Ark. Code Ann. § 15-72-305 — AR Code / Title 15 / Chapter 72 / Subchapter 3 / Section 15-72-305
Allocation of production and cost following integration order - Procedure
Status: in_force

(a) (1) The order of the Oil and Gas Commission creating a drilling unit shall provide that effective as of the commencement of the drilling of a well upon the drilling unit or, if a well capable of producing oil and gas in commercial quantities has already been completed upon some part of the lands included within the drilling unit, all royalty, overriding royalty, production payment, or similar interests in the drilling unit shall be integrated without the necessity of any additional order or action by the commission or owners. In the event any unit includes an unleased mineral interest upon the effective date thereof, one-eighth (1/8) of the unleased mineral interest shall be deemed as royalty for the purposes of this subsection. (2) For the purpose of making distribution to the owners of royalty, overriding royalty, production payment, or similar interests, there shall be allocated to each tract in the established drilling unit that percentage of the total production from such drilling unit, except any part thereof unavoidably lost or used for production or development purposes, which the area of each tract bears to the total area of the drilling unit. The interests shall be paid or delivered to each owner thereof in conformance with the provisions of the appropriate lease, agreement, or contract creating it, but computed upon the production allocated to each tract as hereinabove provided, rather than upon the actual production therefrom. (3) One-eighth (1/8) of all gas sold on or after the first day of the calendar month next ensuing after March 6, 1985, from any such unit shall be considered royalty gas, and the net proceeds received from the sale thereof shall be distributed to the owners of the marketable title in and to the leasehold royalty and royalty as defined under § 15-72-304(d) . Marketability of title shall be determined according to principles of real property law governing title to oil and gas interests. Unless all royalty owners within the drilling unit agree to a different method for distribution of the royalty, the distribution shall be coordinated by the operator of the well as follows: (A) (i) Within thirty (30) days of the receipt of the proceeds from gas sales, each working interest owner shall furnish to the working interest owner designated as operator, in a form acceptable to the operator, the following information: (a) The names and addresses of all owners of royalty under the working interest owner's leasehold interests; (b) Each royalty owner's tax identification or Social Security number and any other information needed to meet the requirements of the Internal Revenue Service or other governmental agencies; and (c) The fractional or decimal interests in the unit of each tract in which interests are owned and each royalty owner's fractional or decimal interest therein. (ii) Thereafter, each working interest owner shall notify the operator of any changes of ownership and provide the necessary information to facilitate the necessary changes promptly upon receiving proof thereof. (iii) If any working interest owner should fail or refuse to discharge its obligation to provide the information outlined in subdivision (a)(3)(A)(i) of this section in a timely manner, to facilitate payments, the operator may, at its option, either: (a) Notify the working interest owner by certified or registered mail of the name, address, and decimal interests of the royalty owner believed to be entitled to receive payments pursuant to the terms hereof under the working interest owner's leasehold on the basis of the best information then available to the operator. If the working interest owner fails to respond to the notification within thirty (30) days of the receipt thereof, the operator shall be entitled to pay royalty moneys in accordance with its prior notification and usual procedures. Further, the operator's payment in this manner shall constitute a complete defense to any claim or in any legal proceeding or cause of action and the responsible working interest owner shall indemnify and hold the operator harmless from all liability and reimburse the operator for any and all costs and expenses, including attorney's fees, interest, or penalty incurred with respect to the proceeding or action; or (b) File an application with the commission, setting forth sufficient facts to identify the well concerned and the responsible working interest owner, requesting that the commission issue an order requiring the working interest owner to appear at the next regularly scheduled hearing and show cause with respect to its failure to timely comply with the provisions of this section. Subsequent to the hearing, the commission shall impose upon a working interest owner who has failed to meet its obligations hereunder such sanctions as are reasonably calculated to enforce compliance with this section. These sanctions shall include, but not be limited to, a penalty under § 15-74-709 . The commission shall have the authority to suspend the imposition of any sanction for a maximum period of sixty (60) days in order to allow the noncompliant owner the opportunity to furnish proof to the commission of his or her compliance with any commission order. All penalties levied by the commission as a result of this provision shall be collected by the commission and shall be deposited into the State Treasury to the credit of the Oil and Gas Commission Fund. The commission may promulgate such other rules as it deems appropriate and necessary to carry out the purposes of this section. (iv) The terms of this subdivision (a)(3)(A) shall not be applicable to any producing unit or well that produces liquid hydrocarbons only, or liquid hydrocarbons associated with the production of gas, or gas produced associated with the production of liquid hydrocarbons; and (B) (i) Commencing no later than six (6) months after the date of first sale, and thereafter no later than the earlier of thirty (30) days after first payment is received or thirty (30) days after the sixty-day period within which the first purchaser is to make payment pursuant to §§ 15-74-501 and 15-74-601 - 15-74-603 , or a total of ninety (90) days after the end of the calendar month within which subsequent production is sold, each working interest owner or marketing party who has sold gas shall remit or cause to be remitted to the operator one-eighth (1/8) of the revenue realized or royalty moneys from gas sales computed at the mouth of the well, less all lawful deductions, including, but not limited to, all federal and state taxes levied upon the production or proceeds and shall indemnify and hold the other working interest owner free from any liability therefor. However, if any portion of the price received by a marketing party is subject to possible refund to the gas purchaser pursuant to the regulations, rules, or orders of any governmental authority, the refundable portion need not be included in the amount remitted to the operator for distribution hereunder until the possibility of refund has terminated. The funds or amounts as so remitted shall be held in trust by the operator for the account of the royalty owner or owners entitled thereto until distributed and paid as provided in this section. (ii) If any operator should fail or refuse to discharge its obligation to remit revenues in a timely manner as provided in this section, the working interest owner whose royalty owner's obligations have not been paid may, to facilitate payment, either: (a) File an application with the commission, setting forth sufficient facts to identify the well concerned and the responsible operator, requesting that the commission issue an order requiring the operator to appear at the next regularly scheduled hearing and show cause with respect to its failure to timely comply with the provisions of this section. Subsequent to the hearing, the commission shall impose upon an operator who has failed to meet its obligations hereunder such sanctions as are reasonably calculated to enforce compliance with this section. The sanctions shall include, but not be limited to, a penalty under § 15-74-709 . The commission shall have the authority to suspend the imposition of any sanction for a maximum period of sixty (60) days in order to allow the noncompliant the opportunity to furnish proof to the commission of his or her compliance with any commission order. All civil penalties levied by the commission as a result of this provision shall be collected by the commission and deposited into the State Treasury to the credit of the fund. The commission may promulgate such other rules as it deems appropriate and necessary to carry out the purposes of this section; or (b) File a legal proceeding or cause of action to compel the operator's compliance with the terms hereof. The operator shall reimburse the complaining working interest owner for any and all costs or expenses, including attorney's fees, incurred with respect to the proceeding or action. (iii) The operator shall not be held liable for failure to distribute royalty hereunder where its failure is due to the failure of a working interest owner to timely provide or cause to be provided the information and royalty moneys described in subdivision (a)(3)(A) of this section and this subdivision (a)(3)(B). Each working interest owner shall indemnify and hold the operator harmless for all costs, including reasonable attorney's fees, incurred as a result of the failure. (iv) The terms of this subdivision (a)(3)(B) shall not be applicable to any producing unit or well that produces liquid hydrocarbons only, or liquid hydrocarbons associated with the production of gas, or gas produced associated with the production of liquid hydrocarbons. (4) (A) Any working interest owner may arrange for the royalty moneys to be remitted directly to the operator by the purchaser to whom the gas is sold but, in that case, shall continue to hold the operator harmless for all costs, including reasonable attorney's fees, incurred as a result of failure to provide or cause to be provided the information and royalty moneys required by subdivisions (a)(3)(A) and (B) of this section. (B) The terms of this subdivision (a)(4) shall not be applicable to any producing unit or well that produces liquid hydrocarbons only, liquid hydrocarbons associated with the production of gas, or gas produced associated with the production of liquid hydrocarbons. (5) (A) On or before the thirtieth day of the next calendar month following its receipt of the royalty moneys as provided above, the operator shall distribute the moneys by check or by any form of electronic funds transfer to all royalty owners as provided in this subsection. The distribution may be made annually for the aggregate of up to twelve (12) months of accumulated royalty moneys where the aggregate amount due any royalty owner is at least ten dollars ($10.00), but less than one hundred fifty dollars ($150). However, upon written request by the royalty owner, the payment shall be made when the aggregate amount exceeds fifty dollars ($50.00). Accumulated amounts of less than ten dollars ($10.00) may be held but shall be paid when production ceases or by the payor of payment upon relinquishing responsibility. With respect to each such distribution, the operator shall provide the following to the royalty owner in paper form or make accessible in electronic form: (i) The name of the party entitled to payment; (ii) Identification of the wells for which payment is being made by well number or division order; (iii) The time period for which payment is made; (iv) The decimal interest of the party being paid; (v) The total production from each well for which payment is being made; (vi) The gross price received for each unit of production from each well; (vii) Any and all deductions from the payment which shall be itemized as to the nature of the deduction; and (viii) An address and telephone number at which additional information may be obtained and questions may be answered. (B) In the event that the operator stops the royalty payments for a period of more than sixty (60) days for any reason, the operator shall send a letter of explanation. (C) If a royalty interest owner requests information or answers to questions concerning a payment made pursuant to this subdivision (a)(5) and the request is made by certified mail with return receipt requested, the party making payment must respond to the request by certified mail with return receipt requested not later than forty-five (45) days after the request is received. (D) (i) If a royalty interest owner fails to receive an answer to his or her request for information or to his or her questions, the royalty interest owner may file a complaint with the commission on a form provided by the commission describing: (a) The information requested or the questions to be answered; (b) The party responsible for making the royalty payments; (c) The date the information or answers were requested; and (d) The date the requested information or answers were due from the paying party. (ii) Upon the filing of the complaint form, the commission shall issue an order requiring the party making the payments to appear at the next regularly scheduled hearing and to show cause for its failure to respond to the royalty interest owner's request for information or answers. (iii) If the party making the payments fails to respond to the royalty interest owner's inquiry after the complaint is filed or fails to show just cause for its failure to respond at the hearing, the commission shall impose such sanctions as are reasonably calculated to enforce compliance with this provision. (iv) These sanctions shall include, but not be limited to, a civil penalty of up to, but not more than, five hundred dollars ($500). The commission shall have the authority to suspend the imposition of any sanction for a maximum period of sixty (60) days in order to allow the noncompliant party the opportunity to furnish proof to the commission of his or her compliance with any commission order. (v) All civil penalties levied by the commission as a result of this provision shall be collected by the commission and shall be deposited into the State Treasury to the credit of the fund. (E) The commission may promulgate such other rules as it deems appropriate and necessary to carry out the purposes of this section. (F) The terms of this subdivision (a)(5) shall not be applicable to any producing unit or well that produces liquid hydrocarbons only, liquid hydrocarbons associated with the production of gas, or gas produced associated with the production of liquid hydrocarbons. (6) (A) Payment of one-eighth (1/8) of the revenue realized from the sale of gas as provided in this section shall fully discharge all obligations of the operator and other working interest owners with respect to the payment of one-eighth leasehold royalty or royalty as described under § 15-72-304(d) . (B) The terms of this subdivision (a)(6) shall not be applicable to any producing unit or well that produces liquid hydrocarbons only, liquid hydrocarbons associated with the production of gas, or gas produced associated with the production of liquid hydrocarbons. (7) (A) The operator shall be entitled to reimbursement from each working interest owner, whether or not that party is marketing gas, the party's fair and equitable share of the costs of distributing the one-eighth royalty required by this subsection. The amount of these charges shall be based upon the reasonable cost of administering these provisions and shall be subject to review by the commission upon application of any working interest owner. (B) The terms of this subdivision (a)(7) shall not be applicable to any producing unit or well that produces liquid hydrocarbons only, liquid hydrocarbons associated with the production of gas, or gas produced associated with the production of liquid hydrocarbons. (8) (A) Any gas taken in kind shall be excluded from royalty gas for which payment shall be made pursuant to this section, but the operator shall be promptly provided with written notification of the intent to exclude the gas. (B) Additionally, any gas taken by a working interest owner to correct an imbalance in production between the working interest owners, which was created or existed prior to April 1, 1985, shall also be excluded from royalty gas for which payment shall be made pursuant to this subsection. (C) Nothing contained in this section shall affect the obligations of working interest owners with respect to the payment of royalties, overriding royalties, production payments, or similar interests in excess of the one-eighth royalty required to be distributed under this section. (b) All operations, including, but not limited to, the commencement, drilling, or operation of a well upon any portion of a drilling unit for which an integration order has been entered shall be deemed for all purposes the conduct of operations upon each separately owned tract and interest in the drilling unit by the several owners thereof. The portion of the production allocated to the owner of each tract or interest included in a drilling unit formed by an integration order shall, when produced, be considered for all purposes as if it had been produced from the tract or interest by a well drilled thereon. Amended by Act 2019, No. 315,§ 1254, eff. 7/24/2019. Amended by Act 2019, No. 315,§ 1253, eff. 7/24/2019. Amended by Act 2019, No. 315,§ 1252, eff. 7/24/2019. Amended by Act 2019, No. 315,§ 1251, eff. 7/24/2019. Amended by Act 2013, No. 1062,§ 3, eff. 8/16/2013. Amended by Act 2013, No. 1062,§ 2, eff. 8/16/2013. Amended by Act 2013, No. 1062,§ 1, eff. 8/16/2013. Acts 1939, No. 105, § 15; 1963, No. 536, § 1; 1985, No. 272, § 1; A.S.A. 1947, § 53-115; Acts 1987, No. 94, §§ 1, 4; 2009, No. 1175, § 16.

