Section 5. If, in the judgment of the Gas Inspector, it shall be deemed advisable or necessary to test said wells oftener than set out in Section 1, he shall have the right to do so, and for the purpose of making said tests and determining the amount of gas taken therefrom he shall have access to all wells and to all well records, and all companies, contractors, drillers, lessees or owners of the land upon which said well or wells are located shall permit said Gas Inspector or his deputy to come upon any lease or property owned or controlled by them, and to inspect any and all wells and property owned or controlled by them, and to inspect any and all wells and the records of said wells, and to have access at all times to all wells and all records of said wells used, owned or operated by any person, firm or corporation or the lessees or owners of the land upon which said wells are located.

Section 6. Uniform rules of procedure shall be followed by said Gas Inspector in making the tests hereinabove set out, so that all wells tested by him under this Act shall be upon the same basis and under like conditions, to the end that all wells shall show accurately their rock pressure and volume as closed in at the time said tests are made, and shall be tested under similar conditions.

Section 7. In addition to the annual test provided for in Section 1, it shall be the duty of the Gas Inspector, within ten days after the gas from any well is being used or marketed, to make a test of said wells, as provided for in Section 2, and to make out and file his report of said test with the county clerk of the county in which said well is located, as provided in said Section 2.

Section 8. When the gas from any well is being used, the flow of production thereof shall be restrained to twenty per cent of the potential capacity of said well; that is to say, in any day of twenty-four hours, the well shall not be permitted to flow or produce more than twenty per cent of the open flow capacity of said well, as shown by the last test of said well made by the Gas Inspector.

Provided, that whenever the rock pressure of any well, when tested as provided in Section 2, is reduced to one hundred pounds, by putting gas into the pipe line under its own volition or pressure, the provisions of this section shall not apply.

Section 9. All gas produced from gas wells drilled in this State, when sold or used from said well, shall be accurately metered through proper devices, in order to determine the amount of gas taken from said well, which said meters shall be read at least once in every forty-eight hours, for the purpose of determining the amount of gas taken from each well, and such meter readings shall be subject to the examination of the Gas Inspector, or any other person interested, for the purpose of determining whether or not the amount of gas being taken from said well is in excess of twenty per cent of the daily open flow of the well as shown by the last test made of said well by the Gas Inspector; provided, that when the rock pressure of any well falls below one hundred this section shall not apply.

Section 10. All oil or gas sands, even though unproductive of oil or gas in the well being drilled, if known to produce oil or gas in any field, shall be protected by mudding off such known oil or gas sand by the use of mud-laden fluid, or any other effective method, in the discretion of the Gas Inspector.

Section 11. Whenever a packer or tubing used to shut in the gas in any well does not effectively shut off the oil, gas or water in the strata in which they occurred, said well shall be filled outside of the tubing from the packer to the next producing sand with mud-laden fluid of a maximum density of at least twenty-five per cent and the well shall be equipped with what is commonly known as a Braden-head, or any other device that will

prevent the escape of gas; provided, that if the next producing sand is not profitable then it may be filled as above provided to the top, at the discretion of the Gas Inspector.

Section 12. Before any person, firm, corporation or contractor shall commence to drill a well for gas or oil, a separate slush-pit or sump-hole shall be constructed by the owner, operator or contractor, for reception of all pumpings or sand balings taken from the well, in order to have the same on hand for the purpose of making a mud-laden fluid to be used as provided in Section 10 and 11.

Section 13. Any person, firm or corporation violating any of the provisions of Section 8, 9, 10 and 11 of this Act shall be subject to a penalty of not less than one hundred dollars nor more than one thousand dollars for the first conviction for violating the provisions of said sections, and, for the second conviction, to a penalty of not less than two hundred dollars nor more than one thousand dollars; and, for the third conviction, to a penalty of not less than five hundred dollars or imprisonment in the county jail for not less than thirty days, or both such penalty and imprisonment.

The penalties provided for herein to be recovered in an action therefor, brought by the prosecuting attorney in the name of the State, together with a reasonable attorney's fee for the prosecuting attorney to be fixed by the court and recovered in the same manner and in the same action.

The proceeds of penalties collected shall be turned in to the general road fund of the county wherein incurred, to be used on the roads, bridges and highways of said county, in the discretion of the county court, and the attorney's fee shall be paid over to such prosecuting attorney.

Section 14. This Act being necessary for the immediate preservation of the public peace, health and safety, shall take effect and be in force and effect from and after its passage.

Right of Eminent Domain to Pipe Line Companies
(Act 239-Acts of General Assembly, 1921)

Section 1. That all pipe line companies operating in this State are hereby given the right of eminent domain and are declared common carriers, except pipe lines operated for conveying natural gas for public utility service. All gas lines or companies operating within the State who render a domestic or general service to the public in furnishing and sale of gas are hereby required to buy or furnish from the lowest and most advantageous market. Failure to do so shall deprive them of the difference in price between such market and the one of which purchases are made.

