27-512. Sale of illegal oil or gas or illegal products

A. Sale and notice of sale of illegal oil or gas or illegal product seized under the authority of this article shall be in accordance with the laws of the state relating to the sale of personal property under execution. For his services at the sale the sheriff shall receive a fee and expenses in the amount and manner provided by law for sales of personal property, to be paid from the proceeds of the sale, to be fixed by the court ordering the sale.

B. The court may order that the commodity be sold in specified lots or portions, and at specified intervals. Title to the amount sold shall pass as of the date of the act which is found by the court to make the commodity contraband. The judgment shall provide for payment of the proceeds of the sale into the fund, after first deducting the costs of the proceedings and sale, and after paying to any royalty owner intervening as an interested party in the suit who has established title to the oil or gas royalty interest, the value of his interest in the oil or gas. The amount sold shall be treated as legal oil, legal gas or legal product in the hands of the purchaser, but the purchaser and the commodity shall be subject to all applicable laws, rules, regulations and orders with respect to further sale, purchase or acquisition, and with respect to the transportation, refining, processing or handling in any manner the commodity purchased.

C. The producer, owner, or other party contesting the validity of a seizure and having an interest in securing the release of the seized oil, gas or other product, may obtain the release thereof upon furnishing a bond made and executed by a corporate surety company duly qualified to do business in the state, in an amount double the current market value of the oil, gas or other product held under seizure. The bond shall be conditioned and approved in the same manner as a replevin bond.

D. Nothing in this article shall deny or abridge any action a royalty owner, lien holder or other claimant may have because of the forfeiture of the illegal oil or gas or illegal product, against the person whose act resulted in the forfeiture.

E. All illegal oil, gas, or other illegal product sold as provided in this section shall be sold as provided by law for the sale of personal property under execution.