This bill amends the Oil and Gas Act to establish that owners, operators, or lessees with either a current or prior interest or control over an oil or gas well, facility, pit, or installation of immobile surface equipment are responsible for reimbursing the Oil Conservation Division of the Energy, Minerals and Natural Resources Department for costs associated with plugging and abandonment, as well as other related expenses. The new section outlines specific responsibilities, including the plugging and abandonment of wells, deconstruction and removal of equipment, remediation of environmental contamination, and restoration of impacted areas.

Additionally, the bill allows for the contractual allocation of responsibility among owners, operators, and lessees, enabling them to determine how costs are shared. However, it clarifies that such agreements do not bind the division or dictate the order in which recovery is sought from responsible parties. The provisions of this act will take effect for applicable parties starting July 1, 2025.