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ENGROSSED HOUSE AMENDME NT
TO
ENGROSSED SENATE BILL NO . 1568 By: Rader of the Senate
and
Boles of the House
[ Corporation Commission – jurisdiction – injection
wells – hearing requirements – rule promulgation –
unitization – procedures – certificate of
completion – obligations – fines and fees –
Revolving Fund – cap – report – codification -
effective date ]
AUTHOR: Add the following House Coauthor : Archer
AMENDMENT NO. 1. Page 1, line 11, strike the enacting clause
Passed the House of Representatives the 23rd day of April, 2024.
Presiding Officer of the House of
Representatives
Passed the Senate the ____ day of _______ ___, 2024.
Presiding Officer of the Senate
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ENGROSSED SENATE
BILL NO. 1568 By: Rader of the Senate
and
Boles of the House
[ Corporation Commission – jurisdiction – injection
wells – hearing requirements – rule promulgation –
unitization – procedures – certificate of completion
– obligations – fines and fees – Revolving Fund – cap
– report – codification - effective date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 17 O.S. 2021, 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 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, including seismic
survey wells, stratigraphic t est 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, developm ent, 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. injection wells known as Class II wells under the
federal Underground Injection Control Program program,
and any aspect of any CO2 sequestration facility,
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 co ntinue 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
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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 transpo rtation 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,
(4) mineral brine processing plant, and
(5) petrochemical manufacturing plan t,
i. the handling, transportation, storage and disposition
of saltwater, mineral bri nes, 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 well s, at:
(1) any facility or activity specifically listed in
paragraphs 1 this paragraph and paragraph 2 of
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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 activities, 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 extend to the construction,
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 Commi ssion-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 p oint source discharge of the commingled
pollutants and storm water from the two facilities or activities
insofar as Department -regulated facilities and activities are
concerned.
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4. For purposes of the Federal federal Clean Water Act, any
facility or activity which is subject t o 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 direct
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 Commiss ion shall have jurisdiction over:
a. underground storage tanks that contain antifreeze,
motor oil, motor fuel, gasoline, kerosene, diesel, or
aviation fuel and that are no t located 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 equ ipment
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
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soil, media, or debris shall be reg ulated 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 poin ts 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 le aks from pumps,
hoses, dispensers, and other ancillary equipmen t
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 regulate d by the
Department of Environmental Quality, and
c. the Petroleum Storage Tank Release Environmental
Cleanup Indemnity Fund and Program and the Oklahoma
Leaking Underground Storage Tank Trust Fund.
6. The Department of Environmental Quality shall have so le
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 Depar tment
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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 subs ection, and
d. other facilities, activities and sources not subject
to the jurisdiction of the Corporation Commission or
Oklahoma Department of Agriculture , Food, and Forestry
as specified by this section.
8. The Department of Enviro nmental 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.
B. The Corporation Commission and incorporated cities an d towns
shall have exclusive jurisdiction over permit fees for the drilling
and operation of oil and gas wells.
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C. The Corporation Commission shall comply with and enforc e the
Oklahoma Water Quality Standards.
D. For purposes of imm ediately responding to emergency
situations having potentially critical environmental or public
safety impact and resulting from activities within its jurisdiction,
the Corporation Commission m ay take whatever action is necessary,
without notice and hearin g, including without l imitation the
issuance or execution of administrative agreements by the Oil and
Gas Conservation Division of the Corporation Commission, to promptly
respond to the emergen cy.
SECTION 2. AMENDATORY 27A O.S. 20 21, 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:
Section 1-3-101. A. The provisions of this s ection specify the
jurisdictional areas of responsibility for e ach state environmenta l
agency and state agencies with limited environmental responsibility.
The jurisdictional areas of environmental responsibility specified
in this section shall be in addi tion to those otherwise provided by
law and assigned to the spe cific 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 jurisdictional
environmental respons ibilities specified by this section is hereby
superseded. The provisions of this subsection shall not nullify any
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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 environmental agency
before July 1, 1993.
