S T A T E O F N E W Y O R K
________________________________________________________________________
24
2013-2014 Regular Sessions
I N S E N A T E
(PREFILED)
January 9, 2013
___________
Introduced by Sen. ESPAILLAT -- read twice and ordered printed, and when
printed to be committed to the Committee on Environmental Conservation
AN ACT to amend the environmental conservation law, in relation to the
regulation of the drilling of natural gas resources
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative intent. 1. The legislature finds that the proc-
ess used to stimulate natural gas extraction referred to as hydraulic
fracturing utilizes components that are often toxic, that are non-biode-
gradable, and that are virtually impossible to remove once they enter
the natural environment. Thus, they pose such a high level of environ-
mental risk that the policy of the state must be to insure they are
excluded from any area that is significant for public drinking water
resources or any other area that is environmentally sensitive.
2. Natural gas drilling is potentially highly transformative of rural
landscapes, offering economic benefits to many landowners, but threaten-
ing the property values of other local landowners, traditional rural
economic activity, the carrying capacity of local infrastructure, the
natural habitat of wildlife, and the public health and quality of life
of residents in areas where there is natural gas extraction taking
place. Unless these resources are protected in the permitting and regu-
latory processes of the state, the costs of Marcellus shale natural gas
extraction will exceed the benefits and natural gas extraction will
become a fundamentally unfair and divisive process in which the profits
of some are subsidized by the costs to others.
3. The proposed scope of natural gas drilling across the state of New
York will present unprecedented challenges of regulatory oversight.
Funding for such oversight must be sufficient to meet this challenge and
should come from a series of fees paid by the natural gas industry.
Similarly, the natural gas industry should pay for all other costs asso-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01828-01-3
S. 24 2
ciated with natural gas extraction. Otherwise, natural gas extraction
will be unfairly subsidized, either by the New York state taxpayer or
by the impacts on local human and natural resources.
4. One of the chief environmental and infrastructure assets of the
state of New York is its drinking water systems, which play a fundamen-
tal role in the economic productivity and public health of the state.
The legislature finds that no risk to these resources and to the public
health of their users is acceptable and that the policy of the state
with respect to the management of shale gas extraction must be one of no
drinking water risk.
5. The purpose of this legislation is to insure that the exploitation
of shale natural gas resources is conducted in a manner that is consist-
ent with and supportive of New York state's commitment to sustainabili-
ty, and is consistent with other state economic development, energy and
environmental policies.
6. Therefore, in light of the many commitments the state of New York
has made to more sustainable development and the critical role greening
the state's economy will play in the future prosperity of the state, the
only acceptable natural gas extraction practices will be sustainable
ones. This act is intended to ensure that that goal is met.
S 2. Article 23 of the environmental conservation law is amended by
adding a new title 29 to read as follows:
TITLE 29
REGULATION OF NATURAL GAS DRILLING
SECTION 23-2901. NATURAL GAS DRILLING; PROHIBITION NEAR WATERSHED.
23-2903. DISCLOSURE OF HYDRAULIC FRACTURING MATERIALS.
23-2905. PROTECTION OF OTHER ENVIRONMENTAL RESOURCES.
23-2907. PROTECTION OF LOCAL RESOURCES.
23-2909. WATER WITHDRAWALS.
23-2911. ENFORCEMENT AND FINANCIAL SECURITY.
23-2913. OTHER PROVISIONS.
S 23-2901. NATURAL GAS DRILLING; PROHIBITION NEAR WATERSHED.
1. NATURAL GAS DRILLING SHALL NOT BE PERMITTED WITHIN THE NEW YORK
CITY WATERSHED OR AT ANY POINT WITHIN FIVE MILES OF ITS BOUNDARY.
2. NATURAL GAS DRILLING SHALL NOT BE PERMITTED WITHIN THE WATERSHED OF
THE DELAWARE RIVER, IN ANY RECHARGE AREA OF A SOLE SOURCE AQUIFER, IN
ANY AREA WHERE GROUNDWATER CONTRIBUTES A SIGNIFICANT BASE FLOW TO
SURFACE WATER SOURCES OF DRINKING WATER, AND IN ANY OTHER AREA WHERE THE
DEPARTMENT SHALL FIND PRESENTS A SIGNIFICANT THREAT OF HYDRAULIC FRAC-
TURING COMPOUNDS ENTERING INTO A SIGNIFICANT SOURCE OF DRINKING WATER.
