Oklahoma Senate Bill SB629

Oklahoma 2023 Regular Session

• Introduced: 2/6/23
• Refer: 2/7/23

Caption

Oil and gas operators; requiring operators to obtain written permission or surface damage settlement prior to closure of a well. Effective date.

Impact

The implications of SB629 extend to existing state laws about surface reclamation and well operations. The bill requires operators to undertake extensive reclamation activities, including the removal of operational debris and proper grading of disturbed land within set timeframes. This not only provides clarity about operators' responsibilities at the end of a well's productive life but also aims to protect landowners' interests. Furthermore, the legislation aligns with environmental considerations, as it seeks to mitigate the ecological impact of abandoned or closed wells, ensuring that the land is restored to its natural state as much as possible.

Summary

Senate Bill 629 aims to enhance regulatory oversight concerning the closure of oil and gas wells in Oklahoma. The bill amends 17 O.S. 2021, Section 53.2, requiring operators to secure written permission from landowners or settle surface damage agreements prior to capping or plugging wells. This is a significant shift as it places more responsibility on operators to engage directly with landowners, ensuring they are compensated for any damages incurred during well operations. By mandating that operators obtain permission before closing wells, the bill seeks to address potential disputes that can arise between operators and landowners regarding land use and reclamation processes.

Contention

While the bill addresses important concerns around landowner rights, it may also incite contention among operators who might perceive the added requirements as bureaucratic hurdles that could increase operational costs. Some operators may argue that the need for written permission could delay the decommissioning process of wells, leading to financial and logistical complications. Additionally, the exemption for Osage County included in the bill could raise questions about fairness and uniformity in regulations across different regions of Oklahoma, as it potentially leaves certain areas unregulated under these new provisions.