reglab/statecodes huggingface dataset:
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 4 - ILLEGAL OIL AND GAS (§§ 15-72-401 — 15-72-407) › Section 15-72-406 - Sale - Application of proceeds

(a)
(1)
Sales of illegal oil, illegal gas, or illegal product seized under the authority of this act, and notices of those sales, shall be in accordance with the laws of this state relating to the sale and disposition of attached property.
(2)
However, where the property is in the custody of a conservator, the sale shall be held by the conservator and not by the sheriff.
(3)
For his or her services hereunder, the conservator shall receive a reasonable fee to be paid out of the proceeds of the sale, to be fixed by the court ordering the sale.
(b)
The court may order that the commodity be sold in specified lots or portions, and at specified intervals, instead of being sold at one time.
(c)
Title to the amount sold shall pass as of the date of the act which is found by the court to make the commodity contraband.
(d)
The judgment shall provide for payment of the proceeds of the sale into the Oil and Gas Commission Fund, after first deducting the costs in connection with the proceedings and the sale.
(e)
The amount sold shall be treated as legal oil, legal gas, or legal product, as the case may be, in the hands of the purchaser, but the purchaser and the commodity shall be subject to all applicable laws, and rules, regulations, and orders with respect to further sale or purchase or acquisition, and with respect to the transportation, refining, processing, or handling in any other way, of the commodity purchased.
(f)
No oil, gas, or illegal product shall be sold for less than the average market value at the time of sale of similar products of like grade and character.
Acts 1939, No. 105, § 24; A.S.A. 1947, § 53-124.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 4 - ILLEGAL OIL AND GAS (§§ 15-72-401 — 15-72-407) › Section 15-72-407 - Other causes of action

Nothing in this subchapter shall deny or abridge any cause of action a royalty owner, a lien holder, or any other claimant may have because of the forfeiture of the illegal oil, illegal gas, or illegal product, against the person whose act resulted in the forfeiture.
Acts 1939, No. 105, § 24; A.S.A. 1947, § 53-124.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 5 - SECONDARY RECOVERY (§§ 15-72-501 — 15-72-504) › Section 15-72-502 - Investigation and research - Personnel

The Oil and Gas Commission is authorized and directed to make investigations and to research, as in the judgment of the commission is appropriate, to ascertain the advisability of the employment of a secondary recovery method or methods in any pool within the State of Arkansas containing oil and gas, and to this end is authorized to employ the personnel who in its judgment are necessary for the performance of the work.
Acts 1943, No. 302, § 2; A.S.A. 1947, § 53-128.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 5 - SECONDARY RECOVERY (§§ 15-72-501 — 15-72-504) › Section 15-72-503 - Submission of findings to landowners

The findings of the Oil and Gas Commission are to be printed and submitted to the landowners, royalty owners, producers, and all parties in interest, in any oil or gas-condensate field or pool, or part thereof, where the employment of secondary recovery methods is found to be advisable.
Acts 1943, No. 302, § 3; A.S.A. 1947, § 53-129.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 5 - SECONDARY RECOVERY (§§ 15-72-501 — 15-72-504) › Section 15-72-504 - Agreements to use secondary recovery methods not in restraint of trade

If the persons owning and operating any oil pool or portion thereof enter into an agreement among themselves for the employment of any secondary recovery method or methods for the production of oil from a pool or portion thereof, and the Oil and Gas Commission finds that operating the pool or portion thereof in accordance with the agreement will result in the prevention of waste, the performance of the agreement by the persons shall not be a violation of any statute of this state relating to trusts, monopolies, or contracts, or combinations in restraint of trade.
Acts 1943, No. 302, § 4; A.S.A. 1947, § 53-130.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 6 - UNDERGROUND STORAGE OF GAS (§§ 15-72-601 — 15-72-608) › Section 15-72-601 - Title

This subchapter shall be known and may be cited as the "Underground Storage of Gas Law".
Acts 1957, No. 82, § 1; A.S.A. 1947, § 53-901.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 6 - UNDERGROUND STORAGE OF GAS (§§ 15-72-601 — 15-72-608) › Section 15-72-602 - Definitions

