OK HB4338

Amends the Oklahoma Brine Development Act to create a new "produced water unit" category, allowing commercial extraction and sale of constituent elements (such as lithium, bromine, magnesium, and potassium) from wastewater generated during oil and gas production operations

Grants the Corporation Commission authority to establish produced water units based on associated oil or gas well spacing, with unit sizes generally limited to the drilling or spacing unit of the source well unless larger areas are deemed appropriate

Eliminates the requirement for 55% approval by brine owners of record for produced water units, streamlining the unitization process compared to traditional brine production units

Allows proposed produced water unit operators to seek emergency relief from the Commission to begin extraction and sales before final unit approval, with royalties held in suspense for unleased brine owners at fair market value rates

Requires brine owners within produced water units to share proportionally based on acreage, with gross production measured by total volume of produced water before constituent element extraction; effective November 1, 2026