NAT. GAS/BOND/FEE/LANDOWNER PROTECT'N/STUDY (NEW).

View NCGA Bill Details2011-2012 Session
House Bill 242 (Public) Filed Monday, March 7, 2011
TO INCREASE THE AMOUNT OF THE BOND REQUIRED UPON REGISTRATION IN ORDER TO DRILL FOR OIL OR NATURAL GAS IN THE STATE.
Intro. by Stone, Gillespie.

Status: Ch. SL 2011-276 (House Action) (Jun 23 2011)

Bill History:

H 242/S.L. 2011-276

Bill Summaries:

  • Summary date: Jun 30 2011 - More information

    AN ACT TO (1) INCREASE THE AMOUNT OF THE BOND REQUIRED UPON REGISTRATION IN ORDER TO DRILL FOR OIL OR NATURAL GAS IN THE STATE; (2) INCREASE THE AMOUNT OF FEES APPLICABLE TO DRILLING AND ABANDONING OIL OR GAS WELLS; (3) ESTABLISH PROVISIONS FOR THE PROTECTION OF LANDOWNERS RELATIVE TO LEASES FOR OIL AND GAS EXPLORATION; (4) DIRECT THE DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES TO STUDY THE ISSUE OF OIL AND GAS EXPLORATION IN THE STATE, AND SPECIFICALLY THE USE OF DIRECTIONAL AND HORIZONTAL DRILLING AND HYDRAULIC FRACTURING FOR THAT PURPOSE; AND (5) DIRECT THE DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES TO CONDUCT AT LEAST TWO PUBLIC HEARINGS ON THE ISSUE IN THE AREA IN WHICH EXPLORATION FOR NATURAL GAS BY MEANS OF DIRECTIONAL AND HORIZONTAL DRILLING AND HYDRAULIC FRACTURING MAY OCCUR. Summarized in Daily Bulletin 3/7/11, 4/19/11, 5/26/11, 5/31/11, 6/13/11, and 6/16/11. Enacted June 23, 2011. Effective June 23, 2011.


  • Summary date: Jun 16 2011 - More information

    Senate amendment makes the following changes to 5th edition. Deletes provision from previous edition appropriating funds from the General Fund to the Department of Environment and Natural Resources (DENR) to complete the specified study and conduct the public hearings directed in the act. Directs DENR and the Energy Jobs Council to conduct the study in the act in conjunction with the study required by Section 3(a) of Senate Bill 709, 2011 Regular Session, if that bill becomes law. Requires that the outcome of the consolidated studies result, if applicable, in one final report.


  • Summary date: Jun 13 2011 - More information

    Senate committee substitute makes the following changes to 4th edition. Amends Article 27 of GS Chapter 113 by enacting a new Part 3, Landowner Protection, to establish provisions for the protection of landowners relative to leases for oil and gas exploration. Specifies notice requirements, compensation for damages, and maximum lease terms. Provides that new Part 3 applies to leases or contracts, and amendments to leases or contracts, entered into on or after June 15, 2011. Makes conforming changes to GS 113-389, adding definitions for the following terms as used in proposed Part 3: (1) oil and gas developer or operator, (2) oil and gas operations or activities, and (3) surface owner. Makes a conforming change to the bill title.


  • Summary date: May 31 2011 - More information

    House amendment makes the following change to 3rd edition. Provides that the Department of Environment and Natural Resources must report its findings no later than May 1, 2012 (previously February 1, 2012) to the Environmental Review Commission.


  • Summary date: May 26 2011 - More information

    House committee substitute makes the following changes to 2nd edition.
    Amends GS 113-395 to increase the well drilling permit fee to $3,000 (was, $1,500) per well. Directs the Department of Environment and Natural Resources (DENR) to report the findings and recommendations from its study on oil and gas exploration and the use of directional and horizontal drilling and hydraulic fracturing to the Environmental Review Commission by February 1, 2012 (was, September 1, 2011). Expands and clarifies issues to be included in the study. Appropriates $100,000 from the General Fund to DENR for 2011-12 to complete the study and required public hearings. Makes clarifying changes, and conforming changes to the bill title.


  • Summary date: Apr 19 2011 - More information

    House committee substitute makes the following changes to 1st edition.
    Amends GS 113-378 to remove the provision allowing an entity to register with a state agency other than the Department of Environment and Natural Resources (DENR) before conducting a drilling exploration for oil or natural gas. Changes the bond requirement to a total of $5,000 plus $1 per linear foot proposed to be drilled (previous edition set the bond amount at $10,000). Amends GS 113-395 to increase the well drilling permit fee from $50 to $1,500 for each well and to increase the abandonment fee from $15 to $450.
    Requires DENR to study oil and gas exploration, and the use of hydraulic fracturing in the state. Requires a report to the Environmental Review Commission by September 1, 2011. Specifies six issues that must be included in the study including potential impacts on infrastructure, the environment, and the economy. Requires DENR to hold at least two public hearings in the Triassic Basin by February 1, 2012. Allows DENR to consult with the Consumer Protection Division of the Department of Justice and the Rural Advancement Foundation International.
    Changes the title to AN ACT TO: (1) INCREASE THE AMOUNT OF THE BOND REQUIRED UPON REGISTRATION IN ORDER TO DRILL FOR OIL OR NATURAL GAS IN THE STATE; (2) INCREASE THE AMOUNT OF FEES APPLICABLE TO DRILLING AND ABANDONING OIL OR GAS WELLS; (3) DIRECT THE DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES TO STUDY THE ISSUE OF OIL AND GAS EXPLORATION IN THE STATE, AND SPECIFICALLY THE USE OF HYDRAULIC FRACTURING FOR THAT PURPOSE; AND (4) DIRECT THE DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES TO CONDUCT AT LEAST TWO PUBLIC HEARINGS ON THE ISSUE IN THE AREA IN WHICH DRILLING FOR NATURAL GAS BY MEANS OF HYDRAULIC FRACTURING MAY OCCUR.


  • Summary date: Mar 7 2011 - More information

    Amends GS 113-378 as the title indicates. Increases the amount of the bond to $10,000 (was, $5,000).


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