operations With Reasonable Diligence
14-38-1-10. Surrender of Permit
14-38-1-11. Permittee's Lease for Petroleum Extraction
14-38-1-12. Other Leases for Petroleum Extraction
14-38-1-14. Consideration for Leases
14-38-1-15. Cancellation of Permit or Lease
14-38-1-16. Issuance of New Permit Following Expiration or Forfeiture
14-38-1-17. Agreement for Production From Same Petroleum Field
14-38-1-18. Terms for Protection of Rights
14-38-1-20. Well Not to Be Drilled Within 330 Feet of Property Boundaries
14-38-1-21. Right-of-Way Grants
14-38-1-22. Development Considerations
14-38-1-24. Prospecting Permits or Leases