Senate passes bill limiting forced pooling, setting severance tax for hydrogen exploration

Apr 16, 2026

The Iowa Senate passed Senate File 2490 to restrict forced pooling for subsurface hydrogen exploration, require consenting landowners (with a 25% threshold for pooled orders), add protections and cost-recovery rules for landowners, and impose a severance tax with specified revenue splits.

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Senator Bussello (Senator from Polk) opened the floor debate on Senate File 2490, calling it “an important bill that is necessary and much needed for Iowa landowners, Iowa communities, and the state of Iowa.” He repeatedly stressed that “There’s no eminent domain in this bill,” and described several protections for surface and subsurface owners, including a requirement that pooling and exploration can occur only with consenting landowners or if at least 25% of landowners in a spacing unit consent to seek a forced pooling order from the Department of Natural Resources.

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