SECTION 1. DEFINITIONS. As used herein, the following words and phrases shall, unless the context herein clearly indicates otherwise, mean:

(a) "Commission" shall mean the "Oil and Gas Commission" established by Act 105 of 1939, as amended.

(b) "Director" shall mean the Director of Production and Conservation of the Oil and Gas Commission, who also serves as ex officio Secretary of the Commission.

(c) "Chief Fiscal Officer of the State" shall mean the Director of the Department of Finance and Administration serving in his capacity as the Chief Fiscal Officer of the State, as authorized by law.

(d) "State Building Services" shall mean the State Building Services as established by Act 716 of 1975, as amended.

(e) "Fee revenues" or "fee revenues of the Commission" shall mean monies derived by the Oil and Gas Commission from assessments imposed by the Commission against each barrel of oil produced and each 1,000 cubic feet of natural gas produced in this State, as authorized by Section 6 of Acts 105 of 1939, as amended, and shall include all other fees authorized by law to be collected by the Commission as hearing fees, drilling fees, annual fees, and all other fees and costs imposed by the Commission to defray the administrative costs of administering the oil and gas laws of this State, which are required by law to be deposited in the Oil and Gas Commission Fund in the State Treasury, as contrasted to tax revenues deposited in the Oil and Gas Commission Fund for the support of the Commission.

(f) "Surplus fee revenues" shall mean:

(i) that portion of the balance of funds in the Oil and Gas Commission Fund which accrued thereto from fee revenues, which the Oil and Gas Commission determines may be set aside for the purpose of defraying construction costs and debt service requirements with respect to funds borrowed for the construction and equipping of the building and parking lot to house the Commission and its staff, as authorized in this Act, and

(ii) shall include that portion of fee revenues estimated to be collected by the Commission during the lifetime of any indebtedness incurred under the provisions of this Act, that the Commission designates to be set aside to defray construction costs and debt service requirements for indebtedness incurred in connection with the construction and equipping of the building and parking lot to house the Commission and its staff, which the Commission determines not to be required to defray annual operating costs of the Commission and its staff, programs, and services.

(g) "Project" or "the project" shall mean the acquisition of land and the construction and equipping of a building and parking lot in El Dorado, Union County, Arkansas, to house the Oil and Gas Commission, its staff and programs and services of the Commission, and shall include all expenses necessary or attendant thereto.

SECTION 2. The Oil and Gas Commission is hereby authorized to immediately complete the acquisition of land and to proceed with the development of plans, the advertisement for bids, and the award of contracts for the construction and equipping of a building and parking lot to meet the needs and requirements of the Commission and its staff for a headquarters building, to be located in El Dorado, Union County, Arkansas, for which funds were appropriated by Acts 371 of 1983.

SECTION 3. The following shall be requisite to the completion and acquisition of the necessary land and the construction of such building and parking lot for the Oil and Gas Commission:

(A) A formal resolution shall be adopted by the Commission at a regular or special meeting of the Commission, indicating its intention to implement the provisions of this Act, and such resolution shall be recorded in the minutes of the Commission meeting. The resolution shall set forth the details of the building and facilities to be constructed, the equipment to be acquired, and the proposed Method of Financing of such project.

(B) Recommendation in writing by the State Building Services affirming the need for the construction of the building and improvements contemplated in the resolution adopted by the Commission. State Building Services shall, in connection with such building project, perform the respective duties required in connection therewith, as provided in subsection (c) of Section 7 of Act 716 of 1975, and all other duties with respect to such project as required by Act 716 of 1975 or by other laws of this State.

(C) Review and approval by the Chief Fiscal Officer of the State of the proposed Method of Financing the project, as provided by law.

SECTION 4. The Commission is hereby authorized to finance the construction cost of the project (acquisition of land, construction and equipping of the building and parking lot), for which funds were appropriated in Act 371 of 1983, as follows:

(a) the use of surplus fee revenues (as defined in this Act) estimated to be available to the Oil and Gas Commission Fund, which will not be required for the day-to-day operation of the Commission;

(b) the use of funds derived from the sale of the present Oil and Gas Commission building, including the land thereupon; and

(c) from funds borrowed by the Commission deemed necessary to supplement other funds available to the Commission for the project, as authorized in Section 5 of this Act.

Provided that, the cost of the project for the acquisition of land, construction, and equipping of the building and the parking lot for the Oil and Gas Commission shall not exceed an aggregate cost of $1,500,000.

