Arkansas Administrative Code › Agency 002 - Game and Fish Commission › Rule 002.00.06-005 - Oil & Gas Policy & Procedures on Commission Lands

Current through Register Vol. 49, No. 6, June, 2024
I.
GENERAL PROVISIONS AND POLICY
1.
Authority.
Under the
		  provisions of Amendment 35 to the Constitution of the State of Arkansas, the
		  Arkansas State Game and Fish Commission is responsible for the control
		  management, restoration, conservation and regulation of all property owned by
		  the Commission for fish and wildlife management. The provisions of Act 524 of
		  1975, as amended by Act 684 of 1981, Act 691 of 1983, and Act 537 of 1991,
		  recognize that the Arkansas State Game and Fish Commission is responsible for
		  mineral leasing on Commission-owned lands and managing those land and mineral
		  resources to ensure protection and enhancement of the public trust. This
		  regulation provides the framework for prudent management of mineral exploration
		  and production activities, including leasing and development of oil, gas, and
		  other mineral resources, on Commission-owned lands.
2.
Policy.
It shall be the
		  policy of the Arkansas State Game and Fish Commission (hereinafter the
		  Commission) to provide for the recovery of oil, gas, and other mineral
		  resources on Commission-owned lands only when such recovery will be consistent
		  with applicable Federal and State law, including Commission regulations, and in
		  the best interest of the people of the State of Arkansas as demonstrated by an
		  abiding commitment to the paramount protection of land and wildlife resources
		  and habitat values, while allowing prudent compatible natural resource
		  development that could potentially provide substantial economic support for
		  Commission lands and programs.
It is the policy of the Commission that management of oil, gas
			 and other mineral resources recovery and associated activities on
			 Commission-owned lands be compatible with the conservation, protection, and
			 management of fish and wildlife resources, ecological diversity, and habitat
			 values. Commission-owned lands represent the full spectrum of ecological
			 regions and biotic diversity in the State of Arkansas and, to the fullest
			 extent reasonably possible, the unique and valuable character of
			 Commission-owned lands shall be protected.
3.
Terms and Conditions, Permits,
		  Agreements, and Lease Forms.
The
Commission shall establish guidelines for minimum fees and
			 royalties, as well as the terms and conditions for various types of permits,
			 surface use agreements, and leases for Commission-owned lands, including such
			 activities as geophysical exploration, production, construction of roads and
			 pipelines, and other associated activities and infrastructure. The Commission
			 may delegate responsibility for development and approval of such guidelines,
			 permits, agreements, and lease forms to an Oil and Gas
Committee composed of three Commissioners appointed from time to
			 time by the Chairman. All guidelines, standard terms and conditions, and form
			 agreements, leases and permits shall be available to the public and provided to
			 interested parties upon request.
4.
Initiation of the Leasing
		  Process.
A. Any person, firm, company,
		  corporation or association may apply in writing to the Commission to request
		  that specified Commission-owned lands be offered for leasing. In such instance,
		  the applicant shall be responsible for conducting title searches to determine
		  net mineral ownership, subject to Commission review. The Commission may by
		  regulation establish a standard processing fee to be paid by each applicant
		  when requesting Commission lands be offered for leasing. The Commission need
		  not process an application which does not fully conform to the requirements
		  specified in Commission regulations or on forms adopted by the
		  agency.
B. The Commission may, on
		  its own initiative, identify certain Commission-owned lands to be offered for
		  leasing. In such instance, the Commission may request written proposals from
		  qualified applicants and impose such restrictions and requirements as the
		  Commission shall determine are necessary or advisable to protect the land and
		  wildlife resources on Commission-owned lands.
5.
Schedules of Terms and Conditions.
The Commission may establish a schedule of minimum fees and royalties,
		  as well as the terms and conditions for various types of permits, surface use
		  agreements, and leases for Commission-owned lands, which schedules may be
		  amended from time to time as necessary or advisable, including modification to
		  fit the needs and requirements of proposed oil, gas, and/or other mineral
		  resources development on the particular Commission-owned property under
		  consideration. Any such schedule, agreement, or lease form intended for general
		  application by the Commission shall be available to the public and provided to
		  interested parties upon request.
6.
Applications to Initiate the Leasing Process.
