This bill amends the Oil and Gas Reclamation Fund by increasing the percentage of tax revenue allocated to the fund from the Oil and Gas Conservation Tax Act. Specifically, it establishes a tiered distribution system where, starting July 1, 2025, the fund will receive 50% of the net receipts, increasing to 75% by July 1, 2026, and reaching 100% by July 1, 2027. The bill also modifies the language regarding how the funds can be utilized, allowing for the appropriation of money in the fund for specific purposes related to the surveying, plugging, and restoration of abandoned wells and associated production facilities.

Additionally, the bill removes previous provisions that allowed for expenditures to support energy education and clarifies the administration of the fund by the oil conservation division of the energy, minerals, and natural resources department. It mandates that the division reclaim and properly plug abandoned wells and restore well sites, with the authority to seek indemnification for costs incurred. The effective date for these changes is set for July 1, 2025.

Statutes affected:
introduced version: 7-1-6.21, 70-2-38
EN substitute: 7-1-6.21, 70-2-38