An oil company seeking to build a disposal well in earthquake-prone Logan County has agreed to record additional pressure and volume measurements to get a permit from the state’s oil and gas regulator.
The Oklahoma Corporation Commission on Thursday voted 2-0 to approve the disposal well for Kansas-based Slawson Exploration. Commissioner Dana Murphy abstained from the vote “saying she wanted to wait until more seismic data was available,” The Oklahoman‘s Paul Monies reports:
Slawson agreed to record daily pressure and volume rates on the disposal well. It also will run a bottom-hole pressure test prior to injection and every 60 days for up to six months.
The bill is likely to draw a legal challenge from an Oklahoma City attorney, who says it’s a “revenue bill” that was passed without some of the legislative burdens added to the Oklahoma Constitution in 1992 with the voter-approved State Question 640.
The episode first aired on May 23. StateImpact’s segment is embedded above.
From the start of the legislative session on February 3rd, StateImpact Oklahoma had its eye on what was sure to be a heated issue: the coming expiration of a tax credit for horizontally drilledoil and gas wells. Without action, rates would go from one-percent for the first four years of a well’s life, back to 7 percent.
Democrats like Representative Richard Morrissette argued companies don’t drill for oil and gas because of tax breaks, and it can’t be assumed they have the best interest of Oklahomans at heart.
“The jobs are here, because they’ve got to get the gold out of the ground,” Morrissette said on the House floor. “They’re not doing it because of the love of country and state. They’re doing it for the love of the dollar bill.”
“The new 2 percent tax rate is fair to the state and sends a clear message to energy producers worldwide: Oklahoma is the place for energy production and investment.” Fallin said in a statement. “We want to be a leader in this field not just today but for decades to come.”
Turbine nacelles for an wind farm project at a staging area in Osage County.
Wind-energy companies have high hopes for Osage County. It’s windy, of course, but unlike other windy areas of western Oklahoma, Osage County is a lot closer to the heavy-duty electrical infrastructure needed to transport power from turbines to the grid.
Wind farms have met resistance in other Oklahoma communities, but opposition to the Osage County projects has been particularly fierce because the region is ecologically sensitive and culturally significant. The Oklahoman‘s Paul Monies reports:
Opponents of the two projects by Kansas-based TradeWind Energy Inc. said they endanger the natural beauty of the tallgrass prairie, its fragile ecosystem and the cultural history of the Osage Nation. The area is at the southern edge of the Flint Hills, the last sliver of the natural tallgrass prairie that at one time covered 140 million acres in North America. Continue Reading →
Oklahoma Gas & Electric's coal-fired Sooner Plant in Red Rock, Okla.
The U.S. Environmental Protection Agency’s Regional Haze Rule is meant to clear the air at national parks and wildlife refuges by reducing emissions from coal-fired power plants.
Oklahoma Attorney General Scott Pruitt and Oklahoma Gas and Electric — the state’s largest utility — have fought the Regional Haze Rule since the EPA rejected the state’s implementation plan in 2012, but it looks like this is the end of the line.
The U.S. Supreme Court on Tuesday declined to hear Pruitt and OG&E’s challenge to a lower court’s ruling in favor of the EPA’s decision to reject the Oklahoma plan. Continue Reading →
Oklahoma City attorney Jerry Fent hand delivered a letter to Fallin’s office Tuesday urging her not to approve the bill. Fent says it was passed during the last week of the legislative session in violation of a constitutional requirement. The lawsuit also alleges it was approved by fewer lawmakers than required by the constitution, which says revenue bills must be approved by three-fourths of the membership of the House and Senate.
The Oklahoma Legislature on Thursday approved a bill that makes permanent a generous tax incentive for oil and gas production.
The votes followed a heated debate at the Capitol, and months of disagreement between lawmakers, industry lobbyists and energy executives, which are divided on the measure.
The bill’s approval was decried by opponents, like the left-leaning Oklahoma Policy Institute, which described the measure as a “subsidy” for the “well-connected” oil and gas industry. And one Oklahoma City attorney is already considering a constitutional challenge to the bill. Continue Reading →