(a) (1) The order of the Oil and Gas Commission creating a drilling unit shall provide that effective as of the commencement of the drilling of a well upon the drilling unit or, if a well capable of producing oil and gas in commercial quantities has already been completed upon some part of the lands included within the drilling unit, all royalty, overriding royalty, production payment, or similar interests in the drilling unit shall be integrated without the necessity of any additional order or action by the commission or owners. In the event any unit includes an unleased mineral interest upon the effective date thereof, one-eighth (1/8) of the unleased mineral interest shall be deemed as royalty for the purposes of this subsection. (2) For the purpose of making distribution to the owners of royalty, overriding royalty, production payment, or similar interests, there shall be allocated to each tract in the established drilling unit that percentage of the total production from such drilling unit, except any part thereof unavoidably lost or used for production or development purposes, which the area of each tract bears to the total area of the drilling unit. The interests shall be paid or delivered to each owner thereof in conformance with the provisions of the appropriate lease, agreement, or contract creating it, but computed upon the production allocated to each tract as hereinabove provided, rather than upon the actual production therefrom. (3) One-eighth (1/8) of all gas sold on or after the first day of the calendar month next ensuing after March 6, 1985, from any such unit shall be considered royalty gas, and the net proceeds received from the sale thereof shall be distributed to the owners of the marketable title in and to the leasehold royalty and royalty as defined under § 15-72-304(d) . Marketability of title shall be determined according to principles of real property law governing title to oil and gas interests. Unless all royalty owners within the drilling unit agree to a different method for distribution of the royalty, the distribution shall be coordinated by the operator of the well as follows: (A) (i) Within thirty (30) days of the receipt of the proceeds from gas sales, each working interest owner shall furnish to the working interest owner designated as operator, in a form acceptable to the operator, the following information: (a) The names and addresses of all owners of royalty under the working interest owner's leasehold interests; (b) Each royalty owner's tax identification or Social Security number and any other information needed to meet the requirements of the Internal Revenue Service or other governmental agencies; and (c) The fractional or decimal interests in the unit of each tract in which interests are owned and each royalty owner's fractional or decimal interest therein. (ii) Thereafter, each working interest owner shall notify the operator of any changes of ownership and provide the necessary information to facilitate the necessary changes promptly upon receiving proof thereof. (iii) If any working interest owner should fail or refuse to discharge its obligation to provide the information outlined in subdivision (a)(3)(A)(i) of this section in a timely manner, to facilitate payments, the operator may, at its option, either: (a) Notify the working interest owner by certified or registered mail of the name, address, and decimal interests of the royalty owner believed to be entitled to receive payments pursuant to the terms hereof under the working interest owner's leasehold on the basis of the best information then available to the operator. If the working interest owner fails to respond to the notification within thirty (30) days of the receipt thereof, the operator shall be entitled to pay royalty moneys in accordance with its prior notification and usual procedures. Further, the operator's payment in this manner shall constitute a complete defense to any claim or in any legal proceeding or cause of action and the responsible working interest owner shall indemnify and hold the operator harmless from all liability and reimburse the operator for any and all costs and expenses, including attorney's fees, interest, or penalty incurred with respect to the proceeding or action; or (b) File an application with the commission, setting forth sufficient facts to identify the well concerned and the responsible working interest owner, requesting that the commission issue an order requiring the working interest owner to appear at the next regularly scheduled hearing and show cause with respect to its failure to timely comply with the provisions of this section. Subsequent to the hearing, the commission shall impose upon a working interest owner who has failed to meet its obligations hereunder such sanctions as are reasonably calculated to enforce compliance with this section. These sanctions shall include, but not be limited to, a penalty under § 15-74-709 . The commission shall have the authority to suspend the imposition of any sanction for a maximum period of sixty (60) days in order to allow the noncompliant owner the opportunity to furnish proof to the commission of his or her compliance with any commission order. All penalties levied by the commission as a result of this provision shall be collected by the commission and shall be deposited into the State Treasury to the credit of the Oil and Gas Commission Fund. The commission may promulgate such other rules as it deems appropriate and necessary to carry out the purposes of this section. (iv) The terms of this subdivision (a)(3)(A) shall not be applicable to any producing unit or well that produces liquid hydrocarbons only, or liquid hydrocarbons associated with the production of gas, or gas produced associated with the production of liquid hydrocarbons; and (B) (i) Commencing no later than six (6) months after the date of first sale, and thereafter no later than the earlier of thirty (30) days after first payment is received or thirty (30) days after the sixty-day period within which the first purchaser is to make payment pursuant to §§ 15-74-501 and 15-74-601 - 15-74-603 , or a total of ninety (90) days after the end of the calendar month within which subsequent production is sold, each working interest owner or marketing party who has sold gas shall remit or cause to be remitted to the operator one-eighth (1/8) of the revenue realized or royalty moneys from gas sales computed at the mouth of the well, less all lawful deductions, including, but not limited to, all federal and state taxes levied upon the production or proceeds and shall indemnify and hold the other working interest owner free from any liability therefor. However, if any portion of the price received by a marketing party is subject to possible refund to the gas purchaser pursuant to the regulations, rules, or orders of any governmental authority, the refundable portion need not be included in the amount remitted to the operator for distribution hereunder until the possibility of refund has terminated. The funds or amounts as so remitted shall be held in trust by the operator for the account of the royalty owner or owners entitled thereto until distributed and paid as provided in this section. (ii) If any operator should fail or refuse to discharge its obligation to remit revenues in a timely manner as provided in this section, the working interest owner whose royalty owner's obligations have not been paid may, to facilitate payment, either: (a) File an application with the commission, setting forth sufficient facts to identify the well concerned and the responsible operator, requesting that the commission issue an order requiring the operator to appear at the next regularly scheduled hearing and show cause with respect to its failure to timely comply with the provisions of this section. Subsequent to the hearing, the commission shall impose upon an operator who has failed to meet its obligations hereunder such sanctions as are reasonably calculated to enforce compliance with this section. The sanctions shall include, but not be limited to, a penalty under § 15-74-709 . The commission shall have the authority to suspend the imposition of any sanction for a maximum period of sixty (60) days in order to allow the noncompliant the opportunity to furnish proof to the commission of his or her compliance with any commission order. All civil penalties levied by the commission as a result of this provision shall be collected by the commission and deposited into the State Treasury to the credit of the fund. The commission may promulgate such other rules as it deems appropriate and necessary to carry out the purposes of this section; or (b) File a legal proceeding or cause of action to compel the operator's compliance with the terms hereof. The operator shall reimburse the complaining working interest owner for any and all costs or expenses, including attorney's fees, incurred with respect to the proceeding or action. (iii) The operator shall not be held liable for failure to distribute royalty hereunder where its failure is due to the failure of a working interest owner to timely provide or cause to be provided the information and royalty moneys described in subdivision (a)(3)(A) of this section and this subdivision (a)(3)(B). Each working interest owner shall indemnify and hold the operator harmless for all costs, including reasonable attorney's fees, incurred as a result of the failure. (iv) The terms of this subdivision (a)(3)(B) shall not be applicable to any producing unit or well that produces liquid hydrocarbons only, or liquid hydrocarbons associated with the production of gas, or gas produced associated with the production of liquid hydrocarbons. (4) (A) Any working interest owner may arrange for the royalty moneys to be remitted directly to the operator by the purchaser to whom the gas is sold but, in that case, shall continue to hold the operator harmless for all costs, including reasonable attorney's fees, incurred as a result of failure to provide or cause to be provided the information and royalty moneys required by subdivisions (a)(3)(A) and (B) of this section. (B) The terms of this subdivision (a)(4) shall not be applicable to any producing unit or well that produces liquid hydrocarbons only, liquid hydrocarbons associated with the production of gas, or gas produced associated with the production of liquid hydrocarbons. (5) (A) On or before the thirtieth day of the next calendar month following its receipt of the royalty moneys as provided above, the operator shall distribute the moneys by check or by any form of electronic funds transfer to all royalty owners as provided in this subsection. The distribution may be made annually for the aggregate of up to twelve (12) months of accumulated royalty moneys where the aggregate amount due any royalty owner is at least ten dollars ($10.00), but less than one hundred fifty dollars ($150). However, upon written request by the royalty owner, the payment shall be made when the aggregate amount exceeds fifty dollars ($50.00). Accumulated amounts of less than ten dollars ($10.00) may be held but shall be paid when production ceases or by the payor of payment upon relinquishing responsibility. With respect to each such distribution, the operator shall provide the following to the royalty owner in paper form or make accessible in electronic form: (i) The name of the party entitled to payment; (ii) Identification of the wells for which payment is being made by well number or division order; (iii) The time period for which payment is made; (iv) The decimal interest of the party being paid; (v) The total production from each well for which payment is being made; (vi) The gross price received for each unit of production from each well; (vii) Any and all deductions from the payment which shall be itemized as to the nature of the deduction; and (viii) An address and telephone number at which additional information may be obtained and questions may be answered. (B) In the event that the operator stops the royalty payments for a period of more than sixty (60) days for any reason, the operator shall send a letter of explanation. (C) If a royalty interest owner requests information or answers to questions concerning a payment made pursuant to this subdivision (a)(5) and the request is made by certified mail with return receipt requested, the party making payment must respond to the request by certified mail with return receipt requested not later than forty-five (45) days after the request is received. (D) (i) If a royalty interest owner fails to receive an answer to his or her request for information or to his or her questions, the royalty interest owner may file a complaint with the commission on a form provided by the commission describing: (a) The information requested or the questions to be answered; (b) The party responsible for making the royalty payments; (c) The date the information or answers were requested; and (d) The date the requested information or answers were due from the paying party. (ii) Upon the filing of the complaint form, the commission shall issue an order requiring the party making the payments to appear at the next regularly scheduled hearing and to show cause for its failure to respond to the royalty interest owner's request for information or answers. (iii) If the party making the payments fails to respond to the royalty interest owner's inquiry after the complaint is filed or fails to show just cause for its failure to respond at the hearing, the commission shall impose such sanctions as are reasonably calculated to enforce compliance with this provision. (iv) These sanctions shall include, but not be limited to, a civil penalty of up to, but not more than, five hundred dollars ($500). The commission shall have the authority to suspend the imposition of any sanction for a maximum period of sixty (60) days in order to allow the noncompliant party the opportunity to furnish proof to the commission of his or her compliance with any commission order. (v) All civil penalties levied by the commission as a result of this provision shall be collected by the commission and shall be deposited into the State Treasury to the credit of the fund. (E) The commission may promulgate such other rules as it deems appropriate and necessary to carry out the purposes of this section. (F) The terms of this subdivision (a)(5) shall not be applicable to any producing unit or well that produces liquid hydrocarbons only, liquid hydrocarbons associated with the production of gas, or gas produced associated with the production of liquid hydrocarbons. (6) (A) Payment of one-eighth (1/8) of the revenue realized from the sale of gas as provided in this section shall fully discharge all obligations of the operator and other working interest owners with respect to the payment of one-eighth leasehold royalty or royalty as described under § 15-72-304(d) . (B) The terms of this subdivision (a)(6) shall not be applicable to any producing unit or well that produces liquid hydrocarbons only, liquid hydrocarbons associated with the production of gas, or gas produced associated with the production of liquid hydrocarbons. (7) (A) The operator shall be entitled to reimbursement from each working interest owner, whether or not that party is marketing gas, the party's fair and equitable share of the costs of distributing the one-eighth royalty required by this subsection. The amount of these charges shall be based upon the reasonable cost of administering these provisions and shall be subject to review by the commission upon application of any working interest owner. (B) The terms of this subdivision (a)(7) shall not be applicable to any producing unit or well that produces liquid hydrocarbons only, liquid hydrocarbons associated with the production of gas, or gas produced associated with the production of liquid hydrocarbons. (8) (A) Any gas taken in kind shall be excluded from royalty gas for which payment shall be made pursuant to this section, but the operator shall be promptly provided with written notification of the intent to exclude the gas. (B) Additionally, any gas taken by a working interest owner to correct an imbalance in production between the working interest owners, which was created or existed prior to April 1, 1985, shall also be excluded from royalty gas for which payment shall be made pursuant to this subsection. (C) Nothing contained in this section shall affect the obligations of working interest owners with respect to the payment of royalties, overriding royalties, production payments, or similar interests in excess of the one-eighth royalty required to be distributed under this section.

