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STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
COMMITTEE SUBSTITUTE
FOR
SENATE BILL 2173 By: Boren
COMMITTEE SUBSTITUTE
An Act relating to agriculture; creating the
Landowner Energy Negotiation, Agricultural
Preservation, and Orphaned Well Mitigation Education
Act of 2026; providing short title; stating
legislative findings; defining terms; creating the
Landowner Energy Negotiation, Agricultural
Preservation, and Orphaned Well Mitigation Education
Program within the Oklahoma Cooperative Extension
Service; prescribing duties and program purposes;
requiring reporting; granting rulemaking authority;
establishing fees for energy land remediation and
education; providing for collection and distribution
of fees; creating a revolving fund; authorizing land
stewardship credits; authorizing rulemaking;
providing for the promulgation of rules; providing
for codification; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 4200 of Title 2, unless there is
created a duplication in numbering, reads as follows:
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A. This act shall be known and may be cited as the “Landowner
Energy Negotiation, Agricultural Preservation, and Orphaned Well
Mitigation Education Act of 2026”.
B. 1. The Legislature finds that landowners across this state
require improved access to high-quality professional education to
effectively negotiate oil, gas, wind, and solar energy agreements.
2. The Legislature further finds that the rapid expansion of
utility-scale wind and solar development necessitates education,
training, and professional development to ensure agricultural
operations, including grazing, crop production, and soil
conservation, may be preserved alongside energy production.
3. The Legislature additionally recognizes the need for
improved landowner awareness regarding environmental, safety, and
financial strategies posed by orphaned and abandoned oil and gas
wells.
4. It is the intent of the Legislature to support landowners
through the Oklahoma Cooperative Extension Service by providing
educational resources that promote informed negotiation, dual-use
land management, agricultural preservation, the voluntary
conservation and protection of soil and water resources for
beneficial use, and environmental stewardship.
5. The Legislature further finds that agricultural producers
and rural landowners face increasing challenges related to the
availability of water for beneficial use, including groundwater and
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surface water management, and that land use decisions associated
with energy development may affect the conservation and protection
of water resources.
6. The Legislature recognizes that the conservation and
protection of water resources for beneficial use, consistent with
existing law, is essential to the long-term viability of
agriculture, grazing, soil health, and rural economies, and that
education and technical assistance may assist landowners in
voluntarily incorporating water-protective practices into energy-
related land use agreements.
C. As used in this section:
1. “Abandoned or orphaned well” shall have the same meaning as
“abandoned well” as defined in Section 53.3 of Title 17 of the
Oklahoma Statutes;
2. “Dual-use land management” means land management strategies
that allow agricultural activities, including grazing, crop
cultivation, pasture improvement, or soil conservation, to continue
on land leased for or impacted by wind or solar energy
infrastructure;
3. “Extension Service” means the Oklahoma State University
Cooperative Extension Service and Langston University Cooperative
Extension Service;
4. “Landowner” means the legal owner of surface rights to real
property within this state; and
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5. “Water conservation” means voluntary practices and
management strategies that promote the beneficial use of water and
the conservation or protection of groundwater and surface water
resources, consistent with the authority of the Oklahoma Water
Resources Board and existing water rights law, including efficient
water use, soil moisture retention, runoff reduction, and prevention
of contamination.
D. There is hereby established within the Extension Service the
Landowner Energy Negotiation, Agricultural Preservation, and
Orphaned Well Mitigation Education Program. The program shall
provide education, legal assistance, and training to landowners
related to energy development and agricultural compatibility and the
voluntary conservation of soil and water resources, provided that
nothing in this act shall be construed to regulate water rights,
water use, or water allocation.
