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Committee advances bill to sharply increase well‑plugging revenue and tighten sureties
Summary
House Bill 13‑70 would change the formula that funds the state well‑plugging program, increase surety bond requirements and aim to boost annual plugging funds from about $2.5 million to roughly $20 million; the committee passed the bill unanimously.
The House Energy and Natural Resources Committee voted to advance House Bill 13‑70, a multipronged proposal to raise funds and financial assurances for plugging orphaned or abandoned oil and gas wells in Oklahoma.
Chairman Bowles, who explained the bill, said the state currently collects about $2.5 million a year through an excise tax that flows to the Corporation Commission’s well‑plugging fund. Bowles told the committee Oklahoma’s known backlog of wells that need plugging is about 18,000 and that, at an average cost of about $25,000 per well, the present funding level results in roughly 100 wells plugged per year while the list grows faster than wells are closed.
Bowles said the package in the bill would increase surety bond requirements for operators, change the fund formula and — if implemented as described in committee — could generate about $20 million per year for plugging. He said higher volume of contracting could lower per‑well costs and that he is discussing potential federal matching funds with Congressman Cole’s office.
Representative Waldron questioned whether dedicating the excise tax to the plugging fund would bypass annual appropriations and create an "on autopilot" funding stream. Bowles replied that the legislature could change the formula later and that the bill aims to address a growing state liability and environmental and safety concerns for landowners.
Representative Waldron also asked about current plug rates; Bowles said the $2.5 million average funds roughly 100 wells per year at $25,000 per well and that the bill — paired with other reforms — could raise that to about 1,000 wells per year if the program produced $20 million annually and per‑well costs dropped to $20,000.
Representative LePak raised technical questions about plugging in developed neighborhoods and whether the program funds research or new techniques for difficult sites; Bowles said the Corporation Commission prioritizes risk, estimates costs, and advertises contracts for registered contractors to bid on work. The committee recorded a 10‑aye, 0‑nay vote to pass the bill out of committee.
The transcript does not include the bill’s exact statutory language, the revised formula text, or a formal fiscal note; committee discussion focused on policy goals, estimates of scale, and procedural questions about funding and procurement.
