(a) Definitions. As used in this section:

1. (1) “Current permit holder” means the person required to hold the permit or to whom the permit was issued and who is the owner of the digital asset mining business and possesses the full rights and responsibilities for operating the business in accordance with applicable Arkansas law or rule or order of the Oil and Gas Commission;
2. (2) “New permit holder” means the person acquiring the digital asset mining business and who obtains the full rights and responsibilities for operating the business and possessing the permit in accordance with applicable Arkansas law or rule or order of the commission; and

3. (3) “Transfer” means any voluntary or involuntary:

   1. (A) Assignment;
   2. (B) Devise;
   3. (C) Release;
   4. (D) Transfer;
   5. (E) Takeover;
   6. (F) Buyout;
   7. (G) Merger;
   8. (H) Sale;
   9. (I) Conveyance; or
   10. (J) Other transfer of any kind.

(b) The provisions of this section apply to all transfers of the interest of the permit holder, including but not limited to:

1. (1) A change of ownership of the right to operate the digital asset mining business;
2. (2) A change of ownership or membership in the corporate entity that operates the digital asset mining business or a change in the designation of the owner or operator under an operating agreement or other similar agreement;
3. (3) An action of the owners of separate interests who designate a new owner to be permit holder; or
4. (4) A change required by the appointment, by a court of competent jurisdiction, of a trustee or a receiver to exercise custody and control over the digital asset mining business.

(e) Prior to the director, or his or her designee, approving the transfer request, the new permit holder must:

1. (1) Be authorized to do business within the State of Arkansas; and
2. (2) Comply with all applicable provisions of state law and 15 CAR § 275-902.

(f) A transfer to a new permit holder shall be denied by the director, or his or her designee, if:

1. (1) The new permit holder has not fully satisfied all applicable statutory and rule requirements;
2. (2) The commission has not approved the transfer in accordance with subsection (e) of this section;
3. (3) The new permit holder has falsified or otherwise misstated any material information on or relative to the transfer application; or
4. (4) No further permits or authorities may be issued in accordance with subsection (e) of this section.

(h)

1. (1) If the digital asset mining business or mining facility is in violation of any rules, statutes, or orders of the commission at the time of the transfer request to the new permit holder, the transfer request shall be denied pending abatement of all violations by the current permit holder.

2. (2)

   1. (A) However, if the new permit holder, after being notified of the violation or violations, agrees in writing to the transfer approval including conditions to abate all violations, the transfer may be approved by the director, or his or her designee, in accordance with this subpart.
   2. (B) Failure to abate the violations within the time period specified by the director, or his or her designee, may result in revocation of the transfer approval and other applicable enforcement actions in accordance with 15 CAR § 275-104.

(i)

1. (1) The current permit holder is not responsible for any regulatory violation caused by the actions of the new permit holder during the permit transfer process.
2. (2) However, if the transfer is denied by the director, or his or her designee, the current permit holder will assume all responsibility for any violations caused by the new permit holder.
3. (3) Nothing in this subsection shall affect the contractual rights and obligations between the person or entity transferring the permit and the person or entity acquiring the permit.

(k)

1. (1) The director shall notify the current and new permit holder of the transfer approval or denial in writing.
2. (2) Following the approval or denial of the transfer approval request, the current or new permit holder shall have thirty (30) days from the date of the approval or denial to appeal the director’s decision in accordance with 15 CAR §§ 275-101 and 275-102 and other applicable hearing procedures.
3. (3) A transfer request approval or denial for which a timely appeal has not been filed shall become a final administrative decision of the commission.

(l) Permit transfer revocation procedures.

1. (1) The director may revoke a digital asset mining business permit transfer approval if the:

   1. (A) Permit holder fails to comply with conditions as specified in the permit transfer approval;
   2. (B) Permit transfer approval was issued in error; or
   3. (C) Permit holder falsified or otherwise misstated any material information in the application form.

2. (2)

   1. (A) The director shall notify the permit holder of the digital asset mining business permit transfer revocation in writing.
   2. (B) Following the revocation notice, the permit holder is required to cease operation of the mining facility.
   3. (C) The permit holder shall have thirty (30) days from the date of the permit transfer revocation to appeal the director’s decision to revoke the transfer approval 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 permit transfer approval for which an appeal has not been timely filed shall become a final administrative decision of the commission.