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Oil & Gas
This exemption applies to the offer and sale of limited partnership interests, fractional undivided interests or certificates based upon any fractional undivided interest involving any oil and gas royalty, lease or deed, including subsurface gas storage and payments out of production, if the land subject to the interest or certificate is located in Kansas and all sales are made in accordance with one of the following conditions:
  • Each sale is made to a person who is or has been during the preceding two years engaged primarily in the business of drilling for, producing or refining oil or gas.
  • Sales are limited to a total of 32 purchasers without regard to whether they reside within or outside of Kansas, purchases are made for investment and not for resale and no commission is paid.
  • Each sale involves property that produces oil, gas or petroleum products in paying quantities on the date of sale and the seller, after the sale, does not retain any ownership interest in or control over the lease or the interest or interests that are being sold. 

This exemption may not be used in conjunction with any other exemption provided by K.S.A. 17-12a202.

Specifics

  • Citation: K.A.R. 81-5-10
  • Filing Requirement: Exemption is self executing, no filing is required
  • Filing Fee: None