As used in this subchapter, unless the context otherwise requires:
(1)
"Commission" means the Oil and Gas Commission;
(2)
"Gas" means natural gas either while in its original state or after the natural gas has been processed by removal from the natural gas of component parts not essential to its use for light and fuel, or carbon oxides, ammonia, hydrogen, nitrogen, or noble gas;
(3)
"Gas storage facility" means any person, firm, or corporation authorized to do business in this state and engaged in the business of capturing, producing, or storing gas;
(4)
"Native gas" means gas which has not been previously withdrawn from the earth;
(5)
"Natural gas public utility" means any person, firm, or corporation authorized to do business in this state and engaged in the business of producing, transporting, or distributing natural gas by means of pipelines into, within, or through this state for ultimate public consumption; and
(6)
"Underground storage" means storage in a subsurface stratum or formation of the earth.
Amended by Act 2023, No. 140,§ 1, eff. 8/1/2023.
Acts 1957, No. 82, § 2; A.S.A. 1947, § 53-902.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 6 - UNDERGROUND STORAGE OF GAS (§§ 15-72-601 — 15-72-608) › Section 15-72-603 - Public interest and welfare - Authority of commission

(a)
The underground storage of gas, which promotes conservation thereof, which permits the building of reserves for orderly withdrawal in periods of peak demand, which makes more readily available and economical our gas resources to the domestic, commercial, and industrial consumers of this state, and which provides a better year-round market to the various gas fields, contributes to a healthier environment, and promotes the public interest and welfare of this state.
(b)
Therefore, in the manner hereinafter provided, the Oil and Gas Commission may find and determine that the underground storage of gas as hereinbefore defined is in the public interest.
Amended by Act 2023, No. 140,§ 1, eff. 8/1/2023.
Acts 1957, No. 82, § 3; A.S.A. 1947, § 53-903.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 6 - UNDERGROUND STORAGE OF GAS (§§ 15-72-601 — 15-72-608) › Section 15-72-605 - Prerequisite to eminent domain - Certificate

Any natural gas public utility or gas storage facility desiring to exercise the right of eminent domain as to any property for use for underground storage of gas, as a condition precedent to the filing of its petition in the circuit court, shall obtain from the Oil and Gas Commission a certificate setting out findings of the commission as to the following:
(1)
That the underground stratum or formation sought to be acquired is suitable for the underground storage of gas and that its use for such purposes is in the public interest; and
(2)
The amount of recoverable oil and native gas, if any, remaining therein. However, the commission shall issue no certificate until after public hearing is had on the application, pursuant to notice served in compliance with notice in civil actions in the circuit court, together with notice published at least once each week for two (2) successive weeks in some newspaper of general circulation in the county or counties where the gas is proposed to be stored. The first publication of the notice must be at least ten (10) days prior to the date of the hearing.
Amended by Act 2023, No. 140,§ 1, eff. 8/1/2023.
Acts 1957, No. 82, § 5; A.S.A. 1947, § 53-905.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 6 - UNDERGROUND STORAGE OF GAS (§§ 15-72-601 — 15-72-608) › Section 15-72-606 - Petition for eminent domain - Subsequent proceedings

(a)
Any natural gas public utility or gas storage facility having first obtained a certificate from the Oil and Gas Commission as provided in §
15-72-605
desiring to exercise the right of eminent domain for the purpose of acquiring property for the underground storage of gas shall do so in the manner provided in this section.
(b)
The natural gas public utility or gas storage facility shall present to the circuit court of the county wherein the land is situated, or to the judge thereof, a petition setting forth the purpose for which the property is sought to be acquired, a description of the property sought to be appropriated, and the names of the owners thereof as shown by the records of the county.
(c)
The petitioner shall file the certificate of the commission as a part of its petition and no order by the court granting the petition shall be entered without the certificate being filed therewith.
(d)
The court or the judge thereof shall examine the petition and determine whether the property is necessary to its lawful purposes, and if found in the affirmative, the finding shall be entered of record and subsequent proceedings shall follow the procedure by law for the exercise of the right of eminent domain for rights-of-way for railroads as provided by §
18-15-1201
et seq.
Amended by Act 2023, No. 140,§ 1, eff. 8/1/2023.
Acts 1957, No. 82, § 6; A.S.A. 1947, § 53-906.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 6 - UNDERGROUND STORAGE OF GAS (§§ 15-72-601 — 15-72-608) › Section 15-72-607 - Ownership of gas