B. Department of Environmental Quality. The Department of
Environmental Quality shall have the following j urisdictional areas
of environmental responsibility:
1. All point source discharges of pollutants and storm water to
waters of the state which originate from municipal, industrial,
commercial, mining, transportation and utilities, construction,
trade, real estate and finance, services, public administration,
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 as
provided in subsections D, E and F of this se ction;
3. Technical lead agency for point 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 protection and
water quality certifications;
5. Waterworks and wastewater works operator certification;
6. Public and private water s upplies;
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7. Underground injection control pursuant to the fede ral Safe
Drinking Water Act and 40 CFR Parts 144 through 148, except for:
a. Class II injection wells,
b. Class V injection wells utilized in the remediation of
groundwater associated with unde rground or aboveground
storage tanks regulated by the Corporati on 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
given jurisdiction pursuant to the Oklahoma Carbon
Capture and Geologic Sequestration Act;
8. Notwithstanding any other provi sion in this section or other
environmental jurisdiction statut e, sole and exclusive jurisdiction
for air quality under the federal Clean Air Act and applicable state
law, except for indoor air quality and asbestos as regulated for
worker safety by the fed eral Occupational Safety and Health Act of
1970 and by Chapter 11 of Title 40 of the Oklahoma Statutes the
Oklahoma Asbestos Control Act ;
9. Hazardous waste and solid waste including industrial,
commercial and municipal waste;
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10. Superfund responsibilit ies 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 o f radiation except for electronic
products used for diagnosis by diagnostic 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 la w
enforcement agencies of any political subdivision of this state;
12. Water, waste, and wastewater treatment systems including,
but not limited to, septic tanks or other public or private was te
disposal systems;
13. Emergency response as specified by la w;
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 to the
jurisdictional areas of environmental responsibility of the
Department;
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18. Utilization and enforcement of Oklahoma Water Quality
Standards and implementation documents;
19. Environmental regulation of any entity or activity, and the
prevention, control and aba tement of any pollutio n, not subject to
the specific statutory authority of another state environmental
agency;
20. Development and maintenance 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
Standards application and implementation including but not limited
to mixing zones, low fl ows 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 of environmental responsibility; and
22. Development and utilization of policies and requirements
necessary for the implementation of Oklahoma Groundwater 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.
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C. Oklahoma Water Resources Board. The Oklahoma Water
Resources Board shall have the following jurisdictional areas of
environmental responsibility:
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/wastewat er loans and grants re volving fund and
other related financial aid programs;
6. Administration of the federal Clean Water State Revolving
Fund Program program including, but not limited to, ma king
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 lice nsing;
8. Technical lead agency for clean lakes eligible for f unding
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 programs; adm inistration of
a state program for assessing, monitoring, study ing and restoring
Oklahoma lakes with administration to include, but not be limited
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to, receipt and expenditure of funds from federal, state and private
sources for clean lakes and implementati on of a volunteer monitoring
program to assess and monitor stat e water resources, pro vided 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 respons ibility 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 environmental r esponsibility;
11. Development of classifications and identifi cation of
permitted uses of groundwater, in recognized water rights, and
associated groundwater recharge areas;
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 state environmental agencies and
other public entities of water resource investigations conducted by
the federal United States Geolo gical Survey for water quality and
quantity monitoring in the s tate.
D. Oklahoma Department of Agriculture, Food, and Forestry.
1. The Oklahoma Department of Agriculture, Food, and Forestry
shall have the following jurisdictional areas of environmental
responsibility except as provided in paragraph 2 of this subsect ion:
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a. point source discharges and nonpoint 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 wastewater associated with milk
production facilities,
g. groundwater protection for activities subject to the
jurisdictional areas of environme ntal responsibility
of the Department,
h. utilization and enforcement of Oklahoma Water Quality
Standards and implementation documents,
i. development and promulgation of a Water Quality
Standards Implementation Plan pursuant to Section 1 -1-
202 of this title for its jurisdictio nal areas of
environmental responsibility, and
j. storm water discharges for activities subject to the
jurisdictional areas of environmental responsibility
of the Department.
