TO INCREASE THE AMOUNT OF THE BOND REQUIRED UPON REGISTRATION IN ORDER TO DRILL FOR OIL OR NATURAL GAS IN THE STATE.
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.
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