SB 341 Summary

• Creates the "2015 Oil and Gas Conservation and Regulation Modernization Act" to modernize oil and gas regulation, prevent waste, protect correlative rights, and promote uniformity in royalty payments.

• Establishes enhanced Corporation Commission jurisdiction over well spacing and drilling units, including authority to permit horizontally drilled wells, multiunit horizontal wells, and extended lateral horizontal units for targeted reservoirs.

• Creates the "Royalty Standardization Act" establishing that working interest owners bear all production costs while royalty and overriding royalty owners receive proceeds free of production costs, applicable to all production on or after January 1, 2016.

• Clarifies state authority over oil and gas exploration and operations, prohibiting municipalities and counties from banning drilling without Corporation Commission approval, though reasonable setbacks for health and safety are permitted.

• Repeals Section 137 of Title 52 regarding powers of cities and towns; becomes effective January 1, 2016.