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2. In addition to the jurisdictional areas of environmenta l
responsibility specified in subsection B of this section, the
Department of Environmental Quality shall have environmental
jurisdiction over:
a. (1) commercial manufacturers of fertilizers, g rain
and feed products, and chemicals, and over
manufacturing of food and kindred pro ducts,
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,
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 chemic als that are required by
federal NPDES National Pollutant Discharge 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 su ch storm water discharges.
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E. Corporation Commission.
1. 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 co re test
wells,
c. the exploration, drilling, development, produ cing 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 brines,
e. reclaiming facilities only for the processi ng 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:
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(1) Class II injection wells,
(2) Class V injection wells utilized in the
remediation of groundwater associated with
underground or aboveground storage tank s
regulated by the Com mission,
(3) those wells used for the recovery, 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
is given jurisdiction pursuant to the Oklahoma
Carbon Capture and Geologic Sequestration Act.
Any substance that the United States Environm ental
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 Environmental Quality with regard to
point source discharges,
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h. the construction and operation of pipelines and
associated rights-of-way, equipment, facilities or
buildings used in the transportation of o il, 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,
(4) mineral brine processing plant, and
(5) petrochemical manufacturing plant,
i. the handling, transportation, storage and disposition
of saltwater, mineral brines, waste o il 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
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(2) other oil and gas extraction facilities and
activities,
j. spills of deleterious s ubstances associated with
facilities and activities specified i n 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 activities subject to the
jurisdictional areas of environmental responsibility
of the Commission,
m. utilization and enforcement of Oklahoma Water Quality
Standards and implementation documents, and
n. development and promulgation of a Water Quality
Standards Implementation Plan pursuant to Sect ion 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 ex tend to the construction, operation,
maintenance, site remediat ion, 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 ente rs 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 wa ter from the two facilities or activities
insofar as Department -regulated facilities and activities are
concerned.
4. The Commission and the Department of Environmental Quality
are hereby authorized to obtain 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
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 and permitting authority of the Oklaho ma 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 c ontain antifreeze,
motor oil, motor fuel, gasoline, kerosene, d iesel, or
aviation fuel and that are not located at refineries
or at the upstream or intermediate shipment points of
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pipeline operations including, but not limited to,
tanks from which these ma terials 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 S tates 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 co ntain antifreeze,
motor oil, motor fuel, gasoline, kerosene, di esel, or
aviation fuel and that are not located at refineries
or at the upstream or intermediate shipment points of
pipeline operations including, but not limited to,
tanks from which these mat erials 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 p oint source discharge of a
pollutant to waters of the United St ates during site
remediation or the off-site disposal of contaminated
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soil, media, or debris shall be regulated by the
Department of Environmental Quality, and
c. the Petroleum Storage Tank Rel ease Environmental
Cleanup Indemnity Fund, the Oklahoma Petrole um 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 hazardous waste or other
pollutants from rolling stock and rail facilities. The Department
of Environmental Quality shall not have any jurisdiction with
respect to pipeline transp ortation 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 manufacturin g 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
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Department of Agriculture, Food, and Forestry as
specified by this section.
8. The Department of Environmental Quality shall have sole
environmental jurisdiction to regulate air emissions from all
facilities and sources subj ect to operating permit requirements
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;
2. Monitoring, evaluation and assessment 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 categories as defined in Section 319 of
the federal Clean Water Act or other subsequent federal or sta te
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;
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6. Assessment and conservation plan 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 e nvironmental responsibility;
12. Utilization of Oklahoma Water Quality Standards and
Implementation implementation documents; and
13. Verification and certification of c arbon sequestration
pursuant to the Oklahoma Carbon Sequestrati on 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;
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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 Standar ds
Implementation Plan pursuant to Section 1 -1-202 of this title for
its jurisdictional areas of responsibility.