(1) The order of the Oil and Gas Commission creating a drilling unit shall provide that effective as of the commencement of the drilling of a well upon the drilling unit or, if a well capable of producing oil and gas in commercial quantities has already been completed upon some part of the lands included within the drilling unit, all royalty, overriding royalty, production payment, or similar interests in the drilling unit shall be integrated without the necessity of any additional order or action by the commission or owners. In the event any unit includes an unleased mineral interest upon the effective date thereof, one-eighth (1/8) of the unleased mineral interest shall be deemed as royalty for the purposes of this subsection.

(2) For the purpose of making distribution to the owners of royalty, overriding royalty, production payment, or similar interests, there shall be allocated to each tract in the established drilling unit that percentage of the total production from such drilling unit, except any part thereof unavoidably lost or used for production or development purposes, which the area of each tract bears to the total area of the drilling unit. The interests shall be paid or delivered to each owner thereof in conformance with the provisions of the appropriate lease, agreement, or contract creating it, but computed upon the production allocated to each tract as hereinabove provided, rather than upon the actual production therefrom.

(3) One-eighth (1/8) of all gas sold on or after the first day of the calendar month next ensuing after March 6, 1985, from any such unit shall be considered royalty gas, and the net proceeds received from the sale thereof shall be distributed to the owners of the marketable title in and to the leasehold royalty and royalty as defined under § 15-72-304(d) . Marketability of title shall be determined according to principles of real property law governing title to oil and gas interests. Unless all royalty owners within the drilling unit agree to a different method for distribution of the royalty, the distribution shall be coordinated by the operator of the well as follows: (A) (i) Within thirty (30) days of the receipt of the proceeds from gas sales, each working interest owner shall furnish to the working interest owner designated as operator, in a form acceptable to the operator, the following information: (a) The names and addresses of all owners of royalty under the working interest owner's leasehold interests; (b) Each royalty owner's tax identification or Social Security number and any other information needed to meet the requirements of the Internal Revenue Service or other governmental agencies; and (c) The fractional or decimal interests in the unit of each tract in which interests are owned and each royalty owner's fractional or decimal interest therein. (ii) Thereafter, each working interest owner shall notify the operator of any changes of ownership and provide the necessary information to facilitate the necessary changes promptly upon receiving proof thereof. (iii) If any working interest owner should fail or refuse to discharge its obligation to provide the information outlined in subdivision (a)(3)(A)(i) of this section in a timely manner, to facilitate payments, the operator may, at its option, either: (a) Notify the working interest owner by certified or registered mail of the name, address, and decimal interests of the royalty owner believed to be entitled to receive payments pursuant to the terms hereof under the working interest owner's leasehold on the basis of the best information then available to the operator. If the working interest owner fails to respond to the notification within thirty (30) days of the receipt thereof, the operator shall be entitled to pay royalty moneys in accordance with its prior notification and usual procedures. Further, the operator's payment in this manner shall constitute a complete defense to any claim or in any legal proceeding or cause of action and the responsible working interest owner shall indemnify and hold the operator harmless from all liability and reimburse the operator for any and all costs and expenses, including attorney's fees, interest, or penalty incurred with respect to the proceeding or action; or (b) File an application with the commission, setting forth sufficient facts to identify the well concerned and the responsible working interest owner, requesting that the commission issue an order requiring the working interest owner to appear at the next regularly scheduled hearing and show cause with respect to its failure to timely comply with the provisions of this section. Subsequent to the hearing, the commission shall impose upon a working interest owner who has failed to meet its obligations hereunder such sanctions as are reasonably calculated to enforce compliance with this section. These sanctions shall include, but not be limited to, a penalty under § 15-74-709 . The commission shall have the authority to suspend the imposition of any sanction for a maximum period of sixty (60) days in order to allow the noncompliant owner the opportunity to furnish proof to the commission of his or her compliance with any commission order. All penalties levied by the commission as a result of this provision shall be collected by the commission and shall be deposited into the State Treasury to the credit of the Oil and Gas Commission Fund. The commission may promulgate such other rules as it deems appropriate and necessary to carry out the purposes of this section. (iv) The terms of this subdivision (a)(3)(A) shall not be applicable to any producing unit or well that produces liquid hydrocarbons only, or liquid hydrocarbons associated with the production of gas, or gas produced associated with the production of liquid hydrocarbons; and (B) (i) Commencing no later than six (6) months after the date of first sale, and thereafter no later than the earlier of thirty (30) days after first payment is received or thirty (30) days after the sixty-day period within which the first purchaser is to make payment pursuant to §§ 15-74-501 and 15-74-601 - 15-74-603 , or a total of ninety (90) days after the end of the calendar month within which subsequent production is sold, each working interest owner or marketing party who has sold gas shall remit or cause to be remitted to the operator one-eighth (1/8) of the revenue realized or royalty moneys from gas sales computed at the mouth of the well, less all lawful deductions, including, but not limited to, all federal and state taxes levied upon the production or proceeds and shall indemnify and hold the other working interest owner free from any liability therefor. However, if any portion of the price received by a marketing party is subject to possible refund to the gas purchaser pursuant to the regulations, rules, or orders of any governmental authority, the refundable portion need not be included in the amount remitted to the operator for distribution hereunder until the possibility of refund has terminated. The funds or amounts as so remitted shall be held in trust by the operator for the account of the royalty owner or owners entitled thereto until distributed and paid as provided in this section. (ii) If any operator should fail or refuse to discharge its obligation to remit revenues in a timely manner as provided in this section, the working interest owner whose royalty owner's obligations have not been paid may, to facilitate payment, either: (a) File an application with the commission, setting forth sufficient facts to identify the well concerned and the responsible operator, requesting that the commission issue an order requiring the operator to appear at the next regularly scheduled hearing and show cause with respect to its failure to timely comply with the provisions of this section. Subsequent to the hearing, the commission shall impose upon an operator who has failed to meet its obligations hereunder such sanctions as are reasonably calculated to enforce compliance with this section. The sanctions shall include, but not be limited to, a penalty under § 15-74-709 . The commission shall have the authority to suspend the imposition of any sanction for a maximum period of sixty (60) days in order to allow the noncompliant the opportunity to furnish proof to the commission of his or her compliance with any commission order. All civil penalties levied by the commission as a result of this provision shall be collected by the commission and deposited into the State Treasury to the credit of the fund. The commission may promulgate such other rules as it deems appropriate and necessary to carry out the purposes of this section; or (b) File a legal proceeding or cause of action to compel the operator's compliance with the terms hereof. The operator shall reimburse the complaining working interest owner for any and all costs or expenses, including attorney's fees, incurred with respect to the proceeding or action. (iii) The operator shall not be held liable for failure to distribute royalty hereunder where its failure is due to the failure of a working interest owner to timely provide or cause to be provided the information and royalty moneys described in subdivision (a)(3)(A) of this section and this subdivision (a)(3)(B). Each working interest owner shall indemnify and hold the operator harmless for all costs, including reasonable attorney's fees, incurred as a result of the failure. (iv) The terms of this subdivision (a)(3)(B) shall not be applicable to any producing unit or well that produces liquid hydrocarbons only, or liquid hydrocarbons associated with the production of gas, or gas produced associated with the production of liquid hydrocarbons.

(A) (i) Within thirty (30) days of the receipt of the proceeds from gas sales, each working interest owner shall furnish to the working interest owner designated as operator, in a form acceptable to the operator, the following information: (a) The names and addresses of all owners of royalty under the working interest owner's leasehold interests; (b) Each royalty owner's tax identification or Social Security number and any other information needed to meet the requirements of the Internal Revenue Service or other governmental agencies; and (c) The fractional or decimal interests in the unit of each tract in which interests are owned and each royalty owner's fractional or decimal interest therein. (ii) Thereafter, each working interest owner shall notify the operator of any changes of ownership and provide the necessary information to facilitate the necessary changes promptly upon receiving proof thereof. (iii) If any working interest owner should fail or refuse to discharge its obligation to provide the information outlined in subdivision (a)(3)(A)(i) of this section in a timely manner, to facilitate payments, the operator may, at its option, either: (a) Notify the working interest owner by certified or registered mail of the name, address, and decimal interests of the royalty owner believed to be entitled to receive payments pursuant to the terms hereof under the working interest owner's leasehold on the basis of the best information then available to the operator. If the working interest owner fails to respond to the notification within thirty (30) days of the receipt thereof, the operator shall be entitled to pay royalty moneys in accordance with its prior notification and usual procedures. Further, the operator's payment in this manner shall constitute a complete defense to any claim or in any legal proceeding or cause of action and the responsible working interest owner shall indemnify and hold the operator harmless from all liability and reimburse the operator for any and all costs and expenses, including attorney's fees, interest, or penalty incurred with respect to the proceeding or action; or (b) File an application with the commission, setting forth sufficient facts to identify the well concerned and the responsible working interest owner, requesting that the commission issue an order requiring the working interest owner to appear at the next regularly scheduled hearing and show cause with respect to its failure to timely comply with the provisions of this section. Subsequent to the hearing, the commission shall impose upon a working interest owner who has failed to meet its obligations hereunder such sanctions as are reasonably calculated to enforce compliance with this section. These sanctions shall include, but not be limited to, a penalty under § 15-74-709 . The commission shall have the authority to suspend the imposition of any sanction for a maximum period of sixty (60) days in order to allow the noncompliant owner the opportunity to furnish proof to the commission of his or her compliance with any commission order. All penalties levied by the commission as a result of this provision shall be collected by the commission and shall be deposited into the State Treasury to the credit of the Oil and Gas Commission Fund. The commission may promulgate such other rules as it deems appropriate and necessary to carry out the purposes of this section. (iv) The terms of this subdivision (a)(3)(A) shall not be applicable to any producing unit or well that produces liquid hydrocarbons only, or liquid hydrocarbons associated with the production of gas, or gas produced associated with the production of liquid hydrocarbons; and

(i) Within thirty (30) days of the receipt of the proceeds from gas sales, each working interest owner shall furnish to the working interest owner designated as operator, in a form acceptable to the operator, the following information: (a) The names and addresses of all owners of royalty under the working interest owner's leasehold interests; (b) Each royalty owner's tax identification or Social Security number and any other information needed to meet the requirements of the Internal Revenue Service or other governmental agencies; and (c) The fractional or decimal interests in the unit of each tract in which interests are owned and each royalty owner's fractional or decimal interest therein.

