(a)

(1) The county assessor shall assess all producing mineral interests in the county.

(2) (A) The county assessor shall assess the mineral interests in the land separate from the fee simple interest in the land when the:

(i) Mineral interests in the land are held by one (1) or more persons that are different from the person or persons holding the fee simple interest; and

(ii) County assessor is advised of the separate holdings by the recording of a deed in the county recorder's office.

(B) When subdivision (a)(2) of this section applies, a sale of the mineral interests for nonpayment of taxes shall not affect the title to the land itself, nor shall a sale of the land for nonpayment of taxes affect the title to the mineral interests.

(b) When any mineral rights assessed as set out in subsection (a) of this section become forfeited on account of nonpayment of taxes, they shall, in all things, be certified to and redeemed in the same manner as is provided for the certification and redemption of real estate upon which taxes duly assessed have not been paid.

(c)

(1) Because of the difficulty of ascertaining the value of a nonproducing mineral right and in order to ensure equal and uniform taxation throughout the state, a nonproducing mineral right has zero (0) value for the purpose of property tax assessment and is included in the value of the fee simple interest assessed.

(2) If the fee simple in the land and the nonproducing mineral right that has zero (0) value as determined under subdivision (c)(1) of this section are owned by different persons, there is no property tax due on the mineral right.

(3) For a nonproducing mineral right that has zero (0) value as determined under subdivision (c)(1) of this section, the mineral right owner may agree to a voluntary property tax assessment of the mineral right and pay a property tax according to rules established by the Assessment Coordination Department with the assistance of the Arkansas Assessors Association.

(4) When a nonproducing mineral right begins producing minerals, the mineral right shall be assessed for tax purposes in accordance with rules established by the department.

(d) (1) (A) If the department determines that a county assessor has failed to assess mineral interests as required under this section, the department shall notify the county assessor by certified mail with copies to the:

(i) County equalization board;

(ii) County judge;

(iii) County quorum court; and

(iv) Reappraisal contractor, if applicable.

(B) In addition, the notice may provide that state reappraisal reimbursement funds to the county may be withheld pending the outcome of a hearing if a hearing is requested by the county assessor within thirty (30) days from the date of the notice.

(2)

(A) The county assessor may waive the right to a hearing and within thirty (30) days from the date of the notice agree to complete corrective action as required by the department and return a signed and dated compliance verification form to the department.

(B) Upon receipt of the signed and dated compliance verification form, the department shall release any withheld state reappraisal reimbursement funds and resume regular payments.

(3) Termination of state reappraisal reimbursement funds may occur if the county assessor fails to:

(A) Either request a hearing or return the signed and dated compliance verification form within thirty (30) days from the date of the notice; or

(B) Complete the corrective action within the time provided in the compliance verification form.