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

   1. (1) “Director” means the Director of Production and Conservation;

   2. (2) “Existing lease rights gas supply line” means a pipeline under jurisdiction of the Oil and Gas Commission as defined in Arkansas Code § 15-71-110, which:

      1. (A) Transports natural gas from a well operator connection located at a natural gas well, or other natural gas production equipment located upstream of the production meter on the well location, to an end user; and
      2. (B) Was constructed before the initial effective date of this section, January 15, 2015;
   3. (3) “New lease rights gas supply line” means a pipeline under jurisdiction of the Oil and Gas Commission as defined in Arkansas Code § 15-71-110, which transports natural gas from a well operator connection located at a natural gas well, or other natural gas production equipment located upstream of the production meter on the well location, to an end user, and was constructed after the effective date of this section, January 15, 2015;

   4. (4) “Lease rights gas supply line operator” means a lease rights gas supply line owner who:

      1. (A) Has an agreement authorizing natural gas supply;
      2. (B) Accesses directly from the well operator connection; and
      3. (C) Owns or operates and is responsible for the construction, operation, and maintenance of a lease rights gas supply line;
   5. (5) “Lease rights gas” means the gas owned and controlled by the lease rights gas supply line operator once it passes the well operator connection; and
   6. (6) “Well operator connection” means the point at which the operator provided access point connects to the lease rights gas supply line, and at which point the control of the gas by the well operator terminates and is assumed by the lease rights gas supply line operator.
2. (b) All existing and new lease rights gas supply lines located downstream of a production meter at the natural gas well or other natural gas production equipment located on the well location, and which is under the jurisdiction of the commission as defined in Arkansas Code § 15-71-110, are not subject to the provisions of this section, but shall be subject to all other applicable federal regulations and state rules governing natural gas pipelines.

3. (c) All new lease rights gas supply lines originating at a well operator connection are subject to the following provisions:

   1. (1)

      1. (A) Utilizing the services of a plumber licensed by the State of Arkansas, the new lease rights gas supply line operator shall properly install one (1) or more properly sized regulator or regulators on the lease new rights gas supply line at the well operator connection point and all necessary piping to accommodate appropriate odorization, gas utilization metering equipment, and a properly sized regulator at the dwelling or structure where the natural gas is utilized.
      2. (B) All materials used shall be designed for natural gas service and provide structural integrity where necessary;
   2. (2) Utilizing the services of a plumber licensed by the State of Arkansas, the new lease rights gas supply line operator shall properly install an excess flow valve on the new lease rights gas supply line as close to the well operator connection as feasible;
   3. (3) Utilizing the services of a plumber licensed by the State of Arkansas, the new lease rights gas supply line operator shall properly install appropriate dehydration facilities on the new lease rights gas supply line downstream from the well operator connection, and the well operator shall properly install and maintain odorization facilities upstream of the new lease rights gas supply line;

   4. (4)

      1. (A)
4. (i) Utilizing the services of a plumber licensed by the State of Arkansas, new lease rights gas supply lines shall be constructed of steel or plastic that is:
5. (a) (a) Designed, manufactured, and intended for natural gas service in accordance with industry standards; and

6. (b) (b) Is tested and free of leaks prior to placing into service.

   1. (ii) Each test shall be at a pressure of fifty pounds per square inch gauge (50 psig) for a period of thirty (30) minutes.

      1. (iii) All piping shall be installed in a manner which will minimize strain or external loading.

         1. (iv) If plastic pipe is used, it shall be installed so as to minimize tensile stresses and must have a tracer wire or means of locating the pipe while underground.
         2. (v) Tracer wire may not be wrapped around the plastic pipe and contact with the pipe should be avoided with at least two inches (2”) between the wire and the lease rights gas supply line.
      2. (B) All new lease rights gas supply lines shall be buried and have a minimum of eighteen inches (18”) of cover or greater if necessary to not pose a safety hazard to surface activities conducted along the lease rights gas supply line right-of-way.
      3. (C) All repairs or relocation of a new lease rights gas supply line must be performed by a plumber licensed by the State of Arkansas and be in accordance with all applicable above provisions;
   2. (5) Install and maintain signage within the line of sight along the new lease rights gas supply line, with such signs to include words one inch (1”) in height and one-fourth inch (1/4”) in stroke “WARNING – DANGER – NATURAL GAS PIPELINE”, and including the name, address, and twenty-four-hour contact information of the new lease rights gas supply line operator; and

   3. (6)

      1. (A) Provide the director or his or her designee and the well operator written notification of the name, address, and telephone number that should be used to notify the new lease rights gas supply line operator of any emergency condition.

      2. (B) The new lease rights gas supply line operator shall ensure that this information is kept current with the director or his or her designee and the operator.

         1. (d)
   4. (1) For all existing lease rights gas supply lines, the well operators providing a well operator connection shall provide the director with a list of names and addresses of the legally entitled recipients of the lease rights gas, as reflected in the records of the well operator.
   5. (2) The director shall send a letter to each existing lease rights gas supply line operator notifying them of the requirements of this section.
   6. (3) Within six (6) months from the date the notification letter was sent, all existing lease rights gas supply line operators shall document compliance with subdivisions (d)(4)(A) — (F) of this section, below, by the submission of documentation to the director or his or her designee.

