The Oklahoma Senate has given unanimous approval to a bill calling for an increase of surety bonds offered by oil and gas exploration firms to cover the cost of plugging abandoned wells in the state.
Senate Bill 1368, authored by Sen. Zack Taylor, R-Seminole was approved on a 44-0 vote and sent to the House for a possible vote. Taylor’s bill is meant to reduce the number of abandoned or orphan wells from growing beyond the 17,000 that exist currently in Oklahoma.
The state’s existing regulations require oil and gas operators to post a $25,000 surety with the Corporation Commission which would fund the plugging of a well if needed.
As approved by the Senate, SB1368 would leave the $25,000 bond requirement for an operator who has one to 10 wells. But the amount would increase to $50,000 for an operator with 11 to 50 wells.
An operator with 51 to 200 wells would be required to post a $100,000 surety per new well. Those with more than 200 wells would post a $150,000 surety per new well.
