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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
SENATE BILL 1568 By: Rader
AS INTRODUCED
An Act relating to the Corporation Commission ;
amending 17 O.S. 2021, Section 52, which relates to
jurisdiction of the Commission; clarifying well
jurisdiction; amending 27A O.S. 2021, Sections 1-3-
101, as last amended by Section 2, Chapter 164,
O.S.L. 2023, 3-5-102, 3-5-103, 3-5-104, as amended by
Section 1, Chapter 353, O.S.L. 2023 , 3-5-105, and 3-
5-106 (27A O.S. Supp. 2023, Section s 1-3-101 and 3-5-
104), which relate to jurisdiction of environmental
agencies; conforming language; modifying definitions;
modifying authority over certain injection wells;
modifying hearing require ments; directing rule
promulgation; providing for pore sp ace unitization
for certain purpose; establishing application and
hearing procedures; providing for issuance of certain
order by Commission; directing issuance of
certificate of completion to certain facility
following certain time period; providing for release
from certain obligations under certain circumstances;
prescribing fines and fee s; creating the Class VI
Carbon Sequestration Storage Facility R evolving Fund;
establishing fund purpose; directing source of funds;
establishing cap on funds to be incurred from single
facility; directing furnishing of certain report;
amending 52 O.S. 2021, Section 139, which relates to
jurisdiction of the Commission ; conforming language;
providing for codification; updating statutory
references; updating statutory language; and
providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STA TE OF OKLAHOMA:
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SECTION 1. AMENDATORY 17 O.S. 2021, Section 52, is
amended to read as follows:
Section 52. A. 1. Except as otherwise provided by thi s
section, the Corporation Commission is hereby vested wi th exclusive
jurisdiction, power and authority with reference to:
a. the conservation of oil and gas,
b. field operations for geologic and geophysica l
exploration for oil, gas and brine, includi ng seismic
survey wells, stratigrap hic 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, de velopment, production and
operation of wells used in con nection with the
recovery, injection or disposal of miner al brines,
e. reclaiming facilities only for the processing of sal t
water, crude oil, natural gas condensate and tank
bottoms or basic sediment from crude oil tanks,
pipelines, pits and equipmen t associated with the
exploration, drilling, development, producing or
transportation of oil or gas,
f. injection wells known as Class II wells under the
federal Underground Injection Control Program program,
and any aspect of any CO2 sequestration facility,
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including any associated Class VI CO2 injection well,
over which the Commission is given jurisdiction
pursuant to the Oklahoma Carbon Capture and Geologic
Sequestration Act. Any substance that the United
States Environmental Protection Agency allows to be
injected into a Class II well may conti nue to be so
injected,
g. tank farms for storage of crude oil and petroleum
products which are located outside the boundaries of
refineries, petrochemical manufactu ring plants,
natural gas liquid extraction plants, or other
facilities which are subje ct to the jurisdiction of
the Department of Environmental Quality with regard to
point source discharges,
h. the construction and operation of pipelines and
associated rights-of-way, equipment, facilities or
buildings used in the transportation of oil, gas,
petroleum, petroleum products, anhydrous ammo nia or
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 extractio n plant,
(2) refinery,
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(3) reclaiming facility other than for tho se
specified within subparagraph e of this
subsection paragraph,
(4) mineral brine processing plant, and
(5) petrochemical manufacturing plan t,
i. the handling, transportation, storage and di sposition
of saltwater, mineral brines , waste oil and other
deleterious substances produced from or ob tained or
used in connection with the drilling, development,
producing and operating of oil and gas wells, at:
(1) any facility or activity specifically l isted in
paragraphs 1 this paragraph and paragraph 2 of
this subsection as being subject to the
jurisdiction of the Commission, and
(2) other oil and gas extraction facilities and
activities,
j. spills of deleterious substances associated with
facilities and activities specified in paragraph 1 of
this subsection paragraph or associated with other oil
and gas extraction facilities and activi ties, and
k. subsurface storage of oil, natural gas and liquefied
petroleum gas in geologic strata.
2. The exclusive jurisdiction, power and authority of the
Corporation Commission shall also ext end to the construction,
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operation, maintenance, site remediation, closure and abandonment of
the facilities and activities descr ibed in paragraph 1 of this
subsection.
3. When a deleterious substance from a Commissi on-regulated
facility or activity enters a point source discharge 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 wat er from the two facilities or act ivities
insofar as Department -regulated facilities and activities are
concerned.
4. For purposes of the Federal federal Clean Water Act, any
facility or activity which is subject to t he jurisdiction of the
Corporation Commission pursuant to paragraph 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
jurisdiction of the Un ited States Environmental Protect ion Agency
and shall not be required to be permitted by the Department of
Environmental Quality or the Corporati on Commission for such
discharge.
5. The Corporation Commission shall have jurisdiction over:
a. underground storage tanks that contain antifreeze,
motor oil, motor fuel, gasoline, kerosene, diesel, or
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aviation fuel and that are not located at refineries
or at upstream or intermed iate shipment points of
pipeline operations, including, but not limited to,
tanks from which these materials are dispe nsed into
vehicles, or tanks used in wholesale or bulk
distribution activities, as well as leaks from pumps,
hoses, dispensers, and other ancillary 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 be regulated by the
Department of Environmental Quality,
b. aboveground storage tanks that contain antifreeze,
motor oil, motor fuel, gasoline, kerosene, diesel, or
aviation fuel and that are not loc ated at refineries
or at upstream or intermediate shipment points of
pipeline operations, including, but not limited to,
tanks from which these materials are dispensed into
vehicles, or tanks use d in wholesale or bulk
distribution activities, as well as leaks from pumps,
hoses, dispensers, and other ancil lary equipment
associated with the tanks, whether above the ground or
below; provided that any point source discharge of a
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pollutant to waters of the United States during site
remediation or the off -site disposal of contaminated
soil, media, or debris shal l be regulated by the
Department of Environmental Quality, and
c. the Petroleum Storage Tank Release Environmental
Cleanup Indemnity Fund and Pro gram and the Oklahoma
Leaking Underground Storage Tank Trust Fund.
6. The Department of Environmental Quality shall have sole
jurisdiction to regulate the transportation, discharge or release of
deleterious substances or hazardous or sol id waste or other
pollutants from rolling stock and rail facilities. The Depar tment
of Environmental Quality shall not have any jurisdiction with
respect to pipeline transportation of carbon dioxide.
7. The Department of Enviro nmental Quality shall have sole
environmental jurisdi ction for point and nonpoint source discharges
of pollutants and storm water to waters of the state fro m:
a. refineries, petrochemical manufacturing plants and
natural gas liquid extraction plants,
b. manufacturing of oil and gas related equipment and
products,
c. bulk terminals, aboveground and underground storage
tanks not subject to the jurisdiction of t he
Commission pursuant to this subsect ion, and
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d. other facilities, activities and sources not subje ct
to the jurisdiction of the Corporation Commission or
Oklahoma Department of Agriculture , Food, and Forestry
as specified by this section.
8. The Department of Environmental Quality shall have sol e
environmental jurisdiction to regulate air emissions from all
facilities and sources subject to operating permi t requirements
under Title V of the Federal federal Clean Air Act as amended.
B. The Corporation Co mmission and incorporated cities and t owns
shall have exclusive jurisdiction ov er permit fees for the drilling
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 public
safety impact and resu lting from activities within its jurisdiction,
the Corporation Commission m ay take whatever action is necessary,
without notice and hearing, including without limi tation the
issuance or execution of admin istrative agreements by the Oil and
Gas Conservation Divis ion of the Corporation Commission, to promptly
respond to the emergency.
