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SENATE FLOOR VERSION
April 16, 2025
AS AMENDED
ENGROSSED HOUSE
BILL NO. 1370 By: Boles and Waldron of the
House
and
Green of the Senate
[ Corporation Commission Plugging Fund – sunset –
excise tax on oil and gas – taxes – sales tax amount
– Interstate Oil Compact Fund of Oklahoma – cap -
effective date -
emergency ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 17 O.S. 2021, Section 180.10, is
amended to read as follows:
Section 180.10. A. There is hereby created in the State
Treasury a fund for the Corporation Commission to be designated the
"Corporation Commission Plugging Fund". The plugging fund shall
consist of monies received by the Corporation Commission as required
by law to be deposited to the credit of said fund. The fund shall
be a continuing fund not subject to fiscal year limitations and
shall not be subject to legislative appropriations. Expenditures
from the plugging fund shall be made pursuant to the laws of this
state and the statutes relating to the Corporation Commission. For
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each fiscal year, the Commission may expend not more than eight
percent (8%) of the total amount deposited to the credit of the
plugging fund during the previous fiscal year for the purpose of
responding to occurrences of seeping natural gas as provided for in
Section 317.1 of Title 52 of the Oklahoma Statutes. In addition,
expenditures from the plugging fund may be made pursuant to the
Oklahoma Central Purchasing Act, Section 85.1 et seq. o f Title 74 of
the Oklahoma Statutes, for purposes of immediately responding to
emergency situations, within the Commission's jurisdiction, having
potentially critical environmental or public safety impact.
Warrants for expenditures from the fund shall be drawn by the State
Treasurer, based on claims signed by an authorized employ ee of the
Corporation Commission and approved for payment by the Director of
the Office of Management and Enterprise Services. The provisions of
this act or rules promulgated purs uant thereto, shall not be
construed to relieve or in any way diminish the surety bonding
requirements required by Section 318.1 of Title 52 of the Oklahoma
Statutes.
B. Prior to July 1, 2026 2031, the plugging fund shall be
maintained at Five Million Dol lars ($5,000,000.00). If the plugging
fund falls below the five -million-dollar maintenance level, the
Corporation Commission shall notify the Tax Commission that the
plugging fund has fallen below the required maintenance level and
that the excise tax whi ch has been levied by subsection A of Section
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1101 of Title 68 of the Oklahoma Statutes and subsection A of
Section 1102 of Title 68 of the Oklahoma Statutes which is credited
and apportioned to the Corporation Commission Plugging Fund pursuant
to Section 1103 of Title 68 of the Oklahoma Statutes is to be
imposed. Such additional excise tax shall be imposed and collected
until such time as is necessary to meet the additional five -million-
dollar maintenance level. The Tax Commission shall notify the
persons responsible for payment of the excise tax on oil and gas of
the imposition of such tax. The provisions of this subsection shall
terminate on July 1, 2026 2031.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 1103, is
amended to read as follows:
Section 1103. A. 1. Prior to July 1, 2026 2025, and as
provided in Section 1103.1 of this title, all monies derived from
the levy of the excise tax on petroleum oil provided for by Section
1101 of this title shall be deposited with the Sta te Treasurer, who
shall credit and apportion the same as follows:
a. eighty-two and six hundred thirty -four thousandths
percent (82.634%) of said excise tax shall be credited
to the General Revenue Fund of the State Treasury;
provided, in each fiscal year beginning on or after
July 1, 2013, the first One Million Three Hundred
Fifty Thousand Dollars ($1,350,000.00) which would
otherwise have been apportioned to the General Revenue
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Fund pursuant to this subparagraph shall be
transferred to the Oil and Gas Div ision Revolving Fund
of the Oklahoma Corporation Commission,
b. ten and five hundred twenty -six thousandths percent
(10.526%) shall be credited and apportioned to a
separate and distinct fund to be known as the
"Corporation Commission Plugging Fund", and
c. the remaining six and eighty -four hundredths percent
(6.84%) of said excis e tax shall be credited and
apportioned to a separate and distinct fund to be
known as "The Interstate Oil Compact Fund of
Oklahoma", which fund is hereby created.
