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 and contact details. The bill also establishes a process for granting variances to departmental rules, allowing for flexibility in compliance under certain conditions. Additionally, it addresses the handling of confidential information, mandating verification with the department before submission and ensuring confidentiality for five years unless extended.

Moreover, the bill modifies the pooling process, granting the director the authority to enter orders for pooling interests in spacing units and outlining the rights and obligations of owners in these orders. Nonconsenting owners are given the option to elect participation in the pooling order or continue receiving a cost-free royalty interest of 12.5% during drilling or operation. The bill also repeals the department's authority to determine market demand for oil and gas, thereby shifting regulatory responsibilities. Overall, the legislation aims to streamline oil and gas production regulations while ensuring fair practices among stakeholders.

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