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. Key changes include the introduction of a new Category B surety requirement for operators, which will replace the existing Category A surety for new operators starting November 1, 2025. Current operators in good standing may retain their Category A surety but can voluntarily elect to convert to Category B. The bill outlines a phased schedule for Category B surety amounts based on the number of wells operated, with specific amounts required by 2028. Additionally, it allows operators to revert back to Category A surety within three years of electing Category B, provided they remain in good standing.

The bill also updates statutory language and includes provisions for the Commission to determine higher surety amounts based on an operator's compliance history. It establishes penalties for noncompliance, including the forfeiture of surety funds to cover the costs of plugging wells and closing surface impoundments. Furthermore, it mandates that any transferee of property or a well must provide evidence of financial ability to meet these requirements before the transfer can occur. An emergency clause is included, allowing the act to take effect immediately upon passage and approval.

Statutes affected:
Introduced: 52-318.1