SECTION 2. AMENDATORY 27A O.S. 2021, Section 1 -3-101, as
last amended by Section 2, Chapter 164, O.S.L. 2023 (27A O.S. Supp.
2023, Section 1-3-101), is amended to read as follows:
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Section 1-3-101. A. The provisions of this section specify the
jurisdictional areas of responsibility for each state environmental
agency and state agencies with limited environmental responsibility.
The jurisdictional areas of environmental responsibility specified
in this section shall be in addition to those otherwise provided by
law and assigned to the specific state environmental agency;
provided that any rule, interagency agreement or executive order
enacted or entered into prior to the effective date of this section
July 1, 1993, which conflicts with the assignment of jurisdictio nal
environmental responsibilities specified by thi s section is hereby
superseded. The provisions of this subsection shall not nullify any
financial obligation arising from services rendered pursuant to any
interagency agreement or executive order entered into prior to July
1, 1993, nor nullify any obligations or agreements with private
persons or parties entered into with any state environme ntal agency
before July 1, 1993.
B. Department of Environmental Quality. The Department of
Environmental Quality s hall have the following jurisdictional areas
of environmental responsibility:
1. All point source discharges of pollutants and storm wate r to
waters of the state which originate from municipal, industrial,
commercial, mining, transportation and utilities, construction,
trade, real estate and finance, services, public administration,
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manufacturing and other sources, facilities and activities , except
as provided in subsections D and E of this section;
2. All nonpoint source discharges and pollution except a s
provided in subsections D, E and F of this sectio n;
3. Technical lead agency for poin t source, nonpoint source and
storm water pollution control programs funded under Section 106 of
the federal Clean Water Act, for areas within the Department’s
jurisdiction as provided in this subsection;
4. Surface water and groundwater quality and prote ction and
water quality certifications;
5. Waterworks and wastewater works operator certification;
6. Public and private water supplies;
7. Underground injection con trol pursuant to the federal Safe
Drinking Water Act and 40 CFR Parts 144 through 148, e xcept for:
a. Class II injection wells,
b. Class V injection wells utilized in the remediation of
groundwater associated with underground or aboveground
storage tanks regulated by the Corporation Commission,
c. those wells used for the recovery, injection or
disposal of mineral brines as defined in the Oklahoma
Brine Development Act regulated by the Commission, and
d. any aspect of any a Class VI CO2 sequestration
facility including any associated Class VI CO2
injection well, wells over which the Commission is
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given jurisdiction pur suant to the Oklahoma Carbon
Capture and Geologic Sequestration Act;
8. Notwithstanding any othe r provision in this section or other
environmental jurisdiction statute, sole and exclusive jurisdiction
for air quality under the federal Clean Air Act and ap plicable state
law, except for indoor air quality and asbestos as regulated for
worker safety by the federal Occupational Safety and Health Act of
1970 and by Chapter 11 of Title 40 of the Oklahoma Statutes the
Oklahoma Asbestos Cont rol Act;
9. Hazardous waste and solid waste including industrial,
commercial and municipal waste;
10. Superfund responsibilities of the state under the
Comprehensive Environmental Response, Compensation, and Liability
Act of 1980 and amendments thereto, except the planning requirements
of Title III of the Superfund Amendment Amendments and
Reauthorization Act of 1986;
11. Radioactive waste and all regulatory activities for the use
of atomic energy and sources of radiation except for electronic
products used for diagnosis by diagn ostic X-ray x-ray facilities and
electronic products used for bomb detection by public safety bomb
squads within law enforcement agencies of this state or within law
enforcement agencies of any political subdivision of this s tate;
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12. Water, waste, and wastewater treatment systems including,
but not limited to, septic tanks or other public or private waste
disposal systems;
13. Emergency response as specified by law;
14. Environmental laboratory services and laboratory
certification;
15. Hazardous substances other than branding, package and
labeling requirements;
16. Freshwater wellhead protection;
17. Groundwater protection for activities subject t o the
jurisdictional areas of environmental responsibility of the
Department;
18. Utilization and enforcement of Oklahoma Water Quality
Standards and implemen tation documents;
19. Environmental regulation of any entity or activity, and the
prevention, control and abatement of any pollution, not subject to
the specific statutor y authority of another state environm ental
agency;
20. Development and mainten ance of a computerized information
system relating to water quality pursuant to Section 1-4-107 of this
title;
21. Development and promulgation of Oklahoma Water Quality
Standards, their accompanying use support assessment protocols,
anti-degradation policies generally affecting Oklahoma Water Quality
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Standards application and implementation including but not limited
to mixing zones, low flows and variances or any modification or
change thereof pursuant to Section 1085.30 of Title 82 of the
Oklahoma Statutes, and the Water Quality Standards Implementation
Plan pursuant to Section 1-1-202 of this title for its
jurisdictional area o f environmental responsibility; and
22. Development and utilization of po licies and requirements
necessary for the implementation of Oklahoma Groundwate r Quality
Standards to the extent that the implementation of such standards is
within the scope of the Department’s jurisdiction including but not
limited to the establishment of points of compliance when warranted .
C. Oklahoma Water Resources Board. The Oklahoma Water
Resources Board shall have the following jurisdictional areas of
environmental respon sibility:
1. Water quantity including, but not limited to, water rights ,
surface water and underground water, planning, and interstate stream
compacts;
2. Weather modification;
3. Dam safety;
4. Flood plain management;
5. State water/wastewater loans and grants revolving fund and
other related financial aid programs;
6. Administration of the federal Clean Water State Revolving
Fund Program program including, but not limited to, making
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application for and receiving capitalization grant awards,
wastewater prioritization for funding, technical project reviews,
environmental review process processing, and financial review and
administration;
7. Water well drillers/ pump installers licensing;
8. Technical lead agency for clean lakes eligible for funding
under Section 314 of the federal Clean Water Act Lakes Program or
other applicable sections of the federal Clean Water Act or other
subsequent state and federal clean lakes progra ms; administration of
a state program for assessing, monitoring, studying and restoring
Oklahoma lakes with admi nistration to include, but not be limited
to, receipt and expenditure of funds from federal, state and private
sources for clean lakes and implementation of a volunteer monitoring
program to assess and monitor state water resources, provided such
funds from federal Clean Water Act sources are administered and
disbursed by the Office of the Secretary of Environment;
9. Groundwater protection for activiti es subject to the
jurisdictional areas of environmental responsibility of the Board;
10. Development and promulgation of a Water Quality Standards
Implementation Plan pursuant to Section 1-1-202 of this title for
its jurisdictional area of en vironmental responsibility;
11. Development of classifications and identification of
permitted uses of groundwater, in recognized water rights, and
associated groundwater recharge areas;
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12. Establishment and implementation of a statewide beneficial
use monitoring program for waters of the state in coordination with
the other state environmental agencies; and
13. Coordination with other sta te environmental agencies and
other public entities of water resource investigations conducted by
the federal United States Geological Survey for water quality and
quantity monitoring in the state.
