98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB3386

 

Introduced 2/14/2014, by Sen. Ira I. Silverstein

 

SYNOPSIS AS INTRODUCED:
 
225 ILCS 732/1-99
225 ILCS 732/1-138 new

    Amends the Hydraulic Fracturing Regulatory Act. Provides that no person shall conduct horizontal drilling with fracturing operations or high volume horizontal hydraulic fracturing operations in this State. Provides that the ban on any and all horizontal drilling with fracturing operations and high volume horizontal hydraulic fracturing operations in this State shall continue until the General Assembly determines that horizontal drilling with fracturing operations and high volume horizontal hydraulic fracturing operations can be allowed to occur in this State in a manner that is consistent with Article XI, Sections 1 and 2 of the Illinois Constitution. Changes the name of the Task Force on Hydraulic Fracturing Regulation to "the Task Force on Fracturing Regulation". Adds members to the task force. Creates additional responsibilities for the task force.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Hydraulic Fracturing Regulatory Act is
5amended by changing Section 1-99 and by adding Section 1-138 as
6follows:
 
7    (225 ILCS 732/1-99)
8    Sec. 1-99. Task Force on Hydraulic Fracturing Regulation.
9    (a) There is hereby created the Task Force on Hydraulic
10Fracturing Regulation.
11    (b) The task force shall consist of the following members
12as follows:
13        (1) Four legislators, appointed one each by the
14    President of the Senate, the Minority Leader of the Senate,
15    the Speaker of the House of Representatives, and the
16    Minority Leader of the House of Representatives;
17        (2) The Governor, or his or her representative;
18        (3) The Director of the Illinois Environmental
19    Protection Agency, or his or her representative;
20        (4) The Director of the Illinois Department of Natural
21    Resources, or his or her representative;
22        (5) The Attorney General of the State of Illinois, or
23    his or her representative;

 

 

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1        (6) The Director of the Illinois State Geological
2    Survey, or his or her representative;
3        (7) Four representatives from environmental
4    organizations, at least one of whom shall be a national
5    environmental organization, at least one of whom shall be a
6    Midwest regional environmental organization, and at least
7    one of whom shall be an Illinois-based environmental
8    organization, appointed by the Director of the Illinois
9    Department of Natural Resources; and
10        (8) Four representatives from entities representing
11    the interests of the oil and gas industry, at least one of
12    whom shall represent companies whose activities are
13    national in scope, at least one of whom shall represent
14    companies whose activities are primarily limited to this
15    State, at least one of whom shall represent an industry
16    trade association, and at least one of whom shall represent
17    a statewide labor federation representing more than one
18    international union, appointed by the Director of the
19    Illinois Department of Natural Resources; .
20        (9) One member appointed by the Director of the
21    Illinois Department of Agriculture who holds a position as
22    a State conservationist;
23        (10) The Director of the Illinois Emergency Management
24    Agency, or his or her representative;
25        (11) One member of the Illinois Stewardship Alliance
26    appointed by the Governor;

 

 

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1        (12) The Director of Insurance or his or her designee;
2        (13) The Director of the Illinois Office of Tourism or
3    his or her designee; this member should have a working
4    knowledge of the tourism industry in the Shawnee National
5    Forest;
6        (14) One member appointed by the Lieutenant Governor
7    representing a local environmental group working for the
8    conservation of the Shawnee National Forest;
9        (15) One member appointed by the Illinois Pollution
10    Control Board;
11        (16) One member appointed by the Board of the Illinois
12    Association of Groundwater Professionals;
13        (17) One member appointed by the Lieutenant Governor
14    from the Southern Illinois Farming Network;
15        (18) The Director of the Department of Public Health or
16    his or her designee;
17        (19) The Director of the Illinois Public Health
18    Association or his or her designee;
19        (20) One member appointed by the Governor representing
20    a statewide municipal organization;
21        (21) One member appointed by the Governor representing
22    a statewide county organization; and
23        (22) Three members appointed by the above members of
24    the Fracturing Task Force, who need not be Illinois
25    residents, but who are university employees and
26    independent scientists including:

 

 

