Committee backs bill authorizing optional Corporation Commission fee and extension-led landowner education
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Summary
Senate Bill 21-73 would create a landowner energy negotiation and orphaned-well mitigation education program through OSU and Langston extension offices and authorize — but not require — a Corporation Commission fee of $1–$25 per disturbed acre (50% credit for dual use). The committee passed the measure unanimously. (Vote: 12–0)
Senator Boren presented a committee substitute for Senate Bill 21-73 that would establish a landowner energy negotiation, agriculture preservation and orphaned-well mitigation education program operating through Oklahoma State University and Langston extension offices and authorize the Corporation Commission to establish an optional "energy land remediation and education" fee on disturbed acres.
"This bill establishes a landowner energy negotiation, agriculture preservation and orphaned well mitigation education program to work through the OSU and the Langston Extension Offices," Senator Boren told the committee. She said the bill "authorizes the corporation commission but does not require them to establish an energy land remediation and education fee, not to exceed $25 an acre for disturbed land," and that dual-use projects would receive a 50 percent fee credit.
Members questioned the fiscal impact and who would ultimately pay a fee if implemented. Senator Bullard asked whether the committee substitute truly removed any fiscal impact and whether farmers would be burdened. Boren replied that the bill merely "authorizes" the Corporation Commission to implement a fee — it does not require one — and that contracting practices would likely place the fee in project capital expenditures rather than directly on landowners: "That would come out of the project CapEx. That's what they would pay for on their end."
The sponsor also said she inserted language to allocate funds proportionally among counties so that extension services are distributed locally rather than centralized.
A committee do-pass motion was made and seconded; the committee struck the title without objection and then approved the bill on a recorded vote, 12 ayes and 0 nays.
Senator Boren closed by urging that Oklahoma lead on combining land and energy expertise and by saying county extension offices can empower landowners to negotiate leases as they did during the oil-and-gas era.
