Okla. Stat. tit. 17, § 17-518: Compliance by operator with rules - Evidence of financial

ability - Neglect, failure or refusal to plug and abandon or replug

well, etc. - Forfeiture or payment - Transfer of title.

A. Any person who drills or operates any well or unit for the

exploration, development or production of oil or brine, 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.

B. To establish evidence of financial ability, the Commission

shall require 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. The

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) per well. If an

operator operates more than four wells subject to this requirement,

the operator may file appropriate evidence of financial ability in a

blanket amount of One Hundred Thousand Dollars ($100,000.00). Any

instrument shall constitute an unconditional promise to pay and be

in a form negotiable by the Commission.

C. 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. In the event that a well on the Commission's orphaned

wells list has measurable methane, pursuant to the American Carbon

Registry standards or pursuant to the standards of other carbon

registries chosen by the Commission, the Commission may test and

record the measurements of such emissions from the well pursuant to

the requirements of the American Carbon Registry or pursuant to the

standards of other carbon registries chosen by the Commission and

obtain any carbon credits that may be available for the measured

emissions. The Commission may use proceeds received from the sale

of carbon credits, which shall be deposited into the Oil and Gas

Division Revolving Fund, to offset the cost of administering the

program and testing for methane. The Commission may hire an

administrator to assist in facilitating the program. All funds

remaining after testing, administration, and the cost to market and

secure the credits value shall be placed in the Corporation

Commission Plugging Fund. Nothing in this section shall prohibit

the Commission from transferring an orphaned well, and all

associated potential carbon credits, pursuant to the Commission's

well transfer program. The Commission may promulgate rules as

needed to effectuate the capture of emissions and obtaining of

credits under this section. 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

d well, and all

associated potential carbon credits, pursuant to the Commission's

well transfer program. The Commission may promulgate rules as

needed to effectuate the capture of emissions and obtaining of

credits under this section. 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 Division

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 such 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.

D. 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.