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MS SB2544

Bill

Status

Failed

3/4/2014

Primary Sponsor

Terry Burton

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Origin

Senate

2014 Regular Session

AI Summary

  • Extends the time allowed for an operator to commence operations following a forced-pooling order from 180 days to one (1) year after the pooling order is issued by the State Oil and Gas Board.

  • Allows operators to charge nonconsenting owners alternate charges (rather than actual costs) if the operator has made good faith efforts to negotiate, notify, and offer reasonable terms to integrate interests in the drilling unit.

  • Permits operators to recover alternate charges consisting of 100% of surface equipment costs, 250% of well development costs and equipment (or 300% for severed mineral interests or leased interests), and 100% of operating costs until recovery is complete.

  • Provides nonconsenting owners a 20-day window after the pooling order is filed to agree in writing to participate on the same cost basis as consenting owners, avoiding the higher alternate charges.

  • Takes effect July 1, 2014.

Legislative Description

Oil and Gas Board; extend time allowed for commencement of operations following a forced-pooling order.

Last Action

Died In Committee

3/4/2014

Committee Referrals

Energy1/20/2014

Full Bill Text

No bill text available