   7. (4) If the existing lease rights gas supply line operator fails to demonstrate compliance with subdivisions (d)(4)(A) — (F) of this section, or if the existing lease rights gas supply line operator fails to comply with subdivisions (d)(4)(A) — (F) of this section, the director or his or her designee may authorize the operator to disconnect the lease rights gas supply line until such time as the existing lease rights gas supply line operator is in full compliance with the following:

      1. (A) The lease rights gas supply line operator shall affirm that the existing lease rights gas supply line is:

         1. (i) Constructed of steel or plastic that is designed, manufactured, and intended for natural gas service in accordance with industry standards, that all piping was installed in a manner which will minimize strain or external loading, and is free of leaks; and
         2. (ii) Buried and have at least a minimum of eighteen inches (18”) of cover or greater if necessary so as not to pose a safety hazard to surface activities conducted along the lease rights gas supply line right-of-way;

      2. (B)

         1. (i) The lease rights gas supply line operator shall also affirm that all plastic piping has a tracer wire installed with the piping, or other means of locating the pipe underground.
         2. (ii) Tracer wire may not be wrapped around the plastic pipe and contact with the pipe should be avoided with at least two inches (2”) between the wire and the lease rights gas supply line.
         3. (iii) Tracer wire or other means of locating the pipe underground is required when the existing lease rights gas supply line:
7. (a) (a) Crosses public or private roads or creeks;

8. (b) (b) Crosses any property not owned by the lease rights gas supply line operator; or

   1. (c) (c) Is within twenty-five feet (25’) of the lease rights gas supply line operator’s property lines;

      1. (C) Existing lease rights gas supply line operators shall properly install or maintain:

         1. (i) One (1) or more properly sized regulators on the lease rights gas supply line at the well operator connection; and
         2. (ii) An excess flow valve as close to the well operator connection as reasonably possible;
      2. (D) All repairs or relocation of an existing lease rights gas supply line must be performed by a plumber licensed by the State of Arkansas and be in accordance with all applicable above provisions;
      3. (E) Existing lease rights gas supply line operators shall install and maintain signage within the line of sight along the existing lease rights gas supply line, with such signs to include words one inch (1”) in height and one-fourth inch (1/4”) in stroke “WARNING – DANGER – NATURAL GAS PIPELINE”, and include the name, address, and twenty-four-hour contact information of the lease rights gas supply line operator;

      4. (F)

         1. (i) Existing lease rights gas supply line operators shall provide the director or his or her designee and the operator written notification of the name, address, and telephone number that should be used to notify the lease rights gas supply line operator of any emergency condition.
         2. (ii) The lease rights gas supply line operator shall ensure that this information is kept current with the director or his or her designee and the operator; and
      5. (G) The well operator shall properly install and maintain odorization facilities upstream of the lease rights gas supply line.

9. (e)

   1. (1) Produced fluids collected by the new or existing lease rights gas supply line operator shall be removed from the site and disposed in accordance with applicable commission and Division of Environmental Quality rules.
   2. (2) Produced fluids shall not be discharged onto the ground surface or into waters of the state.
   3. (3) Any spill of produced fluids shall be remediated in accordance with applicable commission and division rules.

10. (f)

    1. (1) Unless otherwise authorized in the agreement authorizing the natural gas supply, all existing lease rights gas supply lines servicing multiple domestic or end users are prohibited, and within six (6) months from the date the notification letter was sent in accordance with subsection (d) of this section, above, the lease rights gas supply line operator shall reconfigure the lease rights gas supply line to only allow for a single domestic or end user per lease rights gas supply line.
    2. (2) Unless otherwise authorized in the agreement authorizing the natural gas supply, new lease rights gas supply lines shall only allow for a single domestic or end user per lease rights gas supply lines.

11. (g)

    1. (1) All lease rights gas supply line operators shall maintain compliance with the provisions of this section.
    2. (2) If a lease rights gas supply line operator fails to comply with the provisions of this section, the director or his or her designee shall give notice of the violation in accordance with 15 CAR § 275-104, to the lease rights gas supply line operator.
    3. (3) The lease rights gas supply line operator shall have thirty (30) days to comply with the notice of violation.
    4. (4) If the lease rights gas supply line operator fails to comply or properly request a review or appeal in accordance with 15 CAR § 275-104, then the director or his or her designee may authorize the operator to disconnect the lease rights gas supply line until such time as the lease rights gas supply line operator is in full compliance with the provisions of this section.
    5. (5) Any appeal of a director’s decision for a notice of violation issued in accordance with this subsection (g) shall not be subject to the filing fee required in accordance with 15 CAR §§ 275-101 and 275-102.
12. (h) Lease rights gas supply line operators are no longer subject to the provisions of this section if the well where the well operator connection is located is transferred to the lease rights gas supply line operator in accordance with 15 CAR § 275-211.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Source: new rule January 15, 2015; amended March 1, 2016)"