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15-76-312. Unlawful drainage — Unit inclusion or accounting.
Arkansas Code — all titles (historical 2020) · legal_authorities
15-76-312. Unlawful drainage — Unit inclusion or accounting.
(a) Any owner of an interest in a tract which is adjacent to a brine production unit formed by the Oil and Gas Commission and which is not included in that unit may petition the commission to have the tract included in the unit, and the commission shall issue its order after reasonable notice and hearing to include the tract under the same terms and conditions as those then existing with respect to other tracts in the unit, provided that it is demonstrated to the satisfaction of the commission that the tract is being unlawfully drained or is in imminent danger of being so drained through the operations of the adjacent unit.
(b)(1) Any owner of an interest or interests in brine, which are neither included in nor adjacent to a unit and which are being unlawfully drained by the actions of any producer, may petition the commission for an accounting for royalty or other compensation due from the producer.
(2) After investigating the claim presented in the petition and finding probable cause to believe the claims presented in the petition to be meritorious and after reasonable notice and hearing and subsequent finding that unlawful drainage has occurred, the commission shall issue its order:
(A) Stating the amount of royalty or other compensation then due and owing, as well as the manner of calculating the amount of royalty or other compensation subsequently due and owing to the owner; and
(B) Requiring the producer to pay over the amounts to the owner.
(3) For purposes hereof, the amount of royalty or other compensation due and owing to the owner and the manner of calculating any subsequent amount of royalty or other compensation shall be determined in accordance with § 15-76-315 as if the owner were in
Source: Arkansas Code — historical release 78 (November 6, 2020) · 15-76-312
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Record provenance
Stable record: arkansas_code:legal_authorities:15-76-312
Source file: gov.ar.code.title.15.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 1df3c9fc4a4d2ed15ebecb064e3560b3c4691ac0e262e36144dae06ff0dc572a
Source location: content.xml paragraph 26854
Stored source content
15-76-312. Unlawful drainage — Unit inclusion or accounting.
(a) Any owner of an interest in a tract which is adjacent to a brine production unit formed by the Oil and Gas Commission and which is not included in that unit may petition the commission to have the tract included in the unit, and the commission shall issue its order after reasonable notice and hearing to include the tract under the same terms and conditions as those then existing with respect to other tracts in the unit, provided that it is demonstrated to the satisfaction of the commission that the tract is being unlawfully drained or is in imminent danger of being so drained through the operations of the adjacent unit.
(b)(1) Any owner of an interest or interests in brine, which are neither included in nor adjacent to a unit and which are being unlawfully drained by the actions of any producer, may petition the commission for an accounting for royalty or other compensation due from the producer.
(2) After investigating the claim presented in the petition and finding probable cause to believe the claims presented in the petition to be meritorious and after reasonable notice and hearing and subsequent finding that unlawful drainage has occurred, the commission shall issue its order:
(A) Stating the amount of royalty or other compensation then due and owing, as well as the manner of calculating the amount of royalty or other compensation subsequently due and owing to the owner; and
(B) Requiring the producer to pay over the amounts to the owner.
(3) For purposes hereof, the amount of royalty or other compensation due and owing to the owner and the manner of calculating any subsequent amount of royalty or other compensation shall be determined in accordance with § 15-76-315 as if the owner were included in a unit.
(4) In the event that the producer fails to account to the owner as provided in the order of the commission, the commission shall seek to enjoin the operations of the producer responsible for the unlawful drainage. The owner, in any action in a court of this state may recover up to three (3) times the amount of royalty or other compensation found to be due and owing by the commission upon a finding by a court that the interest in brine of the owner has been unlawfully drained by the actions of the producer.
(c) As used in this section, “unlawful drainage” or “unlawfully drained” shall be the withdrawal or removal of brine by production or displacement which deprives the owner thereof of his or her fair and equitable share of brine in violation of his or her correlative rights.
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Arkansas Code — all titles (historical 2020) · legal_authorities
15-76-315. Valuation of brine.
(a)(1)(A) The value of brine during any given year with respect to any unit established hereunder and for all purposes hereof shall be deemed to be the average price at which the operator of the unit has purchased or sold brine in Arkansas adjusted to reflect concentrations of ions, temperature, other relevant physical and chemical specifications, and delivery point.
(B) However, for purposes of this subchapter, the value shall not apply to any unit created hereunder until there shall have been actual bona fide sales or purchases of brine by the operator in sufficient volumes and under such circumstances as would establish a bona fide market value for brine from that unit.
(2) In any action by any owner against the operator of the unit for an appropriate accounting for royalty, the burden of proof that the value as determined hereunder constitutes a fair and reasonable market value of brine produced from the unit shall be upon the operator of the unit.
(3) However, no valuation of brine or any other alternate method of computing royalty or in lieu of royalty shall ever result in compensation which is less than thirty-two dollars ($32.00) per acre per year, as increased or decreased annually based on changes in the Producer Price Index for processed goods for intermediate demand published by the United States Bureau of Labor Statistics, or its successor.
(4)(A) The adjustment will be made effective as of June 1 of each year and will remain effective for payments made from June 1 of that year until May 31 of the following year.
(B) The adjustment made each year will be based on the change in the index from December of the previous year relative to the base index of March, 1995.
(C) The formula to make the adjustment is as follo
Source: Arkansas Code — historical release 78 (November 6, 2020) · 15-76-315
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 15-76-315. This identifies an authority to review, not proof of applicability.