Senate Bill 2839

AN ACT TO AMEND SECTION 75-58-15, MISSISSIPPI CODE OF 1972, TO REVISE THE RATE OF INTEREST PAID SHOULD ANY PERSON FAIL TO MAKE ANY PAYMENT REQUIRED UNDER THE NATURAL GAS MARKETING ACT; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 75-58-15, Mississippi Code of 1972, is amended as follows:

75-58-15. (a) Interest. Should any person fail to make any payment required under this chapter when the same is due, interest shall accrue at the greater rate of * * *~~twelve percent (12%)~~ five percent (5%) per annum or two percent (2%) above the federal discount rate in effect on the second day of January of each year from the date due until paid, provided, however, should operator fail to remit payment of net proceeds to any consenting nonoperator within the time herein provided because the title of such consenting nonoperator is not marketable, the rate of interest as to the net proceeds attributable to such consenting nonoperator shall be * * *~~five percent (5%)~~ the federal discount rate in effect on the second day of January of each year accruing from the date when due until the title is rendered marketable. Marketability of title shall be determined in accordance with the then current legally recognized real property law governing title to oil and gas interests. Where the title to a balancing party's interest is not marketable, and where all the claimants to such interest are not consenting nonoperators, operator may refuse to produce and deliver any gas attributable to such interest until such time as the title is rendered marketable. Gas attributable to such interest shall be allocated as underproduction.

(b) Interpleader. An operator shall have the right to initiate an action of interpleader where the operator may be exposed to double or multiple liability in the payment of net proceeds. Upon deposit with the court of the net proceeds plus accrued interest thereon as of the date of such deposit as provided by this chapter, operator shall thereafter be relieved of all liability relating to the net proceeds and accrued interest so deposited with the court. Operator shall be entitled to deduct and/or receive from the net proceeds and accrued interest all reasonable costs incurred by operator in such action of interpleader. An overproduced party desiring to cash balance shall also have the right to initiate an action of interpleader where such overproduced party may be exposed to double or multiple liability in the payment of proceeds for cash balancing. Upon deposit with the court of the proceeds for cash balancing, such overproduced party shall thereafter be relieved of all liability relating to such proceeds so deposited with the court. The overproduced party shall be entitled to deduct and/or receive from the proceeds for cash balancing all reasonable costs incurred by such overproduced party in such action of interpleader.

(c) Jurisdiction Over Disputes. Jurisdiction and venue for any proceeding brought pursuant to this chapter shall be in the Chancery Court of the First Judicial District for Hinds County, Mississippi, or in the chancery court of any county in which all or part of the unit for the well is situated.

SECTION 2. This act shall take effect and be in force from and after July 1, 2014.