The bill amends various sections of the Iowa Code concerning oil and gas production, introducing new definitions such as "casing," "correlative rights," "exploratory well," and "well log" to enhance regulatory clarity. It requires individuals and businesses engaged in oil and gas activities to file specific information with the Department of Natural Resources by April 1 each year, including their business names, contact details, and organizational plans. Additionally, the bill allows the director of the department to grant variances to rules without a hearing if the applicant shows a good faith effort to comply, and it establishes guidelines for protecting confidential information for up to five years.

Moreover, the bill modifies existing pooling orders to facilitate the integration of fractional tracts and the creation of exploratory spacing units. It outlines the requirements for compulsory pooling applications, ensuring that nonconsenting owners receive a cost-free royalty interest of 12.5% during drilling or operation. After the producer recovers costs, they must inform nonconsenting owners of their option to participate as working interest owners. Importantly, the bill repeals the department's authority to determine market demand for oil and gas, eliminating a previously held regulatory power.

Statutes affected:
Introduced: 458A.2, 458A.4, 458A.7, 458A.8, 458A.6