(a) The names and addresses of all owners of royalty under the working interest owner's leasehold interests;

(b) Each royalty owner's tax identification or Social Security number and any other information needed to meet the requirements of the Internal Revenue Service or other governmental agencies; and

(c) The fractional or decimal interests in the unit of each tract in which interests are owned and each royalty owner's fractional or decimal interest therein.

(ii) Thereafter, each working interest owner shall notify the operator of any changes of ownership and provide the necessary information to facilitate the necessary changes promptly upon receiving proof thereof.

(iii) If any working interest owner should fail or refuse to discharge its obligation to provide the information outlined in subdivision (a)(3)(A)(i) of this section in a timely manner, to facilitate payments, the operator may, at its option, either: (a) Notify the working interest owner by certified or registered mail of the name, address, and decimal interests of the royalty owner believed to be entitled to receive payments pursuant to the terms hereof under the working interest owner's leasehold on the basis of the best information then available to the operator. If the working interest owner fails to respond to the notification within thirty (30) days of the receipt thereof, the operator shall be entitled to pay royalty moneys in accordance with its prior notification and usual procedures. Further, the operator's payment in this manner shall constitute a complete defense to any claim or in any legal proceeding or cause of action and the responsible working interest owner shall indemnify and hold the operator harmless from all liability and reimburse the operator for any and all costs and expenses, including attorney's fees, interest, or penalty incurred with respect to the proceeding or action; or (b) File an application with the commission, setting forth sufficient facts to identify the well concerned and the responsible working interest owner, requesting that the commission issue an order requiring the working interest owner to appear at the next regularly scheduled hearing and show cause with respect to its failure to timely comply with the provisions of this section. Subsequent to the hearing, the commission shall impose upon a working interest owner who has failed to meet its obligations hereunder such sanctions as are reasonably calculated to enforce compliance with this section. These sanctions shall include, but not be limited to, a penalty under § 15-74-709 . The commission shall have the authority to suspend the imposition of any sanction for a maximum period of sixty (60) days in order to allow the noncompliant owner the opportunity to furnish proof to the commission of his or her compliance with any commission order. All penalties levied by the commission as a result of this provision shall be collected by the commission and shall be deposited into the State Treasury to the credit of the Oil and Gas Commission Fund. The commission may promulgate such other rules as it deems appropriate and necessary to carry out the purposes of this section.

(a) Notify the working interest owner by certified or registered mail of the name, address, and decimal interests of the royalty owner believed to be entitled to receive payments pursuant to the terms hereof under the working interest owner's leasehold on the basis of the best information then available to the operator. If the working interest owner fails to respond to the notification within thirty (30) days of the receipt thereof, the operator shall be entitled to pay royalty moneys in accordance with its prior notification and usual procedures. Further, the operator's payment in this manner shall constitute a complete defense to any claim or in any legal proceeding or cause of action and the responsible working interest owner shall indemnify and hold the operator harmless from all liability and reimburse the operator for any and all costs and expenses, including attorney's fees, interest, or penalty incurred with respect to the proceeding or action; or

(b) File an application with the commission, setting forth sufficient facts to identify the well concerned and the responsible working interest owner, requesting that the commission issue an order requiring the working interest owner to appear at the next regularly scheduled hearing and show cause with respect to its failure to timely comply with the provisions of this section. Subsequent to the hearing, the commission shall impose upon a working interest owner who has failed to meet its obligations hereunder such sanctions as are reasonably calculated to enforce compliance with this section. These sanctions shall include, but not be limited to, a penalty under § 15-74-709 . The commission shall have the authority to suspend the imposition of any sanction for a maximum period of sixty (60) days in order to allow the noncompliant owner the opportunity to furnish proof to the commission of his or her compliance with any commission order. All penalties levied by the commission as a result of this provision shall be collected by the commission and shall be deposited into the State Treasury to the credit of the Oil and Gas Commission Fund. The commission may promulgate such other rules as it deems appropriate and necessary to carry out the purposes of this section.

(iv) The terms of this subdivision (a)(3)(A) shall not be applicable to any producing unit or well that produces liquid hydrocarbons only, or liquid hydrocarbons associated with the production of gas, or gas produced associated with the production of liquid hydrocarbons; and

(B) (i) Commencing no later than six (6) months after the date of first sale, and thereafter no later than the earlier of thirty (30) days after first payment is received or thirty (30) days after the sixty-day period within which the first purchaser is to make payment pursuant to §§ 15-74-501 and 15-74-601 - 15-74-603 , or a total of ninety (90) days after the end of the calendar month within which subsequent production is sold, each working interest owner or marketing party who has sold gas shall remit or cause to be remitted to the operator one-eighth (1/8) of the revenue realized or royalty moneys from gas sales computed at the mouth of the well, less all lawful deductions, including, but not limited to, all federal and state taxes levied upon the production or proceeds and shall indemnify and hold the other working interest owner free from any liability therefor. However, if any portion of the price received by a marketing party is subject to possible refund to the gas purchaser pursuant to the regulations, rules, or orders of any governmental authority, the refundable portion need not be included in the amount remitted to the operator for distribution hereunder until the possibility of refund has terminated. The funds or amounts as so remitted shall be held in trust by the operator for the account of the royalty owner or owners entitled thereto until distributed and paid as provided in this section. (ii) If any operator should fail or refuse to discharge its obligation to remit revenues in a timely manner as provided in this section, the working interest owner whose royalty owner's obligations have not been paid may, to facilitate payment, either: (a) File an application with the commission, setting forth sufficient facts to identify the well concerned and the responsible operator, requesting that the commission issue an order requiring the operator to appear at the next regularly scheduled hearing and show cause with respect to its failure to timely comply with the provisions of this section. Subsequent to the hearing, the commission shall impose upon an operator who has failed to meet its obligations hereunder such sanctions as are reasonably calculated to enforce compliance with this section. The sanctions shall include, but not be limited to, a penalty under § 15-74-709 . The commission shall have the authority to suspend the imposition of any sanction for a maximum period of sixty (60) days in order to allow the noncompliant the opportunity to furnish proof to the commission of his or her compliance with any commission order. All civil penalties levied by the commission as a result of this provision shall be collected by the commission and deposited into the State Treasury to the credit of the fund. The commission may promulgate such other rules as it deems appropriate and necessary to carry out the purposes of this section; or (b) File a legal proceeding or cause of action to compel the operator's compliance with the terms hereof. The operator shall reimburse the complaining working interest owner for any and all costs or expenses, including attorney's fees, incurred with respect to the proceeding or action. (iii) The operator shall not be held liable for failure to distribute royalty hereunder where its failure is due to the failure of a working interest owner to timely provide or cause to be provided the information and royalty moneys described in subdivision (a)(3)(A) of this section and this subdivision (a)(3)(B). Each working interest owner shall indemnify and hold the operator harmless for all costs, including reasonable attorney's fees, incurred as a result of the failure. (iv) The terms of this subdivision (a)(3)(B) shall not be applicable to any producing unit or well that produces liquid hydrocarbons only, or liquid hydrocarbons associated with the production of gas, or gas produced associated with the production of liquid hydrocarbons.

(i) Commencing no later than six (6) months after the date of first sale, and thereafter no later than the earlier of thirty (30) days after first payment is received or thirty (30) days after the sixty-day period within which the first purchaser is to make payment pursuant to §§ 15-74-501 and 15-74-601 - 15-74-603 , or a total of ninety (90) days after the end of the calendar month within which subsequent production is sold, each working interest owner or marketing party who has sold gas shall remit or cause to be remitted to the operator one-eighth (1/8) of the revenue realized or royalty moneys from gas sales computed at the mouth of the well, less all lawful deductions, including, but not limited to, all federal and state taxes levied upon the production or proceeds and shall indemnify and hold the other working interest owner free from any liability therefor. However, if any portion of the price received by a marketing party is subject to possible refund to the gas purchaser pursuant to the regulations, rules, or orders of any governmental authority, the refundable portion need not be included in the amount remitted to the operator for distribution hereunder until the possibility of refund has terminated. The funds or amounts as so remitted shall be held in trust by the operator for the account of the royalty owner or owners entitled thereto until distributed and paid as provided in this section.

(ii) If any operator should fail or refuse to discharge its obligation to remit revenues in a timely manner as provided in this section, the working interest owner whose royalty owner's obligations have not been paid may, to facilitate payment, either: (a) File an application with the commission, setting forth sufficient facts to identify the well concerned and the responsible operator, requesting that the commission issue an order requiring the operator to appear at the next regularly scheduled hearing and show cause with respect to its failure to timely comply with the provisions of this section. Subsequent to the hearing, the commission shall impose upon an operator who has failed to meet its obligations hereunder such sanctions as are reasonably calculated to enforce compliance with this section. The sanctions shall include, but not be limited to, a penalty under § 15-74-709 . The commission shall have the authority to suspend the imposition of any sanction for a maximum period of sixty (60) days in order to allow the noncompliant the opportunity to furnish proof to the commission of his or her compliance with any commission order. All civil penalties levied by the commission as a result of this provision shall be collected by the commission and deposited into the State Treasury to the credit of the fund. The commission may promulgate such other rules as it deems appropriate and necessary to carry out the purposes of this section; or (b) File a legal proceeding or cause of action to compel the operator's compliance with the terms hereof. The operator shall reimburse the complaining working interest owner for any and all costs or expenses, including attorney's fees, incurred with respect to the proceeding or action.

(a) File an application with the commission, setting forth sufficient facts to identify the well concerned and the responsible operator, requesting that the commission issue an order requiring the operator to appear at the next regularly scheduled hearing and show cause with respect to its failure to timely comply with the provisions of this section. Subsequent to the hearing, the commission shall impose upon an operator who has failed to meet its obligations hereunder such sanctions as are reasonably calculated to enforce compliance with this section. The sanctions shall include, but not be limited to, a penalty under § 15-74-709 . The commission shall have the authority to suspend the imposition of any sanction for a maximum period of sixty (60) days in order to allow the noncompliant the opportunity to furnish proof to the commission of his or her compliance with any commission order. All civil penalties levied by the commission as a result of this provision shall be collected by the commission and deposited into the State Treasury to the credit of the fund. The commission may promulgate such other rules as it deems appropriate and necessary to carry out the purposes of this section; or

(b) File a legal proceeding or cause of action to compel the operator's compliance with the terms hereof. The operator shall reimburse the complaining working interest owner for any and all costs or expenses, including attorney's fees, incurred with respect to the proceeding or action.

(iii) The operator shall not be held liable for failure to distribute royalty hereunder where its failure is due to the failure of a working interest owner to timely provide or cause to be provided the information and royalty moneys described in subdivision (a)(3)(A) of this section and this subdivision (a)(3)(B). Each working interest owner shall indemnify and hold the operator harmless for all costs, including reasonable attorney's fees, incurred as a result of the failure.

(iv) The terms of this subdivision (a)(3)(B) shall not be applicable to any producing unit or well that produces liquid hydrocarbons only, or liquid hydrocarbons associated with the production of gas, or gas produced associated with the production of liquid hydrocarbons.

(4) (A) Any working interest owner may arrange for the royalty moneys to be remitted directly to the operator by the purchaser to whom the gas is sold but, in that case, shall continue to hold the operator harmless for all costs, including reasonable attorney's fees, incurred as a result of failure to provide or cause to be provided the information and royalty moneys required by subdivisions (a)(3)(A) and (B) of this section. (B) The terms of this subdivision (a)(4) shall not be applicable to any producing unit or well that produces liquid hydrocarbons only, liquid hydrocarbons associated with the production of gas, or gas produced associated with the production of liquid hydrocarbons.

(A) Any working interest owner may arrange for the royalty moneys to be remitted directly to the operator by the purchaser to whom the gas is sold but, in that case, shall continue to hold the operator harmless for all costs, including reasonable attorney's fees, incurred as a result of failure to provide or cause to be provided the information and royalty moneys required by subdivisions (a)(3)(A) and (B) of this section.

(B) The terms of this subdivision (a)(4) shall not be applicable to any producing unit or well that produces liquid hydrocarbons only, liquid hydrocarbons associated with the production of gas, or gas produced associated with the production of liquid hydrocarbons.

