57-101. Coal and iron development; state aid; conditions.

When it shall be made apparent to the Governor of Nebraska, by affidavit or otherwise, by the owner or owners thereof, that a vein of coal, not less than twenty-six inches in thickness, and of sufficient capacity to pay to mine, and within such distance from the surface that it can be worked by modern methods, has been discovered, or a vein or veins of good iron ore eighteen inches thick, it shall be the duty of the Governor to appoint a suitable person to examine the same, whose duty it shall be to report the probable extent and capacity of the vein or veins, all expense for such examination to be paid by the owner or owners of the mine. The report being satisfactory to the Governor, he shall direct the Director of Administrative Services to draw an order on the State Treasurer for the sum of four thousand dollars, to be paid to the owner or owners of such mine of coal, and of two thousand dollars to be paid for a vein of iron ore eighteen inches thick. If the vein of coal discovered should be three feet thick and of the required capacity, the sum to be paid shall be five thousand dollars. Such orders shall be paid out of the General Fund of the state treasury, as above directed.

Source:Laws 1903, c. 63, § 1, p. 359; R.S.1913, § 4008; C.S.1922, § 3411; C.S.1929, § 57-101; R.S.1943, § 57-101; Laws 1969, c. 461, § 1, p. 1610.


Annotations

57-102. Repealed. Laws 1949, c. 175, § 4.

57-102.01. Repealed. Laws 1951, c. 190, § 1.

57-102.02. Repealed. Laws 1951, c. 190, § 1.

57-102.03. Repealed. Laws 1951, c. 190, § 1.

57-103. Repealed. Laws 1951, c. 190, § 1.

57-104. Prospectors; specimens preserved.

It shall be the duty of the persons prospecting for coal, any mineral, ore, crude oil, or gas, carefully to preserve specimens from each stratum through which the shafts are sunk, or borings are made; and to deposit the same, properly labeled, in care of the proper department of the state for the future use of the commonwealth.

Source:Laws 1903, c. 63, § 4, p. 361; R.S.1913, § 4011; C.S.1922, § 3414; C.S.1929, § 57-104; R.S.1943, § 57-104; Laws 1978, LB 661, § 1; Laws 1980, LB 709, § 1.


57-105. Former discoveries; no aid given.

The provisions of sections 57-101 to 57-105 shall not apply to any veins of coal or iron ore already discovered nor to any oil wells or gas wells already producing, nor shall the provisions of said sections apply to the discovery of the same vein of coal or iron ore, or oil pool or gas field already discovered, nor shall any reward specified under the terms of said sections be paid for a second discovery of the same veins, pools or fields within the limits of the same county.

Source:Laws 1903, c. 63, § 5, p. 361; R.S.1913, § 4012; C.S.1922, § 3415; C.S.1929, § 57-105; R.S.1943, § 57-105.


57-106. Coal development; county aid; petition; election; bonds; limit.

The county board of each county in this state is hereby authorized and required to submit to the legal voters thereof, on presentation of a petition of twenty resident freeholders of the county, the proposition to issue bonds, not exceeding twenty thousand dollars, the proceeds of which shall be applied to defray the expenses of boring and prospecting for coal in the county under the direction of the county board thereof; and such board is hereby authorized to issue the bonds for such purposes, in case the vote shall be favorable to the proposition; Provided, however, the county board may, in its discretion, refuse to submit such inquiry to a vote of the people until the next general election after the presentation of such petition.

Source:G.S.1873, c. 13, § 1, p. 249; R.S.1913, § 4013; C.S.1922, § 3416; C.S.1929, § 57-106; R.S.1943, § 57-106.


57-107. Bonds; election; issuance; payment; laws applicable.

So far as applicable sections 10-401 to 10-405 shall govern the proceedings to submit such proposition, issue bonds, and provide for payment of the same; Provided, section 57-106 shall not apply to the counties of Burt, Washington and Sarpy.

Source:G.S.1873, c. 13, § 2, p. 250; R.S.1913, § 4014; C.S.1922, § 3417; C.S.1929, § 57-107; R.S.1943, § 57-107.


57-201. Oil, gas, and mineral leases; forfeiture; duty of lessee to surrender.

When any oil, gas, or other mineral lease heretofore or hereafter given on land situated in any county of Nebraska, and recorded therein, shall become forfeited, it shall be the duty of the lessee, his successors or assigns, within thirty days after the date of the forfeiture, to have such lease surrendered in writing, such surrender to be signed and acknowledged by the party making the same and placed on record in the county where the leased land is situated without cost to the owner thereof.

Source:Laws 1925, c. 133, § 1, p. 349; C.S.1929, § 57-201; R.S.1943, § 57-201; Laws 1955, c. 214, § 1, p. 600.


Annotations

57-202. Forfeited lease; failure to surrender; notice by landowner; form.

If the lessee, his or her successors or assigns, shall fail or neglect to execute and record such surrender within the time provided for, then the owner of the land may serve upon the lessee, his or her successors or assigns, in person or by either registered or certified letter, at his or her last-known address, or by publication for one week in a newspaper of general circulation in the county where the land is situated, a notice in writing in substantially the following form:

To ..........................: I, the undersigned, owner of the following described land situated in .......... County, Nebraska, to wit: (description of land), upon which a lease, dated .......... day of .......... 20...., was given to .......... do hereby notify you that the terms of the lease have been broken by the owner thereof; that I hereby elect to declare and do declare the lease forfeited and void and that, unless you do, within ten days from this date, notify the register of deeds of such county as provided by law that the lease has not been forfeited, I will file with the register of deeds an affidavit of forfeiture as provided by law; and I hereby demand that you execute or have executed a proper surrender of the lease and that you cause the same to be recorded in the office of the register of deeds of such county, within ten days from this date. Dated this .......... day of ........ 20.... .

Source:Laws 1925, c. 133, § 1, p. 349; C.S.1929, § 57-201; R.S.1943, § 57-202; Laws 1955, c. 214, § 2, p. 600; Laws 1957, c. 242, § 46, p. 858; Laws 2004, LB 813, § 26.    


57-203. Forfeited lease; failure to surrender; publication of notice; landowner's affidavit; contents.

The owner of the land may, after ten days from the date of service, registration, or publication of the notice, provided for by section 57-202, file with the register of deeds of the county where the land is situated an affidavit setting forth (1) that the affiant is the owner of the land; (2) that the lessee, his successors or assigns, have failed and neglected to comply with the terms of the lease, reciting the facts constituting such failure; (3) that the same has been forfeited and is void; and (4) a copy of the notice served and the manner and time of the service thereof.

Source:Laws 1925, c. 133, § 1, p. 350; C.S.1929, § 57-201; R.S.1943, § 57-203; Laws 1955, c. 214, § 3, p. 601; Laws 1963, c. 324, § 1, p. 982.


57-204. Lease; claim of nonforfeiture by lessee; notice to register of deeds; effect; effect of failure to give notice.

(1) If the lessee, his successors or assigns, shall, within twenty days after the filing of the affidavit referred to in section 57-203, give notice in writing to the register of deeds of the county where the land is located that the lease has not been forfeited and that the lessee, his successors or assigns, still claim that the lease is in full force and effect, then such affidavit shall not be recorded but the register of deeds shall notify the owner of the land of the action of the lessee, his successors or assigns, and the owner of the land shall be entitled to the remedies now provided by law for the cancellation of such disputed lease.

(2) If the lessee, his successors or assigns, shall not notify the register of deeds, as provided in subsection (1) of this section, the register of deeds shall record the affidavit, referred to in section 57-203, and thereafter the record of the lease shall not be notice to the public of the existence of the lease or of any interest therein or rights thereunder, and the record shall not be received in evidence in any court of the state on behalf of the lessee, his successors or assigns, against the lessor, his successors or assigns.

Source:Laws 1925, c. 133, § 1, p. 350; C.S.1929, § 57-201; R.S.1943, § 57-204; Laws 1955, c. 214, § 4, p. 602.


Annotations

57-205. Forfeited lease; lessee's failure to execute surrender; remedy of lessor.

Should the owner of such lease neglect or refuse to execute a surrender as provided in section 57-201, then the owner of the leased premises may sue in any court of competent jurisdiction to obtain such surrender, and he may also recover in such action of the lessee, his successors or assigns, the sum of one hundred dollars as damages, and all costs, together with a reasonable attorney's fee for preparing and prosecuting the suit, and any additional damages that the evidence in the case will warrant. In all such actions, writs of attachment may issue as in other cases.

Source:Laws 1925, c. 133, § 2, p. 351; C.S.1929, § 57-202; R.S.1943, § 57-205.


Annotations

57-206. Lease; discharge by entry on margin of record; procedure.

Any oil and gas or mining lease that has been or may hereafter be recorded in the office of the register of deeds of any county may be discharged and canceled of record by an entry on the margin of the record thereof signed by the lessee or his assigns of record, or his duly authorized attorney in fact or personal representative, or, if a corporation, by its duly authorized officers, surrendering all of his or its right, title and interest in and to such lease in the presence of the register of deeds or his deputy, who shall subscribe the same as witness.

Source:Laws 1925, c. 133, § 3, p. 351; C.S.1929, § 57-203; R.S.1943, § 57-206.


57-207. Lease; discharge by endorsement on indenture; procedure.

Any oil and gas or mining lease that has been or may hereafter be recorded in the office of the register of deeds of any county may be discharged and canceled by an endorsement made on the original lease signed by the lessee or his duly authorized attorney in fact, assignee of record or personal representative or, if a corporation, by its duly authorized officers, surrendering his or its right, title and interest in and to such lease, which endorsement may be entered on the margin of the record thereof, and shall have the same force and effect as the entry on the margin of the record as provided in section 57-206.

Source:Laws 1925, c. 133, § 4, p. 351; C.S.1929, § 57-204; R.S.1943, § 57-207.


57-208. Lease; filing with register of deeds; effect; contingent extension provision; affidavit of happening of contingency; filing; effect.

When an oil, gas or mineral lease is given on land situated within the State of Nebraska, the recording thereof in the office of the register of deeds of the county in which the land is located shall impart notice to the public of the validity and continuance of such lease for the definite term therein expressed, but no longer; Provided, that if such lease contains the statement of any contingency upon the happening of which the term of any such lease may be extended, such as and as much longer as oil and gas or either is produced in paying quantities, the owner of such lease may at any time before the expiration of the definite term of the lease file with the register of deeds an affidavit setting forth the description of the lease, that the affiant is the owner thereof and the facts showing that the required contingency has happened. This affidavit shall be recorded in full by the register of deeds, and such record together with that of the lease shall be due notice to the public of the existence and continuing validity of such lease, until the same shall be forfeited, canceled, set aside or surrendered according to law.

Source:Laws 1925, c. 133, § 5, p. 352; C.S.1929, § 57-205; R.S.1943, § 57-208.


Annotations

57-209. Lease; discharge of record; demand; requisite for action by landowner, when.

At least twenty days before bringing the action provided for in section 57-205, the owner of the leased land, either by himself or by his agent or attorney, shall demand of the holder of the lease, if such demand by ordinary diligence can be made in this state, that such lease be discharged of record. Such demand may be either written or oral. When written, a letterpress carbon or written copy thereof, when shown to be such, may be used as evidence in any court with the same force and effect as the original.

Source:Laws 1925, c. 133, § 6, p. 352; C.S.1929, § 57-206; R.S.1943, § 57-209.


57-210. Oil or gas lease; authority of executor, administrator, guardian, conservator, or trustee to execute; ratification of unauthorized or defective lease; how obtained.

Proceedings may be had in the county court of the county in which an estate or trust is being administered or proceedings for guardianship or conservatorship are being had or in the county court of the county in which real estate is situated, for authority to lease any interest in real estate, or any part thereof, of any deceased person, beneficiary of a trust, minor, incompetent, or person unfit by reason of infirmities of age or physical disability or to ratify any prior unauthorized or defective lease executed by any executor, administrator, guardian, conservator, or trustee. If it shall appear to the court or judge thereof sitting in chambers within the district to be for the advantage of the estate of any decedent, beneficiary of a trust, minor, incompetent person, or person unfit by reason of infirmities of age or physical disability to make a lease, ratification agreement, or contract for the exploration and development or pooling or unitization of the real property of the estate or trust, or any part thereof, for oil, gas, or other hydrocarbons, the court or judge, as often as occasion therefor shall arise in the administration of any estate or trust, or in the course of any guardianship matter, or in the course of administration by a conservator, may on a petition, notice, and hearing, as provided in sections 57-211 and 57-212, authorize, empower, and direct the executor, administrator, trustee, conservator, or the guardian of such minor or incompetent person to lease such real estate or any part thereof or enter into pooling or unitization contracts.

Source:Laws 1939, c. 69, § 1, p. 281; C.S.Supp.,1941, § 57-210; R.S.1943, § 57-210; Laws 1947, c. 199, § 1, p. 643; Laws 1951, c. 191, § 1, p. 701; Laws 1953, c. 190, § 1, p. 611; Laws 1955, c. 215, § 1, p. 603; Laws 1959, c. 259, § 1, p. 895; Laws 1967, c. 350, § 1, p. 928; Laws 1972, LB 1032, § 262.


57-211. Lease; authority of executor, administrator, guardian, conservator, or trustee to execute; how obtained; petition; contents.

The petition for such lease shall show (1) the advantage that may accrue to the estate or trust being administered or guardianship or conservatorship proceedings being had from making such proposed lease or entering into such pooling or unitization contract; (2) a general description of the property to be leased; (3) the term, rental, and general conditions of the proposed lease or pooling or unitization contract; and (4) the names of the (a) legatees and devisees, if any, or the heirs of the deceased, (b) beneficiaries of the trust, (c) minor, (d) incompetent person, or (e) a person unfit by reason of infirmities of age or physical disability, so far as known to the petitioner.

Source:Laws 1939, c. 69, § 2, p. 281; C.S.Supp.,1941, § 57-211; R.S.1943, § 57-211; Laws 1951, c. 191, § 2, p. 701; Laws 1955, c. 215, § 2, p. 604; Laws 1967, c. 350, § 2, p. 929.


57-212. Lease; authority of executor, administrator, guardian, conservator, or trustee to execute; notice; hearing; procedure; order.

(1) Upon the filing of such petition, the court or judge thereof sitting in chambers within the district, if such court or judge deems the petition sufficient, shall set the matter down for hearing and direct to what persons and in what manner notice of such hearing shall be given.

(2) At the hearing provided for in subsection (1) of this section, any person interested in the estate, trust, conservatorship, or guardianship proceeding may appear and present objections to the proposed lease or pooling or unitization contract. If objections are filed to the petition, the court or judge thereof may adjourn the hearing to enable the parties to fully present their reasons and evidence for and against the proposed lease or pooling or unitization contract.

(3) If no objections are filed, as provided for in subsection (2) of this section, or if upon such hearing the objections are deemed insufficient, the court or judge thereof may make an order authorizing such lease or pooling or unitization contract upon such terms and for such consideration and period as is deemed proper by the court or judge thereof. Such lease or pooling or unitization contract may be for a term as long as ten years and as long thereafter as oil, gas, or other hydrocarbons shall be, or can be, produced in commercial quantities. The lease or pooling or unitization contract shall not be invalid or voidable because its term may or does extend beyond the term of office of the executor, administrator, trustee, conservator, or guardian making the same, beyond the time of final settlement of the estate or trust, beyond the minority of the minor, or beyond the time of infirmity and physical disability of the person having a conservator, or beyond the period of incompetency of any such incompetent.

Source:Laws 1939, c. 69, § 3, p. 282; C.S.Supp.,1941, § 57-212; R.S.1943, § 57-212; Laws 1951, c. 191, § 3, p. 702; Laws 1953, c. 190, § 2, p. 612; Laws 1955, c. 215, § 3, p. 604; Laws 1967, c. 350, § 3, p. 929.


57-212.01. Lease; authority of executor, administrator, guardian, or trustee to execute; petition; unknown owners, heirs, devisees, or legatees; procedure.

Whenever it is set forth in the petition that there are unknown owners, or unknown heirs, devisees, or legatees of deceased owners, who claim or appear to have some interest in, rights or title to, or lien upon the real estate sought to be leased, the provisions of section 25-321 shall be followed before authority to execute a lease or pooling or unitization contract may be granted. To carry out the provisions of sections 57-210 to 57-212.01, the court may, upon the hearing of the petition, appoint a trustee to represent the interests of such unknown owners, or unknown heirs, devisees, or legatees and to carry out the orders of the court with respect thereto.

Source:Laws 1951, c. 191, § 4, p. 702; Laws 1955, c. 215, § 4, p. 605.


57-213. Repealed. Laws 1951, c. 192, § 3.

57-214. Repealed. Laws 1959, c. 262, § 22.

57-215. Repealed. Laws 1959, c. 262, § 22.

57-216. Repealed. Laws 1959, c. 262, § 22.

57-217. Repealed. Laws 1959, c. 262, § 22.

57-218. Oil and gas leases; authority to issue.

The governing board of all lands of the State of Nebraska, except the Board of Educational Lands and Funds, and the governing board of all cities, towns, counties, public power districts, school districts and all other governmental subdivisions of the State of Nebraska are respectively authorized and empowered to lease lands under their control for oil and gas exploration and development.

Source:Laws 1943, c. 163, § 1, p. 578; R.S.1943, § 57-218.


Annotations

57-219. Oil and gas leases; annual delay rentals; royalties.

Oil and gas leases, issued pursuant hereto, shall be for terms not to exceed ten years and as long thereafter as oil or gas is produced in paying quantities. Such leases shall provide for annual delay rentals of not less than twenty-five cents per acre and for a royalty of not less than twelve and one-half percent of all oil, gas, hydrocarbons and all other petroleum products produced and saved from the lands covered thereby and not used in the development and operation of the leased premises, or twelve and one-half percent of the market value thereof at the leased premises, free of cost to the lessor.

Source:Laws 1943, c. 163, § 2, p. 578; R.S.1943, § 57-219.


57-220. Oil and gas leases; sale at public auction; notice.

No such lease shall be sold except at public auction and after notice of the time and place of such sale, by publication two consecutive weeks in a legal newspaper published in the county where the land to be leased is situated and such other notice, if any, as the governing board may require. If no legal newspaper is published in the county where the land is situated said notice shall be published in a newspaper of general circulation therein. The purchaser of any such lease shall pay the cost of publishing the notice required hereunder.

Source:Laws 1943, c. 163, § 3, p. 578; R.S.1943, § 57-220.


57-221. Oil and gas leases; pooling of acreage authorized; allocation of production.

Such governing boards are respectively authorized in their discretion to enter into appropriate agreements for the purpose of unit or cooperative exploration, development, and operation of acreage, or any part of the acreage, covered by leases granted pursuant hereto with other acreage for the production of oil and gas. Such agreements shall provide for the allocation of production on a proportionate acreage or other agreed equitable basis.

Source:Laws 1943, c. 163, § 4, p. 579; R.S.1943, § 57-221; Laws 1961, c. 276, § 1, p. 810.


Annotations

57-222. Oil and gas leases; life tenant; trustee for remaindermen; appointment.

In any case where, by will, deed, or other instrument, title to real estate is in a tenant for life or other person having the right to the use thereof and income therefrom, with the remainder interest left to one or more contingent remaindermen, so that it is impossible to determine until the death of the life tenant or the future happening of some other determining event, who the contingent remaindermen will be or what interest, if any, the various contingent remaindermen will take, the county court of the county in which the real estate is located, upon the application of the life tenant, or any other person having a vested or contingent interest in the real estate, shall have jurisdiction and authority to appoint a trustee under proper bond, over the real estate, for the purpose of leasing the land or entering into pooling or unitization contracts for oil and gas developing purposes.

Source:Laws 1951, c. 187, § 1, p. 693; Laws 1955, c. 216, § 1, p. 606; Laws 1972, LB 1032, § 263.


57-223. Oil and gas leases; trustee for remaindermen; execute when authorized by court; procedure.

The trustee shall have the power and authority, subject to approval of the county court of the county where the land is located, to make valid oil and gas leases, pooling or unitization contracts, and other mining leases, upon the lands, for a term not to exceed ten years, and as long thereafter as oil, gas, or other minerals may be produced in paying quantities. The procedure to obtain such authority shall be substantially the same as the procedure provided under sections 57-211 and 57-212. The bonus and rentals therefrom shall be paid to the life tenant or other person entitled thereto.