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1            (A) One seismologist with a background in research
2        and publishing on induced seismicity secondary to oil
3        and natural gas extraction or secondary to oil and
4        natural gas waste disposal;
5            (B) One hydrologist with a background in research
6        and publishing on the hydrological effects of the oil
7        and natural gas industry, and fracturing in
8        particular; and
9            (C) One geologist with a background in research and
10        publishing on the oil and natural gas industry, and
11        fracturing in particular.
12    (c) (Blank). The Director of the Illinois Department of
13Natural Resources shall serve as chairperson of the task force,
14and the Department shall be responsible for administering its
15operations and ensuring that the requirements of this Section
16are met.
17    (d) The task force may consult with any persons or entities
18it deems necessary to carry out its mandate.
19    (e) Members of the task force shall be appointed no later
20than 90 days after the effective date of this amendatory Act of
21the 98th General Assembly. The members of the task force shall
22receive no compensation for serving as members of the task
23force and: .
24        (1) All members of the task force shall work in
25    collaboration with each other towards the stated goals and
26    completion of the mandated reports required by this Act.

 

 

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1        (2) All members of the task force shall designate a
2    chairperson by majority vote at their first meeting, which
3    shall take place no later than 120 days after the effective
4    date of this amendatory Act of the 98th General Assembly.
5        (3) All members of the task force shall be reimbursed
6    for any ordinary and necessary expenses incurred in the
7    performance of their duties, including reimbursement for
8    mileage.
9        (4) All members of the task force may divide
10    responsibilities as appropriate for the subject matter and
11    as determined by majority vote of the task force or as
12    given to the chairman by a majority vote of all the
13    members. However, any member of the combined task force may
14    investigate or inquire as to any issue listed in this Act.
15        (5) The Department and the Illinois Environmental
16    Protection Agency shall each provide at least one full-time
17    person to provide administrative staff support to the Task
18    Force, as needed.
19        (6) All documents gathered by the task force shall be a
20    public record and shall be made available as conveniently
21    as possible for review by the public in as timely a manner
22    as practicable, including making all information available
23    in electronic form through the Department's website.
24        (7) The task force shall conduct monthly or bi-monthly
25    meetings, conference calls, or both.
26    (f) The task force shall:

 

 

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1        (1) prepare a report evaluating the scope of horizontal
2    drilling with fracturing operations and high volume
3    horizontal hydraulic fracturing operations activity in the
4    State and an evaluation of the regulatory frameworks for
5    horizontal drilling with fracturing operations and high
6    volume horizontal hydraulic fracturing operations in all
7    other states in the United States; and
8        (2) provide recommendations to the General Assembly as
9    to whether further legislation is needed to regulate,
10    limit, or ban high volume horizontal hydraulic fracturing
11    or horizontal drilling with fracturing operations in this
12    State. In performing these tasks, the task force shall
13    consider, at a minimum, the data collected by the
14    Department under Section 1-98 of this Act and the Illinois
15    Oil and Gas Act; .
16        (3) conduct a thorough, scientific, and public
17    investigation reviewing, assessing, and addressing the
18    potential dangers, environmental effects, and
19    socio-economic costs of hydraulic fracturing and
20    horizontal drilling with fracturing, including wear, tear,
21    and repair, to public health, private property, air
22    quality, and water availability including issues of supply
23    scarcity, water quality, public lands, livestock,
24    wildlife, seismic vulnerability and preparedness, and
25    public ways, including roadways and highways; to assess the
26    overall local and regional potential economic gains,

 

 

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1    losses, or both; and to consider issues of community
2    integrity, including issues of self-determination;
3        (4) perform a thorough review of all relevant and
4    available scientific studies pertaining to hydraulic
5    fracturing and horizontal drilling with fracturing
6    operations throughout the United States, including those
7    conducted by state governments, universities in the United
8    States and elsewhere, and reputable environmental and
9    industry institutions; the task force shall also conduct a
10    significant review of all regulations of hydraulic
11    fracturing operations and horizontal drilling with
12    fracturing operations in every state and in known
13    localities throughout the United States;
14        (5) gather information, review studies, evaluate
15    testimony, consider and summarize written comments
16    received, and make written findings and recommendations
17    regarding the economic and technological feasibility and
18    reasonableness of conducting hydraulic fracturing or
19    horizontal drilling with fracturing operations in this
20    State, as well as the potential environmental and health
21    impacts from this activity;
22        (6) identify and recommend any areas requiring further
23    inquiry, study, or investigation and shall make
24    recommendations, based on the evidence gathered, with
25    respect to any prospective hydraulic fracturing operations
26    and horizontal drilling with fracturing operations in this

 

 

