In order to pay the conservation division expenses and administration costs not otherwise provided for, an oil conservation assessment shall be made as follows:

1. (a) A charge of 144.00 mills on each barrel of crude oil or petroleum marketed or used each month shall be assessed to each producer. The charge and assessment shall apply only to the first purchase of oil from the producer.

2. (b) Each month, the first purchaser of the production shall perform the following:

   1. (1) Deduct the assessment per barrel of oil marketed or used from the lease before paying for production;
   2. (2) remit the assessment in a single check to the conservation division when making regular oil payments; and
   3. (3) account for the deductions on the regular payment statements to producers, royalty owners, and other interested persons.

(Authorized by K.S.A. 2017 Supp. 55-152; implementing K.S.A. 2017 Supp. 55-176; effective, T-83-44, Dec. 8, 1982; effective May 1, 1983; amended May 1, 1986; amended April 23, 1990; amended Dec. 6, 1993; amended Nov. 15, 1996; amended June 1, 2001; amended Dec. 22, 2006; amended June 15, 2018.)