Following an investigation by The Frontier and ProPublica, an Oklahoma state senator has introduced a bill that would tighten regulations on how oil field wastewater is injected underground.
For the legislative session that begins Monday, Democratic Sen. Mary Bolen, a member of the House Energy Committee, has introduced four oil and gas bills aimed at curbing industrial pollution and increasing transparency for landowners.
In Oklahoma, legislation to increase oversight of oil and gas production, one of the state’s largest industries, is often not expected to pass for a long time, but several laws have been passed in recent years. The bill must overcome industry opposition and gain support from Republican-controlled legislative leaders and the state’s Republican governor.
But Bolen said the threat to the state’s groundwater is too great to ignore. “My responsibility is to pay attention to things that can solve problems for real Oklahomans,” Bolen said, crediting the study with helping bring attention to the massive pollution caused by oil and gas injection.
The Frontier and ProPublica found that there have been more than 150 incidents in recent years where oil field wastewater has come up from the ground, releasing toxic chemicals, including some that can cause cancer, near homes, farmland and drinking water sources.
News outlets also revealed that officials with the Oklahoma Corporation Commission, the state’s oil and gas regulator, have known about the risks for years and identified excessively high injection pressures as the primary cause of toxic releases, known as purges. But regulators have done little to address the issue. A spokesperson for the commission previously told news outlets that the commission prefers to “lead with a handshake rather than a hammer” and has not fined any companies for purges in the past five years.
The commission previously noted that the state has taken steps in recent years to reduce new well injection pressure and is committed to “doing the right thing, holding operators accountable, protecting Oklahoma and its resources, and providing fair and balanced regulation.”
A spokesperson for the Oklahoma Corporation Commission declined to comment on Bolen’s bill.
One of Boren’s bills, SB 1419, would require oil and gas companies to assess whether the pressure of injecting wastewater could crack rock formations deep underground, allowing toxic liquids to travel for miles. Additionally, companies would be required to protect drinking water sources by conducting tests to ensure that toxic wastewater is not disseminated after being injected underground. The test results will be reported to state regulators, who will be required to investigate the problematic injection wells and reduce the pressure at which the wastewater is delivered.
Another of Boren’s bills, SB 1474, would create an oilfield wastewater fee to pay for groundwater testing, land remediation and well cleanup. Based on estimates of the amount of wastewater produced annually in Oklahoma, the proposed fee of $0.01 per barrel of wastewater produced in the state would generate millions of dollars each year. This can amount to hundreds of thousands of dollars a year for major oil companies. Oil and gas companies may be able to earn a credit for this fee by investing in technology that recycles wastewater.
Sen. Grant Green, the Republican chairman of the Energy Committee, declined to comment on Bolen’s proposed bill. The Oklahoma Energy Producers Alliance, which represents small oil and gas companies, declined to comment on the bill. The Oklahoma Petroleum Alliance did not respond to a request for comment.
Boren’s bills, including SB 1472, also aim to protect property owners who operate oil and gas operations on their land. In Oklahoma, landowners do not necessarily own the oil or gas beneath their land. Bolen’s proposed bill would increase transparency by requiring companies to warn landowners before selling wells on their property.
This is important because older wells with reduced production are often sold to increasingly capital-starved companies that don’t have the means to pay for cleanup. When these companies go bankrupt, the cleanup costs are often borne by taxpayers, while landowners must endure the presence of these wells on their properties and the contamination risks they pose. Unplugged wells abandoned by industry can leak toxic chemicals into local groundwater, while also spewing out large amounts of methane, a powerful greenhouse gas.
Bolen said landowners now often find out that a well on their property has changed hands when they “see a new logo on the gate.”
Two of Boren’s bills address the financial ability of oil and gas companies to plug and clean wells involved in a sale. One of them, SB 1419, would give landowners the power to object to a pending sale if the company selling or buying the well does not appear to have the means to plug the well when it ceases to be profitable.
Another bill, SB 1418, would require state regulators to establish a process to investigate a buyer’s financial ability to meet clogging and cleaning requirements before a sale is completed. The bill requires regulators to block sales if the seller is “insolvent, financially distressed, or subject to foreclosure.” Last year, the Oklahoma State Legislature passed a bill (sponsored by Boren and Green) that increases the amount of money companies must set aside to ensure proper cleaning of wells.
“If you don’t have regulations that can enforce best practices, you’re going to have bad actors trying to make a quick buck and get landlords to carry the load,” Boren said.
Toxic wastewater from oil fields continues to overflow from the ground in Oklahoma. For years, residents have complained and struggled to find solutions. We need your help to understand the big picture of the problem.