D. Oklahoma Department of Agriculture, Food, and Forestry.
1. The Oklahoma Department of Agriculture, Food, an d Forestry
shall have the following jurisdictional areas of environmental
responsibility except as provided in paragraph 2 of this subsection:
a. point source discharges and non point source runoff
from agricultural crop production, agricultural
services, livestock production, silviculture, feed
yards, livestock markets and animal waste,
b. pesticide control,
c. forestry and nurseries,
d. fertilizer,
e. facilities which store grain, feed, seed, fertilizer
and agricultural chemicals,
f. dairy waste and wastew ater associated with milk
production facilities,
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g. groundwater protection for activities subject to the
jurisdictional areas of environmental responsibility
of the Department,
h. utilization and enforcement of Oklahoma Water Quality
Standards and implemen tation documents,
i. development and promul gation of a Water Quality
Standards Implementation Plan pursuant to Section 1-1-
202 of this title for its jurisdic tional areas of
environmental responsibility, and
j. storm water discharges for activities subject to the
jurisdictional areas of environmental responsibility
of the Department.
2. In addition to the jurisdictional areas of environmental
responsibility specified in subsection B of this section, the
Department of Environmental Quality shall have environ mental
jurisdiction over:
a. (1) commercial manufacturers of fertilizers, grain
and feed products, and chemicals, and over
manufacturing of food and kindred products,
tobacco, paper, lumber, wood, textile mill and
other agricultural products,
(2) slaughterhouses, but not including feedlots at
these facilities, and
(3) aquaculture and fish hatcheries,
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including, but not limited to, discharges of
pollutants and storm water to waters of the state,
surface impoundments and land application of wastes
and sludge, and other pollution originating at these
facilities, and
b. facilities which store grain, feed, seed, fertilizer,
and agricultural chemicals that are require d by
federal NPDES National Pollutant Discharg e Elimination
System (NPDES) regulations to obtain a permit for
storm water discharges shall only be subject to the
jurisdiction of the Department of Environmental
Quality with respect to such storm water discharges.
E. Corporation Commission.
1. The Corporation Commission is hereby ve sted with exclusive
jurisdiction, power and authority, and it shall be its du ty to
promulgate and enforce rules, and is sue and enforce orders governing
and regulating:
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,
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d. the exploration, drilling, development, production and
operation of wells used in connection with the
recovery, injection or disposal of mineral brines,
e. reclaiming facilities only for the processing of salt
water, crude oil, natural gas condensate and tank
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. underground injection control pursuant to the federal
Safe Drinking Water Act and 40 CFR Parts 144 through
148 of:
(1) Class II injection wells,
(2) Class V injection wells utilized in the
remediation of groundwater associated wit h
underground or aboveground storage tanks
regulated by the Commission,
(3) those wells used for the recove ry, injection or
disposal of mineral brines as defined in the
Oklahoma Brine Development Act, and
(4) any aspect of any a Class VI CO2 sequestration
facility including any associated Class VI CO2
injection well, wells over which the Commission
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is given jurisdiction pursuant to the Oklahoma
Carbon Capture and Geologic Sequestration Act.
Any substance that the United States Environmental
Protection Agency allows to be injected i nto 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 Environmental Quality with regard to
point source discharges,
h. the construction and operation of pipelines and
associated rights-of-way, equipment, facilities or
buildings used in the tra nsportation of oil, gas,
petroleum, petroleum products, anhydrous ammonia or
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 paragraph,
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(4) mineral brine processing plant, and
(5) petrochemical manufacturing plant,
i. the handling, transportation, storage and disposition
of saltwater, mineral brines, waste oil and other
deleterious substances produced from or obtained or
used in connection with the drilling, development,
producing and operating of oil and gas wells, at:
(1) any facility or activity specifically listed in
paragraphs 1 this paragraph and paragraph 2 of
this subsection as being subject to the
jurisdiction of the Commission, and
(2) other oil and gas extracti on facilities and
activities,
j. spills of deleterious substances associated with
facilities and activities specified in paragraph 1 of
this subsection paragraph or associated with other oil
and gas extraction facilities and activities,
k. subsurface storage of oil, natural gas and liquefied
petroleum gas in geologic strata,
l. groundwater protection for activ ities subject to the
jurisdictional areas of environmental responsibility
of the Commission,
m. utilization and enforcement of Oklahoma Water Quality
Standards and implementation documents, and
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n. development and promulgation of a Water Quality
Standards Implementation Plan pursuant to Section 1-1-
202 of this title for its jurisdictional areas of
environmental responsibility.
2. The exclusive jurisdiction, power and authority of the
Commission shall also extend to the construction, operation,
maintenance, site remediation, closure and abandonment of the
facilities and activities described in paragraph 1 of this
subsection.
3. When a deleterious substance from a Commission-regulated
facility or activity enters a point source discharge 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 facilities or activities
insofar as Department-regulated facilities and act ivities are
concerned.
4. The Commission and the Department of Environmental Quality
are hereby authorized to obt ain authorization from the United States
Environmental Protection Agency to administer, within their
respective jurisdictions, any and all programs regulating oil and
gas discharges into the waters of this state. For purposes of the
federal Clean Water Act, any facility or activity which is subject
to the jurisdiction of the Commission pursuant to paragraph 1 of
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this subsection and any other oil and gas extr action facility or
activity which requires a permit for the discharge of a pollutant or
storm water to waters of t he United States shall be subject to the
direct jurisdiction and permitting authority of the Oklahoma agency
having received delegation of this program from the United States
Environmental Protection Agency.
5. The Commission shall have jurisdiction over:
a. underground storage tanks that contain antifreeze,
motor oil, motor fuel, gasoline, kerosene, diesel, or
aviation fuel and that are not located at refin eries
or at the upstream or intermediate shipment points of
pipeline operations including, but not limited to,
tanks from which these materials are dispensed into
vehicles, or tanks used in wholesale or bulk
distribution activities, as well as leaks from pumps,
hoses, dispensers, and other ancillary 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 be regulated by the
Department of Environmental Quality,
b. aboveground storage tanks that contain antifreeze,
motor oil, motor fuel, gasoline, kerosene, diesel, or
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aviation fuel and that are not located at refin eries
or at the upstream or intermediate shipment points of
pipeline operations including, but not limited to,
tanks from which these materials are dispensed into
vehicles, or tanks used in wholesale or bulk
distribution activities, as well as leaks from p umps,
hoses, dispensers, and other ancillary 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 be regulated by the
Department of Environmental Quality, and
c. the Petroleum Storage Tank Release Environmental
Cleanup Indemnity Fund, the Oklahoma Petroleum Storage
Tank Release Indemnity Program, and the Oklahoma
Leaking Underground Storage Tank Trust Fund.
6. The Department of Environmental Quality shall have sole
jurisdiction to regulate the transportation, discharge or release of
deleterious substances or solid or hazar dous 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.
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7. The Department of Environmental Quality shall hav e sole
environmental jurisdiction 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,
b. manufacturing of equipment and products related to oil
and gas,
c. bulk terminals, aboveground and underground storage
tanks not subject to the jurisdiction of the
Commission pursuant to this subsection, and
d. other facilities, activities and sources not subject
to the jurisdiction of the Commission or the Oklahoma
Department of Agriculture, Food, and Forestry as
specified by this section.
8. The Department of Environme ntal Quality shall have sole
environmental jurisdiction to regulate air emissions from all
facilities and sources subject to operating permit requiremen ts
under Title V of the federal Clean Air Act as amended.
