1. (a) Definitions. As used in this section:

   1. (1) “Field seismic operations” means any geophysical method performed on the surface of the land utilizing certain instruments operating under the laws of physics respecting vibration or sound to determine conditions below the surface of the earth which may contain oil or gas and is inclusive of, but not limited to, the:

      1. (A) Preliminary line survey;
      2. (B) Acquisition of necessary permits;
      3. (C) Selection and marking of shot hole locations;
      4. (D) Necessary clearing of vegetation;
      5. (E) Shot hole drilling;
      6. (F) Implantation of charge;
      7. (G) Placement of geophones;
      8. (H) Detonation; and
      9. (I) Backfill of shot holes; and
   2. (2) “Seismic shoot” means a specific project during which field seismic operations shall be conducted with due diligence, not to exceed or substantially vary from those seismic operations indicated in the original permit application.

2. (b)

   1. (1) Any person desiring to perform field seismic operations within the State of Arkansas shall obtain a permit for each seismic shoot from the Oil and Gas Commission prior to commencing field seismic operations.
   2. (2) A copy of the approved permit shall be maintained in the central recording unit used for the seismic shoot.
   3. (3) Such permit shall be valid for a period of one (1) year from the date of issuance.
3. (c) The applicant shall make application on a form prescribed by the Director of Production and Conservation.
4. (d) Each application as filed shall be accompanied by an application fee of five hundred dollars ($500).

5. (e)

   1. (1) Each application for a 2D seismic shoot shall include information and maps to:

      1. (A) Identify the seismic shoot area;
      2. (B) Indicate the proposed location of all 2D seismic lines; and
      3. (C) Designate an area, each a 2D seismic line corridor within which a 2D seismic line may be located or relocated by permittee.
   2. (2) No 2D seismic line corridor shall extend farther than one-half (1/2) mile in either direction from the proposed location of the relevant 2D seismic line.
   3. (3) Applicants may omit areas within the outer boundaries of any 2D seismic line corridor from the 2D seismic line corridor.
   4. (4) Each application for a 3D seismic shoot shall include information and maps to identify the seismic shoot area including the 3D project outline for such seismic shoot.
   5. (5) Any relocations of a 2D seismic line or any portion thereof outside the 2D seismic line corridor designated therefore or any increase in a 3D survey outline shall be immediately reported to the director.
   6. (6) The applicant shall also be required to file an amended application showing the revised location of such relocated 2D seismic lines, if applicable.

   7. (7)

      1. (A) The applicant may also file a request, in writing, that the application with all information and maps be kept confidential for a period not to exceed twelve (12) months from the date of the filing of the original application.
      2. (B) Subject to any applicable exceptions, including without limitation the trade secret exception to the general requirements of the Freedom of Information Act of 1967, Arkansas Code § 25-19-101 et seq., said application and any information and maps submitted may be released to the extent required by a court of law or by applicable state law, regardless of the request that such be kept confidential.

   8. (8) Said application and any information and maps may also be introduced by the commission as evidence in any public hearing before the commission or in any judicial action, regardless of such request, provided, however, that permit holder shall retain the right to:

      1. (A) Object to their admissibility; and
      2. (B) Seek a closed hearing or a protective order with respect thereto.

6. (f)

   1. (1) The application shall be accompanied with evidence of the appropriate type of financial assurance, as described in 15 CAR § 275-202(d), and subject to those conditions listed therein.
   2. (2) The financial assurance shall be at least fifty thousand dollars ($50,000), but not more than two hundred fifty thousand dollars ($250,000), provided that the aggregate amount of financial assurance required for any applicant for all permits and expired permits issued pursuant to this section shall not exceed two hundred fifty thousand dollars ($250,000).
   3. (3) The amount of the financial assurance shall be determined by the director based on, but not limited to, the proximity of the seismic shoot to populated areas, cultural features, sensitive environmental areas, and past commission enforcement history against the applicant.
   4. (4) The financial assurance required to be filed shall remain in effect for one (1) year following the conclusion of all field seismic operations by the permit holder in the State of Arkansas.

7. (g)

   1. (1) Upon review of a completed permit application, the director shall either issue the permit or deny the permit application.
   2. (2) If the permit application is denied, the applicant may file an application for a hearing to appeal the director’s decision in accordance with 15 CAR §§ 275-101 and 275-102, and other applicable hearing procedures.

8. (h)

   1. (1) No entry shall be made by any person to conduct field seismic operations upon the lands where such field seismic operations are to be conducted without the permit holder having first given notice at least ten (10) calendar days prior to commencement of field seismic operations.
   2. (2) The notice shall be in writing and given either personally or by certified United States Postal Service to the surface owners reflected in the tax records of the counties where the lands are located at the mailing addresses identified for such surface owners in such records.

   3. (3)

      1. (A) In instances where it can be reasonably ascertained that there are occupants residing on the lands who are not the surface owners, such notice shall also be given such occupants, unless there is no known mailing address and personal notice cannot reasonably be given.
      2. (B) Any such notice to an occupant shall be deemed delivered if delivered personally or deposited in the United States Postal Service postage prepaid to said occupants at the mailing address of the lands.
   4. (4) Written notice shall also be given either personally or by certified United States Postal Service to operators, as reflected in the records of the commission, of producing wells within the seismic shoot area at the mailing addresses identified for such operators in said records.

