Oklahoma Senate Bill SB18

Oklahoma 2023 Regular Session

• Introduced: 2/6/23
• Refer: 2/7/23
• Report Pass: 2/16/23
• Engrossed: 3/7/23
• Refer: 3/29/23
• Report Pass: 4/5/23

Caption

Oil and Gas Produced Water and Waste Recycling and Reuse Act; modifying definition; excluding certain persons from liability. Effective date.

Impact

If enacted, SB18 is expected to have substantial implications for state laws concerning oil and gas production, particularly regarding the recycling of produced water. The bill outlines that operators are responsible for the use and disposal of produced water, including the option to recycle it for beneficial uses. Liability protections are also established for certain actions involving recycled water, which may encourage operators to adopt more environmentally friendly practices. This could lead to a significant increase in the recycling of produced water in the state, potentially optimizing resource use and reducing environmental risks.

Summary

Senate Bill 18, known as the Oil and Gas Produced Water and Waste Recycling and Reuse Act, aims to establish regulatory clarity regarding the handling and disposal of produced water and waste from oil and gas operations. The bill modifies previous definitions and outlines the rights and responsibilities of operators and nonoperators involved in the drilling and production processes. An important aspect of the bill is to delineate ownership and responsibility for produced water and waste, simplifying the legal framework around these substances and promoting their recycling for beneficial reuse.

Sentiment

The sentiment surrounding SB18 appears to be largely supportive among industry stakeholders who emphasize the need for clear guidelines and liability protections that encourage the recycling of produced water. Proponents argue that the bill promotes environmentally sustainable practices and could lead to better resource management within the oil and gas sector. However, there are concerns regarding the bill's impact on environmental safeguards and the potential for reduced oversight, which has led to some opposition from environmental advocacy groups who fear that less regulation could result in negative environmental consequences.

Contention

Notable points of contention in the discussion surrounding SB18 include the balance between promoting industry growth and ensuring adequate environmental protections. While the bill's supporters highlight its potential to improve recycling practices, opponents argue that the liability exclusions may create a moral hazard, incentivizing less careful handling of produced water. Furthermore, the question of local versus state control over water management practices remains a critical issue, as local governments may lose some regulatory power under this new framework.