Source:Laws 1951, c. 187, § 2, p. 694; Laws 1955, c. 216, § 2, p. 607; Laws 1959, c. 259, § 2, p. 896; Laws 1972, LB 1032, § 264.


57-224. Oil and gas leases; trustee for remaindermen; invest income from royalties.

Under proper court order, the trustee shall be authorized to invest income from royalties in like manner as funds of guardianships may be invested, which investments shall remain intact until the ultimate taker is determined and shall then be paid over to such ultimate taker and the trust closed. Income from investments shall be paid to the life tenant or other person entitled thereto.

Source:Laws 1951, c. 187, § 3, p. 694.


57-225. Repealed. Laws 1959, c. 262, § 22.

57-226. Repealed. Laws 1959, c. 262, § 22.

57-227. Mineral and royalty interests; separate interests; effect of foreclosure of lien for taxes.

No estate or interest in land or minerals, including royalty interest, shall be subject to foreclosure or otherwise affected by virtue of any lien for taxes against any other estate or interest in such land or minerals owned by another person, firm, or corporation.

Source:Laws 1957, c. 239, § 1, p. 800.


Annotations

57-228. Mineral interest; severed; termination; suit in equity; defendants.

Any owner or owners of the surface of real estate from which a mineral interest has been severed, on behalf of himself and any other owners of such interest in the surface, may sue in equity in the county where such real estate, or some part thereof, is located, praying for the termination and extinguishment of such severed mineral interest and cancellation of the same of record, naming as parties defendant therein all persons having or appearing to have any interest in such severed mineral interest, and if such parties defendant are not known and cannot be ascertained, they may be proceeded against as unknown defendants under the provisions of Chapter 25, article 3.

Source:Laws 1967, c. 348, § 1, p. 925.


Annotations

57-229. Mineral interests; severed; abandonment; extension; procedure.

A severed mineral interest shall be abandoned unless the record owner of such mineral interest has within the twenty-three years immediately prior to the filing of the action provided for in sections 57-228 to 57-231, exercised publicly the right of ownership by (1) acquiring, selling, leasing, pooling, utilizing, mortgaging, encumbering, or transferring such interest or any part thereof by an instrument which is properly recorded in the county where the land from which such interest was severed is located; or (2) drilling or mining for, removing, producing, or withdrawing minerals from under the lands or using the geological formations, or spaces or cavities below the surface of the lands for any purpose consistent with the rights conveyed or reserved in the deed or other instrument which creates the severed mineral interest; or (3) recording a verified claim of interest in the county where the lands from which such interest is severed are located. Such a claim of interest shall describe the land and the nature of the interest claimed, shall properly identify the deed or other instrument under which the interest is claimed, shall give the name and address of the person or persons claiming the interest, and shall state that such person or persons claim the interest and do not intend to abandon the same. The interest of any such owner shall be extended for a period of twenty-three years from the date of any such acts; Provided, that the provisions of this section shall not apply to mineral interests of which the State of Nebraska or any of its political subdivisions is the record owner.

Source:Laws 1967, c. 348, § 2, p. 925.


Annotations

57-230. Mineral interests; severed; abandoned; judgment.

If the court shall find that the severed mineral interest has been abandoned, it shall enter judgment terminating and extinguishing it, canceling it of record, and vesting the title thereto in the owner or owners of the interest in the surface from which it was originally severed in the proportions in which they own such interest in the surface.

Source:Laws 1967, c. 348, § 3, p. 926.


Annotations

57-231. Mineral interests; severed; limitation of action.

In any action filed within two years after October 23, 1967, the owner of a severed mineral interest may enter his appearance and assert his interest therein, and he shall be deemed thereby to have timely and publicly exercised his right of ownership.

Source:Laws 1967, c. 348, § 4, p. 926.


Annotations

57-232. Repealed. Laws 1971, LB 636, § 2.

57-233. Repealed. Laws 1971, LB 636, § 2.

57-234. Fractional interests in oil, gas, or hydrocarbon units or fields; taxation; violations; penalty.

(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.

Source:Laws 1971, LB 636, § 1; Laws 1993, LB 345, § 3.


57-235. Terms, defined.

For purposes of sections 57-235 to 57-239, unless the context otherwise requires:

(1) Mineral interests shall mean mines, minerals, quarries, mineral springs and wells, oil and gas wells, and overriding royalty interests and production payments with respect to oil or gas leases; and

(2) Surface estate shall mean any real property, real estate, or lands including all city and village lots and all other lands except mineral interests.

Source:Laws 1981, LB 59, § 1.


57-236. Mineral interests; severed; placed on tax list; application; contents.

Any owner of the surface estate from which a mineral interest has been severed or the owner of the mineral interest which has been severed may file an application with the county assessor of the county where such surface estate is located to place such severed mineral interest on the tax list of the county. The applicant shall, at his or her own cost, provide to the county assessor proof of ownership of the severed mineral interest and a record of the creation of the severed mineral interest, as shown by the records of the county clerk or register of deeds. Proof of ownership, the name and last-known address of the owner or owners, the ownership interest, including any fractional interest, legal description, and the record of creation of the severed mineral interest shall be provided in the form of an opinion by an attorney or a certificate prepared by a licensed abstracter.

Source:Laws 1981, LB 59, § 2.


57-237. Mineral interest; separate listing; application; when.

All applications requesting separate listing of a mineral interest and surface estate must be filed with the county assessor on or before January 1 of the year in which they are to be separately listed and assessed.

Source:Laws 1981, LB 59, § 3.


57-238. Mineral interest; separate listing; appeal.

Appeals from actions of the county assessor pursuant to sections 57-235 to 57-239 may be taken to the county board of equalization in the manner provided in Chapter 77, article 15.

Source:Laws 1981, LB 59, § 4.


57-239. Tax Commissioner; rules and regulations; prescribe forms.

The Tax Commissioner shall adopt and promulgate rules and regulations necessary for the implementation of sections 57-235 to 57-239. The Tax Commissioner shall also prescribe necessary forms for the implementation of sections 57-235 to 57-239.

Source:Laws 1981, LB 59, § 5; Laws 2000, LB 968, § 19;    Laws 2007, LB334, § 8.    


57-301. Terms, defined.

As used in sections 57-301 to 57-304, unless the context otherwise requires:

(1) The term person includes one or more individuals, partnerships, limited liability companies, associations, corporations, legal representatives, trustees, and receivers in bankruptcy and reorganization of any group whether or not it is incorporated; and

(2) The term oil field equipment means oil field supplies, oil field machinery, materials, heavy machinery, buildings, tubing, tanks, boilers, engines, casing, wire lines, sucker rods, oil pipelines, gas pipelines, and all other material used in digging, drilling, torpedoing, operating, completing, maintaining, or repairing any such oil or gas wells or oil pipelines or gas pipelines, or in the construction or dismantling of refineries, casing-head gasoline plants, and carbon black plants.

Source:Laws 1951, c. 185, § 1, p. 689; Laws 1993, LB 121, § 348.


57-302. Lien; scope.

Any person who transports or hauls oil field equipment under express contract with the owner or operator of any gas or oil leasehold interest in real property, the owner or operator of any gas pipeline or oil pipeline, the owner of any oil field equipment and material, or the trustee, agent, or receiver of any such owner, shall have a lien upon the interest of such owner in the oil field equipment so transported and hauled. The lien shall include, in addition to the charge for hauling or transporting, labor performed, or materials used and expended in the transporting, erecting, dismantling, loading, and unloading of any oil field machinery, equipment, or supplies hauled or transported.

Source:Laws 1951, c. 185, § 2, p. 690.


57-303. Lien; filing; notice; requirements; effect.

Any person entitled to file a lien shall, within four months after the oil field equipment was transported and delivered, file a statement in the office of the county clerk of such county where such oil field equipment was delivered, and at the time of filing such statement the claimant shall serve a copy of the statement upon the owner thereof, or upon the trustee, agent, or receiver of any such owner by mailing a copy of such statement to the owner or to the trustee, agent, or receiver of such owner by either registered or certified mail to his or their last-known address. After the filing and service of such notice as heretofore provided, it shall be the duty of any such owner, trustee, agent, or receiver of any such owner to notify in writing any person who has a lien upon any such oil field equipment and materials before removing the same from the leasehold to which the lien claimant delivered the oil field equipment and materials. Such statement shall include the amount claimed and the items thereof described as definitely as practicable, the name of the owner, the name of the contractor, the name of the claimant, and a full description of the property subject to the lien, verified by affidavit. In the event such oil field equipment or any part thereof has been removed from the county in which it was originally delivered into another county within the state, any person entitled to file a lien as provided for in sections 57-301 to 57-304, may within thirty days after that person has received notice that such oil field equipment or any part thereof has been removed from the county in which it was originally delivered, file in the office of the county clerk of such county, a copy of the lien which has heretofore been filed in the county in which such property was originally transported and delivered. The lien provided for hereunder shall be junior to any valid and existing chattel mortgage of record.

Source:Laws 1951, c. 185, § 3, p. 690; Laws 1957, c. 242, § 47, p. 859; Laws 1959, c. 260, § 1, p. 897.


57-304. Lien; enforcement by action; time.

The holder of such lien shall within two years of the filing of such lien institute an action to foreclose and enforce the lien in the manner now provided by law for the foreclosure of a construction lien or institute an action in attachment or replevin, setting forth the lienholder's interest and right to possession thereto, in a court of competent jurisdiction in the county where such oil field equipment has been delivered, or in any county where it can be located.

Source:Laws 1951, c. 185, § 4, p. 691; Laws 1959, c. 260, § 2, p. 898.


57-401. Easement; authority of executor, administrator, guardian, trustee, or conservator to execute.

Administrators and executors of the estates of deceased persons, trustees of trust estates, conservators of estates of persons unfit by reason of infirmities of age or physical disability, and the guardians of estates of minors and incompetent persons are hereby authorized to enter into contracts with pipeline companies, corporations, individuals, partnerships, or limited liability companies for the construction, operation, and maintenance of pipelines for the transmission of oil or gas and to sell and dispose of an easement under the contract for such purposes, upon and across the lands, or any interest therein, belonging to the estates of deceased persons, beneficiaries of a trust, estates of persons unfit by reason of infirmities of age or physical disability, and estates of minors and incompetents, upon such terms and conditions that the administrators, executors, trustees, conservators, or guardians of such persons may deem reasonable and equitable, and for the best interest of the estates of deceased persons, minors, persons unfit by reason of infirmities of age or physical disability, and incompetents and the beneficiaries of a trust.

Source:Laws 1951, c. 186, § 1, p. 692; Laws 1955, c. 217, § 1, p. 608; Laws 1967, c. 350, § 4, p. 930; Laws 1993, LB 121, § 349.


57-402. Easement; authority of executor, administrator, guardian, trustee, or conservator to execute; petition; notice; hearing; order.

(1) Before entering into any such contracts for such easements, an application shall be duly filed in the county court of the county in which the estate, guardianship, or conservatorship proceedings are pending, or trust is being administered, or in the county court of the county where the real estate is located, duly sworn and signed by the executor, administrator, trustee, conservator, or guardian, as the case may be. The application shall set forth in detail the nature and character of the contract and conveyance of the easement upon and across the lands of the estates, the purposes for which the same are to be used and maintained, the terms and conditions thereof, the consideration therefor, and the reasons why the same is for the best interests of the estate. The court or any judge thereof in chambers shall set the application for hearing and direct to what persons and in what manner notice of such hearing shall be given.

(2) At the time and place set for the hearing, as is provided for by subsection (1) of this section, the court shall conduct a hearing upon the application and if, after due consideration thereof, the court finds that the granting of the easement for the erection and maintaining of the pipeline upon or across the land, will not result in a material injury to the property of the deceased person, beneficiary of the trust, minor, incompetent, or person unfit by reason of infirmities of age or physical disability, and further finds that the consideration therefor is adequate and proper, the court may approve the application and authorize and direct the executor, administrator, trustee, conservator, or guardian to enter into such contract and to execute such grants or conveyances to carry the same into effect, and authorize and direct the executor, administrator, trustee, conservator, or guardian to deliver the same to the persons, individuals, firms, or corporations with whom the same were authorized to be made.

Source:Laws 1951, c. 186, § 2, p. 692; Laws 1955, c. 218, § 1, p. 609; Laws 1967, c. 350, § 5, p. 930; Laws 1972, LB 1032, § 265.


57-501. Terms, defined.

As used in sections 57-501 to 57-507, unless the context otherwise requires:

(1) Person means and includes any person, firm, or corporation;

(2) Owner means and includes (a) any person who holds a written bill of sale or other instrument under which title to the container was transferred to such person, (b) any person who holds a paid or receipted invoice showing purchase and payment of such container, (c) any person whose name, initials, mark, or other identifying device has been plainly and legibly stamped or otherwise shown upon the surface of such container for a period of not less than one year prior to the final enactment and approval of sections 57-501 to 57-507, or (d) any manufacturer of a container who has not sold or transferred ownership thereof by written bill of sale or otherwise;

(3) Liquefied petroleum gas means and includes any material which is composed predominantly of hydrocarbons or mixtures of the same, such as propane, propylene, butanes (normal butane and isobutane), and butylenes;

(4) Container means any vessel, including a cylinder or tank, used for storing of liquefied petroleum gas; and

(5) Cylinder means a container constructed in accordance with the United States Department of Transportation specifications in Title 49 of the Code of Federal Regulations as they existed on March 7, 2006.

Source:Laws 1951, c. 188, § 1, p. 695; Laws 2001, LB 137, § 1;    Laws 2006, LB 1007, § 3.    


57-502. Cylinders; filling; requirements.

No cylinder shall be filled or refilled with liquefied petroleum gas, or any other gas or compound, nor shall a cylinder be bought, sold, offered for sale, given, taken, loaned, delivered, or permitted to be delivered or otherwise used, or trafficked in, unless such cylinder meets the requirements of the regulations of the United States Department of Transportation as they exist on September 1, 2001.

Source:Laws 1951, c. 188, § 2, p. 696; Laws 2001, LB 137, § 2.    


57-503. Cylinders; valves; requirements.

While in transit, in storage, and being moved into final utilization, all cylinders containing liquefied petroleum gas must have their valves protected as required by the regulations of the United States Department of Transportation on September 1, 2001.

Source:Laws 1951, c. 188, § 3, p. 696; Laws 2001, LB 137, § 3.    


57-504. Container; filled by owner; purchase of cylinder; effect.

No person, except the owner thereof or persons authorized in writing by the owner so to do, shall fill or refill with liquefied petroleum gas, or any other gas or compound, a container or buy, sell, offer for sale, give, take, loan, deliver, or permit to be delivered, or otherwise use, dispose of, or traffic in a container if such container bears upon the surface thereof in plainly legible characters the name, initials, mark, or other device of the owner; nor shall any person, other than the owner of a container or a person authorized in writing by the owner, deface, erase, obliterate, cover up, or otherwise remove or conceal any such name, mark, initial, or device thereon. The person using any container may purchase the same at his or her option from the owner at a fair and reasonable market value, and after such purchase may purchase liquefied petroleum gas upon the open market.

Source:Laws 1951, c. 188, § 4, p. 696; Laws 2001, LB 137, § 4.    


57-505. Container; filling by other than owner; unlawful.

The use of a container by any person other than the person whose name, mark, initial, or device is or has been upon such container, without written consent or purchase of such marked and distinguished container, for the sale of liquefied petroleum gas or filling or refilling with liquefied petroleum gas, or the possession of such container by any person other than the person having his or her name, mark, initial, or other device thereon, without the consent of such owner, is presumptive evidence of the unlawful use, filling or refilling, or trafficking in of such container.

Source:Laws 1951, c. 188, § 5, p. 697; Laws 2001, LB 137, § 5.    


57-506. Container; unlawful use; search warrant; violation; penalty.

Whenever any person makes an oath in writing before any judge of the county court that the party making the affidavit has reason to believe and does believe that a container which is marked with the name, initials, mark, or other device of the owner is in the possession of or being used by or being filled or refilled by a person whose name, initials, mark, or other device does not appear on the container and who is in the possession of, filling or refilling, or using the container without the consent of the owner, the judge may, when satisfied that there is reasonable cause, issue a search warrant and cause the premises designated to be searched for the purpose of discovering and obtaining the container. The judge may also cause the person who possesses the container to be brought before the judge and inquire into the circumstances of such possession. If the judge finds that such person is guilty of a violation of sections 57-501 to 57-507, the judge shall sentence as provided in section 57-507 and shall also award the possession of the container, including the contents, taken upon such search warrant, to the owner thereof.

Source:Laws 1951, c. 188, § 6, p. 697; Laws 1986, LB 734, § 1; Laws 2001, LB 137, § 6.    


57-507. Violations; penalty.

Any person who shall fail to comply with any of the provisions of sections 57-501 to 57-507 shall be deemed guilty of a Class III misdemeanor. Each violation of this section shall constitute a separate offense.

Source:Laws 1951, c. 188, § 7, p. 698; Laws 1977, LB 39, § 56.


57-508. Sale of gas; units of measurement.

It shall be unlawful to sell at retail or wholesale or offer for sale at retail or wholesale any liquefied petroleum gas except specified in pounds; liquid measure, specified in gallons; or vapor, specified in cubic feet or such other units as may be approved by the Department of Agriculture.

Source:Laws 1957, c. 240, § 1, p. 801.


57-509. Sale by weight; marking required.

When liquefied petroleum gas is sold at retail or wholesale or offered for sale at retail or wholesale by weight, in packages or containers, the tare weight of the container, and the net weight of the contents shall be plainly and conspicuously marked on the outside of the container or on a label firmly attached thereto. Tare weight shall not be construed to include the valve protecting cap, which shall be removed when weighing. It shall be a violation of sections 57-508 to 57-516 to sell or offer or expose for sale liquefied petroleum gas in packages or containers which do not bear a statement as to tare and net weight as required by this section, or which packages or containers bear a false statement as to weights.

Source:Laws 1957, c. 240, § 2, p. 801.


57-510. Weighing and measuring devices; testing; duties of Department of Agriculture.

The Department of Agriculture is authorized to test all weighing and measuring devices used in the retail or wholesale sale of liquefied petroleum gas, and shall condemn all such devices which are found (a) to be inaccurate and (b) do not clearly indicate the quantity of liquefied petroleum gas in pounds, or gallons, or cubic feet or other unit approved by the department. It shall be unlawful to use a weighing or measuring device for determining quantities of liquefied petroleum gas which has been condemned by the department. The department shall conspicuously mark all condemned devices, which mark shall not be removed or defaced except upon authorization of the said department or authorized representatives. It shall be unlawful to use a vapor meter dial which is not equipped with a cubic foot indicator for testing the accuracy of the meter.

Source:Laws 1957, c. 240, § 3, p. 802.


57-511. Sale; invoices; information required.

An invoice shall be submitted to the purchaser showing the quantity of liquefied petroleum gas sold, expressed in pounds, or gallons, or cubic feet, or other unit approved by the Department of Agriculture. When vapor meters reading in approved units other than cubic feet are used, the invoice shall clearly indicate to the purchaser a factor to convert to gallons.

Source:Laws 1957, c. 240, § 4, p. 802.


57-512. Sale of gas; rules and regulations; tolerances.

The Department of Agriculture is authorized to promulgate and adopt such rules and regulations and establish tolerances within a maximum of two percent, plus or minus, which may be necessary for the enforcement of sections 57-508 to 57-516.

Source:Laws 1957, c. 240, § 5, p. 802.


57-513. Refilling of package or container; credit for unused liquid.

When liquefied petroleum gas is sold by the package or container, either by a refilling of a container or an exchange of containers, the vendor shall give the purchaser full credit for the unused liquid remaining in a container being exchanged or refilled.

Source:Laws 1957, c. 240, § 6, p. 802.


57-514. Vehicle tank; equipment.

Each vehicle tank, used in the retail or wholesale sale of liquefied petroleum gas, shall be equipped with a meter for measurement of liquefied petroleum gas in terms of gallons, and shall not be equipped with a bypass around the meter; Provided, that the prohibition of a bypass is not intended to prohibit the use of an equalization line.

Source:Laws 1957, c. 240, § 7, p. 802.


57-515 Image
57-515. Sale; correction for temperature; sale tickets; contents.

