Bill Text: NY A06365 | 2013-2014 | General Assembly | Introduced
Bill Title: Relates to the regulation of the drilling of natural gas resources; prohibits natural gas drilling near watersheds; requires disclosure of hydraulic materials; provides protection of other environmental resources; requires permits for water withdrawals of more than five thousand gallons per day; requires inspections and annual audits.
Spectrum: Partisan Bill (Democrat 21-0)
Status: (Introduced - Dead) 2014-01-08 - referred to environmental conservation [A06365 Detail]
Download: New_York-2013-A06365-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 6365 2013-2014 Regular Sessions I N A S S E M B L Y March 26, 2013 ___________ Introduced by M. of A. BRENNAN, COLTON, MILLMAN, CASTRO, LIFTON, LENTOL, CLARK, KELLNER, PAULIN, BARRON, KAVANAGH, CAMARA, CRESPO, TITONE, SCHIMEL -- Multi-Sponsored by -- M. of A. COOK, CYMBROWITZ, GLICK, GOTTFRIED, JACOBS, MAISEL, ROBINSON, ROSENTHAL, WEISENBERG -- read once and referred 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: 1 Section 1. Legislative intent. 1. The legislature finds that the proc- 2 ess used to stimulate natural gas extraction referred to as hydraulic 3 fracturing utilizes components that are often toxic, that are non-biode- 4 gradable, and that are virtually impossible to remove once they enter 5 the natural environment. Thus, they pose such a high level of environ- 6 mental risk that the policy of the state must be to insure they are 7 excluded from any area that is significant for public drinking water 8 resources or any other area that is environmentally sensitive. 9 2. Natural gas drilling is potentially highly transformative of rural 10 landscapes, offering economic benefits to many landowners, but threaten- 11 ing the property values of other local landowners, traditional rural 12 economic activity, the carrying capacity of local infrastructure, the 13 natural habitat of wildlife, and the public health and quality of life 14 of residents in areas where there is natural gas extraction taking 15 place. Unless these resources are protected in the permitting and regu- 16 latory processes of the state, the costs of Marcellus shale natural gas 17 extraction will exceed the benefits and natural gas extraction will 18 become a fundamentally unfair and divisive process in which the profits 19 of some are subsidized by the costs to others. 20 3. The proposed scope of natural gas drilling across the state of New 21 York will present unprecedented challenges of regulatory oversight. 