All gas which has been reduced to possession and which is subsequently injected into underground storage fields, sands, reservoirs, and facilities shall at all times be deemed the property of the injector, his or her heirs, successors, or assigns. In no event shall the gas be subject to the right of the owner of the surface of the lands or the owner of any mineral interest therein under which the gas storage fields, sands, reservoirs, and facilities lie or subject to the right of any person, other than the injector, his or her heirs, successors, and assigns, to produce, take, reduce to possession, waste, or otherwise interfere with or exercise any control thereover. However, the injector, his or her heirs, successors, and assigns shall have no right to gas in any stratum, or portion thereof, which has not been condemned under the provisions of this subchapter or otherwise purchased.
Amended by Act 2023, No. 140,§ 1, eff. 8/1/2023.
Acts 1957, No. 82, § 7; A.S.A. 1947, § 53-907.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 6 - UNDERGROUND STORAGE OF GAS (§§ 15-72-601 — 15-72-608) › Section 15-72-608 - Rules

(a)
The Oil and Gas Commission shall have authority to make reasonable rules and exercise such powers as are granted to it by §§
15-71-101
-
15-71-112
,
15-72-101
-
15-72-110
,
15-72-205
,
15-72-212
,
15-72-216
,
15-72-301
-
15-72-324
, and
15-72-401
-
15-72-407
as may be necessary in the administration of this subchapter.
(b)
The Secretary of the Department of Finance and Administration shall have authority to make reasonable rules for the collection of the taxes and allowance of credit as provided in this subchapter.
Amended by Act 2019, No. 315,§ 1258, eff. 7/24/2019.
Amended by Act 2019, No. 910,§ 3412, eff. 7/1/2019.
Acts 1957, No. 258, § 8; A.S.A. 1947, § 53-137.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 7 - EXPLORATION (§§ 15-72-701 — 15-72-706) › Section 15-72-701 - Definitions

As used in this subchapter, unless the context otherwise requires:
(1)
"Commercial oil pool" means a pool which appears to contain sufficient quantities of recoverable oil, in the opinion of the commission, to justify the economical development thereof.
(2)
"Commission" means the Oil and Gas Commission;
(3)
"Conservation Act" means §§
15-71-101
-
15-71-112
,
15-72-101
-
15-72-110
,
15-72-205
,
15-72-212
,
15-72-216
,
15-72-301
-
15-72-324
, and
15-72-401
-
15-72-407
; and
(4)
"Field" means the general area which is underlaid or appears to be underlaid by at least one (1) pool. "Field" includes the underground reservoir or reservoirs containing crude petroleum oil, natural gas, or both. The words "field" and "pool" mean the same thing when only one (1) underground reservoir is involved. However, "field", unlike "pool", may relate to two (2) or more pools;
(5)
"Oil" means crude petroleum oil, and other hydrocarbons, regardless of gravity, which are produced at the well in liquid form by ordinary production methods and which are not the result of condensation of gas after it leaves the reservoir;
(6)
"Owner" means the person who has the right to drill and produce oil and to appropriate the production either for himself or herself or for himself or herself and another or others;
(7)
"Participating area" means the land surface area within a radius of two (2) miles from the discovery well;
(8)
"Person" means any natural person, corporation, association, partnership, receiver, trustee, guardian, executor, administrator, fiduciary, or representative of any kind, or the heirs, successors, or assigns of any of the foregoing;
(9)
"Pool" means an underground reservoir containing a common accumulation of crude petroleum oil or natural gas, or both. Each zone of a general structure which is completely separated from any other zone in the structure is covered by the term "pool" as used herein;
Acts 1957, No. 258, § 2; A.S.A. 1947, § 53-131.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 7 - EXPLORATION (§§ 15-72-701 — 15-72-706) › Section 15-72-702 - Bonus for discovery of oil pool

Any person who discovers a commercial oil pool in this state not heretofore discovered shall be entitled to the bonus herein provided upon compliance with the provisions hereof.
Acts 1957, No. 258, § 3; A.S.A. 1947, § 53-132.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 7 - EXPLORATION (§§ 15-72-701 — 15-72-706) › Section 15-72-703 - Application for permit to drill discovery well

To become entitled to the benefits provided in this subchapter, a person shall make application therefor to the Oil and Gas Commission at or before the issuance of the permit to drill the discovery well in the pool upon a form approved by the commission in which the applicant shall, among other things, state under oath:
(1)
The location of the proposed discovery well; and
(2)
A legal description of the land within the participating area as to which the applicant is the owner at that date.
Acts 1957, No. 258, § 4; A.S.A. 1947, § 53-133.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 7 - EXPLORATION (§§ 15-72-701 — 15-72-706) › Section 15-72-704 - Approval of application

