MS HB1351

Increases the threshold percentage of drilling rights ownership required for an operator to petition the State Oil and Gas Board for alternate charges from 33% to 80%.

Modifies the royalty cap for lessors of leased interests subject to pooling and integration from 3/16 to 1/3 of proceeds attributable to the nonconsenting owner's proportionate share of production.

Maintains existing notice and hearing requirements for nonconsenting owners, including publication in newspapers and certified mailing of petitions.

Preserves the alternate charge structure allowing operators to recover development costs, equipment costs at 250% (or 300% for severed mineral interests), and operational costs from nonconsenting owners' production shares.

Takes effect July 1, 2018.