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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
HOUSE BILL 1707 By: Worthen
AS INTRODUCED
An Act relating to oil and gas; amending 52 O.S.
2021, Section 318.4, which relates to surety bonds
for location damages; providing that an operator
shall include operators of active wells; requiring
liability coverage or surety bond; increasing surety
bond amount; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 52 O.S. 2021, Section 318.4, is
amended to read as follows:
Section 318.4. A. Every operator, which shall, for the
purposes of this section, include the meaning of operator as defined
in Section 318.2 of this title and all operators of active wells
doing business in this state shall carry a liability policy with a
minimum coverage amount of Five Hundred Thousand Dollars
($500,000.00), or shall file a corporate surety bond, letter of
credit from a banking institution, cash, or a certificate of deposit
with the Secretary of State in the sum of Twenty-five Thousand
Dollars ($25,000.00) Five Hundred Thousand Dollars ($500,000.00)
conditioned upon compliance with Sections 318.2 through 318.9 of
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this title for payment of any location damages due which the
operator cannot otherwise pay. The Secretary of State shall hold
such corporate surety bond, letter of credit from a banking
institution, cash or certificate of deposit for the benefit of the
surface owners of this state and shall ensure that such security is
in a form readily payable to a surface owner awarded damages in an
action brought pursuant to this act. Each corporate surety bond,
letter of credit, cash, or certificate of deposit filed with the
Secretary of State shall be accompanied by a filing fee of Ten
Dollars ($10.00).
B. The bonding company or banking institution shall file, for
such fee as is provided for by law, a certificate that said bond or
letter of credit is in effect or has been canceled, or that a claim
has been made against it in the office of the court clerk in each
county in which the operator is drilling or planning to drill. Said
bond or letter of credit must remain in full force and effect as
long as the operator continues drilling operations in this state.
Each such filing shall be accompanied by a filing fee of Ten Dollars
($10.00).
C. Upon deposit of the bond, letter of credit, cash, or
certificate of deposit, the operator shall be permitted entry upon
the property and shall be permitted to commence drilling of a well
in accordance with the terms and conditions of any lease or other
existing contractual or lawful right.
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D. If the damages agreed to by the parties or awarded by the
court are greater than the bond, letter of credit, cash, or
certificate of deposit posted, the operator shall pay the damages
immediately or post an additional bond, letter of credit, cash, or
certificate of deposit sufficient to cover the damages. Said
increase in bond, letter of credit, cash, or certificate of deposit
shall comply with the requirements of this section.
SECTION 2. This act shall become effective November 1, 2025.
60-1-10709 JL 01/14/25