The application shall be approved by the Oil and Gas Commission if it determines from the application and such investigation as it may deem proper:
(1)
That the location of the proposed discovery well is not within the geographical confines of a known producing oil field; and
(2)
That the application has complied with the provisions of this subchapter and all rules of the commission in respect thereto.
Amended by Act 2019, No. 315,§ 1259, eff. 7/24/2019.
Acts 1957, No. 258, § 5; A.S.A. 1947, § 53-134.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 7 - EXPLORATION (§§ 15-72-701 — 15-72-706) › Section 15-72-705 - Certificate of discovery of commercial pool

Upon receipt by the Oil and Gas Commission, within one (1) year from the date of the approval of the application, of evidence from which the commission finds that a commercial oil pool has been discovered by that person in the drilling of the discovery well and that compliance has been had with this subchapter and the rules of the commission, it shall issue to that person a certificate to that effect. This certificate shall entitle the person to the benefits of this subchapter. However, not more than one (1) certificate shall be issued for each field, nor more than one (1) pool in any field.
Amended by Act 2019, No. 315,§ 1260, eff. 7/24/2019.
Acts 1957, No. 258, § 6; A.S.A. 1947, § 53-135.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 7 - EXPLORATION (§§ 15-72-701 — 15-72-706) › Section 15-72-706 - Credit against severance tax

From and after the effective date of the certificate, the person shall be entitled to receive from the Revenue Division of the Department of Finance and Administration a credit against the taxes thereafter otherwise due by the person on account of oil produced from the pool from wells located on any land as to which the person was the owner, and so designated, in the application filed with the Oil and Gas Commission, as follows:
(1)
Seventy-five percent (75%) of the severance tax otherwise due during a period of five (5) years from the date of the certificate if the pool is located above the base of the deepest producing oil formation in the county where the discovery well is located at the date of the application;
(2)
Seventy-five percent (75%) of the severance tax otherwise due during a period of ten (10) years from the date of the certificate if the pool is located below the base of the deepest producing oil formation in the county or if there was no oil production in the county at the date of the application; and
(3)
The certificate shall designate whether the person named therein is entitled thereunder to the benefits of subdivisions (1) and (2) of this section, and the name of the field and pool covered thereby.
Acts 1957, No. 258, § 7; A.S.A. 1947, § 53-136.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 8 - EMERGENCY PETROLEUM SET-ASIDE ACT (§§ 15-72-801 — 15-72-805) › Section 15-72-801 - Policy and purpose

The General Assembly finds and declares that:
(1)
Adequate supplies of petroleum products are essential to the health, welfare, and safety of the people of the State of Arkansas;
(2)
Any severe disruption in the supply of petroleum products for use within the state would cause grave hardship and pose a threat to the health and economic well-being of the people of this state;
(3)
The state set-aside program has benefited all sectors of Arkansas' economy by allocating petroleum products on a short-term basis to those persons experiencing hardship or emergency conditions caused by insufficient supplies of fuel; and
(4)
It is in the public interest for Arkansas to continue to administer a state set-aside program during those times that federal law does not preempt such a state-authorized program. A set-aside program should be an emergency standby, established as a preparedness measure. It should not operate on a permanent basis or in a period of normal supply.
Acts 1983, No. 377, § 1; A.S.A. 1947, § 53-1501.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 8 - EMERGENCY PETROLEUM SET-ASIDE ACT (§§ 15-72-801 — 15-72-805) › Section 15-72-803 - Penalties

(a)
Any person who knowingly violates any provisions of this subchapter or any rules promulgated thereunder shall be guilty of a misdemeanor and upon conviction shall be subject to a fine of not more than one thousand dollars ($1,000) or imprisonment for not more than six (6) months, or both. In the event of a violation by a corporation or other entity organized for a common business purpose, this penalty shall extend to any officer, director, or employee who knowingly participated in the violation.
(b)
Any prime supplier or broker who refuses to provide products pursuant to an assignment under this subchapter shall be liable for a penalty of not more than ten thousand dollars ($10,000) which may be recovered in a civil action, and the prime supplier or broker may be enjoined from continuing such violation.
Acts 1983, No. 377, § 5; A.S.A. 1947, § 53-1505.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 8 - EMERGENCY PETROLEUM SET-ASIDE ACT (§§ 15-72-801 — 15-72-805) › Section 15-72-805 - Confidential treatment

