Bill Summary for S 786 (2013-2014)

Summary date: 

May 28 2014

Bill Information:

View NCGA Bill Details2013-2014 Session
Senate Bill 786 (Public) Filed Thursday, May 15, 2014
A BILL TO BE ENTITLED AN ACT TO (1) EXTEND THE DEADLINE FOR DEVELOPMENT OF A MODERN REGULATORY PROGRAM FOR THE MANAGEMENT OF OIL AND GAS EXPLORATION, DEVELOPMENT, AND PRODUCTION IN THE STATE AND THE USE OF HORIZONTAL DRILLING AND HYDRAULIC FRACTURING TREATMENTS FOR THAT PURPOSE; (2) ENACT OR MODIFY CERTAIN EXEMPTIONS FROM REQUIREMENTS OF THE ADMINISTRATIVE PROCEDURE ACT APPLICABLE TO RULES FOR THE MANAGEMENT OF OIL AND GAS EXPLORATION, DEVELOPMENT, AND PRODUCTION IN THE STATE AND THE USE OF HORIZONTAL DRILLING AND HYDRAULIC FRACTURING TREATMENTS FOR THAT PURPOSE; (3) AUTHORIZE ISSUANCE OF PERMITS FOR OIL AND GAS EXPLORATION, DEVELOPMENT, AND PRODUCTION ACTIVITIES SIXTY DAYS AFTER APPLICABLE RULES BECOME EFFECTIVE; (4) CREATE THE NORTH CAROLINA OIL AND GAS COMMISSION AND RECONSTITUTE THE NORTH CAROLINA MINING COMMISSION; (5) AMEND MISCELLANEOUS STATUTES GOVERNING OIL AND GAS EXPLORATION, DEVELOPMENT, AND PRODUCTION ACTIVITIES; (6) ESTABLISH A SEVERANCE TAX APPLICABLE TO OIL AND GAS EXPLORATION, DEVELOPMENT, AND PRODUCTION ACTIVITIES; (7) AMEND MISCELLANEOUS STATUTES UNRELATED TO OIL AND GAS EXPLORATION, DEVELOPMENT, AND PRODUCTION ACTIVITIES; AND (8) DIRECT STUDIES ON VARIOUS ISSUES, AS RECOMMENDED BY THE JOINT LEGISLATIVE COMMISSION ON ENERGY POLICY.
Intro. by Rucho, Newton, Brock.

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Bill summary

House committee substitute makes the following changes to the 3rd edition.

Changes the long title.

Changes the title of Part III to "Authorize Issuance of Permits" (previously, Date Certain for Issuance of Permits to July 1, 2015). Amends Part III to provide that DENR and the Mining and Energy Commission are authorized to issue permits for oil and gas exploration, development, and production activities using horizontal drilling and hydraulic fracturing treatments on or after the 61st calendar day following the date all rules adopted pursuant to Section 2(m) of SL 2012-143 have become effective.

Amends proposed GS 113-391.1, concerning the determination of trade secret and confidential information and the duties of the State Geologist adding a requirement that the State Geologist, in consultation with the State Health Director, must review the confidential information concerning hydraulic fracturing fluid in order to advise local health departments of any additional parameters that should be included in private drinking water well testing. Makes organizational changes.

Amends proposed GS 113-395.3, concerning environmental compliance review for permit applicants, requiring permit applicants to provide environmental compliance history for each business or entity owned, to notify DENR of any change in their environmental compliance history or changes to the structure of the business entity, with significant changes to the structure or business entity being required to be reported within 30 days of any such change (previously, the environmental compliance information was only required to be submitted at the request of DENR).

Adds a requirement that the State Energy Office must also study and include, in its report to the Joint Legislative Commission on Energy Policy, information regarding the impact to the electrical grid and to the economy by allowing third-party sales of electricity on the state's military installations.

Makes technical changes.

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