22 Funding for such oversight must be sufficient to meet this challenge and EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01828-02-3 A. 6365 2 1 should come from a series of fees paid by the natural gas industry. 2 Similarly, the natural gas industry should pay for all other costs asso- 3 ciated with natural gas extraction. Otherwise, natural gas extraction 4 will be unfairly subsidized, either by the New York state taxpayer or 5 by the impacts on local human and natural resources. 6 4. One of the chief environmental and infrastructure assets of the 7 state of New York is its drinking water systems, which play a fundamen- 8 tal role in the economic productivity and public health of the state. 9 The legislature finds that no risk to these resources and to the public 10 health of their users is acceptable and that the policy of the state 11 with respect to the management of shale gas extraction must be one of no 12 drinking water risk. 13 5. The purpose of this legislation is to insure that the exploitation 14 of shale natural gas resources is conducted in a manner that is consist- 15 ent with and supportive of New York state's commitment to sustainabili- 16 ty, and is consistent with other state economic development, energy and 17 environmental policies. 18 6. Therefore, in light of the many commitments the state of New York 19 has made to more sustainable development and the critical role greening 20 the state's economy will play in the future prosperity of the state, the 21 only acceptable natural gas extraction practices will be sustainable 22 ones. This act is intended to ensure that that goal is met. 23 S 2. Article 23 of the environmental conservation law is amended by 24 adding a new title 29 to read as follows: 25 TITLE 29 26 REGULATION OF NATURAL GAS DRILLING 27 SECTION 23-2901. NATURAL GAS DRILLING; PROHIBITION NEAR WATERSHED. 28 23-2903. DISCLOSURE OF HYDRAULIC FRACTURING MATERIALS. 29 23-2905. PROTECTION OF OTHER ENVIRONMENTAL RESOURCES. 30 23-2907. PROTECTION OF LOCAL RESOURCES. 31 23-2909. WATER WITHDRAWALS. 32 23-2911. ENFORCEMENT AND FINANCIAL SECURITY. 33 23-2913. OTHER PROVISIONS. 34 S 23-2901. NATURAL GAS DRILLING; PROHIBITION NEAR WATERSHED. 35 1. NATURAL GAS DRILLING SHALL NOT BE PERMITTED WITHIN THE NEW YORK 36 CITY WATERSHED OR AT ANY POINT WITHIN FIVE MILES OF ITS BOUNDARY. 37 2. NATURAL GAS DRILLING SHALL NOT BE PERMITTED WITHIN THE WATERSHED OF 38 THE DELAWARE RIVER, IN ANY RECHARGE AREA OF A SOLE SOURCE AQUIFER, IN 39 ANY AREA WHERE GROUNDWATER CONTRIBUTES A SIGNIFICANT BASE FLOW TO 40 SURFACE WATER SOURCES OF DRINKING WATER, AND IN ANY OTHER AREA WHERE THE 41 DEPARTMENT SHALL FIND PRESENTS A SIGNIFICANT THREAT OF HYDRAULIC FRAC- 42 TURING COMPOUNDS ENTERING INTO A SIGNIFICANT SOURCE OF DRINKING WATER. 