A. Any person who drills or operates any well for the exploration, development or production of oil or gas, or as an injection or disposal well, within this state, shall furnish in writing, on forms approved by the Corporation Commission, his or her agreement to drill, operate and plug wells in compliance with the rules of the Commission and the laws of this state, together with evidence of financial ability to comply with the requirements for plugging, closure of surface impoundments, removal of trash and equipment as established by the rules of the Commission and by law. To establish evidence of financial ability, the Commission shall require:
1. Category A surety which shall include a financial statement listing assets and liabilities and including a general release that the information may be verified with banks and other financial institutions. The statement shall prove a net worth of not less than Fifty Thousand Dollars ($50,000.00); or
2. Category B surety which shall include an irrevocable commercial letter of credit, cash, a cashier's check, a Certificate of Deposit, Bank Joint Custody Receipt, other negotiable instrument or, a blanket surety bond. Except as provided in paragraph 3 of subsection A of this section, amount of such letter of credit, cash, cashier's check, certificate, bond, receipt or other negotiable instrument shall be in the amount of Twenty-five Thousand Dollars ($25,000.00) but may be set higher at the discretion of the Director of the Oil and Gas Conservation Division. The Commission is authorized to determine the amount of Category B surety based upon the past performance of the operator and its insiders and affiliates regarding compliance with the laws of this state, and any rules promulgated thereto including but not limited to the drilling, operation and plugging of wells, closure of surface impoundments or removal of trash and equipment. Any instrument shall constitute an unconditional promise to pay and be in a form negotiable by the Commission.
3. The Commission upon certification by any operator subject to Category B surety that its plugging liability statewide is less than the twenty-five-thousand-dollar standard specified in this section may allow said operator to provide Category B type surety in an amount less than the required Twenty-five Thousand Dollars ($25,000.00), but at least sufficient to cover the estimated cost of all plugging, closure, and removal operations currently the responsibility of that operator. The liability certification referred to in this paragraph shall take the form of an affidavit from a licensed well plugger estimating the costs of all plugging, closure, and removal operations of the operator requesting such relief. This alternative amount shall be modified upward upon the assumption of additional operations by such operator, the maximum amount of Category B surety to be posted not to exceed the twenty-five-thousand-dollar total unless as provided previously.
B. Operators of record as of June 7, 1989, who do not have any outstanding contempt citations or fines and whose insiders or affiliates have no outstanding contempt citations or fines may post Category A surety.
New operators, operators who have outstanding fines or contempt citations and operators whose insiders or affiliates have outstanding contempt citations or fines as of June 7, 1989, shall be required to post Category B surety. Operators who have posted Category B surety and have operated under this type surety and have no outstanding fines at the end of three (3) years may post Category A surety.
Operators using Category A surety who are assessed a fine of Two Thousand Dollars ($2,000.00) or more and who do not pay the fine within the specified time shall be required to post a Category B surety within thirty (30) days of notification by the Commission.
C. For good cause shown concerning pollution or improper plugging of wells by the operator posting either Category A or B surety or by an insider or affiliate of such operator, the Commission, upon application of the Director of the Oil and Gas Conservation Division, after notice and hearing, may require the filing of additional Category B surety in an amount greater than Twenty-five Thousand Dollars ($25,000.00) but not to exceed One Hundred Thousand Dollars ($100,000.00).
D. If the Commission determines that a blanket surety bond is required, the bond shall be conditioned on the fact that the operator shall cause the wells to be plugged and abandoned surface impoundments to be closed, and trash and equipment to be removed in accordance with the laws of this state and the rules of the Commission. Each bond shall be executed by a corporate surety authorized to do business in this state and shall be renewed and continued in effect until the conditions have been met or release of the bond is authorized by the Commission.
