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STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
HOUSE BILL 4455 By: Newton
AS INTRODUCED
An Act relating to oil and gas; amending 52 O.S.
2021, Section 86.7, as last amended by Section 1,
Chapter 249, O.S.L. 2024 (52 O.S. Supp. 2025, Section
86.7), which relates to definitions; modifying
definition; amending 52 O.S. 2021, Section 86.8,
which relates to the Oklahoma Brine Production Act;
making certain exception for the extraction of
iodine; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 52 O.S. 2021, Section 86.7, as
last amended by Section 1, Chapter 249, O.S.L. 2024 (52 O.S. Supp.
2025, Section 86.7), is amended to read as follows:
Section 86.7. A. As used in the Oil and Gas Produced Water and
Waste Recycling and Reuse Act:
1. "Commission" means the Oklahoma Corporation Commission;
2. "Constituent elements" means salts, metals, elements and
other mineralized substances that are naturally occurring and
dissolved, entrained or suspended in subterranean water in situ and
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after extraction from the ground, suspended in the oil and gas
produced water and waste or as part of the brine, as defined in
paragraph 4 of Section 502 of Title 17 of the Oklahoma Statutes.
However, for the purposes of this act the term shall not mean
iodine;
3. "Nonoperator" means persons, other than the operator,
contributing to the cost and expense of drilling and completing or
operating a well for the intended development and production of oil,
gas or other hydrocarbons, regardless of whether the well is
completed or produces any oil or gas;
4. "Oil and gas produced water and waste" means the fluid
containing salt or other mineralized substances, hydraulic
fracturing fluid, flowback water, formation water, injection water
and any chemicals added downhole, associated with the drilling
completion or production of an oil or gas well, incidental to or
extracted from hydrocarbon-bearing strata during the drilling. Oil
and gas produced water and waste shall also include hydrogen sulfide
and carbon oxides emissions produced as a byproduct of natural gas
production. Except as provided in Section 86.8 of this title, oil
and gas produced water and waste, including its constituent
elements, shall not be considered brine for purposes of the Oklahoma
Brine Development Act;
5. "Operator" means the person authorized by the Corporation
Commission to drill, complete and operate a well for the intended
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development and production of oil, gas or other hydrocarbons,
regardless of whether the well is completed or produces any;
6. "Person" means any individual, partnership, corporation,
limited liability company or any type of association;
7. "Recycled water" means oil and gas produced water and waste
that has been reconditioned or treated by mechanical, chemical,
thermal, or any other commercially viable technological processes
available into a reusable form; and
8. "Treated constituents" means any chemical, compound or other
byproduct naturally occurring in the subterranean water that is
removed from oil and gas produced water and waste through
reconditioning or treating of the fluid by mechanical, chemical,
thermal, or any other commercially viable technological processes
available.
B. The Legislature finds that oil and gas produced water and
waste has minimal or no intrinsic value without substantial
expenditures to process, treat or recycle the oil and gas produced
water and waste and declares it desirable, necessary and in the
public interest to designate the parties who shall own and be
responsible for the handling, transfer and disposition of the oil
and gas produced water and waste. The Legislature recognizes that
it has imposed upon the operator of an oil and gas lease a duty to
safely dispose of oil and gas produced water and waste, as defined
in the Oil and Gas Produced Water and Waste Recycling and Reuse Act.
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It is further found to be in the public interest to foster,
encourage and promote the development of methods and means to
economically process, treat and recycle oil and gas produced water
and waste for beneficial uses, including the commercial extraction
of constituent elements from the oil and gas produced water and
waste and to ensure appropriate disposal in accordance with
Corporation Commission rules.
C. Prior to its extraction from the ground, subterranean water,
including its constituent elements, is the property of the owner of
the surface estate, as defined in paragraph 9 of Section 802 of this
title and shall be subject to the right of the mineral owner or the
oil and gas lessee of the mineral owner, or both, to extract the
subterranean water as part of the oil and gas produced water and
waste as is reasonably necessary for, or incident to, the
exploration, exploitation or extraction of hydrocarbons. Nothing
contained in the Oil and Gas Produced Water and Waste Recycling and
Reuse Act shall be construed to:
1. Prevent the owner of the surface estate from being
considered the brine owner, as defined by paragraph 5 of Section 502
of Title 17 of the Oklahoma Statutes, for purposes of Section 86.8
of this title or the Oklahoma Brine Development Act; or
2. Limit the ability of the owner or owners of the surface
estate to enter into any legally binding contract with persons for
the payment of money or other valuable consideration for the
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extraction of subterranean water, including the constituent elements
contained therein, or brine, as defined in paragraph 4 of Section
502 of Title 17 of the Oklahoma Statutes, from the property of the
owner or owners. However, if said extraction of subterranean water
or brine is to be done as part of oil and gas operations, the
contract shall be entered into prior to the filing of the drilling
permit of the oil and/or gas well. If the contract is entered into
after the filing of the drilling permit of the oil and/or gas well,
the contract shall be with the operator, or with the consent of the
operator, any other person or persons. The operator shall not
withhold consent unreasonably. Any such contract and the use or
disposal of oil and gas produced water and waste, shall be subject
to the requirements and limitations set forth in Section 86.8 of
this title and subject to any and all applicable governmental laws,
rules and regulations and subordinate to any preexisting, legally
binding, arms-length contracts relating to the use or disposal of
oil and gas produced water and waste. Provided, however, that the
contracts shall not result in additional costs or delays to the
rights of the operator to extract subterranean water reasonably
necessary for, or incident to, the exploration, exploitation or
extraction of hydrocarbons. Evidence, in the form of an affidavit,
of any contract entered into under the terms of the Oil and Gas
Produced Water and Waste Recycling and Reuse Act may be filed in the
office of the county clerk for the county in which the lands
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described in the contract are located. The affidavit shall set out
the names and address of each party to the contract, the legal
description of the lands covered by the contract and the effective
date of the contract. Once filed, the affidavit shall serve as
constructive notice of the contract under the Oil and Gas Produced
Water and Waste Recycling and Reuse Act.
