Relating to the production of oil and gas, geologic hydrogen, hydrocarbons, or other minerals, including establishing certain duties required of oil and gas operators, requiring notice and surface use agreement offers, and providing for remedies

This bill relates to the production of oil and gas, geologic hydrogen, hydrocarbons, or other minerals, including establishing certain duties required of oil and gas operators, requiring notice and surface use agreement offers, and providing for remedies. The bill is known as and may be cited as the Iowa surface owners protection Act. The bill applies to real property and improvements on which oil and gas operations are conducted and to oil and gas operations commenced on or after July 1, 2026, with exceptions for certain maintenance and ongoing production activities at wells producing or capable of producing on that date if the operator holds a valid permit, and for operations conducted within the scope of agreements entered into before July 1, 2026. The bill defines terms relating to oil and gas operations and describes oil and gas operations to include activities from initial exploration through final reclamation of the affected surface. The bill requires an operator to compensate a surface owner for certain damages or losses resulting from oil and gas operations. The bill also requires an operator to compensate a farm tenant for crop damage or reduced crop yields and for damage to leasehold improvements. The bill requires an operator to reclaim the surface affected by oil and gas operations once operations are completed or a well is plugged or closed. The bill requires the operator to provide at least business days’ notice before beginning an activity that does not disturb the surface. At least days before entering the surface to conduct oil and gas operations, the bill requires the operator to provide the surface owner with notice that includes information about the planned operations, a copy of the Iowa surface owners protection Act, operator contact information, and a proposed surface use and compensation agreement. The bill requires the proposed agreement to address certain subjects relating to the oil and gas operations. If legal and equitable title are held by different persons, the bill directs both persons to receive notice. The bill allows the surface owner to accept or reject the proposed agreement. Failure to accept the proposed agreement within days is deemed a rejection. If rejected, the surface owner may negotiate, including through mediation if the parties agree. The bill allows the parties to enter into a mutually acceptable surface use and compensation agreement governing surface activities. If no agreement is reached within days after the surface owner receives notice, the bill allows the operator to enter the property and conduct operations, but must pay actual damages for entry and use of the surface. The bill provides remedies in court actions. If compensation is owed, the court may award attorney fees, costs, and, in some circumstances, treble damages for certain violations by the operator. The bill also provides that the remedies in the chapter are not exclusive of other remedies allowed by law.