Bill No. 1370 amends existing laws regarding the Corporation Commission Plugging Fund and the allocation of excise taxes on oil and gas in Oklahoma. The bill establishes that the Plugging Fund will be maintained at a minimum of $5 million until July 1, 2031, and outlines the process for imposing an additional excise tax if the fund falls below this threshold. It also specifies that expenditures from the Plugging Fund can be made for emergency situations with potential environmental or public safety impacts. The bill modifies the distribution of excise tax revenues, with a significant change being the introduction of a new allocation structure that includes a transfer of up to $10 million to the Plugging Fund from the excise tax on petroleum oil and natural gas starting July 1, 2025.

Additionally, the bill deletes previous deadlines for maintaining the Plugging Fund and reallocates percentages of the excise tax revenues. Specifically, it removes the previous cap on the Interstate Oil Compact Fund and establishes a new distribution where 7.65% of the excise tax will be credited to this fund, while the majority (92.35%) will go to the General Revenue Fund. The bill is set to take effect on July 1, 2025, and includes an emergency clause for immediate implementation upon passage.