Compare Versions - OK SB1059 : Oklahoma 2022 Regular Session

Old	New		Differences
1	1
2	2
	3	+	ENGR. S. B. NO. 1059 Page 1 1
	4	+	2
	5	+	3
	6	+	4
	7	+	5
	8	+	6
	9	+	7
	10	+	8
	11	+	9
	12	+	10
	13	+	11
	14	+	12
	15	+	13
	16	+	14
	17	+	15
	18	+	16
	19	+	17
	20	+	18
	21	+	19
	22	+	20
	23	+	21
	24	+	22
	25	+	23
	26	+	24
3	27
4		-	An Act
5		-	ENROLLED SENATE
	28	+	ENGROSSED SENATE
6	29		BILL NO. 1059 By: Thompson and Hall of the
7	30		Senate
8	31
9	32		and
10	33
11	34		Wallace, Hilbert and Newton
12	35		of the House
13	36
14	37
15	38
16	39
17	40		An Act relating to the Corporation Commission
18	41		Plugging Fund; amending 17 O.S. 2011, Section 180.10,
19	42		as last amended by Section 1, Chapter 153, O.S.L.
20	43		2016 (17 O.S. Supp. 2020, Section 180.10), which
21	44		relates to the Corporation Commission Pluggin g Fund;
22	45		modifying certain termination date for plugging fund;
23	46		amending 68 O.S. 2011, Sections 1101 and 1102, as
24	47		amended by Sections 2 and 3, Chapter 153, O.S.L.
25	48		2016, and 1103, as last amended by Section 4, Chapter
26	49		153, O.S.L. 2016 (68 O.S. Supp. 2020, Sections 1101,
27	50		1102 and 1103), which relate to the excise tax on oil
28	51		and gas; extending termination date for certain
29	52		taxes; providing an effective date; and declaring an
30	53		emergency.
31	54
32	55
33	56
34	57
35		-	SUBJECT: Corporation Commission
36		-
37	58		BE IT ENACTED BY THE PEOPLE OF T HE STATE OF OKLAHOMA:
38		-
39	59		SECTION 1. AMENDATORY 17 O.S. 2011, Section 180.10, as
40	60		last amended by Section 1, Chapter 153, O.S.L. 2016 (17 O.S. Sup p.
41	61		2020, Section 180.10), is amended to read as follows:
42		-
43	62		Section 180.10. A. There is hereby created in the State
44	63		Treasury a fund for the Corporation Commission to be designated the
45	64		“Corporation Commission Plugging Fund ”. The plugging fund shall
46	65		consist of monies received by the Corporation Commission as required
	66	+	by law to be deposited to th e credit of said fund. The fund s hall
47	67
48		-	ENR. S. B. NO. 1059 Page 2
49		-	by law to be deposited to th e credit of said fund. The fund s hall
	68	+	ENGR. S. B. NO. 1059 Page 2 1
	69	+	2
	70	+	3
	71	+	4
	72	+	5
	73	+	6
	74	+	7
	75	+	8
	76	+	9
	77	+	10
	78	+	11
	79	+	12
	80	+	13
	81	+	14
	82	+	15
	83	+	16
	84	+	17
	85	+	18
	86	+	19
	87	+	20
	88	+	21
	89	+	22
	90	+	23
	91	+	24
	92	+
50	93		be a continuing fund not subject to fisc al year limitations and
51	94		shall not be subject to legislativ e appropriations. Expenditure s
52	95		from the plugging fund shall be made pursuant to the laws of this
53	96		state and the statute s relating to the Corporation Comm ission. For
54	97		each fiscal year, the Commission may expend not more than eight
55	98		percent (8%) of the total amount deposited to the credit of the
56	99		plugging fund during the previous fiscal year for the purpose of
57	100		responding to occurrences of seeping natural gas a s provided for in
58	101		Section 317.1 of Title 52 o f the Oklahoma Statutes. In addition,
59	102		expenditures from the plugging fund may be made p ursuant to The
60	103		Oklahoma Central Purchasing Act, Section 85.1 et seq. of Title 74 of
61	104		the Oklahoma Statutes, for purposes of immediately responding to
62	105		emergency situations, within the Commission ’s jurisdiction, having
63	106		potentially critical environmental or pu blic safety impact.
64	107		Warrants for expenditures from the fund shall be drawn by the State
65	108		Treasurer, based on claims signed by an authorized employee of the
66	109		Corporation Commission and approved for payment by the Director of
67	110		the Office of Management and Ente rprise Services. The provisions of
68	111		this act or rules promulgated pursuant thereto, shall not be
69	112		construed to relieve or in any way diminish the surety bonding
70	113		requirements required by Section 318.1 of Title 52 of the Oklahoma
71	114		Statutes.
72		-
73	115		B. Prior to July 1, 2021 2026, the plugging fund shall be
74	116		maintained at Five Million Dollars ($5,000,000.00). I f the plugging
	117	+
	118	+	ENGR. S. B. NO. 1059 Page 3 1
	119	+	2
	120	+	3
	121	+	4
	122	+	5
	123	+	6
	124	+	7
	125	+	8
	126	+	9
	127	+	10
	128	+	11
	129	+	12
	130	+	13
	131	+	14
	132	+	15
	133	+	16
	134	+	17
	135	+	18
	136	+	19
	137	+	20
	138	+	21
	139	+	22
	140	+	23
	141	+	24
	142	+
75	143		fund falls below the five-million-dollar maintenance level, the
