Okla. Stat. tit. 11, § 11-37-502: Allocation of funds – Application for funds -

Eligibility.

A. The monies in the Municipal Road Drilling Activity Revolving

Fund shall be allocated by the Oklahoma Department of Transportation

only to municipalities having a population of less than fifteen

thousand (15,000) persons according to the Federal Decennial Census

or most recent population estimate to repair damage to municipal

roads caused by or reasonably caused by increased use of such roads

resulting from oil or gas drilling activity. The damage may be

attributable to traffic associated with exploration and drilling

activity, completion of an oil or gas well, production from an oil

or gas well, servicing during the period of production, repairs or

other necessary activity associated with the drilling or production

activity, and other actions necessary for the operation or cessation

of drilling or production activities.

B. A municipality seeking funds for distribution pursuant to

the provisions of Section 2 of this act and this section shall make

application to the Oklahoma Department of Transportation on such

forms as may be prescribed by the Department for such purpose. The

initial application shall be filed not later than May 1, 2023.

C. A municipality shall be required to provide twenty-five

percent (25%) of the total project costs in order to be eligible for

distribution of funds from the Municipal Road Drilling Activity

Revolving Fund.

D. The Department shall review applications in the order in

which they are received and shall make distribution of funds based

on analysis of considerations of public safety, volume of traffic

which contributes to the need for repairs, and such other factors as

the Department may determine to be relevant. The initial

distribution of funds shall take place not later than October 1,

2023.

E. If the Department determines that the damage to a road has

been caused or reasonably has been caused by increased traffic

related to oil and gas drilling or production activity as provided

by this section, the Department shall transfer the eligible amount

of funds to the municipality for deposit into the municipal general

fund or such other public fund as the municipality shall specify in

its application.

F. Funds distributed pursuant to the provisions of this section

shall only be used by a municipality for the repair of roads

according to the requirements of this act and shall not be used to

construct a new road unless the damage to an existing road has

become extensive enough to require such replacement.