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 previous provisions that specified a fixed percentage of 19.7% and 24% have been deleted.

Additionally, the bill modifies how the funds can be utilized. It appropriates money in the fund for specific purposes, including employing personnel to survey abandoned wells and preparing plans for their plugging and site restoration. The previous allowance for supporting energy education has been removed. The bill also clarifies the authority of the oil conservation division to reclaim and properly plug abandoned wells, including on federal lands, and establishes the right to seek indemnification for costs incurred in these efforts. 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