F. Oklahoma Conservation Commission. The Oklahoma Conservation
Commission shall have the following jurisdictional areas of
environmental responsibility:
1. Soil conservation, erosion control and nonpoint source
management except as otherwise provided by law;
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2. Monitoring, evaluation and assess ment of waters to determine
the condition of streams and rivers being impacted by nonpoint
source pollution. In carrying out this area of responsibility, the
Oklahoma Conservation Commission shall serve as the technical lead
agency for nonpoint source cat egories as defined in Section 319 of
the federal Clean Water Act or other subsequent federal or state
nonpoint source programs, except for activities related to
industrial and municipal storm water or as otherwise provided by
state law;
3. Wetlands strategy;
4. Abandoned mine reclamation;
5. Cost-share program for land use activities;
6. Assessment and conservation p lan development and
implementation in watersheds of clean lakes, as specified by law;
7. Complaint data management;
8. Coordination of environmental and natural resources
education;
9. Federal upstream flood control program;
10. Groundwater protection for activities subject to the
jurisdictional areas of environmental responsibility of the
Commission;
11. Development and promulgation of a Water Quality Standards
Implementation Plan pursuant to Section 1-1-202 of this title for
its jurisdictional areas of environmental responsibility;
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12. Utilization of Oklahoma Water Quality Standards and
Implementation implementation documents; and
13. Verification and certification of carbon sequestration
pursuant to the Oklahoma Carbon Sequestration Enhancement Act . This
responsibility shall not be superseded by the Oklahoma Carbon
Capture and Geologic Sequestration Act.
G. Department of Mines. The Department of Mines shall have the
following jurisdictional areas of environmental responsibility:
1. Mining regulation;
2. Mining reclamation of active mines;
3. Groundwater protection for activities subject to the
jurisdictional areas of environmental responsibility of the
Commission; and
4. Development and promulgation of a Water Quality Standards
Implementation Plan pursuant t o Section 1-1-202 of this title for
its jurisdictional areas of responsibility.
H. Department of Wildlife Conservation. The Department of
Wildlife Conservation shall have the following jurisdictional areas
of environmental responsibilities:
1. Investigating wildlife kills;
2. Wildlife protection and seeking wildlife damage claims; and
3. Development and promulgation of a Water Quality Standards
Implementation Plan pursuant to Section 1-1-202 of this title for
its jurisdictional areas of environmental r esponsibility.
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I. Department of Public Safety. The Department of Public
Safety shall have the following jurisdictional areas of
environmental responsibilities:
1. Hazardous waste, substances and material transportation
inspections as authorized by the Oklahoma Motor Carrier Safety and
Hazardous Materials Transportation Act; and
2. Inspection and audit activities of hazardous waste and
materials carriers and handlers as authorized by the Oklahoma Motor
Carrier Safety and Hazardous Materials Transportation Act.
J. Department of Labor. The Department of Labor shall have the
following jurisdictional areas of environmental responsibility:
1. Regulation of asbestos in the workplace purs uant to Chapter
11 of Title 40 of the Oklahoma Statutes the Oklahoma Asbestos
Control Act;
2. Asbestos monitoring in public and private buildings; and
3. Indoor air quality as regulated under the authority of the
Oklahoma Occupational Health and Safety Standards Act, except for
those indoor air quality issues specifically authorized to be
regulated by another agency.
Such programs shall be a function of the Department’s
occupational safety and health jurisdiction.
K. Oklahoma Department of Emergency Management. The Oklahoma
Department of Emergency Management shall have the following
jurisdictional areas of environmental responsibilities:
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1. Coordination of all emergency resources and activities
relating to threats to citizens’ lives and property pursuant to the
Oklahoma Emergency Resources Management Act of 1967;
2. Administer and enforce the planning requirements of Title
III of the Superfund Amendments and Reauthorization Act of 1986 and
develop such other emergency operations plans that will enable the
state to prepare for, respond to, recover from and mitigate
potential environmental emergencies and disasters pursuant to the
Oklahoma Hazardous Materials Planning and Notification Act;
3. Administer and conduct periodic exercises of emergency
operations plans provided for in this subsection pursuant to the
Oklahoma Emergency Resources Management Act of 1967;
4. Administer and facilitate hazardous materials training for
state and local emergency planners and first responders pursuant to
the Oklahoma Emergency Resources Management Act of 1967; and
5. Maintain a computerized emergency information system
allowing state and local access to inform ation regarding hazardous
materials’ location, quantity and potential threat.
SECTION 3. AMENDATORY 27A O.S. 202 1, Section 3-5-102, is
amended to read as follows:
Section 3-5-102. As used in the Oklahoma Carbon Capture and
Geologic Sequestration Act:
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1. “Agency” means the Corporation Commission or th e Department
of Environmental Quality, as the case may be and as described in
Section 3-5-103 of this title;
2. “Anthropogenic carbon dioxide” or “man-made carbon dioxide”
means the carbon dioxide compound manufactured, mechanically formed
or otherwise caused to occur, as a result of either:
a. a chemical process perfo rmed by or involving efforts
of a person, or
b. separation of carbon dioxide from natural gas.
The term shall not i nclude carbon dioxide that is naturally pr esent
in underground locations;
3. 2. “Approved reservoir” means a reservoir that is determined
by the Agency with jurisdiction Corporation Commission to be
suitable for the receipt, storage and/or sequestration of injected
carbon dioxide therein;
4. 3. “Carbon dioxide” or “CO2” means an inorganic compound
containing one carbon atom and two oxygen ato ms, and exists as a gas
at standard temperature and pressur e. Carbon dioxide is an inert,
stable, colorless, odorl ess, nontoxic, incombustible, inorganic ga s
that is dissolvable in water and is naturally present, such as in
underground locations and in th e atmosphere as a trace gas;
5. 4. “Carbon sequestration” means long-term or short-term
underground storage or sequestration of anthropogenic carbon dioxide
in one or more reservoirs;
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6. 5. “CO2 injection well” means an artificial excavation or
opening in the ground made by digging, boring, drilling, jetting,
driving, or another method and is used to inject or transm it
anthropogenic carbon dioxide into one o r more reservoirs;
7. 6. “CO2 capture and compression equipment” means the
equipment, separation u nits, processing units, processing pla nts,
pipe, buildings, pum ps, compressors, meters, facilities, motors,
fixtures, materials, and machinery, and all other improvements used
in the operation of any of them, and propert y, real or personal,
intangible or tangible, either attributable to or relating to, or
located thereon, used for the purpose of:
a. capturing carbon dioxide from a source that produces
anthropogenic carbon dioxide, and/ or
b. compressing or otherwise increasing the pressure of
anthropogenic carbon dioxide;
8. 7. “CO2 pipeline” means any pipeline, compre ssors, pumps,
meters, facilities, valves, fittings, right -of-way markers, cathodic
protection ground beds, anodes, rectifiers, and any other cathodic
protection devices, and other associated eq uipment, appurtenances
and fixtures located on, attributabl e to or used in connec tion with
the same, and used for t he purpose of transporting carbon dioxide
for carbon sequestration in this s tate or another state, excluding:
a. CO2 capture and compression equipment at the source of
the carbon dioxide, and
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b. pipelines that are part of a CO2 sequestration
facility;
9. 8. “CO2 sequestration facility ” means the approved
reservoir(s), and all associated underground equipment and
pipelines, all associated surfa ce buildings and equipment, and all
associated CO2 injection wells, utilized for car bon sequestration in
a defined geographic boundary established by the Agency Commission,
excluding any:
a. CO2 capture and compression equipment at the source of
the carbon dioxide, and