76	144		Corporation Commission shall notify the Tax Commission that the
77	145		plugging fund has fallen below the required maintenance level and
78	146		that the excise tax which has been levied by su bsection A of Section
79	147		1101 of Title 68 of the Oklahoma Statutes and subsec tion A of
80	148		Section 1102 of Title 68 of the Oklahoma Statutes which is credited
81	149		and apportioned to the Corporation Commission Plugging Fund pursuant
82	150		to Section 1103 of Title 68 of the Oklahoma Statutes is to be
83	151		imposed. Such additional excise tax shall be i mposed and collected
84	152		until such time as is necessary to mee t the additional five-million-
85	153		dollar maintenance level. The Tax Commission shall notify the
86	154		persons responsible for paymen t of the excise tax on oil an d gas of
87	155		the imposition of such tax. The pro visions of this subsection shall
88	156		terminate on July 1, 2021 2026.
89		-
90		-
91		-	ENR. S. B. NO. 1059 Page 3
92	157		SECTION 2. AMENDATORY 68 O.S. 2011, Section 1101, as
93	158		amended by Section 2, Chapter 153, O.S.L. 2016 (68 O.S. S upp. 2020,
94	159		Section 1101), is amended to read as follows :
95		-
96	160		Section 1101. A. Prior to July 1, 2021 2026, and as provided
97	161		in Section 1103.1 of this title, there is hereby levied, in addition
98	162		to the gross production tax, an excise tax equal to ninety -five one
99	163		thousandths of one percent (.095 of 1%) of the gross v alue on each
100	164		barrel of petroleum oil produced in the State of Oklahoma this state
101	165		which is subject to gross production tax in the State of Oklahoma
102	166		this state. Such excise tax of ninety -five one thousandths of one
	167	+
	168	+	ENGR. S. B. NO. 1059 Page 4 1
	169	+	2
	170	+	3
	171	+	4
	172	+	5
	173	+	6
	174	+	7
	175	+	8
	176	+	9
	177	+	10
	178	+	11
	179	+	12
	180	+	13
	181	+	14
	182	+	15
	183	+	16
	184	+	17
	185	+	18
	186	+	19
	187	+	20
	188	+	21
	189	+	22
	190	+	23
	191	+	24
	192	+
103	193		percent (.095 of 1%) of the gross value shall be reported to and
104	194		collected by the Tax Commission at the same time and in the same
105	195		manner as is provided by law for the collection of gross production
106	196		tax on petroleum oil. On petroleum oil sold at the time of
107	197		production, the excise tax thereon shall be paid by the purchaser,
108	198		who is hereby authorized to deduct in making settlement with the
109	199		producer and/or royalty owner the amount of tax so paid; provided,
110	200		that in the event oil on which such tax becomes due is not sold at
111	201		the time of production, but is retained by the producer, the tax on
112	202		such oil not so sold shall be paid by the pr oducer, including the
113	203		tax due on royalty oil not sold; and provided, further, that in
114	204		settlement with royalty owner, such producer shall have the righ t to
115	205		deduct the amount of tax so paid on royalty oil, or to deduct
116	206		therefrom royalty oil equivalent in val ue at the time such tax
117	207		becomes due with the amount of tax paid.
118		-
119	208		The provisions of this subsection shall terminate on June 30,
120	209		2021 2026.
121		-
122	210		B. Beginning on July 1, 2021 2026, there is hereby levied, in
123	211		addition to the gross production tax, an excise tax equal to eighty-
124	212		five one thousandths of one percent (.085 of 1%) of the gross value
125	213		on each barrel of petroleum oil produced in the State of Oklahoma
126	214		this state which is subject to gross production tax in the State of
127	215		Oklahoma this state. Such excise tax of eighty -five one thousandths
128	216		of one percent (.085 of 1 %) of the gross value shall be reported to
	217	+
	218	+	ENGR. S. B. NO. 1059 Page 5 1
	219	+	2
	220	+	3
	221	+	4
	222	+	5
	223	+	6
	224	+	7
	225	+	8
	226	+	9
	227	+	10
	228	+	11
	229	+	12
	230	+	13
	231	+	14
	232	+	15
	233	+	16
	234	+	17
	235	+	18
	236	+	19
	237	+	20
	238	+	21
	239	+	22
	240	+	23
	241	+	24
	242	+
129	243		and collected by the Tax Commission at the same time and in the same
130	244		manner as is provided by law for the collection of gross production
131	245		tax on petroleum oil. On petro leum oil sold at the time of
132	246		production, the excise tax thereon shall be paid by the purchaser,
133	247		who is hereby authorized to deduct in making settlement with the
134		-
135		-	ENR. S. B. NO. 1059 Page 4
136	248		producer and/or royalty owner th e amount of tax so paid; provided,