Liquefied petroleum gas sold or delivered to a consumer and measured by the gallon as liquid shall be corrected for temperature in accordance with the volume correction factor table for liquefied petroleum gases, being schedule A of this section. All retail or wholesale sale tickets shall show the metered gallons and the temperature at the time of delivery and the corrected gallonage. This section shall not apply to unit sales or deliveries made direct to mobile fuel tanks, consisting of less than one hundred gallons. To convert from measured volume at another temperature to net volume at 60 degrees Fahrenheit: measure the volume and temperature. Determine the gravity at 60 degrees Fahrenheit. Refer to the column corresponding to this gravity and read the volume conversion factor opposite the observed temperature. Multiply the observed volume by this factor to obtain the volume at 60 degrees Fahrenheit.

Schedule A

VOLUME CORRECTION FACTOR TABLE

Specific Gravity at 60 F/60 F

Degrees Fahr.

Propane

Iso-butane

N-Butane

VOLUME CORRECTION FACTORS.

Source:Laws 1957, c. 240, § 8, p. 803.


57-516. Unlawful sale; violation; penalties.

Any person who violates any of the provisions of sections 57-508 to 57-516 shall be guilty of a Class IV misdemeanor.

Source:Laws 1957, c. 240, § 9, p. 807; Laws 1977, LB 39, § 57.


57-517. Liquefied petroleum gas vapor service system; container warning label; affixed by provider; limitation on liability.

(1) The Legislature finds it is necessary that a leak check be performed following an interruption of service of a liquefied petroleum gas vapor service system to ensure safe and proper operation. Further, the Legislature finds that a leak check must be performed by a qualified service technician.

(2) It is the intent of the Legislature to create a mechanism that will educate users of liquefied petroleum gas of the requirements for a leak check when an interruption of service occurs.

(3) For purposes of this section:

(a) Interruption of service means the gas supply to a liquefied petroleum gas vapor service system is turned off;

(b) Leak check means an operation performed on a complete liquefied petroleum gas piping system and the connection equipment to verify that the liquefied petroleum gas vapor service system does not leak;

(c) Liquefied petroleum gas provider means any person or entity engaged in the business of supplying, handling, transporting, or selling at retail liquefied petroleum gas in this state; and

(d) Liquefied petroleum gas vapor service system means an installation with a maximum operating pressure of one hundred twenty-five pounds per square inch or less and includes, but is not limited to, the container assembly, pressure regulator or regulators, piping system, gas utilization equipment and components thereof, and venting system in residential, commercial, or institutional installations. Liquefied petroleum gas vapor service system does not include:

(i) Portable liquefied petroleum gas appliances and equipment of all types that are not connected to a fixed-fuel piping system;

(ii) Farm appliances and equipment in liquid service, including, but not limited to, brooders, dehydrators, dryers, and irrigation equipment;

(iii) Liquefied petroleum gas equipment for vaporization, gas mixing, and gas manufacturing;

(iv) Liquefied petroleum gas piping for buildings under construction or renovations that is not to become part of the permanent building piping system, such as temporary fixed piping for building heat; or

(v) Fuel gas system engines, including, but not limited to, tractors, mowers, trucks, and recreational vehicles.

(4) The liquefied petroleum gas provider shall affix a container warning label on each tank supplying liquefied petroleum gas to a liquefied petroleum gas vapor service system. The container warning label shall be affixed near the tank shutoff.

(5) The container warning label required by subsection (4) of this section shall include this warning:

WARNING: Do Not Open Container Shutoff Valve! If this valve is turned off for any reason, the National Fuel Gas Code (NFPA 54) requires a leak check of the system serviced by the container at the time the valve is turned back on. The leak check must be conducted by a qualified service technician. Do Not Attempt To Open The Valve Yourself! Failure to follow this warning may result in the ignition of leaking gas, causing serious and potentially fatal injury, fire, or explosion.

The container warning label shall include the statutory reference to this section.

(6) If the container warning label is affixed near the tank shutoff as required by subsection (4) of this section and the liquefied petroleum gas vapor service system is turned on prior to a leak check by a qualified service technician approved by the liquefied petroleum gas provider, the liquefied petroleum gas provider shall not be liable for any damage, injury, or death if the proximate cause of the damage, injury, or death was the negligence of a person or persons other than the liquefied petroleum gas provider.

Source:Laws 2007, LB274, § 1.    


57-601. Terms, defined.

As used in sections 57-601 to 57-607, unless the context otherwise requires:

(1) Eminent domain statutes shall mean sections 76-701 to 76-724;

(2) Underground reservoir shall mean any subsurface sand, stratum, or formation suitable for the injection and storage of natural gas or liquefied petroleum gas or both therein or which is capable of being made suitable for the storage of natural gas or liquefied petroleum gas, or both, by the construction of underground caverns by means of mining operations and the withdrawal of natural gas or liquefied gas therefrom;

(3) Underground storage shall mean the right to inject and store natural gas or liquefied petroleum gas or both within and to withdraw natural gas or liquefied petroleum gas from an underground reservoir;

(4) Natural gas shall mean gas which has been produced from the earth in its original state or such gas after the same has been processed or treated;

(5) Native gas shall mean gas which has not been previously withdrawn from the earth;

(6) Liquefied petroleum gas shall mean hydrocarbons or mixtures thereof which have been extracted from natural gas or crude oil and which consist primarily of propane or butane or mixtures thereof;

(7) Condemner shall mean any person, partnership, limited liability company, corporation, association, or municipal corporation authorized to transport or distribute natural gas as a public utility within this state for ultimate public use or consumption;

(8) Condemnee, property, and county judge shall have the same meaning as in the eminent domain statutes;

(9) Public owner shall mean (a) the state, (b) any agency or political subdivision thereof, (c) any municipal corporation, (d) any quasi-municipal corporation, or (e) any public authority which has an interest in any of the lands in and under which a condemner requires the right to underground storage;

(10) Commercially recoverable native gas shall mean that native gas which would provide revenue in excess of direct operating expenses if produced;

(11) Reasonable notice shall mean notice served in the same manner as is provided in the code of civil procedure for the service of process in civil actions in the district courts of this state; and

(12) Interested parties shall mean the owners of any oil or gas leasehold, mineral, or royalty interest in the underground stratum or formation sought to be acquired and the owners of the surface rights to the underground stratum or formation.

Source:Laws 1953, c. 191, § 1, p. 613; Laws 1963, c. 325, § 1, p. 983; Laws 1993, LB 121, § 350.


57-602. Public policy.

Underground storage of natural gas or liquefied petroleum gas or both is found and declared to be in the public interest if it promotes the conservation of natural gas and permits the accumulation of natural gas reserves or liquefied petroleum gas reserves or both in an underground reservoir in order to make natural gas more readily available to the domestic, commercial, and industrial consumers of this state.

Source:Laws 1953, c. 191, § 2, p. 614; Laws 1963, c. 325, § 2, p. 985.


57-603. Eminent domain; rights of condemner.

Whenever any condemner shall require the right to underground storage in any of the lands within this state, such condemner may file an action to condemn and acquire such underground storage in and under the lands sought to be condemned, including the amount of commercially recoverable native gas, if any, remaining in the reservoir, together with such other rights or interests as may be necessary and proper to the full enjoyment thereof; Provided, that any right of underground storage obtainable hereunder shall be without prejudice to the rights of the owners of the surface of such land or other interests therein as to all other uses thereof.

Source:Laws 1953, c. 191, § 3(1), p. 614; Laws 1963, c. 325, § 3, p. 985.


57-604. Acquisition of property; petition of condemner; requirements.

The condemner shall set forth in the petition filed in the action to condemn and acquire the right to underground storage, referred to in section 57-603, whether any public owner has any interest which would be affected by underground storage in any of the lands in which such right to underground storage is required. Any such public owner having any such interest shall be served with notice of such petition in like manner as any condemnee, and such public owner shall, by instrument made by its proper officer or officers, grant such interest, but not more than the right to underground storage, to the condemner upon the payment to it by the condemner of compensation in such amount as shall have been fixed by the award in respect thereto, made in like manner as if such public owner were a condemnee.

Source:Laws 1953, c. 191, § 3(2), p. 614.


57-605. Acquisition of property; conditions precedent; hearing; order; appeal.

Any condemner desiring to exercise the right of eminent domain as to any property for use for underground storage of natural gas or liquefied petroleum gas or both shall, as a condition precedent to the filing of its petition, obtain from the Nebraska Oil and Gas Conservation Commission a certificate setting out findings of the commission (1) that the underground stratum or formation sought to be acquired is not capable of producing oil in paying quantities by any generally accepted method, (2) that the field, if then capable of producing commercially recoverable native gas, must have been producing natural gas for at least ten years, (3) that the condemner has acquired by purchase or other voluntary means at least sixty percent of the ownership which has the right to grant the use of the underground stratum or formation sought to be acquired, computed in relation to the surface area overlying that part of the stratum or formation expected to be penetrated by displaced or injected gas, and that the volume of native gas originally in place in the underground stratum or formation sought to be acquired is forty percent depleted, (4) that the underground stratum or formation sought to be acquired is suitable for the underground storage of natural gas or liquefied petroleum gas or both, (5) the amount of commercially recoverable native gas, if any, remaining therein, and (6) in the event any recoverable native gas is found to remain therein, that its use for such purposes is in the public interest because the stratum or formation has a greater value or utility as an underground reservoir for the storage of natural gas or liquefied petroleum gas or both than for the production of the remaining volumes of native gas. Such finding shall not of itself be a basis for compensation to be paid to the condemnee. If at the time of the condemner's filing with the commission native gas from the underground reservoir is being used for the secondary recovery of oil, then gas in necessary and required amounts shall be furnished to the operator or operators of the secondary recovery operations at equivalent costs, for so long as oil is produced in paying quantities in the secondary recovery operations, but the amount of gas to be furnished hereunder shall not exceed the quantity of recoverable native gas found to exist in the reservoir at the time of its acquisition hereunder if such operator was or operators were at such time entitled to the whole thereof, but if it was or they were at such time entitled to less than the whole thereof, then not to exceed the quantity thereof to which such operator was or operators were then entitled. The commission shall issue no such certificate until after public hearing is had on application and upon reasonable notice to interested parties. The applicant shall be assessed and pay all the costs of the proceedings incurred with the commission. Any person having an interest in the property affected by a finding of the commission or the condemner may appeal the issuance or denial of certificate or from any finding as to the amount of commercially recoverable native gas, and the appeal shall be in accordance with the Administrative Procedure Act.

Source:Laws 1953, c. 191, § 3(3), p. 615; Laws 1963, c. 325, § 4, p. 985; Laws 1988, LB 352, § 100.


Cross References

57-606. Acquisition of property; without prejudice to drilling rights; protection of underground reservoir against pollution or escape of gas; payment by public utility owning right to storage; limitation on rights of condemnee.

Any right of underground storage obtained hereunder, except in an underground storage reservoir which is a mined cavern constructed by mining operations, shall be without prejudice to the rights of any condemnee to explore for, drill for, produce, process, treat, or market any oil, gas, or other minerals which might be contained in such lands above or below the underground reservoir. Any additional cost and expense required to be incurred in order to protect the underground reservoir against pollution or escape of gas or liquefied petroleum gas therefrom by reason of boring or drilling above, into, or through such underground reservoir as provided for herein shall be paid by the public utility then owning the right to underground storage therein; Provided, no condemnee shall have the right to bore or drill into or through, or otherwise interfere with, an underground storage reservoir which is a mined cavern constructed by mining operations.

Source:Laws 1953, c. 191, § 3(4), p. 615; Laws 1963, c. 325, § 5, p. 987.


57-607. Acquisition of property; eminent domain; procedure; payment of severance tax.

Except as otherwise provided in sections 57-603 to 57-606, all proceedings in connection with the condemnation and acquisition of such underground storage and such other rights or interests as may be necessary and proper to the full enjoyment of such right shall be in accordance and compliance with sections 76-704 to 76-724, including full rights of appeal as to the amount of damages. The condemner shall pay the severance tax due on all commercially recoverable native gas being acquired for underground storage purposes whether such acquisition is made voluntarily or under the provisions of sections 57-601 to 57-609. The tax shall be based on the current value of the gas and shall be paid to the State Treasurer on the volume of commercially recoverable native gas remaining in place at the time of acquisition as found by the Nebraska Oil and Gas Conservation Commission pursuant to section 57-605. The State Treasurer shall place the tax received in the Severance Tax Fund.

Source:Laws 1953, c. 191, § 4, p. 616; Laws 1961, c. 370, § 3, p. 1145; Laws 1963, c. 325, § 6, p. 987.


57-608. Reduction of gas to possession; property of condemner; exception.

All natural gas or liquefied petroleum gas which has previously been reduced to possession, and which is subsequently injected into an underground storage reservoir, shall at all times be deemed the property of the condemner, his heirs, successors or assigns; and in no event shall such natural gas or liquefied petroleum gas be subject to the right of the owner of the surface of said lands or of any mineral interest therein, under which said gas storage reservoir lies, or of any person other than the condemner, his heirs, successors and assigns, to produce, take, reduce to possession, waste, or otherwise interfere with or exercise any control thereover; Provided, that the condemner, his heirs, successors and assigns, shall have no right to natural gas or liquefied petroleum gas in any stratum, or portion thereof, which has not been condemned under the provisions of sections 57-601 to 57-609, or otherwise purchased.

Source:Laws 1963, c. 325, § 7, p. 988.


57-609. Abandonment by condemner of underground reservoir; reversion of property to landowner.

When the condemner shall have permanently abandoned the entire underground storage reservoir for storing natural gas or liquefied petroleum gas, title to that sand, formation, or stratum which had been appropriated under the terms of sections 57-601 to 57-609 shall revert to the then owners of the land, mineral and royalty interests in proportion to their several ownerships.

Source:Laws 1963, c. 325, § 8, p. 988.


57-701. Terms, defined.

As used in Chapter 57, article 7, unless the context otherwise requires:

(1) Base production level shall mean a property's production for the preceding twelve months divided by the number of producing well production days. Enhanced recovery injection wells may be counted as producing wells to determine the base production level for a property;

(2) Oil shall mean any petroleum product or other oil taken from the earth;

(3) Severed shall mean the taking from the land by any means whatsoever of the natural resources enumerated in Chapter 57, article 7;

(4) Person shall mean any person, firm, concern, receiver, trustee, executor, administrator, agent, institution, association, partnership, limited liability company, company, corporation, or person acting under a declaration of trust or as an operator under a lease agreement or unitization agreement;

(5) Property shall mean the right to produce crude oil or natural gas which arises from a lease, fee, or mineral interest. A property owner may treat as a separate property each separate and distinct producing reservoir subject to the same right to produce crude oil or natural gas if such reservoir is recognized by the Nebraska Oil and Gas Conservation Commission as a producing formation that is separate and distinct from and not in communication with any other producing formation;

(6) Producer shall mean the owner of a well or wells capable of producing oil or gas or both or any person who owns and operates a lease or a unit of producing leases in which other persons own interests, with respect to such well or wells;

(7) Stripper oil shall mean oil produced from a property where the base production level is ten or fewer barrels per day; and

(8) Nonstripper oil shall mean oil produced from a property where the base production level is more than ten barrels per day.

Source:Laws 1955, c. 219, § 1, p. 611; Laws 1967, c. 351, § 1, p. 932; Laws 1983, LB 228, § 1; Laws 1983, LB 224, § 1; Laws 1993, LB 121, § 351.


57-702. Tax; levy; persons liable; due and payable; lien.

(1) Commencing on January 1, 1956, and for each subsequent year, taxes are hereby levied on oil and natural gas severed from the soil of this state, except such oil or gas as is used only in severing operations or for repressuring or recycling purposes. Such taxes shall: (a) Be paid by (i) the first purchaser, if such oil or natural gas is sold in the state, or (ii) the person severing such oil or gas if such oil or natural gas is sold outside the state; and (b) become due and payable monthly, as provided by Chapter 57, article 7.

(2) The state shall have a prior and preferred lien, which shall arise when the tax levied in subsection (1) of this section is delinquent as provided in section 57-704, for the amount of the taxes, penalties, and interest imposed pursuant to Chapter 57, article 7, on:

(a) The oil or gas to which the tax applies that is possessed by the producer, first purchaser, or subsequent purchaser;

(b) The leasehold interest, oil or gas rights, the value of oil or gas rights, and other interests, including oil or gas produced and oil or gas runs owned by a person liable for the tax;

(c) Equipment, tools, tanks, and other implements used on the leasehold from which the oil or gas is produced; and

(d) Any other property not exempt from forced sale owned by the person liable for the tax.

As soon as possible after such lien arises, the Tax Commissioner shall cause such lien to be filed in the office of the appropriate filing officer.

Source:Laws 1955, c. 219, § 2, p. 611; Laws 1983, LB 228, § 2; Laws 1983, LB 224, § 2; Laws 1986, LB 1027, § 196.


57-703. Tax; levy on resources severed; rate.

The taxes levied by section 57-702 shall be levied upon the value of the resources severed, and shall be paid at the rate of three percent of the value of nonstripper oil and natural gas, except that oil produced from properties producing stripper oil shall be subject to a two percent severance tax. The value of oil and natural gas shall be computed immediately after such severance at the place where the same were severed.

Source:Laws 1955, c. 219, § 3, p. 611; Laws 1981, LB 257, § 1; Laws 1983, LB 228, § 3.


57-704. Taxes; payment; time; statement; filing; form; contents.

All taxes levied, as provided by sections 57-701 to 57-714, shall be due and payable in monthly installments on or before the last day of the month next succeeding the month in which the resources were severed. If the final filing date falls on a Saturday, Sunday, or legal holiday, the next secular or business day shall be the final filing date. Such reports shall be considered filed on time if mailed in an envelope properly addressed to the Tax Commissioner and postmarked before midnight of the final filing date. The person required to make payments pursuant to section 57-702 shall, on or before the last day of the month next succeeding the month in which the resources were severed, make out and file with the Tax Commissioner a report or return for the preceding month in such form as may be prescribed by the Tax Commissioner showing: The business conducted by the person engaged in the severing during the preceding month; the kind and gross quantity and value of the resources so severed; the location of the place or places where the same were severed; and such other information as the Tax Commissioner may require.

Source:Laws 1955, c. 219, § 4, p. 612; Laws 1967, c. 351, § 2, p. 932; Laws 1983, LB 224, § 3.


57-705. Tax; remittance; Severance Tax Fund; Severance Tax Administration Fund; created; use.

(1) All severance taxes levied by Chapter 57, article 7, shall be paid to the Tax Commissioner. He or she shall remit all such money received to the State Treasurer. All such money received by the State Treasurer shall be credited to a fund to be known as the Severance Tax Fund. An amount equal to one percent of the gross severance tax receipts, excluding those receipts from tax derived from oil and natural gas severed from school lands, credited to the fund shall be credited by the State Treasurer, upon the first day of each month, and shall inure to the Severance Tax Administration Fund to be used for the expenses of administering Chapter 57, article 7. Transfers may be made from the Severance Tax Administration Fund to the General Fund at the direction of the Legislature. The balance of the Severance Tax Fund received from school lands shall be credited by the State Treasurer, upon the first day of each month, and shall inure to the permanent school fund.

(2) Of the balance of the Severance Tax Fund received from other than school lands (a) the Legislature may transfer an amount to be determined by the Legislature through the appropriations process up to three hundred thousand dollars for each year to the State Energy Office Cash Fund, (b) the Legislature may transfer an amount to be determined by the Legislature through the appropriations process up to thirty thousand dollars for each year to the Public Service Commission for administration of the Municipal Rate Negotiations Revolving Loan Fund, and (c) the remainder shall be credited and inure to the permanent school fund.

(3) The State Treasurer shall transfer two hundred fifty thousand dollars from the Severance Tax Administration Fund to the Department of Revenue Enforcement Fund on July 1, 2009, or as soon thereafter as administratively possible. The State Treasurer shall transfer two hundred fifty thousand dollars from the Severance Tax Administration Fund to the Department of Revenue Enforcement Fund on July 1, 2010, or as soon thereafter as administratively possible.

