Vote Smart's Synopsis:

Vote to concur with House amendments and pass a bill that establishes a severance tax for certain owners of land that contains geological hydrogen in Iowa.

Highlights:

• Establishes a severance tax account in the environment first fund and specifies that funds in the account will be appropriated to support water quality projects (Sec. 1).

• Requires disclosure of certain identifying information for entities engaged in actions related to oil and gas or the exploration for metallic minerals (Sec. 4).

• Authorizes land owners to seek to submit information to the Department of Natural Resources as confidential, including the following information (Sec. 7):

• Certain information listed on surface use agreements, oil and gas leases, or rights-of-way agreements;

• Information concerning off-lease midstream gathering systems or infrastructure;

• Confidential geological or geophysical well records;

• Information about a proposed transfer of permits and assets;

• Proprietary chemicals that qualify as trade secrets;

• Personal medical information; and

• Commercial information that could harm the individual’s competitive position.

• Requires the owner(s) of at least 25% of a land spacing unit containing an oil well to enter a pooling order in the absence of voluntary pooling that authorizes well drilling on the property (Sec. 10).

• Authorizes cost recovery for nonconsenting owners of a well for which a pooling order is created (Sec. 10).

• Authorizes nonconsenting owners of a well to be compensated for their share of the production from drilling after the producer of drilling has received 100% compensation for the owner’s share of surface equipment and operation costs (Sec. 10).

• Requires drill operators to compensate well owners for damage to surface property that may be caused by a drilling operation, subject to appraisal (Sec. 11).

• Establishes a 6% severance tax on the value of oil and gas extracted from a well that will be levied in addition to any other existing taxes (Sec. 12).

• Specifies that when ownership of produced oil or gas is shared, each owner is responsible for its proportionate share of severance tax (Sec. 12).

• Specifies the distribution of revenue from the severance tax established by this Act, and requires a portion of the revenue to be used for various watershed projects that support water quality and water quality education (Sec. 13).

Full Bill Text

Vote Smart's Synopsis:

Vote to amend and pass a bill that establishes a severance tax for certain owners of land that contains geological hydrogen in Iowa.

Highlights:

• Establishes a severance tax account in the environment first fund and specifies that funds in the account will be appropriated to support water quality projects (Sec. 1).

• Requires disclosure of certain identifying information for entities engaged in actions related to oil and gas or the exploration for metallic minerals (Sec. 4).

• Authorizes land owners to seek to submit information to the Department of Natural Resources as confidential, including the following information (Sec. 7):

• Certain information listed on surface use agreements, oil and gas leases, or rights-of-way agreements;

• Information concerning off-lease midstream gathering systems or infrastructure;

• Confidential geological or geophysical well records;

• Information about a proposed transfer of permits and assets;

• Proprietary chemicals that qualify as trade secrets;

• Personal medical information; and

• Commercial information that could harm the individual’s competitive position.

• Requires the owner(s) of at least 25% of a land spacing unit containing an oil well to enter a pooling order in the absence of voluntary pooling that authorizes well drilling on the property (Sec. 10).

• Authorizes cost recovery for nonconsenting owners of a well for which a pooling order is created (Sec. 10).

• Authorizes nonconsenting owners of a well to be compensated for their share of the production from drilling after the producer of drilling has received 100% compensation for the owner’s share of surface equipment and operation costs (Sec. 10).

• Requires drill operators to compensate well owners for damage to surface property that may be caused by a drilling operation, subject to appraisal (Sec. 11).

• Establishes a 6% severance tax on the value of oil and gas extracted from a well that will be levied in addition to any other existing taxes (Sec. 12).

• Specifies that when ownership of produced oil or gas is shared, each owner is responsible for its proportionate share of severance tax (Sec. 12).

• Specifies the distribution of revenue from the severance tax established by this Act, and requires a portion of the revenue to be used for various watershed projects that support water quality and water quality education (Sec. 13).

Full Bill Text