b. CO2 pipeline transporting carbon dioxide to th e
facility from a source located outside the geographic
boundaries of the surface o f the facility;
10. 9. “CO2 trunkline” means a CO2 pipeline that both exc eeds
seventy-five (75) miles in dist ance and has a minimum pipe outside
diameter of at least tw elve (12) inches;
11. 10. “Commission” means the Corporation Commission as
established by Section 15 of Article 9 IX of the Oklahoma
Constitution;
12. 11. “Common source of supply ” shall have the same meaning
as in Section 86.1 of Ti tle 52 of the Oklahoma Statutes;
13. 12. “Department” means the Department of Environmental
Quality as established by Section 2 -3-101 et seq. of this title;
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14. 13. “Enhanced oil or gas recovery” means the increased
recovery of hydrocarbons, including oil and gas, from a com mon
source of supply achieved by artificial means or by the application
of energy extrinsic to the co mmon source of supply, such as
pressuring, cycling, pressure maintenance or injection of a
substance or form of energy, such as inject ion of water and/or
carbon dioxide, inclu ding immiscible and miscible floods; provided
that enhanced oil or gas recovery shall not include injection of a
substance or form of energy for the sole purpose of either:
a. aiding in the lifting of fluids in the well, or
b. stimulation of the reservoir at or near the well by
mechanical, chemical, thermal or explosive means;
15. 14. “Facility operator” means any person authorized by the
Agency Commission to operate a CO 2 sequestration facility;
16. 15. “Facility owner” means the person who owns the CO 2
sequestration facility;
17. 16. “Gas” shall have the same meaning as in Section 86.1 of
Title 52 of the Oklahoma Statutes;
18. 17. “Governmental entity” means any department, commission,
authority, council, board, bureau, committee, l egislative body,
agency, beneficial public trust, or oth er establishment of the
executive, legislative or judicial branch of the United States, the
State of Oklahoma, any other state in the United States, the
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District of Columbia, the Territories of the United States, and any
similar entity of any foreign country;
19. 18. “Oil” shall have the same meaning as in Section 86.1 of
Title 52 of the Oklahoma Statutes;
20. 19. “Person” means any individual, proprietorship,
association, firm, corporation, company, partnership, limited
partnership, limited liability com pany, joint venture, joint stock
company, syndicate, trust, organization, committee, club,
governmental entity, or other type of legal entity, or any group or
combination thereof either acting in concert or as a unit;
21. 20. “Private operator” means any person that is either a
facility operator or an operator of a CO2 pipeline, but that is
neither a public uti lity nor a common carrier as such terms are
defined by the Oklahoma Statutes; and
22. 21. “Reservoir” means any portion of a separate and
distinct geologic or subsurface sedimentary stratum, f ormation,
aquifer, cavity or void, whether naturally occurring or artificially
created, including an oil or gas formation, saline form ation, or
coal seam.
SECTION 4. AMENDATORY 27A O.S. 2021, Section 3 -5-103, is
amended to read as follows:
Section 3-5-103. A. The Corporation Commission shall be the
“Agency” for, and shall have exclusive jurisdiction over Class VI CO2
sequestration facilities involving , and injection of Class VI CO2 for
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carbon sequestration into , oil reservoirs, gas reservoirs, coal -bed
methane reservoirs, and mineral brine reservoirs. The Commission
shall have such jurisdiction rega rdless of whether such CO 2
sequestration facility or other injection of carbon dioxide involves
enhanced oil or gas recovery.
B. The Department of Environmental Quality shall be the
“Agency” for, and shall have exclusive jurisdi ction over CO2
sequestration facilities involving, and inje ction of CO2 for carbon
sequestration into all reservoirs other than those described in
subsection A of this section, which shall include, but not be
limited to, deep saline formations, unmineable coal seams where
methane is not produced, basalt reservoirs, salt domes, and no n-
mineral bearing shales.
SECTION 5. AMENDATORY 27A O.S. 2021, Section 3 -5-104, as
amended by Section 1, C hapter 353, O.S.L. 2023 (27A O.S. Supp. 2023,
Section 3-5-104), is amended to read as follows:
Section 3-5-104. A. The Corporation Commis sion and the
Department of Environmental Quality shall e xecute a Memorandum of
Understanding to address areas in which the implementation of the
Oklahoma Carbon Capture and Geologic Sequestration Act will require
interagency cooperation or i nteraction, including procedur es for
directing applicants thro ugh the application process.
B. The operator of a CO2 sequestration facility shall obtain a
permit pursuant to the Oklahoma Carbon Capture and Geolo gic
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Sequestration Act from the Agency having jurisdiction Commission
prior to the operation of a CO2 sequestration facility, after the
Operator provides notice of the application for such permit pursuant
to subsection D of this section, and the Agency Commission has a
hearing thereon upon re quest; provided that no permit pursuant to
the Oklahoma Carbon Capture and Geologic Sequestration Act is
required if the facility operator obtains permission, by permit o r
order, by the Agency Commission pursuant to the rules and
regulations of the state’s federally approved Und erground Injection
Control Program program and such permission authorizes carbon
sequestration or injection of carbon dioxide underground and
incorporates any addi tional requirements adopted pursuant to
subsection C of this section.
C. To the extent not already a uthorized by laws governing the
state’s federally approved Underground Injection Control Program
program, the Agency having jurisdiction Commission may issue and
enforce such orders, and may adopt, modify, repeal and enforce such
emergency or permanent rules, including establishmen t of appropriate
and sufficient fees to cover the cost of the program, financial
sureties or bonds, and monitoring at CO2 sequestration facilities,
as may be necessary, for the purpose of regulating the drill ing of
CO2 injection wells related to a CO 2 sequestration facility, the
injection and withdrawal of carbon dioxide, the operation of the CO2
sequestration facility, CO2 injection well plugging and abandonment,
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removal of surface buildin gs and equipment of t he CO2 sequestration
facility and for any other purpose necessary to im plement the
provisions of the Oklahoma Carbon Capture and Geologic Sequestration
Act.
D. The applicant for any permit to be issued pursuant to the
Oklahoma Carbon Capture and Geologic Sequestration Act shall give
all surface owners and mineral owners, including working inter est
and royalty owners, of the land to be encompassed within the defined
geographic boundary of the CO2 sequestration facility as established
by the Agency Commission, and whose addresses are known or coul d be
known through the exercise of due diligence, at least fifteen (15)
thirty (30) days’ notice of the hearing by mail, return receipt
requested. The applicant shall also give notice by one publication
two publications, with one publishing at least fifteen (15) thirty
(30) days prior to the hearing and again at least fifteen (15) days
prior to the hearing, in some newspaper of general circulation
published in Oklahoma C ounty, and by one publication two
publications, with one publishing at least fifteen (15) thirty (30)
days prior to the date of the hearing and again at least fifteen
(15) days prior to the hearing, in some newspaper published in the
county, or in each county, if there be is more than one, in which
the defined geographic boundary of the CO2 sequestration facility,
as established by the Agency Commission, is situated. The applicant
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shall file proof of publication a nd an affidavit of mailing with the
Agency Commission prior to the hearing.
E. In addition to all other powers and duties pr escribed in the
Oklahoma Carbon Capture and Geolo gic Sequestration Act or otherwise
by law, and unless otherwise specifically set forth in the Oklahoma
Carbon Capture and Geologic Sequestration Act, the Agency having
jurisdiction Commission shall have the authority to perf orm any and
all acts necessary to carry out the purposes and requirements of the
federal Safe Drinking Water Act, as amended, relating to this
state’s participation in the federal Underground Injection Control
Program program established under that act with respec t to the
storage and/or sequestration of carbon dioxide.