43 3. NATURAL GAS DRILLING SHALL BE CONDUCTED IN WAYS THAT DO NOT CONTAM- 44 INATE DRINKING WATER. IN ANY AREA WHERE NATURAL GAS DRILLING TAKES PLACE 45 AND CONTAMINATION OF INDIVIDUAL DRINKING WATER WELLS OCCURS, THERE SHALL 46 BE A PRESUMPTION THAT THE NATURAL GAS DRILLING IS RESPONSIBLE FOR SUCH 47 CONTAMINATION UNLESS THE NATURAL GAS DRILLER CAN SHOW, BY CLEAR AND 48 CONVINCING EVIDENCE, THAT SUCH DRILLER IS NOT THE SOURCE OF THE CONTAM- 49 INATION. UPON RECEIVING A REPORT OF AN INCIDENT OF WELL CONTAMINATION 50 FROM NATURAL GAS DRILLING, THE DEPARTMENT SHALL INVESTIGATE SUCH REPORT 51 EXPEDITIOUSLY, BUT IN NO CASE MORE THAN TWENTY-FOUR HOURS AFTER SUCH 52 REPORT AND SHALL HAVE THE AUTHORITY TO ORDER IMMEDIATE REMEDIAL ACTION, 53 INCLUDING ISSUING IMMEDIATE CEASE AND DESIST ORDERS WITH RESPECT TO THE 54 DRILLING ACTIVITY. IN THE EVENT THAT THE DEPARTMENT IS UNABLE TO INVES- 55 TIGATE SUCH REPORT WITHIN TWENTY-FOUR HOURS, IT MAY REQUEST THAT LOCAL 56 OR STATE POLICE AUTHORITIES CONFIRM THE INCIDENT AND REPORT AND, IF A. 6365 3 1 CONFIRMED, SHALL ISSUE A CEASE AND DESIST ORDER TO SUCH DRILLER UNTIL IT 2 SHALL MAKE SUCH INVESTIGATION AND DETERMINE THE PROPER COURSE OF INSUR- 3 ING FULL REMEDIATION. 4 4. ANY SPILLS OR PROHIBITED DISCHARGES OF HYDRAULIC FRACTURING 5 COMPOUNDS SHALL BE IMMEDIATELY REPORTED BY THE NATURAL GAS DRILLER TO 6 THE DEPARTMENT, WHICH SHALL ESTABLISH PROCEDURES FOR RECORDING AND 7 REVIEWING SUCH REPORTS AND FOR ORDERING REMEDIAL ACTION TO CONTAIN THE 8 SPILL AND KEEP THE SPILL OR DISCHARGE INCIDENT FROM BEING REPEATED. THE 9 DEPARTMENT SHALL HAVE THE AUTHORITY TO IMPOSE FINES FOR FAILURE TO 10 REPORT SUCH INCIDENTS, TO ORDER IMMEDIATE CLEANUP OF SUCH SPILLS AT THE 11 EXPENSE OF SUCH DRILLER AND, SHOULD SUCH DRILLER FAIL TO DO SO IN A 12 TIMELY FASHION, TO ENTER INTO THE DRILLING AREA AND DO THE CLEANUP 13 ITSELF, AT THE EXPENSE OF SUCH DRILLER. IN ANY INSTANCE WHERE SUCH DRIL- 14 LER SHALL REFUSE TO CARRY OUT A DEPARTMENT CLEANUP OR REMEDIAL ACTION 15 ORDER IN A TIMELY AND APPROPRIATE MANNER, THE DEPARTMENT SHALL ORDER ALL 16 DRILLING ACTIVITY TO CEASE AND DESIST UNTIL SUCH TIME AS THE SPILL HAS 17 BEEN CLEANED UP AND SUCH DRILLER HAS REMEDIATED THE CONDITIONS OR PRAC- 18 TICES THAT CAUSED THE SPILL. 19 5. ANY DRILLER OF NATURAL GAS WHO KNOWINGLY ATTEMPTS TO COVER UP A 20 SPILL OR PROHIBITED DISCHARGE SHALL BE GUILTY OF A CLASS A MISDEMEANOR. 21 ANY DRILLER OF NATURAL GAS WHO KNOWINGLY DISCHARGES HYDRAULIC FRACTURING 22 COMPOUNDS INTO THE SURFACE WATERS OF THE STATE SHALL BE GUILTY OF A 23 CLASS E FELONY. 