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AR HB1549
Bill
Status
3/6/2023
Primary Sponsor
Rick Beck
Click for details
AI Summary
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Changes terminology in Arkansas Code § 15-72-305(a)(3) from "net proceeds" to "proceeds received" for royalty gas distributions to align with new definition of proceeds
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Defines "proceeds" in new subsection (c) as either the actual amount received for gas sales in arm's length nonaffiliated transactions less federal and state taxes, or the amount calculated under lease terms if applicable
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Modifies § 15-72-305(a)(6)(A) to replace "revenue proceeds realized" with "revenue proceeds received" in language regarding operator discharge of royalty payment obligations
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Maintains existing procedures for working interest owner information reporting within 30 days of gas sales receipt and operator remittance of one-eighth royalty within specified timeframes (6 months to 90 days depending on circumstances)
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Preserves commission enforcement authority including penalties, sanctions, and 60-day suspension periods for noncompliant working interest owners or operators who fail to meet royalty distribution obligations
Legislative Description
To Amend The Law Regarding Oil And Gas Production And Conservation; To Amend The Law Regarding The Allocation Of Production And Cost Following An Integration Order; And To Define "proceeds".
Last Action
Recommended for study in the Interim by Joint Interim Committee on AGRICULTURE, FORESTRY & ECONOMIC DEVELOPMENT- HOUSE
4/5/2023