Bill Summary for S 76 (2013-2014)

Summary date: 

Feb 25 2013

Bill Information:

View NCGA Bill Details2013-2014 Session
Senate Bill 76 (Public) Filed Monday, February 11, 2013
A BILL TO BE ENTITLED AN ACT TO (1) PROVIDE FOR AUTOMATIC REVIEW OF MINING AND ENERGY COMMISSION RULES BY THE GENERAL ASSEMBLY; (2) EXEMPT THE MINING AND ENERGY COMMISSION, THE ENVIRONMENTAL MANAGEMENT COMMISSION, AND THE COMMISSION FOR PUBLIC HEALTH FROM PREPARING FISCAL NOTES FOR RULES THAT PERTAIN TO THE MANAGEMENT OF OIL AND GAS EXPLORATION AND DEVELOPMENT; (3) DIRECT THE MINING AND ENERGY COMMISSION TO STUDY DEVELOPMENT OF A COMPREHENSIVE ENVIRONMENTAL PERMIT FOR OIL AND GAS EXPLORATION AND DEVELOPMENT ACTIVITIES USING HORIZONTAL DRILLING AND HYDRAULIC FRACTURING TREATMENTS; (4) REQUIRE THE MINING AND ENERGY COMMISSION AND THE DEPARTMENT OF REVENUE TO STUDY ESTABLISHMENT OF A TAX FOR THE SEVERANCE OF ENERGY MINERALS FROM THE SOIL OR WATER OF THE STATE IN AN AMOUNT SUFFICIENT TO COVER ALL COSTS ASSOCIATED WITH ADMINISTRATION OF A MODERN REGULATORY PROGRAM FOR THE MANAGEMENT OF OIL AND GAS EXPLORATION AND DEVELOPMENT ACTIVITIES USING THE PROCESSES OF HORIZONTAL DRILLING AND HYDRAULIC FRACTURING TREATMENTS FOR THAT PURPOSE, INCLUDING CREATION OF AN EMERGENCY FUND TO PROTECT AND PRESERVE THE STATE'S NATURAL RESOURCES, CULTURAL HERITAGE, AND QUALITY OF LIFE; (5) DIRECT THE MINING AND ENERGY COMMISSION TO STUDY MATTERS RELATED TO REGISTRATION OF LANDMEN; (6) MODIFY APPOINTMENTS TO THE MINING AND ENERGY COMMISSION; (7) MODIFY PROVISIONS IN THE OIL AND GAS CONSERVATION ACT CONCERNING THE MINING AND ENERGY COMMISSION'S AUTHORITY TO SET "ALLOWABLES"; (8) CLARIFY BONDING REQUIREMENTS ASSOCIATED WITH OIL AND GAS ACTIVITIES; (9) ASSIGN FUTURE REVENUE FROM ENERGY EXPLORATION, DEVELOPMENT, AND PRODUCTION OF ENERGY RESOURCES IN ORDER TO PROTECT AND PRESERVE THE STATE'S NATURAL RESOURCES, CULTURAL HERITAGE, AND QUALITY OF LIFE; (10) ENCOURAGE THE GOVERNOR TO DEVELOP THE REGIONAL INTERSTATE OFFSHORE ENERGY POLICY COMPACT; (11) AMEND THE ENERGY POLICY ACT OF 1975 AND THE ENERGY POLICY COUNCIL; AND (12) DIRECT THE MEDICAL CARE COMMISSION TO ADOPT RULES AUTHORIZING FACILITIES LICENSED BY THE DEPARTMENT OF HEALTH AND HUMAN SERVICES TO USE COMPRESSED NATURAL GAS AS AN EMERGENCY FUEL.
Intro. by Newton, Rucho, Brock.

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Bill summary

Senate committee substitute makes the following changes to the 2nd edition.

Amends GS 143B-293.2 to provide that membership on the Mining and Energy Commission may be held concurrently with other elective or appointive offices in addition to the maximum number of offices permitted to be held by one person under GS 128-1.1.

Makes a clarifying change directing the Revisor of Statutes to make the conforming statutory changes necessary to reflect the renaming of theEnergy Jobs Act and the Energy Jobs Council (was, make the changes necessary to reflect the transfers under the section).

Directs that all the rules required to be adopted by the Mining and Energy Commission, the Environmental Management Commission, and the Commission for Public Health for the management of oil and gas exploration and development activities in the state be adopted no later than October 1, 2014. Specifies that this deadline includes regulatory programs for the use of horizontal drilling and hydraulic fracturing. Provides that although the Mining and Energy Commission (Commission)and the Department of Environment and Natural Resources (DENR)are authorized to issue permits for horizontal drilling and hydraulic fracturing treatments for oil and gas and development activities, neither DENR nor the Commission is required to issue such permits until all the rules required to be adopted under Section 2.(m) of SL 2012-143 have become effective.

Amends GS 143-214.2(b) to provide that the prohibition against the discharge of any wastes to the subsurface or groundwaters of the state through the use of wells does not prohibit injecting water produced from subsurface geologic formations during the extraction of natural gas, condensate, or oil.

Amends GS 105-187.73 to clarify that marketing costs incurred by the producer to get the gas from the mouth of the well to the market includes costs for delivering the gas to the first purchaser (was, purchaser).

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