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 organizational plans. The bill also establishes a process for granting variances to departmental rules, allowing for flexibility in compliance, and modifies the pooling process to enable the director to issue orders for pooling interests without voluntary agreements, ensuring that terms remain just and reasonable.

Additionally, the bill addresses the management of confidential information, mandating verification with the department before submission and maintaining confidentiality for five years, with the possibility of extension. It introduces new requirements for applicants seeking cost recovery or risk penalties, including the need to provide a list of nonconsenting owners and justification for risk penalties. Nonconsenting owners not subject to a lease will receive 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, streamlining the regulatory framework and aiming 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