E. The agreement provided for in subsection A of this section shall provide that if the Commission determines that the person furnishing the agreement has neglected, failed, or refused to plug and abandon, or cause to be plugged and abandoned, or replug any well or has neglected, failed or refused to close any surface impoundment or removed or cause to be removed trash and equipment in compliance with the rules of the Commission, then the person shall forfeit from his or her bond, letter of credit or negotiable instrument or shall pay to this state, through the Commission, for deposit in the State Treasury, a sum equal to the cost of plugging the well, closure of any surface impoundment or removal of trash and equipment. The Commission may cause the remedial work to be done, issuing a warrant in payment of the cost thereof drawn against the monies accruing in the State Treasury from the forfeiture or payment. Any monies accruing in the State Treasury by reason of a determination that there has been a noncompliance with the provisions of the agreement or the rules of the Commission, in excess of the cost of remedial action ordered by the Commission, shall be credited to the Oil and Gas Revolving Fund. The Commission shall also recover any costs arising from litigation to enforce this provision. Provided, before a person is required to forfeit or pay any monies to the state pursuant to this section, the Commission shall notify the person at his or her last-known address of the determination of neglect, failure or refusal to plug or replug any well, or close any surface impoundment or remove trash and equipment and said person shall have ten (10) days from the date of notification within which to commence remedial operations. Failure to commence remedial operations shall result in forfeiture or payment as provided in this subsection.
F. It shall be unlawful for any person to drill or operate any oil or gas well subject to the provisions of this section, without the evidence of financial ability required by this section. The Commission shall shut in, without notice, hearing or order of the Commission, the wells of any such person violating the provisions of this subsection and such wells shall remain shut in for noncompliance until the required evidence of Category B surety is obtained and verified by the Commission.
G. If title to property or a well is transferred, the transferee shall furnish the evidence of financial ability to plug the well and close surface impoundments required by the provisions of this section, prior to the transfer.
H. As used in this section:
1. "Affiliate" means an entity that owns twenty percent (20%) or more of the operator, or an entity of which twenty percent (20%) or more is owned by the operator; and
2. "Insider" means officer, director, or person in control of the operator; general partners of or in the operator; general or limited partnership in which the operator is a general partner; spouse of an officer, director, or person in control of the operator; spouse of a general partner of or in the operator; corporation of which the operator is a director, officer, or person in control; affiliate, or insider of an affiliate as if such affiliate were the operator; or managing agent of the operator.
Added by Laws 1971, c. 25, § 1, emerg. eff. March 22, 1971. Amended by Laws 1983, c. 91, § 1, eff. Nov. 1, 1983; Laws 1984, c. 117, § 1, eff. Nov. 1, 1984; Laws 1986, c. 310, § 4, operative July 1, 1986; Laws 1987, c. 45, § 1, emerg. eff. April 24, 1987; Laws 1989, c. 381, § 3, emerg. eff. June 7, 1989; Laws 1991, c. 332, § 9, eff. July 1, 1991; Laws 1992, c. 362, § 2, emerg. eff. June 4, 1992; Laws 1997, c. 275, § 10, eff. July 1, 1997.
Structure Oklahoma Statutes
§52-1. Corporation Commission or Commission defined.
§52-1.1. Corporations for producing, transmitting or transporting natural gas.
§52-2. Foreign gas pipeline corporations - License.
§52-4. Right-of-way must be granted by charter and damages paid - Damages.
§52-5.1. Cooperation with other agencies.
§52-5.2. Deposit of monies collected in Corporation Commission Revolving Fund.
§52-7. Necessity of incorporation.
§52-8. Plat and information showing trunk lines - Filing with Corporation Commission.
§52-9. Domestic pipeline companies - Erection of pumping stations.
§52-10. Pipeline companies may cross highways, bridges, etc. - Supplying gas to landowner.
§52-21. Businesses and persons subject to act - Vested rights excepted.
§52-22. Pipeline right-of-way - Eminent domain - Highways.
§52-23. Pipeline operators common purchasers - Requirements - Exemptions.
§52-24. Pipeline companies declared common carriers - Discrimination - Exemptions.
§52-24.1. Refusal to purchase or transport natural gas - Complaint - Hearing - Orders.