   5. (5) The notice shall contain the:

      1. (A) Name of the person or entity that is conducting the field seismic operations;
      2. (B) Proposed location of the field seismic operations; and
      3. (C) Approximate date the person or entity proposes to commence field seismic operations.
9. (i) The permit holder shall also notify the commission within five (5) business days of the commencement and completion of each seismic shoot.
10. (j) All vehicles utilized by the permit holder, or its agents or contractors, shall be clearly identified by signs or markings, utilizing letters and/or numbers a minimum of three inches (3”) in height and one-half inch (1/2”) wide, indicating the name of such agent.

11. (k)

    1. (1) No shot hole shall be drilled nor charge detonated within two hundred feet (200’) of any residence, water well, oil well, gas well, brine well, injection well, or other structure without having first secured the express written authority of the owner or owners thereof, and the permit holder shall be responsible for any resulting damages in accordance with this section.
    2. (2) Written authority must also be obtained from the owner or owners if any charge exceeds the maximum allowable charge within the scaled distance below: MAXIMUM ALLOWABLE DISTANCE TO CHARGE STRUCTURE (FT)* WEIGHTS (LBS)* 50 0.5 100 2.0 150 4.5 200 8.0 250 12.0 300 18.0 350 25.0 *Based upon a charge weight of seventy (70) FT/LB ½
12. (l) The maximum allowable charge weight is twenty-five pounds (25 lbs.), unless the permit holder requests and secures the prior written authorization from the director.

13. (m)

    1. (1) All holes drilled for field seismic activity shall be properly back filled with soils and/or other suitable material, and tamped.
    2. (2) A mound may be left over the hole for settling allowance.

14. (n)

    1. (1) All seismic sources placed for detonation for use in field seismic operations shall contain additives to accelerate the biodegradation thereof and shall be handled with due care in accordance with industry standards.
    2. (2) The cap leads for any seismic sources that fail to detonate shall be buried at least three feet (3’) deep.
15. (o) All vegetation cleared to the ground for the purposes of field seismic activity shall be cleared in a competent and workmanlike manner in the exercise of due care.

16. (p)

    1. (1) Unless otherwise consented to by the surface owner in writing, permit holder shall not cut down any tree measuring six inches (6”) or more in diameter, as measured at a height of three feet (3’) from the ground surface unless there are no reasonable alternatives to the removal of such tree or trees available to permit holder.
    2. (2) Permit holder shall compensate surface owner the value of all such trees as determined by a forester licensed by the State of Arkansas.
17. (q) All excessive rutting or soil disturbances resulting from seismic activity shall be repaired or restored to the original condition and contour to the extent reasonable, unless otherwise agreed to by the permit holder and the surface owner in writing.
18. (r) All fences removed for the purposes of field seismic activity shall be replaced, unless otherwise agreed to by the permit holder and the surface owner in writing.
19. (s) All debris associated with the seismic activity shall be removed and properly disposed.

20. (t)

    1. (1) Any person who conducts any field seismic operations for a seismic shoot in the state without having obtained a permit therefore shall be subject to a civil penalty of one thousand dollars ($1,000) for each day such field seismic operations continue.
    2. (2) Any person who does not fully comply with any other provision of this section shall be subject to a civil penalty of one thousand dollars ($1,000) for each violation.
21. (u) Failure to comply with the provisions of this section or Arkansas Code § 15-71-114, as amended, or any other applicable orders or rules of the commission may result in the forfeiture of the financial assurance to remediate damages or recover civil penalties assessed in accordance with subsection (t) of this section, above.

22. (v) In addition, any surface owner may seek to recover damages from the financial assurance as follows:

    1. (1)

       1. (A) Any surface owner seeking to recover under such financial assurance for damages caused by the performance of such field seismic operations must file written notice of claim, on a form prescribed by the director, within one (1) year of the date of expiration of the permit.
       2. (B) Provided, however, that such claim shall be subordinate to the rights of the commission;

    2. (2)

       1. (A) Any claim received from a surface owner shall be investigated by the director and a decision shall be rendered by the director.
       2. (B) If the director’s decision is not satisfactory to either the surface owner or the permit holder, either party may file an application for a hearing to appeal the director’s decision in accordance with 15 CAR §§ 275-101 and 275-102, and other applicable hearing procedures.
       3. (C) At a hearing, the surface owner must prove:

23. (i) Actual damages occurred;

    1. (ii) Such damages were caused by:
24. (a) (a) The negligence of the permit holder;

25. (b) (b) A violation of this section by the permit holder; or

    1. (c) (c) An unreasonable or excessive use of the surface owner’s land by the permit holder under the applicable oil and gas lease or other agreement under which the surface owner and/or mineral owner consents to the use of the surface for seismic operations; and

       1. (iii) The amount of such damages;

    2. (3)

       1. (A) If the commission finds that the permit holder is liable to the surface owner for any such damages, the permit holder shall have thirty (30) days from the effective date of the order to pay the surface owner the amount specified by the commission.
       2. (B) If the permit holder fails to pay the amount specified by the commission to the surface owner, the director may initiate bond forfeiture proceedings as described in 15 CAR § 275-202(k) to pay damages specified by the commission, provided, however, that such amount shall be subordinate to the rights of the commission; and
    3. (4) If the permit holder’s financial assurance is forfeited, the permit holder shall cease all field seismic operations until another bond in the same amount of the original bond is filed with the commission for the same purposes as the original bond.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Source: 1992 rule book; amended July 3, 2003; amended June 15, 2008)"