24 6. NOTHING IN THIS TITLE OR ANY OTHER LAW OR REGULATION SHALL ALTER, 25 LIMIT, IMPAIR OR OTHERWISE AFFECT THE AUTHORITY OF THE STATE OF NEW 26 YORK, OR THE AUTHORITY OF THE CITY OF NEW YORK IN THE NEW YORK CITY 27 WATERSHED, TO TAKE WHATEVER MEASURES ARE NECESSARY UNDER THE LAW TO 28 PROTECT THE QUALITY AND SAFETY OF THE SOURCES OF THE DRINKING WATERS OF 29 NEW YORK STATE. 30 S 23-2903. DISCLOSURE OF HYDRAULIC FRACTURING MATERIALS. 31 1. ALL COMPONENTS OF HYDRAULIC FRACTURING MATERIALS SHALL BE DISCLOSED 32 TO THE DEPARTMENT AT THE TIME OF APPLICATION FOR A WELL PERMIT FOR THE 33 DRILLING OF NATURAL GAS PURSUANT TO THIS ARTICLE. 34 (A) EMERGENCY HEALTH SITUATION. WHEN A HEALTH PROFESSIONAL DETERMINES 35 THAT A MEDICAL EMERGENCY EXISTS RELATED TO A HYDRAULIC FRACTURING OPERA- 36 TION AND THE INGREDIENTS AND SPECIFIC CHEMICAL IDENTITY OF A HYDRAULIC 37 FRACTURING FLUID IS NECESSARY FOR EMERGENCY OR FIRST-AID TREATMENT, THE 38 HYDRAULIC FRACTURING OPERATOR SHALL IMMEDIATELY DISCLOSE THE SPECIFIC 39 CHEMICAL IDENTITY OF A TRADE SECRET CHEMICAL TO THE TREATING HEALTH 40 PROFESSIONAL, REGARDLESS OF THE EXISTENCE OF A WRITTEN STATEMENT OF NEED 41 OR A CONFIDENTIALITY AGREEMENT. 42 (B) NON-EMERGENCY HEALTH SITUATION. WHEN A HEALTH PROFESSIONAL OR 43 GOVERNMENT AGENCY DETERMINES THAT THE INGREDIENTS AND SPECIFIC CHEMICAL 44 IDENTITY OF A HYDRAULIC FRACTURING FLUID ARE NECESSARY FOR MEDICAL 45 TREATMENT, AN OPERATOR SHALL DISCLOSE A SPECIFIC CHEMICAL IDENTITY TO A 46 HEALTH PROFESSIONAL OR GOVERNMENT AGENCY IF A REQUEST HAS BEEN MADE IN 47 WRITING THAT DESCRIBES WITH REASONABLE DETAIL ONE OR MORE HEALTH OR 48 SAFETY NEEDS FOR THE INFORMATION AND INCLUDES A DESCRIPTION OF THE 49 PROCEDURES TO BE USED TO MAINTAIN THE CONFIDENTIALITY OF THE DISCLOSED 50 INFORMATION. THE HEALTH PROFESSIONAL OR GOVERNMENT AGENCY SHALL AGREE IN 51 A WRITTEN CONFIDENTIALITY AGREEMENT THAT THE TRADE SECRET INFORMATION 52 WILL NOT BE USED FOR ANY PURPOSE OTHER THAN THE HEALTH NEEDS ASSERTED 53 AND SHALL AGREE NOT TO RELEASE THE INFORMATION UNDER ANY CIRCUMSTANCES 54 OTHER THAN TO A HEALTH PROFESSIONAL OR GOVERNMENT AGENCY. 55 2. NO NATURAL GAS DRILLER MAY CHANGE THE COMPONENTS OR COMPOSITION OF 56 HYDRAULIC FRACTURING MATERIALS FROM THOSE SPECIFIED IN ITS PERMIT APPLI- A. 6365 4 1 CATION WITHOUT FIRST FILING FOR AND RECEIVING A MODIFICATION OF SUCH 2 PERMIT. 