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SENATE FLOOR VERSION
February 11, 2021
SENATE BILL NO. 502 By: Taylor
An Act relating to environment and natural resources;
amending 27A O.S. 2011, Section 2 -7-403, which
relates to highway remediation and cleanup; providing
exception for authority over highway remediation and
cleanup services; amending 17 O.S. 2011, Section 52,
as amended by Section 1, Chapter 77, O.S.L. 2016 (17
O.S. Supp. 2020, Section 52) , which relates to the
authorities of the Corp oration Commission; providing
definitions; providing authority to Corporation
Commission for certain highway remediation and
cleanup services; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 27A O.S. 2011, Section 2-7-403, is
amended to read as follows:
A. The Department of Environmental Quality shall have the power
and authority to license , supervise, govern and regulate highway
remediation and cleanup se rvices and highway remediation and clean up
service operators in this state except as provided in Section 2 of
this act.
B. The Environmenta l Quality Board is authorized to adopt rules
as necessary to implement the provisions of this act. The rules
shall state the requirements for facilities, f or storage of
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vehicles, the records to be kept by operators and liability
insurance and other insura nce or bonding requirements in such sums
and with such provisions as the Department deems necessary to
adequately protect the interests of the public. The rules may
address such other matters as the Board deems necessary for the
protection of the public.
SECTION 2. AMENDATORY 17 O.S. 2011, Section 52, as
amended by Section 1, Chapter 77, O.S.L. 2016 (17 O.S. Supp. 2020,
Section 52), is amended to read as follows:
Section 52. A. 1. Except as otherwise provided by this
section, the Corporation Commission is hereby vested with ex clusive
jurisdiction, power and authority with reference to:
a. the conservation of oil and gas,
b. field operations for geologic and geophysical
exploration for oil, gas and brine , including seismic
survey wells, stratigraphic test wells and core test
wells,
c. the exploration, drilling, development, producing or
processing for oil and gas on the lease site,
d. the exploration, drilling, development, production and
operation of wells used in connection with the
recovery, injection or disposal of mineral br ines,
e. reclaiming facilities only for the processing of salt
water, crude oil, natural gas condensate and tank
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bottoms or basic sediment from crude oil tanks,
pipelines, pits and equipment associated with the
exploration, drilling, development, producing or
transportation of oil or gas,
f. injection wells known as Class I I wells under the
federal Underground Injection Control Program, and any
aspect of any CO2 sequestration facility , including
any associated CO2 injection well, over which the
Commission is given jurisdiction pursuant to the
Oklahoma Carbon Capture and Geol ogic Sequestration
Act. Any substance that the United States
Environmental Protection Agency allows to be injected
into a Class II well may continue to be so injected,
g. tank farms for storage of crude oil and petroleum
products which are located outside the boundaries of
refineries, petrochemical manufacturing plants,
natural gas liquid extraction plants, or other
facilities which are subject to the jurisdiction of
the Department of Env ironmental Quality with regard to
point source discharges,
h. the construction and operation of pipelines a nd
associated rights-of-way, equipment, facilities or
buildings used in the transportation of oil, gas,
petroleum, petroleum products, anhydrous ammo nia or
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mineral brine, or in the treatment of oil, gas or
mineral brine during the course of transportation but
not including line pipes in any:
(1) natural gas liquids extraction plant,
(2) refinery,
(3) reclaiming facility other than for those
specified within subparagraph e of this
subsection,
(4) mineral brine processing plant, and
(5) petrochemical manufact uring plant,
i. the handling, transportation, storage and disposition
of saltwater, mineral brines, waste oil and other
deleterious substances produc ed from or obtained or
used in connection with the drilling, developm ent,
producing and operating of oil an d gas wells, at:
(1) any facility or activity specifically listed in
paragraphs 1 and 2 of this subsection as being
subject to the jurisdiction of th e Commission,
and
(2) other oil and gas extraction facilities and
activities,
j. spills of deleterious subs tances associated with
facilities and activities specified in paragraph 1 of
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this subsection or associated with other oil and gas
extraction facilities and activities, and
k. subsurface storage of oil, natural gas and liquefied
petroleum gas in geologic st rata, and
l. the licensing, supervising, governing and regulating
of highway remediation and cleanup services and
highway remediation and cleanup service operators in
this state for the remediation of brin e and oil, as
defined in this section .
2. As used in this section:
a. “brine” means subterranean saltwater and all of its
constituent parts and chemical substances therein
contained including, but not limited to, bromine,
magnesium, potassium, lithium, boron, chl orine,
iodine, calcium, strontium, sodium, sulphur, barium or
other chemical substances produced wit h or separated
from such saltwater. Brine produced as an incident to
the production of oil or gas, unless such brine is
saved or sold for the purposes of re moving chemical
substances therefrom, shal l not be considered brine
for the purposes of this act. Gas, whether found in
solution or otherwise, shall not be included within
the meaning of the term “brine”, and
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b. “oil” means crude petroleum oil and all oth er
hydrocarbons, regardless of gravity, wh ich are
produced in liquid form, but does not include liqu id
hydrocarbons which were originally in a gaseous phase
in the reservoir.
