An act TO AMEND THE LAW CONCERNING BRINE PRODUCTION, the official text

Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas               As Engrossed: H2/20/25
2 95th General Assembly
                                        A Bill

3 Regular Session, 2025                                           HOUSE BILL 1413

4

5 By: Representative M. Shepherd

6 By: Senator Stone

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8                                 For An Act To Be Entitled

9   AN ACT TO AMEND THE LAW CONCERNING BRINE PRODUCTION;

10  TO AMEND THE LAW CONCERNING THE FORMATION OF BRINE

11  PRODUCTION UNITS; AND FOR OTHER PURPOSES.

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13

14                                          Subtitle

15                       TO AMEND THE LAW CONCERNING BRINE

16                       PRODUCTION; AND TO AMEND THE LAW

17                       CONCERNING THE FORMATION OF BRINE

18                       PRODUCTION UNITS.

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20 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

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22  SECTION 1. Arkansas Code � 15-76-308(d), concerning a proposed brine

23 expansion unit, is amended to add additional subdivisions to read as follows:

24  (3)(A) The operator of a brine production unit or brine

25 expansion unit may apply to the commission to reduce the size of the unit by

26 removing one (1) or more contiguous tracts from the unit.

27                       (B) The commission may approve the operator's application

28 if the commission finds that:

29                                (i) The tract or tracts sought to be removed do not

30 contain an unplugged brine production or brine disposal well;

31                                (ii) There have been no brine production wells or

32 brine disposal wells located within one-half (1/2 mi.) mile of any exterior

33 boundary of the removed tract or tracts during the time the brine production

34 unit has been in operation; and

35                                (iii) The removed tract or tracts will not be

36 drained or placed in imminent risk of being drained by the operations of the

    *CRH123*                                                 02-20-2025 11:03:32 CRH123
    As Engrossed: H2/20/25                                                  HB1413

1 unit from which the tract or tracts will be removed or by any other adjacent

2 unit.

3        (4)(A) The operator or operators of two (2) adjacent brine

4 production units or brine expansion units may apply to the commission to

5 transfer one (1) or more contiguous tracts from the unit to the adjacent

6 unit.

7                  (B) The commission shall approve the operator's

8 application if it finds that the:

9                           (i) Operator has the right to produce brine from no

10 less than seventy-five percent (75%) of the entire area of each immediately

11 adjacent unit;

12                          (ii) Operation of the brine production unit

13 receiving the transferred tract or tracts will be expanded, enhanced, or made

14 more efficient by the proposed transfer;

15                          (iii) Transfer will drain efficiently the area

16 within the tract or tracts so transferred; and

17                          (iv) Transfer will have no adverse impact on either

18 the amount or the reasonably anticipated longevity of the royalty payments

19 due to the owners of the tract or tracts so transferred and will not

20 otherwise substantially impair the correlative rights of the owners of the

21 tract or tracts transferred or of owners within the brine unit receiving the

22 transferred tract.

23       (5) Upon the commission's approval of the transfer, the

24 transferred tract or tracts shall become a brine expansion unit adjacent to

25 the unit to which it was transferred.

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27                          /s/M. Shepherd

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