3 3. THE DEPARTMENT SHALL ESTABLISH A STANDARD FOR THE COMPOSITION OF 4 HYDRAULIC FRACTURING COMPOUNDS AND REQUIRE NATURAL GAS DRILLERS TO USE 5 SUCH STANDARD. THE DEPARTMENT SHALL HAVE THE POWER TO PROHIBIT THE USE 6 OF SPECIFIC CHEMICALS IN THE COMPOSITION OF HYDRAULIC FRACTURING MATERI- 7 ALS. 8 4. HYDRAULIC FRACTURING LIQUIDS AND LIQUID WASTE FROM DRILLING MAY NOT 9 BE STORED IN OPEN LAGOONS, BUT MUST BE KEPT IN CORROSION PROOF TANKS. 10 5. NOTWITHSTANDING ANY OTHER PROVISION OF LAW OR ADMINISTRATIVE DETER- 11 MINATION, HYDRAULIC FRACTURING MATERIAL SHALL BE REGARDED AS HAZARDOUS 12 WASTE AND TREATED AND DISPOSED OF AS SUCH. 13 6. THE DEPARTMENT SHALL ISSUE REGULATIONS REQUIRING THE TRACKING OF 14 ALL CHEMICAL COMPONENTS OF HYDRAULIC FRACTURING MATERIALS AND SHALL HAVE 15 THE POWER TO ENFORCE SUCH REGULATIONS BY APPROPRIATE FINES AND CEASE AND 16 DESIST ORDERS. 17 S 23-2905. PROTECTION OF OTHER ENVIRONMENTAL RESOURCES. 18 1. DRILLERS OF NATURAL GAS SHALL BE RESPONSIBLE FOR MITIGATING ALL 19 DAMAGE TO ANY ENVIRONMENTAL RESOURCES, INCLUDING BUT NOT LIMITED TO AIR, 20 WETLANDS, STREAM CORRIDORS, AND ENDANGERED AND THREATENED SPECIES HABI- 21 TAT. 22 2. WELL PERMITS FOR THE DRILLING OF NATURAL GAS SHALL NOT BE GRANTED 23 IN ANY AREA WHERE SUCH DRILLING SHALL ADVERSELY IMPACT THE RECOVERY OF 24 THREATENED OR ENDANGERED SPECIES OR WHERE IT SHALL DESTROY OR DEGRADE 25 OTHER UNIQUE NATURAL OR SCENIC RESOURCES. WELL PERMITS FOR THE DRILLING 26 OF NATURAL GAS SHALL NOT BE GRANTED IN ANY AREA THAT IS DESIGNATED AS 27 FOREVER WILD UNDER THE STATE CONSTITUTION OR LAWS, IN STATE PARKS, IN 28 AREAS IDENTIFIED FOR STATE ACQUISITION AND/OR PROTECTION UNDER THE STATE 29 OPEN SPACE PLAN, OR IN STATE FORESTS AND STATE PARKS. 30 3. APPLICATIONS FOR A WELL PERMIT FOR THE DRILLING OF NATURAL GAS 31 SHALL INCLUDE AN ASSESSMENT OF ITS IMPACT ON LOCAL BIODIVERSITY 32 RESOURCES AND A SHOWING THAT SUCH DRILLING SHALL BE WITHIN THE LEASEHOLD 33 AT THE LOWEST IMPACT POINT ON WILDLIFE. TO MINIMIZE IMPACT THROUGH 34 EITHER GROUND DISTURBANCE OR TRAFFIC, ALL EFFORTS SHALL BE MADE TO CLUS- 35 TER WELLS, CENTRALIZE OPERATIONS, AND USE TELEMETRY. IF NECESSARY, 36 SEASONAL RESTRICTIONS SHALL BE IMPOSED TO PROTECT WILDLIFE BREEDING OR 37 MIGRATION. 38 4. APPLICATIONS FOR A WELL PERMIT FOR THE DRILLING OF NATURAL GAS 39 SHALL LIST ALL EXPECTED EMISSIONS OF AIR POLLUTANTS, INCLUDING, BUT NOT 40 LIMITED TO, ALL GREENHOUSE GASES SUCH AS METHANE. THE DEPARTMENT SHALL 41 HAVE THE AUTHORITY TO SPECIFY LIMITS ON ALL SUCH AIR EMISSIONS AS A 42 CONDITION OF GRANTING SUCH PERMIT, TO REQUIRE APPROPRIATE EMISSIONS 43 MONITORING AND CONTROLS BY THE OPERATOR, AND TO DENY ANY PERMIT WHOSE 44 OPERATION SHALL BE INCONSISTENT WITH STATE POLICY AND REGULATIONS WITH 45 RESPECT TO ADDRESSING GLOBAL WARMING. 