SB2058 97TH GENERAL ASSEMBLY

LRB097 10134 JDS 50318 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB2058

Introduced 2/10/2011, by Sen. Michael W. Frerichs

SYNOPSIS AS INTRODUCED:

765 ILCS 530/6.5 new

Amends the Drilling Operations Act. Requires the Department of Natural Resource to approve certain well stimulation activities before they are undertaken. Requires the owners and operators of the affected wells to provide the Department with specific information concerning, among other things: the geological names, geological description, and the depth of the formation into which well stimulation fluids are to be injected; each stimulation fluid identified by additive type; the chemical compound name and Chemical Abstracts Service (CAS) number for each additive used; and a copy of the contractor's proposed well stimulation program design. Requires the owner or operator to provide a detailed description of the proposed well stimulation design. Prohibits the use of volatile organic compounds, such as benzene, toluene, ethylbenzene, and xylene, or any petroleum distillates for the specified types of well stimulation. Requires the owners and operators of the affected wells to provide certain information about the reuse and disposal of well stimulation fluids.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning civil law.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Drilling Operations Act is amended by adding Section 6.5 as follows:

(765 ILCS 530/6.5 new)

Sec. 6.5. Extraction of natural gas using hydraulic fracturing.

(a) An application for a permit to extract natural gas from shale using well stimulation fluids must be approved by the Department of Natural Resources prior to the initiation of any such extraction activity. The Director of Natural Resources shall require, prior to such extraction, the owner or operator to perform a suitable mechanical integrity test of the casing or of the casing-tubing annulus or other mechanical integrity test methods using procedures approved by the Department of Natural Resources.

(b) The owner or operator shall provide geological names, geological description, and the depth of the formation into which well stimulation fluids are to be injected.

(c) The owner or operator shall provide detailed information to the Director of Natural Resources concerning the base stimulation fluid source. The owner, operator, or service company shall also provide to the Director, for each stage of the well stimulation program, the following:

(1) each stimulation fluid identified by additive type;

(2) the chemical compound name and Chemical Abstracts Service (CAS) number for each additive used;

(3) the proposed rate or concentration for each additive;

(4) a copy of the contractor's proposed well stimulation program design; and

(5) any other information requested by the Director of the Environmental Protection Agency.

(d) The owner or operator shall also provide a detailed description of the proposed well stimulation design, which shall include:

(1) the anticipated surface treating pressure range;

(2) the maximum injection treating pressure; and

(3) the estimated or calculated fracture length and fracture height.

(e) The Department of Natural Resources shall post the information that it receives under subsections (c) and (d) on its Internet website for a period of not less than 5 years. In the interest of public health and safety, such information may not be claimed as a trade secret under this or any other Act.

(f) The injection of volatile organic compounds, such as benzene, toluene, ethylbenzene, and xylene, also known as BTEX compounds, or any petroleum distillates, is prohibited without exception.

(g) In addition to any other information that it must provide, the owner, operator, or service company shall provide the Director of Natural Resources the following post well stimulation detail:

(1) the actual total well stimulation treatment volume pumped;

(2) detail as to each fluid stage pumped, including actual volume by fluid stage, proppant rate or concentration, actual chemical additive name, type, concentration or rate, and amounts;

(3) the actual surface pressure and rate at the end of each fluid stage and the actual flush volume, rate, and final pump pressure; and

(4) the instantaneous shut-in pressure, and the actual 15-minute and 30-minute shut-in pressures when these pressure measurements are available.

(h) During the well stimulation operation, the owner or operator shall monitor and record the annulus pressure at the bradenhead. If intermediate casing has been set on the well being stimulated, the pressure in the annulus between the intermediate casing and the production casing shall also be monitored and recorded. A continuous record of the annulus pressure during the well stimulation shall be submitted.

(i) If, during the stimulation, the annulus pressure increases by more than 500 pounds per square inch gauge (psig) compared to the pressure immediately preceding the stimulation, the owner or operator shall verbally notify the Director of Natural Resources as soon as practical but no later than 24 hours following the incident. The owner or operator shall include a report containing all details pertaining to the incident, including corrective actions taken.

(j) The owner or operator shall provide information to the Director of Natural Resources as to the amounts, handling, and, if necessary, disposal at an identified appropriate disposal facility, or reuse of the well stimulation fluid load recovered during flow back, swabbing, or recovery from production facility vessels. Storage of that fluid shall be protective of groundwater as demonstrated by the use of either tanks or lined pits.