The proposed bill would update current statutes by removing the Oil and Gas Conservation Commission (Commission) from the oversight of the Arizona Department of Environmental Quality (ADEQ). It would eliminate ADEQ's requirement to provide staff support and establish a new Commission Fund, consisting of legislative appropriations and fees collected by the Commission, redirecting these funds away from the state General Fund. This change would grant the Commission greater autonomy, allowing it to set its own fees, accept federal funds and private contributions, and manage its own resources, including personnel and property previously under ADEQ.

Additionally, the bill would introduce a new section (27-528) to create the oil and gas conservation commission fund and update the article heading from "production and conservation" to "oil and gas conservation commission." It would modify definitions and procedures related to drilling permits, allowing the Commission to determine fees through a majority vote. New provisions would clarify the Commission's authority regarding hearings and penalties for violations, emphasizing that penalties do not legalize contraband oil or gas. Overall, these updates aim to enhance the Commission's operational independence and align the regulatory framework with contemporary practices in oil and gas extraction.

Statutes affected:
Introduced Version: 27-501, 27-513, 27-514, 27-515, 27-517, 27-523, 27-524, 27-527, 27-528, 27-659, 49-250, 27-516, 27-520, 38-611, 35-146, 35-147, 49-455, 35-190
Senate Engrossed Version: 27-501, 27-513, 27-514, 27-515, 27-517, 27-523, 27-524, 27-527, 27-528, 27-659, 49-250, 27-516, 27-520, 38-611, 35-146, 35-147, 49-455, 35-190