The bill amends the Iowa Code to enhance the regulatory framework surrounding oil and gas production by introducing new definitions and requirements. Key insertions include definitions for terms such as "casing," "correlative rights," "exploratory well," and "well log," which aim to clarify the processes involved in the industry. It mandates that individuals and businesses engaged in oil and gas activities file specific information with the Department of Natural Resources by April 1 each year, including their business names, contact information, and organizational plans. Additionally, the bill allows for variances to departmental rules, establishes guidelines for handling confidential information, and modifies existing pooling orders to integrate fractional tracts and establish exploratory spacing units.

The bill also grants the director of the Department of Natural Resources the authority to require annual filings, issue variances without a hearing, and establish exploratory spacing units for drilling. It outlines procedures for maintaining confidentiality of information for five years and details the management of costs and production among owners through pooling orders. Notably, it requires applicants to provide information on nonconsenting owners and their associated costs, while also establishing a cost-free royalty interest for these owners during drilling. After the recovery of specified costs, nonconsenting owners must be informed of their option to participate as working interest owners. The bill further streamlines regulatory oversight by repealing the department's authority to determine market demand for oil and gas.

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