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 business names and contact details. The bill also establishes a process for granting variances to departmental rules, allowing for flexibility in compliance under certain conditions, and revises the pooling orders process to enable the director to pool interests in a spacing unit when voluntary pooling does not occur.

Additionally, the bill outlines provisions for cost recovery and risk penalties against nonconsenting owners, ensuring they receive a cost-free royalty interest of 12.5% during drilling. It mandates that after the producer recovers specified costs, they must inform nonconsenting owners of their option to participate as working interest owners. The bill also includes measures for protecting confidential information submitted by owners for a period of five years and repeals the department's authority to determine market demand for oil and gas, thereby streamlining the regulatory framework for the industry.

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