Iowa oil and gas laws can be found in Chapter 458 A, Title XI of Iowa Code.  Pursuant to Iowa Code § 458A.1, it is in the public interest to foster, to encourage, and to promote the development, production, and utilization of natural resources of oil and gas and metallic minerals in the state of Iowa in such a manner as will prevent waste.

Powers and Jurisdiction of the Director

Pursuant to Iowa Code § 458A.4, the director makes investigations deems proper to determine whether waste exists or is imminent or whether other facts exist which justify action.  The director has the authority[i]:

1. To require:

• Identification of ownership of oil or gas wells, producing leases, tanks, plants, structures, and facilities for the refining or intrastate transportation of oil and gas;
• The making and filing of all mechanical well logs and the filing of directional surveys if taken, and the filing of reports on well location, drilling and production, and the filing free of charge of samples and core chips and of complete cores less tested sections when requested in the department within six months after the completion or abandonment of the well;
• The drilling, casing, operation, and plugging of wells in such manner as to prevent the escape of oil or gas out of one stratum into another, the intrusion of water into oil or gas stratum, the pollution of fresh water supplies by oil, gas, or highly mineralized water, to prevent blowouts, cavings, seepages, and fires, and to prevent the escape of oil, gas, or water into workable coal or other mineral deposits;
• The furnishing of a reasonable bond with good and sufficient surety, conditioned upon the full compliance with this chapter, and the rules of the department prescribed to govern the production of oil and gas on state and private lands within the state of Iowa;
• That the production from wells be separated into gaseous and liquid hydrocarbons, and that each be accurately measured by the means and upon standards prescribed by the department;
• The operation of wells with efficient gas-oil and water-oil ratios, and to fix these ratios;
• Certificates of clearance in connection with the transportation or delivery of any native and indigenous Iowa produced crude oil, gas, or any product;
• Metering or other measuring of any native and indigenous Iowa produced crude oil, gas, or product in pipelines, gathering systems, barge terminals, loading racks, refineries, or other places; and
• That every person who produces, sells, purchases, acquires, stores, transports, refines, or processes native and indigenous Iowa produced crude oil or gas in this state shall keep and maintain within this state complete and accurate records of the quantities of oil or gas, which records shall be available for examination by the department at all reasonable times, and that every such person file with the department the reports it may prescribe with respect to the oil or gas or the products of the oil or gas.

2. To regulate:

• The drilling, producing, and plugging of wells, and all other operations for the production of oil or gas;
• The shooting and chemical treatment of wells;
• The spacing of wells;
• Operations to increase ultimate recovery such as cycling of gas, the maintenance of pressure, and the introduction of gas, water, or other substances into producing formations; and
• Disposal of highly mineralized water and oil field wastes.

3. To limit and to allocate the production of oil and gas from any field, pool, or area.

4. To classify wells as oil or gas wells for purposes material to the interpretation or enforcement of this statute.

5. To promulgate and to enforce rules and orders to effectuate the purposes and the intent of this statute.

6. To make rules or orders for the classification of wells as oil wells or dry natural gas wells; or wells drilled, or to be drilled, for geological information, or as wells for secondary recovery projects, or wells for the disposal of highly mineralized water, brine, or other oil field wastes, or wells for the storage of dry natural gas, or casinghead gas, or wells for the development of reservoirs for the storage of liquid petroleum gas and for the exploration and production of metallic mineral resources.

Regulation of Operation

It is unlawful to commence operations for the drilling of a well for oil or gas or the production of metallic minerals or to commence operations to deepen any well to a different geological formation without first giving the director notice of intention to drill, and without first obtaining a permit from the director, under rules prescribed by the department and paying to the department a fee established by rule of the department for the well[ii].  The fee should be deposited in the general fund of the state.

Pursuant to Iowa Code § 458A.6, the department should determine market demand for each marketing district and regulate the amount of production.

Civil Actions

The department may summon witnesses, administer oaths, and require the production of records, books, and documents for examination at any hearing or investigation conducted.  A person should not be excused from attending and testifying, or from producing books, papers, and records before the department or a court, or from obedience to the subpoena of the department or a court, on the ground or for the reason that the testimony or evidence, documentary or otherwise, required of the person may tend to incriminate the person or subject the person to a penalty or forfeiture[iii].

If it appears that any person is violating or threatening to violate any provision of this statute, or any rule or order of the department, the department should bring suit against the person in the district court of any county where the violation occurs or is threatened, to restrain the person from continuing the violation or from carrying out the threat of violation[iv].

Review

Judicial review of an action of the department may be filed in the district court of Polk county or in the district court of any county in which the property affected or some portion of the property is located[v].

Penalties

Pursuant to Iowa Code § 458A.16, any person who violates any provision of this statute, or any rule or order of the department where no other penalty is provided is guilty of a simple misdemeanor.

If any person, for the purpose of evading this statute, or any rule or order of the department, makes or causes to be made any false entry or statement in a report or by any rule or order, or omits, or causes to be omitted, from any record, account, or memorandum, full, true, and correct entries as required by this statute, or by any rule or order, or removes from this state or destroys, mutilates, alters, or falsifies any such record, account, or memorandum, the person is guilty of a fraudulent practice[vi].

Any person knowingly aiding or abetting any other person in the violation of any provision of this statute, or any rule or order of the department is subject to the same penalty as that prescribed by this statute for the violation by the other person.

Leases

Pursuant to Iowa Code § 458A.21, the state, counties and cities and other political subdivisions may lease publicly owned lands under their respective jurisdictions for the purpose of oil or gas or metallic minerals exploration and production.  Any such leases should be entered into on behalf of the state by the executive council, on behalf of a county by the board of supervisors, on behalf of a city by the council and on behalf of another political subdivision by the governing body.  The leases should be upon terms and conditions as agreed upon[vii].

Revenues derived from the leasing of state-owned lands should be paid into the general fund of the state.  Revenues derived from the leasing of other public lands should be paid into the general fund of the respective lessor political subdivision.

Iowa Oil and Gas Laws

[i] Iowa Code § 458A.4.

[ii] Iowa Code § 458A.5.

[iii] Iowa Code § 458A.12.

[iv] Iowa Code § 458A.17.

[v] Iowa Code § 458A.14.

[vi] Iowa Code § 458A.16.

[vii] Iowa Code § 458A.21.