Oklahoma 2024 Regular Session

Oklahoma House Bill HB3534

Introduced
2/5/24  
Refer
2/6/24  
Report Pass
2/15/24  
Engrossed
3/5/24  
Refer
3/19/24  

Caption

Oil and gas; modifying surety amount and types; effective date.

Impact

The bill's most significant impact is its potential to affect the financial landscape of oil and gas drilling within Oklahoma. By eliminating Category A surety for new operators, it places a greater financial burden on these companies, ensuring they can demonstrate their financial viability before commencing operations. This is intended to enhance compliance with environmental regulations regarding well plugging and the remediation of sites, helping prevent environmental damage associated with oil and gas extraction.

Summary

House Bill 3534 aims to modify the financial surety requirements for oil and gas operators in Oklahoma. It amends the existing law surrounding financial evidence that companies must provide in order to drill or operate wells for oil and gas extraction. The bill phases out the current Category A surety for new operators beginning November 1, 2024, requiring them instead to comply with the structured Category B surety system. This structure consists of varying surety amounts based on the number of wells an operator manages, thereby tailoring the requirements to different scales of operations.

Sentiment

The sentiment around HB3534 appears to be supportive among environmental advocates who believe that stricter financial requirements will lead to better compliance with state laws and improved environmental safety. Conversely, some operators may view these changes as overly burdensome, potentially discouraging new entrants into the market. There is a notable concern regarding the financial implications for smaller companies that may struggle to meet new requirements, as well as the potential impact on job creation within the industry.

Contention

Notable points of contention surrounding the bill include the debate over whether the increased surety requirements could lead to a reduction in operational capabilities for smaller independent operators. Critics argue that these tighter regulations might inadvertently harm local economies reliant on the oil and gas sector. Additionally, there are discussions regarding how effectively the state can enforce these financial requirements and whether the proposed changes will genuinely lead to enhanced accountability among operators regarding environmental risks.

Companion Bills

No companion bills found.

Previously Filed As

OK SB264

Medical marijuana; modifying application method for certain entities; modifying various action duties and functions of the Oklahoma Medical Marijuana Authority. Effective date.

OK SB541

Service warranties; modifying administrative procedures of the Insurance Department. Effective date.

OK SB623

Motor vehicles; modifying references to Service Oklahoma. Effective date. Emergency.

OK HB2373

Torts; Governmental Tort Claims Act; modifying limits of liability; effective date.

OK HB1839

Motor vehicles; modifying definition; making Service Oklahoma a separate and distinct agency; effective date.

OK HB2382

Militia; modifying and updating provisions of the Oklahoma Military Code; effective date.

OK HB2263

Oklahoma Turnpike Authority; modifying membership of the Authority; modifying term length; modifying actions regarding removal of appointive members; prohibiting members from participating in certain votes; effective date.

OK SB612

Oklahoma Lottery; modifying certain requirements of the Oklahoma Lottery Commission; modifying requirements to claim prize. Effective date.

OK SB852

Corporation Commission; providing for certain emission extraction; allowing Commission to obtain carbon credits for certain purpose. Emergency.

OK HB1503

Insurance; motor vehicle liability policies; modifying minimum insurance coverage requirements; effective date.

Similar Bills

OK HB1369

Oil and gas; evidence of financial ability for drilling and operating wells; modifying surety amount and types; effective date.

HI SR88

Requesting Each Branch Of The United States Military In The State To Provide Shelters That Can Withstand Hurricanes With Winds Of Over Two Hundred Miles-per-hour For All Of Their Active And Retired Personnel And Families Living In The State.

HI SCR107

Requesting Each Branch Of The United States Military In The State To Provide Shelters That Can Withstand Hurricanes With Winds Of Over Two Hundred Miles-per-hour For All Of Their Active And Retired Personnel And Families Living In The State.

CA SB363

Health care coverage: independent medical review.

CO SB280

Hazardous Material Mitigation

OK SB1368

Oil and gas; modifying Category B surety amount. Effective date.

CO SB222

Amount Of Tax Owed Table For Initiatives

PA HB976

In pupils and attendance, further providing for exceptional children and education and training.