The bill amends Section 318.1 of Title 52 of the Oklahoma Statutes, which pertains to the financial requirements for individuals or entities drilling or operating oil and gas wells in the state. A significant change is the phasing out of Category A surety, which will no longer be accepted for new operators starting November 1, 2025. Current operators with valid Category A surety in good standing will be allowed to retain it. The bill also introduces a tiered system for Category B surety amounts based on the number of wells operated, with specific amounts set for different ranges of wells, from $25,000 for one to ten wells up to $150,000 for more than one hundred wells.

Additionally, the bill modifies the requirements for operators regarding their financial ability to plug and abandon wells, as well as the closure of surface impoundments. It establishes that operators with fewer plugging liabilities may provide a reduced amount of Category B surety, contingent upon an affidavit from a licensed well plugger. The bill also outlines the consequences for operators who fail to comply with plugging and closure requirements, including the forfeiture of surety and the potential for the Commission to undertake remedial actions. The effective date for these changes is set for November 1, 2025.