3. NATURAL GAS DRILLING SHALL BE CONDUCTED IN WAYS THAT DO NOT CONTAM-
INATE DRINKING WATER WELLS. IN ANY AREA WHERE NATURAL GAS DRILLING TAKES
PLACE AND CONTAMINATION OF INDIVIDUAL DRINKING WATER WELLS OCCURS, THERE
SHALL BE A PRESUMPTION THAT THE NATURAL GAS DRILLING IS RESPONSIBLE FOR
SUCH CONTAMINATION UNLESS THE NATURAL GAS DRILLER CAN SHOW, BY CLEAR AND
CONVINCING EVIDENCE, THAT SUCH DRILLER IS NOT THE SOURCE OF THE CONTAM-
INATION. UPON RECEIVING A REPORT OF AN INCIDENT OF WELL CONTAMINATION
FROM NATURAL GAS DRILLING, THE DEPARTMENT SHALL INVESTIGATE SUCH REPORT
WITHIN TWENTY-FOUR HOURS AND SHALL HAVE THE AUTHORITY TO ORDER IMMEDIATE
REMEDIAL ACTION, INCLUDING ISSUING IMMEDIATE CEASE AND DESIST ORDERS
WITH RESPECT TO THE DRILLING ACTIVITY. IN THE EVENT THAT THE DEPARTMENT
IS UNABLE TO INVESTIGATE SUCH REPORT WITHIN TWENTY-FOUR HOURS, IT MAY
REQUEST THAT LOCAL OR STATE POLICE AUTHORITIES CONFIRM THE INCIDENT AND
REPORT AND, IF CONFIRMED, SHALL ISSUE A CEASE AND DESIST ORDER TO SUCH
DRILLER UNTIL IT SHALL MAKE SUCH INVESTIGATION AND DETERMINE THE PROPER
COURSE OF INSURING FULL REMEDIATION.
S. 24 3
4. ANY SPILLS OR PROHIBITED DISCHARGES OF HYDRAULIC FRACTURING
COMPOUNDS SHALL BE IMMEDIATELY REPORTED BY THE NATURAL GAS DRILLER TO
THE DEPARTMENT, WHICH SHALL ESTABLISH PROCEDURES FOR RECORDING AND
REVIEWING SUCH REPORTS AND FOR ORDERING REMEDIAL ACTION TO CONTAIN THE
SPILL AND KEEP THE SPILL OR DISCHARGE INCIDENT FROM BEING REPEATED. THE
DEPARTMENT SHALL HAVE THE AUTHORITY TO IMPOSE FINES FOR FAILURE TO
REPORT SUCH INCIDENTS, TO ORDER IMMEDIATE CLEANUP OF SUCH SPILLS AT THE
EXPENSE OF SUCH DRILLER AND, SHOULD SUCH DRILLER FAIL TO DO SO IN A
TIMELY FASHION, TO ENTER INTO THE DRILLING AREA AND DO THE CLEANUP
ITSELF, AT THE EXPENSE OF SUCH DRILLER. IN ANY INSTANCE WHERE SUCH DRIL-
LER SHALL REFUSE TO CARRY OUT A DEPARTMENT CLEANUP OR REMEDIAL ACTION
ORDER IN A TIMELY AND APPROPRIATE MANNER, THE DEPARTMENT SHALL ORDER ALL
DRILLING ACTIVITY TO CEASE AND DESIST UNTIL SUCH TIME AS THE SPILL HAS
BEEN CLEANED UP AND SUCH DRILLER HAS REMEDIATED THE CONDITIONS OR PRAC-
TICES THAT CAUSED THE SPILL.
5. ANY DRILLER OF NATURAL GAS WHO KNOWINGLY ATTEMPTS TO COVER UP A
SPILL OR PROHIBITED DISCHARGE SHALL BE GUILTY OF A CLASS A MISDEMEANOR.
ANY DRILLER OF NATURAL GAS WHO KNOWINGLY DISCHARGES HYDRAULIC FRACTURING
COMPOUNDS INTO THE SURFACE WATERS OF THE STATE SHALL BE GUILTY OF A
CLASS E FELONY.