SECTION 5.

(a) The Oil and Gas Commission is hereby authorized to borrow such funds as may be necessary to supplement monies available to the Commission for the Oil and Gas Commission building construction project from one or more banks or lending institutions in this State, for such duration and at such rate(s) of interest as the Commission may deem to be in the best interest of the early completion of the project.

(b) It shall be plainly stated on the face of the loan instrument(s) that the same has been issued under the provisions of this Act, and that the loan(s) shall be an obligation only of the Oil and Gas Commission, that in no event shall the indebtedness constitute an indebtedness for which the faith and credit of the State of Arkansas or any of its revenues are pledged.

(c) No member of the Oil and Gas Commission shall be personally liable on any such loan(s) or for any damages sustained by anyone in connection with any contracts entered into in carrying out the purpose and intent of this Act, unless he shall have acted with a corrupt intent.

(d) The principal of, interest on, and any indebtedness expenses in connection with such loan(s) shall be secured by a lien on and pledge of the surplus fee revenues belonging to the Oil and Gas Commission, as defined herein, and shall be payable solely from such fee revenue monies.

(e) As long as such indebtedness is outstanding, the maximum rate of assessment fees authorized to be imposed by the Oil and Gas Commission with respect to oil and gas production in this State, and the rate of other fees and costs authorized to be collected by the Commission as now authorized by law, shall not be reduced, provided that, in the event any of such fees or the maximum assessment fee rates are reduced, the General Assembly hereby agrees to authorize additional fees or sources of fees for the support of the Commission at least equal to those that would have been collected by the Commission from assessments and fees now authorized by law, while any such indebtedness is outstanding.

(f) Payment of principal of, interest on, and other costs of indebtedness incurred under this Act may be made from funds appropriated for such project under the provisions of Act 371 of 1983, or from any other funds appropriated for the support, maintenance, and operation of the Oil and Gas Commission.

SECTION 6. Monies derived by the Commission for the support of the project from loans as authorized in Section 5 of this Act shall be deposited in the State Treasury to the credit of the Oil and Gas Commission Fund, unless the loan instrument requires the same to be deposited in a bank account to be available solely for the support of the project, in which event the Commission may establish one or more accounts in banks authorized to do business in this State and deposit the monies derived from the loan therein, in an account to be known as the " Oil and Gas Construction Account" to be used solely and exclusively within the limits and for the purposes set forth in Act 371 of 1983.

SECTION 7. For the purpose of reducing the estimated amount of funds to be borrowed in connection with such building project, the Oil and Gas Commission is hereby authorized to provide for the sale of the existing building and land belonging to the Commission located in the City of El Dorado, Union County, Arkansas, if the Commission determines that said building and the land upon which the building is located will no longer be required for use by the Commission. The proposed sale of the building may be conditioned upon the purchaser agreeing to lease the building to the Commission at a rental rate acceptable to the Commission for a stated period of time estimated to be required for the construction and equipping of the building to house the Commission and its staff. If the Commission elects to dispose of such building and land, in order to apply the proceeds derived from such sale toward the construction cost of the new facility, the Commission shall certify said fact to the State Building Services and request the State Building Services to provide for the sale of the building in the manner authorized by law, with the net proceeds derived therefrom, after deducting all costs of such sale, to be deposited in the State Treasury to the credit of the Oil and Gas Commission Fund. If the Commission finds it necessary to rent facilities for housing of all or a portion of its staff and services during the course of the construction work, such rental payments may be considered as a part of the construction cost, and payment thereof may be made from monies appropriated for such project under the provisions of Act 371 of 1983, or from any other funds appropriated for the support, maintenance, and operation of the Oil and Gas Commission.

SECTION 8. All laws and parts of laws in conflict with this Act are hereby repealed.

SECTION 9. EMERGENCY. It is hereby found and determined by the General Assembly that the Oil and Gas Commission is housed in an inadequate facility which severely handicaps the Commission's ability to perform its duties as required by law, and that the immediate passage of this Act is necessary to authorize the Commission to proceed with the construction of an adequate building and parking lot to house the Commission and its staff, thereby expediting the Commission's ability to regulate the exploration and production of oil and natural gas in this State. Therefore, an emergency is hereby declared to exist and this Act, being immediately necessary for the preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval. APPROVED: March 6, 1985.