OklahomaHB 1369Oklahoma 2026 Regular SessionHouse

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

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Bill Overview

Analyzed Economic Effects

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

Lower guarantees for lower-cost well cleanup

Beginning November 1, 2025, Oklahoma's Corporation Commission can approve lower Category B guarantees when statewide cleanup costs are below the well-count requirement. A licensed well plugger must provide a sworn statement estimating all well-plugging, surface impoundment closure, and trash and equipment removal costs. The guarantee must cover those estimated costs. The Commission can raise the amount when operators take on more operations, but it cannot exceed $150,000.

Extra guarantees for operators with violations

Beginning November 1, 2025, Oklahoma's Corporation Commission can require extra Category B guarantees for pollution or improper well plugging. This applies to Category A or B operators when good cause involves their conduct or that of insiders or affiliates. The Oil and Gas Conservation Division Director must apply, and the Commission must give notice and hold a hearing. The extra amount must exceed $25,000. Its maximum rises from $100,000 to $150,000, and the Commission cannot require more than that ceiling.

Fewer financial guarantee options for operators

Beginning November 1, 2025, new Oklahoma oil and gas operators must use Category B, not Category A, financial guarantees. Existing operators can keep Category A, which requires at least $50,000 in net worth, while it remains valid. They must also stay in good standing with the Oklahoma Corporation Commission. Category B accepts irrevocable commercial letters of credit, cash, cashier’s checks, certificates of deposit, other negotiable instruments, or blanket surety bonds. Bank Joint Custody Receipts are no longer accepted.

Well operators face tiered financial guarantees

Beginning November 1, 2025, Oklahoma operators must provide Category B financial guarantees based on the number of wells they operate. Required amounts are $25,000 for 1–10 wells, $50,000 for 11–50, $100,000 for 51–100, and $150,000 for more than 100. The Oklahoma Corporation Commission can require more based on the compliance history of operators and their insiders or affiliates. The required amount cannot exceed $150,000.

Sponsors & Cosponsors

Sponsor

Brad Boles
Republican • House

Cosponsors

Mary B. Boren
Democratic • Senate
Grant Green
Republican • Senate
Waldron
Affiliation unavailable

Roll Call Votes

All Roll Calls

Yes: 169 • No: 4

Senate vote • 4/28/2025

THIRD READING

Yes: 44 • No: 0

Senate vote • 4/17/2025

Committee vote: Energy

Yes: 11 • No: 0

House vote • 3/5/2025

THIRD READING

Yes: 91 • No: 3

House vote • 2/26/2025

DO PASS

Yes: 14 • No: 1

House vote • 2/5/2025