A run statement is a document provided by the purchaser of oil or gas to the owner of an interest in that product. It details the total volume of oil or gas extracted, the sales value, taxes paid, and the net payment due to the owner. This statement is essential for tracking financial transactions related to the sale of oil and gas and typically accompanies the payment for the extracted resources.
Run statements are primarily used in the oil and gas industry. They play a crucial role in financial reporting and transparency between purchasers and interest owners. This term is relevant in legal contexts involving contracts, property rights, and financial transactions related to natural resources. Users may find legal templates on US Legal Forms to help manage agreements or disputes related to run statements.
Here are a couple of examples of abatement:
Example 1: An oil company extracts 10,000 barrels of oil in a month. The run statement provided to the owner details the total sales value of $500,000, taxes of $50,000, and a net payment of $450,000.
Example 2: A gas purchaser issues a run statement indicating the extraction of 5,000 cubic feet of gas, with a sales value of $20,000, taxes of $2,000, and a net payment of $18,000 to the interest owner. (hypothetical example)
Examples of state differences (not exhaustive):
| State | Key Differences |
|---|---|
| Texas | Run statements must comply with specific state regulations regarding oil and gas reporting. |
| California | Additional environmental reporting requirements may apply to run statements. |
| Oklahoma | Run statements must be submitted to the state oil and gas commission for verification. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Differences |
|---|---|---|
| Run statement | A document detailing the extraction and financials related to oil and gas. | Specific to oil and gas transactions. |
| Invoice | A request for payment for goods or services rendered. | More general; not specific to oil and gas. |
| Royalty statement | A report detailing payments made to landowners for resource extraction. | Focuses on compensation to landowners rather than transaction details. |
If you receive a run statement, review it carefully to ensure all details are accurate. If discrepancies arise, contact the purchaser for clarification. You can also explore US Legal Forms for templates that can assist in managing agreements or disputes related to run statements. For complex issues, consider seeking professional legal advice.
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A run statement is a document that outlines the financial details of oil or gas extracted, including sales value and payments to interest owners.