137	249		that in the event oil on whi ch such tax becomes due is not sold at
138	250		the time of production, but is retained by the producer, the tax on
139	251		such oil not so sold shall be paid by the producer , including the
140	252		tax due on royalty o il not sold; and provided, further, that in
141	253		settlement with royalty owner, such producer shall have the righ t to
142	254		deduct the amount of tax so paid on royalty oil, or to deduct
143	255		therefrom royalty oil equivalent in value at the tim e such tax
144	256		becomes due with the amount of tax paid.
145		-
146	257		SECTION 3. AMENDATORY 68 O.S. 2011, Section 1102, as
147	258		amended by Section 3, Chapter 153, O.S.L. 2016 (68 O.S. Supp. 2020,
148	259		Section 1102), is amended to read as follows:
149		-
150	260		Section 1102. A. Prior to July 1, 2021 2026, and as provided
151	261		in Section 1103.1 of this title, there i s hereby levied, in addition
152	262		to the gross production tax, an excise tax equal to ninety -five one
153	263		thousandths of one percent ( .095 of 1%) of the gross value of all
154	264		natural gas and/or casinghead gas produced in the State of Oklahoma
155	265		this state which is subject to gross production tax in the State of
156	266		Oklahoma this state. Such excise tax of ninety -five one thousandths
	267	+
	268	+	ENGR. S. B. NO. 1059 Page 6 1
	269	+	2
	270	+	3
	271	+	4
	272	+	5
	273	+	6
	274	+	7
	275	+	8
	276	+	9
	277	+	10
	278	+	11
	279	+	12
	280	+	13
	281	+	14
	282	+	15
	283	+	16
	284	+	17
	285	+	18
	286	+	19
	287	+	20
	288	+	21
	289	+	22
	290	+	23
	291	+	24
	292	+
157	293		of one percent (.095 of 1%) of the gross value shall be reported to
158	294		and collected by the Tax Commission at the same time and in the same
159	295		manner as is provided by law for the collectio n of gross production
160	296		tax on natural gas and/or casinghead gas, and this excise tax shall
161	297		apply in all cases where the gross production tax provide d for by
162	298		law applies to the production of natural gas and/or casinghea d gas.
163	299		The excise tax shall be paid by the purchaser, who is hereby
164	300		authorized to deduct in making settlement with the producer and/or
165	301		royalty owner the amount of tax so paid,; provided, however, that if
166	302		such natural gas and/or casinghead gas is retained by the producer,
167	303		then the tax shall be p aid by the producer, who shal l have the right
168	304		to deduct the amount of tax so paid on royalty gas at the time of
169	305		settlement with the royalty owner.
170		-
171	306		The provisions of this subsection shall terminate on June 30,
172	307		2021 2026.
173		-
174	308		B. Beginning on July 1, 2021 2026, there is hereby levied, in
175	309		addition to the gross production tax, an excise tax equal to eighty -
176	310		five one thousandths of one percent (.085 of 1%) of the gross value
177	311		of all natural gas and/or casinghead gas produced in the State of
178		-
179		-	ENR. S. B. NO. 1059 Page 5
180	312		Oklahoma this state which is subject to gross production tax in the
181	313		State of Oklahoma this state. Such excise tax of eighty -five one
182	314		thousandths of one percent (.085 of 1%) of the gross value sha ll be
183	315		reported to and collected by the Tax Comm ission at the same time and
184	316		in the same manner as is provided by law for the collection of gr oss
	317	+
	318	+	ENGR. S. B. NO. 1059 Page 7 1
	319	+	2
	320	+	3
	321	+	4
	322	+	5
	323	+	6
	324	+	7
	325	+	8
	326	+	9
	327	+	10
	328	+	11
	329	+	12
	330	+	13
	331	+	14
	332	+	15
	333	+	16
	334	+	17
	335	+	18
	336	+	19
	337	+	20
	338	+	21
	339	+	22
	340	+	23
	341	+	24
	342	+
185	343		production tax on natural gas and/or casinghead gas, and this excise
186	344		tax shall apply in all cases where the gros s production tax provided
187	345		for by law applies to the production of natural gas and/or
188	346		casinghead gas. The excis e tax shall be paid by the pu rchaser, who
189	347		is hereby authorized to deduct in making settlement with th e
190	348		producer and/or royalty owner the amount o f tax so paid,; provided,
191	349		however, that if such natural gas and/or casinghead gas is retained
192	350		by the producer, then the tax shall be paid by the producer, who
193	351		shall have the right to deduct the amount of tax so p aid on royalty
194	352		gas at the time of settlement with the royalty owner .
195		-
