HB 232 Summary

• Restructures the Oil and Gas Conservation Commission membership to include the governor, director of Department of Lands, a county commissioner from oil/gas producing counties, and two governor-appointed technical experts with petroleum geology or engineering credentials.

• Establishes default well spacing requirements of 40 acres for oil wells and 160 acres for gas wells, with setback requirements of 300 feet from occupied structures and water sources (100-foot minimum).

• Prohibits waste of oil and gas and places a 12-month moratorium on new rulemaking by the commission; transfers certain permitting authority to the Department of Lands.

• Requires operators to file detailed monthly reports on production, sales, and gas disposition; implements metering standards and prohibits commingling of production without departmental approval.

• Establishes royalty owner protections including minimum 12.5% royalty rate, interest on late payments, detailed royalty statements, and civil remedies for unpaid royalties; creates surface use mediation and bonding requirements for operators.