The bill amends existing laws regarding oil and gas production and conservation in Arkansas, specifically focusing on the allocation of production and costs following an integration order. Key changes include the definition of "proceeds" and the establishment of a minimum royalty gas payment of one-eighth (1/8) to royalty owners, which can be exceeded based on lease agreements. The bill also outlines the responsibilities of working interest owners and operators in providing necessary information for royalty distribution and establishes penalties for noncompliance.

Additionally, the bill clarifies that the payment of one-eighth of the proceeds from gas sales will fully discharge the obligations of operators and working interest owners regarding leasehold royalty payments. It introduces a new definition of "proceeds," specifying that it refers to the actual amount received from gas sales, minus applicable taxes, or the amount calculated per lease terms if applicable. These amendments aim to streamline the process of royalty distribution and ensure compliance among parties involved in oil and gas production.

Statutes affected:
HB 1549: 15-72-305(a), 15-72-305