Okla. Stat. tit. 52, § 52-86.7

and responsibilities – Liability - Disposal.

A. As used in the Oil and Gas Produced Water and Waste

Recycling and Reuse Act:

1. “Commission” means the Oklahoma Corporation Commission;

2. “Constituent elements” means salts, metals, elements and

other mineralized substances that are naturally occurring and

dissolved, entrained or suspended in subterranean water in situ and

after extraction from the ground, suspended in the oil and gas

produced water and waste or as part of the brine, as defined in

paragraph 4 of Section 502 of Title 17 of the Oklahoma Statutes;

3. “Nonoperator” means persons, other than the operator,

contributing to the cost and expense of drilling and completing or

operating a well for the intended development and production of oil,

gas or other hydrocarbons, regardless of whether the well is

completed or produces any oil or gas;

4. “Oil and gas produced water and waste” means the fluid

containing salt or other mineralized substances, hydraulic

fracturing fluid, flowback water, formation water, injection water

and any chemicals added downhole, associated with the drilling

completion or production of an oil or gas well, incidental to or

extracted from hydrocarbon-bearing strata during the drilling. Oil

and gas produced water and waste shall also include hydrogen sulfide

and carbon oxides emissions produced as a byproduct of natural gas

production. Except as provided in Section 86.8 of this title, oil

and gas produced water and waste, including its constituent

Oklahoma Statutes - Title 52. Oil and Gas Page 52

elements, shall not be considered brine for purposes of the Oklahoma

Brine Development Act;

5. “Operator” means the person authorized by the Corporation

Commission to drill, complete and operate a well for the intended

development and production of oil, gas or other hydrocarbons,

regardless of whether the well is completed or produces any;

6. “Person” means any individual, partnership, corporation,

limited liability company or any type of association;

7. “Recycled water” means oil and gas produced water and waste

that has been reconditioned or treated by mechanical, chemical,

thermal, or any other commercially viable technological processes

available into a reusable form; and

8. “Treated constituents” means any chemical, compound or other

byproduct naturally occurring in the subterranean water that is

removed from oil and gas produced water and waste through

reconditioning or treating of the fluid by mechanical, chemical,

thermal, or any other commercially viable technological processes

available.

B. The Legislature finds that oil and gas produced water and

waste has minimal or no intrinsic value without substantial

expenditures to process, treat or recycle the oil and gas produced

water and waste and declares it desirable, necessary and in the

public interest to designate the parties who shall own and be

responsible for the handling, transfer and disposition of the oil

and gas produced water and waste. The Legislature recognizes that

it has imposed upon the operator of an oil and gas lease a duty to

safely dispose of oil and gas produced water and waste, as defined

in the Oil and Gas Produced Water and Waste Recycling and Reuse Act.

It is further found to be in the public interest to foster,

encourage and promote the development of methods and means to

economically process, treat and recycle oil and gas produced water

and waste for beneficial uses, including the commercial extraction

of constituent elements from the oil and gas produced water and

waste and to ensure appropriate disposal in accordance with

Corporation Commission rules.

C. Prior to its extraction from the ground, subterranean water,

including its constituent elements, is the property of the owner of

the surface estate, as defined in paragraph 9 of Section 802 of this

title and shall be subject to the right of the mineral owner or the
the oil and gas produced water and

waste and to ensure appropriate disposal in accordance with

Corporation Commission rules.

C. Prior to its extraction from the ground, subterranean water,

including its constituent elements, is the property of the owner of

the surface estate, as defined in paragraph 9 of Section 802 of this

title and shall be subject to the right of the mineral owner or the

oil and gas lessee of the mineral owner, or both, to extract the

subterranean water as part of the oil and gas produced water and

waste as is reasonably necessary for, or incident to, the

exploration, exploitation or extraction of hydrocarbons. Nothing

contained in the Oil and Gas Produced Water and Waste Recycling and

Reuse Act shall be construed to:

1. Prevent the owner of the surface estate from being

considered the brine owner, as defined by paragraph 5 of Section 502

Oklahoma Statutes - Title 52. Oil and Gas Page 53

of Title 17 of the Oklahoma Statutes, for purposes of Section 86.8

of this title or the Oklahoma Brine Development Act; or

2. Limit the ability of the owner or owners of the surface

estate to enter into any legally binding contract with persons for

the payment of money or other valuable consideration for the

extraction of subterranean water, including the constituent elements

contained therein, or brine, as defined in paragraph 4 of Section

502 of Title 17 of the Oklahoma Statutes, from the property of the

owner or owners. However, if said extraction of subterranean water

or brine is to be done as part of oil and gas operations, the

contract shall be entered into prior to the filing of the drilling

permit of the oil and/or gas well. If the contract is entered into

after the filing of the drilling permit of the oil and/or gas well,

the contract shall be with the operator, or with the consent of the

operator, any other person or persons. The operator shall not

withhold consent unreasonably. Any such contract and the use or

disposal of oil and gas produced water and waste, shall be subject

to the requirements and limitations set forth in Section 86.8 of

this title and subject to any and all applicable governmental laws,

rules and regulations and subordinate to any preexisting, legally

binding, arms-length contracts relating to the use or disposal of

oil and gas produced water and waste. Provided, however, that the

contracts shall not result in additional costs or delays to the

rights of the operator to extract subterranean water reasonably

necessary for, or incident to, the exploration, exploitation or

extraction of hydrocarbons. Evidence, in the form of an affidavit,

of any contract entered into under the terms of the Oil and Gas

Produced Water and Waste Recycling and Reuse Act may be filed in the

office of the county clerk for the county in which the lands

described in the contract are located. The affidavit shall set out

the names and address of each party to the contract, the legal

description of the lands covered by the contract and the effective

date of the contract. Once filed, the affidavit shall serve as

constructive notice of the contract under the Oil and Gas Produced

Water and Waste Recycling and Reuse Act.