2. Prior to July 1, 2026 2025, and as provided in Section
1103.1 of this title, all monies derived from the levy of the excise
tax on natural gas and/or casinghead gas provided for by Section
1102 of this title shall be deposited with the State Treasurer, who
shall credit and apportion the same as follows:
a. eighty-two and six thousand forty -five ten thousandths
percent (82.6045%) of said excise tax shall be
credited to the General Revenue Fund of the State
Treasury; provided, in each fiscal year beginning on
or after July 1, 2013, the first One Million Three
Hundred Fifty Thousand Dollars ($1,350,000.00) which
would otherwise have been apportioned to the General
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Revenue Fund pursuant to this subparagraph shall be
transferred to the Oil and Gas Division Revolving Fund
of the Oklahoma Corporation Commission,
b. ten and five thousand five hundred f ifty-five ten
thousandths percent (10.5555%) shall be credited and
apportioned to the Corporation Commission Plugging
Fund, and
c. six and eighty-four hundredths percent (6.84%) of said
excise tax shall be credited and apportioned to The
Interstate Oil Compact Fund of Oklahoma.
3. Prior to July 1, 2026 2025, and as provided in Section
1103.1 of this title, all monies to accrue to The Interstate Oil
Compact Fund of Oklahoma under th e provisions of this article,
together with all monies remaining unexpended in The Interstate Oil
Compact Fund of Oklahoma created under this subsection are hereby
appropriated and shall be used for the payment of the compensation
of the assistant represen tative of the State of Oklahoma on The
Interstate Oil Compact Commission, the compensation of such
clerical, technical and legal assistants as he or she may with the
consent of the Governor employ; the actual and necessary traveling
expenses of the assista nt representative and employees, and of the
Governor when traveling in the G overnor's capacity as official
representative of the State of Oklahoma on The Interstate Oil
Compact Commission; all items of office expense including the cost
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of office supplies a nd equipment; such contributions as the Governor
shall deem necessary and proper to pay to The Interstate Oil Compact
Commission to defray its expenses; and such other necessary expenses
as may be incurred in enabling the State of Oklahoma to fully
cooperate in accomplishing the objects of the Interstate Compact to
conserve oil and gas. The fund shall be disbursed by the State
Treasurer upon sworn, itemized claims approved by the assistant
representative and the Governor; provided, that if at the end of an y
fiscal year any part of the special fund shall remain unexpended,
such balance shall be transferred by the State Treasurer to, and
become a part of, the General Revenue Fund of the state for the
ensuing fiscal year. Provided, further, that if the State of
Oklahoma withdraws from the Interstate Compact to conserve oil and
gas, any unencumbered monies in The Interstate Oil Compact Fund of
Oklahoma shall be transferred to and become a part of the General
Revenue Fund of the State Treasury and thereafter the excise tax on
petroleum oil, natural gas and/or casinghead gas levied by this
article shall be levied, collected and deposited in the General
Revenue Fund of the State Treasury.
4. All monies to accrue to the Corporation Commission Plugging
Fund are hereby appropriated and shall be used for payment of
expenses related to the sta tutory purpose of the fund.
The provisions of this subsection shall terminate on June 30,
2026 2025.
