Arkansas Code § 15-71-107 - Control or Regulation of Oil and Gas Production -- Assessment on Production -- Use of Money -- Increase in Assessment

(a) (1) All common sources of supply of crude oil discovered after January 1, 1937, if so found necessary by the Oil and Gas Commission, shall have the production of oil therefrom controlled or regulated in accordance with the provisions of this act.

(2) (A) (i) The commission is authorized to assess from time to time against each barrel of oil produced and saved a charge not to exceed fifty (50) mills on each barrel.

(ii) The charge that may be assessed pursuant to this subsection shall apply to each barrel of oil produced and saved, including that from common sources of supply discovered prior to January 1, 1937.

(B) All moneys so collected shall be used solely to pay the expenses and other costs in connection with the administration of this law.

(b) (1) All common sources of supply of natural gas discovered after January 1, 1937, if so found necessary by the commission, shall have the production of gas therefrom controlled or regulated in accordance with the provisions of this act.

(2) (A) (i) The commission is authorized to assess from time to time against each one thousand cubic feet (1,000 cf) of gas produced and saved from a gas well a charge not to exceed ten (10) mills on each one thousand cubic feet (1,000 cf) of gas.

(ii) The charge that may be assessed pursuant to this subsection shall apply to each one thousand cubic feet (1,000 cf) of natural gas produced and saved, including that from common sources of supply discovered prior to January 1, 1937.

(B) All moneys collected under subdivision (b)(2)(A)(i) of this section shall be used as follows:

(i) The first four and one-half (41/2) mills of each gas assessment levied each fiscal year until July 1, 2017, shall be deposited as general revenues; and

(ii) The remainder shall be used to pay the expenses and other costs in connection with the administration of this law.

(c) Before the commission implements the collection process of any increase in the millage assessment that may be authorized by law on each barrel of oil or on each thousand cubic feet (1,000 cf) of gas, the commission shall first seek review from the Legislative Council or the Joint Budget Committee.

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Last modified: November 15, 2016