Bill Text: NC S1384 | 2010 | Regular Session | Amended

North Carolina Senate Bill 1384 (Prior Session Legislation)

Bill Title: Remove Damage Cap/Review Offshore Oil Spills

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2010-05-26 - Ref To Com On Appropriations/Base Budget [S1384 Detail]

Download: North_Carolina-2010-S1384-Amended.html

GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2009

S 1

SENATE BILL 1384*

Short Title: Remove Damage Cap/Review Offshore Oil Spills.		(Public)
Sponsors:	Senators Dickson; Boseman, Graham, and Kinnaird.
Referred to:	Appropriations/Base Budget.

May 26, 2010

A BILL TO BE ENTITLED

AN ACT to (1) remove the cap on the total recovery by the state for damage to the public resources and for the cost of any oil or other hazardous substances cleanup arising from a discharge and (2) direct the coastal resources commission to conduct a review and examination concerning the oil spill associated with the British Petroleum Deepwater Horizon offshore drilling rig and the environmental and economic effects of that spill on the gulf coast region as well as the environmental and economic effects on North carolina were such an oil spill to affect the coastline of North Carolina eitheR BY TAKING PLACE OFF THE NORTH CAROLINA COAST Or BY TAKING PLACE ELSEWHERE YET REACHING THE WATERS AND COASTLINE OF NORTH CAROLINA.

The General Assembly of North Carolina enacts:

SECTION 1. G.S. 143‑215.89 reads as rewritten:

"§ 143‑215.89. Multiple liability for necessary expenses.

Any person liable for costs of cleanup of oil or other hazardous substances under this Part shall have a cause of action to recover such costs in part or in whole from any other person causing or contributing to the discharge of oil or other hazardous substances into the waters of the State, including any amount recoverable by the State as necessary expenses. The total recovery by the State for damage to the public resources pursuant to G.S. 143‑215.90 and for the cost of oil or other hazardous substances cleanup, arising from any discharge, shall not exceed the applicable limits prescribed by federal law with respect to the United States government on account of such discharge."

SECTION 2.(a) The Coastal Resources Commission shall review and examine all of the following:

(1) The state and federal permitting and consistency review process that approved the leases and granted the permits for the British Petroleum Deepwater Horizon offshore drilling rig off the Gulf Coast.

(2) The environmental and economic effects on the Gulf Coast region of the recent oil spill caused by the failure at the British Petroleum Deepwater Horizon offshore drilling rig.

(3) The effect of such a spill on North Carolina's environment, public health, and economy, including fisheries and tourism industries, were such an oil spill to affect the coastline of North Carolina either by taking place off the North Carolina coast or by taking place elsewhere yet reaching the waters and coastline of North Carolina.

SECTION 2.(b) Upon the review and examination under subsection (a) of this section, the Commission shall adopt temporary and permanent rules, pursuant to G.S. 113A‑107 and G.S. 113A‑124, to require data and information in addition to the data and information currently required by 15A North Carolina Administrative Code 7M.0403(f)(2) for State permits and federal consistency reviews for all energy facilities in or affecting any land or water use or natural resource of the North Carolina coastal area. Notwithstanding G.S. 150B‑21.1(a), the authorization to adopt temporary rules pursuant to this subsection shall continue in effect until 1 July 2011. This subsection satisfies the requirement for a statement of finding of need for a temporary rule set out in G.S. 150B‑21.1. The additional data and information required under this section shall include at least all of the following:

(1) An assessment of the potential for a blowout of any proposed well, including the estimated flow rate, total volume, and maximum duration of any blowout. This assessment should address the likelihood of surface intervention to stop the blowout, the availability of a rig to drill a relief well, rig package constraints, and the estimated time it would take to drill a relief well.

(2) A calculation of the volume of oil of the worst‑case discharge scenario based on the following guidelines:

a. For production platforms, the calculation of worst‑case discharge scenario shall include all of the following:

1. The maximum capacity of all oil storage tanks and flow lines on the facility. Under this sub‑subdivision, flow line volume may be estimated.

2. The volume of oil calculated to leak from a break in any pipeline connected to the facility considering shutdown time, the effect of hydrostatic pressure, gravity, frictional wall forces, and other factors.

