Amendment S-5256 to SF 2490
Relating to oil and gas production, including filing requirements, the authority of the department of natural resources, confidential information, pooling orders, negotiation of surface damage, imposition and distribution of a tax, and jurisdiction, and providing civil penalties
Pending
Filed May 3, 2026 in the Senate by
What it changes
- Page 6, line 15, after “subsection 1,” by inserting “and only if the producer has identified pools of existing natural hydrogen within the spacing unit,”
- Page 9, by striking lines 28 through 30 and inserting: “Sec. ___. NEW SECTION . 458A.26 Permission to enter site —— negotiation of surface damages.”
- Page 9, before line 31 by inserting: “
- Before entering a site that is subject to a pooling order under section 458A.8, or that is within an exploratory spacing unit, for purposes of an oil and gas operation, an operator shall receive written permission from the surface owner to enter the site. If the surface owner does not grant written permission to the operator to enter the site, the operator shall not enter the site for purposes of an oil and gas operation.”
- Page 9, line 31, by striking “
- ” and inserting “
- ”
- Page 9, line 31, before “Before entering” by inserting “a.”
- Page 10, line 2, after “drill.” by inserting “If the parties do not reach an agreement for payment of damages, the operator shall not enter the site to drill.”
- Page 10, after line 2 by inserting: “b. Before entering into a negotiation under paragraph “a” , the operator shall provide a written description of the opt-out procedure described in paragraph “c” . c. A surface owner may decline further communication with an operator concerning a possible agreement for the payment of any damage that may be caused by the drilling operation by providing verbal or written notice to the operator that states that the surface owner does not wish to discuss the matter further, and by submitting to the attorney general notice through mail or electronic means stating the same. Upon receipt of such notice from the surface owner, the attorney general shall forward a copy to the operator. -1- SF 2490.4528.H (1) 91 md 1/ 2 d. After receipt of notice from the surface owner pursuant to paragraph “c” , the operator shall not initiate further contact with the surface owner for purposes of an agreement for the payment of any damages that may be caused by the drilling operation, except that the operator shall continue to provide the surface owner with notices otherwise required by law. The surface owner may rescind such refusal by contacting the operator and notifying the attorney general through mail or electronic means. Unless the surface owner rescinds the refusal, the surface owner’s land shall be deemed unavailable for an agreement. e. An operator violating the contact prohibition in paragraph “d” is subject to a civil penalty of not less than ten thousand dollars for each violation.”
- Page 10, after line 2 by inserting: “
- For purposes of this section, “oil and gas operation” means the same as defined in section 458A.30.”
- By striking page 10, line 3, through page 13, line
- Title page, line 5, after “jurisdiction” by inserting “, and providing civil penalties”
- By renumbering as necessary. -2- SF 2490.4528.H (1) 91 md 2/ 2