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HB 1413

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2025 Regular Session Introduced by Cyndi Carrasco and 5 co-sponsors

HB 1413 allows Arkansas brine operators to adjust production units for efficiency, enhancing operations while protecting landowner rights during tract transfers.

Committee report: do pass adopted; reassigned to Committee on Appropriations
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Bill Summary · HB 1413

Summary of House Bill 1413 (Act 254)

Bill Number: HB 1413
Title: To Amend the Law Concerning Brine Production; and to Amend the Law Concerning the Formation of Brine Production Units
Status: Enacted as Act 254
Introduced: February 5, 2025

Purpose and Intent

House Bill 1413 aims to update and clarify the laws governing brine production and the formation of brine production units in Arkansas. The bill seeks to provide operators with more flexibility in managing brine production units, particularly regarding the removal and transfer of land tracts within these units.

Key Provisions

The bill includes several significant amendments to existing laws:

  1. Reduction of Brine Production Units:

    • Operators can apply to the commission to reduce the size of a brine production unit by removing one or more contiguous tracts.
    • Approval is contingent on:
      • No unplugged brine production or disposal wells on the removed tracts.
      • No brine production or disposal wells within half a mile of the removed tracts during the unit's operation.
      • Assurance that the removal will not risk draining the removed tracts.

  2. Transfer of Tracts Between Units:

    • Operators of adjacent brine production units can apply to transfer contiguous tracts from one unit to another.
    • The commission must approve the transfer if:
      • The operator has rights to produce brine from at least 75% of the adjacent unit.
      • The transfer enhances the efficiency of the receiving unit.
      • The transfer will efficiently drain the area of the transferred tracts.
      • The transfer does not adversely impact royalty payments or impair the rights of owners of the transferred tracts.

  3. Creation of Brine Expansion Units:

    • Upon approval of a transfer, the transferred tracts will become part of a brine expansion unit adjacent to the receiving unit.

Impact

The enactment of HB 1413 is expected to:
- Provide brine production operators with greater operational flexibility.
- Enhance the efficiency of brine production processes.
- Protect the rights of landowners by ensuring that transfers do not negatively impact their interests.

Procedural Timeline

  • February 5, 2025: Bill filed and introduced.
  • February 20, 2025: Amendment No. 1 adopted, and the bill ordered engrossed.
  • February 27, 2025: Returned by the committee with a recommendation to pass.
  • March 3, 2025: Passed by both the House and Senate.
  • March 4, 2025: Correctly enrolled and transmitted to the Governor's Office.
  • March 6, 2025: Notification that HB 1413 is now Act 254.

This summary provides an overview of the legislative changes introduced by HB 1413, highlighting its purpose, key provisions, and the anticipated impact on brine production operations in Arkansas.

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

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