HB1413

House Bill 1413 amends existing Arkansas law regarding brine production units and the formation of brine expansion units. It grants operators the authority to petition the commission to remove specific contiguous tracts from an existing brine production unit, provided that no unplugged wells exist on those tracts, no nearby wells have been active, and there is no risk of drainage. Additionally, the bill allows operators to transfer contiguous tracts between two adjacent brine production units, subject to commission approval. To approve such a transfer, the commission must determine that the operator holds production rights to at least 75% of the adjacent units, that the transfer improves operational efficiency, and that the move will not negatively affect royalty payments or the rights of property owners. The bill provides a legal framework for adjusting the boundaries of production units to reflect operational needs while maintaining regulatory oversight.