A. Any person interested in securing a lease
		  for oil, gas, or other mineral resources on Commission lands shall file a
		  written application made upon forms prescribed by the Commission
		  staff.
B. The application shall be
		  filed with the Arkansas State Game and Fish Commission, #2 Natural Resources
		  Drive, Little Rock, Arkansas. 72205. AH applications must be completed in
		  conformance with the Rules and Regulations of the Commission before the
		  application will be accepted.
C.
		  The applicant shall submit an application fee sufficient to cover the cost of
		  application review by Commission staff, and which shall be determined by
		  Commission staff from time to time, subject to final approval by the
		  Commission. The application fee shall be a minimum of $500.00 and shall be
		  non-refundable.
D. The Commission
		  shall determine if other state or federal agencies have or may have an interest
		  in the area for which an application to lease has been received. If directed to
		  do so by the Commission, the description of the property in question shall be
		  submitted by the applicant to all such agencies that may have an interest in
		  the lands described in the application for review and comment by such other
		  agencies. Federal agencies shall be allowed such time to respond as required by
		  federal law, rule, regulation, or the nature of the federal interest in the
		  land, and the Commission may allow such additional time for review and comment
		  by any other agencies as necessary or advisable given the circumstances of the
		  application. The Commission may allow such longer or shorter period for review
		  and comment based on the particular circumstances under consideration, so long
		  as such period complies with all applicable state and federal laws and
		  regulations.
E. The Commission
		  shall consider all of the facts and circumstances involving the particular
		  application and determine whether proceeding to offer the land for leasing of
		  the oil, gas, and/or other mineral resources is in the best interest of the
		  Commission and the citizens and wildlife resources of Arkansas. If the
		  Commission decides to proceed with offering the Commission-owned land for
		  mineral leasing, any proposed lease for the subject property shall be presented
		  to the Commission, with notification to the public and an opportunity for
		  public comment, prior to final approval and execution by the
		  Commission.
7.
Initiation by
the
Commission.
A. The Commission may initiate an offer to
		  lease Commission-owned lands for oil, gas, and/or other mineral resources
		  development at any time on its own initiative or upon the recommendation of
		  Commission staff.
B. In the event
		  that the Commission initiates an offer to lease Commission-owned lands,
		  Commission staff shall prepare a proposal containing restrictions or
		  limitations desired by the Commission to ensure the paramount protection of
		  land and wildlife resources on the particular property, consistent with any
		  applicable management plan, while allowing prudent compatible natural resource
		  development. Any such proposal shall include a statement, based on a reasoned
		  consideration of all facts and circumstances, that Commission staff has
		  determined the property is in a location prospective of oil, gas, and/or other
		  mineral resources which may be produced in commercial quantities, and that such
		  production may provide significant economic return for the benefit of the
		  citizens and wildlife resources of the State.
C. The Commission shall consider all of the
		  facts and circumstances involving the particular staff proposal and such other
		  information brought to the attention of the Commission to determine whether
		  proceeding to offer the land for mineral leasing is in the best interest of the
		  Commission and the citizens and wildlife resources of Arkansas. If the
		  Commission decides to proceed with offering the Commission-owned land for
		  leasing of oil, gas, and/or other mineral resources, any proposed lease for the
		  subject property shall be presented to the Commission in regular or special
		  session, with notification to the public and an opportunity for public comment,
		  prior to final approval and execution by the Commission.
8. Penalties.
A. Any person removing any mineral resource,
		  including, but not limited to sand, gravel, oil, natural gas, casinghead gas,
		  coal, or other valuable minerals, or any timber from Commission-owned lands
		  without first obtaining a lease or permit to do so from the Commission shall be
		  deemed guilty of a misdemeanor and, upon conviction by a court of competent
		  jurisdiction, shall be punished by a fine of not less than one thousand dollars
		  ($1,000.00) and not more than five thousand dollars ($5,000.00), and each day
		  of unauthorized taking shall constitute a separate offense.
B. The Commission, or the Attorney General
		  upon request from the Commission, may bring suit to enjoin any activity in
		  violation of Commission regulations or other State law, and may bring suit to
		  recover the full value of any mineral resources or timber illegally removed, as
		  well as all severance taxes and royalties due as a result of such
		  removal.