6. NOTHING IN THIS TITLE OR ANY OTHER LAW OR REGULATION SHALL ALTER,
LIMIT, IMPAIR OR OTHERWISE AFFECT THE AUTHORITY OF THE STATE OF NEW
YORK, OR THE AUTHORITY OF THE CITY OF NEW YORK IN THE NEW YORK CITY
WATERSHED, TO TAKE WHATEVER MEASURES ARE NECESSARY UNDER THE LAW TO
PROTECT THE QUALITY AND SAFETY OF THE SOURCES OF THE DRINKING WATERS OF
NEW YORK STATE.
S 23-2903. DISCLOSURE OF HYDRAULIC FRACTURING MATERIALS.
1. ALL COMPONENTS OF HYDRAULIC FRACTURING MATERIALS SHALL BE DISCLOSED
TO THE DEPARTMENT AT THE TIME OF APPLICATION FOR A WELL PERMIT FOR THE
DRILLING OF NATURAL GAS PURSUANT TO THIS ARTICLE.
(A) EMERGENCY HEALTH SITUATION. WHEN A HEALTH PROFESSIONAL DETERMINES
THAT A MEDICAL EMERGENCY EXISTS RELATED TO A HYDRAULIC FRACTURING OPERA-
TION AND THE INGREDIENTS AND SPECIFIC CHEMICAL IDENTITY OF A HYDRAULIC
FRACTURING FLUID IS NECESSARY FOR EMERGENCY OR FIRST-AID TREATMENT, THE
HYDRAULIC FRACTURING OPERATOR SHALL IMMEDIATELY DISCLOSE THE SPECIFIC
CHEMICAL IDENTITY OF A TRADE SECRET CHEMICAL TO THE TREATING HEALTH
PROFESSIONAL, REGARDLESS OF THE EXISTENCE OF A WRITTEN STATEMENT OF NEED
OR A CONFIDENTIALITY AGREEMENT.
(B) NON-EMERGENCY HEALTH SITUATION. WHEN A HEALTH PROFESSIONAL OR
GOVERNMENT AGENCY DETERMINES THAT THE INGREDIENTS AND SPECIFIC CHEMICAL
IDENTITY OF A HYDRAULIC FRACTURING FLUID ARE NECESSARY FOR MEDICAL
TREATMENT, AN OPERATOR SHALL DISCLOSE A SPECIFIC CHEMICAL IDENTITY TO A
HEALTH PROFESSIONAL OR GOVERNMENT AGENCY IF A REQUEST HAS BEEN MADE IN
WRITING THAT DESCRIBES WITH REASONABLE DETAIL ONE OR MORE HEALTH OR
SAFETY NEEDS FOR THE INFORMATION AND INCLUDES A DESCRIPTION OF THE
PROCEDURES TO BE USED TO MAINTAIN THE CONFIDENTIALITY OF THE DISCLOSED
INFORMATION. THE HEALTH PROFESSIONAL OR GOVERNMENT AGENCY SHALL AGREE IN
A WRITTEN CONFIDENTIALITY AGREEMENT THAT THE TRADE SECRET INFORMATION
WILL NOT BE USED FOR ANY PURPOSE OTHER THAN THE HEALTH NEEDS ASSERTED
AND SHALL AGREE NOT TO RELEASE THE INFORMATION UNDER ANY CIRCUMSTANCES
OTHER THAN TO A HEALTH PROFESSIONAL OR GOVERNMENT AGENCY.
2. NO NATURAL GAS DRILLER MAY CHANGE THE COMPONENTS OR COMPOSITION OF
HYDRAULIC FRACTURING MATERIALS FROM THOSE SPECIFIED IN ITS PERMIT APPLI-
CATION WITHOUT FIRST FILING FOR AND RECEIVING A MODIFICATION OF SUCH
PERMIT.
S. 24 4
3. THE DEPARTMENT SHALL ESTABLISH A STANDARD FOR THE COMPOSITION OF
HYDRAULIC FRACTURING COMPOUNDS AND REQUIRE NATURAL GAS DRILLERS TO USE
SUCH STANDARD. THE DEPARTMENT SHALL HAVE THE POWER TO PROHIBIT THE USE
OF SPECIFIC CHEMICALS IN THE COMPOSITION OF HYDRAULIC FRACTURING MATERI-
ALS.
