1 STATE OF OKLAHOMA
1
2 2nd Session of the 59th Legislature (2024)
2
3 SENATE BILL 1568 By: Rader
3
4
4
5
5
6 AS INTRODUCED
6
7 An Act relating to the Corporation Commission;
7 amending 17 O.S. 2021, Section 52, which relates to
8 jurisdiction of the Commission; clarifying well
8 jurisdiction; amending 27A O.S. 2021, Sections 1-3-
9 101, as last amended by Section 2, Chapter 164,
9 O.S.L. 2023, 3-5-102, 3-5-103, 3-5-104, as amended by
10 Section 1, Chapter 353, O.S.L. 2023, 3-5-105, and 3-
10 5-106 (27A O.S. Supp. 2023, Sections 1-3-101 and 3-5-
11 104), which relate to jurisdiction of environmental
11 agencies; conforming language; modifying definitions;
12 modifying authority over certain injection wells;
12 modifying hearing requirements; directing rule
13 promulgation; providing for pore space unitization
13 for certain purpose; establishing application and
14 hearing procedures; providing for issuance of certain
14 order by Commission; directing issuance of
15 certificate of completion to certain facility
15 following certain time period; providing for release
16 from certain obligations under certain circumstances;
16 prescribing fines and fees; creating the Class VI
17 Carbon Sequestration Storage Facility Revolving Fund;
17 establishing fund purpose; directing source of funds;
18 establishing cap on funds to be incurred from single
18 facility; directing furnishing of certain report;
19 amending 52 O.S. 2021, Section 139, which relates to
19 jurisdiction of the Commission; conforming language;
20 providing for codification; updating statutory
20 references; updating statutory language; and
21 providing an effective date.
21
22
22
23 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
23
24
24
Req. No. 2602 Page 1
 1 SECTION 1. AMENDATORY 17 O.S. 2021, Section 52, is
1
2 amended to read as follows:
2
3 Section 52. A. 1. Except as otherwise provided by this
3
4 section, the Corporation Commission is hereby vested with exclusive
4
5 jurisdiction, power and authority with reference to:
5
6 a. the conservation of oil and gas,
6
7 b. field operations for geologic and geophysical
7
8 exploration for oil, gas and brine, including seismic
8
9 survey wells, stratigraphic test wells and core test
9
10 wells,
10
11 c. the exploration, drilling, development, producing or
11
12 processing for oil and gas on the lease site,
12
13 d. the exploration, drilling, development, production and
13
14 operation of wells used in connection with the
14
15 recovery, injection or disposal of mineral brines,
15
16 e. reclaiming facilities only for the processing of salt
16
17 water, crude oil, natural gas condensate and tank
17
18 bottoms or basic sediment from crude oil tanks,
18
19 pipelines, pits and equipment associated with the
19
20 exploration, drilling, development, producing or
20
21 transportation of oil or gas,
21
22 f. injection wells known as Class II wells under the
22
23 federal Underground Injection Control Program program,
23
24 and any aspect of any CO2 sequestration facility,
24
Req. No. 2602 Page 2
 1 including any associated Class VI CO2 injection well,
1
2 over which the Commission is given jurisdiction
2
3 pursuant to the Oklahoma Carbon Capture and Geologic
3
4 Sequestration Act. Any substance that the United
4
5 States Environmental Protection Agency allows to be
5
6 injected into a Class II well may continue to be so
6
7 injected,
7
8 g. tank farms for storage of crude oil and petroleum
8
9 products which are located outside the boundaries of
9
10 refineries, petrochemical manufacturing plants,
10
11 natural gas liquid extraction plants, or other
11
12 facilities which are subject to the jurisdiction of
12
13 the Department of Environmental Quality with regard to
13
14 point source discharges,
14
15 h. the construction and operation of pipelines and
15
16 associated rights-of-way, equipment, facilities or
16
17 buildings used in the transportation of oil, gas,
17
18 petroleum, petroleum products, anhydrous ammonia or
18
19 mineral brine, or in the treatment of oil, gas or
19
20 mineral brine during the course of transportation but
20
21 not including line pipes in any:
21
22 (1) natural gas liquids extraction plant,
22
23 (2) refinery,
23
24
24
Req. No. 2602 Page 3
 1 (3) reclaiming facility other than for those
1
2 specified within subparagraph e of this
2
3 subsection paragraph,
3
4 (4) mineral brine processing plant, and
4
5 (5) petrochemical manufacturing plant,
5
6 i. the handling, transportation, storage and disposition
6
7 of saltwater, mineral brines, waste oil and other
7
8 deleterious substances produced from or obtained or
8
9 used in connection with the drilling, development,
9
10 producing and operating of oil and gas wells, at:
10
11 (1) any facility or activity specifically listed in
11
12 paragraphs 1 this paragraph and paragraph 2 of
12
13 this subsection as being subject to the
13
14 jurisdiction of the Commission, and
14
15 (2) other oil and gas extraction facilities and
15
16 activities,
16
17 j. spills of deleterious substances associated with
17
18 facilities and activities specified in paragraph 1 of
18
19 this subsection paragraph or associated with other oil
19
20 and gas extraction facilities and activities, and
20
21 k. subsurface storage of oil, natural gas and liquefied
21
22 petroleum gas in geologic strata.
