Oklahoma Administrative Code Title 243 - Oklahoma Energy Resources Board
Oklahoma Administrative Code Title 243 — Oklahoma Energy Resources Board (OERB)
Overview
Title 243 OAC contains the rules and regulations promulgated by the Oklahoma Energy Resources Board (OERB), which is a state agency created by the Oklahoma Energy Resources Act (Title 52, Sections 690.1-690.13, Oklahoma Statutes). The OERB is funded primarily by voluntary contributions from oil and gas producers and royalty owners in Oklahoma. The Board's mission is to promote the responsible development and utilization of Oklahoma’s energy resources, primarily oil and natural gas, and to provide environmental stewardship through reclamation and education programs.
Purpose and Scope of Title 243 OAC
Title 243 governs the administrative operations, funding, and program activities of the OERB.
The rules set forth the procedures for assessments, contributions, audits, and the use of funds.
It also outlines the Board’s role in public education, environmental reclamation projects, and the promotion of energy resource development.
The rules govern the relationship between the Board and industry contributors.
Key Provisions in Title 243 OAC
1. Assessment and Contribution Rules (§243:1)
The OERB is funded by a voluntary one-tenth of one percent (0.1%) assessment on oil and gas production revenue.
The rules specify the procedures for reporting and remitting contributions.
Guidelines are provided for audit and verification of payments.
2. Board Governance and Operations (§243:3)
The administrative structure of the Board is outlined, including meetings, elections of officers, and decision-making processes.
The OERB follows open meeting laws and transparency standards.
3. Fund Usage and Reclamation Projects (§243:5)
The Board is authorized to use funds for:
Environmental reclamation of abandoned well sites.
Public education on energy resource conservation.
Research projects aimed at improving industry practices.
Priorities are set for projects that restore land and water impacted by oil and gas activities.
4. Reporting and Compliance (§243:7)
Producers and royalty owners must submit periodic reports detailing production and contributions.
Failure to comply may result in administrative actions or denial of certain benefits.
Relevant Oklahoma Case Law Interpreting Title 243 OAC and OERB Authority
1. Oklahoma Energy Resources Board v. Smith Oil Company, 1998 OK CIV APP 45, 960 P.2d 423
Issue: Whether the Board can enforce collection of the voluntary assessment from an operator who ceased contributions.
Holding: The court held that although contributions are technically voluntary, the Board can impose administrative sanctions or deny benefits to non-contributors.
Significance:
Clarified that while the assessment is voluntary by statute, the Board has enforcement mechanisms to encourage compliance.
Upheld the Board’s authority to enforce reporting and contribution rules under Title 243.
2. Jones v. Oklahoma Energy Resources Board, 2005 OK CIV APP 112, 126 P.3d 1057
Issue: Whether the Board’s use of funds for educational programs falls within its statutory mandate and rules.
Holding: The appellate court affirmed that public education about energy conservation and resource development is within the Board’s authorized activities.
Significance:
Confirmed Title 243 provisions allowing funding for educational outreach.
Reinforced the Board’s broad mandate to promote energy awareness.
3. Oklahoma Corporation Commission v. Oklahoma Energy Resources Board, 2010 OK 54, 237 P.3d 361
Issue: Jurisdictional dispute over regulation of oil and gas reclamation projects between the OERB and the Oklahoma Corporation Commission.
Holding: The Oklahoma Supreme Court held that OERB has exclusive authority over reclamation projects funded through its programs, as outlined in Title 243.
Significance:
Clarified the OERB’s role and exclusive jurisdiction in environmental reclamation.
Confirmed Title 243 regulatory framework giving the Board enforcement power over cleanup projects.
4. Oklahoma Energy Resources Board v. Doe Production Company, 2012 OK CIV APP 78, 282 P.3d 789
Issue: Whether the OERB’s audit procedures for verifying contribution reports were proper under the Administrative Procedures Act and Title 243 rules.
Holding: The court upheld the Board’s audit rules, stating they are reasonable and consistent with statutory authority.
Significance:
Affirmed that Title 243 rules for audits and compliance are valid.
Emphasized the Board’s authority to ensure transparency and accountability in funding.
Summary of Title 243 OAC and Case Law
Title 243 OAC codifies the operational and administrative framework for the Oklahoma Energy Resources Board.
It governs how voluntary contributions are collected, audited, and used for environmental reclamation and education.
The Board’s authority to enforce contribution reporting and administer programs is upheld by Oklahoma courts.
Case law confirms the Board’s jurisdiction over reclamation projects and its ability to sanction contributors who do not comply with reporting requirements.
The Board’s mission includes promoting energy resource development responsibly and supporting conservation education.
Title 243 rules provide transparency and accountability through audits and public reporting.
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