(1)When oil, gas, or other hydrocarbon wells or fields belonging to multiple owners are operated as a unit, the owner of each fractional interest in such unit shall be liable for the same proportion of the tax levied against the real property of the unit that his or her fractional interest therein bears to the total of interests in such unit and shall be liable for the tax levied against his or her taxable value in the tangible personal property of such unit.
(2)The unit operator shall collect from the owners of the fractional interests and remit to the county treasurer of the county in which the unit is located all taxes levied against the real or tangible personal property of the unit. The unit operator may deduct and withhold from royalty payments, or any other payments made to any fr
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(1) When oil, gas, or other hydrocarbon wells or fields belonging to multiple owners are operated as a unit, the owner of each fractional interest in such unit shall be liable for the same proportion of the tax levied against the real property of the unit that his or her fractional interest therein bears to the total of interests in such unit and shall be liable for the tax levied against his or her taxable value in the tangible personal property of such unit.
(2) The unit operator shall collect from the owners of the fractional interests and remit to the county treasurer of the county in which the unit is located all taxes levied against the real or tangible personal property of the unit. The unit operator may deduct and withhold from royalty payments, or any other payments made to any fractional interest owner, either in kind or in money, the estimated amount of the tax to be paid by such fractional interest owner. Any difference between the estimated tax so withheld and the actual tax payable by any owner of a fractional interest may be accounted for by adjustments in royalty or other payments made to such owner subsequent to the time the actual tax is determined.
(3) At the request of any unit operator who does not disburse payments to fractional interest owners, the first purchaser shall collect the tax from the fractional interest owners and transfer such proceeds to the unit operator who shall remit to the treasurer the taxes levied against the unit. Such first purchaser shall collect from the fractional interest owners under the same procedure outlined for the unit operator in this section.
(4) Failure of the unit operator to collect and remit the tax as provided in this section shall not preclude the county treasurer from utilizing lawful collection and enforcement remedies and procedures to collect the tax owed by the fractional interest owner, but a nonoperating owner shall not be subject to penalty or interest upon the tax owed unless he or she fails to remit such tax within twenty days after notification to him or her by the county treasurer of the default of the operator.
(5) For the purposes of this section, unit shall mean any single oil, gas, or other hydrocarbon well or field which has multiple ownership, or any combination of oil, gas, or other hydrocarbon wells, fields, and properties consolidated into a single operation, whether by a formal agreement or otherwise, and owner shall mean the holder of any interest or interests in any such property or unit including royalty interests.
(6) The county assessor shall assist the county treasurer in the preparation of a tax statement to the unit operator to aid in the collection of all property taxes assessed against the unit.