AR SB521

Amends Arkansas Code § 15-72-305(a)(3) to clarify that one-eighth of gas sold from a drilling unit after March 6, 1985 is royalty gas, with net proceeds distributed to marketable title owners after deducting federal and state taxes and assessments.

Requires working interest owners to provide operators within 30 days with royalty owner names, addresses, tax identification numbers, and fractional interests in the unit, with operators able to notify non-compliant owners by certified mail or file complaints with the commission.

Establishes that operators must remit one-eighth of revenue from gas sales to royalty owners within specified timeframes (no later than 6 months after first sale, then within 30-90 days), with funds held in trust until distribution.

Provides remedies for non-compliance by working interest owners, including operator liability shields and commission enforcement actions with penalties up to 60 days suspension, with collected penalties deposited to the Oil and Gas Commission Fund.

Excludes producing units or wells producing only liquid hydrocarbons from these royalty distribution requirements and changes "revenue proceeds realized" to "proceeds received" in discharge of obligations provisions.