(c) A digital asset mining business:

1. (1) Shall operate in accordance with this subpart; and

2. (2) Shall not operate if its:

   1. (A) Digital asset mining permit application is denied;
   2. (B) Digital asset mining permit is revoked by the Oil and Gas Commission; or
   3. (C) Digital asset mining permit is expired.

(e) The applicant shall file a completed initial permit application or renewal application, utilizing a form prescribed by the Director of Production and Conservation, which shall contain the following:

1. (1) A completed organization report on a form prescribed by the Director of Production and Conservation;
2. (2) Documentation establishing that the digital asset mining business is currently in good standing status with the Secretary of State;

3. (3) A survey plat of the property boundaries on which the mining facility will be located that shows the location of:

   1. (A) The mining facility; and
   2. (B) All power and water lines and other utility services providing service to the mining facility;
4. (4) A current topographic map, aerial or satellite imagery, or other type of map that shows the location of the mining facility and the distance of all surrounding residences within a two-mile radius of the mining facility;
5. (5) A copy of an agreement with the entity supplying the electric power to the mining facility that certifies that the electric usage by the mining facility will not negatively impact the local electric grid or increase electric costs to the local customers;
6. (6) A copy of an agreement with the local water utility or private water well owner supplying water to the mining facility that certifies that the water usage by the mining facility will not negatively impact the local water supply and water rates of the local customers;
7. (7) A notarized affidavit certifying that the digital asset mining business operating the mining facility is not a prohibited foreign-party-controlled business and is in compliance with Arkansas Code § 14-1-606; and

8. (8) A technical description, including schematics and engineering specifications, of the system proposed to be utilized or the local government location approvals necessary to comply with noise-reduction techniques in accordance with Arkansas Code § 14-1-604(b)(3), including without limitation schematics or specifications that demonstrate:

   1. (A) The digital asset mining business will use a liquid cooling or submerged cooling process for the mining facility;
   2. (B) The mining facility shall be fully enclosed around all sides, including above and below the equipment producing the noise, with material that is reasonably calculated by industry standards to reduce noise emissions to a level that is acceptable to a reasonable person under similar circumstances; or
   3. (C) Upon approval by the local government, the mining facility may use a passively cooled premanufactured container without additionally enclosing the container in a complete envelope if the mining facility is located in or relates to an area that is:

(i) At least two thousand feet (2,000’) away from the nearest residential or commercial use structure; or

1. (ii) Zoned for industrial use or an otherwise approved use.

(f)

1. (1) Additionally, the digital asset mining business shall:

   1. (A)

      1. (i) Publish general public notice of the application no more than ten (10) days prior to filing the application with the Oil and Gas Commission in a newspaper having a general circulation in the county, or in each county if there shall be more than one (1), within a one-mile radius from where the proposed mining facility is located.
      2. (ii) In addition, the public notice should be large font and surrounded by a printed border to highlight the published notice; and

   2. (B) Provide notice by mailing, no more than ten (10) days prior to filing the application with the Oil and Gas Commission, via certified mail, FedEx, United Parcel Service, or other method that provides proof of mailing and delivery to the following persons and entities:

      1. (i) Any local government having jurisdiction over the area where the mining facility is proposed to be located;
      2. (ii) The Division of Environmental Quality;
      3. (iii) All surface owners of record within one (1) mile of the mining facility; and
      4. (iv) Any other persons as determined by the Director of Production and Conservation.

2. (2) The notice given by the digital asset mining business shall contain the following:

   1. (A) The name and address of the applicant;
   2. (B) A brief description of the nature and purpose of the application;
   3. (C) A description of the land on which the mining facility will be constructed;

   4. (D)

      1. (i) A statement that explains that a copy of the application and exhibits may be obtained from the Oil and Gas Commission or the digital asset mining business.
      2. (ii) When the Oil and Gas Commission receives a request for a copy of the application from an interested party, the Oil and Gas Commission may direct the digital asset mining business to deliver the application to the interested party.
      3. (iii) The cost of such notice and mailing of the application shall be paid for by the digital asset mining business; and
   5. (E) A statement that explains that all comments or objections regarding the application must be in writing and submitted to the Oil and Gas Commission prior to the expiration of the forty-five-day notice period specified in subdivision (g)(1) of this section.