D. 1. Subject to the requirements and limitations set forth in

subsection C of this section and Section 86.8 of this title and

unless otherwise provided by Corporation Commission order, an oil or

gas lease, brine lease, recycling agreement, surface use agreement,

contract, bill of sale or another legally binding document:

a. the operator or operators, and the nonoperator or

nonoperators, of an oil and/or gas well shall be the

owner or owners of the oil and gas produced water and

waste extracted from the ground through the borehole

of the oil or gas well, and

b. the operator or operators, and the nonoperator or

nonoperators, shall have the right to use, possess,

Oklahoma Statutes - Title 52. Oil and Gas Page 54
the operator or operators, and the nonoperator or

nonoperators, of an oil and/or gas well shall be the

owner or owners of the oil and gas produced water and

waste extracted from the ground through the borehole

of the oil or gas well, and

b. the operator or operators, and the nonoperator or

nonoperators, shall have the right to use, possess,

Oklahoma Statutes - Title 52. Oil and Gas Page 54

handle, dispose of, transfer, sell, convey, transport,

process, recycle, reuse or treat the produced water

and waste and shall also have the exclusive right to

obtain proceeds for any of the uses of the oil and gas

produced water and waste or some portion thereof,

including recycled water and treated constituents.

2. Subject to the requirements and limitations set forth in

subsection C of this section and Section 86.8 of this title and

unless otherwise provided by Corporation Commission order, oil or

gas lease, brine lease, recycling agreement, surface use agreement,

contract, bill of sale or another legally binding document, until

there is a transfer to another person, the operator or operators,

and the nonoperator or nonoperators, shall be responsible for the

use, disposition, transfer, sale, conveyance, transport, recycling,

reuse, treatment or disposal of the transferred oil and gas produced

water and waste, recycled water and treated constituents or any

other byproducts.

3. Subject to the requirements and limitations set forth in

subsection C of this section and Section 86.8 of this title and

unless otherwise provided by Corporation Commission order, an oil or

gas lease, brine lease, recycling agreement, surface use agreement,

contract, bill of sale or another legally binding document:

a. when oil and gas produced water and waste is

transferred to a person for the purpose of processing

or treating for subsequent beneficial use, disposal or

both, the transferred material, recycled water and

treated constituents shall be the property of that

person until such time that the person disposes of the

produced water and waste in accordance with Commission

rules or there is a transfer of the material to a

subsequent person, and

b. transferred oil and gas produced water and waste shall

be the property of such transferee and the transferees

shall have control of and responsibility for the

substance, including the right to use, possess,

handle, dispose of, transfer, sell, convey, transport,

process, recycle, reuse or treat the produced water

and waste and to obtain proceeds for any uses of the

substance or any portion thereof, including recycled

water and treated constituents.

E. Except as provided in paragraph 1 of subsection D of this

section, a person is not liable in tort for consequences of

subsequent use of recycled water or treated constituents if that

person:

1. Processes oil and gas produced water and waste in order to

produce recycled water or treated constituents that are generally

considered in the oil and gas industry to be suitable for use in

Oklahoma Statutes - Title 52. Oil and Gas Page 55

connection with drilling, completion or production operations of oil

and gas or both;

2. Transfers the recycled water or treated constituents, or

both, to another person for use in connection with oil and gas

drilling, completion or production operations; or

3. Captures or sequesters hydrogen sulfides and carbon oxides

in connection with natural gas production for the purpose of

protecting the environment.

This subsection shall not be construed to affect the liability

of a person in possession of oil and gas produced water and waste,

recycled water or treated constituents, or both, in an action

brought by a person for damages for personal injury, death or

property damage arising from a release of or exposure to any of

these substances.

F. A person who acquires possession of oil and gas produced

water and waste for the purpose of recycling it for subsequent
f a person in possession of oil and gas produced water and waste,

recycled water or treated constituents, or both, in an action

brought by a person for damages for personal injury, death or

property damage arising from a release of or exposure to any of

these substances.

F. A person who acquires possession of oil and gas produced

water and waste for the purpose of recycling it for subsequent

beneficial use may dispose of the oil and gas produced water and

waste, including recycled water, treated constituents or other

byproducts of the recycling process, in his or her permitted

disposal well or wells, regardless of the source or prior ownership

of the oil and gas produced water and waste. The disposal shall not

require a commercial disposal well permit from the Corporation

Commission but shall otherwise be subject to any other permit

restrictions applicable to disposal wells.