46 S 23-2907. PROTECTION OF LOCAL RESOURCES. 47 1. THE DEPARTMENT SHALL HAVE THE AUTHORITY TO IMPOSE FEES TO COMPEN- 48 SATE LOCAL GOVERNMENT FOR ANY COSTS OR IMPACTS IMPOSED UPON SUCH GOVERN- 49 MENTS AS A RESULT OF DRILLING FOR NATURAL GAS. 50 2. THE DEPARTMENT, IN ITS PERMITTING DECISIONS, SHALL TAKE CARE TO 51 INSURE THAT NATURAL GAS WELLS ARE SITUATED IN WAYS THAT MAXIMIZE FIELD 52 PRODUCTIVITY WHILE MINIMIZING IMPACTS ON THE LANDSCAPE. FOR THIS 53 PURPOSE, THE DEPARTMENT MAY, WITHIN SPECIFIC REGIONAL AREAS, ESTABLISH 54 PROCEDURES TO REQUIRE PERIODIC BATCH PROCESSING OF PERMIT APPLICATIONS, 55 INCLUDING MANDATORY DATES FOR APPLICATION SUBMISSION, AND MAY IMPOSE 56 WELL CLUSTERING, CENTRALIZED OPERATIONS, AND THE USE OF TELEMETRY. A. 6365 5 1 3. ALL SITING OF NATURAL GAS DRILLING ACTIVITY SHALL CONFORM TO LOCAL 2 ZONING. 3 4. ANY PERMIT HOLDER SHALL BE REQUIRED, AT THE END OF ITS DRILLING 4 OPERATIONS, TO FULLY RESTORE THE DRILL SITE TO ITS PREVIOUS NATURAL 5 CONDITION. TO ENFORCE THE PROVISIONS OF THIS SUBDIVISION, BEFORE ANY 6 LAND CLEARING OPERATIONS RELATED TO DRILLING ARE COMMENCED, SUCH PERMIT 7 HOLDER SHALL FILE WITH THE DEPARTMENT, A NON-REVOCABLE AND BANKRUPTCY 8 PROOF BOND SUFFICIENT, UNDER REGULATIONS TO BE ISSUED BY THE DEPARTMENT, 9 TO COVER ALL FORESEEABLE COSTS OF SITE RESTORATION. 10 5. GAS DRILLING OPERATIONS SHALL BE CONDUCTED IN A MANNER THAT SHALL 11 NOT BURDEN ADJACENT LANDOWNERS AND RESIDENTS. NO NOISE AUDIBLE INDOORS 12 IN RESIDENCES LOCATED ON ADJACENT PROPERTY SHALL BE PERMITTED BETWEEN 13 THE HOURS OF 8:00 PM AND 8:00 AM ON WEEKDAYS AND 6:00 PM AND 10:00 AM ON 14 WEEKENDS. SIMILARLY, NIGHT LIGHTING SHALL NOT BE OBTRUSIVE OR DISRUPTIVE 15 OF LIFE FOR SUCH ADJACENT LANDOWNERS AND RESIDENTS. THE DEPARTMENT SHALL 16 ENFORCE THE PROVISIONS OF THIS SUBDIVISION BY APPROPRIATE REGULATIONS 17 INCLUDING A SYSTEM OF FINES, AND SHALL FURTHER HAVE THE POWER TO ISSUE 18 CEASE AND DESIST ORDERS TO ENFORCE THESE PROTECTIONS AND PROTECT THE 19 QUIET ENJOYMENT OF LOCAL RESIDENTS. 20 6. LANDOWNERS FORCED INTO A PRODUCTION POOL SHALL BE ENTITLED TO 21 RECEIVE THE HIGHEST PAYMENT THAT ANY OTHER POOL MEMBER RECEIVES. 22 7. ANY LANDOWNER WHO ENTERS INTO A CONTRACT OR LEASE TO PERMIT THE 23 DRILLING FOR NATURAL GAS ON SUCH LANDOWNER'S PROPERTY SHALL HAVE A THIR- 24 TY DAY RIGHT OF RECISSION WITH RESPECT TO SUCH CONTRACT. DURING SUCH 25 THIRTY DAY PERIOD, SUCH LANDOWNER MAY CANCEL SUCH CONTRACT OR LEASE AT 26 ANY TIME WITHOUT PENALTY. 