Oklahoma Senate Bill SB476

Oklahoma 2022 Regular Session

• Introduced: 2/1/21
• Refer: 2/2/21

Caption

Oil and gas; specifying liability for certain costs related to oil and gas wells. Effective date.

Impact

One of the key aspects of SB476 is the emphasis on requiring operators to demonstrate financial capability to cover costs related to operating and closing oil and gas wells. Under the revised rules, operators must provide surety bonds or other financial assurances, which are critical for ensuring the state is protected against potential environmental and public health risks associated with well abandonment.

Summary

Senate Bill 476 addresses the regulation of oil and gas wells in Oklahoma by amending existing statutes regarding financial responsibilities and operational compliance. The bill specifically grants the Oklahoma Corporation Commission the authority to rescind transfers of oil and gas wells if the transfer is found to be fraudulent or improper. Additionally, it establishes the liability of operators for costs associated with plugging wells and closing surface impoundments, ensuring that these obligations are met to safeguard public and environmental interests.

Contention

There are notable points of contention surrounding the bill, particularly regarding the financial requirements imposed on operators. Some stakeholders argue that the increased financial burden may affect smaller operators disproportionately, potentially limiting competition in the oil and gas sector. On the other hand, proponents contend that these measures are necessary to guarantee that operators are held accountable for their environmental impact and that the public does not end up bearing the cost of well abandonment or environmental cleanup.

Effective_date

If enacted, this act will take effect on November 1, 2021, marking a significant update in the legislative framework governing the oil and gas industry in Oklahoma.