H. Department of Wildlife Conservation. The Department of
Wildlife Conservatio n 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 responsibility.
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 authoriz ed by the Oklahoma Motor Carrier Safety and
Hazardous Materials Transportation Act; and
2. Inspection and audit activities of hazardous waste and
materials carriers and h andlers as authorized by the Oklahoma Motor
Carrier Safety and Hazardous Materials Transportation Act.
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J. Department of Labor. The Department of Labor shall have the
following jurisdictional areas of environmental responsibility:
1. Regulation of asbest os in the workplace pursuant to Chapter
11 of Title 40 of the O klahoma 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 shal l have the following
jurisdictional areas of environmental responsibilities:
1. Coordination of all emergency resources and activities
relating to threats to citizens ’ lives and property pursuant to the
Oklahoma Emergency Resources M anagement 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, re cover from and mitigat e
potential environmental emergencies and disasters pursuant to the
Oklahoma Hazardous Materials Planning and Notification Act;
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3. Administer and conduct periodic exercis es of emergency
operations plans provided for in this subsectio n 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 pur suant to
the Oklahoma Emergency Resources Management Act of 196 7; and
5. Maintain a computerized emergency information system
allowing state and local access to information regarding hazardous
materials’ location, quantity and potential threat.
SECTION 3. AMENDATORY 27A O.S. 2021, 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:
1. “Agency” means the Corporation Commission or the 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 performed by or in volving efforts
of a person, or
b. separation of carbon dioxide from natural gas.
The term shall not include carbon dioxide that is naturally present
in underground locations;
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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 atoms, and exist s as a gas
at standard temperature and pressure. Carbon dioxide is an inert,
stable, colorless, odorless, nontoxic, incombustible, inorganic gas
that is dissolvable in water and is naturally p resent, such as in
underground locations and in the 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;
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 transmit
anthropogenic carbon dioxide into one or more reservoirs;
7. 6. “CO2 capture and compression equipment” means the
equipment, separation units, process ing units, processing plants,
pipe, buildings, pumps, compressors, meters, facilities, motors,
fixtures, materials, and machinery, and all other improvements used
in the operation of any of the m, and property, real or personal,
intangible or tangible, eith er attributable to or relating to, or
located thereon, used for the purpose of:
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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, compressors, pumps,
meters, facilities, valves, fittings, right -of-way markers, cathodic
protection ground beds, anodes, rectifiers, and any other ca thodic
protection devices, and other associated equipment, appu rtenances
and fixtures located on, attributable to or used in connection with
the same, and used for the purpose of transporting carbon dioxide
for carbon sequestration in this state or another state, excluding:
a. CO2 capture and compression equipment at the source of
the carbon dioxide, and
b. pipelines that are part of a CO 2 sequestration
facility;
9. 8. “CO2 sequestration facility ” means the approved
reservoir(s), and all associated undergr ound equipment and
pipelines, all associated surface buildings and equipment, and all
associated CO2 injection wells, utilized for carbon 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
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b. CO2 pipeline transporting carbon dioxide to the
facility from a source located outside the geographic
boundaries of the surface of the facility;
10. 9. “CO2 trunkline” means a CO2 pipeline that both exceeds
seventy-five (75) miles in distance and has a minimum pipe outside
diameter of at least twelve (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 Title 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;
14. 13. “Enhanced oil or gas recovery ” means the increased
recovery of hydrocarbons, including oil and gas, from a common
source of supply achieved by artificial means or by the application
of energy extrinsic to the common source of supply, such as
pressuring, cycling, pressure maintenance or injection of a
substance or form of energy, such as inj ection of water and/or
carbon dioxide, including 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
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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, legislative body,
agency, beneficial public trust, or other establishment of the
executive, legislative or judicial branch of the United States, the
State of Oklahoma, any other state in the United States, the
District of Columbia, t he 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 Oklaho ma Statutes;
20. 19. “Person” means any individual, proprietor ship,
association, firm, corporation, company, partnership, limited
partnership, limited liability company, j oint 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;
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21. 20. “Private operator” means any person that is either a
facility operator or an operator of a CO 2 pipeline, but that is
neither a public utility 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, formation,
aquifer, cavity or void, whether nat urally occurring or artificially
created, including an oil or g as formation, saline f ormation, 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
carbon sequestration into, oil reservoirs, gas reservoirs, coal -bed
methane reservoirs, an d mineral brine reservoirs. The Commission
shall have such jurisdiction regardless o f 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 jurisdiction over CO 2
sequestration facilities involving, and injection of CO 2 for carbon
sequestration into all reservoirs other than those described in
subsection A of this section, which shall include, but not be
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limited to, deep saline formations, unmineable coal seams wh ere
methane is not produced, basalt reservoirs, salt domes, and non -
mineral bearing shales.