196	353		SECTION 4. AMENDATORY 68 O.S. 2011, Section 1103, as
197	354		last amended by Section 4, Chapter 153 , O.S.L. 2016 (68 O.S. Supp.
198	355		2020, Section 1103), is amended to read a s follows:
199		-
200	356		Section 1103. A. 1. Prior to Jul y 1, 2021 2026, and as
201	357		provided in Section 11 03.1 of this title, all monies derived from
202	358		the levy of the excise tax on petroleum oil provided for by Section
203	359		1101 of this title sh all be deposited with the State Treasurer, who
204	360		shall credit and apportion the same as follows:
205		-
206	361		a. eighty-two and six hundred thirty-four thousandths
207	362		percent (82.634%) of said excise tax shal l be credited
208	363		to the General Revenue Fund of the State Treasury;
209	364		provided, in each fiscal year beg inning on or after
210	365		July 1, 2013, the first One Million Three Hundred
211	366		Fifty Thousand Dollars ($1,350,000.00) which would
	367	+
	368	+	ENGR. S. B. NO. 1059 Page 8 1
	369	+	2
	370	+	3
	371	+	4
	372	+	5
	373	+	6
	374	+	7
	375	+	8
	376	+	9
	377	+	10
	378	+	11
	379	+	12
	380	+	13
	381	+	14
	382	+	15
	383	+	16
	384	+	17
	385	+	18
	386	+	19
	387	+	20
	388	+	21
	389	+	22
	390	+	23
	391	+	24
	392	+
212	393		otherwise have been apportioned to the General Revenue
213	394		Fund pursuant to this subparagraph shall be
214	395		transferred to the Oil and Gas Divisi on Revolving Fund
215	396		of the Oklahoma Corporation Commission,
216		-
217	397		b. ten and five hundred twenty -six thousandths percent
218	398		(10.526%) shall be credited and apportioned t o a
219	399		separate and distinct fun d to be known as the
220	400		“Corporation Commission Plugging Fund ”, and
221		-
222		-
223		-	ENR. S. B. NO. 1059 Page 6
224	401		c. the remaining six and eighty -four hundredths percent
225	402		(6.84%) of said excise tax shall be cre dited and
226	403		apportioned to a separate and distinct fund to be
227	404		known as “The Interstate Oil Compact Fund of
228	405		Oklahoma”, which fund is hereby created.
229		-
230	406		2. Prior to July 1, 2021 2026, and as provided in Section
231	407		1103.1 of this title, all monies derived from the l evy of the excise
232	408		tax on natural gas and/or casinghead gas provided for by Section
233	409		1102 of this title shall be deposited with the State Tr easurer, who
234	410		shall credit and apportion the same as follows:
235		-
236	411		a. eighty-two and six thousand forty -five ten thousandths
237	412		percent (82.6045%) of said excise tax shall be
238	413		credited to the Gene ral Revenue Fund of the State
239	414		Treasury; provided, in each fiscal year beginning on
240	415		or after July 1, 2013, the first One Million Three
241	416		Hundred Fifty Thousand Dollars ($1,350,000.00) which
	417	+
	418	+	ENGR. S. B. NO. 1059 Page 9 1
	419	+	2
	420	+	3
	421	+	4
	422	+	5
	423	+	6
	424	+	7
	425	+	8
	426	+	9
	427	+	10
	428	+	11
	429	+	12
	430	+	13
	431	+	14
	432	+	15
	433	+	16
	434	+	17
	435	+	18
	436	+	19
	437	+	20
	438	+	21
	439	+	22
	440	+	23
	441	+	24
	442	+
242	443		would otherwise have been apportioned to the General
243	444		Revenue Fund pursuant to this subparagraph sh all be
244	445		transferred to the Oil and Gas Div ision Revolving Fund
245	446		of the Oklahoma Corporation Commission,
246		-
247	447		b. ten and five thousand five hundred fifty -five ten
248	448		thousandths percent (10.5555%) shall be credited and
249	449		apportioned to the Corporation Commission Pluggi ng
250	450		Fund, and
251		-
252	451		c. six and eighty-four hundredths percent (6.84%) of sa id
253	452		excise tax shall be credited and apportione d to The
254	453		Interstate Oil Compact Fund of Oklah oma.
255		-
256	454		3. Prior to July 1, 2021 2026, and as provided in Section
257	455		1103.1 of this title, all monies t o accrue to “The Interstate Oil
258	456		Compact Fund of Oklahoma” under the provisions of this article,
259	457		together with all monies remaining unexpended in “The Interstate Oil
260	458		Compact Fund of Oklahoma” created under this subsection are he reby
261	459		appropriated and shall b e used for the payment of the compensation
262	460		of the assistant represe ntative of the State of Oklahoma on “The
263	461		Interstate Oil Compact Commission ”, the compensation of such
264	462		clerical, technical, and legal assistants as he or she may with the
265	463		consent of the Governor employ; the actual and necessary traveli ng
266		-
267		-	ENR. S. B. NO. 1059 Page 7