Source:Laws 1955, c. 219, § 5, p. 612; Laws 1959, c. 261, § 1, p. 899; Laws 1967, c. 351, § 3, p. 933; Laws 1981, LB 257, § 2; Laws 1982, LB 799, § 1; Laws 1983, LB 228, § 4; Laws 1983, LB 607, § 2; Laws 1985, LB 126, § 1; Laws 1986, LB 258, § 10; Laws 1989, LB 727, § 2; Laws 1993, LB 5, § 2; Laws 1993, LB 364, § 20; Laws 1993, LB 670, § 1; Laws 2000, LB 1369, § 1;    Laws 2003, LB 790, § 58;    Laws 2009, LB316, § 15;    Laws 2009, First Spec. Sess., LB3, § 32.    


57-706. Tax; security; notice; use.

The Tax Commissioner, whenever he or she deems it necessary to insure compliance with the provisions of sections 57-701 to 57-719, may require any person subject to the tax to deposit with the Tax Commissioner suitable indemnity bond to insure payment of the taxes, levied under the provisions of sections 57-701 to 57-719, as the Tax Commissioner may determine. Such security may be used if it becomes necessary to collect any tax, interest, or penalty due. Notice of the use thereof shall be given to such person by mail.

Source:Laws 1955, c. 219, § 6, p. 612; Laws 1957, c. 242, § 48, p. 860; Laws 1967, c. 351, § 4, p. 934; Laws 2012, LB727, § 14.    


57-707. Reports; payment of tax.

Except as otherwise provided in sections 57-701 to 57-714, the reports required under the provisions of sections 57-701 to 57-714 shall be made and the taxes paid by the person required to make payments pursuant to section 57-702.

Source:Laws 1955, c. 219, § 7, p. 613; Laws 1983, LB 224, § 4.


57-708. Tax; deductions permitted.

The person, remitting to the Tax Commissioner the taxes levied by the provisions of sections 57-701 to 57-714, shall deduct, from the amount due the persons owning an interest in the oil or gas or in the proceeds thereof at the time of severance, the proportionate amount of such taxes before making payment to such persons.

Source:Laws 1955, c. 219, § 8, p. 613; Laws 1967, c. 351, § 5, p. 934.


57-709. Tax; delinquent; action.

The Tax Commissioner may bring an action against any person engaged in the severing of the oil or natural gas, or when such resources are sold in the state, against the first purchaser of the oil or natural gas, for the collection of taxes which are due and delinquent under the provisions of sections 57-701 to 57-714.

Source:Laws 1955, c. 219, § 9, p. 613; Laws 1967, c. 351, § 6, p. 934; Laws 1983, LB 224, § 5.


57-710. Tax; when delinquent; interest; penalty.

The tax provided by sections 57-701 to 57-714 shall become delinquent after the last day of each month as provided in section 57-704. Any such tax not paid within the time specified shall bear interest at the rate specified in section 45-104.02, as such rate may from time to time be adjusted, from the date of delinquency until paid, and such tax together with the interest shall be a lien as provided in section 57-702. The Tax Commissioner shall charge and collect a penalty for the delinquency in the amount of one percent of the delinquent taxes for each month, or part thereof, that the delinquency has continued, but in no event shall the penalty be more than twenty-five percent of the delinquent taxes. The Tax Commissioner may waive all or part of the penalty provided in this section but shall not waive the interest.

Source:Laws 1955, c. 219, § 10, p. 613; Laws 1967, c. 351, § 7, p. 934; Laws 1983, LB 224, § 6; Laws 1986, LB 1027, § 197; Laws 1992, Fourth Spec. Sess., LB 1, § 6.


57-711. Repealed. Laws 1983, LB 228, § 12.

57-712. Tax Commissioner; supervise tax collections.

It is hereby made the duty of the Tax Commissioner to supervise and enforce collections of all taxes that may be due under the provisions of sections 57-701 to 57-714.

Source:Laws 1955, c. 219, § 12, p. 613; Laws 1967, c. 351, § 8, p. 935.


57-713. Repealed. Laws 1983, LB 228, § 12.

57-714. Tax; delinquent; restrain severing resource; Attorney General; county attorney.

The Attorney General or the county attorney of the county wherein the natural resources are located may file a petition in the district court of such county, and upon such filing, such district court shall have the power to restrain by injunction any person from continuing to sever such oil products while delinquent in any report or the payment of any tax, penalty, or cost required under the provisions of sections 57-701 to 57-714.

Source:Laws 1955, c. 219, § 14, p. 614.


57-715. Repealed. Laws 1973, LB 527, § 2.

57-716. Producer; file certificate; contents.

The producer or a person designated by the producer shall, for each oil or natural gas producing property, file a certificate with the crude oil or natural gas purchaser and the Tax Commissioner which identifies the name and location of the oil or natural gas producing property, the property class, and the date upon which the property qualified for the class so certified. Such person shall notify the crude oil or natural gas purchaser and the Tax Commissioner of any changes in the property's classification.

Source:Laws 1983, LB 228, § 6.


57-717. Severance tax collection; Tax Commissioner; powers and duties; penalty.

(1) The Tax Commissioner shall establish procedures to insure that all severance taxes which are due are paid in full and in a timely manner and shall undertake to insure that all oil and natural gas producing property classifications are current and correct.

(2) If the Tax Commissioner is not satisfied with the return or returns of the tax or the amount of tax required to be paid to the state by any person, he or she may compute and determine the amount required to be paid upon the basis of the facts contained in the return or returns or upon the basis of any information within his or her possession or which may come into his or her possession. One or more deficiency determinations of the amount due for one or more than one period may be made. To the amount of the deficiency determination for each period shall be added a penalty equal to ten percent thereof. In making a determination, the Tax Commissioner may offset overpayments for any period, together with interest on the overpayments, against underpayments for any period, against penalties, and against interest on the underpayments. The interest on underpayments and overpayments shall be computed in the manner set forth in this section.

(3) If any person fails to make a return the Tax Commissioner shall make an estimate of the amount of severance tax due. The estimate shall be made for the period or periods in respect to which the person failed to make a return and shall be based upon any information which is in the Tax Commissioner's possession or may come into his or her possession. Upon the basis of this estimate, the Tax Commissioner shall compute and determine the amount required to be paid to the state, adding to the sum thus arrived at a penalty equal to ten percent thereof. One or more determinations may be made for one or more than one period.

(4) The amount of the determination of any deficiency, exclusive of penalties, shall bear interest at the rate specified in section 45-104.02, as such rate may from time to time be adjusted, from the last day of the month following the period for which the amount should have been returned until the date of payment.

(5) If any part of a deficiency for which a deficiency determination is made is the result of fraud or an intent to evade Chapter 57, article 7, or authorized rules and regulations, a penalty of twenty-five percent of the amount of the determination shall be added thereto.

(6) Promptly after making his or her determination, the Tax Commissioner shall give to the person written notice of his or her determination.

Source:Laws 1983, LB 228, § 7; Laws 1992, Fourth Spec. Sess., LB 1, § 7.


57-718. Tax Commissioner; enforcement; powers and duties; records; requirements.

(1) The Tax Commissioner shall enforce Chapter 57, article 7, and may prescribe, adopt, and enforce rules and regulations relating to the administration and enforcement of such article. The Tax Commissioner may prescribe the extent to which any ruling or regulation shall be applied without retroactive effect.

(2) The Tax Commissioner may employ accountants, auditors, investigators, assistants, and clerks necessary for the efficient administration of Chapter 57, article 7, and may delegate authority to his or her representatives to conduct hearings, prescribe regulations, or perform any other duties imposed by such article.

(3) Every person subject to Chapter 57, article 7, shall keep such records, receipts, invoices, and other pertinent papers in such form as the Tax Commissioner may require. Every such person shall keep such records for not less than three years from the making of such records unless the Tax Commissioner in writing sooner authorized their destruction.

(4) The Tax Commissioner or any person authorized in writing by him or her may examine the books, papers, records, and equipment of any person liable for the severance tax and may investigate the character of the business of the person in order to verify the accuracy of any return made, or, if no return is made by the person, to ascertain and determine the amount required to be paid.

(5) The taxpayer shall have the right to keep or store his or her records at a point outside this state and shall make his or her records available to the Tax Commissioner at all times.

Source:Laws 1983, LB 228, § 8.


57-719. Violations; penalties.

(1) Any person who willfully aids or assists in, or procures, counsels, or advises, the preparation or presentation of a false or fraudulent return, affidavit, claim, or document under or in connection with any matter arising under Chapter 57, article 7, shall, whether or not such falsity or fraud is with the knowledge or consent of the person authorized or required to present such return, affidavit, claim, or document, be guilty of a Class IV felony.

(2) Any person who violates or aids or abets in the violation of Chapter 57, article 7, except as otherwise provided, shall be guilty of a Class IV misdemeanor. In the case of a continuing violation, every day of violation shall be considered a separate offense.

(3) Any corporate officer or employee with the duty to pay taxes imposed upon a corporation or to perform some other act required of a corporation shall be personally liable under section 77-1783.01 for the payment of such taxes or penalties in the event of willful failure on his or her part to perform such act.

Source:Laws 1983, LB 228, § 9; Laws 1996, LB 1041, § 1.


57-801. Terms, defined.

As used in sections 57-801 to 57-820, unless the context otherwise requires:

(1) Person shall mean an individual, corporation, firm, partnership, limited liability company, or association;

(2) Owner shall mean a person or persons holding any interest, legal or equitable, in a leasehold interest held for oil or gas purposes or any pipeline, or his or her agent, and shall include purchasers under executory contract, receivers, trustees, guardians, executors, and administrators;

(3) Contract shall mean a contract, written or oral, express or implied, or partly express and partly implied, or executory or executed, or partly executory and partly executed;

(4) Material shall mean material, water, machinery, equipment, appliances, buildings, structures, tools, bits, or supplies but does not include rigs or hoists or their integral component parts except wire lines;

(5) Labor shall mean work performed in return for wages;

(6) Services shall mean work performed exclusive of labor, including the hauling of material, whether or not involving the furnishing of materials;

(7) Furnish shall mean sell or rent;

(8) Drilling shall mean drilling, digging, torpedoing, acidizing, cementing, completing, or repairing;

(9) Operating shall mean all operations in connection with or necessary to the production of oil or gas;

(10) Construction or constructing shall mean construction, maintenance, fabrication, or repair;

(11) Pipeline shall mean any pipeline laid and designed as a means of transporting natural gas, oil, or gasoline, or their components or derivatives, and the right-of-way therefor; and

(12) Original contractor shall mean any person for whose benefit a lien is prescribed by section 57-802.

Source:Laws 1957, c. 241, § 1, p. 807; Laws 1993, LB 121, § 352.


57-802. Leasehold interest; oil and gas operations; labor and material; lien.

Any person, who shall under contract with the owner of any leasehold interest held for oil or gas purposes or the owner of any pipeline perform any labor, furnish any material or services used or employed or furnished to be used or employed in the drilling or operating of any oil or gas well upon such leasehold interest or in the construction of any pipeline or in the constructing of any material so used, employed, or furnished to be used or employed, shall be entitled to a lien under sections 57-801 to 57-820. Any such person shall be entitled to such lien whether or not a producing well is obtained and whether or not such material is incorporated in or becomes a part of the completed oil well, gas well, or pipeline, for the amount due him for the performance of such labor or the furnishing of such material or services. This shall include, without limiting the generality of the foregoing, transportation and mileage charges connected therewith.

Source:Laws 1957, c. 241, § 2, p. 808.


Annotations

57-803. Lien; property covered.

Liens created under the provisions of section 57-802 shall extend to:

(1) The leasehold interest held for oil or gas purposes to which the materials or services were furnished, or for which the labor was performed, and the appurtenances thereunto belonging;

(2) All materials and fixtures owned by the owner or owners of such leasehold interest and used or employed, or furnished to be used or employed in the drilling or operating of any oil or gas well located thereon;

(3) All oil or gas wells located on such leasehold interest, and the oil or gas produced therefrom, and the proceeds thereof, exclusive of the interest therein owned by the owner of the underlying royalty or fee title; or

(4) The whole of the pipeline to which the materials or services were furnished, or for which labor was performed, and all buildings and appurtenances thereunto belonging. This shall include, without limiting the generality of the foregoing, gates, valves, pumps, pump stations, and booster stations, and all materials and fixtures owned by the owner or owners of such pipeline and used or employed or furnished to be used or employed in the construction thereof.

Source:Laws 1957, c. 241, § 3, p. 809.


57-804. Subcontractor; lien.

Any person, who shall under contract perform any labor or furnish any material or services as a subcontractor under an original contractor or for or to an original contractor or a subcontractor under an original contractor, shall be entitled to a lien upon all the property upon which the lien of an original contractor may attach to the same extent as an original contractor. The lien provided for in this section shall further extend and attach to all materials and fixtures owned by such original contractor or subcontractor to or for whom the labor is performed or material or services furnished and used or employed, or furnished to be used or employed in the drilling or operating of such oil or gas wells, or in the construction of such pipeline.

Source:Laws 1957, c. 241, § 4, p. 810.


57-805. Forfeiture of leasehold interest; effect; failure of equitable interest to ripen into legal title; effect.

If a lien provided for in sections 57-801 to 57-820 attaches to a leasehold interest, forfeiture of such leasehold interest shall not impair any lien as to material, appurtenances, and fixtures located thereon and to which such lien has attached prior to forfeiture. If a lien provided for in sections 57-801 to 57-820 attaches to an equitable interest or to a legal interest contingent upon the happening of a condition subsequent, failure of such interest to ripen into legal title or such condition subsequent to be fulfilled, shall not impair any lien as to material, appurtenances, and fixtures located thereon and to which such lien had attached prior to such failure.

Source:Laws 1957, c. 241, § 5, p. 810.


57-806. Notice of lien; how given; effect.

Anything in sections 57-801 to 57-820 to the contrary notwithstanding, any lien claimed by virtue of the provisions of sections 57-801 to 57-820 insofar as it may extend to oil or gas or the proceeds of the sale of oil or gas shall not be effective against any purchaser of such oil or gas until written notice of such claim has been delivered to such purchaser. Such notice shall state the name of the claimant, his address, the amount for which the lien is claimed, and a description of the leasehold interest upon which the lien is so claimed. Such notice shall be delivered personally to the purchaser or by registered or certified mail addressed to the purchaser. Until such notice is delivered as above provided, no such purchaser shall be liable to the claimant for any oil or gas produced from the leasehold interest upon which the lien is claimed or the proceeds thereof except to the extent of such part of the purchase price of such oil or gas or the proceeds thereof as may be owing by such purchaser at the time of delivery of such written notice. Such purchaser shall withhold payments for such oil or gas runs to the extent of the lien amount claimed until such delivery of notice in writing that the claim has been paid.

Source:Laws 1957, c. 241, § 6, p. 810.


57-807. Extent of liability of owner; payment after notice, effect; right of offset.

Nothing in sections 57-801 to 57-820 shall be deemed to fix a greater liability upon an owner in favor of any claimant under an original contractor than the amount for which the owner would be liable to the original contractor. The risk of all payments made to the original contractor shall be upon the owner after the receipt of notice that a lien is claimed and has been filed as herein provided by a person other than the original contractor. An owner shall not have the right to offset obligations of the original contractor unless such obligations arise out of the original contract.

Source:Laws 1957, c. 241, § 7, p. 811.


57-808. Lien; time of attaching.

The lien provided for in sections 57-801 to 57-820 arises on the date of the furnishing of the first item of material or services or the date of performance of the first labor. Upon compliance with the provisions of section 57-811, such lien shall be preferred to all other titles, charges, liens, or encumbrances which may attach to or upon any of the property upon which a lien is given by the provisions of sections 57-801 to 57-820 subsequent to the date the lien herein provided for arises.

Source:Laws 1957, c. 241, § 8, p. 811.


57-809. Lien; labor preferred over material.

All liens affixed by virtue of the provisions of sections 57-801 to 57-820 upon the same property shall be of equal standing except that liens of persons for the performance of labor shall be preferred to all other liens affixed by virtue of sections 57-801 to 57-820.

Source:Laws 1957, c. 241, § 9, p. 811.


57-810. Labor and materials deemed furnished under single contract; lapse of time; effect.

All labor performed or materials or services furnished by any person entitled to a lien under the provisions of sections 57-801 to 57-820 upon the same leasehold interest for oil and gas purposes or the same pipeline shall for the purposes of sections 57-801 to 57-820 be considered as having been performed or furnished under a single contract regardless of whether or not the same was performed or furnished at different times or on separate orders. Not more than four months shall however elapse between the date of performance of such labor or the date of furnishing such material or services and the date on which labor is next performed or materials or services are next furnished.

Source:Laws 1957, c. 241, § 10, p. 811.


57-811. Lien; filing; statement; contents.

Every person, claiming a lien under the provisions of sections 57-801 to 57-820, shall file in the office of the county clerk for the county in which the land identified with the leasehold interest, or pipeline, or some part thereof, is situated, a statement verified by an affidavit. This statement shall set forth the amount claimed and the items thereof, the dates on which labor was performed or material or services furnished, the name of the owner or owners of the leasehold interest or pipeline, if known, the name of the claimant and his mailing address, a description of the leasehold interest or pipeline, and if the claimant be a claimant under the provisions of section 57-804, the name of the person for whom the labor was immediately performed or the material or services were immediately furnished. The statement of lien must be filed within four months after the date on which the claimant's labor was last performed or his material or services were last furnished under a single contract as provided for in section 57-810.

Source:Laws 1957, c. 241, § 11, p. 812.


Annotations

57-812. Filing of statement; duties of county clerk; effect of filing; fee.

Immediately upon receipt of the statement of lien mentioned in section 57-811, the county clerk shall give such statement a file number and shall file the same and in addition shall enter a record of the same in a book kept by him or her for that purpose, to be called Oil and Gas Lien Record, which shall be ruled off into separate columns with headings as follows: File Number, When Filed, Name of Owner, Name of Claimant, Amount Claimed, Description of Land, and Remarks, and the county clerk shall make the proper entries under each column. The lien statement shall have the same force and effect as the timely filing of a construction lien with reference to real estate and secured transactions as provided in article 9, Uniform Commercial Code, insofar as personal property is concerned. The fee to be charged by the county clerk for the filing of such lien statement shall be two dollars.

Source:Laws 1957, c. 241, § 12, p. 812; Laws 1969, c. 461, § 2, p. 1611; Laws 1999, LB 550, § 39.    


57-813. Filing of bond; procedure; effect.

(1) Whenever any lien or liens shall be fixed or attempted to be fixed under the provisions of sections 57-801 to 57-820 then the owner or owners of the property on which the lien or liens are claimed or the contractor or subcontractor through whom such lien or liens are claimed, or either of them, may file a bond with the county clerk of the county in which the property is located. Such bond shall describe the property on which the lien or liens are claimed, shall refer to the lien or liens claimed in manner sufficient to identify them and shall be in double the amount of the claimed lien or liens referred to and shall be payable to the party or parties claiming same. Such bond shall be executed by the party filing the same as principal and by a corporate surety authorized to execute such bonds as surety in the State of Nebraska. It shall be conditioned substantially that the principal and surety will pay to the obligees named or their assigns the amounts of the liens so claimed by them with all costs in the event same shall be proven to be liens on such property.

(2) Upon the filing of such bond, the county clerk shall send a notice thereof, to all obligees named therein, by registered or certified mail addressed to such obligees at the address set forth in their respective claims for lien.

(3) Such bond, when filed, and such notice, when mailed, shall be recorded by the county clerk in the Oil and Gas Lien Record, and any purchaser or lender may rely upon the record of such bond and notice in acquiring any interest in said property and shall be protected absolutely thereby.

(4) Such bond, when filed, shall take the place of the property against which any claim for lien referred to in such bond is asserted. At any time within the period of time provided in section 57-814, any person claiming such lien may sue upon such bond but no action shall be brought upon such bond after the expiration of such period. One action upon the bond shall not exhaust the remedies thereon but each obligee or assignee of an obligee named therein may maintain a separate suit thereon in any court having jurisdiction.

Source:Laws 1957, c. 241, § 13, p. 813.


57-814. Lien; enforcement by civil action; statute of limitations.

Any lien provided for by the provisions of sections 57-801 to 57-820 may be enforced by civil action in the district court of the county in which the land identified with such leasehold interest, or pipeline, or some part thereof, is situated. Such action shall be brought within two years from the time of the filing of the lien statement as provided for in section 57-811.

Source:Laws 1957, c. 241, § 14, p. 814.


57-815. Actions; parties; defense; retention of funds.

