Bill > HB3469

This bill modifies existing regulations for oil and gas operators in Oklahoma regarding financial assurance for well plugging and site cleanup. It introduces a voluntary election for operators to switch from "Category A surety," which relies on financial statements and a net worth of at least $50,000, to "Category B surety," which involves instruments like letters of credit or surety bonds. While Category A surety will no longer be accepted for new operators after November 1, 2025, current operators in good standing can retain it, with the option to convert to Category B and later revert to Category A within three years if they remain compliant. The bill also outlines a phased-in increase for Category B surety amounts based on the number of wells operated, with full amounts required by the end of 2028, and allows the Oklahoma Corporation Commission to require higher surety amounts based on an operator's compliance history. Additionally, it clarifies that new operators, those with outstanding fines or contempt citations, and operators with affiliated individuals or entities facing such issues must post Category B surety. The bill also includes provisions for the Commission to require additional surety in cases of pollution or improper plugging, and mandates that wells of non-compliant operators will be shut down until proper financial assurance is provided. Finally, it states that the transferee of property or a well must provide the required financial assurance before the transfer occurs.

Agriculture and Natural Resources

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb3469&Session=2600