SECTION 5. AMENDATORY 27A O.S. 2021, Section 3 -5-104, as
amended by Section 1, Chapter 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 Commission and the
Department of Environmental Quality shall execute a Memorandum of
Understanding to address areas in which the implementation of the
Oklahoma Carbon Capture and Ge ologic Sequestration A ct will require
interagency cooperation or interaction , including procedures for
directing applicants through the application process .
B. The operator of a CO2 sequestrat ion facility shall obtain a
permit pursuant to the Oklahoma Car bon Capture and Geologic
Sequestration Act from the Agency having jurisdiction Commission
prior to the operation of a CO2 sequestration facility, after the
Operator provides notice of the appli cation for such permit pursuant
to subsection D of this section , and the Agency Commission has a
hearing thereon upon request; provided that no permit pursuant to
the Oklahoma Carbon Capture and Geologic Sequestration Act is
required if the facility operat or obtains permission, by permit or
order, by the Agency Commission pursuant to the rules and
regulations of the state ’s federally approved Underground Injection
Control Program program and such permission authorizes carbon
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sequestration or injection of ca rbon dioxide underground and
incorporates any additional requir ements adopted pursuan t to
subsection C of this section.
C. To the extent not already authorized 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 establishment of appropriate
and sufficient fees to cover the cost of the program, financia l
sureties or bonds, and monitoring at CO2 sequestration facili ties,
as may be necessary, for the purpose of regulating the drilling of
CO2 injection wells related to a CO2 sequestration facility, the
injection and withdrawal of carbon dioxide, the operati on of the CO2
sequestration facility, CO2 injection well pluggi ng and abandonment,
removal of surface buildings and equipment of the CO2 sequestration
facility and for any other purpose necessary to implement the
provisions of the Oklahoma Carbon Capture a nd 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 interest
and royalty owners, of the land to be encompassed within the defined
geographic boundary of th e CO2 sequestration facility as established
by the Agency Commission, and whose addresses are known or could be
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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 als o 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 County, 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 count y, 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 app licant
shall file proof of publication and an affidavit of mail ing with the
Agency Commission prior to the hearing.
E. In addition to all other powers and duties prescribed in the
Oklahoma Carbon Capture and Geologic Sequestration Act or otherwise
by law, and unless otherwise specifically set forth in the Oklahoma
Carbon Capture and Geolo gic Sequestration Act, the Agency having
jurisdiction Commission shall have the authority to perform 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
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Program program established under that act with respect 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 Secret ary
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 statutory framework
of the agency shall be submitted in a report to the Governor,
Secretary of Energy and Environment, President Pro Te mpore 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 expres sly provided by 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 consider ed to be the personal
property of the facility owner.