27 8. NO WELL PERMIT FOR THE DRILLING OF NATURAL GAS SHALL BE GRANTED FOR 28 A PERIOD LONGER THAN TEN YEARS. ANY PERMIT UNDER WHICH ACTUAL NATURAL 29 GAS EXTRACTION IS NOT UNDERTAKEN WITHIN FIVE YEARS SHALL EXPIRE AND BE 30 DEEMED NULL AND VOID. 31 9. THE DEPARTMENT, IN CONSULTATION WITH THE ATTORNEY GENERAL, SHALL 32 ISSUE GUIDANCE DOCUMENTS TO LANDOWNERS, WITH RESPECT TO THEIR RIGHTS 33 WITH RESPECT TO NATURAL GAS DRILLING CONTRACTS AND LEASES. THE DEPART- 34 MENT IS HEREBY AUTHORIZED TO REQUIRE STANDARD PROVISIONS IN SUCH 35 CONTRACTS OR LEASES IN ORDER TO PREVENT UNFAIR TREATMENT OF LANDOWNERS. 36 10. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, NATURAL GAS DRILLERS 37 SHALL BE RESPONSIBLE FOR THE COSTS OF ALL ENVIRONMENTAL DAMAGE WHICH 38 OCCURRED IN THE PROCESS OF DRILLING FOR AND EXTRACTING NATURAL GAS. THE 39 DEPARTMENT MAY REQUIRE THE PROVISION OF APPROPRIATE FINANCIAL SECURITY 40 TO ENSURE LANDOWNERS ARE PROTECTED FROM ANY CONTINGENT LIABILITY. SHOULD 41 DRILLING ACTIVITY LEAD TO DESIGNATION AS A BROWNFIELD SITE, AS DEFINED 42 IN SUBDIVISION TWO OF SECTION 27-1405 OF THIS CHAPTER, SUCH DRILLER, NOT 43 THE LANDOWNER, SHALL BE CONSIDERED TO BE PARTY IN THE CHAIN OF RESPONSI- 44 BILITY. 45 S 23-2909. WATER WITHDRAWALS. 46 ALL SURFACE OR GROUNDWATER WITHDRAWALS OF MORE THAN FIVE THOUSAND 47 GALLONS A DAY FOR NATURAL GAS DRILLING PURPOSES, OR MORE THAN ONE 48 PERCENT OF IN STREAM FLOW, SHALL REQUIRE A PERMIT FROM THE DEPARTMENT. 49 THE DEPARTMENT SHALL ISSUE REGULATIONS GOVERNING SUCH WITHDRAWALS, 50 INCLUDING PROVISIONS TO ASSURE THAT WATER WITHDRAWALS ARE LIMITED TO 51 LEVELS THAT DO NOT HARM STREAM ECOLOGY OR FISHERY RESOURCES. 52 S 23-2911. ENFORCEMENT AND FINANCIAL SECURITY. 53 1. NO PERMIT FOR THE DRILLING OF NATURAL GAS SHALL BE GRANTED IF SUCH 54 APPLICANT HAS FAILED TO MEET HIS ENVIRONMENTAL AND FINANCIAL OBLIGATIONS 55 UNDER A PREVIOUS PERMIT OR IF SUCH APPLICANT HAS UNPAID FINANCIAL A. 6365 6 1 LIABILITIES TO EITHER THE STATE, A LOCAL GOVERNMENT OR A PRIVATE LAND- 2 OWNER. 3 2. IN DETERMINING WHETHER OR NOT A PERMIT FOR THE DRILLING OF NATURAL 4 GAS SHALL BE GRANTED, THE DEPARTMENT SHALL CONSIDER THE PRIOR RECORD 5 UNDER PREVIOUS PERMITS OF THE APPLICANT. APPLICANTS WHO HAVE SHOWN A 6 PATTERN OF VIOLATION OF PERMIT CONDITIONS OR A LACK OF A PROPER STANDARD 7 OF CARE IN DRILLING OPERATIONS SHALL NOT BE GRANTED A PERMIT. 8 3. A PERMIT FOR THE DRILLING OF NATURAL GAS SHALL INCLUDE APPLICABLE 9 LEASE DOCUMENTS BETWEEN THE DRILLING COMPANY AND THE LANDOWNER OR LAND- 10 OWNERS FOR THE DRILLING SITE FOR WHICH THE APPLICATION IS MADE. 11 4. A PERMIT APPLICATION SHALL INCLUDE A COMPREHENSIVE HYDROLOGICAL 12 ASSESSMENT OF THE SUBSURFACE STRATA INCLUDING THE POTENTIAL FOR ANY 13 FISSURING THAT WOULD DRAW HYDRAULIC FRACTURING FLUID, NATURAL GAS OR 14 OTHER POLLUTANTS INTO WATER BEARING AQUIFER STRATA. 