Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB1645 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	SENATE FLOOR VERSION - SB1645 SFLR Page 1
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29		-	SENATE FLOOR VERSION
30		-	February 17, 2022
	53	+	STATE OF OKLAHOMA
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	55	+	2nd Session of the 58th Legislature (2022)
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33		-	SENATE BILL ~~NO.~~ 1645 By: David
	57	+	SENATE BILL 1645 By: David
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	65	+	AS INTRODUCED
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41	67		An Act relating to the Oklahoma Brine Development
42	68		Act; amending 17 O.S. 2021, Section 518, which
43	69		relates to evidence of financial ability to drill,
44	70		operate, and plug wells; increasing dollar amount of
45	71		financial instrument required to drill and operate
46	72		certain wells and units; and providing an effective
47	73		date.
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53	79		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
54	80		SECTION 1. AMENDATORY 17 O.S. 2021, Section 518, is
55	81		amended to read as follows:
56	82		Section 518. A. Any person who drills or operates any well or
57	83		unit for the exploration, development or production of oil or brine,
58	84		or as an injection or disposal well, within this state, shall
59	85		furnish in writing, on forms approved by the Corporation Commission,
60	86		his or her agreement to drill, operate and plug wells in compliance
61	87		with the rules of the Commission and the laws of this state,
62	88		together with evidence of f inancial ability to comply with the
63	89		requirements for plugging, closure of surface impoundments, removal
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65		-	SENATE FLOOR VERSION - SB1645 SFLR Page 2
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91	141		of trash and equipment as established by the rules of the Commiss ion
92	142		and by law.
93	143		B. To establish evidence of financial ability, the Commission
94	144		shall require an irrevocable commercial letter of credit, cash, a
95	145		cashier’s check, a Certificate of Deposit, Bank Joint Custody
96	146		Receipt, other negotiable instrument or a blanket surety bond. The
97	147		amount of such letter of credit, cash, cashier ’s check, certificate,
98	148		bond, receipt or other negotiable instrument shall be in the amount
99	149		of Twenty-five Thousand Dollars ($25,000.00) Fifty Thousand Dollars
100	150		($50,000.00) per well. If an operator operates more than four wells
101	151		subject to this requirement, the operator may file appropriate
102	152		evidence of financial ability in a blanket amount of One Hundred
103	153		Thousand Dollars ($100,000.00) Two Hundred Thousand Dollars
104	154		($200,000.00). Any instrument shall constitute an unconditional
105	155		promise to pay and be in a form negotiable by the Commission.
106	156		C. The agreement provided for in subsection A of this section
107	157		shall provide that if the Commission determines that the person
108	158		furnishing the agreement has neglected, failed or refused to plug
109	159		and abandon, or cause to be plugged and abando ned, or replug any
110	160		well or has neglected, failed or refused to close any surface
111	161		impoundment or removed or cause to be removed trash and equipment in
112	162		compliance with the rules of the Commission, then the person shall
113	163		forfeit from his or her bond, letter of credit or negotiable
114	164		instrument or shall pay to this state, through the Commission, for
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116		-	SENATE FLOOR VERSION - SB1645 SFLR Page 3
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142	216		deposit in the State Treasury, a sum equal to the cost of plugging
143	217		the well, closure of any su rface impoundment or removal of trash and
144	218		equipment. The Commission may cause the remedial work to be done,
145	219		issuing a warrant in payment of the cost thereof drawn against the
146	220		monies accruing in the State Treasury from the forfeiture or
147	221		payment. Any monies accruing in the State Treasury by reason of a
148	222		determination that there has been a noncompliance with the
149	223		provisions of the agreement or the rules of the Commission, in
150	224		excess of the cost of remedial action ordered by the Commission,
151	225		shall be credited to the Oil and Gas Revolving Fund. The Commission
152	226		shall also recover any co sts arising from litigation to enforce this
153	227		provision. Provided, before a person is required to forfeit or pay
154	228		any monies to the state pursuant to this section, the Commission
155	229		shall notify the person at his or her last-known address of the
156	230		determination of neglect, failure or refusal to plug or replug any
157	231		well, or close any surface impoundment or remove trash and equipment
158	232		and such person shall have ten (10) days from the date of
159	233		notification within which to commence remedial operations. Failure
160	234		to commence remedial operations shall result in forfeiture or
161	235		payment as provided in this subsection.
162	236		D. If title to property or a well is transferred, the
163	237		transferee shall furnish the eviden ce of financial ability to plug
164	238		the well and close surface impoundments r equired by the provisions
165	239		of this section, prior to the transfer.
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167		-	SENATE FLOOR VERSION - SB1645 SFLR Page 4
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193	291		SECTION 2. This act shall become effective November 1, 2022.
194		-	~~COMMITTEE REPORT BY: COMMITTEE ON ENERGY~~
195		-	~~February 17,~~ 2022 ~~- DO PASS~~
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