STATE OF OKLAHOMA

2nd Session of the 54th Legislature (2014)

HOUSE BILL 2905	By:	Derby

AS INTRODUCED

An Act relating to oil and gas; amending 52 O.S. 2011, Section 86.2, which relates to the definition of the waste of oil; clarifying statutory language; and providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     AMENDATORY     52 O.S. 2011, Section 86.2, is amended to read as follows:
Section 86.2  The term "waste", as applied to the production of oil, in addition to its ordinary meaning, shall include economic waste, underground waste, including water encroachment in the oil or gas bearing strata; the use of reservoir energy for oil producing purposes by means or methods that unreasonably interfere with obtaining from the common source of supply the largest ultimate recovery of oil; surface waste and waste incident to the production of oil in excess of transportation or marketing facilities or reasonable market demands.  The production of oil in the State of Oklahoma in such a manner and under such conditions as to constitute waste as in this act defined in this section is hereby prohibited, and the Commission shall have authority, and is charged with the duty, to make rules, regulations, and orders for the prevention of such waste, and for the protection of all fresh water strata and oil or gas bearing strata encountered in any well drilled for oil or gas.
SECTION 2.  This act shall become effective November 1, 2014.

54-2-9802	KB	01/15/14