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1    State, consistent with the purpose set forth under
2    subsection (b) of Section 1-138 of this Act;
3        (7) gather information, including through public
4    comments and public hearings, and shall, upon gathering all
5    information available, make written findings and
6    recommendations to the General Assembly and the Governor,
7    including, but not limited to, investigation, findings,
8    and recommendations concerning the following:
9            (A) the protection of the State's water resources,
10        including the identification of potential
11        contaminants, potential sources of environmental
12        contamination, potential for migration of contaminants
13        to surface and ground water resources, expected rate of
14        water usage and its impact on aquifers, private wells,
15        and public sources of drinking water, and potential
16        health risks from any identified risks of
17        contamination of water resources;
18            (B) potential impacts to agriculture, tourism, and
19        other industries, including the wine producing
20        industry;
21            (C) potential impacts to wildlife and natural
22        resources;
23            (D) potential chemicals used in hydraulic
24        fracturing fluid or fracturing fluid and the safety and
25        health implications of the use of these chemicals and
26        the potential use of inert tracer chemicals to identify

 

 

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1        hydraulic fracturing fluid or fracturing fluid that
2        has emigrated;
3            (E) potential air emissions, including identifying
4        potential air pollutants, point and nonpoint sources
5        of releases of contaminants to the air, and recommended
6        controls, monitoring, and regulation for these
7        potential emissions;
8            (F) potential areas of regulation, including
9        recommendations as to proper equipment standards,
10        operating practices, set back requirements,
11        environmental monitoring and sampling, the handling,
12        storage, and disposal of hydraulic fracturing fluid,
13        fracturing fluids and gas, flowback, and any and all
14        wastewater and solid waste, including whether any of
15        this waste should be classified as hazardous waste or
16        radioactive waste, and any potential regulatory
17        provisions required to protect water and air resources
18        and public and private interests;
19            (G) identification of all risks, including effects
20        on seismic activities and recommendations regarding
21        the same;
22            (H) proposed permitting requirements for hydraulic
23        fracturing or horizontal drilling with fracturing
24        operations;
25            (I) potential concerns regarding the safeguarding
26        of proprietary information, including trade secret and

 

 

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1        business confidential information;
2            (J) the practices of landmen in the leasing,
3        acquisition, or both of oil rights, gas rights, mineral
4        rights, subsurface rights, use of a surface lands, or a
5        combination thereof, from land owners, including
6        findings and recommendations for any rules over these
7        practices;
8            (K) identification and summarization of
9        information gathered at public hearings and in written
10        comments from interested persons regarding proposed
11        hydraulic fracturing operations and horizontal
12        drilling with fracturing operations in this State; and
13            (L) the propriety of procedures that may allow the
14        placement of a well pad, support equipment, and
15        structures, on land where the surface owner has not
16        given express consent, or that may allow drilling and
17        fracturing to occur underground where the surface
18        owner has not given express consent; and
19        (8) conduct a 3-month public comment period with at
20    least 5 full-day public hearings, which shall be held in
21    each region of the Department (Northwestern Illinois,
22    Northeastern Illinois, East Central Illinois, West Central
23    Illinois, and Southern Illinois) at geographically
24    convenient locations, before filing its final written
25    findings and recommendations in accordance with this
26    Section. These hearings shall be determined by the Task

 

 

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1    Force on a schedule that is publicly announced in area
2    newspapers, State buildings, websites, and other general
3    and local media and newspapers no less than 4 weeks before
4    each hearing. These hearings may be to additional days if
5    all persons wanting to speak could not be heard, and all
6    hearings shall be completed at least 3 months before the
7    time for submission of the final written findings and
8    recommendations.
9    At the full day public hearings, the task force shall allow
10interested persons to present their views and comments and to
11present any written literature, statements, articles, or
12comments. Based on attendance and time frames, the task force
13may set limits for the time each speaker may comment, but in no
14event shall less than 5 minutes be allowed per speaker and any
15speaker with technical or scientific credentials shall be given
16deference to testify at least 15 minutes or more. Equal time
17shall be given to all expert presentations of evidence and
18concerns.
19    Transcripts of all hearings shall be made available to the
20task force and the public through the Department's website.
21    (f-5) The task force shall provide updates of its written
22findings and recommendations to the public, the General
23Assembly and the Governor every year for 2 years from the
24effective date of this amendatory Act of the 98th General. The
25public record of documents, comments, and transcripts shall
26also be made available in electronic form on the Department's

 

 

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1website. Individual members or any groups of members may file
2separate findings and recommendations or dissents on
3particular issues, but consensus of the entire task force is
4encouraged and all findings and recommendations by the entire
5task force shall be identified in the final written report.
6    (g) The task force shall submit its final report and
7recommendations specified in subsection (f) of this Section to
8the General Assembly on or before September 15, 2017 2016.
9    (h) The task force, upon issuance of its final report and
10recommendations, is dissolved and this Section is repealed.
11(Source: P.A. 98-22, eff. 6-17-13.)
 