In such actions all persons whose liens are filed as herein provided and other encumbrancers may be made parties and the issues shall be made and the trials shall be conducted as in other civil cases. Where such action is brought by any person other than an original contractor, the original contractor through whom such person claims a lien shall be made a party defendant and shall at his own expense defend against the claim and if the contractor fails to make such defense, the owner may make the same at the expense of such original contractor. Until all claims, costs, and expenses are finally adjudicated and defeated or satisfied, the owner shall be entitled to retain from the original contractor the amount thereof.

Source:Laws 1957, c. 241, § 15, p. 814.


57-816. Actions; consolidation; intervention.

If several actions brought to enforce liens under the provisions of sections 57-801 to 57-820 on the same property be pending at the same time, the court may order them to be consolidated. Any claimant having filed his statement of lien as provided by the provisions of sections 57-801 to 57-820 shall be entitled to intervene in any pending action brought to enforce a lien on the same property.

Source:Laws 1957, c. 241, § 16, p. 814.


57-817. Lien; removal of property; consent of holder of lien required.

When any lien provided for by sections 57-801 to 57-820 shall have attached to the property covered thereby, it shall be unlawful for any person to remove such property, or any part thereof, or cause the same to be removed from the premises where located at the time such lien attached or otherwise dispose of the same without the written consent of the holder of such lien.

Source:Laws 1957, c. 241, § 17, p. 814.


57-818. Judgments; sale under execution.

In all cases where judgment may be rendered in favor of any person to enforce a lien under the provisions of sections 57-801 to 57-820, the leasehold interest, pipeline, or other property shall be ordered to be sold as in other cases of sales of real estate.

Source:Laws 1957, c. 241, § 18, p. 815.


57-819. Applicability of sections; liens granted prior to September 20, 1957; filing; enforcement; validity.

All liens granted by the provisions of sections 57-801 to 57-820 shall be perfected and enforced in accordance with the provisions of sections 57-801 to 57-820 whether such liens arise before or after September 20, 1957. Any unperfected lien granted under any statute in effect prior to September 20, 1957, and which could be subsequently perfected in accordance with such prior statute were it not for the existence of sections 57-801 to 57-820 may be perfected and enforced in accordance with the provisions hereof if the statement of lien required to be filed under section 57-811 is filed within the time therein required or within two months after September 20, 1957, whichever period is longer. The validity of any lien perfected prior to September 20, 1957, in accordance with the requirements of any statute in effect prior to such date shall be determined on the basis of such prior statute but the enforcement thereof shall, insofar as possible, be governed by the provisions of sections 57-801 to 57-820.

Source:Laws 1957, c. 241, § 19, p. 815.


57-820. Act, how cited.

Sections 57-801 to 57-820 shall be known and may be cited as the Oil and Gas Lien Act.

Source:Laws 1957, c. 241, § 21, p. 815.


57-901. Development of oil and natural gas; purpose.

The purpose of sections 57-901 to 57-923 is to permit the development of Nebraska's oil and natural gas resources up to the maximum efficient rate of production while promoting the health, safety, and environment of the residents of Nebraska. It is the public policy of the state and in the public interest to encourage responsible development, production, and utilization of oil and gas natural resources and their products, to prevent waste, to protect the correlative rights of all owners, to encourage and authorize cycling, recycling, pressure maintenance, and secondary recovery operations to obtain the most efficient recovery of oil and gas resources for the highest benefit of landowners, royalty owners, producers, and the general public, and to facilitate open communication with and the participation of the general public and affected local governmental entities.

Source:Laws 1959, c. 262, § 1, p. 900; Laws 2016, LB1082, § 1.    
Effective Date: July 21, 2016


Annotations

57-902. Waste of oil and gas; prohibited.

Waste of oil and gas, or either of them, as defined in section 57-903, is prohibited in the State of Nebraska.

Source:Laws 1959, c. 262, § 2, p. 901.


57-903. Oil and gas; terms, defined.

As used in sections 57-901 to 57-921, unless the context otherwise requires:

(1)(a) Waste, as applied to oil, shall include underground waste, inefficient, excessive, or improper use, or dissipation of reservoir energy, including gas energy and water drive, surface waste, open pit storage, and waste incident to the production of oil in excess of the producer's aboveground storage facilities and lease and contractual requirements, but excluding storage, other than open pit storage, reasonably necessary for building up or maintaining crude stocks and products thereof for consumption, use, and sale; (b) waste, as applied to gas shall include (i) the escape, blowing, or releasing, directly or indirectly, into the open air of gas from wells productive of gas only, or gas from wells producing oil or both oil and gas and (ii) the production of gas in quantities or in such manner as will unreasonably reduce reservoir pressure or unreasonably diminish the quantity of oil or gas that might ultimately be produced, but excluding gas that is reasonably necessary in the drilling, completing, testing, and producing of wells and gas unavoidably produced with oil if it is not economically feasible for the producer to save or use such gas; and (c) waste shall also mean the abuse of the correlative rights of any owner in a pool due to nonuniform, disproportionate, unratable, or excessive withdrawals of oil or gas therefrom causing reasonably avoidable drainage between tracts of land or resulting in one or more owners in such pool producing more than his or her just and equitable share of the oil or gas from such pool;

(2) Commission shall mean the Nebraska Oil and Gas Conservation Commission;

(3) Person shall mean any natural person, corporation, association, partnership, limited liability company, receiver, trustee, executor, administrator, guardian, fiduciary, or other representative of any kind and any department, agency, or instrumentality of the state or of any governmental subdivision thereof;

(4) Oil shall mean crude petroleum oil and other hydrocarbons regardless of gravity which are produced at the wellhead in liquid form and the liquid hydrocarbons known as distillate or condensate recovered or extracted from gas other than gas produced in association with oil and commonly known as casing-head gas;

(5) Gas shall mean all natural gas and all other fluid hydrocarbons not defined as oil;

(6) Pool shall mean an underground reservoir containing a common accumulation of oil or gas or both, each zone of the structure which is completely separated from any other zone in the same structure is a pool as that term is used in sections 57-901 to 57-921;

(7) Field shall mean the general area underlaid by one or more pools;

(8) Owner shall mean the person who has the right to drill into and produce from a pool and to appropriate the oil or gas he or she produces therefrom either for himself or herself or for himself or herself and others;

(9) Producer shall mean the owner of a well or wells capable of producing oil or gas or both or any person who owns and operates a lease, or a unit of producing leases in which other persons own interests, with respect to such well or wells;

(10) Correlative rights shall mean the opportunity afforded to the owner of each property in a pool to produce, so far as it is reasonably practicable to do so without waste, his or her just and equitable share of the oil or gas, or both, in the pool; and

(11) The word and shall include the word or, and the word or shall include the word and.

Source:Laws 1959, c. 262, § 3, p. 901; Laws 1983, LB 228, § 5; Laws 1983, LB 224, § 7; Laws 1993, LB 121, § 353; Laws 2016, LB1082, § 2.    
Effective Date: July 21, 2016


Annotations

57-904. Nebraska Oil and Gas Conservation Commission; members; qualifications; appointment; term; quorum; vacancy; compensation.

There is hereby established the Nebraska Oil and Gas Conservation Commission. The commission shall consist of three members to be appointed by the Governor. The director of the state geological survey shall serve the commission in the capacity as its technical advisor, but with no power to vote. Any two commissioners shall constitute a quorum for all purposes. At least one member of the commission shall have had experience in the production of oil or gas and shall have resided in the State of Nebraska for at least one year. Each of the other members of the commission shall have resided in the State of Nebraska for at least three years. Initially, two of said members shall be appointed for a term of two years each; and one shall be appointed for a term of four years. At the expiration of the initial terms all members thereafter appointed shall serve for a term of four years. The Governor may at any time remove any appointed member of the commission for cause, and by appointment, with the approval of the Legislature, shall fill any vacancy on the commission. The members of the commission shall receive as compensation for their services the sum of fifty dollars per day for each day actually devoted to the business of the commission; Provided, that they shall not receive a sum in any one year in excess of two thousand dollars each. In addition, each member of the commission shall be reimbursed for his or her actual and necessary traveling and other expenses incurred in connection with the carrying out of his or her duties as provided in sections 81-1174 to 81-1177 for state employees.

Source:Laws 1959, c. 262, § 4, p. 902; Laws 1979, LB 90, § 1; Laws 1981, LB 204, § 99.


57-905. Commission; powers and duties.

(1) The commission shall have jurisdiction and authority over all persons and property, public and private, necessary to enforce effectively the provisions of sections 57-901 to 57-921.

(2) The commission shall have authority, and it is its duty, to make such investigations as it deems proper to determine whether waste exists or is imminent or whether other facts exist which justify action by the commission.

(3) The commission shall have authority to require: (a) Identification of ownership of oil or gas wells, producing leases, tanks, plants, structures, and facilities for the production of oil and gas; (b) the making and filing of directional surveys, and reports on well location, drilling, and production within six months after the completion or abandonment of the well; (c) the drilling, casing, operating, and plugging of wells in such manner as to prevent the escape of oil or gas out of one stratum into another, the intrusion of water into oil or gas strata, the pollution of fresh water supplies by oil, gas, or salt water, and to prevent blowouts, cave-ins, seepages, and fires; (d) the furnishing of a reasonable bond with good and sufficient surety, conditioned for the performance of the duty to comply with all the provisions of the laws of the State of Nebraska and the rules, regulations, and orders of the commission; (e) that the production from wells be separated into gaseous and liquid hydrocarbons, and that each be accurately measured; (f) the operation of wells with efficient gas-oil and water-oil ratios, and to fix these ratios; (g) metering or other measuring of oil, gas, or product in pipelines or gathering systems; (h) that every person who produces or purchases oil or gas in this state shall keep and maintain or cause to be kept and maintained for a five-year period complete and accurate records of the quantities thereof, which records shall be available for examination by the commission or its agents at all reasonable times, and that every such person file with the commission such reports as it may reasonably prescribe with respect to such oil or gas or the products thereof; (i) that upon written request of any person, geologic information, well logs, drilling samples, and other proprietary information filed with the commission in compliance with sections 57-901 to 57-921, or any rule, regulation, or order of the commission, may be held confidential for a period of not more than twelve months; (j) periodic sampling and reporting of injection fluids injected into Class II commercial underground injection wells; (k) monitoring of produced water transporters; and (l) periodic evaluation of financial assurance requirements on existing and proposed wells to ensure ability to pay the costs of plugging, abandonment, and surface restoration.

(4) The commission is authorized to conduct public informational meetings and forums for public interaction on Class II commercial underground injection well permit applications under the jurisdiction of the commission.

(5) The commission shall have authority in order to prevent waste, to regulate: (a) The drilling, producing and plugging of wells, or test holes, and all other operations for the production of oil or gas; (b) the shooting and chemical treatment of wells; (c) the spacing of wells; (d) operations to increase ultimate recovery such as, but without limitation, the cycling of gas, the maintenance of pressure, and the introduction of gas, water, or other substances into producing formations; and (e) disposal of oilfield wastes, including salt water.

(6) The commission shall not have authority to limit the production of oil or gas, or both, from any pool or field except to prevent waste therein.

(7) The commission shall have authority to classify wells as oil or gas wells for purposes material to the interpretation or enforcement of the provisions of sections 57-901 to 57-921.

(8) The commission shall have authority to promulgate and to enforce rules, regulations, and orders to effectuate the purposes and the intent of sections 57-901 to 57-921.

(9) The commission, with the approval of the Governor, shall have authority to establish and maintain its principal office and its books, papers, and records at such place in the state as it shall determine. The commission shall not have authority to purchase its principal office quarters.

(10) The commission shall have authority to require that all wells drilled for oil and gas shall be adequately logged with mechanical-electrical logging devices, and to require the filing of logs.

(11) The commission shall have the authority to regulate the drilling and plugging of seismic and stratigraphic tests in oil and gas exploration holes.

(12) The commission shall have the authority to act as the state jurisdictional agency pursuant to the federal Natural Gas Policy Act of 1978, Public Law 95-621, 92 Stat. 3350.

(13) The commission shall have the authority to have one or more examiners, who are employees of the commission, conduct any of its hearings, investigations, and examinations authorized by sections 57-901 to 57-921. Such examiner may exercise the commission's powers including, but not limited to, the taking of evidence and testimony under oath, resolving questions of fact and questions of law, and the entering of an order. Such order shall be entered in the commission's order journal. Any person having an interest in property affected by an order issued by an examiner and who is dissatisfied with such order may appeal to the commission by filing a petition on appeal to the commission within fifteen days of the entering of the examiner's order. Such person shall provide notice to all interested persons by personal service or registered or certified United States mail with return receipt, requiring such parties to answer within fifteen days from the date of service. Upon appeal, the commission shall hear the case de novo on the record and shall not be bound by any conclusions of the examiner. The commission shall hold a hearing on the appeal within forty-five days of the filing of an appeal to the commission and issue its order within fifteen days after the hearing. The commission shall review all orders issued by an examiner that are not appealed and issue an order concerning the examiner's order within sixty days after the examiner's order. The commission shall adopt, amend, or reject the examiner's order. Any order of an examiner which is not appealed to the commission and which the commission adopts shall not be appealable to the district court unless the commission adopts an order before the end of the time for appeal to the commission.

(14) The commission shall require, upon receipt of a Class II commercial underground injection well permit application, that notice be provided to the county, city, or village and natural resources district within which the proposed well would be located and shall provide such county, city, or village and natural resources district with copies of all permit application materials.

Source:Laws 1959, c. 262, § 5, p. 903; Laws 1961, c. 277, § 1, p. 811; Laws 1961, c. 278, § 1, p. 813; Laws 1967, c. 352, § 1, p. 936; Laws 1971, LB 355, § 1; Laws 1978, LB 661, § 2; Laws 1979, LB 56, § 1; Laws 1980, LB 709, § 2; Laws 1983, LB 356, § 1; Laws 2016, LB1082, § 3.    
Effective Date: July 21, 2016


Annotations

57-905.01. Operator of Class II commercial underground injection well; duties.

An operator of a Class II commercial underground injection well shall sample and analyze the fluids injected into each disposal well at sufficiently frequent time intervals to yield data representative of fluid characteristics, but no less frequently than once annually. The operator shall submit a copy of the fluid analysis to the commission.

Source:Laws 2016, LB1082, § 4.    
Effective Date: July 21, 2016


57-906. Oil and gas; drilling permit; abandonment permit; fee.

(1) It shall be unlawful to commence operations for the drilling of a well for oil or gas without first giving to the commission notice of intention to drill, and without first obtaining a permit from the commission, under such rules and regulations as may be reasonably prescribed by the commission, and by paying to the commission a fee of two hundred dollars for each such permit.

(2) It shall be unlawful to commence operations for the abandonment of a well with production casing in the hole without first giving to the commission notice of intention to abandon and without first obtaining the approval of the commission for such abandonment and paying to the commission a fee of one hundred dollars.

Source:Laws 1959, c. 262, § 6, p. 905; Laws 1967, c. 353, § 1, p. 938; Laws 1974, LB 804, § 1; Laws 1995, LB 407, § 1.


Annotations

57-907. Commission; limitation on production; duties.

(1) The commission shall limit the production of oil and gas from each pool to that amount which can be produced without waste in such pool.

(2) Whenever the commission limits the total amount of oil and gas which may be produced in any pool in this state to an amount less than that amount which the pool could produce if no restriction was imposed, the commission shall allocate or distribute the allowable production among the several wells or producing properties in the pool on a reasonable basis, preventing or minimizing reasonably avoidable drainage from each developed area not equalized by counterdrainage, so that each property will have the opportunity to produce or to receive its just and equitable share, subject to the reasonable necessities for the prevention of waste.

(3) The commission shall give due regard to the fact that gas produced from oil pools is to be regulated in a manner as will protect the reasonable use of its energy for oil production.

(4) Each person now or hereafter purchasing or taking for transportation oil or gas from any owner or producer shall purchase or take ratably without discrimination in favor of any owner or producer in the same common source of supply offering to sell his oil or gas produced therefrom to such person or offering it to him for transportation.

Source:Laws 1959, c. 262, § 7, p. 905.


Annotations

57-908. Commission; spacing units; establish.

(1) When required to prevent waste, to avoid the drilling of unnecessary wells, or to protect correlative rights, the commission shall establish spacing units for a pool, except in those pools which, prior to September 28, 1959, have been developed to such an extent that it would be impracticable or unreasonable to establish spacing units at the existing state of development. Spacing units when established shall be of substantially uniform size and shape for the entire pool, except that when found to be necessary for any of the purposes above mentioned, the commission is authorized to divide any pool into zones and establish spacing units for each zone, which units may differ in size and shape from those established in any other zone.

(2) The size and the shape of spacing units are to be such as will result in the efficient and economical development of the pool as a whole, and that size shall be the area that can be efficiently and economically drained by one well.

(3) An order establishing spacing units for a pool shall specify the size and shape of each unit and the location of the permitted well thereon in accordance with a reasonably uniform spacing plan. Upon application of the person entitled to drill and after hearing, if the commission finds that a well drilled at the prescribed location would not produce in paying quantities, or that surface conditions would substantially add to the burden or hazard of drilling such well, the commission is authorized to enter an order permitting the well to be drilled at a location other than that prescribed by such spacing order; Provided, the commission shall include in the order suitable provisions to prevent the production from the spacing unit of more than its just and equitable share of the oil and gas in the pool.

(4) An order establishing units for a pool shall cover all lands determined or believed to be underlaid by such pool, and may be changed or modified by the commission from time to time, when found necessary for the prevention of waste, or to avoid the drilling of unnecessary wells, or to protect correlative rights.

Source:Laws 1959, c. 262, § 8, p. 906.


Annotations

57-909. Spacing unit; pooling of interests; order of commission; provisions for drilling and operation; costs; determination; recording.

(1) When two or more separately owned tracts are embraced within a spacing unit or when there are separately owned interests in all or part of the spacing unit, then the owners and royalty owners thereof may pool their interests for the development and operation of the spacing unit. In the absence of voluntary pooling, the commission, upon the application of any interested person, or upon its own motion, may enter an order pooling all interests in the spacing unit for the development and operation thereof. Each such pooling order shall be made only after notice and hearing and shall be upon terms and conditions that are just and reasonable and that afford to the owner of each tract or interest in the spacing unit the opportunity to recover or receive, without unnecessary expense, his or her just and equitable share. Operations incident to the drilling of a well upon any portion of a spacing unit covered by a pooling order shall be deemed, for all purposes, the conduct of such operations upon each separately owned tract in the drilling unit by the several owners thereof. That portion of the production allocated to each tract included in a spacing unit covered by a pooling order shall, when produced, be deemed for all purposes to have been produced from such tract by a well drilled thereon.

(2) Each such pooling order shall make provision for the drilling and operation of the authorized well on the spacing unit and for the payment of the reasonable actual cost thereof, including a reasonable charge for supervision. As to each owner who refuses to agree upon the terms for drilling and operating the well, the order shall provide for reimbursement for his or her share of the costs out of, and only out of, production from the unit representing his or her interest, excluding royalty or other interest not obligated to pay any part of the cost thereof. In the event of any dispute as to such cost, the commission shall determine the proper cost. The order shall determine the interest of each owner in the unit and may provide in substance that, as to each owner who agrees with the person or persons drilling and operating the well for the payment by the owner of his or her share of the costs, such owner, unless he or she has agreed otherwise, shall be entitled to receive, subject to royalty or similar obligations, the share of the production of the well applicable to the tract of the consenting owner; and as to each owner who does not agree, he or she shall be entitled to receive from the person or persons drilling and operating such well on the unit his or her share of the production applicable to his or her interest, after the person or persons drilling and operating such well have recovered, depending on the total measured depth of the well, three hundred percent for wells less than five thousand feet deep, four hundred percent for wells five thousand feet deep but less than six thousand five hundred feet deep, and five hundred percent for wells six thousand five hundred feet deep or deeper, of that portion of the costs and expenses of staking, well site preparation, drilling, reworking, deepening or plugging back, testing, completing, and other intangible expenses approved by the commission chargeable to each owner who does not agree, and, depending on the total measured depth of the well, two hundred percent for wells less than five thousand feet deep, three hundred percent for wells five thousand feet deep but less than six thousand five hundred feet deep, and five hundred percent for wells six thousand five hundred feet deep or deeper, of all equipment including wellhead connections, casing, tubing, packers, and other downhole equipment and surface equipment, including, but not limited to, stock tanks, separators, treaters, pumping equipment, and piping, plus one hundred percent of the nonconsenting owner's share of the cost of operation and a reasonable rate of interest on the unpaid balance. For the purpose of this section, the owner or owners of oil and gas rights in and under an unleased tract of land shall be regarded as a lessee to the extent of a seven-eighths interest in and to such rights and a lessor to the extent of the remaining one-eighth interest therein.

