77-3-434. Manner of making royalty payment. Such lease shall provide for the rendering of payment of such royalty on all oil and gas produced and saved and sold or used off the premises in the following manner and upon the following terms:
(1) the lessee shall pay to the state in cash, for all oil and gas royalty reserved, the posted field price existing on the day such oil or gas is run into any pipeline or storage tank to the credit of the lessee, plus any bonus actually paid or agreed to be paid to the lessee for such oil or gas; or
(2) at the option of the state exercised in writing by the board not oftener than every 30 days, the lessee shall deliver the state's royalty oil or gas free of cost or deductions into the pipeline to which the wells of the lessee may be connected or into any storage designated by the state and connected with such wells.
History: En. Sec. 4, Ch. 108, L. 1927; re-en. Sec. 1882.4, R.C.M. 1935; amd. Sec. 1, Ch. 61, L. 1951; amd. Sec. 1, Ch. 103, L. 1965; amd. Sec. 2, Ch. 379, L. 1975; R.C.M. 1947, 81-1704(part).
Structure Montana Code Annotated
Chapter 3. Rock, Mineral, Coal, Oil, and Gas Resources
77-3-401. Oil and gas leases authorized
77-3-403. Hearings on questions related to leases
77-3-404. Limitation on area under single lease
77-3-405. Leased lands to be generally compact and contiguous
77-3-406. Number of leases which one person may hold
77-3-407. New leases on lands leased prior to February 28, 1953
77-3-408. Certain state officers not to be interested in leases
77-3-409. Misconduct of officers in relation to oil and gas leases
77-3-410. False statements relating to oil and gas leases
77-3-411. Notice of lease sale required
77-3-412. through 77-3-420 reserved
77-3-422. Lease extension clause
77-3-426. Lessee to prevent waste
77-3-427. Provision for offset wells -- compensatory royalties
77-3-428. Additional development following completion of productive well
77-3-429. Operating agreements
77-3-430. Pooling agreements and unit operations
77-3-434. Manner of making royalty payment
77-3-435. Payments due to state -- audit -- notice -- action
77-3-436. Disposition of royalties and other money
77-3-437. Amendment of existing leases
77-3-438. Assignments of leases
77-3-440. Forfeiture and cancellation of leases
77-3-441. Restriction on new lease following termination of old lease
77-3-442. Disposition of property of lessee upon termination of lease
77-3-443. Reservation in lease for disposition of surface
77-3-444. Limitation on overriding royalties and payments out of production