Finds that it is in the state's interest to foster oil and natural gas resources-related activities in an appropriate regulatory, technical, environmental, and financial framework, and that the existing framework does not adequately allow the state to respond to potential discoveries.

Requires the commissioner of public lands to develop recommendations to improve the regulatory, technical, environmental, and financial framework of the oil and gas industry as specified in this act by December 30, 2006. In developing statewide recommendations, the commissioner shall assemble and consult the work group created in this act.

Creates a work group to study current state regulation of the oil and gas industry and opportunities to improve the oil and gas financial and regulatory program as specified in this act and to help the commissioner of public lands develop recommendations under this act.

Provides that, by December 30, 2006, the commissioner of public lands must submit the work group's findings, and recommendations for legislation that is necessary to implement the findings, to the appropriate standing committees of the legislature. The department of natural resources must provide technical and staff support from existing staff for the work group created by this act.