SB132 HFLR Page 1 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 HOUSE OF REPRESENTATIVES - FLOOR VERSION STATE OF OKLAHOMA 1st Session of the 60th Legislature (2025) COMMITTEE SUBSTITUTE FOR ENGROSSED SENATE BILL NO. 132 By: Burns and Green of the Senate and Boles of the House COMMITTEE SUBSTITUTE An Act relating to the Corporation Commission; amending 17 O.S. 2021, Section 53, which relates to plugging wells; establishing maximum time period for plugging certain wells; defining terms; directing rule promulgation; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 17 O.S. 2021, Section 53, is amended to read as follows: Section 53. A. The Corporation Commission is hereby authorized to promulgate rules for the plugg ing of all abandoned idle oil and gas wells. Abandoned wells Idle wells shall be plugged under the direction and supervision of Commission employees as may be prescribed by the Commission. Provided, however, the Commission SB132 HFLR Page 2 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 shall not order any oil or gas well to be plugged or closed if the well is located on an otherwise producing oil or gas lease as defined by the Commission, unless such well poses an imminent threat to the public health and safety which shall be determined by the Commission after conduct ing a public hearing on the matter. B. An idle gas well shall be plugged if it has not produced gas within the last ten (10) years, provided that the operator, owner, or other responsible parties may be granted an exception by demonstrating good cause to the Corporation Commission. Good cause may include, but is not limited to, evidence regarding the gas well's future use for production, injection, carbon storage, and geothermal energy generation, pursuant to Corporation Commission rules. C. An operator with multiple idle gas wells that have not produced gas for ten (10) years prior to the effective date of this act shall reduce the number of idle gas wells by plugging or producing from such wells, provided that the operator, owner, or other responsible parties may be granted an exemption by demonstrating good cause to the Corporation Commission. Good cause may include, but is not limited to, evidence regarding the gas well's future use for production, injection, carbon storage, and geothermal energy gene ration, pursuant to Corporation Commission rules. The reduction of idle gas wells shall be as follows: SB132 HFLR Page 3 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1. Not later than July 1, 2028, by reducing the number of idle gas wells by at least twenty -five percent (25%); 2. Not later than July 1, 2031, by red ucing the number of idle gas wells by at least fifty percent (50%); and 3. Not later than July 1, 2035, by plugging or producing from all remaining idle gas wells. D. As used in this section: 1. "Idle well" or "idle gas well" means a nonproducing well with respect to which there has been no commercial production (i.e., from which there has been no sale of crude oil or natural gas) for the preceding ten (10) years; and no reasonable case is made by the named operator for its future use, including, without limitation, for production, injection, carbon storage, and geothermal energy generation; 2. "Nonproducing well" means a well that was drilled for the purpose of producing hydrocarbons and that is currently shut -in or temporarily abandoned; 3. "Shut-in" means a well that is completed, not producing, but is mechanically capable of production and has requisite surface facilities; and 4. "Temporarily abandoned” means a well that is completed, not producing, and is not shut -in. SB132 HFLR Page 4 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 E. The Commission shall promu lgate rules to effectuate the provisions of this section and establish any necessary enforcement measures. SECTION 2. This act shall become effective November 1, 2025. COMMITTEE REPORT BY: COMMITTEE ON ENERGY AND NATURAL RESOURCES OVERSIGHT, dated 04/24/2025 - DO PASS, As Amended.