22
23 2. The exclusive jurisdiction, power and authority of the
23
24 Corporation Commission shall also extend to the construction,
24
Req. No. 2602 Page 4
 1 operation, maintenance, site remediation, closure and abandonment of
1
2 the facilities and activities described in paragraph 1 of this
2
3 subsection.
3
4 3. When a deleterious substance from a Commission-regulated
4
5 facility or activity enters a point source discharge of pollutants
5
6 or storm water from a facility or activity regulated by the
6
7 Department of Environmental Quality, the Department shall have sole
7
8 jurisdiction over the point source discharge of the commingled
8
9 pollutants and storm water from the two facilities or activities
9
10 insofar as Department-regulated facilities and activities are
10
11 concerned.
11
12 4. For purposes of the Federal federal Clean Water Act, any
12
13 facility or activity which is subject to the jurisdiction of the
13
14 Corporation Commission pursuant to paragraph 1 of this subsection
14
15 and any other oil and gas extraction facility or activity which
15
16 requires a permit for the discharge of a pollutant or storm water to
16
17 waters of the United States shall be subject to the direct
17
18 jurisdiction of the United States Environmental Protection Agency
18
19 and shall not be required to be permitted by the Department of
19
20 Environmental Quality or the Corporation Commission for such
20
21 discharge.
21
22 5. The Corporation Commission shall have jurisdiction over:
22
23 a. underground storage tanks that contain antifreeze,
23
24 motor oil, motor fuel, gasoline, kerosene, diesel, or
24
Req. No. 2602 Page 5
 1 aviation fuel and that are not located at refineries
1
2 or at upstream or intermediate shipment points of
2
3 pipeline operations, including, but not limited to,
3
4 tanks from which these materials are dispensed into
4
5 vehicles, or tanks used in wholesale or bulk
5
6 distribution activities, as well as leaks from pumps,
6
7 hoses, dispensers, and other ancillary equipment
7
8 associated with the tanks, whether above the ground or
8
9 below; provided that any point source discharge of a
9
10 pollutant to waters of the United States during site
10
11 remediation or the off-site disposal of contaminated
11
12 soil, media, or debris shall be regulated by the
12
13 Department of Environmental Quality,
13
14 b. aboveground storage tanks that contain antifreeze,
14
15 motor oil, motor fuel, gasoline, kerosene, diesel, or
15
16 aviation fuel and that are not located at refineries
16
17 or at upstream or intermediate shipment points of
17
18 pipeline operations, including, but not limited to,
18
19 tanks from which these materials are dispensed into
19
20 vehicles, or tanks used in wholesale or bulk
20
21 distribution activities, as well as leaks from pumps,
21
22 hoses, dispensers, and other ancillary equipment
22
23 associated with the tanks, whether above the ground or
23
24 below; provided that any point source discharge of a
24
Req. No. 2602 Page 6
 1 pollutant to waters of the United States during site
1
2 remediation or the off-site disposal of contaminated
2
3 soil, media, or debris shall be regulated by the
3
4 Department of Environmental Quality, and
4
5 c. the Petroleum Storage Tank Release Environmental
5
6 Cleanup Indemnity Fund and Program and the Oklahoma
6
7 Leaking Underground Storage Tank Trust Fund.
7
8 6. The Department of Environmental Quality shall have sole
8
9 jurisdiction to regulate the transportation, discharge or release of
9
10 deleterious substances or hazardous or solid waste or other
10
11 pollutants from rolling stock and rail facilities. The Department
11
12 of Environmental Quality shall not have any jurisdiction with
12
13 respect to pipeline transportation of carbon dioxide.