§52-24.5. Discriminatory fees – Open access – Commission authority.
§52-25. Parties not complying with act not to own gas wells, etc.
§52-27. Right-of-way - Highways - Eminent domain - Foreign corporations - Negligent injuries.
§52-28. Filing records or plats with Corporation Commission - Extension of time.
§52-29. Production levels of gas wells - Rulemaking - Hardship wells - Field rules.
§52-31. Violation of act - Punishment.
§52-32. Violations - Receivership - procedure.
§52-33. Evidence - Certified transcripts of reports of gas companies.
§52-34. Enforcement by Corporation Commission - Appeals.
§52-36.2. Public interest and welfare.
§52-36.4. Certificate of Commission.
§52-36.5. Petition to district court - Examination and determination - Subsequent proceedings.
§52-41. Gas from interstate pipelines - License from Corporation Commission.
§52-44. Gas to be furnished through meters at meter rates - Exceptions.
§52-45. Violations of act misdemeanor - Punishment.
§52-46.1. Ammonia - Commercial fertilizers - Transportation by pipeline.
§52-46.2. Hearing and determination of applications - Appeals.
§52-46.4. Rules and regulations.
§52-47.3. Powers and duties of Commission.
§52-47.4. Inspection, operation and maintenance plan.
§52-47.5. Determination of hazardous transportation system - Corrective action - Emergencies.
§52-47.6. Violations - Penalties.
§52-47.7. Action to redress or restrain violation.
§52-51. Oil companies must comply with statute - "Petroleum" defined.
§52-54. Common purchasers of oil - Required to purchase - Discrimination prohibited.
§52-55. Chapter inapplicable to businesses not of public consequence.
§52-56. Oil carriers are common carriers - Discrimination prohibited.
§52-57. Oil carriers not to be interested in producing.
§52-58. Acceptance of laws and plats to be filed.
§52-59. Domestic pipeline companies have right-of-way.
§52-60. Eminent domain extended to oil pipelines same as railroads.
§52-61. Eminent domain, who may have - Foreign corporations.
§52-62. Commission may extend time for filing plats.
§52-63. Penalty for violations.
§52-64. Suspension of penalty, when.
§52-65. Certified transcript shall be evidence.
§52-86.2. Waste in production of oil - industrial use of water produced
§52-86.4. Common source of supply - Orders, rules and regulations.
§52-86.5. Procedural requirements.
§52-86.6. Short title - Oil and Gas Produced Water and Waste Recycling and Reuse Act.
§52-86.8. Compliance with the Oklahoma Brine Development Act.
§52-87.1. Common source of supply of oil - Well spacing and drilling units.
§52-87.3. Application or petition for location exception - Notice of hearing.
§52-87.4. Affidavit of election for drilling well under pooling order.
§52-87.5. Applications for approval of increased density wells – Notice and hearing.
§52-87.6. Short title - Extended Horizontal Well Development Act - Definitions.
§52-87.7. Corporation Commission jurisdiction.
§52-87.9. Horizontal well unitization for targeted reservoirs.
§52-91. Meters on pipelines - Commission to designate type - Inspection - Cost of operation.
§52-92. Reports - Oil purchased or transported - Forms - Verification.
§52-93. Operators - Books - Oil produced and sold.
§52-94. Maps and drawings - Location of pipelines and connections - Verification.
§52-95. Reports - Quantity of oil produced and moved - Penalty.
§52-96. Verification of reports, statements, maps and drawings.
§52-97. Commission - Jurisdiction to make orders, rules and regulations - Hearings.
§52-98. Powers of Commission - Marshal of Commission.
§52-99. Filing of papers and documents - Use as evidence.
§52-100. Witnesses - Depositions.
§52-101. Procedure - Rules of - Enforcement of orders and rules.
§52-102. Contempt - Punishment - Enforcement of fines - Disposition of fines and penalties.
§52-103. Contempt - Proceedings - How commenced - Complaint - Citation.