4. HYDRAULIC FRACTURING LIQUIDS AND LIQUID WASTE FROM DRILLING MAY NOT
BE STORED IN OPEN LAGOONS, BUT MUST BE KEPT IN CORROSION PROOF TANKS.
5. NOTWITHSTANDING ANY OTHER PROVISION OF LAW OR ADMINISTRATIVE DETER-
MINATION, HYDRAULIC FRACTURING MATERIAL SHALL BE REGARDED AS HAZARDOUS
WASTE AND TREATED AND DISPOSED OF AS SUCH.
6. THE DEPARTMENT SHALL ISSUE REGULATIONS REQUIRING THE TRACKING OF
ALL CHEMICAL COMPONENTS OF HYDRAULIC FRACTURING MATERIALS AND SHALL HAVE
THE POWER TO ENFORCE SUCH REGULATIONS BY APPROPRIATE FINES AND CEASE AND
DESIST ORDERS.
S 23-2905. PROTECTION OF OTHER ENVIRONMENTAL RESOURCES.
1. DRILLERS OF NATURAL GAS SHALL BE RESPONSIBLE FOR MITIGATING ALL
DAMAGE TO ANY REGULATED ENVIRONMENTAL RESOURCES, INCLUDING BUT NOT
LIMITED TO AIR, WETLANDS, STREAM CORRIDORS, AND ENDANGERED AND THREAT-
ENED SPECIES HABITAT.
2. WELL PERMITS FOR THE DRILLING OF NATURAL GAS SHALL NOT BE GRANTED
IN ANY AREA WHERE SUCH DRILLING SHALL ADVERSELY IMPACT THE RECOVERY OF
THREATENED OR ENDANGERED SPECIES OR WHERE IT SHALL DESTROY OR DEGRADE
OTHER UNIQUE NATURAL OR SCENIC RESOURCES. WELL PERMITS FOR THE DRILLING
OF NATURAL GAS SHALL NOT BE GRANTED IN ANY AREA THAT IS DESIGNATED AS
FOREVER WILD UNDER THE STATE CONSTITUTION OR LAWS, IN STATE PARKS, IN
AREAS IDENTIFIED FOR STATE ACQUISITION AND/OR PROTECTION UNDER THE STATE
OPEN SPACE PLAN, OR IN STATE FORESTS AND STATE PARKS.
3. APPLICATIONS FOR A WELL PERMIT FOR THE DRILLING OF NATURAL GAS
SHALL INCLUDE AN ASSESSMENT OF ITS IMPACT ON LOCAL BIODIVERSITY
RESOURCES AND A SHOWING THAT SUCH DRILLING SHALL BE WITHIN THE LEASEHOLD
AT THE LOWEST IMPACT POINT ON WILDLIFE. TO MINIMIZE IMPACT THROUGH
EITHER GROUND DISTURBANCE OR TRAFFIC, ALL EFFORTS SHALL BE MADE TO CLUS-
TER WELLS, CENTRALIZE OPERATIONS, AND USE TELEMETRY. IF NECESSARY,
SEASONAL RESTRICTIONS SHALL BE IMPOSED TO PROTECT WILDLIFE BREEDING OR
MIGRATION.
4. APPLICATIONS FOR A WELL PERMIT FOR THE DRILLING OF NATURAL GAS
SHALL LIST ALL EXPECTED EMISSIONS OF AIR POLLUTANTS, INCLUDING, BUT NOT
LIMITED TO, ALL GREENHOUSE GASES SUCH AS METHANE. THE DEPARTMENT SHALL
HAVE THE AUTHORITY TO SPECIFY LIMITS ON ALL SUCH AIR EMISSIONS AS A
CONDITION OF GRANTING SUCH PERMIT, TO REQUIRE APPROPRIATE EMISSIONS
MONITORING AND CONTROLS BY THE OPERATOR, AND TO DENY ANY PERMIT WHOSE
OPERATION SHALL BE INCONSISTENT WITH STATE POLICY AND REGULATIONS WITH
RESPECT TO ADDRESSING GLOBAL WARMING.