(3) A certified copy of the order may be filed for record with the county clerk or register of deeds of the county, as the case may be, where the property involved is located, which recording shall constitute constructive notice thereof. The county clerk, or register of deeds, as the case may be, shall record the same in the real property records of the county and shall index the same against the property affected.

Source:Laws 1959, c. 262, § 9, p. 907; Laws 1978, LB 447, § 1; Laws 2011, LB458, § 1.    


Annotations

57-910. Unit or cooperative development; plans and agreements; authorization; not violations of law; approval by commission; effect.

Plans and agreements for the unit or cooperative development and operation of a field or pool, or a part of either, including those in connection with the conduct of repressuring or pressure maintenance operations, cycling or recycling operations, including the extraction and separation of liquid hydrocarbons from natural gas in connection therewith, water floods or any other method of operation, are authorized and may be performed, and shall not be held or construed to violate any of the statutes of this state relating to trusts, monopolies, or contracts and combinations in restraint of trade, if the plans and agreements are in the public interest, protective of correlative rights, and reasonably necessary to increase ultimate recovery or to prevent waste of oil or gas. If any such plan or agreement has been approved by the commission and an order authorizing unit operations has been entered by it pursuant to notice and hearing as provided in sections 57-910 to 57-910.12, it shall bind not only the persons who have executed such plan or agreement, but also all persons owning interests in oil and gas within the unit area.

Source:Laws 1959, c. 262, § 10, p. 908; Laws 1965, c. 343, § 1, p. 975.


57-910.01. Unit or cooperative development; application for order for unit operation; contents.

Any owner may file an application with the commission requesting an order for the unit operation of a pool, pools, or parts thereof and for the pooling of the interests in the oil and gas in the proposed unit area for the purpose of conducting such unit operation. The application shall contain:

(1) A description of the land and pool, pools, or parts thereof to be so operated, termed the unit area;

(2) The names of all persons owning or having an interest in the oil and gas in the proposed unit area or the production therefrom, including mortgagees and the owners of other liens or encumbrances, as disclosed by the public records in the county in which the unit area is situated and their addresses, if known. If the name or address of any person is unknown, the application shall so indicate;

(3) A statement of the type of the operations contemplated in order to effectuate the purposes of sections 57-910 to 57-910.12;

(4) A proposed plan of unitization applicable to the proposed unit area which the petitioner considers fair, reasonable, and equitable; and

(5) A proposed operating plan covering the manner in which the unit will be supervised and managed and costs allocated and paid, unless all owners within the unit area have already executed an operating agreement covering such supervision, management, and allocation and payment of costs.

Source:Laws 1965, c. 343, § 2, p. 976.


57-910.02. Unit or cooperative development; hearing; notice.

Upon filing of an application for an order providing for the unit operation of a pool, pools, or part thereof, and for the pooling of the interests in the oil and gas in the proposed unit area, the commission shall promptly set the matter for hearing and in addition to the notice otherwise required by section 57-911 or the commission rules shall cause notice of the hearing to be given by certified mail at least fifteen days prior to the date of hearing to all persons whose names are required to be set forth in such application.

Source:Laws 1965, c. 343, § 3, p. 976; Laws 1967, c. 354, § 1, p. 939.


57-910.03. Unit or cooperative development; findings required; entry of order; written consents required; revocation of order.

If after considering the application and hearing the evidence offered in connection therewith the commission finds that:

(1) The material averments of the application are true;

(2) Such unit operation is feasible, will prevent waste, and can reasonably be expected to increase substantially the ultimate recovery of oil or gas, or both;

(3) The value of the estimated additional recovery of oil or gas will exceed the estimated additional costs incident to conducting unit operations;

(4) The oil and gas allocated to each separately owned tract within the unit area under the proposed plan of unitization represents, so far as can be practicably determined, each such tract's just and equitable share of the oil and gas, or both, in the unit area; and

(5) In case there are owners who have not executed an operating agreement or agreed to the proposed operating plan, that such proposed operating plan:

(a) Makes a fair and equitable adjustment among the owners within the unit area for their respective investments in wells, tanks, pumps, machinery, materials, and equipment which are contributed to the unit operation;

(b) Provides for a fair and equitable determination of the cost of unit operations, including capital investment, and establishes a fair and equitable method for allocating such costs to the separately owned tracts and for payment of such costs by the owners of such tracts, either directly or out of such owner's respective shares of unit production;

(c) Establishes, if necessary, a fair and equitable method for carrying or otherwise financing any owner who elects to be carried, or otherwise financed, allowing a reasonable interest charge for such service payable out of such owner's share of the unit production; and

(d) Provides that each owner shall have a vote in the supervision and conduct of unit operations corresponding to the percentage of the costs of unit operations chargeable against the interest of such owner; then the commission shall enter an order setting forth such findings and approving the proposed plan of unitization and proposed operating plan, if any. No order shall be entered by the commission authorizing the commencement of unit operations unless and until there has been written consent to the proposed plan of unitization by those persons who own at least seventy-five percent of the unit production or proceeds thereof and to the proposed operating plan, if any, by those persons who will be required to pay at least sixty-five percent of the costs of the unit operation. If such consent has not been obtained at the time the order of approval is made, the commission shall, upon application, hold such supplemental hearings and make such findings as may be required to determine if there has been such consent so that a supplemental order authorizing the commencement of unit operations can be entered. Notice of any such supplemental hearing shall be given, by mail to each person who has previously entered his or her appearance, at least ten days prior to such supplemental hearing. If the required percentages of consent have not been obtained within a period of six months from the date on which the order of approval is made, such order shall be ineffective and shall be revoked by the commission unless, for good cause shown, the commission extends that time.

Source:Laws 1965, c. 343, § 4, p. 977; Laws 1967, c. 355, § 1, p. 942; Laws 1984, LB 1032, § 1.


Annotations

57-910.04. Repealed. Laws 1984, LB 1032, § 2.

57-910.05. Unit or cooperative development; order for unit operation; allocation of unit production.

Upon application by an owner the commission, by order, may, in the same manner and subject to the same conditions as in an original order, provide for the unit operation of a pool or pools, or parts thereof, that embrace a unit area established by a previous order of the commission. Such order, in providing for the allocation of unit production, shall first treat the unit area previously established as a single tract, and the portion of the unit production so allocated thereto shall then be allocated among the separately owned tracts included in such previously established unit area in the same proportions as those specified in the previous order.

Source:Laws 1965, c. 343, § 6, p. 979.


57-910.06. Unit or cooperative development; operations upon any portion of unit area; effect.

All operations, including, but not limited to, the commencement, drilling, or operation of a well upon any portion of the unit area shall be deemed for all purposes the conduct of such operations upon each separately owned tract in the unit area by the several owners thereof. The portion of the unit production allocated to a separately owned tract in a unit area shall, when produced, be deemed, for all purposes, to have been actually produced from such tract by a well drilled thereon. Operations conducted pursuant to an order of the commission providing for unit operations shall constitute a fulfillment of all the express or implied obligations of each lease or contract covering lands in the unit area to the extent that compliance with such obligations cannot be had because of the orders of the commission.

Source:Laws 1965, c. 343, § 7, p. 979.


57-910.07. Unit or cooperative development; unit production; allocation; property of several owners.

The portion of the unit production allocated to any tract, and the proceeds from the sale thereof, shall be the property and income of the several persons to whom, or to whose credit, the same are allocated or payable under the order providing for unit operations.

Source:Laws 1965, c. 343, § 8, p. 980.


57-910.08. Unit or cooperative development; division orders; no termination by commission.

No division order or other contract relating to the sale or purchase of production from a separately owned tract shall be terminated by any commission order, but shall remain in force and apply to oil and gas allocated to such tract until terminated in accordance with the provisions thereof.

Source:Laws 1965, c. 343, § 9, p. 980.


57-910.09. Unit or cooperative development; commission order not to result in transfer of title.

Except to the extent that the parties affected so agree, no commission order shall be construed to result in a transfer of all or any part of the title of any person to the oil and gas rights in any tract in the unit area.

Source:Laws 1965, c. 343, § 10, p. 980.


57-910.10. Unit or cooperative development; lien of operator; establishment and enforcement; effect on nonconsenting owner.

Subject to the limitations set forth in sections 57-910 to 57-910.12, and to such further limitations as may be set forth in the plan of unitization and operating plan, the operator of the unit shall have a first and prior lien for costs incurred pursuant to the plan of unitization and operating plan upon each owner's oil and gas rights and his share of unitized production to secure the payment of such owner's proportionate part of the cost of developing and operating the unit area. The lien may be established and enforced in the same manner as is provided by sections 57-801 to 57-820. For such purposes any nonconsenting owner shall be deemed to have contracted with the unit operator for his proportionate part of the cost of developing and operating the unit area.

Source:Laws 1965, c. 343, § 11, p. 980.


Annotations

57-910.11. Unit or cooperative development; owner of land not subject to lease; obligation to pay share of costs of unit operation; effect.

Notwithstanding any provisions in sections 57-910 to 57-910.12 to the contrary, any person who owns an oil or gas interest within the unit area in a tract which is not subject to an oil and gas lease or similar contract shall be deemed, for purposes of this section, an owner obligated to pay costs of unit operations to the extent of seven-eighths of such interest and shall be deemed a royalty owner to the extent of one-eighth of such interest free from such costs.

Source:Laws 1965, c. 343, § 12, p. 980.


57-910.12. Unit or cooperative development; certified order of commission; recording; effect as notice.

A certified copy of any order of the commission entered under any provisions of sections 57-910 to 57-910.12 shall be entitled to be recorded in the office of the register of deeds for the counties where all or any portion of the unit area is located, and such recordation shall constitute notice thereof to all persons.

Source:Laws 1965, c. 343, § 13, p. 981.


57-911. Commission; rules and regulations; filing fee.

(1) The commission shall prescribe rules and regulations governing the practice and procedure before the commission.

(2) No rule, regulation, or order, or amendment thereof, except in an emergency, shall be made by the commission without a public hearing upon at least fifteen days' notice. The public hearing shall be held at such time and place as may be prescribed by the commission, and any interested person shall be entitled to be heard.

(3) When an emergency requiring immediate action is found to exist, the commission is authorized to issue an emergency order without notice or hearing which shall be effective upon promulgation. No emergency order shall remain effective for more than twenty days.

(4) Any notice required by the provisions of sections 57-901 to 57-921, except in proceedings involving a direct complaint by the commission, shall be given at the election of the commission either by personal service, registered or certified mail, or one publication in a newspaper of general circulation in the county where the land affected, or some part thereof, is situated. The notice shall be issued in the name of the state, shall be signed by a member of the commission or its secretary, and shall specify the style and number of the proceedings, the time and place of the hearing, and the purpose of the proceeding. Should the commission notice be by personal service, such service may be made by any officer authorized to serve summons, or by any agent of the commission, in the same manner and extent as is provided by law for the service of summons in civil actions in the district courts of this state. Proof of the service by such agent shall be by his or her affidavit and proof of service by an officer shall be in the form required by law with respect to service of process in civil actions. In all cases where a complaint is made by the commission or the Director of the Nebraska Oil and Gas Conservation Commission that any part of any provision of sections 57-901 to 57-921, or any rule, regulation, or order of the commission is being violated, notice of the hearing to be held on such complaint shall be served on the interested parties in the same manner as is provided in the code of civil procedure for the service of process in civil actions in the district courts of this state. In addition to notices required by this section, the commission may provide for further notice of hearing in such proceedings as it may deem necessary in order to notify all interested persons of the pendency of such proceedings and the time and place of hearing and to afford such persons an opportunity to appear and be heard.

(5) All rules, regulations, and orders issued by the commission shall be in writing, shall be entered in full and indexed in books to be kept by the commission for that purpose, shall be public records open for inspection at all times during reasonable office hours, and shall be filed as provided by the Administrative Procedure Act. A copy of any rule, regulation, or order certified by any member of the commission, or its secretary, under its seal, shall be received in evidence in all courts of this state with the same effect as the original.

(6) The commission may act upon its own motion or upon the petition of any interested person. On the filing of a petition concerning any matter within the jurisdiction of the commission, the commission shall promptly fix a date for a hearing thereon, and shall cause notice of the hearing to be given. The hearing shall be held without undue delay after the filing of the petition. The commission shall enter its order within thirty days after the hearing.

(7) A petition filed with the commission for a public hearing shall be accompanied by a filing fee of two hundred fifty dollars.

Source:Laws 1959, c. 262, § 11, p. 908; Laws 1961, c. 279, § 1, p. 816; Laws 1967, c. 354, § 2, p. 939; Laws 1967, c. 356, § 1, p. 944; Laws 1995, LB 407, § 2; Laws 2016, LB1082, § 5.    
Effective Date: July 21, 2016


Cross References

Annotations

57-912. Commission; witnesses; power of subpoena; failure to appear or testify; contempt.

(1) The commission shall have the power to summon witnesses, to administer oaths and to require the production of records, books and documents for examination at any hearing or investigation conducted by it. Any oral or documentary evidence may be received, but the commission shall as a matter of policy provide for the exclusion of irrelevant, immaterial or unduly repetitious evidence, and no decision shall be rendered, sanction imposed or rule or order issued except on consideration of the whole record or such portions thereof as may be cited by any party and as supported by and in accordance with a preponderance of the reliable probative and substantial evidence. Every party shall have the right to present his case or defense by oral or documentary evidence, to submit rebuttal evidence, and to conduct such cross-examination as may be required for a full and true disclosure of facts. No person shall be excused from attending and testifying, or from producing books, papers and records before the commission or a court, or from obedience to the subpoena of the commission or a court, on the ground or for the reason that the testimony or evidence, documentary or otherwise, required of him may tend to incriminate him or subject him to a penalty or forfeiture; Provided, that nothing in this subsection shall be construed as requiring any person to produce any books, papers or records or to testify in response to any inquiry not pertinent to some question lawfully before such commission or court for determination. No natural person shall be subjected to criminal prosecution or to any penalty or forfeiture for or on account of any transaction, matter or thing concerning which, in spite of his objection, he may be required to testify or produce evidence, documentary or otherwise, before the commission or court, or in obedience to its subpoena; Provided, that no person testifying shall be exempted from prosecution and punishment for perjury committed in so testifying.

(2) In case of failure or refusal on the part of any person to comply with the subpoena issued by the commission, or in case of the refusal of any witness to testify as to any matter regarding which he may be lawfully interrogated, any district court in the state, upon the application of the commission, may in term time or vacation issue an attachment for such person and compel him to comply with such subpoena, and to attend before the commission and produce such records, books and documents for examination, and to give his testimony. Such court shall have the power to punish for contempt as in the case of disobedience to a like subpoena issued by the court, or for refusal to testify therein.

Source:Laws 1959, c. 262, § 12, p. 910.


57-913. Appeal; procedure.

Any person having an interest in property affected by and who is dissatisfied with any rule, regulation, or order made or issued under sections 57-901 to 57-921 may appeal the rule, regulation, or order, and the appeal shall be in accordance with the Administrative Procedure Act.

Source:Laws 1959, c. 262, § 13, p. 911; Laws 1961, c. 280, § 1, p. 818; Laws 1967, c. 357, § 1, p. 946; Laws 1988, LB 352, § 101; Laws 2016, LB1082, § 6.    
Effective Date: July 21, 2016


Cross References

57-914. Temporary restraining order; bond; limitation of actions.

(1) No temporary restraining order or injunction of any kind against the commission or its agents, employees or representatives, or the Attorney General, shall become operative unless and until the plaintiff party shall execute and file with the clerk of the district court a bond in such amount and upon such conditions as the court issuing such order or injunction may direct, with surety approved by the clerk of the district court thereof. The bond shall be made payable to the State of Nebraska, and shall be for the use and benefit of all persons who may be and to the extent that they shall suffer injury or damage by any acts done under the protection of the restraining order or injunction, if the same should not have issued. No suit on the bond may be brought after six months from the date of the final determination of the suit in which the restraining order or injunction was issued.

(2) Any suit, action, or other proceedings based upon a violation of any of the provisions of sections 57-901 to 57-921 shall be commenced within one year from the date of the violation complained of.

Source:Laws 1959, c. 262, § 14, p. 912; Laws 2016, LB1082, § 7.    
Effective Date: July 21, 2016


57-915. Violations; penalty.

(1) Any person who violates any provision of sections 57-901 to 57-921, or any rule, regulation or order of the commission shall be guilty of a Class II misdemeanor. Each day that such violation continues shall constitute a separate offense.

(2) If any person, for the purpose of evading the provisions of sections 57-901 to 57-921, or any rule, regulation or order of the commission, shall make or cause to be made any false entry or statement in a report required by the provisions of sections 57-901 to 57-921, or by any such rule, regulation or order, or shall make or cause to be made any false entry in any record, account or memorandum required by the provisions of sections 57-901 to 57-921, or by any such rule, regulation or order, or shall remove from this state or destroy, mutilate, alter or falsify any such record, account or memorandum, such person shall be guilty of a Class II misdemeanor.

(3) Any person knowingly aiding or abetting any other person in the violation of any provision of sections 57-901 to 57-921, or any rule, regulation or order of the commission shall be subject to the same penalty as that prescribed by the provisions of sections 57-901 to 57-921 for the violation by such other person.

(4) The penalties provided in this section shall be recoverable by suit filed by the Attorney General in the name and on behalf of the commission, in the district court of the county in which the defendant resides, or in which any defendant resides, if there be more than one defendant, or in the district court of any county in which the violation occurred. The payment of any such penalty shall not operate to relieve a person on whom the penalty is imposed from liability to any other person for damages arising out of such violation.

Source:Laws 1959, c. 262, § 15, p. 913; Laws 1977, LB 39, § 59; Laws 2016, LB1082, § 8.    
Effective Date: July 21, 2016


57-916. Violations; injunction; parties; process.

(1) Whenever it appears that any person is violating or threatening to violate any provision of sections 57-901 to 57-921, or any rule, regulation or order of the commission, the commission shall bring suit against such person in the district court of any county where the violation occurs or is threatened, to restrain such person from continuing such violation or from carrying out the threat of violation. Upon the filing of any such suit, summons issued to such person may be directed to the sheriff of any county in this state for service by such sheriff or his deputies. In any such suit, the court shall have jurisdiction and authority to issue, without bond or other undertaking, such prohibitory and mandatory injunctions as the facts may warrant.

(2) If the commission shall fail to bring suit to enjoin a violation or threatened violation of any provision of sections 57-901 to 57-921, or any rule, regulation, or order of the commission, within ten days after receipt of written request to do so by any person who is or will be adversely affected by such violation, the person making such request may bring suit in his own behalf to restrain such violation or threatened violation in any court in which the commission might have brought suit. The commission shall be made a party defendant in such suit in addition to the person violating or threatening to violate a provision of sections 57-901 to 57-921, or a rule, regulation or order of the commission, and the action shall proceed and injunctive relief may be granted in the same manner as if suit had been brought by the commission; Provided, that in such event the person bringing suit shall be required to give bond in accordance with the rules of civil procedure in the district courts.

Source:Laws 1959, c. 262, § 16, p. 914; Laws 2016, LB1082, § 9.    
Effective Date: July 21, 2016


57-916.01. Violations; civil penalty; procedure.

(1) In addition to the penalties prescribed in section 57-915, any person who violates any provision of sections 57-901 to 57-921, any rule, regulation, or order of the commission, or any term, condition, or limitation of any permit issued pursuant to such sections, rule, regulation, or order may be subject to a civil penalty imposed by the commission of not to exceed one thousand dollars. No civil penalty shall be imposed until written notice is sent pursuant to subsection (2) of this section and a period of ten days has elapsed in which the person may come into compliance if possible. If any violation is a continuing one, each day a violation continues after such ten-day period shall constitute a separate violation for the purpose of computing the applicable civil penalty. The commission may compromise, mitigate, or remit such penalties.