2. 3. The exclusive jurisdiction, power and authority of the
Corporation Commission shall al so extend to the construction,
operation, maintenance, site remediation, closure and abandonment of
the facilities and activities described in paragraph 1 of this
subsection.
3. 4. When a deleterious substance from a Commission -regulated
facility or activity enters a point source disc harge of pollutants
or storm water from a facility or activity regulated by the
Department of Environmental Quality, the Department shall have sole
jurisdiction over the point source discharge of the commingled
pollutants and storm water from the two facil ities or activities
insofar as Department-regulated facilities and activities are
concerned.
4. 5. For purposes of the Federal Clean Water Act, any facilit y
or activity which is subject to the jurisdiction of the Corporation
Commission pursuant to paragra ph 1 of this subsection and any other
oil and gas extraction facility or activity which requires a permit
for the discharge of a pollutant or storm water to waters of the
United States shall be subject to the direct jurisdicti on of the
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United States Enviro nmental Protection Agency and shall not be
required to be permitted by the Department of Environmental Quality
or the Corporation Commission for such discha rge.
5. 6. The Corporation Commission shall have jurisdiction over:
a. underground storage tanks th at contain antifreeze,
motor oil, motor fuel, gasoline, kerosene, diesel, or
aviation fuel and that are not located at refineries
or at upstream or intermediat e shipment points of
pipeline operations, including, but not limite d to,
tanks from which these m aterials are dispensed into
vehicles, or tanks used in wholesale or bulk
distribution activities, as well as leaks from pumps,
hoses, dispensers, and other anc illary equipment
associated with the tanks, whether above the groun d or
below; provided that any point source discharge of a
pollutant to waters of the United States during site
remediation or the off -site disposal of contaminated
soil, media, or debris sh all be regulated by the
Department of Environmental Quality,
b. aboveground storage tanks that co ntain antifreeze,
motor oil, motor fuel, gaso line, kerosene, diesel, or
aviation fuel and that are not located at refineries
or at upstream or intermediate shi pment points of
pipeline operations, including, but not limited to,
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tanks from which these materi als are dispensed into
vehicles, or tanks use d in wholesale or bulk
distribution activities, as well as leaks from pumps,
hoses, dispensers, and other ancillar y equipment
associated with the tanks, whether above the ground or
below; provided that any point source discharge of a
pollutant to waters of the United States during site
remediation or the off -site disposal of contaminated
soil, media, or debris shall b e regulated by the
Department of Environmental Quality, and
c. the Petroleum Storage Tank Release Environmental
Cleanup Indemnity Fund and Pro gram and the Leaking
Underground Storage Tank Trust Fund.
6. 7. The Department of Environmental Quality shall have s ole
jurisdiction to regulate the transportation, discharge or re lease of
deleterious substance s or hazardous or solid waste or other
pollutants from rolling stock and rail facilities. The Department
of Environmental Quality shall not have any jurisdiction with
respect to pipeline transportation of carbon dioxide.
7. 8. The Department of Environme ntal Quality shall have sole
environmental jurisdic tion for point and nonpoint source discharges
of pollutants and storm water to waters of the state from:
a. refineries, petrochemical manufacturing plants and
natural gas liquid extraction plants,
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b. manufacturing of oil and gas related equipment and
products,
c. bulk terminals, aboveground and underground storage
tanks not subject to the jurisdiction of the
Commission pursuant to this subsection, and
d. other facilities, activ ities and sources not subject
to the jurisdiction of the Corporation Commission o r
Department of Agriculture as specified by this
section.
8. 9. The Department of Environmental Quality shall have s ole
environmental jurisdiction to regulate air emissions f rom all
facilities and sources subject to operating permit requirements
under Title V of the Federal Clean Air Act as amended.
B. The Corporation Commission and incorporated cities and towns
shall have exclusive jurisdiction over permit fees for the drill ing
and operation of oil and g as wells.
C. The Corporation Commission shall comply with and enforce the
Oklahoma Water Quality Standards.
D. For purposes of immediately responding to emergency
situations having potentially critical environmental or publi c
safety impact and resulting from activities within its jurisdiction,
the Corporation Commission may take whatever action is necessary,
without notice and hearing , including without limitation the
issuance or execution of administrative agreements by the Oil and
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Gas Conservation Divis ion of the Corporation Commission, to promptly
respond to the emergency.
SECTION 3. This act shall become effectiv e November 1, 2021.
COMMITTEE REPORT BY: COMMITTEE ON ENERGY
February 11, 2021 - DO PASS