Senator Murdoch advances resolution to remove duplicate wildlife surety-bond rule for oil and gas

Senator Murdoch asked the Senate to advance SJR 49, a request bill from the Petroleum Alliance of Oklahoma aimed at revoking a Department of Wildlife rule that required oil and gas companies to post surety bonds in addition to the corporation commission’s existing requirement. "This revocation has been discussed with wildlife department, and they have agreed to this change," Murdoch said, arguing that the rule amounted to "double regulation" that increased costs for operators.

The measure drew technical questions from Senator Goodwin, who sought clarification about the language being substituted into the Oklahoma Administrative Code. "I am just trying to get an understanding…you are now replacing it with the Oklahoma Administrative Code. Is that correct?" Goodwin asked. Murdoch explained that the proposal would make the corporation commission the primary surety recipient and that the amendment under consideration would insert a specific OAC citation.

Goodwin also read aloud what appeared to be the surety schedule she was seeing in the replacement language — a $50,000 performance bond plus $5,000 per well — and sought confirmation of those amounts. Murdoch moved to lay the floor amendment over after being notified the issue had been addressed through other processes, saying negotiations between the industry and the wildlife department produced agreement and the amendment was not needed at that time.

After discussion and without recorded extended debate, the Senate advanced SJR 49 off third reading. The clerk recorded the result as 42 ayes and 3 nays.

The outcome sends the measure forward for subsequent consideration consistent with legislative procedure; Murdoch said the change responds to an industry request to avoid duplicative bonding requirements.