The bill amends the Oil and Gas Act to increase civil penalties for violations and adjust application fees for permits and hearings related to oil and gas operations. Specifically, the maximum civil penalty for noncompliance is raised from $2,500 to $10,000 per day for each violation, and if the violation poses a risk to public health or significant environmental harm, the penalty can increase to $25,000 per day. Additionally, the overall cap on penalties assessed by the division or commission is increased from $200,000 to $3,650,000. The bill also introduces new requirements for notices of violation, including specific details about the nature of the violation and potential sanctions.

Furthermore, the bill adjusts various application fees, such as increasing the fee for a non-federal and non-Indian permit to drill from $500 to $1,500, and the fee for an administrative hearing from $500 to $1,500. It establishes a mechanism for annual inflation adjustments to these fees starting January 1, 2027, based on the consumer price index. The bill also creates the "oil conservation division systems and hearings fund" to manage the fees collected, which will be used for technological upgrades and administrative costs related to the enforcement of the Oil and Gas Act. The provisions of this act are set to take effect on July 1, 2025.

Statutes affected:
introduced version: 70-2-31, 70-2-39