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 information, and organizational plans. Additionally, the bill allows the director of the department to grant variances to rules and regulations without a hearing, provided that applicants demonstrate a good faith effort to comply. It also establishes guidelines for the confidentiality of submitted information, protecting it for five years unless extended.

Key changes include new requirements for applicants seeking cost recovery or risk penalties, such as providing a list of nonconsenting owners and justifying the application of a risk penalty. The bill ensures that nonconsenting owners not under a lease will receive a cost-free royalty interest of 12.5% during drilling or operation. Furthermore, it repeals the department's authority to determine market demand for oil and gas, streamlining the regulatory framework. Overall, these amendments aim to improve the efficiency and clarity of oil and gas production regulations while ensuring fair treatment of nonconsenting owners.

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