12    (225 ILCS 732/1-138 new)
13    Sec. 1-138. Hydraulic fracturing and horizontal drilling
14with fracturing operations; banned.
15    (a) No person shall conduct horizontal drilling with
16fracturing operations or high volume horizontal hydraulic
17fracturing operations in this State. As used in this Act, "high
18volume horizontal hydraulic fracturing operations" means all
19stages of controlled directional drilling of a wells with
20lateral penetration of at least 100 feet through a geologic
21formation targeted for oil, natural gas liquids, or natural gas
22extraction which use the process of pumping fluids, gas, or
23other substances with or without a proppant down a well under
24pressure expressly designed to initiate and propagate
25fractures or fracture networks in the targeted geologic

 

 

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1formations to facilitate oil, natural gas liquids, or natural
2gas extraction.
3    (b) It is the express purpose of this Section that the
4Department shall stop accepting permit applications for any and
5all horizontal drilling with fracturing operations or high
6volume horizontal hydraulic fracturing operations in this
7State beginning on the effective date of this amendatory Act of
8the 98th General Assembly. It is the express purpose of this
9Section that a ban on any and all horizontal drilling with
10fracturing operations high volume horizontal hydraulic
11fracturing operations is imposed in this State beginning on the
12effective date of this amendatory Act of the 98th General
13Assembly.
14    (c) The ban on any and all horizontal drilling with
15fracturing operations and high volume horizontal hydraulic
16fracturing operations in this State shall continue until the
17General Assembly determines that horizontal drilling with
18fracturing operations and high volume horizontal hydraulic
19fracturing operations can be allowed to occur in this State in
20a manner that is consistent with Article XI, Sections 1 and 2
21of the Illinois Constitution. The General Assembly shall
22determine if, when, and how horizontal drilling with fracturing
23operations and high volume horizontal hydraulic fracturing
24operations can be conducted in a way that ensures that:
25        (1) a healthy environment will be protected and
26    maintained for each person residing in this State, all

 

 

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1    persons residing in this State, and future generations of
2    persons residing in Illinois;
3        (2) a healthy environment can be protected and
4    maintained for the benefit of the present generation and
5    future generations during and after horizontal drilling
6    with fracturing operations or high volume horizontal
7    hydraulic fracturing operations;
8        (3) the surface water, ground water, deep aquifers,
9    air, surface land, substrata, forests, wildlife, farmland,
10    earthquake zones, and climate of this State will be
11    protected from any present or future harms or damages from
12    horizontal drilling with fracturing operations or high
13    volume horizontal hydraulic fracturing operations;
14        (4) any rules adopted by the Department or any law for
15    horizontal drilling with fracturing operations or high
16    volume horizontal hydraulic fracturing operations would
17    have a high probability of being fully implemented and
18    enforced by State agencies including the Department;
19        (5) that the State agencies that might be involved in
20    enforcing any rules adopted by the Department or laws for
21    horizontal drilling with fracturing operations or high
22    volume horizontal hydraulic fracturing operations have the
23    ability, funding, trained and knowledgeable employees, and
24    the internal agency or departmental checks and balances
25    that would allow for the full enforcement of any rules or
26    laws to protect the environment, climate, public health,

 

 

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1    homes, property, livestock, domesticated animals,
2    businesses, livelihoods, and recreational areas and
3    activities of residents of this State from the harms and
4    damages otherwise likely to be caused by horizontal
5    drilling with fracturing operations or high volume
6    horizontal hydraulic fracturing operations; and
7        (6) that any subsequent legislation regarding
8    horizontal drilling with fracturing operations or high
9    volume horizontal hydraulic fracturing operations in this
10    State shall be informed by the findings and recommendations
11    of the Hydraulic Fracturing Task Force under section 1-99
12    of this Act.