Shown verbatim: the complete text as captured from the official PDF posted by the Oklahoma Legislature, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
1 STATE OF OKLAHOMA
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2 2nd Session of the 60th Legislature (2026)
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3 SENATE BILL 1418 By: Boren
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6 AS INTRODUCED
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7 An Act relating to oil and gas operations; defining
7 terms; establishing certain liability; requiring
8 certain actions prior to transfer; authorizing
8 promulgation of rules; authorizing certain disclosure
9 upon written request; authorizing certain petition;
9 authorizing civil action and recovery of certain
10 fees; prohibiting retaliation; requiring certain
10 approval by the Corporation Commission; requiring
11 certain notice; construing provisions; providing for
11 codification; and providing an effective date.
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14 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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15 SECTION 1. NEW LAW A new section of law to be codified
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16 in the Oklahoma Statutes as Section 318.11 of Title 52, unless there
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17 is created a duplication in numbering, reads as follows:
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18 A. For the purposes of this section:
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19 1. "Operator" means the person authorized by the Corporation
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20 Commission to drill, complete, and operate a well for the intended
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21 development and production of oil, gas, or other hydrocarbons,
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22 regardless of whether the well is completed or produces any;
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Req. No. 3083 Page 1
1 2. "Plugging and site-restoration obligations" include all
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2 duties to plug, re-plug, repair, remediate, or reclaim a well or
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3 associated site;
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4 3. "Successor" means any person or entity that acquires,
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5 whether directly or indirectly, assets or operating interests from a
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6 transferring operator; and
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7 4. "Transfer" means any sale, assignment, conveyance, merger,
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8 division, or other transaction by which an operator or its assets,
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9 leases, wells, or operating interests are transferred to another
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10 person or entity.
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11 B. A successor shall be jointly and severally liable with the
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12 transferring operator for all plugging and site-restoration
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13 obligations associated with any well, lease, or operating interest
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14 acquired through a transfer unless the Corporation Commission
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15 determines, prior to the transfer, that the successor has provided
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16 sufficient financial assurance to satisfy all such obligations.
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17 C. Liability pursuant to subsection B of this section shall be
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18 established under the following conditions:
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19 1. The successor has inadequate capitalization to meet plugging
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20 and restoration obligations as determined by:
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21 a. submitted financial statements,
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22 b. the estimated cost to plug and restore all acquired
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23 wells as provided by the Commission, and
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24 c. posted financial assurance;
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Req. No. 3083 Page 2
1 2. The transfer is made to an entity that shares ownership,
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2 management, officers, or controlling persons with the transferring
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3 operator and the transfer would reasonably diminish the ability of
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4 the transferring operator or successor to satisfy plugging
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5 obligations;
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6 3. The transferring operator is insolvent, financially
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7 distressed, or subject to foreclosure, or has outstanding unpaid
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8 regulatory penalties or compliance orders at the time of the
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9 transfer;
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10 4. The transaction has the effect of avoiding or delaying
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11 plugging obligations including any transfer for nominal or non-arm's
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12 length consideration; or
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13 5. Any material misrepresentation or omission related to the
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14 condition of wells, estimated plugging costs, or financial assurance
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15 submitted to the Commission in connection with the transfer.
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16 D. 1. A successor shall conduct reasonable due diligence
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17 regarding the condition of all wells, associated liabilities, and
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18 plugging and site-restoration obligations prior to any transfer.
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19 2. A transferring operator shall provide accurate and complete
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20 information regarding well condition, production status, mechanical
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21 integrity, and estimated plugging costs.
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22 3. Failure by either the transferring operator or the successor
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23 to comply with this subsection shall constitute an independent basis
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24 for successor liability.
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Req. No. 3083 Page 3
1 4. The Corporation Commission shall promulgate rules to
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2 establish minimum due-diligence requirements including well
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3 inspection standards, documentation of mechanical integrity and
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4 environmental conditions, cost estimates for plugging and
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5 restoration, and disclosure of outstanding violations or enforcement
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6 orders.
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7 E. 1. A surface rights owner shall be entitled, upon written
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8 request, to receive from the operator and successor:
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9 a. documentation of due diligence pursuant to subsection
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10 D of this section,
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11 b. known environmental or mechanical conditions that may
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12 affect the surface or groundwater, and
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13 c. financial assurance information of the operator or
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14 successor submitted to the Commission.
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15 2. A surface rights owner may, within thirty (30) days of
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16 receiving notice of a proposed transfer or upon discovering a
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17 violation of this section, file with the Commission:
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18 a. a petition alleging inadequate due diligence,
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19 b. a request to stay approval of the transfer until
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20 deficiencies are corrected, or
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21 c. a request for an administrative hearing regarding the
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22 adequacy of the successor's financial assurance.
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23 3. A surface rights owner that is harmed by an operator's or
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24 successor's failure to perform due diligence or misrepresentation
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Req. No. 3083 Page 4
1 related to a transfer may bring a civil action in district court for
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2 injunctive relief, recovery of actual damages, including
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3 contamination or surface restoration costs, and attorney fees and
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4 court costs.
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5 4. An operator or successor shall not take adverse action
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6 against a surface rights owner for exercising rights pursuant to
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7 this section. Retaliatory conduct shall be subject to penalties as
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8 determined by the Commission.
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9 F. 1. No transfer of operator status, well ownership, or
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10 operating interest is effective unless approved by the Commission
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11 after review of due-diligence submissions, surface-owner notices,
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12 and financial assurance documents.
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13 2. The transferring operator shall provide written notice to
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14 all affected surface rights owners no later than thirty (30) days
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15 before Commission consideration of a transfer.
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16 3. Failure to provide notice invalidates the transfer and
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17 constitutes a violation of this section.
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18 4. The Commission may disapprove or stay any transfer if:
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19 a. due-diligence requirements have not been met,
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20 b. the successor lacks adequate financial assurance, or
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21 c. a surface-owner petition pursuant to paragraph 2 of
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22 subsection E of this section is pending and
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23 nonfrivolous.
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Req. No. 3083 Page 5
1 5. If an unapproved transfer occurs, the successor and
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2 transferring operator remain jointly and severally liable.
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3 G. 1. Nothing in this section shall be construed to limit the
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4 state's rights under fraudulent transfer law, environmental
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5 statutes, or common-law doctrines of successor liability.
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6 2. Nothing herein shall impair the priority of claims under
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7 federal bankruptcy law; however, successor liability shall apply to
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8 post-petition acquisitions or transactions approved by the
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9 bankruptcy court.
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10 SECTION 2. This act shall become effective November 1, 2026.
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12 60-2-3083 CN 1/6/2026 9:29:52 AM
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Req. No. 3083 Page 6Every fact on this page links to its source, starting with the official bill record.