Arkansas Code
Chapter 71 - Oil and Gas Commission
§ 15-71-115. Abandoned and Orphaned Well Plugging Fund

(a) There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Abandoned and Orphaned Well Plugging Fund”.
(b)
(1) The fund shall receive funds from:
(A) Fees assessed by the Oil and Gas Commission;
(B) Forfeited bonds;
(C) Proceeds from the sale of hydrocarbons and production equipment located at the site of abandoned and orphaned wells;
(D) Grants and gifts from private and public sources; and
(E) Any other revenue as may be authorized by law.

(2) All moneys collected under the fund shall be deposited into the State Treasury to the credit of the fund as special revenues.

(c)
(1) The fund shall be used by the commission to:
(A) Make expenditures through contracts to plug abandoned and orphaned wells and to remediate associated production facilities;
(B) Award grants to landowners to plug abandoned and orphaned wells and to remediate associated production facilities; and
(C) Make expenditures for emergency repairs to wells or production facilities endangering the public health and safety.

(2) Expenditures from the fund may be authorized by the commission through contracts or grants for the payment of plugging costs or the cost of performing corrective work as follows:
(A) If after the commission gives the well operator notice and hearing and finds that an abandoned well must be plugged, that a leaking well must be plugged, replugged, or repaired, or that a well site must be restored and the well operator fails to perform the required plugging, replugging, repair, or restoration work within the time frame prescribed in the commission order, the commission may authorize fund expenditures to plug, replug, or repair the well or wells and to restore the well site in accordance with commission rules; and
(B) If the abandoned well or well site operator cannot be identified or located for purposes of notice and hearing, the commission may administratively determine the well or well site to be orphaned, as defined by commission rules, and may authorize expenditures from the fund to plug the orphaned well and restore the orphaned well site.

(d) The fund may be used by the commission to provide security in the event an oil or gas well operator fails to perform plugging responsibilities under the provisions of § 15-72-217 or fails to correct well conditions that create an imminent danger to the health or safety of the public or threaten significant environmental harm or damage to property.