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B. 1. Beginning on July 1, 2026 2025, all monies derived from
the levy of the excise tax on petroleum oil provided for by Section
1101 of this title shall be deposited with the State Treasurer, who
shall credit and apportion the same as follows:
a. seven and sixty-five hundredths percent (7.65%) shall
be credited and apportioned to The Interstate Oil
Compact Fund of Oklahoma, and
b. ninety-two and thirty-five hundredths percent (92.35%)
of said excise tax shall be credited and apportioned
to the General Revenue Fund of the State Treasury;
provided, in each fiscal year beginning on or after
July 1, 2013 2025, the first One Million Three Hundred
Fifty Thousand Dollars ($1,350,000.00) whic h would
otherwise have been apportioned to the General Revenue
Fund pursuant to this subparagraph shall instead be
transferred to the Oil and Gas Division Revolving Fund
of the Oklahoma Corporation Commission, and second an
amount up to Ten Million Dollars ($10,000,000.00)
shall be transferred to the Corporation Commission
Plugging Fund.
b. the remaining seven and sixty -five hundredths percent
(7.65%) of said excise tax shall be credited and
apportioned to a separate and distinct fund to be
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known as "The Interstate Oil Compact Fund of
Oklahoma", which fund is hereby created.
2. Beginning on July 1, 2026 2025, all monies derived from the
levy of the excise tax on natural gas and/or casinghead gas provided
for by Section 1102 of this title shall be deposited with the State
Treasurer, who shall credit and apportion the same as follows:
a. seven and sixty-five hundredths percent (7.65%) shall
be credited and apportioned to The Interstate Oil
Compact Fund of Oklahoma, and
b. ninety-two and thirty-five hundredths percent (92.35%)
of said excise tax shall be credited and apportioned
to the General Revenue Fund of the State Treasury;
provided, in each fiscal year beginning on or after
July 1, 2013 2025, the first One Million Three Hundred
Fifty Thousand Dollars ($1, 350,000.00) which would
otherwise have been apportioned to the General Revenue
Fund pursuant to this subparagraph shall instead be
transferred to the Oil and Gas Division Revolving Fund
of the Oklahoma Corporation Commission, and second an
amount up to Ten Million Dollars ($10,000,000.00)
shall be transferred to the Corporation Commission
Plugging Fund.
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b. seven and sixty-five hundredths percent (7.65%) of
said excise tax shall be credited and apportioned to
The Interstate Oil Compact Fund of Oklahoma.
3. Beginning on July 1, 2026 2025, all monies to accrue to The
Interstate Oil Compact Fund of Oklahoma under the provisions of this
article, together with all monies remaining unexpended in The
Interstate Oil Compact Fund of Oklahoma created under this
subsection are hereby appropriated and shall be used for the payment
of the compensation of the assistant representative of the State of
Oklahoma on The Interstate Oil Compact Commission, the compensation
of such clerical, technical and legal assistants as he or she may
with the consent of the Governor employ; the actual and necessary
traveling expenses of the assistant representative and employees,
and of the Governor when traveling in the Governor's capacity as
official representative of the State of Oklahoma o n The Interstate
Oil Compact Commission; all items of office expense including the
cost of office supplies and equipment; such contributions as the
Governor shall deem necessary and proper to pay to The Interstate
Oil Compact Commission to defray its expen ses; and such other
necessary expenses as may be incurred in enabling the State of
Oklahoma to fully cooperate in accomplishing the objects of the
Interstate Compact to conserve oil and gas. The fund shall be
disbursed by the State Treasurer upon sworn, i temized claims
approved by the assistant representative and the Governor; provided,
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that if at the end of any fiscal year any part of the special fund
shall remain unexpended, such balance shall be transferred by the
State Treasurer to, and become a part o f, the General Revenue Fund
of the State Treasury for the ensuing fiscal year. Provided,
further, that if the State of Oklahoma withdraws from the Interstate
Compact to conserve oil and gas, any unencumbered monies in The
Interstate Oil Compact Fund of Ok lahoma shall be transferred to and
become a part of the General Revenue Fund of the State Treasury and
thereafter the excise tax on petroleum oil, natural gas and/or
casinghead gas levied by this article shall be levied, collected and
deposited in the Gene ral Revenue Fund of the State Treasury.
SECTION 3. This act shall become effective July 1, 2025.
SECTION 4. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS
April 16, 2025 - DO PASS