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HB 1900

INC TX-CAREGIVERS

104th Regular Session Introduced by Mike Coffey and 2 co-sponsors

HB 1900 aimed to enhance transparency for royalty owners by requiring detailed deduction itemization and imposing penalties on oil and gas operators for noncompliance.

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Bill Summary · HB 1900

Summary of House Bill 1900

Bill Number: HB 1900
Introduced: March 31, 2025
Status: Died in House Committee at Sine Die adjournment
Classification: Bill

Purpose and Intent

House Bill 1900 aimed to amend existing laws related to oil and gas production in Arkansas, specifically focusing on the information provided to royalty owners regarding deductions from their payments. The bill sought to enhance transparency and compliance in the reporting of deductions, as well as to establish clearer sanctions for noncompliance with these reporting requirements.

Key Provisions

Amendments to Reporting Requirements

  • Itemization of Deductions: The bill proposed to require operators to provide a detailed itemization of each deduction taken from payments to royalty owners. This includes:
    • The nature of each deduction
    • The purpose of each deduction
    • The amount of each deduction

Changes to Sanctions for Noncompliance

  • Civil Penalties: The bill aimed to modify the civil penalties imposed by the Oil and Gas Commission for noncompliance with information requests from royalty owners. Key changes included:
    • Establishing a maximum civil penalty of $500 for noncompliance.
    • Allowing the commission to suspend the imposition of sanctions for up to 60 days to give noncompliant parties a chance to demonstrate compliance with commission orders.

Affected Parties

The primary stakeholders affected by HB 1900 include:
- Royalty Owners: Individuals or entities entitled to receive payments from oil and gas production, who would benefit from clearer and more detailed information regarding deductions.
- Operators of Oil and Gas Wells: Companies or individuals responsible for the production of oil and gas, who would be required to comply with the new reporting standards and potential penalties for noncompliance.
- Oil and Gas Commission: The regulatory body that would enforce the new reporting requirements and sanctions.

Procedural Timeline

  • March 31, 2025: Bill filed.
  • April 1, 2025: Bill read for the first time, rules suspended, read a second time, and referred to the Committee on Agriculture, Forestry & Economic Development - House.
  • May 5, 2025: Bill died in House Committee at Sine Die adjournment.

Conclusion

While HB 1900 aimed to improve transparency and accountability in the oil and gas sector regarding royalty payments, it ultimately did not progress beyond the committee stage. The proposed changes would have had significant implications for both royalty owners and operators, enhancing the clarity of financial transactions in the industry.

Compiled from official sources — confirm details with the bill’s official record.

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