(2) Whenever the commission intends to impose a civil penalty under this section, the commission shall notify the person in writing (a) setting forth the date, facts, and nature of each violation with which the person is charged, (b) specifically identifying the particular provision or provisions of the section, rule, regulation, order, or permit involved in the violation, and (c) specifying the amount of each penalty which the commission intends to impose. Such written notice shall be sent by registered or certified mail to the last-known address of such person. The notice shall also advise such person of his or her right to a hearing and that failure to pay any civil penalty subsequently imposed by the commission will result in a civil action by the commission to collect such penalty. The person so notified may, within thirty days of receipt of such notice, submit a written request for a hearing to review any penalty to be imposed by the commission. A hearing shall be held in accordance with the Administrative Procedure Act, and any person upon whom a civil penalty is subsequently imposed may appeal such penalty pursuant to such act. On the request of the commission, the Attorney General or county attorney may institute a civil action to collect a penalty imposed pursuant to this section.

Source:Laws 1990, LB 922, § 1; Laws 2016, LB1082, § 10.    
Effective Date: July 21, 2016


Cross References

57-917. Commission; director; appointment; compensation; bond or insurance.

To enable the commission to carry out its duties and powers under the laws of this state with respect to conservation of oil and gas and to enforce sections 57-901 to 57-921 and the rules and regulations so prescribed, the commission shall employ one chief administrator who shall not be a member of the commission and who shall be known as the Director of the Nebraska Oil and Gas Conservation Commission, and as such he or she shall be charged with the duty of administering and enforcing the provisions of sections 57-901 to 57-921 and all rules, regulations, and orders promulgated by the commission, subject to the direction of the commission. The director shall be a qualified petroleum engineer with not less than three years' actual field experience in the drilling and operation of oil and gas wells. Such director shall hold office at the pleasure of the commission and receive a salary to be fixed by the commission. The director, with the concurrence of the commission, shall have the authority, and it shall be his or her duty, to employ assistants and other employees necessary to carry out the provisions of sections 57-901 to 57-921. The director shall be ex officio secretary of the Nebraska Oil and Gas Conservation Commission and shall keep all minutes and records of the commission. The director shall, as secretary, be bonded or insured as required by section 11-201. The premium shall be paid by the State of Nebraska. The director and other employees of the commission performing duties authorized by sections 57-901 to 57-921 shall be paid their necessary traveling and living expenses when traveling on official business at such rates and within such limits as may be fixed by the commission, subject to existing laws.

Source:Laws 1959, c. 262, § 17, p. 914; Laws 1978, LB 653, § 19; Laws 2004, LB 884, § 31;    Laws 2016, LB1082, § 11.    
Effective Date: July 21, 2016


57-918. Attorney General; act as legal advisor; administration of oath.

The Attorney General shall be the attorney for the Nebraska Oil and Gas Conservation Commission; Provided, that in cases of emergency or in other special cases the commission may, with the consent of the Attorney General retain additional legal counsel, and for such purpose may use any funds available under the provisions of sections 57-901 to 57-921. Any member of the commission, or the secretary thereof, shall have the power to administer oaths to any witness in any hearing, investigation or proceeding contemplated by sections 57-901 to 57-921 or by any other law of this state relating to the conservation of oil and gas.

Source:Laws 1959, c. 262, § 18, p. 915; Laws 2016, LB1082, § 12.    
Effective Date: July 21, 2016


57-919. Oil and Gas Conservation Fund; investment; charges; exemptions; payment; report of producer; filing; interest; lien; penalties.

(1) All money collected by the Tax Commissioner or the commission or as civil penalties under sections 57-901 to 57-921 shall be remitted to the State Treasurer for credit to a special fund to be known as the Oil and Gas Conservation Fund. Expenses incident to the administration of such sections shall be paid out of the fund. Transfers may be made from the fund to the General Fund at the direction of the Legislature. Any money in the Oil and Gas Conservation Fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

(2) There is hereby levied and assessed on the value at the well of all oil and gas produced, saved, and sold or transported from the premises in Nebraska where produced a charge not to exceed fifteen mills on the dollar. The commission shall by order fix the amount of such charge in the first instance and may, from time to time, reduce or increase the amount thereof as in its judgment the expenses chargeable against the Oil and Gas Conservation Fund may require, except that the amounts fixed by the commission shall not exceed the limit prescribed in this section. It shall be the duty of the Tax Commissioner to make collection of such assessments. The persons owning an interest, a working interest, a royalty interest, payments out of production, or any other interest in the oil and gas, or in the proceeds thereof, subject to the charge provided for in this section shall be liable to the producer for such charge in proportion to their ownership at the time of production. The producer shall, on or before the last day of the month next succeeding the month in which the charge was assessed, file a report or return in such form as prescribed by the commission and Tax Commissioner together with all charges due. In the event of a sale of oil or gas within this state, the first purchaser shall file this report or return together with any charges then due. If the final filing date falls on a Saturday, Sunday, or legal holiday, the next secular or business day shall be the final filing date. Such reports or returns shall be considered filed on time if postmarked before midnight of the final filing date. Any such charge not paid within the time herein specified shall bear interest at the rate specified in section 45-104.02, as such rate may from time to time be adjusted, from the date of delinquency until paid, and such charge together with the interest shall be a lien as provided in section 57-702. The Tax Commissioner shall charge and collect a penalty for the delinquency in the amount of one percent of the charge for each month or part of the month that the charge has remained delinquent, but in no event shall the penalty be more than twenty-five percent of the charge. The Tax Commissioner may waive all or part of the penalty provided in this section but shall not waive the interest. The person remitting the charge as provided in this section is hereby authorized, empowered, and required to deduct from any amounts due the persons owning an interest in the oil and gas or in the proceeds thereof at the time of production the proportionate amount of such charge before making payment to such persons. This subsection shall apply to all lands in the State of Nebraska, anything in section 57-920 to the contrary notwithstanding, except that there shall be exempted from the charge levied and assessed in this section the following: (a) The interest of the United States of America and the interest of the State of Nebraska and the political subdivisions thereof in any oil or gas or in the proceeds thereof; (b) the interest of any Indian or Indian tribe in any oil or gas or in the proceeds thereof produced from land subject to the supervision of the United States; and (c) oil and gas used in producing operations or for repressuring or recycling purposes. All money so collected shall be remitted to the State Treasurer for credit to the Oil and Gas Conservation Fund and shall be used exclusively to pay the costs and expenses incurred in connection with the administration and enforcement of sections 57-901 to 57-921.

Source:Laws 1959, c. 262, § 19, p. 915; Laws 1969, c. 584, § 56, p. 2380; Laws 1973, LB 527, § 1; Laws 1974, LB 804, § 2; Laws 1980, LB 709, § 3; Laws 1981, LB 167, § 33; Laws 1983, LB 224, § 8; Laws 1986, LB 1027, § 198; Laws 1992, Fourth Spec. Sess., LB 1, § 8; Laws 1994, LB 1066, § 44; Laws 1995, LB 407, § 3; Laws 1997, LB 97, § 1; Laws 2009, First Spec. Sess., LB3, § 33;    Laws 2016, LB1082, § 13.    
Effective Date: July 21, 2016


Cross References

57-920. Sections; jurisdiction.

The State of Nebraska being a sovereign state and not disposed to jeopardize or surrender any of its sovereign rights, sections 57-901 to 57-921 shall apply to all lands in the State of Nebraska lawfully subject to its police powers, except it shall apply to lands of the United States or to lands subject to the jurisdiction of the United States only to the extent that control and supervision of conservation of oil and gas by the United States on its lands shall fail to effect the intent and purposes of sections 57-901 to 57-921 and otherwise shall apply to such lands to such extent as an officer of the United States having jurisdiction, or his or her duly authorized representative, shall approve any of the provisions of sections 57-901 to 57-921 or the order or orders of the commission which affects such lands, and the same shall apply to any lands committed to a unit agreement approved by the Secretary of the Interior of the United States, or his or her duly authorized representative, except that the commission may, under such unit agreements, suspend the application of the provisions of sections 57-901 to 57-921 or any part of sections 57-901 to 57-921 so long as the conservation of oil and gas and the prevention of waste, as provided in sections 57-901 to 57-921, is accomplished thereby but such suspension shall not relieve any operator from making such reports as are necessary or advised to be fully informed as to operations under such agreement and as the commission may require under the provisions of sections 57-901 to 57-921.

Source:Laws 1959, c. 262, § 20, p. 917; Laws 2016, LB1082, § 14.    
Effective Date: July 21, 2016


Annotations

57-921. Commission; price or value of oil, gas, or other hydrocarbon substances; no power to fix.

Notwithstanding anything heretofore contained in sections 57-901 to 57-921, the Nebraska Oil and Gas Conservation Commission shall have no authority to establish, fix or in any way control the price or value of oil, gas, other hydrocarbon substances or any of the products or component parts thereof.

Source:Laws 1959, c. 262, § 21, p. 917; Laws 2016, LB1082, § 15.    
Effective Date: July 21, 2016


57-922. Oil and Gas Conservation Trust Fund; receipts; disbursements; investment.

There is hereby created in the state treasury a special fund to be known as the Oil and Gas Conservation Trust Fund. All sums of money received by the Nebraska Oil and Gas Conservation Commission, in a manner other than as provided in sections 57-901 to 57-921, shall be paid into the state treasury and the State Treasurer shall deposit the money in the Oil and Gas Conservation Trust Fund. The State Treasurer shall disburse the money in the trust fund as directed by resolution of the Nebraska Oil and Gas Conservation Commission. All disbursements for the fund shall be made upon warrants drawn by the Director of Administrative Services. Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

Source:Laws 1973, LB 119, § 1; Laws 2016, LB1082, § 16.    
Effective Date: July 21, 2016


Cross References

57-923. Well Plugging and Abandonment Trust Fund; created; use; investment; inactive oil or gas well; fee.

The Well Plugging and Abandonment Trust Fund is created. The Nebraska Oil and Gas Conservation Commission shall adopt and promulgate rules and regulations that provide for the collection of a fee for each inactive oil or gas well administered by the commission. The fee shall not exceed two hundred dollars per well per year and shall not be imposed unless an oil or gas well has been inactive for two years or longer. The commission shall remit such fees to the State Treasurer for credit to the fund. The fund shall be used by the commission for the purpose of plugging and abandoning oil or gas wells and completing the required surface restoration if the bonded operator is unable to fulfill such operator's financial obligation. Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

Source:Laws 1999, LB 293, § 1.    


Cross References

57-1001. Service of process.

The performance of any service in connection with exploring for oil and gas, drilling wells therefor, regardless of whether such wells be dry, development of oil and gas interests, and operating and servicing oil and gas properties by (1) a nonresident of the State of Nebraska or (2) an agent or employer of any such persons, shall constitute sufficient contact with this state for exercise of personal jurisdiction over such person in any action arising out of the activities within the State of Nebraska.

Source:Laws 1961, c. 281, § 1, p. 819; Laws 1983, LB 447, § 76.


57-1002. Repealed. Laws 1983, LB 447, § 104.

57-1101. Acquisition of property by eminent domain; authorized; procedure.

Any person engaged in, and any company, corporation, or association formed or created for the purpose of, transporting or conveying crude oil, petroleum, gases, or other products thereof in interstate commerce through or across the State of Nebraska or intrastate within the State of Nebraska, and desiring or requiring a right-of-way or other interest in real estate and being unable to agree with the owner or lessee of any land, lot, right-of-way, or other property for the amount of compensation for the use and occupancy of so much of any lot, land, real estate, right-of-way, or other property as may be reasonably necessary for the laying, relaying, operation, and maintenance of any such pipeline or the location of any plant or equipment necessary to operate such pipeline, shall have the right to acquire the same for such purpose through the exercise of the power of eminent domain, except that for any major oil pipeline as defined in section 57-1404 to be placed in operation in the State of Nebraska after November 23, 2011, any such person, company, corporation, or association shall comply with section 57-1503 and receive the approval of the Governor for the route of the pipeline under such section or shall apply for and receive an order approving the application under the Major Oil Pipeline Siting Act, prior to having the rights provided under this section. If condemnation procedures have not been commenced within two years after the date the Governor's approval is granted or after the date of receipt of an order approving an application under the Major Oil Pipeline Siting Act, the right under this section expires. The procedure to condemn property shall be exercised in the manner set forth in sections 76-704 to 76-724.

Source:Laws 1963, c. 323, § 1, p. 979; Laws 2011, First Spec. Sess., LB1, § 1;    Laws 2012, LB1161, § 1.    


Cross References

57-1102. Crossing public roads or highways; rights acquired; restrictions.

Any such person, company, corporation or association, in the laying, relaying, operation and maintenance of any such pipeline within the State of Nebraska, shall have the right to enter upon and cross, with such pipeline, any public road or highway, under such reasonable regulations and restrictions as may be prescribed by the Department of Roads, if it is a state or federal highway, or by the county board of each county, as to all other public roads and highways within such county, and shall also have the right to lay, relay, operate and maintain such pipeline in and along any public road or highway.

Source:Laws 1963, c. 323, § 2, p. 980.


57-1103. Easements across public lands; acquisition; assessment of damages.

Any person engaged in, and any company, corporation, or association formed or created for the purpose of transporting or conveying crude oil, petroleum, or other products thereof, in interstate commerce through, or across the State of Nebraska, or intrastate within the State of Nebraska, and desiring or requiring a right-of-way in the nature of an easement, for the purpose of laying, relaying, operating and maintaining any pipeline or lines for such purpose in or across any of the public lands except school lands which are not subject to the provisions of section 57-1102, the title of which is vested in the State of Nebraska, shall have the right to acquire the same for such purpose by filing with the other governing body having title or supervision thereof, a plat describing the portion or portions of land, real estate, or right-of-way necessary for the laying, relaying, operating and maintaining of any such pipeline, and the governing body shall direct the county commissioners of the county or counties through which such pipeline right-of-way is desired, shown by petitioners' application and maps, to appraise and fix the amount to be paid by such person, company, corporation, or association for such right-of-way, and assess the damages therefor. Before making the assessment, the governing body shall notify the applicant of the time and place of such hearing by either certified or registered mail, to be mailed at least ten days prior to the hearing.

Source:Laws 1963, c. 323, § 3, p. 980; Laws 1967, c. 466, § 1, p. 1444.


57-1104. Appeal; procedure.

Any party objecting to such allowance may, within thirty days from the entering of the award, appeal to the district court of the county in which such lands are situated by entering into an undertaking to the State of Nebraska, to be approved by the Board of Educational Lands and Funds or governing body, in such sum as the board shall specify, conditioned (1) that the appellant shall prosecute such appeal to effect without unnecessary delay; and (2) that if judgment be rendered against such appellant, he will satisfy such judgment. Within ten days from the filing of such bond, the board or governing body shall make a certified transcript of such proceedings with the board or governing body and transmit the same to the district court of the county in which such lands are situated, where the same shall be heard before the court as a proceeding in equity.

Source:Laws 1963, c. 323, § 4, p. 981.


57-1105. Award; payment; rights acquired; limitation on determination on appeal.

Upon the determination of the amount by the Board of Educational Lands and Funds or governing body, the applicant shall pay the amount to the treasurer of the county in which such lands are situated, for the use of the permanent school fund of this state, if such lands are school lands; as to other public lands such payment shall be made to the State Treasurer for the use of the board or other governing body having title or supervision over such lands. Upon making said payment the applicant shall be vested with the right to lay, relay, operate and maintain such pipeline through the lands described in the proceedings, notwithstanding any appeal as taken or authorized by section 57-1104. Upon appeal the district court shall determine only the amount of the award and not whether a right-of-way is granted.

Source:Laws 1963, c. 323, § 5, p. 981.


57-1106. Breaking, injuring, damaging, or interfering with pipeline, plant, or equipment; penalty.

Any person who shall willfully and maliciously break, injure, damage, or otherwise interfere with, any such pipeline, plant, or equipment of any such person, company, corporation, or association, shall be guilty of a Class III misdemeanor.

Source:Laws 1963, c. 323, § 6, p. 981; Laws 1977, LB 39, § 60.


57-1201. Terms, defined.

As used in sections 57-1201 to 57-1214, unless the context otherwise requires:

(1) Person shall mean any natural person, firm, concern, receiver, trustee, executor, administrator, agent, institution, association, partnership, limited liability company, company, corporation, or person acting under a declaration of trust;

(2) Sever shall mean to take from the land by any means whatsoever; and

(3) Uranium shall mean tri-uranium oct-oxide.

Source:Laws 1983, LB 356, § 13; Laws 1993, LB 121, § 354.


57-1202. Tax; levy; person liable; due and payable; lien.

A tax is hereby levied on all uranium severed from the soil of this state. Such tax shall be paid by the person engaged in the severing of such uranium, shall become due and payable monthly, and shall operate as a first lien on all such uranium. Such lien shall follow the resource into the hands of third persons, whether the resource is acquired in good faith or bad faith or is in a manufactured or unmanufactured state.

Source:Laws 1983, LB 356, § 14.


57-1203. Tax; rate.

The tax imposed by section 57-1202 shall be levied on the value of the uranium severed, and shall be paid at the rate of two percent of the value of such uranium produced each year in excess of five million dollars gross value. The value shall be computed immediately after such severance at the place where the uranium is severed.

Source:Laws 1983, LB 356, § 15.


57-1204. Tax; payment; when; reports; contents.

The tax imposed by section 57-1202 shall be due and payable in monthly installments on or before the last day of the month next succeeding the month in which the uranium was severed. If the final filing date falls on a Saturday, Sunday, or legal holiday, the next secular or business day shall be the final filing date. Such reports shall be considered filed on time if mailed in an envelope properly addressed to the Tax Commissioner and postmarked before midnight of the final filing date. For good cause the Tax Commissioner may grant a taxpayer reasonable extensions of time for filing, not to exceed ten days in the aggregate for any one return.

The person engaged in the severing, on or before the last day of the month next succeeding the month in which the uranium was so severed, shall make out and file with the Tax Commissioner a report or return for the preceding month in such form as may be prescribed by the Tax Commissioner showing: The business conducted by the person engaged in the severing during the preceding month; the kind gross quantity, and value of the uranium so severed; the name of the owner of the resource at the time of the severance; the portion owned by each owner; the location of the place where the uranium is severed; and such other information as the Tax Commissioner may require.

Source:Laws 1983, LB 356, § 16.


57-1205. Tax; remittance.

The tax imposed by section 57-1202 shall be paid to the Tax Commissioner who shall pay all money received to the State Treasurer to be placed in the General Fund.

Source:Laws 1983, LB 356, § 17.


57-1206. Tax; security; notice; use.

The Tax Commissioner, whenever he or she deems it necessary to insure compliance with sections 57-1201 to 57-1214, may require any person subject to the tax imposed by section 57-1202 to deposit with the Tax Commissioner a suitable indemnity bond to insure payment of the tax as the Tax Commissioner may determine. Such security may be used if it becomes necessary to collect any tax, interest, or penalty due. Notice of the use of the bond shall be given to such person by mail.

Source:Laws 1983, LB 356, § 18; Laws 2012, LB727, § 15.    


57-1207. Report; payment of tax; by whom.

The tax imposed by section 57-1202 shall be paid and the report required by section 57-1204 shall be made by the person engaged in the severing of the uranium, whether or not he or she is the owner of the land from which the uranium is severed.

Source:Laws 1983, LB 356, § 19.


57-1208. Tax; deductions permitted.

The person remitting to the Tax Commissioner the tax imposed by section 57-1202 shall deduct, from the amount due any person owning an interest in the uranium or in the proceeds of the uranium at the time of severance, the proportionate amount of such tax before making payment to any such person.

Source:Laws 1983, LB 356, § 20.


57-1209. Tax; delinquent; action.

The Tax Commissioner may bring an action against any person engaged in the severing of uranium for the collection of taxes which are due and delinquent under sections 57-1201 to 57-1214.

Source:Laws 1983, LB 356, § 21.


57-1210. Tax; when delinquent; penalty.

The tax imposed by section 57-1202 shall become delinquent after the last day of each month and, in addition to the amount of the delinquent tax, there shall be paid and the Tax Commissioner shall collect a penalty for such delinquency in the amount of one percent of the delinquent taxes for each month, or part thereof, that the delinquency has continued.

Source:Laws 1983, LB 356, § 22.