(a)
Information furnished pursuant to this subchapter and designated as confidential shall be maintained as confidential by the Director of the Arkansas Energy Office and any person who obtains information that he or she knows to be confidential under this subchapter.
(b)
Nothing in this section shall prohibit the use of confidential information to prepare statistics or other general data for publication, so presented as to prevent identification of particular persons.
Acts 1983, No. 377, § 4; A.S.A. 1947, § 53-1504; Acts 2007, No. 554, § 4.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 9 - INTERSTATE COMPACT TO CONSERVE OIL AND GAS (§§ 15-72-901 — 15-72-904) › Section 15-72-901 - Governor authorized to execute agreement - Two-year extension of compact

The Governor is authorized and directed, for and in the name of the State of Arkansas, to join with other states in the Interstate Compact to Conserve Oil and Gas, which was heretofore executed in the City of Dallas, Texas, on February 16, 1935, and now deposited with the Department of State of the United States, and which has been twice extended for a two-year period, and to enter into and execute an agreement with other states now parties or which may hereafter become parties, whereby said compact shall be extended for a period of two (2) years from September 1, 1941, subject to the approval of Congress.
Acts 1941, No. 86, § 1; A.S.A. 1947, § 53-801.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 9 - INTERSTATE COMPACT TO CONSERVE OIL AND GAS (§§ 15-72-901 — 15-72-904) › Section 15-72-903 - Extension or termination of compact by Governor

The Governor of Arkansas is further authorized and empowered, for and in the name of the State of Arkansas, to execute agreements for the further extension of the expiration date of the Interstate Oil Compact to Conserve Oil and Gas, and to determine if and when it shall be for the best interest of the State of Arkansas to withdraw from said compact upon sixty (60) days' notice as provided by its terms. In the event he or she shall determine that the state should withdraw from said compact, he or she shall have full power and authority to give necessary notice and to take any and all steps necessary and proper to effect the withdrawal of the State of Arkansas from said compact.
Acts 1941, No. 86, § 3; A.S.A. 1947, § 53-803.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 9 - INTERSTATE COMPACT TO CONSERVE OIL AND GAS (§§ 15-72-901 — 15-72-904) › Section 15-72-904 - Governor official representative of state on commission - Assistant representative

The Governor shall be the official representative of the State of Arkansas on the Interstate Oil Compact Commission, provided for in the Interstate Compact to Conserve Oil and Gas, and shall exercise and perform for the State of Arkansas all the powers and duties as a member of the Interstate Oil Compact Commission; provided that he or she shall have the authority to appoint an assistant representative of the State of Arkansas as a member of said commission. Said assistant representative shall take the oath of office prescribed by the Arkansas Constitution, which shall be filed with the Secretary of State.
Acts 1941, No. 86, § 4; A.S.A. 1947, § 53-804.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 10 - ENHANCED RECOVERY (§§ 15-72-1001 — 15-72-1003) › Section 15-72-1001 - Tax incentives - Increased volume by enhanced recovery

An oil producer who initiates a program for the enhanced recovery of crude oil pursuant to a plan first approved by the Oil and Gas Commission for purposes of recovering the incremental oil from a well or group of wells which results in the production of a volume of crude oil in excess of the volume produced prior to the commencement of the project shall be granted a fifty percent (50%) reduction in the severance tax which would otherwise be required to be paid, as provided for in §
26-58-111(6)
, on the total quantity of the incremental increase in crude oil produced as a result of the approved enhanced recovery project.
Acts 1995, No. 1093, § 1.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 10 - ENHANCED RECOVERY (§§ 15-72-1001 — 15-72-1003) › Section 15-72-1002 - Tax incentives - Reestablishment of inactive wells and fields

(a)
Any oil well which has been inactive and has failed to produce any volume of crude oil for a period of at least twelve (12) consecutive calendar months which is restored and reestablished as a producer of crude oil shall be exempt from the payment of severance taxes on the volume of production for a period of ten (10) years from and after the date upon which the production is reestablished.
(b)
Any oil field established by the Oil and Gas Commission which has become inactive by the cessation of production for a period of not less than twelve (12) consecutive calendar months shall be exempt from the payment of severance taxes in the event production of crude oil from the field is reestablished with respect to all crude oil subsequently produced from the zones, horizons, and formations which had previously been productive but subsequently ceased to produce.
Acts 1995, No. 1093, §§ 2, 3.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 10 - ENHANCED RECOVERY (§§ 15-72-1001 — 15-72-1003) › Section 15-72-1003 - Tax incentives - Increased volume by new research technology

