Inside the State Supreme Court Hearing on Lawsuit Over Oil and Gas Tax Rate


A lawsuit over recently signed legislation that changes state oil and gas tax rates will be heard by the Oklahoma Supreme Court today, a constitutional challenge that could have broad impact on industry and legislative procedure.

I broke down the lawsuit on an Oklahoma News Report segment with OETA’s Dick Pryor, which you can watch above. But here are five things you need to know about today’s hearing, which could hinge on legal subtleties and word interpretations. Continue Reading

Oil-Covered Owls Prompt Investigation of ‘Neglected’ Oil Field Site

The discovery of two barn oils coated in oil has prompted an investigation of a “neglected” oil field site in northwest Oklahoma.

One of the owls died, the Enid News & Eagle reported on July 25. The surviving bird is eating, walking and climbing and is being monitored by Jean Neal, a Fairview caretaker “licensed to handle small non-migratory animals.”

The Oklahoma Corporation Commission and state Department of Wildlife Conservation are investigating a site near the Major and Garfield County lines. Inspectors found several other dead birds floating in a saltwater tank at the site, the paper reports:

A preliminary report, compiled by an Oklahoma Corporation Commission oil and gas field inspector, noted there was oil on the ground around the tank and in several other areas inside the dike. Rig anchors were not marked, and there were no Oklahoma Tax Commission numbers on the storage tanks or the meter house, the report stated.

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Study: Anti-EPA States Like Oklahoma Would Benefit Most from New Carbon Rules

A pile of coal sits along the railroad tracks just east of Red Oak, Okla.

Logan Layden / StateImpact Oklahoma

A pile of coal sits along the railroad tracks just east of Red Oak, Okla.

Oklahoma has been battling the U.S. Environmental Protection Agency over new environmental regulations since Gov. Mary Fallin came into office in 2010, and Attorney General Scott Pruitt is vowing to fight the latest proposed rule that would cut carbon emissions by 30 percent nationally.

But a new study from Strategic and International Studies and the Rhodium Group shows the state might be shooting itself in the foot by fighting what could end up being an economic boom.

From The New York TimesCoral Davenport:

The study took into account the economic costs imposed by the regulation and concluded that it would raise electricity rates by up to 10 percent in some parts of the country and eventually freeze coal production. But even taking those costs into account, Arkansas, Louisiana, Oklahoma and Texas together would experience an annual net economic benefit of up to about $16 billion, according to the study.

“The irony is that some of the states that have been the loudest in opposing E.P.A. climate regulations have the most to gain in terms of actual economic interest,” said Trevor Houser, an analyst at the Rhodium Group and a co-author of the study.

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Why Oklahoma’s Wind Energy Future Could be Shaped by Osage County

Bob Hamilton, director of the Tallgrass Prairie Preserve near Pawhuska, Okla.

Joe Wertz / StateImpact Oklahoma

Bob Hamilton, director of the Tallgrass Prairie Preserve near Pawhuska, Okla.

Oklahoma is moving up the national ranks in wind-generated electricity. But as wind farms expand into northeastern Oklahoma, developers are facing a team of unlikely allies: oil interests and environmentalists.

Wind farm developers encounter opposition wherever projects are planned, but the debate in Oklahoma is perhaps most magnified in Osage County, where there’s a confluence of money, government and prairie politics.

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Federal Money Flows to Oklahoma for Water Infrastructure Fixes

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Christopher Caldwell / Flickr

Over the past week, Oklahoma has secured more than $37 million in federal funding for dam improvements across the state and for water system repairs in communities with aging pipes and treatment plants.

First, on July 18, the federal government announced a national dam assessment and repair program made possible by an “almost 21 fold” increase in funding for watershed rehabilitation under the 2014 Farm Bill. $26.4 million will go to Oklahoma.