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B. Absent a final judgment of willful abandonment rendered 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 the owner of th e
surface or mineral e state in the land encompassing the geographic
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 sequestered in a CO 2 sequestration
facility. In the event an operator informs the Commission that it
intends to conduct enhanced oil or gas recovery operations on a
compulsory unit formed purs uant to Section 287.1 et seq. of Title 52
of the Oklahoma statutes Statutes, or its predecessor unitization
act, then during the time that such unit is in operation, such
operator shall be relieved of any obligation to either:
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 required by the Corporation Commission
pursuant to Section 53 of Title 17 of the Oklahoma Statutes; or
2. Remove any surface equi pment that is associated with any
such well and intended to be used in such enhanced oil or gas
recovery operations, or both.
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D. The Agency having jurisdiction over the i njection of carbon
dioxide under this act Commission shall also have jurisdiction over
a facility operator that produces, takes, extracts or reduces to
possession any injected, 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
rights, of the owners of the mineral estate or adversely affect
enhanced oil or gas recovery efforts in the state.
C. Any right granted to a facility operator pursuant to this
act the Oklahoma Carbon Capture and Geologic Sequestration Act shall
be without prejudice to the rights of any surface 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 approved reservoir in a
manner as shall comply with orders, ru les and regulations issued for
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the purpose of protecting the approved reservoir against the escape
of CO2. For purposes of this subsection, the Agency with
jurisdiction under other state law for regulating the well being
drilled or bored through the approved reservoir is the Agency 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 CO 2 sequestration facility pursuant to
Section 3 of this act. If the Agency with jurisdiction under other
state law for regulating the well being drilled or bored through the
approved reservoir is not the Agency that has jurisdi ction to permit
the CO2 sequestration facility pursuant to Sect ion 3 of this act,
then the former shall promptly notify the latter in writing of the
receipt of an application for the drilling or boring of such a well
and shall consider all timely submitted comments of the latter in
approving, denying, or setting condi tions for the well bei ng drilled
or bored. The additional cost of complying with such orders, rules
or regulations in order to protect the CO 2 sequestration facility
shall be borne by the faci lity operator.
D. Nothing in this act the Oklahoma Carbon Capt ure 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 duplication in numbering, reads as follows:
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A. Subject to the limitations of this section, the Corporation
Commission shall have jurisdiction to effectuate an d enforce the
provisions of this section. The Commission 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 purp ose
of geologic sequestration of carbon dioxide shall file with the
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 area,
b. the name and address of each surface owner and mineral
owner, including working interest and royalty owners,
of the land to be encompassed within the defined
geographic boundary of the proposed carb on
sequestration facility,
c. the name and address of each surf ace owner and mineral
owner, including working interest and royalty owners,
of the land immediately adjacent to the geographic
boundary of the proposed carbon sequestration
facility, and
d. a recommended plan of unitization applicable to the
proposed unit area.
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2. Each person named within the application as prescribed
pursuant to paragraph 1 of this subsection 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 respo ndent to the applicati on
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 of
general circulation printed in Oklahoma County, and by publication
in some newspaper of general circulation in each county in which the
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 la w to be codified
in the Oklahoma Statutes as Section 3 -5-108 of Title 27A, unless
there is created a duplication 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 issuance;
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2. The geologic storage facilit y 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 adequately
protected;
4. The injection and geologic storage of carbon dioxide will
not injure oil, gas, or any other mineral formation in any material
respect, or such injury has been addressed in an arrangement between
the applicant and the mineral le ssee or owner. Provided, however,
such arrangement shall be in written form and subm itted to the
Commission prior to approval of 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 th e proposed
geologic storage facility. Provided, such consent shall be in
written form and submitted to the Commission prior to approval of
the unit;
6. The applicant has made a fair and reaso nable offer to
unitize the nonconsenting pore space owners ’ interests; and
7. All pore space owners who did not consent to unitize their
interests in order to develop the pore space as a proposed geologic
storage facility but who are or will be subject to a unitization
order are or will be equitably compensated for t he appurtenant and
reasonable use of the pore space and surface.
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B. To amend a unitization order for the purpose of changing the
size of a geologic storage facility, the storage operator shall
demonstrate to the Commission that the operator has obtained t he
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 describ ed 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 th is act. An unknown or unlocatable pore
space owner is eligible for compensation unde r paragraph 8 of
subsection A of this section.
