(b) General provisions.

1. (1) A digital asset mining business in operation before the effective date of this subpart shall be in full compliance with the noise provisions enacted in Arkansas Code § 14-1-604(b)(3) no later than ninety (90) days after this subpart is effective.

2. (2)

   1. (A) No digital asset mining business created after the effective date of this subpart shall operate in Arkansas without first obtaining a permit in accordance with the provisions of this subpart.
   2. (B) An existing digital asset mining business shall not operate in Arkansas without first applying for a permit with the Oil and Gas Commission within ninety (90) days of the date this subpart is promulgated.
   3. (C) A digital asset mining business:

(i) Shall operate in accordance with this section, 15 CAR § 275-902, and 15 CAR § 275-903; and

1. (ii) Shall not operate if its digital asset mining permit application or transfer request is denied or its digital asset mining permit is revoked by the Oil and Gas Commission.

2. (3) A digital asset mining business may operate in Arkansas if the digital asset mining business:

   1. (A) Is issued a permit from the Oil and Gas Commission in accordance with 15 CAR § 275-902 or 15 CAR § 275-903;
   2. (B) Establishes that the business is not a prohibited foreign-party-controlled business as defined by and in accordance with Arkansas Code § 14-1-606;
   3. (C) Maintains compliance with all local government ordinances;
   4. (D) Maintains compliance with any rule or rate for utility service provided by or on behalf of a public entity;
   5. (E) Maintains compliance with all applicable state and federal laws, including but not limited to the Arkansas Data Centers Act of 2023, Arkansas Code § 14-1-601 et seq., and Arkansas Code § 23-119-101 et seq.;
   6. (F) Pays all applicable taxes and government fees in acceptable forms of currency; and

   7. (G) Operates in a manner that will not cause any stress on the electric public utility’s generation capabilities or transmission network.

      1. (c) Definitions. As used in this subpart:
3. (1) “Applicant” means an entity who makes an application to the Oil and Gas Commission to operate a digital asset mining business;
4. (2) “Blockchain network” means a group of computers operating and processing together to execute a consensus mechanism to agree upon and verify data in a digital record for the purpose of generating digital assets;
5. (3) “Digital asset” means cryptocurrency, virtual currency, and natively electronic assets, including without limitation stable coins, nonfungible tokens, and other digital-only assets, that confer economic, proprietary, or access rights or powers;
6. (4) “Digital asset miner” means an individual who mines for digital assets and holds the digital asset mining business permit issued under this subpart;
7. (5) “Digital asset mining” means use of electricity to power a computer for the purpose of securing or validating a blockchain network;
8. (6) “Digital asset mining business” means a group of computers working at a single site that consumes more than one megawatt (1 MW) of electrical energy on an average annual basis for the purpose of generating digital assets by securing a blockchain network;
9. (7) “Director” means the Director of Production and Conservation;
10. (8) “Home digital asset mining” means mining digital assets in areas zoned for residential use;
11. (9) “Legislative body" means the quorum court of a county or the city council, board of directors, board of commissioners, or similar elected governing body of local government;
12. (10) “Local government” means a county, a city of the first class, a city of the second class, or an incorporated town;
13. (11) “Mining facility” means the building or other portable building structure where the digital asset mining computers are located;
14. (12) “Node” means a computational device that contains a copy of blockchain-distributed ledger technology and includes a series;
15. (13) “Ordinance” means an ordinance, resolution, or other appropriate legislative enactment of a legislative body;
16. (14) “Person” means an individual or legal entity;

17. (15) “Regulated entity” means a:

    1. (A) Digital asset miner;
    2. (B) Person owning or operating a mining facility or a digital asset mining business;
    3. (C) Mining facility; or
    4. (D) Digital asset mining business; and
18. (16) “Residence” means a permanent dwelling place, unit, or accessory structure.