Section 2. That the procedure to be followed in the exercise of the right shall be the same as prescribed in Sections 3992-4003 of Crawford & Moses' Digest relating to railroad companies, telegraph companies and telephone companies.

(Crawford & Moses' Digest)

Section 3969. Pipe line-right-of-way. Any corporation organized by virtue of the laws of this State for the purpose of developing and producing mineral oil, or petroleum, or natural gas, in this State, and marketing the same, or transporting or conveying the same by means of pipes from the point of production to any other point, either to refine or to market such oil, or to conduct such gas to any point or points to be used for heat or lights, may construct, operate and maintain a line or lines of pipes for that purpose along and under the public highways and the streets of cities and towns, or across and under the waters and over any lands of the State and on the lands of individuals, and along, under, or parallel

with the rights-of-way of railroads, and the turnpikes of this State; provided, that the ordinary use of such highways, turnpikes and railroad rights-of-way be not obstructed thereby, or the navigation of any waters impeded, and that just compensation be paid to the owners of such lands, railroad rights-of-way, or turnpikes, by reason of the occupation of such lands, railroad rights-of-way, or turnpikes, by said pipe line or lines.

Section 3970. Procedure. In the event any such company shall fail. upon application to individuals, railroads or turnpike companies, to secure such right-of-way by consent, contract or agreement, then such corporation shall have the right to proceed to procure the condemnation of such property, lands, rights, privileges and easements in the manner now provided by law for taking private property for rights-of-way for railroads as provided by Section 3992-4002, inclusive.

Section 3971. Right to enter and survey. Whenever any such corporations shall desire to construct such pipe line or lines upon or under the lands of individuals, or right-of-way of any railroad, or any turnpike, said corporation, by its agents, shall have the right to enter peacefully upon said lands or rights-of-way and survey, locate and lay out its said pipe lines thereon, being liable, however, for any damage that may result by reason of such acts, and shall designate on a plat or map to be made and filed with the county clerk of the county, the width of the strip of land needed to be condemned for its purposes, its location and the depth to which such pipes are to be laid.

Section 3972. Injury to pipes-penalty. Any person or persons who shall injure or molest any such pipe or pipes so used for the transportation of such oil or gas shall be guilty of a misdemeanor, and on conviction be fined in any sum not to exceed two hundred dollars; but, should such injury be done wilfully, and be of such character as to cause such pipes to be so damaged that such oil or gas shall escape and cause damage, either to the company or individuals, or other corporations, then such person or persons shall be guilty of felony, and on conviction thereof shall be fined not to exceed one thousand dollars and confined in the penitentiary not more than five years.

Taxation of Pipe Lines

Section 1806. Foreign pipe line companies doing intrastate business are required to pay the same fees as are prescribed for such corporations organized under the laws of this State.

Section 9976. Any person or corporation, wherever organized or inporated, engaged in the business of transmitting oil and gas in pipe lines through or in this State; or owning pipe or pipe lines for such purposes in this State, shall be deemed to be a pipe line company. Such companies shall be assessed for taxation by the Arkansas Tax Commission.

Section 9977. It is made the duty of every pipe line company, wherever organized or incorporated, and carrying on a business in this State, on the first Monday in July, any year, to make out and file with the Arkansas Tax Commission a statement showing in detail the following:

1. A copy of the articles of incorporation under which the company is organized and carrying on business; said copy to be filed but once unless the Commission should otherwise direct;

2. The amount of capital stock subscribed, whether designated as common or preferred, or by any other description, showing the par valueof each share, and the market value thereof, on the first Monday in June of said year;

3. The face value of all bonds, secured by mortgages on the company's property, outstanding and the market or actual value of such bonds; 4. The total number of miles of pipe lines owned or operated within and without this State by any such pipe line company in the transaction of its business.-Crawford & Moses' Digest.

For Protection of Pipe Lines
(Crawford & Moses' Digest)

Section 2480. Setting fire to escaping gas. It is hereby declared to be unlawful for any person or persons to set on fire any gas escaping from wells or from broken or leaking mains, pipes, valves, or other appliances, used by any person, company or corporation in conveying gas to consumers, or to tap any pipe or main for the purpose of taking and stealing gas therefrom, or to interfere in any manner with wells, pipes, mains, gate boxes. valves, stop cocks or other appliances, machinery or other property of any person, company or corporation engaged in furnishing gas to consumers, unless employed by and acting under the authority and direction of such person, company or corporation furnishing gas to con

sumers.

Section 2481. Extension of gas pipe without permission. It is hereby declared unlawful for any person, in any manner whatever, to change, extend or alter, or cause to be changed, extended or altered, any service or other pipe or attachment of any kind, by or through which natural or artificial gas is furnished from the gas mains or pipes of any person, company or corporation, without first securing written permis sion to make such change, extension or alteration.

