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

   1. (1) “Director” means the Oil and Gas Commission Director of Production and Conservation;
   2. (2) “Orphan well” means a well for which a permit holder can not be located, there is no record the well is covered by an Oil and Gas Commission required bond by the last known permit holder of record, and no fees have ever been paid on the well in accordance with Arkansas Code § 15-71-110;
   3. (3) “Well site” means the area around and near the well, including any associated pits, crude oil, or produced water storage tanks or other related production facility equipment, such as injection pumps, compressors, or gas processing equipment; and
   4. (4) “Well site equipment” means the equipment, including but not limited to an associated tank battery, production and injection facility equipment, hydrocarbons from the well that are stored in tanks located on the lease, and hydrocarbons recovered during the plugging operation.

2. (b)

   1. (1) If after review of the Oil and Gas Commission records, the Director of Production and Conservation determines a well or well site to be orphaned, that well or well site may be administratively determined to be eligible for plugging, without the need for a hearing.
   2. (2) Following designation as an orphaned well or well site, the director may elect to properly plug, replug, or restore so as to remedy the situation, and authorize any person to enter upon the land to properly plug, replug, or restore so as to remedy the situation.

3. (c)

   1. (1) All work completed under this section shall be paid with funds from the Abandoned and Orphaned Well Plugging Fund.
   2. (2) Additionally, the director may dispose of all well site equipment and hydrocarbons, to offset the cost of the well plugging and well site restoration operations.
   3. (3) Proceeds from any public sale, auction, or private sale of all well site equipment or hydrocarbons shall be deposited into the Abandoned and Orphaned Well Plugging Fund or used to offset plugging costs.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Source: new rule April 13, 2008)"