§52-104. Right of entry and inspection by conservation officer, his assistants and deputies.
§52-106. Notice on filing of motion or petition.
§52-107. Process - Service - How made - Return.
§52-108. Oaths - Felony of perjury.
§52-109. False verification of documents as perjury - Punishment.
§52-111. Collateral attack on orders, rules and regulations - Appeals - Supreme Court.
§52-112. Application to amend or modify orders - Hearing - Appeal.
§52-113. Appeals - Power of Supreme Court - Supersedeas - Bond.
§52-114. Obstructing or delaying performance of duties a felony.
§52-115. Conspiracy to violate act - Punishment.
§52-116. Violation of orders, rules and regulations - Injunction - Appeal - Supersedeas.
§52-117. Bribery - Punishment.
§52-118. Bribery - Accepting bribe - Punishment.
§52-119. Bribery - State's evidence - Immunity.
§52-120. Powers - Grant of not to restrict general powers.
§52-132. Office of Management and Enterprise Services - Rooms and supplies.
§52-134. Partial invalidity - Effect.
§52-135. Pending actions not terminated.
§52-136. Application of procedural requirements - Right of appeal - Rules and regulations.
§52-138. Partial invalidity, effect of.
§52-140. Earthen storage ponds - Remedial action.
§52-142. Cooperation and assistance of other environmental agencies.
§52-144. Provisions supplemental - Exceptions.
§52-146. Right of condemnation by eminent domain to enforce Commission orders.
§52-147. Institution of condemnation proceedings by lessees.
§52-149. Conservation Division - Creation - Personnel - Duties - Qualifications.
§52-149.1. Oil and gas referees.
§52-149.2. Oil and Gas Appellate Referees.
§52-149.3. Teleconference hearings.
§52-152. Salaries, costs and expenses - Payment.
§52-153. Persons having authority to make investigations, serve orders, etc.
§52-202. Interstate compacts - When binding.
§52-203. Interstate Compact ratified and confirmed.
§52-204. Terms and provisions of compact.
§52-206. Clerical, technical and legal assistants - Expenses - Office.
§52-207. Interstate Oil Compact Fund - Purpose for which used - Disposition of unexpended balance.
§52-208. Duration of Act - Withdrawal from Compact - Credit of funds to General Revenue Fund.
§52-211. Further extensions - Withdrawal from Compact - Determination and necessary steps.
§52-233. Sale of gas - Prices and amounts of gas to be taken - Delivery.
§52-234. Misappropriation of gas - Liability for damages and penalties.
§52-235. Misappropriation of gas - Felony of grand larceny.
§52-239. Common source of supply - Apportionment and regulation to prevent waste.
§52-240. "Common purchaser" - Discrimination in purchases prohibited - Regulation of purchases.
§52-241. Enforcement of act - Hearings before Corporation Commission.
§52-242. Appeals to Supreme Court.
§52-243. Corporation Commission - Authority to make rules and regulations.
§52-244. Pipeline companies - Acceptance of act as prerequisite to right to operate.
§52-245. Mine Inspector - Duties unchanged.
§52-246. Partial invalidity - Effect.
§52-247. Violation - Penalties.
§52-248. Declaration of policy.
§52-250. Natural gas - Pumping of water for irrigation - Preferred use.
§52-251. Prices, terms and conditions - Determination.
§52-253. Initiation of proceedings.
§52-254. Obligation of well operators.
§52-255. Controversies pending.
§52-257. Order granting emergency relief.
§52-272. Production and sale regulated - Corporation Commission, authority of.
§52-273. Waste defined - Regulations to prevent.
§52-275. Wells gauged - Regulation by Corporation Commission - Agents.
§52-276. Enforcement of act - Hearings before Corporation Commission.
§52-277. Appeals to Supreme Court - Effect on orders.
§52-278. Violation - Penalties.
§52-287.1. Legislative finding.
§52-287.2. Power and authority of Commission.
§52-287.3. Matters to be found by Corporation Commission - Requisites of petition.