F. The Corporation Commission and Department of Environmental
Quality, which are required to comply with the federal Safe Drinking
Water Act, 42 U.S.C. 300f et seq., as amended, shall evaluate the
regulatory and statutory framework that governs the agency and
identify and report any areas in which modifications may be needed
to the Secretary of Energy and Environment to provide for the
development of underground injection control Class VI wells. The
agencies reporting under this subsection shall consult the Secretary
and work in conjunction with the Office of the Secretary of Energy
and Environment to ensure timely analysis. Identified areas and
recommended modifications to the regulatory and statut ory framework
of the agency shall be submitted in a report to the Governor,
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Secretary of Energy and Environment, President Pro Tempore of the
Senate, and the Speaker of the House of Representatives not later
than August 1, 2023.
SECTION 6. AMENDATORY 27A O.S. 2021, Section 3 -5-105, is
amended to read as follows:
Section 3-5-105. A. Unless otherwise expressly provided b y a
contract, bill of sale, deed, mortgage, deed of trust, or other
legally binding document or by other law, carbon dioxide injected
into a CO2 sequestration facility is considered to be the personal
property of the facility own er.
B. Absent a final judgment of willful abandonment rend ered by a
court of competent jurisdiction, or a regulatory determination of
willful abandonment, carbon dioxide injected into a CO 2 sequestration
facility is not considered to be the property of th e owner of the
surface or mineral estate in the land encompassing the geographi c
boundary of the CO 2 sequestration facility, or any person claiming
under the owner of the surface or mineral estate.
C. The facility operator, with permission of the facility
owner, may produce, take, extract or reduce to possession any carbon
dioxide injected, stored or seq uestered in a CO2 sequestration
facility. In the event an operator informs the Commission that it
intends to conduct enhanced oil or gas recovery operatio ns on a
compulsory unit formed pursuant to Section 287.1 et seq. of Title 52
of the Oklahoma statutes Statutes, or its predecessor unitization
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act, then during the time that such unit is in operation, such
operator shall be relieved of any obligation to ei ther:
1. Plug and abandon any injection or production well within
such unit that is intended to be used in such enhanced oil or gas
recovery operations, unless requ ired by the Corporation Commission
pursuant to Section 53 of Title 17 of the Oklahoma Statutes; or
2. Remove any surface equipment that is associated with any
such well and intended to be used in such enhanced oil or gas
recovery operations, or both.
D. The Agency having jurisdiction over the injection of carbon
dioxide under this act Commission shall also have jurisdiction over
a facility operator th at produces, takes, extracts or reduces to
possession any injec ted, stored or sequestered carbon dioxide in a
CO2 sequestration facility.
SECTION 7. AMENDATORY 27A O.S. 2021, Section 3-5-106, is
amended to read as follows:
Section 3-5-106. A. Nothing in this act the Oklahoma Carbon
Capture and Geologic Sequestration Act shall supersede the
provisions of the Oklahoma Carbon Sequestration Enhancement Act ,
Section 3-4-101 et seq. of Title 27A of the Oklahoma Statutes this
title.
B. Nothing in this act the Oklahoma Carbon Capture and Geologic
Sequestration Act shall alter the incidents of ownership, or other
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rights, of the owners of the mineral estate or adversely affect
enhanced oil or gas recovery ef forts in the state.
C. Any right granted t o a facility operator pursuant to this
act the Oklahoma Carbon Capture and Geologic Sequestration Act shall
be without prejudice to the rights of any s urface owner or mineral
owner, including working interest and royalty owner owners, of the
land encompassed within the defined geographic boundary of the CO 2
sequestration facility, as established by the Agency Corporation
Commission, to drill or bore through the app roved reservoir in a
manner as shall comply with or ders, rules and regulations issued for
the purpose of protecting the approved reservoir against the escape
of CO2. For purposes of this subsection, the Agency wit h
jurisdiction under other state law for regulating the well being
drilled or bored through the approved reservoir is the Age ncy having
jurisdiction to adopt orders and rules for such well in order to
protect the CO 2 sequestration facility, regardless of which Agency
has jurisdiction to permit the CO2 sequestration facility pursuant to
Section 3 of this act. If the Agency with jurisdiction u nder other
state law for regulating the well being drilled or bored th rough the
approved reservoir is not the Agency that has jurisdiction to permit
the CO2 sequestration facilit y pursuant to Section 3 of this act,
then the former shall promp tly notify the latter in writing of the
receipt of an application for the drilling or boring of such a well
and shall consider al l timely submitted comments of the latter in
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approving, denying, or setting conditions for the well being drilled
or bored. The additional c ost of complying with such orders, rules
or regulations in order to pr otect the CO2 sequestration facility
shall be borne by the facility operator.
D. Nothing in this act the Oklahoma Carbon Capture and Geologic
Sequestration Act shall grant a private operator the right of
condemnation or eminent domain for any purpose.
SECTION 8. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 3-5-107 of Title 27A, unless
there is created a dup lication in numbering, reads as follows:
A. Subject to the limitations of this section, the Corporation
Commission shall have jurisdiction to effectuate and enforce the
provisions of this section. The Co mmission shall promulgate rules
pursuant to the requirements of this section.
B. The provisions of this section shall apply only to the
permanent sequestration of carbon dioxide in a geologic storage
facility.
C. 1. A party desiring to unitize pore space for the purpose
of geologic sequestration of carbon dioxide shall file with th e
Corporation Commission an application setting forth a description of
the proposed unit area. The application shall include:
a. a map or plat attachment of the proposed unit a rea,
b. the name and address of each surface ow ner and mineral
owner, including working interest and royalty owners,
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of the land to be encompassed within the defined
geographic boundary of t he proposed carbon
sequestration facility ,
c. the name and address of each surface owner and mineral
owner, including working interest and royalt y owners,
of the land immediately adjacent to the geographic
boundary of the proposed carbon sequestration
facility, and
d. a recommended plan of unitiz ation applicable to the
proposed unit area.
2. Each person named within the application as prescribed
pursuant to paragraph 1 of this subsectio n shall be a respondent to
the application.
D. 1. Notice of filing for the creation o f a unit for carbon
sequestration shall be mailed to each respondent to the a pplication
whose address is known, or whose address can be found with
reasonable diligence, not less than thirty ( 30) days prior to the
date set for hearing.
2. Notice of filing and the date of hearing shall be published
once a week for four consecutive weeks beginning thirty (30) days
prior to the date of the hearing by publication in some newspaper o f
general circulation printed in Oklahoma County, and by publication
in some newspaper of general circulat ion in each county in which the
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lands embraced within the application are situated. The Commission
may require additional notice to be given through promulgated rule.
SECTION 9. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Secti on 3-5-108 of Title 27A, unless
there is created a duplicat ion in numbering, reads as follows:
A. A unitization order shall be issued i f the Corporation
Commission finds that :
1. The application meets all statutory and regulatory
requirements for issu ance;
2. The geologic storage facility into which the carbon dioxide
is to be injected is suitable or capable of being made suitable for
storing the carbon dioxide;
3. Both surface water and groundwater can be adequatel y
protected;
4. The injection and geologic storage of carbon dioxide will
not injure oil, gas, or an y other mineral formation in any material
respect, or such injury has been addresse d in an arrangement between
the applicant and the mineral lessee or owner. Provided, however,
such arrangement shall be in written form and submitted to the
Commission prior to approval o f the unit;
5. The applicant has obtained the consent of the owners
representing no less than sixty-three percent (63%) of the ownership
of the pore space, based on the surface acreage of the proposed
geologic storage facility. Provided, such consent shall be in
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written form and submitted to the Com mission prior to approval of
the unit;
6. The applicant has made a fair and reasonable offer to
unitize the nonconsenting pore space owners’ interests; and
7. All pore space owners who did not conse nt to unitize their
interests in order to develop the pore space as a proposed geologic
storage facility but who are or will be s ubject to a unitization
order are or will be equitably compensated for the appurtenant and
reasonable use of th e pore space and surface.