E. The Extension Service shall administer the program and may
use funds collected pursuant to this section for the following
purposes:
1. Development and delivery of professional education, legal
assistance, and training programs for landowners regarding:
a. negotiation of oil and gas leases, surface use
agreements, and related energy contracts,
b. negotiation of wind energy leases and turbine siting
agreements, including impacts on agricultural
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operations, access roads, drainage, and long-term land
value,
c. negotiation of solar energy leases, including ground
cover requirements, panel spacing and height, panel
technology requirements, fencing, vegetation
management, and livestock-compatible or agrivoltaics
system layouts,
d. incorporation of agricultural preservation clauses,
dual-use provisions, land restoration requirements,
and decommissioning assurances into energy contracts,
e. legal and financial considerations associated with
energy development on privately owned agricultural
land,
f. evaluation of risks and obligations related to energy
infrastructure on agricultural property,
g. negotiation of timelines and procedures for
dismantling energy-related equipment and any
potentially necessary land restoration requirements,
h. negotiation of clear ownership, responsibilities, and
procedures for any necessary repairs of energy-related
equipment during the life of the lease, and
i. voluntary practices related to the conservation and
protection of groundwater and surface water resources,
including educational discussion of lease provisions
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addressing water use during construction or operation,
protection of water wells regulated under state law,
drainage alteration, erosion control, stormwater
management, and post-construction land restoration,
provided that such education does not alter, impair,
or adjudicate any existing water right;
2. Creation and dissemination of educational, legal assistance,
and professional development materials, including model contract
provisions, negotiation guides, and decision-support tools related
to energy development and agricultural compatibility including
informational discussion of potential water conservation
considerations, provided such materials are educational in nature
and do not confer regulatory authority or modify existing law;
3. Conducting workshops, field demonstrations, or educational
programming related to:
a. agricultural co-location with wind and solar energy,
including grazing under solar arrays, wind-compatible
grazing systems, and soil protection during
construction,
b. identification, reporting, and remediation options
related to orphaned and abandoned oil and gas wells,
and
c. voluntary soil and water conservation practices
related to energy development, including soil moisture
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protection, runoff and drainage management, protection
of water wells and recharge areas, vegetative cover
systems, and drought-resilient land management
practices, presented for educational purposes only;
4. Supporting Extension Service personnel, including the hiring
or training of specialists with expertise in renewable energy
contracting, agricultural dual-use systems, energy law, soil and
water conservation practices consistent with existing water law, and
environmental remediation; and
5. Conducting outreach in rural and agricultural communities
with high levels of oil, gas, wind, or solar development, or
concentrations of orphaned or abandoned wells.
F. In administering the program, the Extension Service shall
coordinate with the Corporation Commission, county governments,
agricultural producer organizations, tribal governments, and other
relevant public or private stakeholders.
G. On or before December 31 of each year, the Extension Service
shall electronically submit a report to the President Pro Tempore of
the Senate and the Speaker of the House of Representatives that
includes:
1. An accounting of expenditures made pursuant to this section;
2. The number of landowners served;
3. Outcomes related to energy negotiation literacy;
4. Adoption of agricultural dual-use practices;
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5. Improvements in the landowner engagement related to orphaned
or abandoned well reporting;
6. Recommendations that shall be made publicly available on the
Extension Service’s website; and
7. Educational outcomes related to voluntary soil and water
conservation practices, including landowner participation in water-
protective programming or incorporation of informational water-
related considerations into energy-related land use agreements.
H. The Extension Service may adopt policies and procedures to
implement the provisions of this section.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 4201 of Title 2, unless there is
created a duplication in numbering, reads as follows:
There is hereby created in the State Treasury a revolving fund
for the Oklahoma Department of Agriculture, Food, and Forestry to be
designated the “Landowner Energy Negotiation Revolving Fund”. The
fund shall be a continuing fund, not subject to fiscal year
limitations, and shall consist of all monies received by the
Department from the fees authorized pursuant to Section 3 of this
act provided for the purpose of supporting the Landowner Energy
Negotiation, Agricultural Preservation, and Orphaned Well Mitigation
Education Program. All monies accruing to the credit of the fund
are hereby appropriated and may be budgeted and expended by the
Department for the purpose provided for in this act. Expenditures
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from the fund shall be made upon warrants issued by the State
Treasurer against claims filed as prescribed by law with the
Director of the Office of Management and Enterprise Services for
approval and payment.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 4202 of Title 2, unless there is
created a duplication in numbering, reads as follows:
A. As used in this section:
1. “Commission” means the Corporation Commission;
2. “Cooperative Extension Service” means the Oklahoma State
University Cooperative Extension Service and the Langston University
Cooperative Extension Service;
3. “Department” means the Oklahoma Department of Agriculture,
Food, and Forestry;
4. “Disturbed acreage” means the total surface area within this
state that is occupied or materially altered by an energy project;
and
5. “Renewable energy project” means a facility or
infrastructure used for the generation or storage of electricity
from renewable resources, including wind energy facilities, solar
energy facilities, battery or energy storage facilities, and
collection or transmission infrastructure associated with a
renewable energy project.