S 23-2907. PROTECTION OF LOCAL RESOURCES.
1. THE DEPARTMENT SHALL HAVE THE AUTHORITY TO IMPOSE FEES TO COMPEN-
SATE LOCAL GOVERNMENT FOR ANY COSTS OR IMPACTS IMPOSED UPON SUCH GOVERN-
MENTS AS A RESULT OF DRILLING FOR NATURAL GAS.
2. THE DEPARTMENT, IN ITS PERMITTING DECISIONS, SHALL TAKE CARE TO
INSURE THAT NATURAL GAS WELLS ARE SITUATED IN WAYS THAT MAXIMIZE FIELD
PRODUCTIVITY WHILE MINIMIZING IMPACTS ON THE LANDSCAPE. FOR THIS
PURPOSE, THE DEPARTMENT MAY, WITHIN SPECIFIC REGIONAL AREAS, ESTABLISH
PROCEDURES TO REQUIRE PERIODIC BATCH PROCESSING OF PERMIT APPLICATIONS,
INCLUDING MANDATORY DATES FOR APPLICATION SUBMISSION, AND MAY IMPOSE
WELL CLUSTERING, CENTRALIZED OPERATIONS, AND THE USE OF TELEMETRY.
3. ALL SITING OF NATURAL GAS DRILLING ACTIVITY SHALL CONFORM TO LOCAL
ZONING.
S. 24 5
4. ANY PERMIT HOLDER SHALL BE REQUIRED, AT THE END OF ITS DRILLING
OPERATIONS, TO FULLY RESTORE THE DRILL SITE TO ITS PREVIOUS NATURAL
CONDITION. TO ENFORCE THE PROVISIONS OF THIS SUBDIVISION, BEFORE ANY
LAND CLEARING OPERATIONS RELATED TO DRILLING ARE COMMENCED, SUCH PERMIT
HOLDER SHALL FILE WITH THE DEPARTMENT, A NON-REVOCABLE AND BANKRUPTCY
PROOF BOND SUFFICIENT, UNDER REGULATIONS TO BE ISSUED BY THE DEPARTMENT,
TO COVER ALL FORESEEABLE COSTS OF SITE RESTORATION.
5. GAS DRILLING OPERATIONS SHALL BE CONDUCTED IN A MANNER THAT SHALL
NOT BURDEN ADJACENT LANDOWNERS AND RESIDENTS. NO NOISE AUDIBLE INDOORS
IN RESIDENCES LOCATED ON ADJACENT PROPERTY SHALL BE PERMITTED BETWEEN
THE HOURS OF 8:00 PM AND 8:00 AM ON WEEKDAYS AND 6:00 PM AND 10:00 AM ON
WEEKENDS. SIMILARLY, NIGHT LIGHTING SHALL NOT BE OBTRUSIVE OR DISRUPTIVE
OF LIFE FOR SUCH ADJACENT LANDOWNERS AND RESIDENTS. THE DEPARTMENT SHALL
ENFORCE THE PROVISIONS OF THIS SUBDIVISION BY APPROPRIATE REGULATIONS
INCLUDING A SYSTEM OF FINES, AND SHALL FURTHER HAVE THE POWER TO ISSUE
CEASE AND DESIST ORDERS TO ENFORCE THESE PROTECTIONS AND PROTECT THE
QUIET ENJOYMENT OF LOCAL RESIDENTS.
6. LANDOWNERS FORCED INTO A PRODUCTION POOL SHALL BE ENTITLED TO
RECEIVE THE HIGHEST PAYMENT THAT ANY OTHER POOL MEMBER RECEIVES.
7. ANY LANDOWNER WHO ENTERS INTO A CONTRACT OR LEASE TO PERMIT THE
DRILLING FOR NATURAL GAS ON SUCH LANDOWNER'S PROPERTY SHALL HAVE A THIR-
TY DAY RIGHT OF RECISSION WITH RESPECT TO SUCH CONTRACT. DURING SUCH
THIRTY DAY PERIOD, SUCH LANDOWNER MAY CANCEL SUCH CONTRACT OR LEASE AT
ANY TIME WITHOUT PENALTY.
