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Bill > HB4338


OK HB4338

OK HB4338
Oklahoma Brine Development Act; modifications; modifying definitions; defining terms; Corporation Commission; effective date.


summary

Introduced
02/02/2026
In Committee
02/25/2026
Crossed Over
Passed
Dead

Introduced Session

2026 Regular Session

Bill Summary

An Act relating to Oklahoma Brine Development Act; amending 17 O.S. 2021, Section 501, which relates to purpose; modifying legislative intent; amending 17 O.S. 2021, Section 502, which relates to definitions; modifying definitions; defining terms; amending 17 O.S. 2021, Section 503, which relates to Corporation Commission jurisdiction; modifying certain exception; amending 17 O.S. 2021, Section 504, which relates to unitization of brine rights; requiring certain application be filed; updating statutory references; modifying certain description of certain unit; amending 17 O.S. 2021, Section 506, which relates to Commission's findings; modifying description of certain evidential findings; modifying description of certain unit; requiring certain orders remain applicable and serve as certain guidelines; amending 17 O.S. 2021, Section 507, which relates to delineation of unit area; modifying certain description; removing certain single source of supply requirement; authorizing Corporation Commission to make units certain size and shape; requiring brine owners proportionally share produced water; requiring certain measurements of gross production; amending 17 O.S. 2021, Section 508, which relates to plan of unitization; modifying description of certain unit; modifying certain plan requirements; modifying description of certain owners; stating certain provisions to inapplicable to formation of a produced water unit; authorizing proposed operator to seek certain emergency relief; requiring Commission grant relief upon certain showing; granting proposed operator right to collect certain proceeds; requiring set royalty be held in suspense until final order establishes unit; detailing requirements for certain royalty rate; amending 17 O.S. 2021, Section 510, which relates to increase or decrease of unit area size; modifying description of certain unit; modifying required showing for increase in existing unit size; amending 17 O.S. 2021, Section 516, which relates to pre-existing brine, solution gas or brine and solution gas units; updating statutory references; amending 17 O.S. 2021, Section 517, which relates to payment of proceeds; modifying language to include produced water; modifying information to be included with certain payments; amending 17 O.S. 2021, Section 519, which relates to notice to surface owner of intent to drill; stating that certain provisions are inapplicable to the formation of a produced water unit; and providing and effective date.

AI Summary

This bill, the Oklahoma Brine Development Act, modifies existing laws to expand the scope of brine development to include "produced water," which is saltwater and other liquid waste from oil and gas operations, when it's intended for commercial extraction of its constituent elements. The Corporation Commission, Oklahoma's regulatory body for oil and gas, will now have jurisdiction over "produced water units" for this purpose, allowing them to define the size and shape of these units and requiring owners of produced water to proportionally share in its production. The bill also clarifies definitions, streamlines the unitization process for both brine and produced water, and allows for emergency relief for proposed operators of produced water units to begin extraction before a final order is issued, while ensuring royalties are held in suspense until then. Additionally, it updates procedures for payment of proceeds from production, including specific information to be provided with payments, and clarifies that certain notice requirements for brine well drilling do not apply to the formation of produced water units. The act will take effect on November 1, 2026.

Committee Categories

Agriculture and Natural Resources

Sponsors (4)

Last Action

CR; Do Pass, amended by committee substitute Energy and Natural Resources Oversight Committee (on 02/25/2026)

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