The bill amends the Oil and Gas Reclamation Fund by increasing the tax rate imposed under the Oil and Gas Conservation Tax Act that is distributed to the fund. Specifically, it changes the distribution amount to be equal to the net receipts attributable to the tax, rather than a fixed percentage. Additionally, the bill mandates that expenditures from the fund shall be used exclusively for specific purposes related to the plugging of abandoned wells and the restoration of well sites, rather than allowing for broader uses, such as supporting energy education.

Furthermore, the bill outlines the responsibilities of the oil conservation division in administering the fund, including the authority to reclaim and properly plug abandoned wells on federal lands. It also establishes a right of indemnification for costs incurred in these activities, allowing the division to seek reimbursement from operators. The bill requires an annual report on the fund's usage and allows contractors to sell salvaged equipment from well sites, deducting the proceeds from their costs. The provisions of this act are set to take effect on July 1, 2025.

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