§ 15-72-217 - Plugging dry or abandoned well by lessee or operator. - Arkansas Statutes

15-72-217. Plugging dry or abandoned well by lessee or operator.

(a) All lessees or operators drilling or operating for crude oil or natural gas within the State of Arkansas shall immediately, in a practical and workmanlike manner under the supervision of the oil or gas inspector, as provided in this section, plug all dry holes or abandoned oil or gas wells in accordance with Oil and Gas Commission plugging rules.

(b) (1) If after notice and a hearing the commission finds that a well drilled for the exploration, development, storage, or production of oil or gas, or as injection, salt water disposal, salt water source, brine injection or disposal has been abandoned, as defined by the commission, or is leaking salt water, oil, gas, or other deleterious substances into any fresh water formation or onto the surface of the land in the vicinity of the well, or creates an imminent danger to the health or safety of the public, the commission shall issue an order that the well be properly plugged, replugged, or repaired to remedy the situation.

(2) (A) If the well operator fails to obey the order within the time set by the order, the commission may:

(i) Authorize a person to enter upon the land on which the well is located and plug, replug, or repair the well, as may be reasonably required to remedy the condition; or

(ii) (a) Transfer the well, the well-site equipment, or any hydrocarbons from the well that are stored on the well site.

(b) "Well-site equipment" includes without limitation an associated tank battery and production facility equipment.

(B) Any proceeds received from the transfer of a well, well-site equipment, or hydrocarbons from the well under subdivision (b)(2)(A) of this section shall be deposited in the Abandoned and Orphaned Well Plugging Fund.

(3) (A) The costs and expenses incurred by the commission and paid with funds from the fund shall be a debt due by the well operator to the commission for reimbursement to the fund.

(B) The well owner's failure to comply with the commission's order to plug, replug, or repair the well or to repay expenses incurred by the commission to plug, replug, or repair the well is a violation of this chapter and subject to enforcement action or a cessation of operations.

(c) This section does not:

(1) Relieve any well operator otherwise legally responsible from any obligation to plug, replug, or repair a well; or

(2) Limit the authority of the commission to require the proper plugging, replugging, or repair of a well.

(d) (1) Any person who enters upon the land on which the well is located to plug, replug, or repair the well, or who supports or contributes to any such action in accordance with the order of the commission and under contract to the commission, shall not be liable for any damages resulting from operations reasonably necessary or proper to plug, replug, or repair the well, except for damages to growing crops and improvements.

(2) The person shall not be held to have assumed responsibility for future remedial work on the well or be liable in damages or otherwise for conditions subsequently arising from or in connection with the well.