Oklahoma Law to Add Jobs & Generate Royalties

by Elizabeth Alford on June 28, 2017

A new Oklahoma law means more money for royalty payments and greater protection for oil and gas producers in the state.

Own mineral rights in Oklahoma? Join the discussion.

Last month, Oklahoma Governor Mary Fallin signed Senate Bill 867 into law, which expands laws for horizontal drilling.  Also known as the Oklahoma Energy Jobs Act of 2017, the law adds rights for vertical well owners and creates protections for mineral rights owners.

Retired President of the Oklahoma Independent Petroleum Association (OIPA), Mike Terry, hails the bill as a way to keep up with the advancement in the oil and gas industry over the last 10 years. He says that in its first year, the bill will:

  • Generate about $490 million in new royalty payments
  • Raise more than $229 million in new state and local revenues
  • Create nearly 6,000 new jobs in the oil and gas sector
  • Spur nearly $6 billion in investment from oil and natural gas producers

Previously, companies with leases in non-shale rock formations weren’t able to drill horizontal wells more than a mile long. Senate Bill 867  allows for long-lateral drilling in all rock formations in the state.

“Senate Bill 867 is a prime example of government and industry joining together to ensure future success. The legislation signed by Gov. Mary Fallin allows for expanded drilling in all geologic formations in the state. The new law puts Oklahoma on par with all other energy-producing states and gives active Oklahoma drillers the ability to drill more effectively and efficiently.” – Mike Terry – Retired President, OIPA

Read the full text of SB 867 here.

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