In the latter half of 2024, important new surety rules went into effect specifically targeting commercial disposal well facilities in Oklahoma. Under these changes, all disposal facilities—including those active before this rule—are now subject to specific surety requirements on a per-site basis.
For operators, this means that the financial security requirements you may have relied on for years have changed significantly. Compliance is no longer optional: you must either meet the new standards or face the prospect of closing facilities that cannot comply.
Key Provisions: Chapter 10, Oil and Gas Conservation, Subchapter 5-5(f)
Effective October 1, 2024, operators of commercial disposal well facilities must adhere to the following:
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Surety Agreement Requirement
- Operators must file an agreement with the Conservation Division’s Surety Department to properly plug the well and reclaim the site when operations end.
- This agreement must be backed by surety, ensuring the Commission can recover costs if an operator fails to comply.
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Commission-Set Surety Amounts
- The Commission will determine the required surety for each facility based on factors such as well depth, facility size, plugging and reclamation costs, monitoring needs, pit closure, trucking, remediation, and earthwork.
- Surety may be adjusted over time for good cause.
- Acceptable forms include corporate surety bonds, CDs, irrevocable commercial letters of credit, or other approved instruments.
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Applicability to Existing Facilities
- Even facilities authorized before the rule’s effective date must comply.
- Operators of older facilities have one year from October 1, 2024, to meet the new requirements or shut down.
What This Means for Operators
This rule marks a significant shift in Oklahoma’s regulatory environment. Where once commercial disposal wells benefited from looser statewide surety standards, now every operator must demonstrate site-specific financial responsibility. While the goal is to reduce long-term liability for the state and taxpayers, it also raises immediate compliance costs for operators who have not previously posted site-level surety.
At DisposalPros, we specialize in helping operators navigate these new requirements. Our team can work with you to determine the most cost-effective way to comply—whether that means restructuring existing surety, evaluating site-specific risks, or preparing closure plans.
📞 Contact us today to learn how we can help you stay compliant while minimizing costs under Oklahoma’s new surety rules.