If the utilization of new research technology results in the increased production of crude oil by an active field, as established by the Oil and Gas Commission, then the total quantity of the incremental increase in crude oil produced as a result of the new technology shall be exempt from severance tax.
Acts 1995, No. 1093, § 4.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 11 - OIL AND GAS OWNERS' LIEN ACT OF 2021 (§§ 15-72-1101 — 15-72-1112) › Section 15-72-1101 - Title

This subchapter shall be known and may be cited as the "Oil and Gas Owners' Lien Act of 2021".
Added by Act 2021, No. 275,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 11 - OIL AND GAS OWNERS' LIEN ACT OF 2021 (§§ 15-72-1101 — 15-72-1112) › Section 15-72-1104 - Perfection of oil and gas security interest

(a)
An oil and gas lien is granted and exists as part of and incident to the ownership of an oil and gas right and is perfected automatically without the need to file a financing statement or other type of documentation.
(b)
An oil and gas lien exists and is perfected as of July 28, 2021.
Added by Act 2021, No. 275,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 11 - OIL AND GAS OWNERS' LIEN ACT OF 2021 (§§ 15-72-1101 — 15-72-1112) › Section 15-72-1105 - Commingling

(a)
If oil or gas in which there exists more than one (1) oil and gas lien is commingled with other oil or gas in such a manner that the identity of the specific oil or gas is lost, then the oil and gas lien continues without interruption into and attaches to the resulting commingled product and is perfected automatically as of the date of its original perfection, but only as to volumes out of the commingled product equal to the volume of product to which the oil and gas lien originally attached.
(b)
The oil and gas lien in the commingled product has priority over a security interest or other lien that is not an oil and gas lien or permitted lien, whether or not the security interest or other lien has been properly perfected.
(c)
If more than one (1) oil and gas lien attaches to the commingled product, then the oil and gas liens rank equally in the proportion that the respective sales prices secured by each oil and gas lien bears as a percentage of the total of the sales prices secured by all oil and gas liens applicable to the product at the time the product was commingled.
(d)
This section recognizes the continuation of oil and gas lien rights of an interest owner in the commingled product stream only as to a volume of oil or gas proportionate to the volume of oil or gas that originated from the interest owner, with that volume of the commingled product being considered to have maintained a distinct identity as being available for sale or transportation under the specific contractual arrangements applicable to the product at the time the product entered the commingled product stream.
Added by Act 2021, No. 275,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 11 - OIL AND GAS OWNERS' LIEN ACT OF 2021 (§§ 15-72-1101 — 15-72-1112) › Section 15-72-1106 - Rights of purchasers

(a)
A purchaser takes free of an oil and gas lien otherwise applicable to the oil or gas purchased and is relieved of an obligation to hold revenue or proceeds from the sale of production for the benefit of the owners legally entitled to the revenue or proceeds from the sale of production only in the event that either of the following occurs:
(1)
The purchaser is deemed to be a buyer in the ordinary course of the first purchaser's business as defined in Article 9; or
(2)
The purchaser has paid all of the consideration due the first purchaser, including by exchange of oil or gas, net-out or set-off, under all applicable enforceable contracts in existence at the time of the payment.
(b)
Notwithstanding subsection (a) of this section, the oil and gas lien will continue uninterrupted in the proceeds paid to or otherwise due the first purchaser.
(c)
Except as specifically set forth in this section, an oil and gas lien has priority over the rights of a purchaser.
Added by Act 2021, No. 275,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 11 - OIL AND GAS OWNERS' LIEN ACT OF 2021 (§§ 15-72-1101 — 15-72-1112) › Section 15-72-1107 - Priority relative to other liens or security interests

Except for a permitted lien, an oil and gas lien is a lien that takes priority over any other lien, whether arising by contract, law, equity or otherwise, or security interest.
Added by Act 2021, No. 275,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 11 - OIL AND GAS OWNERS' LIEN ACT OF 2021 (§§ 15-72-1101 — 15-72-1112) › Section 15-72-1108 - Legal title