D. An offer made to unitize the nonconsenting pore space
owners’ interest shall be considered fair and reasonable under
paragraph 7 of subsection A of this section if it is made in a
similar manner as the offer made to the other owners of pore space
in the proposed unit, taking into account any material differences
in circumstances.
E. A final unitization order entered by the Commission under
this section, unless modified or overturned b y a final order from a
court, shall be considered final and conclusive as to all facts,
findings, and conclusions contained in the order for all purposes
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and as to all parties notified and thei r heirs, successors, 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, reads as follows:
A. 1. Not later than fifty (50) years after cessation of
injection into a geologic storage facilit y for carbon dioxide, or
following the end of any other time frame established on a site -
specific basis by application to the Corporation Commission, the
Commission shall issue a certificate of completion 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 ,
c. the storage facility does not pose an endangerment to
underground sources of dri nking water, or to public
health or public safety,
d. the current storage facility operator has complied
with all applicable regulations related to post -
injection monitoring and the issuance of the
certificate of completion of injecti on operations, and
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e. the storage facility has been closed in accordance
with all applicable requirements related to site
closure.
2. Upon issuance of a certificate of completion of injection
operations, ownership of the remaining project including the st ored
carbon dioxide shall transfer to the state.
3. Upon issuance of a certificate of completion of injection
operations, the storage facility operator, all owners of carbon
dioxide stored in the facility, and all owners otherwise having any
interest in the storage facility, shall be released from any and all
future duties or obligations relating to the facility and any and
all liability associated with or related to that facility which
arises after the issuance of the certificate of completion of
injection operations.
B. The release from duties or obligations under paragraph 3 of
subsection A of this section shall not apply to:
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 certificate ; 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 mechanical
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integrity of the storage facility or the chemical composition of any
injected carbon dioxide.
C. Continued monitoring of the sit e, 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 injected int o a storage facility. At the end
of each fiscal year, the Commission may redetermine the fees
collected based upon the estimated cost of administering 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
each fiscal year. Any amount received by the Commission that
exceeds the annual balance required under this subsection shal l 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 for fee amount and
payment method.
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SECTION 11. NEW LAW A new section of law to be codified
in the Oklahoma Statu tes as Section 3-5-110 of Title 27A, unless
there is created a duplication 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 Commission pursuant to Sections 9 through
11 of this act. All monies accr uing to the credit of the fund are
hereby appropriated and may be budgeted and expended by the
Commission for the purpose s provided for in this section.
Expenditures from the fund shall be made upon warrants 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 mor e than Five
Million Dollars ($5,000,000.00) to the fund, the fe e assessments to
that storage facility shall cease until such time as funds begin to
be expended for that facility. The State Treasurer shall certify to
the Commission the date on which the ba lance in the fund for a
storage facility equals or exceeds Five Million Dollars
($5,000,000.00). On and after the first day of the second month
following the certification, fees shall not be collected from the
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facility; provided, fee collection shall resu me on receipt of a
certification by the State Treasurer that, b ased on the expenditur es
and commitments to expend monies, the fund has fallen below Four
Million Dollars ($4,000,000.00) of funds collected from that
facility.
C. Expenditures from the fund m ay be used to:
1. Remediate any issues associated with, arisin g from, or
related to the site, including remediation of property, of site
infrastructure, and of any mechanical problems associated with the
remaining wells;
2. Fund research and development in connection with carbon
sequestration technologies and method s;
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 well s to be
used as observation wells; and
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
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the administration of funds, fund balances, expenditures made, and
any other information deeme d necessary by the Commission.
