Oklahoma lawmakers are looking to revamp bonding requirements for oil and gas producers, aiming to address the growing problem of abandoned wells across the state. Currently, operators pay the same $25,000 surety amount to the Oklahoma Corporation Commission (OCC), whether they own a handful of wells or hundreds. That could soon change under House Bill 1369, introduced by Rep. Brad Boles (R-Marlow), which would implement a tiered bonding system starting in November 2025.
The proposed bill would keep the $25,000 minimum for small operators with up to 10 wells, but increase the amount to $50,000 for companies with 11 or more wells, with a cap set at $150,000. Sen. Grant Green (R-Wellston) has introduced a similar measure in the Senate, signaling bipartisan support for tougher financial obligations on larger operators. The goal, according to Boles, is to ensure more industry funding is available to cover the cost of plugging abandoned wells when companies go out of business.
The push for reform follows a recent OCC report that highlighted how Oklahoma’s low bonding requirements have enabled shell companies to purchase and abandon wells, leaving the state to clean up the mess. Many of these wells have been stripped for parts and left in disrepair, creating environmental and public health risks, including the release of methane gas, a major contributor to climate change.
In addition to the bonding overhaul, lawmakers are also pushing House Bill 1370, which would increase funding for the OCC’s abandoned well-plugging program by boosting the percentage of oil and gas excise taxes allocated to the fund, capping it at $20 million per year. Currently, the program generates about $2-3 million annually, but Boles says that’s not nearly enough to keep up with the state’s growing list of orphaned wells—now estimated at over 20,000.
The OCC received $25 million in federal funding in 2022 through the Infrastructure Investment and Jobs Act, which helped plug over 1,100 wells, but the state was expecting a total of $102 million. That additional money is now on hold due to an executive order from President Donald Trump, leaving the state searching for alternative solutions.
Boles argues that without significant increases in funding, Oklahoma will continue to fall further behind in its efforts to manage the abandoned well crisis. “We’re adding more wells to the list every year than we’re plugging,” he said. “If we can get this bill passed, we believe we can plug up to 1,000 wells per year.”
As more people move to Oklahoma, many are discovering abandoned wells on their properties, adding urgency to the issue. With the OCC’s plugging list growing every year, lawmakers are hoping these bills will provide the state with the financial tools needed to clean up old wells, reduce environmental risks, and prevent more operators from leaving behind unfunded liabilities. Whether the legislation passes remains to be seen, but one thing is clear—Oklahoma’s abandoned well problem isn’t going away anytime soon.