D. 1. Subject to the requirements and limitations set forth in
subsection C of this section and Section 86.8 of this title and
unless otherwise provided by Corporation Commission order, an oil or
gas lease, brine lease, recycling agreement, surface use agreement,
contract, bill of sale or another legally binding document:
a. the operator or operators, and the nonoperator or
nonoperators, of an oil and/or gas well shall be the
owner or owners of the oil and gas produced water and
waste extracted from the ground through the borehole
of the oil or gas well, and
b. the operator or operators, and the nonoperator or
nonoperators, shall have the right to use, possess,
handle, dispose of, transfer, sell, convey, transport,
process, recycle, reuse or treat the produced water
and waste and shall also have the exclusive right to
obtain proceeds for any of the uses of the oil and gas
produced water and waste or some portion thereof,
including recycled water and treated constituents.
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2. Subject to the requirements and limitations set forth in
subsection C of this section and Section 86.8 of this title and
unless otherwise provided by Corporation Commission order, oil or
gas lease, brine lease, recycling agreement, surface use agreement,
contract, bill of sale or another legally binding document, until
there is a transfer to another person, the operator or operators,
and the nonoperator or nonoperators, shall be responsible for the
use, disposition, transfer, sale, conveyance, transport, recycling,
reuse, treatment or disposal of the transferred oil and gas produced
water and waste, recycled water and treated constituents or any
other byproducts.
3. Subject to the requirements and limitations set forth in
subsection C of this section and Section 86.8 of this title and
unless otherwise provided by Corporation Commission order, an oil or
gas lease, brine lease, recycling agreement, surface use agreement,
contract, bill of sale or another legally binding document:
a. when oil and gas produced water and waste is
transferred to a person for the purpose of processing
or treating for subsequent beneficial use, disposal or
both, the transferred material, recycled water and
treated constituents shall be the property of that
person until such time that the person disposes of the
produced water and waste in accordance with Commission
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rules or there is a transfer of the material to a
subsequent person, and
b. transferred oil and gas produced water and waste shall
be the property of such transferee and the transferees
shall have control of and responsibility for the
substance, including the right to use, possess,
handle, dispose of, transfer, sell, convey, transport,
process, recycle, reuse or treat the produced water
and waste and to obtain proceeds for any uses of the
substance or any portion thereof, including recycled
water and treated constituents.
E. Except as provided in paragraph 1 of subsection D of this
section, a person is not liable in tort for consequences of
subsequent use of recycled water or treated constituents if that
person:
1. Processes oil and gas produced water and waste in order to
produce recycled water or treated constituents that are generally
considered in the oil and gas industry to be suitable for use in
connection with drilling, completion or production operations of oil
and gas or both;
2. Transfers the recycled water or treated constituents, or
both, to another person for use in connection with oil and gas
drilling, completion or production operations; or
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3. Captures or sequesters hydrogen sulfides and carbon oxides
in connection with natural gas production for the purpose of
protecting the environment.
This subsection shall not be construed to affect the liability
of a person in possession of oil and gas produced water and waste,
recycled water or treated constituents, or both, in an action
brought by a person for damages for personal injury, death or
property damage arising from a release of or exposure to any of
these substances.
F. A person who acquires possession of oil and gas produced
water and waste for the purpose of recycling it for subsequent
beneficial use may dispose of the oil and gas produced water and
waste, including recycled water, treated constituents or other
byproducts of the recycling process, in his or her permitted
disposal well or wells, regardless of the source or prior ownership
of the oil and gas produced water and waste. The disposal shall not
require a commercial disposal well permit from the Corporation
Commission but shall otherwise be subject to any other permit
restrictions applicable to disposal wells.
SECTION 2. AMENDATORY 52 O.S. 2021, Section 86.8, is
amended to read as follows:
Section 86.8. Notwithstanding any other provision in this act,
if oil and gas produced water and waste is utilized for the purpose
of processing the produced water and waste by mechanical or chemical
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processes for the extraction of constituent elements for commercial
purposes, the oil and gas produced water and waste shall be
considered brine under the Oklahoma Brine Development Act. The
operating activity and the ownership of the oil and gas produced
water, including the constituent elements contained therein,
including the entitlement to and sharing of proceeds from the
extraction and sale of the constituent elements or effluent, shall
be subject to the Oklahoma Brine Development Act and the operator or
other person extracting or utilizing the oil and gas produced water
and waste shall comply with the provisions of the act. The Oklahoma
Brine Development Act shall not apply to oil and gas produced water
and waste that is reused or recycled solely for the purpose of use
in oil and gas operations or produced water and waste that is
transferred to or purchased by iodine producers solely for the
extraction of iodine for commercial purposes.
SECTION 3. This act shall become effective November 1, 2026.
60-2-13974 JBH 11/25/25