All Roll Calls
Yes: 157 • No: 108
IowaSF 249091st General Assembly (2025–2026)SenateWALLET
A bill for an act relating to oil and gas production, including filing requirements, the authority of the department of natural resources, confidential information, pooling orders, negotiation of surface damage, imposition and distribution of a tax, and jurisdiction, and providing civil penalties. (Formerly SF 2449, SF 546, SF 268.) Effective date: 07/01/2026.
Sponsored By: COMMITTEE ON WAYS AND MEANS
Signed by Governor
appropriationsways and means
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Bill Overview
Analyzed Economic Effects
7 provisions identified: 2 benefits, 0 costs, 5 mixed.
State blocks most local oil limits
Starting 07/01/2026, the state has exclusive control over oil and gas operations. Cities and counties cannot ban or broadly regulate operations. They may adopt only commercially reasonable, above‑ground rules like traffic, lights, noise, notice, or reasonable setbacks that do not stop operations. A local rule in place for five years is presumed reasonable.
How severance tax money is shared
Beginning 07/01/2026, the state splits severance tax money by set shares. 9.9% goes to all counties by population. 5% goes to producing counties by production value and can fund county roads or lower property tax levies. 5% goes to the road use tax fund. 10% goes to a water‑quality account with most project cost‑share capped at 50% and admin costs capped at 10%. The remaining 70.1% goes to the taxpayer relief fund. Money is paid quarterly using estimates, with a yearly true‑up.
Forced pooling rules and owner choices
Starting 07/01/2026, if owners of at least 25% of a spacing unit apply, the state pools all interests in that unit. Pooling orders can let producers recover costs and collect a risk penalty from nonconsenting owners; producers can take production, after royalties, until costs are paid. After the producer fully pays recoverable costs, it must notify nonconsenting owners within 30 days. Those owners have 60 days to elect to join as a working interest or keep the default royalty. No reply in 60 days means you keep the default royalty.
Surface damage payments and disputes
Beginning 07/01/2026, an operator must first try to settle surface damages with the landowner before bringing in heavy equipment. If no deal, the operator can ask the court to appoint appraisers and then enter after required notice. Each side picks one appraiser and those two pick a third; appraisers must be certified, report within set timelines, and their fees and court costs are split equally. Any party can file exceptions within 30 days; the court may confirm, change, or order a new appraisal, and can require a bond for entry. Within 60 days of the appraisers’ report, a party may ask the county compensation commission to decide damages; fee‑shifting then depends on whether the award is above or at/below the appraisers’ recommendation.
New drilling unit and pooling filings
Beginning 07/01/2026, the department may set exploratory spacing units when pool details are unclear. It may also allow a well at a different site if the normal spot would not produce or would add major hazard or burden, while protecting each unit’s fair share. Orders on spacing can be appealed within 30 days. To seek compulsory pooling, applicants must file set documents and, at hearing, present the election letter, well proposal, spending authorization, lists of nonconsenting owners, and proof for any risk penalty.
New 6% severance tax on producers
Beginning 07/01/2026, oil and gas production is taxed at 6% of fair market value at the wellhead. Pre‑valuation costs are not deductible. Each owner pays its share, and a taxpayer may deduct the tax paid from royalty checks in proportion to ownership. The Department of Revenue values production each year and certifies values to county assessors by June 1. Severance‑tax returns and return information are confidential with limited government‑use exceptions; reported units and taxable value are public. Records used to administer the severance tax may be kept confidential.
New operator reports and confidentiality
Starting 07/01/2026, oil and gas businesses must file an annual report by April 1 with organization and contact details. Well owners or operators must file logs, surveys, reports, and samples within six months after completion or abandonment, free of charge. The director may grant written variances from rules within 14 days and must publish them. If you submit information the department deems confidential, you must provide hard copies marked “confidential”; the department keeps them private for five years unless extended. Iowa Code section 458A.6 is repealed.
Sponsors & Cosponsors
Sponsor
COMMITTEE ON WAYS AND MEANS
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
legislature vote • 5/2/2026
Amendment H-8477
Yes: 25 • No: 61
House vote • 5/2/2026
Passed House
Yes: 65 • No: 21
Senate vote • 5/2/2026
Passed Senate
Yes: 35 • No: 11
Senate vote • 4/16/2026
Passed Senate
Yes: 32 • No: 15
Actions Timeline
NOBA: Final
6/2/2026legislatureSigned by Governor.
6/1/2026GovernorReported correctly enrolled, signed by President and Speaker, and sent to Governor.
5/18/2026SenateMessage from Senate.
5/2/2026SenateImmediate message.
5/2/2026legislaturePassed Senate, yeas 35, nays 11.
5/2/2026SenateSenate concurred with S-5256.
5/2/2026SenateMessage from House, with amendment S-5256.
5/2/2026HouseImmediate message.
5/2/2026legislatureExplanation of vote.
5/2/2026legislaturePassed House, yeas 65, nays 21.
5/2/2026HouseAmendment H-8475 filed, adopted.
5/2/2026legislatureAmendment H-8474 filed, adopted.
5/2/2026legislatureAmendment H-8476 filed, adopted.
5/2/2026legislatureExplanation of vote.
5/2/2026legislatureAmendment H-8477, yeas 25, nays 61, filed, lost.
5/2/2026legislatureAmendment H-8450 withdrawn.
5/2/2026legislatureAmendment H-8450 filed.
4/30/2026legislaturePlaced on Ways and Means calendar.
4/21/2026legislatureCommittee vote: Yeas, 19. Nays, 5. Excused, 1.
4/21/2026legislatureCommittee report, recommending passage.
4/21/2026legislatureSubcommittee recommends passage.
4/21/2026legislatureSubcommittee Meeting: 04/21/2026 8:00AM RM 102.
4/20/2026legislatureSubcommittee: Wulf, Meggers and Wilson.
4/20/2026legislatureRead first time, referred to Ways and Means.
4/20/2026legislature
Bill Text
As Introduced
Enrolled
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