Bill Summary for S 786 (2013-2014)

Summary date: 

May 22 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

Senate amendments make the following changes to the 2nd edition.

Amendment #6 expands subsection (b) of new GS 113-391A to direct the State Geologist, or the Geologist's designee, to review confidential information that concerns hydraulic fracturing fluid, as defined in GS 113-389, to ensure compliance with all state and federal laws, rules, and regulations concerning prohibited chemicals or constituents, or exceedances of standards for chemicals or constituents. Provides that the Geologist or the Geologist's designee must (1) issue a written certification within five days of completing the review that the hydraulic fracturing fluids comply with all state and federal laws, rules, and regulations; (2) transmit the certification to the Mining and Energy Commission and the Director of the Division of Energy, Mining, and Land Resources; and (3) electronically transmit a copy of the certification to the permittee. Prohibits beginning horizontal drilling and hydraulic fracturing treatments until this written certification has been issued and transmitted as required by this section.

Amendment #7 adds a new subdivision (2) to subsection (a3) of GS 113-421. Directs an oil or gas developer or operator to provide a bond running to the state that is sufficient to cover any potential environmental damage caused by the drilling process in an amount no less than $1 million. Authorizes the Mining and Energy Commission to increase the amount of the bond required under this subdivision if the Commission determines that the drilling operation would be located in an environmentally sensitive area.

Amendment #8 amends new GS 113-391A.(d) to make the penalty for the unlawful disclosure of confidential information under this section a Class 1 misdemeanor (was, a Class I felony).

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