B. To amend a unitization order for the purpose of changing the
size of a geologic storage facility, the storage operator sha ll
demonstrate to the Commission that the operator h as obtained the
consent of the owners representing no less than sixty-three percent
(63%) of the ownership of the pore space based on the surface
acreage of the proposed geologic storage facility as described in
the proposed amended order .
C. An unknown or unlocatable pore space owner is considered to
have consented to unitize the owner’s interest, provided that the
proposed storage operator complied with the notice requirements
described in Section 8 of this act. An unknown or unlocatable pore
space owner is eligible for compensation under paragraph 8 of
subsection A of this sectio n.
D. An offer made to unitize the nonconsenting pore space
owners’ interest shall be considered fair and reasonable under
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paragraph 7 of subsection A of t his section if it is made in a
similar manner as the offer made to the other owners of pore spa ce
in the proposed unit, taking into account any material difference s
in circumstances.
E. A final unitization order entered by the Commission under
this section, unless modified or overturned by a final ord er from a
court, shall be considered final an d conclusive as to all facts,
findings, and conclusions contained in the ord er for all purposes
and as to all parties notified and their heirs, suc cessors, and
assigns.
SECTION 10. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 3-5-109 of Title 27A, unless
there is created a duplication in numbering, rea ds as follows:
A. 1. Not later than fifty (50) years after cessation of
injection into a geologic storage facility for carbo n dioxide, or
following the end of any other time frame establi shed on a site-
specific basis by application to the Corporation Commission, the
Commission shall issue a certificate of complet ion of injection
operations, upon a showing by the current storage operator of all of
the following:
a. the reservoir is reasonably expected to retain
mechanical integrity,
b. the carbon dioxide will reasonably remain emplaced,
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c. the storage facility does not pose an endange rment to
underground sources of drinking water, or to public
health or public safety,
d. the current storage facility oper ator has complied
with all applicable regulatio ns related to post-
injection monitoring and the issuance of the
certificate of completion of injection operations, and
e. the storage facility has been closed in accordance
with all applicable requirement s related to site
closure.
2. Upon issuance of a certificate of completion of injection
operations, ownership of the remaining project including the stored
carbon dioxide shall transfer to the state.
3. Upon issuance of a certificate of complet ion of injection
operations, the storage facility operator, all owners of carbon
dioxide stored in the facility, and all owners otherw ise having any
interest in the stora ge facility, shall be r eleased from any and all
future duties or obli gations relating to the facility and any and
all liability associated with or relate d to that facility which
arises after the issuance of the certificate of complet ion of
injection operations.
B. The release from duties or obligations under paragraph 3 of
subsection A of this section shall not apply to:
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1. A current or former owner or operator of a storage facility
when such duties or obligations arise from that owner or operator’s
noncompliance with applicable underground injection control laws and
regulations prior to issuance of the certi ficate; or
2. Any owner or operator of a storage facility if it is
demonstrated that such owner or operator intentionally and knowingly
concealed or misrepresented material facts related to the mechanica l
integrity of the storage facility or the chemical composition of any
injected carbon dioxide .
C. Continued monitoring of the site , including remediation of
any well leakage, shall become the principal responsibility of the
Commission.
D. The Commission may levy fees for the purpose of implementing
the provisions of this act in a form and schedule to be determined
by the Oil and Gas Conservation Division of the Commission for each
ton of carbon dioxide in jected into a storage facility. At the end
of each fiscal year, the Commission may redetermine the fees
collected based upon the estimated cost of administer ing and
enforcing the provisions of this act for the upcoming year divided
by the tonnage of carbon dioxide expected to be injected during the
upcoming year. The total fee assessed shall be sufficient to assure
a balance in the Class VI Carbon Sequestration Storage Facility
Revolving Fund not to exceed Five Million Dollars ($5,000,000.00)
for any active storage facility within the state at the beginning of
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each fiscal year. Any amount received by the Commission that
exceeds the annual balance required under this subsection shall be
deposited into the fund, but appropriate credits shall be given
against future fees for the storage facility. The Commission shall
promulgate rules regarding the form and manner f or fee amount and
payment method.
SECTION 11. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Sectio n 3-5-110 of Title 27A, unless
there is created a dup lication in numbering, reads as follows:
A. There is hereby created in the State Treasury a revolving
fund for the Corporation Commission to be designated the “Class VI
Carbon Sequestration Storage Facility Revolving Fund”. The fund
shall be a continuing fund, not subject to fiscal year limitations,
and shall consist of all monies received by the Commission from
fines and fees paid to the C ommission pursuant to Sections 9 through
11 of this act. All monies accruing to the credit of the fund are
hereby appropriated and may be budgeted and expended by the
Commission for the purposes provided for in this section.
Expenditures from the fund shall be made upon warran ts issued by the
State Treasurer against claims filed as prescribed by law with the
Director of the Office of Management and Enterprise Services for
approval and payment.
B. If a storage facility at any time deposits more than Five
Million Dollars ($5,000,000.00) to the fund, the fee assessments to
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that storage facility shall cease until such time as funds begin to
be expended for that facility. The State Treasurer shall certif y to
the Commission the dat e on which the balance in the fund for a
storage facility equals or exceeds Five Million Dollars
($5,000,000.00). On and after the first da y of the second month
following the certification, fees shall not be collected from the
facility; provided, fee collection shall resume on receipt of a
certification by the State Treasurer that, based on the expenditures
and commitments to expend monies, the fun d has fallen below Four
Million Dollars ($4,000,000.00) of funds collected from that
facility.
C. Expenditures from the fund ma y be used to:
1. Remediate any issues associated with, arising from, or
related to the site, in cluding remediation of property , of site
infrastructure, and of any mechanical problems associated with the
remaining wells;
2. Fund research and development in connectio n with carbon
sequestration technolog ies and methods;
3. Monitor any remaining surface facilities and wells;
4. Repair any mechanical leaks at the storage facility;
5. Hire outside legal counsel as needed to effectuate the
provisions of this act ;
6. Plug remaining injection wells, except for those wells to be
used as observation wells ; and
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7. Contract for assistance with permit or application review .
D. Not later than November 1 annually, the Commission shall
furnish a report electronically to the Secretary of Energy and
Environment, the President Pro Tempore of the Senate, and the
Speaker of the House of Representatives. The report shall address
the administration of funds, fund balances, expenditures made, and
any other information deemed necess ary by the Commission.
E. Not later than November 1, 2029, and every five (5) years
thereafter, the Commission shall furnish a report electronically to
the President Pro Tempore of the Senate an d the Speaker of the House
of Representatives assess ing the effectiveness of the fund and other
related provisions within this act. The Commission shall provide
such other information as may be requested by the Legislature.