§52-287.4. Order - Units and unit areas - Plan of unitization.
§52-287.5. Ratification or approval of plan by lessees and owners.
§52-287.6. Procedure - Notice - Appeals.
§52-287.7. Unlawful operation.
§52-287.8. Status and powers of unit - Liability for expenses - Liens.
§52-287.10. Enlargement of area - Creation of new units - Amendment of plan.
§52-287.11. Participation by public lands.
§52-287.12. Receipts as income.
§52-287.15. Agreements not violative of laws governing monopolies or restraint of trade.
§52-288.3. Oklahoma Energy Resources Board.
§52-288.5. Board - Powers, duties and responsibilities.
§52-288.5A. Committee for Sustaining Oklahoma's Energy Resources.
§52-288.5B. Sustaining Oklahoma's Energy Resources Revolving Fund.
§52-288.5D. Levying fee to fund Commission.
§52-288.5E. Refund of fees levied on production.
§52-288.7. Energy Resources Revolving Fund.
§52-288.8A. Levy of assessment - Remitting - Rate - Collection.
§52-288.11. Investment of funds - Utilizing funds to influence governmental action or policy.
§52-291. Confinement of gas until used.
§52-292. Waste from gas pipeline - Unlawful if unnecessary.
§52-293. Flambeau lights unlawful.
§52-294. Lights - Daytime use prohibited.
§52-295. Burning gas during day.
§52-296. Refuse from wells - Disposition.
§52-296.1. Securing of crude oil storage tanks.
§52-302. Firing oil or gas, or interfering with appliances unlawful.
§52-303. Penalty for violations.
§52-305. Well drilling within 100 feet of underground coal mines prohibited.
§52-306. Workable coal beds or seams defined.
§52-307. Drilling of wells through workable seams - Regulations.
§52-309. Findings and declarations.
§52-310. Leaking wells - Entry upon land to plug, replug or repair - Emergencies.
§52-311. Liability for damages.
§52-312. Responsibility for future remedial work.
§52-313. No admission of liability or discharge of action.
§52-314. Right of action for costs involved - Lien
§52-317.1. Seeping natural gas - Jurisdiction, power, and authority of the Corporation Commission.
§52-318. Remedial work - Contracts upon competitive bids.
§52-318.1a. Confidentiality of financial statement.
§52-318.3. Notice of intent to drill - Negotiating surface damages.
§52-318.4. Undertakings which may be posted as damage deposit.
§52-318.5. Negotiating surface damages - Appraisers - Report and exceptions thereto - Jury trial.
§52-318.8. Effect of act on jurisdiction, authority and power of Corporation Commission.
§52-318.9. Violation of act - Damages.
§52-318.21. Short title - Seismic Exploration Regulation Act - Definitions.
§52-318.22. Seismic exploration operations - Registration - Permits - Requirements - Penalty.
§52-318.23. Seismic test hole blasting - Damages.
§52-320. "Growing crops" defined.
§52-320.1. Restriction on location of habitable structures.
§52-320.2. Unlawful use of safety equipment in oil or gas production.
§52-391. Sale of petroleum products under deception as to quality or identity.
§52-392. Marked containers or distributing equipment - Use in selling petroleum products.
§52-393. Trademark - Imitation.
§52-394. Selling under false mark or name.
§52-396. Aiding violations of act.
§52-397. Violation of provisions - Misdemeanor.
§52-398. Definitions - Persons liable for violations by firm or corporation.
§52-399. Partial invalidity - Effect.
§52-420.1. Short title - Definitions.
§52-420.2. State Liquefied Petroleum Gas Administrator - Deputies and enforcement officers.
§52-420.3. Oklahoma Liquefied Petroleum Gas Board.
§52-420.3A. Liability of sellers, suppliers, handlers, or transporters of liquified petroleum gas.
§52-420.4. Registration permits - Fees - Insurance requirements.
§52-420.8. Violations of law or rule.
