House Bill No. 120 Summary

• Restructures the Oil and Gas Conservation Commission to include four (4) appointed members instead of three (3), with one member required to have land use experience and at least five (5) years in the field

• Authorizes the Commission to regulate the perforation and treatment of wells and repeals Section 47-318 relating to well spacing requirements

• Establishes procedures for operators to request amendments to the size, shape, or location of spacing units, with applications subject to notice and hearing requirements under Section 47-328

• Creates a three-option integration framework for spacing units: working interest owner participation, nonconsenting working interest owner with risk penalties, and a base entitlement option providing minimum 1/8 royalty with operator compensation for non-electing owners

• Requires operators to furnish a minimum $6,000 per well site surface use bond to protect surface landowners from unreasonable crop loss, loss of improvements value, and permanent land damage; establishes mediation procedures for damage disputes

• Revises reporting requirements and public data disclosure provisions while maintaining confidentiality protections for well logs (up to 12 months) and seismic data

• Effective date: July 1, 2023