8. NO WELL PERMIT FOR THE DRILLING OF NATURAL GAS SHALL BE GRANTED FOR
A PERIOD LONGER THAN TEN YEARS. ANY PERMIT UNDER WHICH ACTUAL NATURAL
GAS EXTRACTION IS NOT UNDERTAKEN WITHIN FIVE YEARS SHALL EXPIRE AND BE
DEEMED NULL AND VOID.
9. THE DEPARTMENT, IN CONSULTATION WITH THE ATTORNEY GENERAL, SHALL
ISSUE GUIDANCE DOCUMENTS TO LANDOWNERS, WITH RESPECT TO THEIR RIGHTS
WITH RESPECT TO NATURAL GAS DRILLING CONTRACTS AND LEASES. THE DEPART-
MENT IS HEREBY AUTHORIZED TO REQUIRE STANDARD PROVISIONS IN SUCH
CONTRACTS OR LEASES IN ORDER TO PREVENT UNFAIR TREATMENT OF LANDOWNERS.
10. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, NATURAL GAS DRILLERS
SHALL BE RESPONSIBLE FOR THE COSTS OF ALL ENVIRONMENTAL DAMAGE WHICH
OCCURRED IN THE PROCESS OF DRILLING FOR AND EXTRACTING NATURAL GAS. THE
DEPARTMENT MAY REQUIRE THE PROVISION OF APPROPRIATE FINANCIAL SECURITY
TO ENSURE LANDOWNERS ARE PROTECTED FROM ANY CONTINGENT LIABILITY. SHOULD
DRILLING ACTIVITY LEAD TO DESIGNATION AS A BROWNFIELD SITE, AS DEFINED
IN SUBDIVISION TWO OF SECTION 27-1405 OF THIS CHAPTER, SUCH DRILLER, NOT
THE LANDOWNER, SHALL BE CONSIDERED TO BE PARTY IN THE CHAIN OF RESPONSI-
BILITY.
S 23-2909. WATER WITHDRAWALS.
ALL SURFACE OR GROUNDWATER WITHDRAWALS OF MORE THAN FIVE THOUSAND
GALLONS A DAY FOR NATURAL GAS DRILLING PURPOSES, OR MORE THAN ONE
PERCENT OF IN STREAM FLOW, SHALL REQUIRE A PERMIT FROM THE DEPARTMENT.
THE DEPARTMENT SHALL ISSUE REGULATIONS GOVERNING SUCH WITHDRAWALS,
INCLUDING PROVISIONS TO ASSURE THAT WATER WITHDRAWALS ARE LIMITED TO
LEVELS THAT DO NOT HARM STREAM ECOLOGY OR FISHERY RESOURCES.
S 23-2911. ENFORCEMENT AND FINANCIAL SECURITY.
1. NO PERMIT FOR THE DRILLING OF NATURAL GAS SHALL BE GRANTED IF SUCH
APPLICANT HAS FAILED TO MEET HIS ENVIRONMENTAL AND FINANCIAL OBLIGATIONS
UNDER A PREVIOUS PERMIT OR IF SUCH APPLICANT HAS UNPAID FINANCIAL
LIABILITIES TO EITHER THE STATE, A LOCAL GOVERNMENT OR A PRIVATE LAND-
OWNER.
S. 24 6
2. IN DETERMINING WHETHER OR NOT A PERMIT FOR THE DRILLING OF NATURAL
GAS SHALL BE GRANTED, THE DEPARTMENT SHALL CONSIDER THE PRIOR RECORD
UNDER PREVIOUS PERMITS OF THE APPLICANT. APPLICANTS WHO HAVE SHOWN A
PATTERN OF VIOLATION OF PERMIT CONDITIONS OR A LACK OF A PROPER STANDARD
OF CARE IN DRILLING OPERATIONS SHALL NOT BE GRANTED A PERMIT.
3. A PERMIT FOR THE DRILLING OF NATURAL GAS SHALL INCLUDE APPLICABLE
LEASE DOCUMENTS BETWEEN THE DRILLING COMPANY AND THE LANDOWNER OR LAND-
OWNERS FOR THE DRILLING SITE FOR WHICH THE APPLICATION IS MADE.