(g) Objections.

1. (1)

   1. (A) Objections to the application must be received by the Director of Production and Conservation within forty-five (45) days after the publication date of the notice specified in subdivision (f)(1)(A) of this section or the postmark date of the notice specified in subdivision (f)(1)(B) of this section, whichever date is later.
   2. (B) If an objection is received, the application shall be referred to the Oil and Gas Commission for determination without imposition of a filing fee, and a hearing shall be conducted in accordance with 15 CAR §§ 275-101 and 275-102 and all other applicable hearing procedures.

2. (2)

   1. (A) If a timely objection is not received by the Director of Production and Conservation and the application is deemed administratively complete, the permit shall be issued unless the Director of Production and Conservation deems it necessary to refer the application to the Oil and Gas Commission for determination for the purpose of:

      1. (i) Protecting public health and safety;
      2. (ii) Protecting the environment; or
      3. (iii) Preventing damage to property.
   2. (B) No filing fee shall be assessed by the Oil and Gas Commission for any hearing set pursuant to this referral by the Director of Production and Conservation.

(h) If the applicant satisfies the requirements of all applicable statutes and this subpart, a permit shall be issued unless:

1. (1) The applicant has falsified or otherwise misstated any material information on or relative to the permit application;

2. (2) The applicant is or was an owner, officer, director, partner, member, or manager of a digital asset mining business, or other person with an interest in the entity exceeding five percent (5%), that has failed to:

   1. (A) Abate any outstanding violations of statutes or rules; or
   2. (B) Comply with orders of the Oil and Gas Commission as specified in a final administrative decision of the Oil and Gas Commission in accordance with the provisions of this subpart;

3. (3) The applicant is a current permit holder that has failed to:

   1. (A) Abate outstanding violations of any statutes or rules; or
   2. (B) Comply with orders of the Oil and Gas Commission as specified in a final administrative decision of the Oil and Gas Commission in accordance with the provisions of this part; or

4. (4) If the Director of Production and Conservation determines that the applicant or permit holder, or an owner, officer, director, partner, member, or manager or other person with an interest exceeding five percent (5%) in the digital asset mining business, has a history of violating any applicable statutes, Oil and Gas Commission rules, permit condition, or order of the Oil and Gas Commission, the Arkansas Pollution Control and Ecology Commission, or any other state or federal regulatory agency, the permit shall be denied.

   1. (i) If a permit is denied pursuant to subsection (h) of this section, the applicant may request a hearing with the Oil and Gas Commission on this determination, in accordance with 15 CAR §§ 275-101 and 275-102 and other applicable hearing procedures.

(j) Digital asset mining permit revocation procedures.

1. (1) The Director of Production and Conservation may revoke a digital asset mining permit if the:

   1. (A) Permit holder fails to meet permit conditions as specified in the digital asset mining permit;
   2. (B) Digital asset mining permit was issued in error;
   3. (C) Permit holder fails to meet any applicable statute or law; or
   4. (D) Permit holder falsified or otherwise misstated any material information in the application form.

2. (2)

   1. (A) The Director of Production and Conservation shall notify the permit holder in writing of the revocation of the digital asset mining permit.
   2. (B) Following the notice of revocation, the permit holder shall have thirty (30) days from the date of the digital asset mining permit revocation notice to appeal the Director of Production and Conservation’s decision to revoke the digital asset mining permit.
   3. (C) If the permit revocation is appealed, a hearing contesting the permit revocation shall be conducted in accordance with 15 CAR §§ 275-101 and 275-102 and other applicable hearing procedures.
   4. (D) Operation of the mining facility may not commence or continue during the appeal process.
   5. (E) A revocation of a digital asset mining permit for which an appeal has not been timely filed shall become a final administrative decision of the Oil and Gas Commission.