§52-420.10. Appointment of administrative staff.
§52-420.14. Nonresidents - Prohibition on storage or dispensing.
§52-420.15. Safety schools for liquefied petroleum dealers.
§52-420.17. Inspectors' uniforms - Maintenance and cleaning allowance.
§52-420.22. Oklahoma Liquefied Petroleum Gas Research, Marketing and Safety Commission - Creation.
§52-420.24. Commission powers and duties.
§52-420.25. Commission meetings - Appointment of Director.
§52-420.26. LP Gas Research, Marketing and Safety Revolving Fund.
§52-420.28. Assessment collection - Penalties.
§52-420.29. Assessment refund.
§52-420.29-1. Exports exempted from assessment.
§52-420.29-2. Application for refund by purchaser.
§52-420.29-3. Petition to Commission for refund.
§52-420.30. Certain programs not preempted - Designation of funds for payment of certain programs.
§52-420.31. Oklahoma Propane Education and Safety Council – Powers and duties.
§52-421.1. Liquefied petroleum gas emergency - Declaration by Governor.
§52-472. Terms defined - Pressure - Conversion to standard conditions.
§52-473. Determination of factors by Commission - Determination and report of volumes.
§52-474. Sales, purchases and deliveries - Adjustment of contract prices.
§52-475. Penalty for violations - Civil actions.
§52-477. Jurisdiction of Commission not restricted.
§52-521. Leasing of mineral interests of owners who cannot be located.
§52-523. Negotiations by receiver - Deposit of funds - Discharge - Costs.
§52-524. Natural gas - Preferred use.
§52-525. Agricultural use of natural gas - Price - Installation of lines - Cessation of delivery.
§52-527. Method of measuring amount of gas.
§52-528. State Corporation Commission - Powers and duties - Duty of Operators.
§52-529. Liability of operators - Jurisdiction - Venue.
§52-549.4. Perfection of oil and gas lien.
§52-549.5. Oil and gas commingling.
§52-549.6. Rights of purchaser.
§52-549.7. Relative priority of oil and gas lien.
§52-549.8. Not affected by act.
§52-549.9. Waiver, relinquishment, release.
§52-549.10. Expiration of oil and gas lien - Enforcement of lien.
§52-549.11. Rights of operator.
§52-549.12. Cumulative rights.
§52-553. Mineral Owner's Fund.
§52-554. Transmission of funds - Escrow report - Claims against Mineral Owner's Fund.
§52-555. Investment of funds - Apportionment of interest.
§52-556. Custody of Mineral Owner's Fund - Transfer of monies to Unclaimed Property Fund.
§52-557. Conditions for oil well plugging approval.
§52-558. Implementation of act – Rules - Prospective operation.
§52-570.3. Application of act.
§52-570.5. Designation of person for certain royalty, accounting and remittance functions.
§52-570.6. Selling royalty gas in kind - Consumption and accounting for royalty gas.
§52-570.7. Out-of-balance wells.
§52-570.10. Payment of proceeds from sale of oil and gas production.
§52-570.13. Promulgation of rules.
§52-570.15. Performance pursuant to act - Satisfaction of duties and obligation.
§52-581.2. Purpose and intent of act.
§52-581.4. Exemptions - Owners ineligible to elect to market share.
§52-581.5. Election to market share - Procedure.
§52-581.6. Election to market share - Effect.
§52-581.7. Amount of gas produced from well.
§52-581.8. Distribution of revenues from sale of production.
§52-581.9. Construction and application of act.
§52-604. Transfers prohibited.
§52-609. Powers and authority of Commission.
§52-610. Violations - Fines and penalties - Collection of fines.
§52-612. Nonresident transferees - Service of process.
§52-613. Statute of limitations.
§52-801. Exploration Rights Act of 2011.
§52-803. Surface estate – Interference with solar energy agreement – Notice
§52-902. Construction of oil and gas contracts, statutes and governmental orders.
§52-903. Failure to pay proceeds from production - Remedies.