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B. 1. The Corporation Commission may promulgate rules to levy
and collect a State Energy Land Remediation and Education Fee on
energy projects located within this state.
2. The fee shall be assessed annually and shall not exceed
Twenty-five Dollars ($25.00) per acre of disturbed acreage,
beginning on the date construction commences and continuing until
the date of decommissioning or completion of site reclamation.
3. The fee authorized by this section shall be a fee on acres
disturbed and not a tax on energy, shall be reasonably related to
land disturbance impacts, and shall not regulate the siting,
permitting, or operation of energy facilities.
C. 1. All fees authorized pursuant to this section shall be
deposited in the Landowner Energy Negotiation Revolving Fund
established in Section 2 of this act.
2. Not less than eighty percent (80%) of all monies deposited
to the fund shall be distributed to the Cooperative Extension
Services, and such monies shall be divided equally as follows:
a. fifty percent (50%) to the Oklahoma State University
Cooperative Extension Service, apportioned equally to
counties in which there is an Oklahoma State
University Cooperative Extension Service office
located, and
b. fifty percent (50%) to the Langston University
Cooperative Extension Service, apportioned equally to
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counties in which there is a Langston University
Cooperative Extension Service office located.
3. Monies distributed pursuant to paragraph 2 of this
subsection shall be used solely to support the Landowner Energy
Negotiation, Agricultural Preservation, and Orphaned Well Mitigation
Education Program created pursuant to Section 1 of this act,
including education, outreach, and land stewardship support for
landowners affected by renewable energy development, agricultural
dual-use practices, water conservation, or abandoned or orphaned oil
and gas wells.
4. Not more than ten percent (10%) of all monies collected
pursuant to this section may be retained by the Department for the
administration of the Landowner Energy Negotiation Revolving Fund
established in Section 2 of this act.
5. Not more than ten percent (10%) of all monies collected
pursuant to this section may be retained by the Commission for the
purpose of administering this section, including fee collection,
verification of disturbed acreage, processing of stewardship
credits, auditing, reporting, and rulemaking.
D. 1. The owner or operator of a renewable energy project
shall be eligible for a stewardship credit if the project
incorporates agrivoltaic or dual-use land management practices.
2. Eligible practices may include:
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a. grazing of livestock beneath or around renewable
energy facilities,
b. cultivation of crops, pollinator habitats, or native
vegetation compatible with energy infrastructure,
c. soil health practices that prevent erosion or
compaction, or
d. site design that preserves agricultural productivity
during the operational life of the project.
3. The Commission shall establish a credit of fifty percent
(50%) of the annual per-acre fee for acreage actively managed using
approved agrivoltaic or dual-use practices.
4. Eligibility for a credit shall be demonstrated through
documentation, site management plans, or technical verification or
certification from the Oklahoma Department of Agriculture, Food, and
Forestry.
E. The Oklahoma Department of Agriculture, Food, and Forestry
shall promulgate rules in consultation with the Corporation
Commission, the Oklahoma State University Cooperative Extension
Service, and the Langston University Cooperative Extension Service
as necessary to implement and administer the fund established in
Section 2 of this act.
F. Nothing in this section shall be construed to authorize this
state to prohibit renewable energy projects or to impose operational
standards unrelated to the assessment or administration of the fee.
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SECTION 4. This act shall become effective November 1, 2026.
60-2-3642 YG 3/2/2026 11:26:37 AM