This bill amends Section 318.1 of Title 52 of the Oklahoma Statutes, which governs the compliance of oil and gas operators with drilling and plugging regulations. It introduces a new framework for operators to provide financial surety, allowing them to choose between two categories: Category A and Category B. Category A surety, which requires a net worth of at least $50,000, will no longer be accepted for new operators starting November 1, 2025, although current operators in good standing can retain it. The bill allows operators eligible for Category A to voluntarily convert to Category B surety, which involves posting various amounts based on the number of wells operated, with a phase-in schedule leading to full compliance by the end of 2028.

Additionally, the bill specifies that operators must provide written notice to the Oklahoma Corporation Commission regarding their compliance and financial ability to meet plugging and closure requirements. It also outlines the consequences for noncompliance, including the forfeiture of surety and the potential for the Commission to shut in wells until compliance is achieved. The bill emphasizes the importance of maintaining financial responsibility in the oil and gas industry to ensure environmental protection and public safety. An emergency clause is included, allowing the bill to take effect immediately upon passage.

Statutes affected:
Introduced: 52-318.1