MontanaSB 33969th Legislature, Regular Session (2025)Senate

Revise oil and gas production damage mitigation account

Sponsored By: Daniel Zolnikov (Republican)

Signed by Governor

Mining and MineralsGas and OilState Finance

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 0 costs, 1 mixed.

Funds ready to plug orphan wells

Beginning July 1, 2025, cleanup money is statutorily available when the board approves it. The fund pays reasonable costs to plug wells and fix abandoned drill sites when the responsible person cannot be found, cannot be reached, or refuses to act. The responsible person still owes what they can and must repay the fund or face a lien.

0.08% of oil tax to resource fund

Beginning July 1, 2025, after the trust-fund interest step, up to 0.08% of the oil and gas production tax goes to the oil and gas natural resource distribution account. The state then distributes that money under existing law.

Oil well cleanup fund deposits and cap

Beginning July 1, 2025, the state tops up the oil and gas cleanup fund with up to $650,000 in trust-fund interest at the start of each two-year period, but only until the fund reaches $1,000,000. Any part of that $650,000 not needed goes to a natural resources grants account. After other required transfers, remaining production taxes go into the cleanup fund unless its unobligated balance is $10,000,000 or more. When the fund is at or above $10,000,000, no deposit is made and the money stays in the board’s expense account as reserves or for legislative transfer tied to oil and gas impacts. The board must also deposit specific receipts it collects into this cleanup fund.

Sponsors & Cosponsors

Sponsor

Daniel Zolnikov
Republican • Senate

Cosponsors

Valerie Moore
Republican • House

Roll Call Votes

All Roll Calls

Yes: 297 • No: 0

House vote • 4/15/2025

Do Concur

Yes: 97 • No: 0

House vote • 4/14/2025

Do Concur

Yes: 100 • No: 0

Senate vote • 4/2/2025

Do Pass

Yes: 50 • No: 0

Senate vote • 4/1/2025