HB 1369: Oil and gas; evidence of financial ability for drilling and operating wells; modifying surety amount and types; effective date. - Oklahoma

Floor (House) → Floor (Senate) · 7 edits

MODERATE

This bill amends Oklahoma's oil and gas bonding requirements by phasing out Category A surety for new operators starting November 1, 2025, and replacing it with a tiered Category B surety system based on the number of wells operated. The changes increase bonding amounts for operators with more wells and add flexibility for operators with low liability to post lower amounts.

Scope change

The bill expands requirements for operators with more wells by introducing tiered surety amounts and modifies eligibility for Category A surety to exclude new operators after November 1, 2025.

ELIGIBILITY

Category A surety will no longer be accepted for new operators beginning November 1, 2025, though current operators may retain it.

Operators with low estimated plugging liability may post Category B surety below the standard amount, but not less than the estimated cost of plugging operations.

Operators of record as of June 7, 1989 without fines or contempt citations may post Category A surety; new operators or those with fines must post Category B.

REQUIREMENT

New tiered surety amounts for Category B based on well count: $25,000 for 1-10 wells, $50,000 for 11-50 wells, $100,000 for 51-100 wells, and $150,000 for more than 100 wells.

Commission may require higher Category B surety amounts based on operator and affiliate performance history, up to $150,000.

ENFORCEMENT

Operators using Category A surety assessed fines of $2,000 or more must post Category B surety within 30 days of notification.

Commission may require additional Category B surety up to $150,000 for pollution or improper plugging after notice and hearing.

House Committee Substitute → Floor (House) · 5 edits

MODERATE

This bill amends Oklahoma's oil and gas financial responsibility laws by eliminating Category A surety (net worth statements) for new operators starting November 1, 2025, while allowing current operators to retain it temporarily. It introduces tiered surety amounts based on the number of wells operated and clarifies requirements for Category B surety options like letters of credit and bonds.

Scope change

The bill applies to all persons drilling or operating oil and gas wells in Oklahoma, with specific provisions for new versus existing operators based on their status as of June 7, 1989.

REQUIREMENT

Eliminated Category A surety (net worth statements proving $50,000 net worth) as a valid form of financial responsibility for new operators beginning November 1, 2025.

Established tiered surety amounts for Category B based on number of wells: $25,000 for 1-10 wells, $50,000 for 11-50 wells, $100,000 for 51-100 wells, and $150,000 for more than 100 wells.

Added provisions allowing operators to request reduced surety amounts based on certified plugging liability costs for specific wells.

ELIGIBILITY

Created grandfather provisions allowing current operators with valid Category A surety to retain it, while requiring new operators and those with outstanding fines to use Category B surety.

TECHNICAL

Changed document header from 'House Committee Substitute' to 'Floor (House)' version with updated page numbering and formatting.

Enrolled (final version) → Proposed Committee Substitute (full committee) 1 · 1 edit

MINOR

The bill was reformatted from its enrolled final version to a proposed committee substitute version, which is a procedural document showing how the committee intends to amend the bill before it reaches its final form. The substantive policy content regarding oil and gas surety requirements, financial thresholds, and effective dates remains unchanged in the text itself.

Scope change

No substantive change to the bill's scope or applicability; this is a formatting change reflecting committee review status.

TECHNICAL

Document format changed from 'Enrolled' final version to 'Proposed Oversight Committee Substitute' indicating the bill is still under committee review and not yet in its final legislative form.

Introduced → Engrossed · 3 edits · Apr 28, 2025

MINOR

This bill was amended to update formatting and clarify the maximum surety amount for Category B operators. The changes remove the 'As Introduced' label and add 'Engrossed' status, while also modifying the language to explicitly cap Category B surety at $150,000 regardless of the operator's well count or performance history.

Scope change

The bill's scope remains focused on oil and gas operator surety requirements, but the amendment clarifies the maximum financial guarantee allowed under Category B.

REQUIREMENT

The maximum Category B surety amount is now explicitly capped at $150,000, removing previous language that allowed the Commission to determine amounts based on past performance without a clear upper limit.

Language was added to clarify that Category B surety amounts cannot exceed $150,000 even when operators request lower amounts based on their specific plugging liability calculations.

TECHNICAL

Formatting updates were made to change the bill header from 'As Introduced' to 'Engrossed' and update the page numbering references to reflect the engrossed version.

Engrossed → Enrolled (final version) · 3 edits · May 5, 2025

MINOR

The bill was finalized from its engrossed version with minor formatting and authorship corrections. The substantive policy content regarding oil and gas surety requirements, tiered amounts based on well count, and phased elimination of Category A surety remains unchanged from the previous version.

TECHNICAL

Authorship line was updated to reflect both House and Senate sponsors (Boles and Waldron for House, Green and Boren for Senate) instead of listing House sponsor separately.

Removed redundant page headers and formatting markers from the enrolled version to produce a clean final legislative text.

Minor text cleanup in section headers and paragraph numbering to align with standard enrolled bill formatting conventions.

Proposed Committee Substitute (full committee) 1 → House Committee Substitute · 5 edits

MODERATE

This bill was substantially rewritten from its original version, replacing the entire text with a new committee substitute. The changes primarily affect how oil and gas operators must demonstrate financial ability to comply with well plugging and closure requirements. The most significant change is the elimination of Category A surety (financial statements) for new operators starting November 1, 2025, while allowing current operators to retain it temporarily.

Scope change

The bill's scope remains focused on oil and gas operations in Oklahoma, but the specific requirements for demonstrating financial ability have been modified. The applicability of surety categories has changed, with Category A being phased out for new operators.

REQUIREMENT

Category A surety (financial statements proving $50,000 net worth) will no longer be accepted for new operators beginning November 1, 2025, though current operators may retain it temporarily.

New tiered surety amounts based on number of operating wells: $25,000 for 1-10 wells, $50,000 for 11-50 wells, $100,000 for 51-100 wells, and $150,000 for more than 100 wells.

Category B surety options now include additional forms such as cashier's checks, certificates of deposit, bank joint custody receipts, and blanket surety bonds, in addition to letters of credit and cash.

ENFORCEMENT

The Commission may require additional Category B surety between $25,000 and $150,000 after notice and hearing if an operator fails to properly plug wells or address plugging liabilities.

TECHNICAL

Document formatting and page numbering were updated from the original version, with request numbers changed from 12755 to 12970.

Oil and gas; evidence of financial ability for drilling and operating wells; modifying surety amount and types; effective date.

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