* *

Requiring Release of Forfeited Leases

(Act 192, General Assembly, 1921)

Section 1. It shall be the duty of every person holding an oil, gas or other mineral lease for prospecting and exploiting for oil, gas or other minerals, upon any real estate in the State of Arkansas, upon forfeiting the right to further prospecting on such lands, by failure to pay any rental, or to perform any condition imposed on the lessee, or otherwise forfeiting such rights under said lease, upon notice hereinafter prescribed by the lessor, to execute a release to the grantor, or otherwise remove any cloud or incumbrance on the title to such lands by reason of any such forfeited lease.

Section 2. Any owner of lands upon which a lease for the development of oil or gas, or other minerals, has been given and the lessee forfeits his rights at any time to further prospect for such minerals upon said lands, by reason of a failure to pay periodical rentals or to perform other conditions that nullify the lease as to lessee's rights therein (may give) written notice, served in the manner of a legal summons upon the lessee demanding that said lessee execute and place on record a release which in effect will remove any cloud existing upon the title of such lands; upon failure of said lessee to comply with said notice he shall be liable to the lessor or owner of said lands in damages in whatever sum the owner of such lands may sustain by reason of said cloud or incumbrance upon said lands after thirty days from the service of said notice.

Guardians of Wards May Release Mineral Rights

When it shall appear that it would be for the benefit of the ward, that his or her lands, or any part thereof, be leased for the production of oil, gas, coal, zinc, lead, copper or other minerals or metals therefrom, his or

her guardian, or curator, may lease the same upon obtaining an order from the court of probate of the county in which such lands or the greater part thereof shall be situated.-Act 174, Acts of 1921.

Section 5872. When a non-resident lunatic or person or unsound mind, incapable of conducting his own affairs, owns real property in this State and has a guardian or curator in the State where he resides, the court of probate of the county where such lands or the greater part thereof are (is) situated may authorize such guardian or curator to lease said lands or any part thereof for the production of oil or gas upon securing an order from the probate court and complying with the terms and provisions of this Act.-Crawford & Moses' Digest.

Synopsis of Oil and Gasoline Inspection Laws
(Crawford & Moses' Digest)

Section 5900. Creates office of Inspector of the petroleum oils, kerosene and gasoline, etc., offered for sale or sold for illumination, heating, power purposes in Arkansas, for a period of thirty years; to be appointed by the Governor. Inspector shall be a resident of the State and shall be appointed for a term of four years; he shall give a bond in the sum of $25,000.00. Said Inspector, with the approval of the Governor, shall appoint not to exceed six deputies, whose salaries shall not exceed $100.00 a month; these inspectors to be located at convenient places within the State; provides office clerk at salary not to exceed $1,200.00 a year; salary of Inspector fixed at $3,000.00 a year; deputy inspectors have powers and duties and are subject to the same penalties as the Inspector; bonds required of deputies; deputies shall make report to the Inspector on the first and sixteenth of each month, showing in detail all the inspections made, the stamps and certificates on hand, received and issued.

Section 5901. Duty of owner, manufacturer, wholesale dealer or jobber in any of the oils or fluids to inspect the same or cause the same to be inspected in any quantities, from one barrel to car tank, before the said oils or fluids are sold, and shall at the time of making the inspection thereof attach to the car, can, cask or barrel or other vessel containing said oils, a stamp or stamps sufficient in amount to show the payment of all fees required by this article; stamps to be cancelled; unlawful to use cancelled stamps; each vessel shall also bear a certificate stating that the contents have been inspected. The fire test of all petroleums or kerosene oils for illuminating purposes shall be equal to a test prescribed in the suc-ceeding section.

Section 5916. When shipments of oil are received the dealer shall at once notify the Chief Inspector or one of his deputies of the quantity and request inspection. If for any reason a prompt inspection is impossible the dealer or his agent may subject said products to the test prescribed in this Act, and on furnishing the Inspector or his deputy an affidavit that said oils have met the requirements of the test he shall be entitled to receive stamps showing the inspection has been made, and when said stampis placed on the vessel and cancelled the oil or gasoline may be sold the same as if it had been inspected by the Oil Inspector or his deputy.

Section 5917. Auditor authorized to issue warrants from the fund created by the fees paid into the treasury under the provisions of this Act, for the payment of salaries and expenses; only expenses allowed, in addition to office expenses, shall be those necessarily incurred for making inspections at places other than where the Inspector or deputies shall be located.

Section 5918. Duty of railroads or their agents at place of destination to notify State Inspector of arrival and delivery of all car tanks containing any of the fluids mentioned in this article for inspection, giving the num-ber, initial and capacity of such car; penalty for non-compliance.