From The Oklahoman‘s Rick Green:

Federal and state officials gathered Friday at one such structure, a dam on Perry Lake, to announce $262 million in funding under the 2014 Farm Bill to rehabilitate or assess the condition of hundreds of dams across the nation, including $26.4 million for Oklahoma projects. The idea is to make sure these dams, many built more than a half-century ago, are safe and in good condition for the future.

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State Water Regulator To Study Southwest Oklahoma Supply Shortages

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arbyreed / Flickr

The recent wet weather has been more than welcome by residents of drought-parched southwest Oklahoma, but it hasn’t yet been enough to reverse the depletion of municipal water supplies.

Now the Oklahoma Water Resources Board is stepping in to help communities there to keep from running out of water. From The Associated Press:

The studies will focus on how water conservation, marginal quality water supplies and public water supply system regionalization might address the needs of basins on a local level and serve as examples for water users statewide.

The studies are part of the state’s ongoing water conservation initiative.

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“Poll: Oklahomans Support More Regulation of Wind Energy Development; Oppose Taxpayer Subsidies”

About 72 percent want the Oklahoma Corporation Commission to be the regulator; 68 percent support rules for maintenance to prevent accidents; 63 percent support local governments having more input on wind projects in their areas. The poll was commissioned by the Oklahoma Property Rights Association, which has opposed wind-energy projects.


Results from the latest SoonerPoll indicate that likely Oklahoma voters, who in other polling typically oppose more regulation, believe there is not enough regulation of wind energy development or oversight of wind tax subsidies in the state.

Read more at: soonerpoll.com

Why The OKC Coalition To Pump Water From Southeast Oklahoma Fell Apart

Mitchell Logan supervises a pump station near Macomb, the 100-mile Atoka Pipeline's last stop on its way to the OKC metro.

Joe Wertz / StateImpact Oklahoma

Mitchell Logan supervises a pump station near Macomb, the 100-mile Atoka Pipeline's last stop on its way to the OKC metro.

Oklahoma City has been pumping water out of southeast Oklahoma through the Atoka pipeline for 50 years. But in the future, the aging pipeline won’t be able to carry enough water to meet the growing needs of Oklahoma City, let alone the rest of central Oklahoma. The plan is build another pipeline right next to the existing one.

Seventeen central Oklahoma communities formed a partnership with Oklahoma City to build the new 100-mile pipeline to get the water, but that water coalition has crumbled.

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Oklahoma Officials May Reconsider Keeping Oil Train Info Secret

oil-train

Seebe / Flickr

In the wake of deadly derailments, fiery explosions and dangerous spills, the federal government in May ordered railroads to share with state authorities more information about some crude oil shipments.

Some of those trains traverse Oklahoma en route from oilfields in states like North Dakota to refineries along the Gulf Coast of Texas. Citing “terrorism” concerns, Oklahoma’s Department of Environmental Quality has worked to keep those oil and train shipment details secret.

But as The Oklahoman’s Paul Monies reports, the agency might reverse course and release reports the Federal Railroad Administration says don’t “contain security-sensitive information”: Continue Reading

Four More State Parks at Risk as Budget Cuts and Low Revenue Loom

A waterfall at Disney State Park on Grand Lake in northeast Oklahoma.

Christopher Caldwell / Flickr

A waterfall at Disney State Park on Grand Lake in northeast Oklahoma.

Four state parks in northeastern Oklahoma could be sold off, leased out or closed due to state budget cuts and low park revenue.

Oklahoma Department of Tourism and Recreation hasn’t made a final decision on three of the parks, but is considering selling or leasing Disney/Little Blue Area at Grand Lake, Snowdale Area at Grand Lake and Spring River Canoe Trails.

But the agency on July 8 decided to terminate the state’s lease at Walnut Creek, which is owned by the U.S. Army Corps of Engineers, KJRH reports.

Selling or leasing the parks are just two of the options they are considering.

Blair said department leaders are exploring all possibilities.

On Tuesday, the tourism and recreation department said it would terminate its lease at Walnut Creek State Park in Osage County, thereby closing the park at the end of summer.

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