3. The daily production volume from an uncontrolled blowout of the highest capacity well associated with the facility. In determining the daily production volume under this sub subdivision, reservoir characteristics, casing and production tubing sizes, and historical production and reservoir pressure data shall be considered.

b. For exploratory or development drilling operations, the calculation of worst‑case discharge scenario shall be based upon the daily volume possible from an uncontrolled blowout.

(3) A description of a spill response, including all of the following:

a. A description of the response equipment to be used to contain and recover the discharge to the maximum extent practicable. This description shall include the types, location, owner, quantity, and capabilities of the equipment as well as the effective daily recovery capacities, where applicable. The applicant shall calculate the effective daily recovery capacities. For operations at a drilling or production facility, the description shall include how the applicant is to address the initial spill volume upon arrival at the scene and the support operations for a blowout that continues for 30 days.

b. A description of the personnel, materials, and support vessels that are necessary to ensure that the response equipment described under sub‑subdivision a. of this subdivision is deployed and operated promptly and effectively. This description shall include the location and owner of these resources as well as the quantities and types of resources, if applicable.

c. A description of oil storage, transfer, and disposal equipment. This description shall include the types, location, owner, quantity, and capacities of the equipment.

d. An estimate of the amount of time needed to accomplish all of the following:

1. To procure the containment, recovery, and storage equipment described under this subdivision.

2. To procure the equipment transportation vessels.

3. To procure personnel to load and operate the containment, recovery, and storage equipment described under this subdivision.

4. To transfer the containment, recovery, and storage equipment described under this subdivision to all of the equipment transportation vessels.

5. To travel to the deployment site and to travel from an equipment storage area.

6. To deploy all identified containment, recovery, and storage equipment described under this subdivision.

(4) An assessment of the number of jobs lost in tourism, fishing, and other affected industries as a result of a worst‑case discharge scenario.

(5) An assessment of alternatives to the proposed offshore drilling project that would limit the likelihood of a spill, to include at least an assessment of energy conservation as alternative.

(6) An assessment of the potential damage from a worst‑case spill scenario to coastal resources, including at least an assessment of the potential damage to the following: offshore reefs; rock outcrops or hard bottoms; sea turtle nesting beaches; freshwater and saltwater wetlands and primary or secondary nursery areas; essential fish habitat; submerged aquatic vegetation beds; shellfish beds; anadromous fish spawning and nursing areas; colonial bird nesting colonies; shorebird nesting habitats; and artificial reefs, shipwrecks, and submerged archaeological resources.

(7) An explanation of specific measures to be taken to prevent and minimize damage to all of the coastal resources listed under subdivision (6) of this subsection.

(8) A detailed description of any chemical dispersants that may be used in response to a spill, including information related to the impact of dispersants on coastal resources. This description shall include a comparison of toxicity of available dispersants.

(9) An assessment of the potential for a spill to cause temporary or permanent violations of the federal and State water quality standards, including the antidegradation policy adopted pursuant to section 303(d) of the federal Clean Water Act (33 U.S.C. § 1313(d)).

SECTION 3. Pursuant to G.S. 113A‑107 and G.S. 113A‑124, the Commission of Coastal Resources shall adopt temporary and permanent rules to ensure that any impact assessment, as defined in 15A North Carolina Administrative Code 07M .0402(a), for any proposal for oil or gas exploration activities shall include a full discussion of the items described in subdivisions (1) through (9) of subsection (a) of 15A North Carolina Administrative Code 07M .0402(a) for a worst‑case discharge scenario associated with the proposal for oil or gas exploration activities. Notwithstanding G.S. 150B‑21.1(a), the authorization to adopt temporary rules pursuant to this section shall continue in effect until 1 July 2011. This section satisfies the requirement for a statement of finding of need for a temporary rule set out in G.S. 150B‑21.1.

SECTION 4. There is appropriated from the General Fund to the Coastal Resources Commission the sum of fifty thousand dollars ($50,000) for the 2010‑2011 fiscal year to be used to conduct the review and examination under this act.

SECTION 5. This act is effective when it becomes law and applies to any damage to public resources and to any oil or hazardous cleanup that occur on or after that date.