Title 15 — Natural Resources and Economic Development
42 chapters · 1,687 sections in this title.
Ark. Code Ann. § 15-74-101 Information required in division order or declaration of interest in gas
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(a) All division orders or any declaration of interest in gas between the purchaser of gas production and the owner of the production in Arkansas or between the purchasers of gas production or the owner of the production and the royalty interest owners in Arkansas shall contain t…
Ark. Code Ann. § 15-74-201 Accurate measurement of crude petroleum oil
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(a) All crude petroleum oil produced in this state shall be measured in gauge-tanks. The pipelines through which the crude petroleum oil is conveyed from oil wells to the gauge-tanks shall be placed on the surface of the ground and no bypasses shall extend from the pipelines betw…
Ark. Code Ann. § 15-74-202 Prohibition on removing oil or gas from lease without measurement and recording
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(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 …
Ark. Code Ann. § 15-74-203 Prohibition on discounting crude for waste, shrinkage, etc. — Proper computation of purchase
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(a) It shall be unlawful for any person, firm, or corporation who may purchase any oil produced in this state to in any way discount, dock, or short crude oil for waste, shrinking, or other causes, but such purchases when computed shall be on one hundred percent (100%) net oil me…
Ark. Code Ann. § 15-74-301 Title
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This subchapter shall be known and may be cited as the “Standard Gas Measurement Law”.
Ark. Code Ann. § 15-74-302 Cubic foot of gas defined
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(a) The term “cubic foot of gas” or “standard cubic foot of gas” means the volume of gas contained in one cubic foot (1 cf) of space at a standard pressure base and at a standard temperature base. (b) The standard pressure base shall be fourteen and sixty-five one hundredths poun…
Ark. Code Ann. § 15-74-303 Determination of specific gravity and flowing temperature
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(a) The Oil and Gas Commission is authorized and empowered, in the absence of the availability of satisfactory actual data based upon observed or recorded specific gravity and flowing temperature determinations, to determine the average specific gravity and average flowing temper…
Ark. Code Ann. § 15-74-304 Reports of gas production
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Any person required to report volumes of gas production under the laws of this state shall report such volumes in number of thousands of standard cubic feet calculated and determined under the provisions of this subchapter.
Ark. Code Ann. § 15-74-305 Measurement, accounting, etc., of gas sold or delivered by volume
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(a) Each and every sale and each and every purchase, delivery, and receipt of gas by volume made in this state, for which any accounting for the price paid or received for the gas so sold, purchased, delivered, or received must be made to an oil and gas lease owner, royalty owner…
Ark. Code Ann. § 15-74-401 Penalty
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(a) A dealer shall be guilty of a misdemeanor and upon conviction shall be fined in any sum not less than fifty dollars ($50.00) nor more than five hundred dollars ($500), if that dealer:(1) Offers for sale any of the oils or fluids mentioned in this subchapter that:(A) Have not …
Ark. Code Ann. § 15-74-402 Rules
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The Secretary of the Department of Finance and Administration shall have authority to promulgate such rules in regard to the enforcement of this subchapter as shall not be inconsistent with the provisions of this subchapter which in his or her judgment will best serve to carry ou…
Ark. Code Ann. § 15-74-403 Limit on inspectors' interest in oil and gas sale or manufacture — Appropriation of fluids
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(1) No inspector or deputy, while in office, shall:(1) Be interested, directly or indirectly, in the manufacture or sale of any of the oils or gasoline specified in this subchapter; or(2) For the purpose of inspection, testing, or gauging the same, take away or appropriate for hi…
Ark. Code Ann. § 15-74-404 Specifications for fuels and oils
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(1) No article or commodity shall be sold or offered for sale in the State of Arkansas as gasoline, motor vehicle fuel, special motor vehicle fuel, illuminating oils, or heating oils unless it shall conform to specifications as follows:(1) The fuels mentioned above shall be free …
Ark. Code Ann. § 15-74-405 Condemnation of gasoline — Placards — Hose inspection
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(a) Where inspectors find gasoline being sold or offered for sale by any dealer that does not meet the specifications as set out in this subchapter, they must condemn the gasoline and affix to gasoline pumps the following placards as the occasion requires: “THIS GASOLINE DOES NOT…
Ark. Code Ann. § 15-74-406 Penalty for removing or altering placards
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The removing, altering, disfiguring, or defacing of any placard or any part thereof shall be treated as a misdemeanor. Any person, firm, or corporation guilty of that misdemeanor shall be fined in a sum not more than five hundred dollars ($500) nor less than fifty dollars ($50.00…
Ark. Code Ann. § 15-74-407 Prohibition on sale or use of certain fluids for illumination or heating
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No oils or fluids that ignite or burn at any temperature less than that established by the current ASTM International standards or such other standards as the Arkansas Bureau of Standards may establish shall be offered for sale or used for illuminating or heating purposes within …
Ark. Code Ann. § 15-74-408 Inspection of dealer records
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The person, firm, or corporation who receives motor vehicle fuel must keep in his or her possession and file in an orderly manner statements showing distillation tests, bills of lading, or invoices, as the case may be, covering each quantity received, and those items are to be su…
Ark. Code Ann. § 15-74-409 Oil or gasoline testing prior to sale
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(a) Whenever any person, firm, or corporation shall receive any of the oils or gasoline mentioned in this subchapter that has not been tested under the laws of this state, it shall be his or her or its duty to:(1) Cause to be tested, or test, the oils or gasoline as provided in t…
Ark. Code Ann. § 15-74-410 Records of inspections — Disposition of funds