57-1211. False oath; penalty.

Any person who shall intentionally make false oath to any return or report required by sections 57-1201 to 57-1214 shall be guilty of perjury and shall, upon conviction thereof, be punished as prescribed by section 28-915.

Source:Laws 1983, LB 356, § 23.


57-1212. Tax Commissioner; supervise tax collections; rules and regulations.

The Tax Commissioner shall supervise and enforce the collection of all taxes that may be due pursuant to sections 57-1201 to 57-1214. The commissioner may adopt and promulgate any rules and regulations necessary to carry out such sections, including, but not limited to, provisions concerning the manner in which the tax shall be paid and the form of required reports.

Source:Laws 1983, LB 356, § 24.


57-1213. Returns; failure to make; penalty.

Any person failing or refusing to make returns or reports, as required by sections 57-1201 to 57-1214, and remaining in default for thirty days after notice to him or her by the Tax Commissioner, or failing to comply with any other requirement of sections 57-1201 to 57-1214, shall be guilty of a Class IV misdemeanor.

Source:Laws 1983, LB 356, § 25.


57-1214. Delinquencies; Attorney General; county attorney; injunction.

The Attorney General or the county attorney of the county in which the uranium is located may file a petition in the district court of such county and, upon such filing, the district court shall have the power to restrain by injunction any person from continuing to sever such uranium while delinquent in any report or the payment of any tax, penalty, or cost required by sections 57-1201 to 57-1214.

Source:Laws 1983, LB 356, § 26.


57-1301. Transferred to section 66-1858.

57-1302. Transferred to section 66-1859.

57-1303. Transferred to section 66-1860.

57-1304. Transferred to section 66-1861.

57-1305. Transferred to section 66-1862.

57-1306. Transferred to section 66-1863.

57-1307. Transferred to section 66-1864.

57-1401 . Act, how cited.

Sections 57-1401 to 57-1413 shall be known and may be cited as the Major Oil Pipeline Siting Act.

Source:Laws 2011, First Spec. Sess., LB1, § 2;    Laws 2012, LB1161, § 2.    


57-1402 . Purposes of act.

(1) The purposes of the Major Oil Pipeline Siting Act are to:

(a) Ensure the welfare of Nebraskans, including protection of property rights, aesthetic values, and economic interests;

(b) Consider the lawful protection of Nebraska's natural resources in determining the location of routes of major oil pipelines within Nebraska;

(c) Ensure that a major oil pipeline is not constructed within Nebraska without receiving the approval of the commission under section 57-1408;

(d) Ensure that the location of routes for major oil pipelines is in compliance with Nebraska law; and

(e) Ensure that a coordinated and efficient method for the authorization of such construction is provided.

(2) Nothing in the Major Oil Pipeline Siting Act shall be construed to regulate any safety issue with respect to any aspect of any interstate oil pipeline. The Major Oil Pipeline Siting Act is intended to deal solely with the issue of siting or choosing the location of the route aside and apart from safety considerations. The Legislature acknowledges and respects the exclusive federal authority over safety issues established by the federal law, the Pipeline Safety Act of 1994, 49 U.S.C. 60101 et seq., and the express preemption provision stated in that act. The Major Oil Pipeline Siting Act is intended to exercise only the remaining sovereign powers and purposes of Nebraska which are not included in the category of safety regulation.

Source:Laws 2011, First Spec. Sess., LB1, § 3;    Laws 2012, LB1161, § 4.    


57-1403. Legislative findings.

The Legislature finds that:

(1) Nebraska has the authority as a sovereign state to protect its land and natural resources for economic and aesthetic purposes for the benefit of its residents and future generations by regulation through approval or disapproval of major oil pipeline siting and the location of routes, so long as it does not regulate in the area of safety as to the design, installation, inspection, emergency plans and procedures, testing, construction, extension, operation, replacement, and maintenance of major oil pipelines and pipeline facilities;

(2) The water and other natural resources in Nebraska will become increasingly valuable, both economically and strategically, as the demand for agricultural products for both food and fuel increases;

(3) The construction of major oil pipelines in Nebraska is in the public interest of Nebraska and the nation to meet the increasing need for energy; and

(4) The irrigation economy of Nebraska which relies on quality water adds over one billion dollars annually to net farm income and increases the gross state product by three billion dollars annually.

Source:Laws 2011, First Spec. Sess., LB1, § 4.    


57-1404 . Terms, defined.

For purposes of the Major Oil Pipeline Siting Act:

(1) Commission means the Public Service Commission;

(2) Major oil pipeline means a pipeline which is larger than six inches in inside diameter and which is constructed in Nebraska for the transportation of petroleum, or petroleum components, products, or wastes, including crude oil or any fraction of crude oil, within, through, or across Nebraska, but does not include in-field and gathering lines; and

(3) Pipeline carrier means a person that engages in owning, operating, or managing a major oil pipeline.

Source:Laws 2011, First Spec. Sess., LB1, § 5;    Laws 2012, LB1161, § 5.    


57-1405 . Pipeline carrier; construction of major oil pipeline; application; substantive change to route; application; contents; notice.

(1) If a pipeline carrier proposes to construct a major oil pipeline to be placed in operation in Nebraska after November 23, 2011, and the pipeline carrier has submitted a route for an oil pipeline within, through, or across Nebraska but the route is not approved by the Governor pursuant to section 57-1503, the pipeline carrier shall file an application with the commission and receive approval pursuant to section 57-1408 prior to beginning construction of the major oil pipeline within Nebraska. If a pipeline carrier proposes a substantive change to the route of a major oil pipeline and the pipeline carrier has submitted a route for an oil pipeline within, through, or across Nebraska but the route is not approved by the Governor pursuant to section 57-1503, the pipeline carrier shall file an application for the proposed change with the commission and receive approval pursuant to section 57-1408 prior to beginning construction relating to the proposed change. The applicant shall also file a copy of the application with the agencies listed in subsection (3) of section 57-1407.

(2) The application shall be accompanied by written agreement to pay expenses assessed pursuant to section 57-1406 and written testimony and exhibits in support of the application. The application shall include:

(a) The name and address of the pipeline carrier;

(b) A description of the nature and proposed route of the major oil pipeline and evidence of consideration of alternative routes;

(c) A statement of the reasons for the selection of the proposed route of the major oil pipeline;

(d) A list of the governing bodies of the counties and municipalities through which the proposed route of the major oil pipeline would be located;

(e) A description of the product or material to be transported through the major oil pipeline;

(f) The person who will own the major oil pipeline;

(g) The person who will manage the major oil pipeline;

(h) A plan to comply with the Oil Pipeline Reclamation Act; and

(i) A list of planned methods to minimize or mitigate the potential impacts of the major oil pipeline to land areas and connected natural resources other than with respect to oil spills.

(3) The applicant shall publish notice of the application in at least one newspaper of general circulation in each county in which the major oil pipeline is to be constructed and forward a copy of such notice to the commission. The applicant shall serve notice of the application upon the governing bodies of the counties and municipalities specified pursuant to subdivision (2)(d) of this section.

Source:Laws 2011, First Spec. Sess., LB1, § 6;    Laws 2012, LB1161, § 6.    


Cross References

57-1406. Commission; assess expenses; payment; neglect or refusal to pay; failure to file objection; notice of delinquency; collection.

(1) The commission shall assess the expenses reasonably attributable to investigation and hearing regarding an application filed under section 57-1405, including expenses billed by agencies filing reports as required in subsection (3) of section 57-1407 and both direct and indirect expenses incurred by the commission or its staff or consultants, to the applicant as agreed under section 57-1405.

(2) The commission shall ascertain the expenses of any such investigation and hearing and by order assess such expenses against the applicant and shall render a bill therefor, by United States mail, to the applicant, either at the time the order under section 57-1408 is issued or from time to time during such application process. Such bill shall constitute notice of such assessment and demand of payment thereof. Upon a bill rendered to such applicant, within fifteen days after the mailing thereof, such applicant shall pay to the commission the amount of the assessment for which it is billed. The commission shall remit the payment to the State Treasurer for credit to the Public Service Commission Pipeline Regulation Fund. The commission may render bills in one fiscal year for costs incurred within a previous fiscal year. The commission shall direct the State Treasurer to credit any reimbursement of expenses billed by agencies pursuant to subsection (3) of section 57-1407 to the appropriate fund of the appropriate agency.

(3) If any applicant against which an assessment has been made pursuant to this section, within fifteen days after the notice of such assessment, (a) neglects or refuses to pay the same or (b) fails to file objections to the assessment with the commission as provided in subsection (4) of this section, the commission shall transmit to the State Treasurer a certified copy of the notice of assessment, together with notice of neglect or refusal to pay the assessment, and on the same day the commission shall mail by registered mail to the applicant against which the assessment has been made a copy of the notice which it has transmitted to the State Treasurer. If any such applicant fails to pay such assessment to the State Treasurer within ten days after receipt of such notice and certified copy of such assessment, the assessment shall bear interest at the rate of fifteen percent per annum from and after the date on which the copy of the notice was mailed by registered mail to such applicant.

(4) Within fifteen days after the date of the mailing of any notice of assessment under subsection (2) of this section, the applicant against which such assessment has been made may file with the commission objections setting out in detail the ground upon which the applicant regards such assessment to be excessive, erroneous, unlawful, or invalid. The commission shall determine if the assessment or any part of the assessment is excessive, erroneous, unlawful, or invalid and shall render an order upholding, invalidating, or amending the assessment. An amended assessment shall have in all respects the same force and effect as though it were an original assessment.

(5) If any assessment against which objections have been filed is not paid within ten days after service of an order finding that such objections have been overruled and disallowed by the commission, the commission shall give notice of such delinquency to the State Treasurer and to the applicant in the manner provided for in subsection (3) of this section. The State Treasurer shall then collect the amount of such assessment. If an amended assessment is not paid within ten days after service of the order of the commission, the commission shall notify the State Treasurer and the applicant as in the case of delinquency in the payment of an original assessment. The State Treasurer shall then collect the amount of such assessment as provided in the case of an original assessment.

Source:Laws 2011, First Spec. Sess., LB1, § 7.    


57-1407. Commission; duties; public meetings; agency reports; approval by commission; considerations.

(1) After receipt of an application under section 57-1405, the commission shall:

(a) Within sixty days, schedule a public hearing;

(b) Notify the pipeline carrier of the time, place, and purpose of the public hearing;

(c) Publish a notice of the time, place, and purpose of the public hearing in at least one newspaper of general circulation in each county in which the major oil pipeline is to be constructed; and

(d) Serve notice of the public hearing upon the governing bodies of the counties and municipalities through which the proposed route of the major oil pipeline would be located as specified in subdivision (2)(d) of section 57-1405.

(2) The commission may hold additional public meetings for the purpose of receiving input from the public at locations as close as practicable to the proposed route of the major oil pipeline. The commission shall make the public input part of the record.

(3) If requested by the commission, the following agencies shall file a report with the commission, prior to the hearing on the application, regarding information within the respective agencies' area of expertise relating to the impact of the major oil pipeline on any area within the respective agencies' jurisdiction, including in such report opinions regarding the advisability of approving, denying, or modifying the location of the proposed route of the major oil pipeline: The Department of Environmental Quality, the Department of Natural Resources, the Department of Revenue, the Department of Roads, the Game and Parks Commission, the Nebraska Oil and Gas Conservation Commission, the Nebraska State Historical Society, the State Fire Marshal, and the Board of Educational Lands and Funds. The agencies may submit a request for reimbursement of reasonable and necessary expenses incurred for any consultants hired pursuant to this subsection.

(4) An application under the Major Oil Pipeline Siting Act shall be approved if the proposed route of the major oil pipeline is determined by the Public Service Commission to be in the public interest. The pipeline carrier shall have the burden to establish that the proposed route of the major oil pipeline would serve the public interest. In determining whether the pipeline carrier has met its burden, the commission shall not evaluate safety considerations, including the risk or impact of spills or leaks from the major oil pipeline, but the commission shall evaluate:

(a) Whether the pipeline carrier has demonstrated compliance with all applicable state statutes, rules, and regulations and local ordinances;

(b) Evidence of the impact due to intrusion upon natural resources and not due to safety of the proposed route of the major oil pipeline to the natural resources of Nebraska, including evidence regarding the irreversible and irretrievable commitments of land areas and connected natural resources and the depletion of beneficial uses of the natural resources;

(c) Evidence of methods to minimize or mitigate the potential impacts of the major oil pipeline to natural resources;

(d) Evidence regarding the economic and social impacts of the major oil pipeline;

(e) Whether any other utility corridor exists that could feasibly and beneficially be used for the route of the major oil pipeline;

(f) The impact of the major oil pipeline on the orderly development of the area around the proposed route of the major oil pipeline;

(g) The reports of the agencies filed pursuant to subsection (3) of this section; and

(h) The views of the governing bodies of the counties and municipalities in the area around the proposed route of the major oil pipeline.

Source:Laws 2011, First Spec. Sess., LB1, § 8.    


57-1408. Commission order; findings; extension of time; status reports; notice of completion; denial of application; amended application; commission; duties.

(1) Within seven months after the receipt of the application under section 57-1405, the commission shall enter an order approving the application or denying the application. The commission shall include in the order the findings of the commission regarding the application and the reasons for approving or denying the application. The order approving the application shall state that the application is in the public interest and shall authorize the pipeline carrier to act under section 57-1101.

(2) The commission may, for just cause, extend the time for the entry of an order under subsection (1) of this section. The extension shall not exceed twelve months after the receipt of the application under section 57-1405 unless all parties agree to a longer extension, except that no extension shall extend more than eight months after the issuance of a presidential permit authorizing the construction of the major oil pipeline.

(3) If the commission approves the application, the pipeline carrier shall file a status report with the commission regarding the construction of the major oil pipeline every six months until the completion of the major oil pipeline within Nebraska. The pipeline carrier shall notify the commission of the completion of the major oil pipeline within Nebraska within thirty days after such completion.

(4) If the commission denies the application, the pipeline carrier may amend the denied application in accordance with the findings of the commission and submit the amended application within sixty days after the issuance of the order denying the application. Within sixty days after the receipt of the amended application, the commission shall enter an order approving or denying the amended application after making new findings under subsection (4) of section 57-1407.

Source:Laws 2011, First Spec. Sess., LB1, § 9.    


57-1409. Appeal.

Any party aggrieved by a final order of the commission regarding an application or assessment under the Major Oil Pipeline Siting Act, including, but not limited to, a decision relating to the public interest, may appeal. The appeal shall be in accordance with section 75-136.

Source:Laws 2011, First Spec. Sess., LB1, § 10;    Laws 2013, LB545, § 1.    


57-1410. Rules and regulations.

The commission shall adopt and promulgate rules and regulations to carry out the Major Oil Pipeline Siting Act.

Source:Laws 2011, First Spec. Sess., LB1, § 11.    


57-1411. Public Service Commission Pipeline Regulation Fund; created; use; investment.

The Public Service Commission Pipeline Regulation Fund is created. The fund shall be administered by the commission. The fund shall be used by the commission to carry out the Major Oil Pipeline Siting Act. Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

Source:Laws 2011, First Spec. Sess., LB1, § 12.    


Cross References

57-1412. Commission; powers.

The commission may contract for professional services and expert assistance, including, but not limited to, the services of engineers, hydrogeologists, accountants, attorneys, and economists, to assist with reviewing applications under the Major Oil Pipeline Siting Act.

Source:Laws 2011, First Spec. Sess., LB1, § 13.    


57-1413. Documents or records; not withheld from public.

The commission shall not withhold any documents or records relating to a major oil pipeline from the public unless the documents or records are of the type that can be withheld under section 84-712.05 or unless federal law provides otherwise.

Source:Laws 2012, LB1161, § 3.    


57-1501. Legislative findings.

The Legislature finds that:

(1) The State of Nebraska is responsible for protecting its natural resources, agricultural resources, aesthetics, economy, and communities through reasonable regulation for the common good and welfare. As such, the state is responsible for ensuring that an oil pipeline proposed to be located within, through, or across Nebraska is in compliance with all state laws, rules, and regulations relating to water, air, and wildlife under the Constitution of Nebraska and state law;

(2) Public policy should reflect this responsibility while simultaneously recognizing the necessity for energy use and the economic benefits to Nebraska of transporting oil within, through, or across the state, the need for economic development in Nebraska, and the opportunities for jobs and revenue that new development brings to the state;

(3) The United States has the important ability to work with foreign suppliers of crude oil to meet our overall energy needs and to further our national security interests; and

(4) The economic benefits of oil pipeline construction projects are important to the state, including the creation of jobs. Nevertheless, the benefits of any proposed oil pipeline project must be weighed against any concerns brought by the residents of Nebraska.

Source:Laws 2011, First Spec. Sess., LB4, § 1.    


57-1502. Terms, defined.

For purposes of sections 57-1501 to 57-1503:

(1) Department means the Department of Environmental Quality;

(2) Oil pipeline means a pipeline which is larger than eight inches in inside diameter and which is constructed in Nebraska for the transportation of petroleum, or petroleum components, products, or wastes, including crude oil or any fraction of crude oil, within, through, or across Nebraska, but does not include in-field and gathering lines; and

(3) Pipeline carrier means an individual, a company, a corporation, an association, or any other legal entity that engages in owning, operating, or managing an oil pipeline.

Source:Laws 2011, First Spec. Sess., LB4, § 2.    


57-1503 . Evaluation of route; supplemental environmental impact statement; department; powers and duties; pipeline carrier; reimburse cost; submit to Governor; duty; denial; notice to pipeline carrier; documents or records; not withheld from public.

(1)(a) The department may:

(i) Evaluate any route for an oil pipeline within, through, or across the state and submitted by a pipeline carrier for the stated purpose of being included in a federal agency's or agencies' National Environmental Policy Act review process. Any such evaluation shall include at least one public hearing, provide opportunities for public review and comment, and include, but not be limited to, an analysis of the environmental, economic, social, and other impacts associated with the proposed route and route alternatives in Nebraska. The department may collaborate with a federal agency or agencies and set forth the responsibilities and schedules that will lead to an effective and timely evaluation; or

(ii) Collaborate with a federal agency or agencies in a review under the National Environmental Policy Act involving a supplemental environmental impact statement for oil pipeline projects within, through, or across the state. Prior to entering into such shared jurisdiction and authority, the department shall collaborate with such agencies to set forth responsibilities and schedules for an effective and timely review process.

(b) A pipeline carrier that has submitted a route for evaluation or review pursuant to subdivision (1)(a) of this section shall reimburse the department for the cost of the evaluation or review within sixty days after notification from the department of the cost. The department shall remit any reimbursement to the State Treasurer for credit to the Department of Environmental Quality Cash Fund.

(2) The department may contract with outside vendors in the process of preparation of a supplemental environmental impact statement or an evaluation conducted under subdivision (1)(a) of this section. The department shall make every reasonable effort to ensure that each vendor has no conflict of interest or relationship to any pipeline carrier that applies for an oil pipeline permit.

(3) In order for the process to be efficient and expeditious, the department's contracts with vendors pursuant to this section for a supplemental environmental impact statement or an evaluation conducted under subdivision (1)(a) of this section shall not be subject to the Nebraska Consultants' Competitive Negotiation Act or sections 73-301 to 73-306 or 73-501 to 73-510.

(4) After the supplemental environmental impact statement or the evaluation conducted under subdivision (1)(a) of this section is prepared, the department shall submit it to the Governor. Within thirty days after receipt of the supplemental environmental impact statement or the evaluation conducted under subdivision (1)(a) of this section from the department, the Governor shall indicate, in writing, to the federal agency or agencies involved in the review or any other appropriate federal agency or body as to whether he or she approves any of the routes reviewed in the supplemental environmental impact statement or the evaluation conducted under subdivision (1)(a) of this section. If the Governor does not approve any of the reviewed routes, he or she shall notify the pipeline carrier that in order to obtain approval of a route in Nebraska the pipeline carrier is required to file an application with the Public Service Commission pursuant to the Major Oil Pipeline Siting Act.

(5) The department shall not withhold any documents or records relating to an oil pipeline from the public unless the documents or records are of the type that can be withheld under section 84-712.05 or unless federal law provides otherwise.

Source:Laws 2011, First Spec. Sess., LB4, § 3;    Laws 2012, LB858, § 16;    Laws 2012, LB1161, § 7.    


Cross References

Annotations