ENGR. S. B. NO. 1594 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ENGROSSED SENATE BILL NO. 1594 By: Murdock of the Senate and Boles and Patzkowsky of the House [ water and water rights - Oklahoma Water Resources Board certify review of certain alternative uses of fresh groundwater before approving p ermit - codification - effective date ] BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 1020.9D of Title 82, unless there is created a duplication in numbering, reads as follows: 1. Prior to approving a permit to use fresh groundwater for enhanced recovery of oil and gas, the Oklahoma Water Resources Board shall determine that the ap plicant has reviewed all other economically viable alternatives for the use of fresh groundwater. 2. Applicants filing a permit application to use fresh groundwater for enhanced r ecovery of oil and gas, in addition to all other requirements, shall furnish the following as part of and at the time of filing the application: a. a copy of the easements or leases from the surface right owners giving the appli cant the right to develop ENGR. S. B. NO. 1594 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 and use the fresh groundwater for the recovery process, b. an estimated schedule of use showing the amount of fresh groundwater used each year in the recovery process, c. an economic study containing the following information: (1) a detailed analysis of the relativ e cost of obtaining salt water and any other feasible alternative versus the relative cost of obtaining fresh groundwater, (2) total project costs and the amount of oil and gas expected to be recovered and the value expec ted to be realized, (3) the estimated value of fresh groundwater for other purposes including, but not limited to, those that are common to the area or vicinity subject of the application as measured against the overall estimated value of the oil or gas to be recovered, (4) the additional expense per barrel of oil recovered if the applica nt is required to use or treat salt water instead of fresh groundwater in the recovery process, and ENGR. S. B. NO. 1594 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (5) an evaluation of other recovery methods considered and an explanation justifying the choice of using fresh groundwater for recovery as necessary or the most fea sible, d. an inventory of all wells, whether active or abandoned within the boundaries of the proposed unitization and within two (2) miles of the outside boundaries of the proposed unitization , e. the permeability, thickness, and estimated porosity of the injection zone, and f. information about the reuse and recycling of the fresh groundwater. 3. The applicant may also be required to furnish other relevant material upon request of the Board including, but not limited to, the following: a. a copy of the unitization pla n on file with the Corporation Commission , b. a copy of each injection well application and the approval of such application b y the Corporation Commission, c. a copy of all logs of each injection well showing the name of each zone containing salt water , and d. the name and chemical composition of any material or substance other than fresh groundwater proposed to be ENGR. S. B. NO. 1594 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 injected underground in connection wi th the proposed enhanced recovery operation . SECTION 2. This act shall become effective No vember 1, 2022. Passed the Senate the 21st day of March, 2022. Presiding Officer of the Senate Passed the House of Representatives the ____ day of __________, 2022. Presiding Officer of the House of Representatives