(5) (A) On or before the thirtieth day of the next calendar month following its receipt of the royalty moneys as provided above, the operator shall distribute the moneys by check or by any form of electronic funds transfer to all royalty owners as provided in this subsection. The distribution may be made annually for the aggregate of up to twelve (12) months of accumulated royalty moneys where the aggregate amount due any royalty owner is at least ten dollars ($10.00), but less than one hundred fifty dollars ($150). However, upon written request by the royalty owner, the payment shall be made when the aggregate amount exceeds fifty dollars ($50.00). Accumulated amounts of less than ten dollars ($10.00) may be held but shall be paid when production ceases or by the payor of payment upon relinquishing responsibility. With respect to each such distribution, the operator shall provide the following to the royalty owner in paper form or make accessible in electronic form: (i) The name of the party entitled to payment; (ii) Identification of the wells for which payment is being made by well number or division order; (iii) The time period for which payment is made; (iv) The decimal interest of the party being paid; (v) The total production from each well for which payment is being made; (vi) The gross price received for each unit of production from each well; (vii) Any and all deductions from the payment which shall be itemized as to the nature of the deduction; and (viii) An address and telephone number at which additional information may be obtained and questions may be answered. (B) In the event that the operator stops the royalty payments for a period of more than sixty (60) days for any reason, the operator shall send a letter of explanation. (C) If a royalty interest owner requests information or answers to questions concerning a payment made pursuant to this subdivision (a)(5) and the request is made by certified mail with return receipt requested, the party making payment must respond to the request by certified mail with return receipt requested not later than forty-five (45) days after the request is received. (D) (i) If a royalty interest owner fails to receive an answer to his or her request for information or to his or her questions, the royalty interest owner may file a complaint with the commission on a form provided by the commission describing: (a) The information requested or the questions to be answered; (b) The party responsible for making the royalty payments; (c) The date the information or answers were requested; and (d) The date the requested information or answers were due from the paying party. (ii) Upon the filing of the complaint form, the commission shall issue an order requiring the party making the payments to appear at the next regularly scheduled hearing and to show cause for its failure to respond to the royalty interest owner's request for information or answers. (iii) If the party making the payments fails to respond to the royalty interest owner's inquiry after the complaint is filed or fails to show just cause for its failure to respond at the hearing, the commission shall impose such sanctions as are reasonably calculated to enforce compliance with this provision. (iv) These sanctions shall include, but not be limited to, a civil penalty of up to, but not more than, five hundred dollars ($500). The commission shall have the authority to suspend the imposition of any sanction for a maximum period of sixty (60) days in order to allow the noncompliant party the opportunity to furnish proof to the commission of his or her compliance with any commission order. (v) All civil penalties levied by the commission as a result of this provision shall be collected by the commission and shall be deposited into the State Treasury to the credit of the fund. (E) The commission may promulgate such other rules as it deems appropriate and necessary to carry out the purposes of this section. (F) The terms of this subdivision (a)(5) shall not be applicable to any producing unit or well that produces liquid hydrocarbons only, liquid hydrocarbons associated with the production of gas, or gas produced associated with the production of liquid hydrocarbons.

(A) On or before the thirtieth day of the next calendar month following its receipt of the royalty moneys as provided above, the operator shall distribute the moneys by check or by any form of electronic funds transfer to all royalty owners as provided in this subsection. The distribution may be made annually for the aggregate of up to twelve (12) months of accumulated royalty moneys where the aggregate amount due any royalty owner is at least ten dollars ($10.00), but less than one hundred fifty dollars ($150). However, upon written request by the royalty owner, the payment shall be made when the aggregate amount exceeds fifty dollars ($50.00). Accumulated amounts of less than ten dollars ($10.00) may be held but shall be paid when production ceases or by the payor of payment upon relinquishing responsibility. With respect to each such distribution, the operator shall provide the following to the royalty owner in paper form or make accessible in electronic form: (i) The name of the party entitled to payment; (ii) Identification of the wells for which payment is being made by well number or division order; (iii) The time period for which payment is made; (iv) The decimal interest of the party being paid; (v) The total production from each well for which payment is being made; (vi) The gross price received for each unit of production from each well; (vii) Any and all deductions from the payment which shall be itemized as to the nature of the deduction; and (viii) An address and telephone number at which additional information may be obtained and questions may be answered.

(i) The name of the party entitled to payment;

(ii) Identification of the wells for which payment is being made by well number or division order;

(iii) The time period for which payment is made;

(iv) The decimal interest of the party being paid;

(v) The total production from each well for which payment is being made;

(vi) The gross price received for each unit of production from each well;

(vii) Any and all deductions from the payment which shall be itemized as to the nature of the deduction; and

(viii) An address and telephone number at which additional information may be obtained and questions may be answered.

(B) In the event that the operator stops the royalty payments for a period of more than sixty (60) days for any reason, the operator shall send a letter of explanation.

(C) If a royalty interest owner requests information or answers to questions concerning a payment made pursuant to this subdivision (a)(5) and the request is made by certified mail with return receipt requested, the party making payment must respond to the request by certified mail with return receipt requested not later than forty-five (45) days after the request is received.

(D) (i) If a royalty interest owner fails to receive an answer to his or her request for information or to his or her questions, the royalty interest owner may file a complaint with the commission on a form provided by the commission describing: (a) The information requested or the questions to be answered; (b) The party responsible for making the royalty payments; (c) The date the information or answers were requested; and (d) The date the requested information or answers were due from the paying party. (ii) Upon the filing of the complaint form, the commission shall issue an order requiring the party making the payments to appear at the next regularly scheduled hearing and to show cause for its failure to respond to the royalty interest owner's request for information or answers. (iii) If the party making the payments fails to respond to the royalty interest owner's inquiry after the complaint is filed or fails to show just cause for its failure to respond at the hearing, the commission shall impose such sanctions as are reasonably calculated to enforce compliance with this provision. (iv) These sanctions shall include, but not be limited to, a civil penalty of up to, but not more than, five hundred dollars ($500). The commission shall have the authority to suspend the imposition of any sanction for a maximum period of sixty (60) days in order to allow the noncompliant party the opportunity to furnish proof to the commission of his or her compliance with any commission order. (v) All civil penalties levied by the commission as a result of this provision shall be collected by the commission and shall be deposited into the State Treasury to the credit of the fund.

(i) If a royalty interest owner fails to receive an answer to his or her request for information or to his or her questions, the royalty interest owner may file a complaint with the commission on a form provided by the commission describing: (a) The information requested or the questions to be answered; (b) The party responsible for making the royalty payments; (c) The date the information or answers were requested; and (d) The date the requested information or answers were due from the paying party.

(a) The information requested or the questions to be answered;

(b) The party responsible for making the royalty payments;

(c) The date the information or answers were requested; and

(d) The date the requested information or answers were due from the paying party.

(ii) Upon the filing of the complaint form, the commission shall issue an order requiring the party making the payments to appear at the next regularly scheduled hearing and to show cause for its failure to respond to the royalty interest owner's request for information or answers.

(iii) If the party making the payments fails to respond to the royalty interest owner's inquiry after the complaint is filed or fails to show just cause for its failure to respond at the hearing, the commission shall impose such sanctions as are reasonably calculated to enforce compliance with this provision.

(iv) These sanctions shall include, but not be limited to, a civil penalty of up to, but not more than, five hundred dollars ($500). The commission shall have the authority to suspend the imposition of any sanction for a maximum period of sixty (60) days in order to allow the noncompliant party the opportunity to furnish proof to the commission of his or her compliance with any commission order.

(v) All civil penalties levied by the commission as a result of this provision shall be collected by the commission and shall be deposited into the State Treasury to the credit of the fund.

(E) The commission may promulgate such other rules as it deems appropriate and necessary to carry out the purposes of this section.

(F) The terms of this subdivision (a)(5) shall not be applicable to any producing unit or well that produces liquid hydrocarbons only, liquid hydrocarbons associated with the production of gas, or gas produced associated with the production of liquid hydrocarbons.

(6) (A) Payment of one-eighth (1/8) of the revenue realized from the sale of gas as provided in this section shall fully discharge all obligations of the operator and other working interest owners with respect to the payment of one-eighth leasehold royalty or royalty as described under § 15-72-304(d) . (B) The terms of this subdivision (a)(6) shall not be applicable to any producing unit or well that produces liquid hydrocarbons only, liquid hydrocarbons associated with the production of gas, or gas produced associated with the production of liquid hydrocarbons.

(A) Payment of one-eighth (1/8) of the revenue realized from the sale of gas as provided in this section shall fully discharge all obligations of the operator and other working interest owners with respect to the payment of one-eighth leasehold royalty or royalty as described under § 15-72-304(d) .

(B) The terms of this subdivision (a)(6) shall not be applicable to any producing unit or well that produces liquid hydrocarbons only, liquid hydrocarbons associated with the production of gas, or gas produced associated with the production of liquid hydrocarbons.

(7) (A) The operator shall be entitled to reimbursement from each working interest owner, whether or not that party is marketing gas, the party's fair and equitable share of the costs of distributing the one-eighth royalty required by this subsection. The amount of these charges shall be based upon the reasonable cost of administering these provisions and shall be subject to review by the commission upon application of any working interest owner. (B) The terms of this subdivision (a)(7) shall not be applicable to any producing unit or well that produces liquid hydrocarbons only, liquid hydrocarbons associated with the production of gas, or gas produced associated with the production of liquid hydrocarbons.

(A) The operator shall be entitled to reimbursement from each working interest owner, whether or not that party is marketing gas, the party's fair and equitable share of the costs of distributing the one-eighth royalty required by this subsection. The amount of these charges shall be based upon the reasonable cost of administering these provisions and shall be subject to review by the commission upon application of any working interest owner.

(B) The terms of this subdivision (a)(7) shall not be applicable to any producing unit or well that produces liquid hydrocarbons only, liquid hydrocarbons associated with the production of gas, or gas produced associated with the production of liquid hydrocarbons.

(8) (A) Any gas taken in kind shall be excluded from royalty gas for which payment shall be made pursuant to this section, but the operator shall be promptly provided with written notification of the intent to exclude the gas. (B) Additionally, any gas taken by a working interest owner to correct an imbalance in production between the working interest owners, which was created or existed prior to April 1, 1985, shall also be excluded from royalty gas for which payment shall be made pursuant to this subsection. (C) Nothing contained in this section shall affect the obligations of working interest owners with respect to the payment of royalties, overriding royalties, production payments, or similar interests in excess of the one-eighth royalty required to be distributed under this section.

(A) Any gas taken in kind shall be excluded from royalty gas for which payment shall be made pursuant to this section, but the operator shall be promptly provided with written notification of the intent to exclude the gas.

(B) Additionally, any gas taken by a working interest owner to correct an imbalance in production between the working interest owners, which was created or existed prior to April 1, 1985, shall also be excluded from royalty gas for which payment shall be made pursuant to this subsection.

(C) Nothing contained in this section shall affect the obligations of working interest owners with respect to the payment of royalties, overriding royalties, production payments, or similar interests in excess of the one-eighth royalty required to be distributed under this section.

(b) All operations, including, but not limited to, the commencement, drilling, or operation of a well upon any portion of a drilling unit for which an integration order has been entered shall be deemed for all purposes the conduct of operations upon each separately owned tract and interest in the drilling unit by the several owners thereof. The portion of the production allocated to the owner of each tract or interest included in a drilling unit formed by an integration order shall, when produced, be considered for all purposes as if it had been produced from the tract or interest by a well drilled thereon.

Amended by Act 2019, No. 315,§ 1254, eff. 7/24/2019.

Amended by Act 2019, No. 315,§ 1253, eff. 7/24/2019.

Amended by Act 2019, No. 315,§ 1252, eff. 7/24/2019.

Amended by Act 2019, No. 315,§ 1251, eff. 7/24/2019.

Amended by Act 2013, No. 1062,§ 3, eff. 8/16/2013.

Amended by Act 2013, No. 1062,§ 2, eff. 8/16/2013.

Amended by Act 2013, No. 1062,§ 1, eff. 8/16/2013.

