27-565. Application to purchase royalty oil

A. An Arizona refinery business may apply to the department to purchase royalty oil which the department elects to receive from a lessee. The application shall be filed not more than fifteen weeks nor less than thirteen weeks before the date of sale of the royalty oil by the department. The application shall be in the nature of a request and an offer to purchase which becomes irrevocable after the department sends notice of the election to the lessee as provided in section 27-566. The offer may be revoked by the applicant at any time before the date of sale upon the written agreement of the lessee and payment of all costs incurred by the department.

B. The application shall be in a form prescribed by the department containing the following information:

1. The full name and address of the applicant, the location of the refinery and a complete disclosure of the applicant's affiliation with any other petroleum refiner if such relationship exists.

2. The capacity of the refinery to be supplied with refinery oil and the amount, source and grade of all refinery oil currently available to the applicant by purchase.

3. The amount and grade of refinery oil which the applicant desires to purchase.

4. The field or fields which the applicant believes offer a potential source of refinery charge stocks due to quality, the proximity to the refinery and available transportation facilities which the applicant proposes to utilize.

C. The department shall examine each application. If the department finds that the application is incomplete, the department shall so advise the applicant within one week of the date that the application was filed with the department, and the applicant may amend the application within ten days. If the department finds the application to be complete, the department shall so advise the applicant within one week. If the department fails to provide the notice prescribed by this subsection, the application is deemed to be complete.

D. Upon approval of the application, the applicant shall file the bond or other assurances required by the department pursuant to section 27-570.