Arkansas bill tightening requirements for gas well operators passes House committee
LITTLE ROCK, Ark. – A bill adding requirements for gas well operator reporting passed its first committee hearing Wednesday after extensive testimony.
House Bill 1656 requires gas well operators to provide leaseholders with an itemized accounting. If it becomes law, each deduction from the leaseholder's payment will be accounted for.
Arkansas legislature bills filed Tuesday include changes to the Arkansas Constitution, water bonds, human trafficking, more
According to the bill's language, deductions not allowed by the agreement between the operator and the leaseholder must be repaid within 30 days.
The House Agriculture, Forestry & Economic Development Committee heard testimony from well operators and leaseholders. The bill ultimately passed, with five committee members voting against it.
Typically, well operators said the additional accounting requirement would lead to wells being shut down, beginning with those that are minimally producing. Leaseholders expressed frustration about payments that deductions by the operator all but wiped out.
Back and forth among legislators about Arkansas ACCESS higher education legislation
The bill will now return to the House floor for its final vote. If it passes, it will move to the Senate.
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