Acts 1939, No. 105, § 15; 1963, No. 536, § 1; 1985, No. 272, § 1; A.S.A. 1947, § 53-115; Acts 1987, No. 94, §§ 1, 4; 2009, No. 1175, § 16.
Ark. Code Ann. § 15-31-106 — AR Code / Title 15 / Chapter 31 / Subchapter 1 / Section 15-31-106
Functions, powers, and duties
Status: in_force

(a) The functions, powers, and duties of the Arkansas Forestry Commission shall be to: (1) [Repealed.] (2) Formulate and put into effect policies, plans, and reasonable rules as may be necessary to achieve the mission of the commission; (3) [Repealed.] (4) Assemble and publicize all available information pertinent to industrial opportunities in forestry, both in respect to particular sections and the state as a whole, including the varieties of trees and the products producible therefrom, the power and water resources, transportation facilities, available markets, labor supply, and industrial sites, all to the end of encouraging both the establishment of new industrial enterprises utilizing forest resources and the expansion of existing enterprises; (5) Assist private landowners, and when called upon, the agency of the state having control of the state park system, in managing their timber under approved forestry practices; (6) Furnish educational information in forestry matters for land- owners and timber processors, and civic, school, and other interested groups, including the preparation and dissemination, through various available media, of information relating to fire prevention and control, detection and control of disease and insect infestation, and approved methods of timber harvesting and artificial reforestation; (7) Originate and conduct research in forestry matters and cooperate with other agencies, both public and private, in any such projects; (8) Purchase, lease, rent, or sell and receive bequests or donations of any real, corporeal, or personal property, and, when necessary to properly carry out its functions, to acquire any real property by the exercise of its right of eminent domain, such right being vested in the commission; (9) Contract and be contracted with; and (10) Take such other action, not inconsistent with law, as it may deem necessary or desirable to carry out the intent and purposes of this chapter. (b) (1) The commission shall also have and be subject to all other functions, powers, and duties as by this chapter are conferred and imposed upon it. (2) For the purpose of regulating the commission's own procedure and carrying out its transferred or newly provided functions, the commission shall have the authority, from time to time, to make and amend and enforce all reasonable rules not inconsistent with law which will aid in the performance of any of the functions, powers, or duties conferred or imposed upon it by law. Amended by Act 2019, No. 315,§ 1150, eff. 7/24/2019. Amended by Act 2019, No. 315,§ 1149, eff. 7/24/2019. Amended by Act 2019, No. 910,§ 92, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 91, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 90, eff. 7/1/2019. Acts 1931, No. 234, § 2; Pope's Dig., § 12196; Acts 1953, No. 42, §§ 4, 5; 1955, No. 99, § 2; 1963, No. 249, § 3; A.S.A. 1947, §§ 9-701, 9-701.4, 9-701.5; Acts 1999, No. 27, § 3.

(a) The functions, powers, and duties of the Arkansas Forestry Commission shall be to: (1) [Repealed.] (2) Formulate and put into effect policies, plans, and reasonable rules as may be necessary to achieve the mission of the commission; (3) [Repealed.] (4) Assemble and publicize all available information pertinent to industrial opportunities in forestry, both in respect to particular sections and the state as a whole, including the varieties of trees and the products producible therefrom, the power and water resources, transportation facilities, available markets, labor supply, and industrial sites, all to the end of encouraging both the establishment of new industrial enterprises utilizing forest resources and the expansion of existing enterprises; (5) Assist private landowners, and when called upon, the agency of the state having control of the state park system, in managing their timber under approved forestry practices; (6) Furnish educational information in forestry matters for land- owners and timber processors, and civic, school, and other interested groups, including the preparation and dissemination, through various available media, of information relating to fire prevention and control, detection and control of disease and insect infestation, and approved methods of timber harvesting and artificial reforestation; (7) Originate and conduct research in forestry matters and cooperate with other agencies, both public and private, in any such projects; (8) Purchase, lease, rent, or sell and receive bequests or donations of any real, corporeal, or personal property, and, when necessary to properly carry out its functions, to acquire any real property by the exercise of its right of eminent domain, such right being vested in the commission; (9) Contract and be contracted with; and (10) Take such other action, not inconsistent with law, as it may deem necessary or desirable to carry out the intent and purposes of this chapter.

(1) [Repealed.]

(2) Formulate and put into effect policies, plans, and reasonable rules as may be necessary to achieve the mission of the commission;

(3) [Repealed.]

(4) Assemble and publicize all available information pertinent to industrial opportunities in forestry, both in respect to particular sections and the state as a whole, including the varieties of trees and the products producible therefrom, the power and water resources, transportation facilities, available markets, labor supply, and industrial sites, all to the end of encouraging both the establishment of new industrial enterprises utilizing forest resources and the expansion of existing enterprises;

(5) Assist private landowners, and when called upon, the agency of the state having control of the state park system, in managing their timber under approved forestry practices;

(6) Furnish educational information in forestry matters for land- owners and timber processors, and civic, school, and other interested groups, including the preparation and dissemination, through various available media, of information relating to fire prevention and control, detection and control of disease and insect infestation, and approved methods of timber harvesting and artificial reforestation;

(7) Originate and conduct research in forestry matters and cooperate with other agencies, both public and private, in any such projects;

(8) Purchase, lease, rent, or sell and receive bequests or donations of any real, corporeal, or personal property, and, when necessary to properly carry out its functions, to acquire any real property by the exercise of its right of eminent domain, such right being vested in the commission;

(9) Contract and be contracted with; and

(10) Take such other action, not inconsistent with law, as it may deem necessary or desirable to carry out the intent and purposes of this chapter.

(b) (1) The commission shall also have and be subject to all other functions, powers, and duties as by this chapter are conferred and imposed upon it. (2) For the purpose of regulating the commission's own procedure and carrying out its transferred or newly provided functions, the commission shall have the authority, from time to time, to make and amend and enforce all reasonable rules not inconsistent with law which will aid in the performance of any of the functions, powers, or duties conferred or imposed upon it by law.

(1) The commission shall also have and be subject to all other functions, powers, and duties as by this chapter are conferred and imposed upon it.

(2) For the purpose of regulating the commission's own procedure and carrying out its transferred or newly provided functions, the commission shall have the authority, from time to time, to make and amend and enforce all reasonable rules not inconsistent with law which will aid in the performance of any of the functions, powers, or duties conferred or imposed upon it by law.

Amended by Act 2019, No. 315,§ 1150, eff. 7/24/2019.

Amended by Act 2019, No. 315,§ 1149, eff. 7/24/2019.

Amended by Act 2019, No. 910,§ 92, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 91, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 90, eff. 7/1/2019.

Acts 1931, No. 234, § 2; Pope's Dig., § 12196; Acts 1953, No. 42, §§ 4, 5; 1955, No. 99, § 2; 1963, No. 249, § 3; A.S.A. 1947, §§ 9-701, 9-701.4, 9-701.5; Acts 1999, No. 27, § 3.
Ark. Code Ann. § 15-4-3713 — AR Code / Title 15 / Chapter 4 / Subchapter 37 / Section 15-4-3713
Local workforce development planning requirements
Status: in_force

(a) (1) Each local workforce development board shall develop and submit to the Governor a comprehensive four-year local workforce development plan, in partnership with the chief elected official. (2) The local workforce development board shall support the strategy described in the state workforce development plan and be consistent with the state workforce development plan. (3) If the local workforce development area is part of a planning region, the local workforce development board shall comply with preparation and submission of a regional plan. (4) At the end of the first two-year period of the four-year local workforce development plan, each local workforce development board shall review the local workforce development plan, and the local workforce development board, in partnership with the chief elected official, shall prepare and submit modifications to the local workforce development plan to reflect changes in labor market and economic conditions or in other factors affecting the implementation of the local workforce development plan. (b) The local workforce development plan shall include: (1) A description of the strategic planning elements consisting of: (A) An analysis of the regional economic conditions, including without limitation: (i) Existing and emerging in-demand industry sectors and occupations; and (ii) The employment needs of employers in those industry sectors and occupations; (B) An analysis of the knowledge and skills needed to meet the employment needs of the employers in the region, including without limitation employment needs in in-demand industry sectors and occupations; (C) An analysis of the workforce in the region, including without limitation current labor force employment and unemployment data, information on labor market trends, and the educational and skill levels of the workforce in the region, including without limitation individuals with barriers to employment; (D) An analysis of the workforce development activities, including without limitation education and training in the region, and an analysis of the strengths and weaknesses of such services and the capacity to provide such services to address the identified education and skill needs of the workforce and the employment needs of employers in the region; (E) A description of the local workforce development plan's strategic vision and goals for preparing an educated and skilled workforce, including without limitation youth and individuals with barriers to employment, including goals relating to the performance accountability measures based on primary indicators of performance in order to support regional economic growth and economic self-sufficiency; and (F) Taking into account analyses described in subdivisions (b)(1)(A)-(D) of this section, a strategy to work with the entities that carry out the core programs to align resources available to the local workforce development area, to achieve the strategic vision and goals described in subdivision (b)(1)(E) of this section; (2) A description of the workforce development system in the local workforce development area that identifies the programs that are included in that system and how the local workforce development board will work with the entities carrying out core programs and other workforce development programs to support alignment to provide services, including programs of study authorized under the Carl D. Perkins Career and Technical Education Act of 2006, 20 U.S.C. § 2301 et seq., that support the strategy identified in the state workforce development plan; (3) A description of how the local workforce development board, working with the entities carrying out core programs, will expand access to employment, training, education, and supportive services for eligible individuals, particularly eligible individuals with barriers to employment, and how the local workforce development board will facilitate the development of career pathways and co-enrollment, as appropriate, in core programs, and improve access to activities leading to a recognized postsecondary credential that is industry-recognized, portable, and stackable; (4) A description of the strategies and services that will be used in the local workforce development area: (A) To: (i) Facilitate engagement of employers, including without limitation small employers and employers in in-demand industry sectors and occupations in workforce development programs; (ii) Support a local workforce development system that meets the needs of businesses in the local workforce development area; (iii) Better coordinate workforce development programs and economic development; and (iv) Strengthen linkages between the one-stop delivery system and unemployment insurance programs; and (B) That may include the implementation of initiatives designed to meet the needs of employers in the corresponding region in support of the strategy described in subdivision (b)(1)(F) of this section such as: (i) Career pathways initiatives; (ii) Customized training programs; (iii) Incumbent worker training programs; (iv) Industry and sector strategies; (v) On-the-job training programs; (vi) Use of effective business intermediaries; and (vii) Other business services and strategies; (5) A description of how the local workforce development board will coordinate workforce investment activities carried out in the local workforce development area with economic development activities carried out in the planning region or in the workforce development region in which the local workforce development area is located and promote entrepreneurial skills training and microenterprise services; (6) A description of the one-stop delivery system in the local workforce development area, including: (A) A description of how the local workforce development board will ensure the continuous improvement of eligible providers of services through the one-stop delivery system and ensure that the providers meet the employment needs of local employers, workers, and jobseekers; (B) A description of how the local workforce development board will facilitate access in remote areas to services provided through the one-stop delivery system, including without limitation, in remote areas, through the use of technology and other means; (C) A description of how entities within the one-stop delivery system, including one-stop operators and the one-stop partners, will comply with § 188 of the Workforce Innovation and Opportunity Act, Pub. L. No. 113-128, 29 U.S.C. § 3248 , if applicable, and applicable provisions of the Americans with Disabilities Act of 1990, 42 U.S.C. § 12101 et seq., regarding the physical and programmatic accessibility of facilities, programs and services, technology, and materials for individuals with disabilities, including providing staff training and support for addressing the needs of individuals with disabilities; and (D) A description of the roles and resource contributions of the one-stop partners; (7) A description and assessment of the type and availability of adult and dislocated worker employment and training activities in the local workforce development area; (8) A description of how the local workforce development board will coordinate workforce investment activities carried out in the local workforce development area with statewide rapid response activities for dislocated workers; (9) A description and assessment of the type and availability of youth workforce investment activities in the local workforce development area, including without limitation activities for youth who are individuals with disabilities, which description and assessment shall include an identification of successful models of the youth workforce investment activities; (10) A description of how the local workforce development board will coordinate education and workforce investment activities carried out in the local workforce development area with relevant secondary and postsecondary education programs and activities to coordinate strategies, enhance services, and avoid duplication of services; (11) A description of how the local workforce development board will coordinate workforce investment activities with the provision of transportation, including without limitation public transportation, and other appropriate supportive services in the local workforce development area; (12) A description of plans and strategies for and assurances concerning maximizing coordination of services provided by the state employment service under the Wagner-Peyser Act, 29 U.S.C. § 49 et seq., and services provided in the local workforce development area through the one-stop delivery system to improve service delivery and avoid duplication of services; (13) A description of how the local workforce development board will coordinate workforce investment activities carried out under this subchapter in the local workforce development area with the provision of adult education and literacy activities in the local workforce development area, including a description of how the local workforce development board will carry out the review of local applications submitted under title II of the Workforce Innovation and Opportunity Act, Pub. L. No. 113-128, the Adult Education and Family Literacy Act, 29 U.S.C. §§ 3271-3275 , 3291 , 3292 , 3301-3305 , 3321-3323 , and 3331-3333 ; (14) A description of the replicated cooperative agreements between the local workforce development board and the local office of a designated state agency or designated state unit administering programs carried out under 29 U.S.C. § 720 et seq., with respect to efforts that will enhance the provision of services to individuals with disabilities and to other individuals, such as cross training of staff, technical assistance, use and sharing of information, cooperative efforts with employers, and other efforts at cooperation, collaboration, and coordination; (15) An identification of the entity responsible for the disbursal of grant funds as determined by the chief elected official or the Governor under § 15-4-3711 ; (16) A description of the competitive process to be used to award the subgrants and contracts in the local workforce development area; (17) A description of the local levels of performance negotiated with the Governor and chief elected officials to be used to measure the performance of the local workforce development area and to be used by the local workforce development board for measuring the performance of the local fiscal agent, eligible providers, and the one-stop delivery system, in the local workforce development area; (18) A description of the actions the local workforce development board will take toward becoming or remaining a high-performing board consistent with the factors developed by the Arkansas Workforce Development Board; (19) A description of how training services will be provided, including, if contracts for the training services will be used, how the use of the contracts will be coordinated with the use of individual training accounts, and how the local workforce development board will ensure informed customer choice in the selection of training programs regardless of how the training services are to be provided; (20) A description of the process used by the local workforce development board to provide an opportunity for public comment, including comment by representatives of businesses and comment by representatives of labor organizations, and input into the development of the local workforce development plan, prior to submission of the local workforce development plan; (21) A description of how one-stop centers are implementing and transitioning to an integrated, technology-enabled intake and case management information system for programs carried out under this subchapter and programs carried out by one-stop partners; and (22) Other information the Governor may require. (c) Before the date on which the local workforce development board submits a local workforce development plan under this section, the local workforce development board shall: (1) Make available copies of a proposed local workforce development plan to the public through electronic and other means, such as public hearings and local news media; (2) Allow members of the public, including without limitation representatives of business, representatives of labor organizations, and representatives of education, to submit to the local workforce development board comments on the proposed local workforce development plan, not later than the end of the thirty-day period beginning on the date on which the proposed local workforce development plan is made available; and (3) Include with the local workforce development plan submitted to the Governor under this section any comments that represent disagreement with the local workforce development plan. (d) A local workforce development plan submitted to the Governor under this section, including a modification to a local workforce development plan, shall be considered to be approved by the Governor at the end of the ninety-day period beginning on the day the Governor receives the local workforce development plan, unless the Governor makes a written determination during the ninety-day period that: (1) There are deficiencies in the local workforce development plan; (2) The local workforce development plan does not comply with requirements; or (3) The local workforce development plan does not align with the state plan. Added by Act 2015, No. 907,§ 3, eff. 7/1/2015.

