This bill amends the Oil and Gas Reclamation Fund by increasing the tax distribution to the fund from the Oil and Gas Conservation Tax Act. The new distribution percentages are set to gradually increase, starting with 50% from July 1, 2027, to July 1, 2028, then 75% from July 1, 2028, to July 1, 2029, and reaching 100% from July 1, 2029, to July 1, 2037, before reverting to 50% thereafter. Additionally, the bill establishes the fund as a nonreverting fund in the state treasury, allowing it to receive various sources of money, including distributions, appropriations, gifts, grants, and donations.

The bill also revises the administration and use of the fund, transferring oversight from the oil conservation division to the director of the division, who will utilize the funds for plugging abandoned wells and restoring associated sites. It removes previous provisions related to energy education funding and introduces a mechanism for indemnification against operators for costs incurred in plugging and restoration efforts. The effective date for these changes is set for July 1, 2027.

Statutes affected:
introduced version: 7-1-6.21, 70-2-37, 70-2-38