4. A PERMIT APPLICATION SHALL INCLUDE A COMPREHENSIVE HYDROLOGICAL
ASSESSMENT OF THE SUBSURFACE STRATA INCLUDING THE POTENTIAL FOR ANY
FISSURING THAT WOULD DRAW HYDRAULIC FRACTURING FLUID, NATURAL GAS OR
OTHER POLLUTANTS INTO WATER BEARING AQUIFER STRATA.
5. THE DEPARTMENT SHALL PROVIDE FOR UNANNOUNCED INSPECTIONS OF ALL
NATURAL GAS DRILLING SITES AND FOR THE PROVISION OF SOIL TESTING TO
DETERMINE THE PRESENCE OF UNREPORTED SPILLS.
6. THE DEPARTMENT SHALL REQUIRE THAT ALL CASING CONSTRUCTION BE
CARRIED OUT IN THE PRESENCE OF INDEPENDENT QUALITY CONTROL ENGINEERS.
THE DEPARTMENT SHALL HAVE THE AUTHORITY TO SPECIFY STANDARDS FOR CASING
CONSTRUCTION, INCLUDING COMPOSITION OF CONCRETE AND OTHER TECHNICAL
PARAMETERS FOR DEEP WELL CONSTRUCTION TO INSURE MAXIMUM CASING INTEGRITY
AND PREVENT LEAKAGE OF HYDRAULIC FRACTURING COMPOUNDS, NATURAL GAS AND
OTHER SUBSURFACE MATERIALS INTO WATER BEARING STRATA. THE DEPARTMENT
SHALL, OVER THE LIFE OF THE WELL, CARRY OUT PERIODIC INSPECTIONS TO
ENSURE THAT CASING INTEGRITY IS MAINTAINED.
S 23-2913. OTHER PROVISIONS.
1. THE STATE COMPTROLLER SHALL ANNUALLY AUDIT ALL ROYALTY PAYMENTS TO
THE STATE AND LOCAL GOVERNMENTS, INCLUDING THE GAS PRODUCTION AND SALES
FIGURES ON WHICH THEY ARE BASED, AND SHALL HAVE THE AUTHORITY TO REQUIRE
APPROPRIATE FISCAL REPORTING AND RECORD KEEPING BY BOTH NATURAL GAS
PRODUCERS AND OTHER DEPARTMENTS OF STATE GOVERNMENT CHARGED WITH THEIR
SUPERVISION.
2. THE STATE COMPTROLLER SHALL HAVE THE AUTHORITY TO PERIODICALLY
AUDIT PAYMENTS MADE UNDER DRILLING CONTRACTS AND LEASES TO PRIVATE LAND-
OWNERS, INCLUDING THE GAS PRODUCTION AND SALES FIGURES ON WHICH THEY ARE
BASED, TO DETERMINE THAT THEY ARE IN COMPLIANCE WITH THE PROVISIONS OF
THE CONTRACT OR LEASE AND ALL APPLICABLE LAWS.
3. THE DEPARTMENT SHALL ESTABLISH AN IMPARTIAL TECHNICAL ADVISORY
COMMITTEE, WHOSE RESEARCH AND WORK SHALL BE SUPPORTED BY PERMIT FEES, TO
REVIEW AND ISSUE GUIDANCE DOCUMENTS ON GAS DRILLING BEST PRACTICES.
SUCH COMMITTEE SHALL INCLUDE AT LEAST ONE REPRESENTATIVE FROM THE
FOLLOWING INTEREST GROUPS: THE ENVIRONMENTAL COMMUNITY; THE PUBLIC
HEALTH COMMUNITY; AND THE GAS DRILLING INDUSTRY, ALONG WITH PERSONS FROM
THE DEPARTMENT OR OTHERS THE DEPARTMENT DEEMS APPROPRIATE. THE DEPART-
MENT MAY REQUIRE COMPLIANCE WITH SUCH PRACTICES AS A CONDITION OF PERMIT
APPROVAL.
S 3. This act shall take effect on the one hundred twentieth day after
it shall have become a law, provided, however, that effective immediate-
ly, the addition, amendment and/or repeal of any rule or regulation
necessary for the implementation of this act on its effective date is
authorized to be made and completed on or before such date.