STATE OF OKLAHOMA

1st Session of the 53rd Legislature (2011)

SENATE BILL 113	By:	Ivester

AS INTRODUCED

An Act relating to seismic exploration; amending 52 O.S. 2001, Section 318.22, which relates to permitting and regulation of seismic exploration; modifying procedures for surety requirements; requiring surety to be filed with the Secretary of State in certain amount prior to issuance of permit; requiring the Corporation Commission to determine amount of bond and duration of certain surety; authorizing certain interagency agreement and authorizing promulgation of rules; providing for noncodification; and providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     AMENDATORY     52 O.S. 2001, Section 318.22, is amended to read as follows:
Section 318.22  A.  The Corporation Commission is hereby directed and authorized to promulgate rules governing the operations of seismographic exploration for the purpose of protecting the interests and property of the citizens of this state.
B.  Any person, firm, corporation or entity desiring to commence any seismographic exploration in this state shall, prior to any such activity, be duly registered with the Corporation Commission and shall be required to apply for a permit for each separate seismic exploration.
C.  Rules promulgated by the Commission governing all seismic exploration operations shall include, but not be limited to, requirements for:
1.  Applicants to post a form of financial surety guarantee, the form and amount to be determined by the Commission and to follow the requirements set forth subsection G of this section, which shall remain in effect until release is authorized by the Commission;
2.  Applicants to notify all surface owners of property where seismic exploration will occur at least fifteen (15) days prior to commencement of seismic exploration.  If the applicant has obtained specific written permission and has given actual notice of intent to conduct seismic exploration any time before fifteen (15) days prior to conducting seismic exploration, such action shall be considered sufficient notification for the purposes of this section.  Notification by U.S. mail shall be sufficient for the purposes of this section, provided the notice is postmarked at least fifteen (15) days prior to commencement of any seismic exploration; and
3.  Applicants to be permitted for each seismic exploration operation.
D.  The notice required in subsection C of this section shall be sent by U.S. mail, include a copy of the oil or gas lease or seismic permit authorizing the use of the surface for seismic exploration and contain the following information:
1.  Name of the company conducting seismic exploration;
2.  Anticipated date of seismic exploration; and
3.  Any other pertinent information the Commission deems appropriate and relevant for the protection of surface owners.
E.  The Commission is further directed to promulgate rules to implement a system to register complaints against any person, firm or corporation conducting seismic exploration.  The Commission may determine if and when a complaint has been adequately resolved.
F.  Any person, firm, corporation or entity which conducts any seismic exploration without a permit by the Commission, or in any other manner violates the rules of the Commission governing such exploration shall be subject to a penalty of One Thousand Dollars ($1,000.00) per violation per day by the Commission, in addition to any other legal remedy provided by law.
G.  1.  Prior to seeking a permit from the Commission as required by subsection B of this section and performing any seismic activity, an applicant shall file with the Secretary of State a surety bond, cash, certificate of deposit, or other instrument acceptable to the Secretary of State in an amount determined by the Commission to indemnify the owners of property within this state for physical damages to the property resulting from any seismic exploration.
2.  The applicant shall be required to show proof such surety is on file with the Secretary of State before the Commission shall issue a permit for any seismic activity.
3.  The Commission shall notify the Secretary of State when a permit holder’s liability has expired and the permit holder’s bond or other surety may be released.
H.  In the event of property damage due to seismic exploration activities, partial or complete forfeiture of the surety bond or other instrument on file with the Secretary of State shall be determined by the appropriate court of civil jurisdiction.
SECTION 2.     NEW LAW     A new section of law not to be codified in the Oklahoma Statutes reads as follows:
The Secretary of State and the Corporation Commission shall enter into interagency agreements and are authorized to promulgate any rules necessary to implement the provisions of this act.
SECTION 3.  This act shall become effective November 1, 2011.

53-1-1324	MJM	1/3/2011 4:06:11 AM