15 5. THE DEPARTMENT SHALL PROVIDE FOR UNANNOUNCED INSPECTIONS OF ALL 16 NATURAL GAS DRILLING SITES AND FOR THE PROVISION OF SOIL TESTING TO 17 DETERMINE THE PRESENCE OF UNREPORTED SPILLS. 18 6. THE DEPARTMENT SHALL REQUIRE THAT ALL CASING CONSTRUCTION BE 19 CARRIED OUT IN THE PRESENCE OF INDEPENDENT QUALITY CONTROL ENGINEERS. 20 THE DEPARTMENT SHALL HAVE THE AUTHORITY TO SPECIFY STANDARDS FOR CASING 21 CONSTRUCTION, INCLUDING COMPOSITION OF CONCRETE AND OTHER TECHNICAL 22 PARAMETERS FOR DEEP WELL CONSTRUCTION TO INSURE MAXIMUM CASING INTEGRITY 23 AND PREVENT LEAKAGE OF HYDRAULIC FRACTURING COMPOUNDS, NATURAL GAS AND 24 OTHER SUBSURFACE MATERIALS INTO WATER BEARING STRATA. THE DEPARTMENT 25 SHALL, OVER THE LIFE OF THE WELL, CARRY OUT PERIODIC INSPECTIONS TO 26 ENSURE THAT CASING INTEGRITY IS MAINTAINED. 27 S 23-2913. OTHER PROVISIONS. 28 1. THE STATE COMPTROLLER SHALL ANNUALLY AUDIT ALL ROYALTY PAYMENTS TO 29 THE STATE AND LOCAL GOVERNMENTS, INCLUDING THE GAS PRODUCTION AND SALES 30 FIGURES ON WHICH THEY ARE BASED, AND SHALL HAVE THE AUTHORITY TO REQUIRE 31 APPROPRIATE FISCAL REPORTING AND RECORD KEEPING BY BOTH NATURAL GAS 32 PRODUCERS AND OTHER DEPARTMENTS OF STATE GOVERNMENT CHARGED WITH THEIR 33 SUPERVISION. 34 2. THE STATE COMPTROLLER SHALL HAVE THE AUTHORITY TO PERIODICALLY 35 AUDIT PAYMENTS MADE UNDER DRILLING CONTRACTS AND LEASES TO PRIVATE LAND- 36 OWNERS, INCLUDING THE GAS PRODUCTION AND SALES FIGURES ON WHICH THEY ARE 37 BASED, TO DETERMINE THAT THEY ARE IN COMPLIANCE WITH THE PROVISIONS OF 38 THE CONTRACT OR LEASE AND ALL APPLICABLE LAWS. 39 3. THE DEPARTMENT SHALL ESTABLISH AN IMPARTIAL TECHNICAL ADVISORY 40 COMMITTEE, WHOSE RESEARCH AND WORK SHALL BE SUPPORTED BY PERMIT FEES, TO 41 REVIEW AND ISSUE GUIDANCE DOCUMENTS ON GAS DRILLING BEST PRACTICES. 42 SUCH COMMITTEE SHALL INCLUDE AT LEAST ONE REPRESENTATIVE FROM THE 43 FOLLOWING INTEREST GROUPS: THE ENVIRONMENTAL COMMUNITY; THE PUBLIC 44 HEALTH COMMUNITY; AND THE GAS DRILLING INDUSTRY, ALONG WITH PERSONS FROM 45 THE DEPARTMENT OR OTHERS THE DEPARTMENT DEEMS APPROPRIATE. THE DEPART- 46 MENT MAY REQUIRE COMPLIANCE WITH SUCH PRACTICES AS A CONDITION OF PERMIT 47 APPROVAL. 48 S 3. This act shall take effect on the one hundred twentieth day after 49 it shall have become a law, provided, however, that effective immediate- 50 ly, the addition, amendment and/or repeal of any rule or regulation 51 necessary for the implementation of this act on its effective date is 52 authorized to be made and completed on or before such date.