§ 15-76-306 - Authority of the commission. - Arkansas Statutes

15-76-306. Authority of the commission.

(a) The Oil and Gas Commission shall have jurisdiction of and authority over all persons and property necessary to administer and enforce effectively the provisions of this subchapter.

(b) The commission shall have the authority and it shall be its duty to make inquiries it deems proper to determine whether or not waste over which it has jurisdiction exists or to determine whether the correlative rights of owners are being protected. In the exercise of this duty, the commission shall have the authority to:

(1) Make reasonable investigations and inspections;

(2) Examine properties, leases, papers, books, and records;

(3) Examine, check, test, and gauge brine wells, injection wells, and pipelines;

(4) Hold hearings;

(5) Require the keeping of records and the making of reports; and

(6) Take such action as may be reasonably necessary to enforce this subchapter.

(c) The commission shall have the authority to make, after hearing and notice as provided in this section, such reasonable rules, regulations, and orders as may be necessary from time to time in the proper administration and enforcement of this subchapter, including rules, regulations, or orders for the following purposes:

(1) To form brine production units;

(2) To require the drilling, casing, and plugging of wells to be done in such a manner as to prevent the escape of brine and effluent from one stratum to another, to prevent the pollution of fresh water supplies by brine and effluent, and to require reasonable financial assurance acceptable to the commission conditioned for the performance of the duty to plug each dry hole or abandoned well;

(3) To require the making of reports showing the location of brine wells utilized for production and of injection wells used for disposal and the filing of logs and drilling records for those wells;

(4) To require the return of the brine to the same formation from which it was produced unless the commission authorizes the disposal of effluent into one (1) or more other formations upon finding that neither underground damage nor waste results therefrom;

(5) To prevent the drowning by brine and effluent of any stratum or part thereof capable of producing oil or gas in paying quantities;

(6) To prevent "blowouts", "caving", and "seepage" in the sense that conditions indicated by these terms are generally understood;

(7) To identify the ownership of all wells utilized for producing brine and of all injection wells and all pipelines, plants, ponds, structures, and storage facilities;

(8) To regulate the "shooting", perforating, and chemical treatment of wells;

(9) To regulate the introduction or injection of effluent and other substances into an aquifer;

(10) (A) To regulate the spacing of wells for the production of brine and injection wells for the introduction of effluent into an aquifer.

(B) However, the commission shall have no authority to allow wells or other installations on the surface of lands without the consent of the surface owner;

(11) To formulate rules and regulations for the proper transportation of brine from the producing wells to the plant and from the plant to the injection wells and for the maintenance and surveillance of the transportation facilities; and

(12) To prevent, so far as is practical, reasonably avoidable drainage between brine production units.

(d) (1) The commission is authorized to assess each producer of brine a charge not to exceed fifty cents ($0.50) on each one thousand (1,000) barrels, each of which contains forty-two (42) United States gallons, of brine produced and saved or sold for purposes of the extraction of chemical substances therefrom.

(2) All moneys so collected shall be deposited into the Oil and Gas Commission Fund and used solely to pay the expenses and other costs of the commission.

(e) Before the commission implements the collection process of any increase in the millage assessments that may be authorized by law on each one thousand (1,000) barrels of brine produced and saved or sold for purposes of chemical extraction, the commission shall first seek review from the Legislative Council or the Joint Budget Committee.