13
14 7. The Department of Environmental Quality shall have sole
14
15 environmental jurisdiction for point and nonpoint source discharges
15
16 of pollutants and storm water to waters of the state from:
16
17 a. refineries, petrochemical manufacturing plants and
17
18 natural gas liquid extraction plants,
18
19 b. manufacturing of oil and gas related equipment and
19
20 products,
20
21 c. bulk terminals, aboveground and underground storage
21
22 tanks not subject to the jurisdiction of the
22
23 Commission pursuant to this subsection, and
23
24
24
Req. No. 2602 Page 7
 1 d. other facilities, activities and sources not subject
1
2 to the jurisdiction of the Corporation Commission or
2
3 Oklahoma Department of Agriculture, Food, and Forestry
3
4 as specified by this section.
4
5 8. The Department of Environmental Quality shall have sole
5
6 environmental jurisdiction to regulate air emissions from all
6
7 facilities and sources subject to operating permit requirements
7
8 under Title V of the Federal federal Clean Air Act as amended.
8
9 B. The Corporation Commission and incorporated cities and towns
9
10 shall have exclusive jurisdiction over permit fees for the drilling
10
11 and operation of oil and gas wells.
11
12 C. The Corporation Commission shall comply with and enforce the
12
13 Oklahoma Water Quality Standards.
13
14 D. For purposes of immediately responding to emergency
14
15 situations having potentially critical environmental or public
15
16 safety impact and resulting from activities within its jurisdiction,
16
17 the Corporation Commission may take whatever action is necessary,
17
18 without notice and hearing, including without limitation the
18
19 issuance or execution of administrative agreements by the Oil and
19
20 Gas Conservation Division of the Corporation Commission, to promptly
20
21 respond to the emergency.
21
22 SECTION 2. AMENDATORY 27A O.S. 2021, Section 1-3-101, as
22
23 last amended by Section 2, Chapter 164, O.S.L. 2023 (27A O.S. Supp.
23
24 2023, Section 1-3-101), is amended to read as follows:
24
Req. No. 2602 Page 8
 1 Section 1-3-101. A. The provisions of this section specify the
1
2 jurisdictional areas of responsibility for each state environmental
2
3 agency and state agencies with limited environmental responsibility.
3
4 The jurisdictional areas of environmental responsibility specified
4
5 in this section shall be in addition to those otherwise provided by
5
6 law and assigned to the specific state environmental agency;
6
7 provided that any rule, interagency agreement or executive order
7
8 enacted or entered into prior to the effective date of this section
8
9 July 1, 1993, which conflicts with the assignment of jurisdictional
9
10 environmental responsibilities specified by this section is hereby
10
11 superseded. The provisions of this subsection shall not nullify any
11
12 financial obligation arising from services rendered pursuant to any
12
13 interagency agreement or executive order entered into prior to July
13
14 1, 1993, nor nullify any obligations or agreements with private
14
15 persons or parties entered into with any state environmental agency
15
16 before July 1, 1993.
16
17 B. Department of Environmental Quality. The Department of
17
18 Environmental Quality shall have the following jurisdictional areas
18
19 of environmental responsibility:
19
20 1. All point source discharges of pollutants and storm water to
20
21 waters of the state which originate from municipal, industrial,
21
22 commercial, mining, transportation and utilities, construction,
22
23 trade, real estate and finance, services, public administration,
23
24
24
Req. No. 2602 Page 9
 1 manufacturing and other sources, facilities and activities, except
1
2 as provided in subsections D and E of this section;
2
3 2. All nonpoint source discharges and pollution except as
3
4 provided in subsections D, E and F of this section;
4
5 3. Technical lead agency for point source, nonpoint source and
5
6 storm water pollution control programs funded under Section 106 of
6
7 the federal Clean Water Act, for areas within the Department’s
7
8 jurisdiction as provided in this subsection;
8
9 4. Surface water and groundwater quality and protection and
9
10 water quality certifications;
10
11 5. Waterworks and wastewater works operator certification;
11
12 6. Public and private water supplies;
12
13 7. Underground injection control pursuant to the federal Safe
13
14 Drinking Water Act and 40 CFR Parts 144 through 148, except for:
14
15 a. Class II injection wells,
15
16 b. Class V injection wells utilized in the remediation of
16
17