This subchapter does not affect:
(1)
The time at which legal title to oil and gas may pass by agreement or operation of law subject to an oil and gas lien;
(2)
The right of a first purchaser to take or receive oil and gas under the terms of a lease, provided that the lease shall not modify, waive, or abrogate in any respect the rights of an interest owner under this subchapter; or
(3)
Subject to §
15-72-1109
, the right of a first purchaser to take or receive oil and gas under an agreement to sell.
Added by Act 2021, No. 275,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 11 - OIL AND GAS OWNERS' LIEN ACT OF 2021 (§§ 15-72-1101 — 15-72-1112) › Section 15-72-1109 - Waiver

(a)
An interest owner is not required, as a condition or term of an agreement to sell or otherwise, to:
(1)
Waive, relinquish, or release an oil and gas lien or a right under this subchapter other than upon payment in full of the sales price; or
(2)
Agree to a provision that would apply the law of a state other than this state insofar as the law of the other state relates to rights under this subchapter.
(b)
A purported waiver, relinquishment, release, or provision required as a condition or term of agreement referenced under subsection (a) of this section is void as a matter of the public policy of this state.
(c)
Notwithstanding subsection (a) of this section, an interest owner or a representative may waive, relinquish, or release an oil and gas lien or a right under this subchapter or agree to a provision that would apply the law of a state other than this state insofar as the waiver, relinquishment, release, or agreement to a provision that would apply the law of the other state relates to rights under this subchapter only as to the interest owner's oil and gas right, if the first purchaser either:
(1)
Posts a letter of credit in a form and an amount satisfactory to the interest owner or representative; or
(2)
Agrees to a binding contractual arrangement satisfactory in form and substance to the interest owner or representative to prepay or escrow the sales price under an agreement to sell satisfactory in form and substance to the interest owner and performs all of the first purchaser's obligations under the binding contractual arrangement.
Added by Act 2021, No. 275,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 11 - OIL AND GAS OWNERS' LIEN ACT OF 2021 (§§ 15-72-1101 — 15-72-1112) › Section 15-72-1111 - Rights of operator not impaired

(a)
This subchapter does not impair an operator's right to be paid, to set-off funds, or to withhold funds from an interest owner as security for or in satisfaction of a debt or security interest.
(b)
In the case of a dispute between an operator and an interest owner, a good-faith tender of funds by a person operates as a tender of the funds to both the operator and the interest owner if the tender of funds is to:
(1)
The person that the operator and the interest owner jointly direct the first purchaser in writing to pay;
(2)
A person that otherwise shows himself or herself or itself to be the person entitled to the funds; or
(3)
A court of competent jurisdiction in the event of litigation or bankruptcy.
Added by Act 2021, No. 275,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 72 - OIL AND GAS PRODUCTION AND CONSERVATION (§§ 15-72-101 — 15-72-1112) › Subchapter 11 - OIL AND GAS OWNERS' LIEN ACT OF 2021 (§§ 15-72-1101 — 15-72-1112) › Section 15-72-1112 - Rights cumulative

(a)
This subchapter and the rights granted under this subchapter are cumulative with all other rights an interest owner may otherwise have at law or in equity.
(b)
To the extent that there is a conflict between this subchapter and other rights an interest owner has at law or in equity, then the rights of the interest owner are to be liberally construed to the end that those rights that afford the interest owner the most comprehensive protection to secure the receipt by the interest owner of the sales price shall be given preference.
(c)
The rights of an interest owner accrued before July 28, 2021, shall be preserved to the extent that the rights are not in conflict with this subchapter.
Added by Act 2021, No. 275,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 73 - OIL AND GAS LEASES AND LEASE INTERESTS (§§ 15-73-201 — 15-73-409) › Subchapter 2 - LEASES GENERALLY (§§ 15-73-201 — 15-73-208) › Section 15-73-201 - Lease extended by production - Scope