(a) (1) Each local workforce development board shall develop and submit to the Governor a comprehensive four-year local workforce development plan, in partnership with the chief elected official. (2) The local workforce development board shall support the strategy described in the state workforce development plan and be consistent with the state workforce development plan. (3) If the local workforce development area is part of a planning region, the local workforce development board shall comply with preparation and submission of a regional plan. (4) At the end of the first two-year period of the four-year local workforce development plan, each local workforce development board shall review the local workforce development plan, and the local workforce development board, in partnership with the chief elected official, shall prepare and submit modifications to the local workforce development plan to reflect changes in labor market and economic conditions or in other factors affecting the implementation of the local workforce development plan.

(1) Each local workforce development board shall develop and submit to the Governor a comprehensive four-year local workforce development plan, in partnership with the chief elected official.

(2) The local workforce development board shall support the strategy described in the state workforce development plan and be consistent with the state workforce development plan.

(3) If the local workforce development area is part of a planning region, the local workforce development board shall comply with preparation and submission of a regional plan.

(4) At the end of the first two-year period of the four-year local workforce development plan, each local workforce development board shall review the local workforce development plan, and the local workforce development board, in partnership with the chief elected official, shall prepare and submit modifications to the local workforce development plan to reflect changes in labor market and economic conditions or in other factors affecting the implementation of the local workforce development plan.

(b) The local workforce development plan shall include: (1) A description of the strategic planning elements consisting of: (A) An analysis of the regional economic conditions, including without limitation: (i) Existing and emerging in-demand industry sectors and occupations; and (ii) The employment needs of employers in those industry sectors and occupations; (B) An analysis of the knowledge and skills needed to meet the employment needs of the employers in the region, including without limitation employment needs in in-demand industry sectors and occupations; (C) An analysis of the workforce in the region, including without limitation current labor force employment and unemployment data, information on labor market trends, and the educational and skill levels of the workforce in the region, including without limitation individuals with barriers to employment; (D) An analysis of the workforce development activities, including without limitation education and training in the region, and an analysis of the strengths and weaknesses of such services and the capacity to provide such services to address the identified education and skill needs of the workforce and the employment needs of employers in the region; (E) A description of the local workforce development plan's strategic vision and goals for preparing an educated and skilled workforce, including without limitation youth and individuals with barriers to employment, including goals relating to the performance accountability measures based on primary indicators of performance in order to support regional economic growth and economic self-sufficiency; and (F) Taking into account analyses described in subdivisions (b)(1)(A)-(D) of this section, a strategy to work with the entities that carry out the core programs to align resources available to the local workforce development area, to achieve the strategic vision and goals described in subdivision (b)(1)(E) of this section; (2) A description of the workforce development system in the local workforce development area that identifies the programs that are included in that system and how the local workforce development board will work with the entities carrying out core programs and other workforce development programs to support alignment to provide services, including programs of study authorized under the Carl D. Perkins Career and Technical Education Act of 2006, 20 U.S.C. § 2301 et seq., that support the strategy identified in the state workforce development plan; (3) A description of how the local workforce development board, working with the entities carrying out core programs, will expand access to employment, training, education, and supportive services for eligible individuals, particularly eligible individuals with barriers to employment, and how the local workforce development board will facilitate the development of career pathways and co-enrollment, as appropriate, in core programs, and improve access to activities leading to a recognized postsecondary credential that is industry-recognized, portable, and stackable; (4) A description of the strategies and services that will be used in the local workforce development area: (A) To: (i) Facilitate engagement of employers, including without limitation small employers and employers in in-demand industry sectors and occupations in workforce development programs; (ii) Support a local workforce development system that meets the needs of businesses in the local workforce development area; (iii) Better coordinate workforce development programs and economic development; and (iv) Strengthen linkages between the one-stop delivery system and unemployment insurance programs; and (B) That may include the implementation of initiatives designed to meet the needs of employers in the corresponding region in support of the strategy described in subdivision (b)(1)(F) of this section such as: (i) Career pathways initiatives; (ii) Customized training programs; (iii) Incumbent worker training programs; (iv) Industry and sector strategies; (v) On-the-job training programs; (vi) Use of effective business intermediaries; and (vii) Other business services and strategies; (5) A description of how the local workforce development board will coordinate workforce investment activities carried out in the local workforce development area with economic development activities carried out in the planning region or in the workforce development region in which the local workforce development area is located and promote entrepreneurial skills training and microenterprise services; (6) A description of the one-stop delivery system in the local workforce development area, including: (A) A description of how the local workforce development board will ensure the continuous improvement of eligible providers of services through the one-stop delivery system and ensure that the providers meet the employment needs of local employers, workers, and jobseekers; (B) A description of how the local workforce development board will facilitate access in remote areas to services provided through the one-stop delivery system, including without limitation, in remote areas, through the use of technology and other means; (C) A description of how entities within the one-stop delivery system, including one-stop operators and the one-stop partners, will comply with § 188 of the Workforce Innovation and Opportunity Act, Pub. L. No. 113-128, 29 U.S.C. § 3248 , if applicable, and applicable provisions of the Americans with Disabilities Act of 1990, 42 U.S.C. § 12101 et seq., regarding the physical and programmatic accessibility of facilities, programs and services, technology, and materials for individuals with disabilities, including providing staff training and support for addressing the needs of individuals with disabilities; and (D) A description of the roles and resource contributions of the one-stop partners; (7) A description and assessment of the type and availability of adult and dislocated worker employment and training activities in the local workforce development area; (8) A description of how the local workforce development board will coordinate workforce investment activities carried out in the local workforce development area with statewide rapid response activities for dislocated workers; (9) A description and assessment of the type and availability of youth workforce investment activities in the local workforce development area, including without limitation activities for youth who are individuals with disabilities, which description and assessment shall include an identification of successful models of the youth workforce investment activities; (10) A description of how the local workforce development board will coordinate education and workforce investment activities carried out in the local workforce development area with relevant secondary and postsecondary education programs and activities to coordinate strategies, enhance services, and avoid duplication of services; (11) A description of how the local workforce development board will coordinate workforce investment activities with the provision of transportation, including without limitation public transportation, and other appropriate supportive services in the local workforce development area; (12) A description of plans and strategies for and assurances concerning maximizing coordination of services provided by the state employment service under the Wagner-Peyser Act, 29 U.S.C. § 49 et seq., and services provided in the local workforce development area through the one-stop delivery system to improve service delivery and avoid duplication of services; (13) A description of how the local workforce development board will coordinate workforce investment activities carried out under this subchapter in the local workforce development area with the provision of adult education and literacy activities in the local workforce development area, including a description of how the local workforce development board will carry out the review of local applications submitted under title II of the Workforce Innovation and Opportunity Act, Pub. L. No. 113-128, the Adult Education and Family Literacy Act, 29 U.S.C. §§ 3271-3275 , 3291 , 3292 , 3301-3305 , 3321-3323 , and 3331-3333 ; (14) A description of the replicated cooperative agreements between the local workforce development board and the local office of a designated state agency or designated state unit administering programs carried out under 29 U.S.C. § 720 et seq., with respect to efforts that will enhance the provision of services to individuals with disabilities and to other individuals, such as cross training of staff, technical assistance, use and sharing of information, cooperative efforts with employers, and other efforts at cooperation, collaboration, and coordination; (15) An identification of the entity responsible for the disbursal of grant funds as determined by the chief elected official or the Governor under § 15-4-3711 ; (16) A description of the competitive process to be used to award the subgrants and contracts in the local workforce development area; (17) A description of the local levels of performance negotiated with the Governor and chief elected officials to be used to measure the performance of the local workforce development area and to be used by the local workforce development board for measuring the performance of the local fiscal agent, eligible providers, and the one-stop delivery system, in the local workforce development area; (18) A description of the actions the local workforce development board will take toward becoming or remaining a high-performing board consistent with the factors developed by the Arkansas Workforce Development Board; (19) A description of how training services will be provided, including, if contracts for the training services will be used, how the use of the contracts will be coordinated with the use of individual training accounts, and how the local workforce development board will ensure informed customer choice in the selection of training programs regardless of how the training services are to be provided; (20) A description of the process used by the local workforce development board to provide an opportunity for public comment, including comment by representatives of businesses and comment by representatives of labor organizations, and input into the development of the local workforce development plan, prior to submission of the local workforce development plan; (21) A description of how one-stop centers are implementing and transitioning to an integrated, technology-enabled intake and case management information system for programs carried out under this subchapter and programs carried out by one-stop partners; and (22) Other information the Governor may require.