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(a) The Secretary of the Department of Finance and Administration, or his or her deputies or inspectors, whose duty it is to enforce this subchapter, shall keep a correct record of all oils and fluids inspected by them in a book provided for by the state for that purpose. They sh…
Ark. Code Ann. § 15-74-501 Prohibition against discrimination in purchase price of crude oil from different pools — Definition
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(a) (1) Any person engaged in the business of buying any crude oil for manufacture or sale thereof, who shall discriminate between different pools of crude oil in this state by purchasing crude oil at a lower price in one (1) pool than is paid for crude oil of the same kind, qual…
Ark. Code Ann. § 15-74-502 Prohibition against requiring commissioned agents to purchase business according to United States Department of Energy fuel allocation — Contracts
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(a) It shall be unlawful for any major oil company to require or seek to require a commissioned agent of the products of the major oil company to:(1) Purchase the oil business at a price in which the major oil company has used the United States Department of Energy fuel allocatio…
Ark. Code Ann. § 15-74-601 Time limits governing oil and gas payments — Definition
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(a) The proceeds derived from the sale of oil or gas production from any oil or gas well shall be paid to persons legally entitled thereto, commencing no later than six (6) months after the date of first sale and thereafter no later than sixty (60) days after the end of the calen…
Ark. Code Ann. § 15-74-602 Fraudulently withholding payments
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(a) If the first purchaser, or owner of the right to drill and produce substituted for the first commercial purchaser as provided in this subchapter, violates this subchapter by willfully withholding payments without just cause or through bad faith from persons legally entitled t…
Ark. Code Ann. § 15-74-603 Action for nonpayment of proceeds
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(a) Any court of competent jurisdiction of the county in which the oil or gas well is located shall have jurisdiction over all proceedings brought pursuant to this subchapter. (b) If persons legally entitled to the proceeds seek relief for the failure of the purchaser to make tim…
Ark. Code Ann. § 15-74-604 Failure to pay royalties
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(a) An obligation arises under an oil and gas lease to pay or to deliver oil or gas royalties to the mineral owner or his or her assignee or to deliver oil or gas to a purchaser to the credit of the mineral owner or his or her assignee, and willful breach by the owner of the righ…
Ark. Code Ann. § 15-74-605 Sale of proportionate share of production
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(a) For any gas well completed as a commercially productive well subsequent to the passage of this section, the party designated as operator of the well shall sell, and the operator's first purchaser shall purchase, the gas production attributable to the interest of any party who…
Ark. Code Ann. § 15-74-701 Penalty
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Any person willfully or maliciously violating any of the provisions of this subchapter shall be deemed guilty of a misdemeanor and upon conviction shall be fined in any sum of not less than one hundred dollars ($100) nor more than five hundred dollars ($500).
Ark. Code Ann. § 15-74-702 Royalties paid in lieu of drilling off-set wells on adjacent units
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Where royalties are paid in lieu of drilling off-set wells on forty-acre units adjacent to forty-acre units already in production, the forty-acre units adjacent to the forty-acre unit receiving the royalty payments shall immediately after the signing of the agreement or contract …
Ark. Code Ann. § 15-74-703 Entitlement of royalty interests to premiums and bonuses
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All purchasers of oil and gas shall pay to the royalty interest the same premium or bonus above the posted market price for oil or gas they pay to the leaseholder or working interest under any oil, gas, or mineral lease on lands from which oil or gas may be purchased under contra…
Ark. Code Ann. § 15-74-704 Paying part of production cost or giving bonus or premium without paying share to royalty interest
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It shall be unlawful for any purchaser of oil or gas to enter into any contract with any lessee or operator under any oil, gas, or mineral lease, whereby the purchaser undertakes to pay any of the cost or expense of operation or production, steaming, treating, or running oil or g…
Ark. Code Ann. § 15-74-705 Purchaser's price for royalty gas
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It shall be the duty of both the lessee, or his or her assignee, and any pipeline company, corporation, or individual contracting for the purchase of oil or gas under any oil, gas, or mineral lease to protect the royalty of the lessor's interest by paying to the lessor or his or …
Ark. Code Ann. § 15-74-706 Contracting to buy royalty gas for less than price paid operator or lessee
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It shall be unlawful for any pipeline company, corporation, or individual purchasing oil or gas from the operator or lessee of any oil, gas, or mineral lease to enter into any contract with the operator or lessee whereby the purchaser acquires the royalty oil or gas reserved in t…
Ark. Code Ann. § 15-74-707 Time of royalty payment — Monthly statements to royalty owner
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(a) It shall be the duty of any purchaser of oil or gas to pay the royalty interest at the same time it pays the lessee or producer. However, the parties may expressly waive the time and manner of payment in writing. (b) The purchaser shall at some time not later than the twelfth…
Ark. Code Ann. § 15-74-708 Forfeiture of lease upon lessee receiving more than share from sale — Purchaser to pay treble value
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(a) Any leaseholder or operator who contracts for the sale of gas or oil to any pipeline company or other purchaser, under and by virtue of the terms of which the lessee receives a greater amount than the royalty owners in proportion to interest therein, or receives a bonus, or b…
Ark. Code Ann. § 15-74-709 Default or delinquency by lessees or others responsible for payment of royalties
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(a) (1) The Oil and Gas Commission is hereby authorized to receive and investigate complaints of oil and gas royalty owners that their lessees or others responsible for the payment of royalty are in default of their lease agreements, orders of the commission, or the requirements …