40-13-402. Payment of brine proceeds.

350 words·~2 min read·/ut/title-40/chapter-13/40-13-402

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 5/7/2025

(a)A payor shall pay the brine proceeds derived from the sale of the minerals extracted from the brine to persons legally entitled to payment of the brine proceeds not later than 180 days after the date of first sale, and thereafter not later than 60 days after the end of the calendar month within which brine proceeds are received for subsequent production.

(b)A payor shall make a payment directly to the person entitled to the payment by the payor.

(c)A payor shall include the following information with each payment made to a person entitled to payment of brine proceeds from the sale of the mined minerals:

(i)unit identification;

(ii)month and year of sales included in the payment;

(iii)total volume of production from the unit of brine and volumes of minerals extracted;

(iv)owner's interest, expressed as a decimal, in production from the unit;

(v)total value of extracted dissolved minerals and chemical substances, including the price per unit of measurement at which the products were sold;

(vi)owner's share of the total value of sales prior to any deductions;

(vii)owner's share of the total value of sales after any deductions; and

(viii)a detailed listing of the amount and purpose of any deductions.

(a)A delay in determining whether a person is legally entitled to an interest in the brine proceeds does not affect payments to other persons entitled to payment.

(b)If accrued payments cannot be made within the time limits specified in Subsection (1), the payor shall deposit the brine proceeds credited to the eventual brine proceeds owner to an escrow account in a federally insured bank or savings and loan institution using a standard escrow document form.

(c)An escrow agent shall pay the principal and accrued interest from the escrow account to the person legally entitled to the principal and interest within 30 days from the date of receipt by the escrow agent of final legal determination of entitlement to the payment.

Enacted by Chapter 152 , 2025 General Session