§ 15-74-202 - Prohibition on removing oil or gas from lease without measurement and recording. - Arkansas Statutes

15-74-202. Prohibition on removing oil or gas from lease without measurement and recording.

(a) It shall be unlawful for any person, firm, corporation, or association, being the owner or operator of any oil or gas well in this state, to take or remove any oil or oil-bearing gas from any lease, unless the oil or gas so taken and removed from the lease is to be gauged or measured and a correct record of the amount of oil or oil-bearing gas so taken or removed from the lease be kept. Provided, this bill shall not be construed to include oil-bearing gas produced from so-called "stripper" wells, the gas from which is not marketable.

(b) If any person, firm, corporation, or association operating or producing any oil or gas from any well of this state shall violate the terms of subsection (a) of this section, then his or her or its ownership in the lease under which the well is being operated shall be voidable and subject to cancellation upon suit or suits instigated by the owner or owners of the royalty and mineral interests of the leased premises upon which the violation occurs.

(c) In the event the mineral interests under the leased premises are owned by several different persons, firms, corporations, or associations, then the leasehold interest on the premises on which the violation occurs shall be declared separable, and the interest in the leasehold as owned by the person, firm, corporation, or association violating the terms of this section shall be cancelled.