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Lawmakers review regulations for gas drilling, gaming machines Thursday, Sep 7, 2006 By Rob Moritz Arkansas News Bureau LITTLE ROCK - State legislators Wednesday reviewed new rules and regulations governing booming natural gas exploration in western Arkansas and expanded gambling at the state's two pari-mutuel racetracks. A study last year on the shale's economic effect by the University of Arkansas Sam M. Walton College of Business Center for Business and Economic Research in Fayetteville estimated the economic impact of the Fayetteville Shale play at $5.5 billion through 2008. The study projected that development of the shale from 2005 through 2008 would create 9,683 full-time jobs and generate $357.7 million in state and local tax revenues. The boom in natural gas over the past year has spurred the need for new regulations to make sure mining companies working in the areas are following standardize rules, state Oil and Gas Commission Director Lawrence E. Bengal told members of the Legislative Council's Administrative Rules and Regulations Committee. "This is a new ball game for us," Sen. John Paul Capps, D-Searcy, said. Bengal told lawmakers that the commission holds field hearings with oil and gas companies in west and south Arkansas after they have begun drilling. "For the Fayetteville Shale, after several field rule hearings we determined that the production characteristic for the Fayetteville Shale was fairly uniform across a broad area of the state and it was not necessary to hold field rule hearings every time a new Fayetteville Shale was developed or drilled in a new area," Bengal said. He said the change would significantly streamline development in the shale play, allowing the Oil and Gas Commission staff to approve the projects, rather than holding field hearings for each individual project. The new rules not only affect the Fayetteville Shale but also two other smaller natural gas deposits that stretch from northern Arkansas to the Mississippi River, Bengal said. The main rule, General Rule 43, establishes well spacing and drilling unit sizes, along with well operating requirements. The rules specify that a site cannot be more than 648 acres and limits the number of wells per square mile to 16, Bengal said. Four other rules were modified to align with Rule 43. Also during Wednesday's meeting, the committee reviewed a series of rules and regulations for implementing Act 1151 of 2005, which authorized wagering on electronic games of skill for the first time in the state at Oaklawn Park thoroughbred track at Hot Springs and Southland Greyhound Park at West Memphis. Byron Freeland, attorney for the Arkansas Racing Commission, told lawmakers the regulations were modeled after existing regulations in Oklahoma and Florida. A national consulting firm also was hired to develop the rules. The new rules deal with the operation of electronic games of skill, licensing and service, employee licenses, privilege fees, underage patrons and employees, days and hours of operation, accounting and internal controls, security and franchise holders, and technical specifications. Last week, Southland President Barry Baldwin told the Racing Commission he expects the games to more than double the weekly purses offered by the dog track. Baldwin said tentative plans include a "soft opening" at the track to show off the new games to media and special guests on Oct. 28, and then to employees and their families on Oct. 29. He said the goal is to have everything ready for public use by Nov. 1, but that it could be the middle of the month before the official grand opening of the new gaming room, which will include 920 "Lock N Roll" machines. The games, 14 separate types, allow up to five people to sit together and play poker. Oaklawn General Manager Eric Jackson said last week he hopes to have some games available to patrons at the horse track later this year. However, he added it might be a while before Oaklawn patrons see all the games because the horse track must add additional space first. Plans for expanding the track will not begin until after the state Supreme Court rules on an appeal of the local vote last year to approve the expansion of gaming at the Hot Springs facility, he said. |
