{"data":{"id":"us-ok/okla.-stat.-tit.-17-17-518","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 17, § 17-518","heading":"Compliance by operator with rules - Evidence of financial","body":"ability - Neglect, failure or refusal to plug and abandon or replug\n\nwell, etc. - Forfeiture or payment - Transfer of title.\n\nA. Any person who drills or operates any well or unit for the\n\nexploration, development or production of oil or brine, or as an\n\ninjection or disposal well, within this state, shall furnish in\n\nwriting, on forms approved by the Corporation Commission, his or her\n\nagreement to drill, operate and plug wells in compliance with the\n\nrules of the Commission and the laws of this state, together with\n\nevidence of financial ability to comply with the requirements for\n\nplugging, closure of surface impoundments, removal of trash and\n\nequipment as established by the rules of the Commission and by law.\n\nB. To establish evidence of financial ability, the Commission\n\nshall require an irrevocable commercial letter of credit, cash, a\n\ncashier's check, a certificate of deposit, bank joint custody\n\nreceipt, other negotiable instrument or a blanket surety bond. The\n\namount of such letter of credit, cash, cashier's check, certificate,\n\nbond, receipt or other negotiable instrument shall be in the amount\n\nof Twenty-five Thousand Dollars ($25,000.00) per well. If an\n\noperator operates more than four wells subject to this requirement,\n\nthe operator may file appropriate evidence of financial ability in a\n\nblanket amount of One Hundred Thousand Dollars ($100,000.00). Any\n\ninstrument shall constitute an unconditional promise to pay and be\n\nin a form negotiable by the Commission.\n\nC. The agreement provided for in subsection A of this section\n\nshall provide that if the Commission determines that the person\n\nfurnishing the agreement has neglected, failed or refused to plug\n\nand abandon, or cause to be plugged and abandoned, or replug any\n\nwell or has neglected, failed or refused to close any surface\n\nimpoundment or removed or cause to be removed trash and equipment in\n\ncompliance with the rules of the Commission, then the person shall\n\nforfeit from his or her bond, letter of credit or negotiable\n\ninstrument or shall pay to this state, through the Commission, for\n\ndeposit in the State Treasury, a sum equal to the cost of plugging\n\nthe well, closure of any surface impoundment or removal of trash and\n\nequipment. The Commission may cause the remedial work to be done,\n\nissuing a warrant in payment of the cost thereof drawn against the\n\nmonies accruing in the State Treasury from the forfeiture or\n\npayment. In the event that a well on the Commission's orphaned\n\nwells list has measurable methane, pursuant to the American Carbon\n\nRegistry standards or pursuant to the standards of other carbon\n\nregistries chosen by the Commission, the Commission may test and\n\nrecord the measurements of such emissions from the well pursuant to\n\nthe requirements of the American Carbon Registry or pursuant to the\n\nstandards of other carbon registries chosen by the Commission and\n\nobtain any carbon credits that may be available for the measured\n\nemissions. The Commission may use proceeds received from the sale\n\nof carbon credits, which shall be deposited into the Oil and Gas\n\nDivision Revolving Fund, to offset the cost of administering the\n\nprogram and testing for methane. The Commission may hire an\n\nadministrator to assist in facilitating the program. All funds\n\nremaining after testing, administration, and the cost to market and\n\nsecure the credits value shall be placed in the Corporation\n\nCommission Plugging Fund. Nothing in this section shall prohibit\n\nthe Commission from transferring an orphaned well, and all\n\nassociated potential carbon credits, pursuant to the Commission's\n\nwell transfer program. The Commission may promulgate rules as\n\nneeded to effectuate the capture of emissions and obtaining of\n\ncredits under this section. Any monies accruing in the State\n\nTreasury by reason of a determination that there has been a\n\nnoncompliance with the provisions of the agreement or the rules of\nd well, and all\n\nassociated potential carbon credits, pursuant to the Commission's\n\nwell transfer program. The Commission may promulgate rules as\n\nneeded to effectuate the capture of emissions and obtaining of\n\ncredits under this section. Any monies accruing in the State\n\nTreasury by reason of a determination that there has been a\n\nnoncompliance with the provisions of the agreement or the rules of\n\nthe Commission, in excess of the cost of remedial action ordered by\n\nthe Commission, shall be credited to the Oil and Gas Division\n\nRevolving Fund. The Commission shall also recover any costs arising\n\nfrom litigation to enforce this provision. Provided, before a\n\nperson is required to forfeit or pay any monies to the state\n\npursuant to this section, the Commission shall notify the person at\n\nhis or her last-known address of the determination of neglect,\n\nfailure or refusal to plug or replug any well, or close any surface\n\nimpoundment or remove trash and equipment and such person shall have\n\nten (10) days from the date of notification within which to commence\n\nremedial operations. Failure to commence remedial operations shall\n\nresult in forfeiture or payment as provided in this subsection.\n\nD. If title to property or a well is transferred, the\n\ntransferee shall furnish the evidence of financial ability to plug\n\nthe well and close surface impoundments required by the provisions\n\nof this section, prior to the transfer.","path":["OK Code","Title 17"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os17.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"06278f3687bb8b2a9b36a79eb127d17c8699f9e8d49718b9bc478ac44d6318ff","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-17-17-517","next":"us-ok/okla.-stat.-tit.-17-17-519"},"notice":"GroundRules: Original legal text. Not legal advice."}