Bill > HB1900

This bill amends Arkansas law regarding the information that oil and gas operators must provide to royalty owners and the potential sanctions for not complying with these requirements. Specifically, the bill modifies the existing law to require operators to provide more detailed information about deductions taken from royalty payments. Instead of simply listing "any and all deductions," operators must now itemize each deduction, including its nature, purpose, and specific amount. Additionally, the bill updates the civil penalty provisions for noncompliance, changing the maximum penalty from a flat $500 to the maximum penalty amount allowed for a delinquency as described in another section of Arkansas Code (§ 15-74-709(a)(2)). The bill also maintains the Oil and Gas Commission's existing authority to suspend sanctions for up to 60 days, giving noncompliant parties an opportunity to prove they have addressed the commission's orders. These changes aim to increase transparency for royalty owners and provide a more flexible approach to enforcing reporting requirements in the oil and gas industry.

Agriculture and Natural Resources

https://arkleg.state.ar.us/Bills/Detail?id=hb1900&ddBienniumSession=2025%2F2025R