(1) A description of the strategic planning elements consisting of: (A) An analysis of the regional economic conditions, including without limitation: (i) Existing and emerging in-demand industry sectors and occupations; and (ii) The employment needs of employers in those industry sectors and occupations; (B) An analysis of the knowledge and skills needed to meet the employment needs of the employers in the region, including without limitation employment needs in in-demand industry sectors and occupations; (C) An analysis of the workforce in the region, including without limitation current labor force employment and unemployment data, information on labor market trends, and the educational and skill levels of the workforce in the region, including without limitation individuals with barriers to employment; (D) An analysis of the workforce development activities, including without limitation education and training in the region, and an analysis of the strengths and weaknesses of such services and the capacity to provide such services to address the identified education and skill needs of the workforce and the employment needs of employers in the region; (E) A description of the local workforce development plan's strategic vision and goals for preparing an educated and skilled workforce, including without limitation youth and individuals with barriers to employment, including goals relating to the performance accountability measures based on primary indicators of performance in order to support regional economic growth and economic self-sufficiency; and (F) Taking into account analyses described in subdivisions (b)(1)(A)-(D) of this section, a strategy to work with the entities that carry out the core programs to align resources available to the local workforce development area, to achieve the strategic vision and goals described in subdivision (b)(1)(E) of this section;

(A) An analysis of the regional economic conditions, including without limitation: (i) Existing and emerging in-demand industry sectors and occupations; and (ii) The employment needs of employers in those industry sectors and occupations;

(i) Existing and emerging in-demand industry sectors and occupations; and

(ii) The employment needs of employers in those industry sectors and occupations;

(B) An analysis of the knowledge and skills needed to meet the employment needs of the employers in the region, including without limitation employment needs in in-demand industry sectors and occupations;

(C) An analysis of the workforce in the region, including without limitation current labor force employment and unemployment data, information on labor market trends, and the educational and skill levels of the workforce in the region, including without limitation individuals with barriers to employment;

(D) An analysis of the workforce development activities, including without limitation education and training in the region, and an analysis of the strengths and weaknesses of such services and the capacity to provide such services to address the identified education and skill needs of the workforce and the employment needs of employers in the region;

(E) A description of the local workforce development plan's strategic vision and goals for preparing an educated and skilled workforce, including without limitation youth and individuals with barriers to employment, including goals relating to the performance accountability measures based on primary indicators of performance in order to support regional economic growth and economic self-sufficiency; and

(F) Taking into account analyses described in subdivisions (b)(1)(A)-(D) of this section, a strategy to work with the entities that carry out the core programs to align resources available to the local workforce development area, to achieve the strategic vision and goals described in subdivision (b)(1)(E) of this section;

(2) A description of the workforce development system in the local workforce development area that identifies the programs that are included in that system and how the local workforce development board will work with the entities carrying out core programs and other workforce development programs to support alignment to provide services, including programs of study authorized under the Carl D. Perkins Career and Technical Education Act of 2006, 20 U.S.C. § 2301 et seq., that support the strategy identified in the state workforce development plan;

(3) A description of how the local workforce development board, working with the entities carrying out core programs, will expand access to employment, training, education, and supportive services for eligible individuals, particularly eligible individuals with barriers to employment, and how the local workforce development board will facilitate the development of career pathways and co-enrollment, as appropriate, in core programs, and improve access to activities leading to a recognized postsecondary credential that is industry-recognized, portable, and stackable;

(4) A description of the strategies and services that will be used in the local workforce development area: (A) To: (i) Facilitate engagement of employers, including without limitation small employers and employers in in-demand industry sectors and occupations in workforce development programs; (ii) Support a local workforce development system that meets the needs of businesses in the local workforce development area; (iii) Better coordinate workforce development programs and economic development; and (iv) Strengthen linkages between the one-stop delivery system and unemployment insurance programs; and (B) That may include the implementation of initiatives designed to meet the needs of employers in the corresponding region in support of the strategy described in subdivision (b)(1)(F) of this section such as: (i) Career pathways initiatives; (ii) Customized training programs; (iii) Incumbent worker training programs; (iv) Industry and sector strategies; (v) On-the-job training programs; (vi) Use of effective business intermediaries; and (vii) Other business services and strategies;

(A) To: (i) Facilitate engagement of employers, including without limitation small employers and employers in in-demand industry sectors and occupations in workforce development programs; (ii) Support a local workforce development system that meets the needs of businesses in the local workforce development area; (iii) Better coordinate workforce development programs and economic development; and (iv) Strengthen linkages between the one-stop delivery system and unemployment insurance programs; and

(i) Facilitate engagement of employers, including without limitation small employers and employers in in-demand industry sectors and occupations in workforce development programs;

(ii) Support a local workforce development system that meets the needs of businesses in the local workforce development area;

(iii) Better coordinate workforce development programs and economic development; and

(iv) Strengthen linkages between the one-stop delivery system and unemployment insurance programs; and

(B) That may include the implementation of initiatives designed to meet the needs of employers in the corresponding region in support of the strategy described in subdivision (b)(1)(F) of this section such as: (i) Career pathways initiatives; (ii) Customized training programs; (iii) Incumbent worker training programs; (iv) Industry and sector strategies; (v) On-the-job training programs; (vi) Use of effective business intermediaries; and (vii) Other business services and strategies;

(i) Career pathways initiatives;

(ii) Customized training programs;

(iii) Incumbent worker training programs;

(iv) Industry and sector strategies;

(v) On-the-job training programs;

(vi) Use of effective business intermediaries; and

(vii) Other business services and strategies;

(5) A description of how the local workforce development board will coordinate workforce investment activities carried out in the local workforce development area with economic development activities carried out in the planning region or in the workforce development region in which the local workforce development area is located and promote entrepreneurial skills training and microenterprise services;

(6) A description of the one-stop delivery system in the local workforce development area, including: (A) A description of how the local workforce development board will ensure the continuous improvement of eligible providers of services through the one-stop delivery system and ensure that the providers meet the employment needs of local employers, workers, and jobseekers; (B) A description of how the local workforce development board will facilitate access in remote areas to services provided through the one-stop delivery system, including without limitation, in remote areas, through the use of technology and other means; (C) A description of how entities within the one-stop delivery system, including one-stop operators and the one-stop partners, will comply with § 188 of the Workforce Innovation and Opportunity Act, Pub. L. No. 113-128, 29 U.S.C. § 3248 , if applicable, and applicable provisions of the Americans with Disabilities Act of 1990, 42 U.S.C. § 12101 et seq., regarding the physical and programmatic accessibility of facilities, programs and services, technology, and materials for individuals with disabilities, including providing staff training and support for addressing the needs of individuals with disabilities; and (D) A description of the roles and resource contributions of the one-stop partners;

(A) A description of how the local workforce development board will ensure the continuous improvement of eligible providers of services through the one-stop delivery system and ensure that the providers meet the employment needs of local employers, workers, and jobseekers;

(B) A description of how the local workforce development board will facilitate access in remote areas to services provided through the one-stop delivery system, including without limitation, in remote areas, through the use of technology and other means;

(C) A description of how entities within the one-stop delivery system, including one-stop operators and the one-stop partners, will comply with § 188 of the Workforce Innovation and Opportunity Act, Pub. L. No. 113-128, 29 U.S.C. § 3248 , if applicable, and applicable provisions of the Americans with Disabilities Act of 1990, 42 U.S.C. § 12101 et seq., regarding the physical and programmatic accessibility of facilities, programs and services, technology, and materials for individuals with disabilities, including providing staff training and support for addressing the needs of individuals with disabilities; and

(D) A description of the roles and resource contributions of the one-stop partners;

(7) A description and assessment of the type and availability of adult and dislocated worker employment and training activities in the local workforce development area;

(8) A description of how the local workforce development board will coordinate workforce investment activities carried out in the local workforce development area with statewide rapid response activities for dislocated workers;

(9) A description and assessment of the type and availability of youth workforce investment activities in the local workforce development area, including without limitation activities for youth who are individuals with disabilities, which description and assessment shall include an identification of successful models of the youth workforce investment activities;

(10) A description of how the local workforce development board will coordinate education and workforce investment activities carried out in the local workforce development area with relevant secondary and postsecondary education programs and activities to coordinate strategies, enhance services, and avoid duplication of services;

(11) A description of how the local workforce development board will coordinate workforce investment activities with the provision of transportation, including without limitation public transportation, and other appropriate supportive services in the local workforce development area;

(12) A description of plans and strategies for and assurances concerning maximizing coordination of services provided by the state employment service under the Wagner-Peyser Act, 29 U.S.C. § 49 et seq., and services provided in the local workforce development area through the one-stop delivery system to improve service delivery and avoid duplication of services;

(13) A description of how the local workforce development board will coordinate workforce investment activities carried out under this subchapter in the local workforce development area with the provision of adult education and literacy activities in the local workforce development area, including a description of how the local workforce development board will carry out the review of local applications submitted under title II of the Workforce Innovation and Opportunity Act, Pub. L. No. 113-128, the Adult Education and Family Literacy Act, 29 U.S.C. §§ 3271-3275 , 3291 , 3292 , 3301-3305 , 3321-3323 , and 3331-3333 ;

(14) A description of the replicated cooperative agreements between the local workforce development board and the local office of a designated state agency or designated state unit administering programs carried out under 29 U.S.C. § 720 et seq., with respect to efforts that will enhance the provision of services to individuals with disabilities and to other individuals, such as cross training of staff, technical assistance, use and sharing of information, cooperative efforts with employers, and other efforts at cooperation, collaboration, and coordination;

(15) An identification of the entity responsible for the disbursal of grant funds as determined by the chief elected official or the Governor under § 15-4-3711 ;

(16) A description of the competitive process to be used to award the subgrants and contracts in the local workforce development area;

(17) A description of the local levels of performance negotiated with the Governor and chief elected officials to be used to measure the performance of the local workforce development area and to be used by the local workforce development board for measuring the performance of the local fiscal agent, eligible providers, and the one-stop delivery system, in the local workforce development area;

(18) A description of the actions the local workforce development board will take toward becoming or remaining a high-performing board consistent with the factors developed by the Arkansas Workforce Development Board;

(19) A description of how training services will be provided, including, if contracts for the training services will be used, how the use of the contracts will be coordinated with the use of individual training accounts, and how the local workforce development board will ensure informed customer choice in the selection of training programs regardless of how the training services are to be provided;

(20) A description of the process used by the local workforce development board to provide an opportunity for public comment, including comment by representatives of businesses and comment by representatives of labor organizations, and input into the development of the local workforce development plan, prior to submission of the local workforce development plan;

(21) A description of how one-stop centers are implementing and transitioning to an integrated, technology-enabled intake and case management information system for programs carried out under this subchapter and programs carried out by one-stop partners; and

(22) Other information the Governor may require.

(c) Before the date on which the local workforce development board submits a local workforce development plan under this section, the local workforce development board shall: (1) Make available copies of a proposed local workforce development plan to the public through electronic and other means, such as public hearings and local news media; (2) Allow members of the public, including without limitation representatives of business, representatives of labor organizations, and representatives of education, to submit to the local workforce development board comments on the proposed local workforce development plan, not later than the end of the thirty-day period beginning on the date on which the proposed local workforce development plan is made available; and (3) Include with the local workforce development plan submitted to the Governor under this section any comments that represent disagreement with the local workforce development plan.

(1) Make available copies of a proposed local workforce development plan to the public through electronic and other means, such as public hearings and local news media;

(2) Allow members of the public, including without limitation representatives of business, representatives of labor organizations, and representatives of education, to submit to the local workforce development board comments on the proposed local workforce development plan, not later than the end of the thirty-day period beginning on the date on which the proposed local workforce development plan is made available; and

(3) Include with the local workforce development plan submitted to the Governor under this section any comments that represent disagreement with the local workforce development plan.

(d) A local workforce development plan submitted to the Governor under this section, including a modification to a local workforce development plan, shall be considered to be approved by the Governor at the end of the ninety-day period beginning on the day the Governor receives the local workforce development plan, unless the Governor makes a written determination during the ninety-day period that: (1) There are deficiencies in the local workforce development plan; (2) The local workforce development plan does not comply with requirements; or (3) The local workforce development plan does not align with the state plan.

(1) There are deficiencies in the local workforce development plan;

(2) The local workforce development plan does not comply with requirements; or

(3) The local workforce development plan does not align with the state plan.

Added by Act 2015, No. 907,§ 3, eff. 7/1/2015.