JBC-Administrative Rule Review Subcommittee

All right, members, we will call. Our meeting to, to start here. Uh, welcome. I want to remind those members of the public and that are present that if you wish to provide comment on the rule, go ahead and sign in. We will be taking up the sign-in sheet, uh, taking it up momentarily. Members, our first item on the agenda is to adopt our subcommittee rules as this is our first meeting. And I also will, will warn members, this is the first time that I've ever held the gavel and power can go to my head, so please be careful and don't allow this too often, um, and I want to thank Representative Kavanaugh, uh, co-chair as well, for the opportunity to serve with you in this capacity. But first, we're going to take up, uh, on the first item of the agenda is the adoption of our subcommittee rules. The rules are are before you in your packet. There's no changes, uh, being proposed. So do I have a motion to adopt the subcommittee rules. So motion, do I have a second? I see a second. And uh all in favor say aye. And he posed like sign, motion carries. OK, our next item on the agenda is to review the the rules for us today. Today we have the oil and gas commission, will someone from the commission please join the table, recognize yourself, um, and yourself and you'll be recognized. Good morning, Chief, uh, Keisha Morrison, Chief Counsel, Department of Energy and Environment. Lauren Ballard, Chief of Staff, Department of Energy and Environment. Daniel Pilkington, attorney here with the department. Thank you. You guys are recognized to present your role. We're here this morning seeking review and approval of general rule K regarding digital asset mining. Uh, this rulemaking was prompted by Acts 173 and 174 of the 2024 fiscal session. The, uh, those acts vested the commission with the responsibility and authority to regulate digital asset mining. Act 174 specifically required OGC to, uh, initiate the rulemaking that you have before you today, uh, because there has been such growth of digital asset mining in the state, the General Assembly saw a need for regulation of this industry to protect Arkansans and to protect resources. Um, we initiated the rulemaking on December 10, 2024. Uh, the meeting for public comment was on January 6th of 2025. The public comment period closed on January 13th. Our responsive summary. Uh, was provided and we made some clarifying and non-substantive changes after the public comment period closed, and the oil and gas commission approved the rule as revised on at its January twenty-eighth meeting. And with that preview, we're happy to take any questions. Thank you for being here today. Members, any questions? For the commission. All right, so you know, and I do have one quick question. Um, there was some concerns that were sent to me around the communication around the, the radius, the distance of, of which communication has to be sent out according to this rule. Could you speak to that specifically? I, I believe the radius was chosen with a mind toward giving adequate notice for those who might be affected by the sound. Um And, do you have any understanding is that we looked at several different, uh, suggestions on what the radius would be. We couldn't make everybody happy as far as that goes is what the distance would be, uh, we came to a decision on what we thought would give all possible interested parties, some say in or some input as to what they wanted to do. OK, uh, and I believe it's a 1 mile radius. Is that correct? That's OK, and I believe we heard last session about, uh, noise concerns being closer to it. 2000 ft, um, Distance and so doubling that to a mile, felt a little burdensome, um, by some, any other comments about the the difference between a mile versus the 2200 ft. Well, if I may, you're correct, the 2000 ft was addressed and that's actually specifically part of the legislation that passed in 24, um, and that's, that's built into that legislation. I would think, I think that the gas, oil and gas commission, I think, what, what we've decided is having a little bit extra room for those to just have notice that that's going in and had the opportunity to be heard in front of the commission. um, just to expand those rights to those, those, uh, individuals who live within that mile radius. OK, thank you. Last question for, for myself is around ownership transfer, um, and, um, could you maybe provide a little bit more detail about the rule related to transfer of ownership, um, and how that permaine process works. Uh, I know the ownership transfer rule is really reflective of the other oil and gas commission rules, um, all of the oil and gas commission. Provisions provide for transfer of the permit, regardless of what kind of permit it is, um, the various mining or drilling permits are, have the opportunity for permit transfers. So it is, uh, Very similar, if not identical to those other provisions. And this This is You have monthly meetings, so for appeal process and the longest any entity would have to wait would be a month until the next monthly meeting is heard, is that correct? That's right. OK, great. Members, any other questions? Oh, let's see here. I see Senator Terry Rice, you recognized. Thank you for y'all point out rule violations, who enforces. Uh, violation. The commissioned us. OK, and, uh, Just through legal aspect do you have? Rights or uh something to shut somebody down if there's egregious. Re violation. That depends on the facts and circumstances of the violations, what we would try to do is make sure that we compel compliance with the rules that we have and with the statutes that you passed, we would, uh, do whatever is necessary to make sure that they come into compliance that may require the business to cease operations depending on what's going on. But you have the authority to do that if necessary. We would have the authority to enforce penalties and other sanctions that could require the business to be shut down, yes. Yes, the statutes give us enforcement authority that's what I wanted to hear. I mean, this, this is new enough uh for everybody. It came through committee and was almost through. And I asked for people to ask more questions because they didn't know what questions to ask, and I regret that. But it's just the way it is. So I want to make sure y'all know that you've got authority to do whatever is necessary. Thank you. Thank you, Senator Rice, um, we do not have anybody sign to speak for or against this rule. Uh, do you have any other questions for members? See none, uh, we will, without objection, the rule is a review, reviewed and approved. Thank you. All right, members, um, we do have, we have no further business, so this meeting is adjourned.