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HB 1369

Oil and gas; evidence of financial ability for drilling and operating wells; modifying surety amount and types; effective date.

2026 Regular Session Introduced by Brad Boles and 1 co-sponsor

Oklahoma HB 1369 expands financial instruments oil and gas operators can use to demonstrate drilling ability while modifying surety bond requirements, affecting both industry costs and public well-abandonment liability.

Approved by Governor 05/03/2025
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WeVote Research Nonpartisan
Bill Summary · HB 1369

Legislative bill overview

HB 1369 modifies Oklahoma's requirements for oil and gas operators to demonstrate financial ability to drill and operate wells. The bill changes surety bond amounts and expands the types of financial instruments operators can use to prove they have adequate funds for well operations and potential abandonment costs.

Why is this important

Surety requirements protect the public from bearing cleanup costs when operators abandon wells or go bankrupt. These changes directly affect how much financial security the state requires from drilling companies and what forms that security can take, influencing both industry operating costs and taxpayer protection levels.

Potential points of contention

  • Financial protection adequacy: Reducing or restructuring surety requirements may lower operator compliance costs but could increase taxpayer liability if companies default on well abandonment obligations
  • Industry competitiveness vs. environmental risk: Expanding acceptable financial instruments (beyond traditional bonds) may help smaller operators enter the market but could introduce uncertainty about financial instrument reliability during economic downturns
  • Regulatory flexibility: Broader surety options give regulators more discretion but may create inconsistent enforcement standards across different operator types and financial situations

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

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