E. Not later than November 1, 2 029, and every five (5) years
thereafter, the Commission shall furnish a report electronically to
the President Pro Tempore of the Senate and the Speaker of the House
of Representatives assessi ng the effectiveness of the fund and other
related provisions w ithin 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 Commiss ion is vested with
exclusive jurisdiction, power and authority, and it shall be its
duty, to make and enforce such rules and orders governing and
regulating the handling, storage and dispositio n 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 and brine
wells within this state as are reasonable and necessary for the
purpose of preventing the pollution of the s urface and subsurface
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 jurisdictio n,
power and authority, and it shall be its duty to promulgate and
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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, 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 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. injection wells known as Class II wells under the
federal Underground Injection Control Program, and any
aspect of any CO2 sequestration facili ty, including
any associated CO2 injection well, over which the
Commission is given jurisdiction pursuant to the
Oklahoma Carbon Capture and Geologic Sequestration
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Act. Any substance that the United States
Environmental Protection Agency allows to be inje cted
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 groundwa ter associated with
underground or aboveground storage tanks
regulated by the Commission,
(3) those wells used for the recovery, injection, or
disposal of mineral brines a s 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
given jurisdiction pursuant to the Oklahoma
Carbon Capture and Geol ogic Sequestration Act,
g. tank farms for storage of crude oil and petroleum
products which are located outside the boundaries of
the refineries, petrochemical manufacturing plants,
natural gas liquid extraction plants, or other
facilities which are subjec t to the jurisdiction of
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the Department of Environmental Qualit y 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 ammonia or
mineral brine, or in the treatme nt of oil, gas or
mineral brine during the course of transportation but
not including line pipes associated with processing at
or in any:
(1) natural gas liquids extractio n plant,
(2) refinery,
(3) reclaiming facility other than for t hose
specified within subparagraph e of this
paragraph,
(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
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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 activiti es specified in paragraph 1 of
this subsection paragraph 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 strata.
2. The exclusive jurisdiction , power and authority of the
Corporation 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 deleteriou s substance from a Commission -regulated
facility or activity en ters a point source di scharge 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 activities are
concerned.
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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 direct
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 Commission shall have jurisdiction over:
a. underground storage tank s 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 shipme nt 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 e quipment
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
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soil, media, or debris shall be r egulated 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 located at refineries
or at upstream or intermediate shipment po ints of
pipeline operations, including, but not limited to,
tanks from which these ma terials are dispensed into
vehicles, or tanks used in wholesale or bulk
distribution activities, as well as leaks from pumps,
hoses, dispensers, and other ancillary equipm ent
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 regula ted by the
Department of Environmental Quality, and
c. the Petroleum Storage Tank Rel ease Environmental
Cleanup Indemnity Fund and 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
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of Environmental Quality shall not have any jurisdictio n with
respect to pipeline transportation of carbon dioxide.
7. The Department of En vironmental 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 subsection, and
d. other facilities, activi ties and sources not s ubject
to the jurisdiction of the Corporation Commission or
Oklahoma Department of Agriculture , Food, and Forestry
as specified by this section.
8. The Department of Envi ronmental 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 sh all comply with and enforce the
Oklahoma Water Quality Standard s.
D. 1. For the purpose of immediately responding to emergency
situations having potentially critical environmental or public
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safety impact and resulting from activities within its jurisdict ion,
the Commission may take whatever necessary action, 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 Office of Management and
Enterprise Services to accomplish the purposes of this section.
Thereafter, the Commission shall seek reimbursement f rom the
responsible person, firm or corporation for all expendi tures made
from the Corporation Commission Revolving Fund. Any monies received
as reimbursement shall be deposited to the credit of the Corporation
Commission Revolving Fund.
2. The Commission shall not expend from any fund in the State
Treasury, in any fiscal year, for the p urposes herein provided, an
amount of money in excess of the total sum specifically authorized
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 under this sect ion
shall be held liable or responsible for any damages resulti ng from
non-negligent actions reasonably necessary for conducting remedial
work. Nothing in this section shall limit the authority of the
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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.
Passed the Senate the 7th day of March, 2024.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2024.
Presiding Officer of the Hou se
of Representatives