356

643

capacity as official repr esentative of the State of Oklahoma on “The

357

644

Interstate Oil Compact Commission”; all items of office expense ,

358

645

including the cost of office supplies and equipment; such

359

646

contributions as the Governor shall deem necessary and proper to pay

360

647

to “The Interstate Oil Compact Commission ” to defray its expenses ;

361

648

and such other necessary expenses as may be incurred in enabling the

362

649

State of Oklahoma to fully coop erate in accomplishing the objects of

363

650

the Interstate Compact to conserve oil and gas. The fund shall be

364

651

disbursed by the State Treasurer upon sworn, item ized claims

365

652

approved by the assistant representative and the Governor; pr ovided,

366

653

that if at the end of any fiscal year any part of the special fund

367

654

shall remain unexpended, such balance shall be transferred by t he

368

655

State Treasurer to, and become a part of, the General Revenue Fund

369

656

of the State Treasury for the ensuing fiscal yea r. Provided,

370

657

further, that if the State of Oklahoma withdraws from the Interstate

371

658

Compact to conserve oil and gas, any unencumbered monie s in “The

372

659

Interstate Oil Compact Fund of Okla homa” shall be transferred to and

373

660

become a part of the General Revenue Fu nd of the State Treasury and

374

661

thereafter the excise tax on petroleum oil, natural gas and/o r

375

662

casinghead gas levied by this article shall be levied, collected and

376

663

deposited in the Gener al Revenue Fund of the State Treasury .

Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB1059 Compare Versions