(a)
(1)
The term of an oil and gas, or oil or gas, lease extended by activities on lands in one (1) section or pooling unit, whether established by rule or by order of the Oil and Gas Commission or the lease, shall not be extended to sections or pooling units under the lease where there has been no activity.
(2)
This subsection does not prevent the parties to the lease from agreeing to a continuous drilling provision in order to extend the lease term to additional lands drilled or included in another section or unit if the lessor's waiver of the right to terminate the lease to the additional lands, sections, or units where no activity has occurred before the expiration of the lease is fully set forth in the lease or another agreement in bold, enlarged, or other distinctive print.
(b)
After the primary term of a lease in an uncontrolled oil field with no spacing requirements, a producing well shall contain a maximum of one (1) governmental quarter-quarter section as a production unit.
Acts 1983, No. 330, §§ 1-3; A.S.A. 1947, §§ 53-321 -- 53-323; Acts 2011, No. 857, § 1.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 73 - OIL AND GAS LEASES AND LEASE INTERESTS (§§ 15-73-201 — 15-73-409) › Subchapter 2 - LEASES GENERALLY (§§ 15-73-201 — 15-73-208) › Section 15-73-202 - Leases of oil, gas, and mining interests by churches, lodges, and eleemosynary institutions

Except where otherwise provided for in the charter, constitution, or bylaws of any church, lodge, or other eleemosynary institution, the trustee, deacons, or other governing body shall have the right and authority to make, execute, and deliver oil, gas, and mining leases, and mineral deeds upon lands owned by the institutions upon such terms and conditions as the governing body shall deem to be in the best interest of the institutions, and the majority vote of the body shall control in all such actions taken by the body.
Acts 1923, No. 628, § 1; Pope's Dig., §§ 10503, 11370; A.S.A. 1947, § 53-301.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 73 - OIL AND GAS LEASES AND LEASE INTERESTS (§§ 15-73-201 — 15-73-409) › Subchapter 2 - LEASES GENERALLY (§§ 15-73-201 — 15-73-208) › Section 15-73-203 - Forfeiture of oil, gas, or mineral leases - Duty of lessee to cancel or release

(a)
It shall be the duty of each person holding an oil, gas, or other mineral lease for prospecting and exploiting for oil, gas, or other minerals, upon any real estate in the State of Arkansas, upon forfeiting the rights to further prospect on the lands by failure to pay any rental or to perform any condition imposed by the terms of the lease on the lessee, or otherwise forfeiting the rights under the lease, upon the notice hereinafter prescribed in §
15-73-204
by the lessor, to execute a release to the grantor or otherwise remove any cloud or encumbrance on the title to the lands by reason of the forfeited lease.
(b)
(1)
However, it shall be sufficient if the lessee in the original lease, or his or her assignee of record, shall endorse on the margin of the record of the original lease a cancellation or release of the lease. Endorsing on the margin of the record of the original release such words as "FORFEITED AND CANCELLED" followed by the date of entry and the signature of the owner of the lease of record, either the original lessee or the then owner by proper assignments of record, attested to by the recorder, shall be sufficient. No satisfaction or cancellation on the margin of the record shall be sufficient unless it is attested to by the recorder in person or by his or her deputy.
(2)
No person shall be required to release of record any portion of an original lease which he or she does not own, but is responsible only for that portion of the lease to which he or she holds title of record.
Acts 1921, No. 192, § 1; 1923, No. 170, § 1; Pope's Dig., § 10505; A.S.A. 1947, § 53-312.
Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 6 - OIL, GAS, AND BRINE (§§ 15-71-101 — 15-76-324) › Chapter 73 - OIL AND GAS LEASES AND LEASE INTERESTS (§§ 15-73-201 — 15-73-409) › Subchapter 2 - LEASES GENERALLY (§§ 15-73-201 — 15-73-208) › Section 15-73-204 - Notice to lessee to release forfeited lease - Damages for failure to release

Any owner of lands upon which a lease for the development of oil or gas or other minerals has been given and the lessee forfeits his or her rights at any time to further prospect for such minerals upon the lands by reason of a failure to pay periodical rentals or failure to perform other conditions that nullify the lease as to lessee's rights therein may give written notice, served in the manner of a legal summons upon the lessee, demanding that the lessee execute and place on record a release which in effect will remove any cloud existing upon the title of the lands as provided in §
15-73-203
. Upon failure of the lessee to comply with the notice, he or she shall be liable to the lessor or owner of the lands:
(1)
In double damages in whatever sum the owner of the lands may sustain by reason of the cloud or encumbrances upon the lands, after thirty (30) days from the service of the notice, to be not less than two (2) annual rentals as fixed by the original lease; and
(2)
For all costs, including a reasonable attorney's fee to be fixed by the court.
Acts 1921, No. 192, § 2; 1923, No. 170, § 2; Pope's Dig., § 10506; A.S.A. 1947, § 53-313.