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Bill

HB 3804

Insurance; property insurance; abandoned oil and gas wells; coverage; subrogation; effective date.

2026 Regular Session Introduced by Chris Sneed

Oklahoma bill establishes property insurance coverage requirements and subrogation rights for damage caused by abandoned oil and gas wells, potentially shifting remediation costs between insurers and responsible parties.

Second Reading referred to Rules
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WeVote Research Nonpartisan
Bill Summary · HB 3804

Legislative bill overview

HB 3804 modifies Oklahoma's property insurance regulations regarding coverage and liability for abandoned oil and gas wells. The bill establishes new subrogation rights and coverage requirements for insurers dealing with properties affected by orphaned wells. It includes provisions addressing how insurers handle claims and recover costs related to well abandonment issues.

Why is this important

Oklahoma has thousands of abandoned oil and gas wells that pose environmental and property damage risks, including ground subsidence, contamination, and structural damage. Insurance coverage gaps for these damages have created disputes between property owners and insurers, making this legislation relevant to homeowners, energy companies, and insurers operating in oil-and-gas-heavy regions. The subrogation provisions could shift financial responsibility for well remediation costs between private insurers and potentially state/federal programs.

Potential points of contention

  • Coverage scope clarity: Debate over whether insurers must cover all well-related damages or only specific categories, potentially affecting premium costs and availability in affected areas
  • Subrogation mechanics: Questions about how insurers can recover costs from responsible parties (often defunct companies) and whether taxpayers ultimately bear remediation expenses
  • Orphan well distinction: Unclear whether coverage applies equally to wells with identifiable responsible parties versus truly abandoned wells with no liable party to pursue

Compiled from official sources — confirm details with the bill’s official record.

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