SECTION 12. AMENDATORY 52 O.S. 2021, Section 139, is
amended to read as follows:
Section 139. A. The Corporation Commission is vested with
exclusive jurisdiction, power and authority, and it shall be its
duty, to make and enforce such rules and orders governin g and
regulating the handling, storage and disposition of saltwater,
mineral brines, waste oil and other deleterious substances p roduced
from or obtained or used in connection with t he drilling,
development, producing, and operating of oil and gas wells and brine
wells within this state as are reasonable and necessary for the
purpose of preventing the pollution of the surface and subsurface
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waters in the state, and to otherwise carry out the purpose of this
act Section 139 et seq. of this title .
B. 1. Except as otherwise provided by this subsection, the
Corporation Commission is hereby vested with exclusive jurisdiction,
power and authority, and it shall be its duty to promulgate and
enforce rules, and issue and enforce orders governing and
regulating:
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, prod ucing or
processing for oil and gas on the lease site,
d. the exploration, drilling, deve lopment, production and
operation of wells used in co nnection with the
recovery, injection or disposal of mineral brines,
e. reclaiming facilities only for the processing of salt
water, crude oil, natural gas condensate and tank
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,
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f. injection wells known as Class II wells under the
federal Underground Injection Control Program, and an y
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 Ge ologic Sequestration
Act. Any substance that the United States
Environmental Protection Agency allo ws to be injected
into a Class II well may continue to be so injected,
underground injection control pursuant to the federal
Safe Drinking Water Act and 40 CFR Parts 144 through
148, including:
(1) Class II injection wells,
(2) Class V injection wells utilized in the
remediation of groundwater associated with
underground or abovegrou nd storage tanks
regulated by the Commission,
(3) those wells used for the r ecovery, injection, or
disposal of mineral brines as defined in the
Oklahoma Brine Development Act , and
(4) any aspect of a Class VI CO2 sequestration
facility including associated Class VI CO2
injection wells, over which the Commission is
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given jurisdiction pursuant to the Oklahoma
Carbon Capture and Geologic Sequestration Act ,
g. tank farms for storage of crude oil and petroleum
products which are located outside the boundaries of
the refineries, petrochemical manu facturing plants,
natural gas liquid extraction plants, or other
facilities which are subject to the jurisdiction of
the Department of Environ mental Quality with reg ard to
point source discharges,
h. the construction and operation of pipelines and
associated rights-of-way, equipment, facilities or
buildings used in the transportation of oil, gas,
petroleum, petroleum p roducts, anhydrous ammonia or
mineral brine, or in th e treatment of oil, gas or
mineral brine during the c ourse of transportation but
not including line pipes associated with processing at
or in any:
(1) natural gas liquids extraction plant,
(2) refinery,
(3) reclaiming facility oth er than for those
specified within subparagraph e of this
paragraph,
(4) mineral brine processing pla nt, and
(5) petrochemical manufacturin g plant,
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i. the handling, transportation, storage and disposition
of saltwater, mineral br ines, waste oil and other
deleterious substances prod uced from or obtained or
used in connection with the drilling, development,
producing and operating of oil and gas wells, at:
(1) any facility or activity specifically listed in
paragraphs 1 this paragraph and paragraph 2 of
this subsection as being subject to the
jurisdiction of the Commission, and
(2) other oil and gas extraction facilities and
activities,
j. spills of deleterious substances associated with
facilities and activities specified in paragraph 1 of
this subsection paragraph or associated with other oil
and gas extraction facilities and activitie s, and
k. subsurface storage of oil, natural gas and liquefied
petroleum gas in geologic strata.
2. The exclusive jurisdiction, power and authority of the
Corporation Commissio n shall also extend to the construction,
operation, maintenance, site remediation, closure and abando nment of
the facilities and activit ies described in paragraph 1 of this
subsection.
3. When a deleterious substance from a Comm ission-regulated
facility or activity enters a point source discharge of pollutants
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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 facilities or activities
insofar as Department -regulated facilities and activities are
concerned.
4. For purposes of the Federal federal Clean Water Act, any
facility or activity which is subject to the jurisdiction of the
Corporation Commission pursuant to paragraph 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 direc t
jurisdiction of the United States Environmental Protection Agency
and shall not be required to be permitted by the Department of
Environmental Quality or the Corporation Commission for such
discharge.
5. The Corporation Commis sion shall have jurisdiction over:
a. underground storage tanks that contain antifreeze,
motor oil, motor fuel, gasoline, kerosene, diesel, or
aviation fuel and that are not located at refineries
or at upstream or intermediate shipment points of
pipeline operations, including, but n ot limited to,
tanks from which these materials are dispensed into
vehicles, or tanks used in wholesale or bu lk
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distribution activities, as well as leaks from pumps,
hoses, dispensers, and other ancillary 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 be regulated by the
Department of Environmental Qualit y,
b. aboveground storage tanks that contain antifreeze,
motor oil, motor fuel, gasoline, kerosene, diesel, o r
aviation fuel and that are not lo cated at refineries
or at upstream or intermediate shipment points of
pipeline operations, including, but not limited to,
tanks from which these materials are dispensed into
vehicles, or tanks used in wholesale or bulk
distribution activities, as well as leaks from pumps,
hoses, dispensers, and other ancillary equipment
associated with the tanks, whether above the g round 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 be regulated by the
Department of Environmental Quality, and
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c. the Petroleum Storage Tank Release Environmental
Cleanup Indemnity Fund an d Program and the Oklahoma
Leaking Underground Storage Tank Trust Fund .
6. The Department of Environmental Quality shall have sole
jurisdiction to regulate the transportation, discharge or release of
deleterious substances 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. The Department of Environmental Quality shall have sole
environmental jurisdiction 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,
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 sub section, and
d. other facilities, activities and sou rces not subject
to the jurisdiction of the Corporatio n Commission or
Oklahoma Department of Agriculture , Food, and Forestry
as specified by this section.
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8. The Department of Environmental Quality shall have sole
environmental jurisdiction to regulate air emissions from all
facilities and sources subject to operating permit requirements
under Title V of the Federal federal Clean Air Act as amended.
C. The Corporation Commission shall comply with and en force the
Oklahoma Water Quality Standards.
D. 1. For the purpose of immediately respond ing to emergency
situations having potentially critical environmental or public
safety impact and resulting from activities within its jurisdiction,
the Commission may take whatever necessary ac tion, without notice
and hearing, including the expenditure of monies from the
Corporation Commission Revolving Fund, to promptly respond to the
emergency. Such emergency expenditure shall be made pursuant to the
provisions of The the Oklahoma Central Purchasing Act, upon such
terms and conditions established by the Off ice of Management and
Enterprise Services to accomplish the purposes of this section.
Thereafter, the Commission shall seek reimbursement from the
responsible person, firm or corporation fo r all expenditures made
from the Corporation Commission Revolving Fund. Any monies received
as reimbursement shall be deposited to the credit of the Corporati on
Commission Revolving Fund.
2. The Commission shall not expend from any fund in the State
Treasury, in any fiscal year, for the purposes herein provided, an
amount of money in excess of the total sum specifically authorized
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annually by the Legislature for such purposes. Any monies received
by the Commission through execution on any required surety shall not
be subject to such limitation on expenditure for remedial action.
3. Neither the Commission nor any independent contractor of the
Commission authorized to conduct remedial action und er this section
shall be held liable or responsible for any damages resulting from
non-negligent actions reasonably necessary fo r conducting remedial
work. Nothing in this section shall limit the authority of the
Commission or relieve any person or persons otherwise legally
responsible from any obligation to prevent or remediate pollution.
SECTION 13. This act shall become effective November 1, 2024.
59-2-2602 RD 1/5/2024 3:27:59 PM