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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
COMMITTEE SUBSTITUTE
FOR
SENATE BILL 205 By: Dahm, Bullard, and Jett
COMMITTEE SUBSTITUTE
[ oil and gas - State Strategic Petroleum Reserve -
appropriation – codification -
emergency ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new se ction of law to be codified
in the Oklahoma Statutes as Section 281 of Title 52, unless there is
created a duplication in numbering, reads as follows:
A. 1. Beginning July 1, 2023, and each fiscal year thereafter,
the Legislature may appropriate any surp lus funds that are not
constitutionally required to be de posited into the Constitutional
Reserve Fund and are not otherwise en cumbered to establish and
maintain a State Strategic Petroleum Reserve. The Reserve shall
contain up to fifteen million barrels of crude oil. The Corporation
Commission shall maintain the Reserve and is authorized to
promulgate rules necessary to effectu ate the provisions of this act.
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2. For the purposes of this act, “State Strategic Petroleum
Reserve” means state-owned oil stocks maintained in oil wells within
the boundaries of this state.
B. Oil may be released fr om the Reserve by executive order of
the Governor or by direction of the Legislature if a measure
directing the release is enacted; provided, evidence of one or more
of the following conditions or cir cumstances for release shall be
established:
1. The state or any oil-producing entity operati ng in the state
faces a disruption in supply;
2. An exchange agreement w ith another country, state, political
subdivision, or oil company is entered into;
3. The Governor has declared a state of emergency;
4. Non-emergency sales are deemed necessary to raise revenue or
lessen supply disruptions;
5. The National Guard of Oklahoma or any other emergency
response entity of th is state or a political subdivision of this
state demonstrates to the Legislature an increased need for oil; or
6. The price of gas or diesel has increased by more than
twenty-five percent (25%) within a three-month period; provided, oil
shall be released to service statio ns only following such stations
entering into an agreement or contract that the oil shall be used to
lower the cost of gas and diesel to consumers in this state.
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SECTION 2. It being immediately necessary for the preservation
of the public peace, health or safety , an emergency is hereby
declared to exist, by reason whereof this a ct shall take effect and
be in full force from and after its passage and approval.
59-1-1952 RD 3/1/2023 5:09:20 PM