SB0630sam001 98TH GENERAL ASSEMBLY

Sen. Don Harmon

Filed: 5/31/2013

09800SB0630sam001 LRB098 04435 MGM 46443 a

AMENDMENT TO SENATE BILL 630

AMENDMENT NO. ______. Amend Senate Bill 630 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Oil and Gas Act is amended by adding Sections 29 and 30 as follows:

(225 ILCS 725/29 new)

Sec. 29. Horizontal hydraulic fracturing moratorium.

(a) As used in this Section and Section 30:

"Hydraulic fracturing" means the injection under pressure of any combination of fluids, gases, gels, or other materials into an underground geologic formation for the purpose of extracting gas, oil, or other hydrocarbons.

"Horizontal" means a deviation in a well's construction more than 100 feet laterally from the vertical line extending straight downward from the point of penetration at the surface of the wellbore.

(b) No person shall conduct horizontal hydraulic fracturing operations in this State. It is the express purpose of this Section and Section 30 of this Act, that a moratorium on horizontal hydraulic fracturing operations in this State shall continue until the General Assembly determines that Illinois has implemented and has the ability to enforce rules to protect the environment, public health, homes, and livelihoods from the harms otherwise likely to be caused by horizontal hydraulic fracturing. Any subsequent legislation regarding horizontal hydraulic fracturing operations in this State shall be informed by the findings and recommendations of the Hydraulic Fracturing Task Force under Section 30 of this Act.

(225 ILCS 725/30 new)

Sec. 30. The Hydraulic Fracturing Task Force.

(a) There is hereby created the Hydraulic Fracturing Task Force.

(b) The Task Force shall conduct a thorough, scientific, and public investigation reviewing, assessing, and addressing the potential dangers, environmental effects, and socio-economic costs of hydraulic fracturing (including wear, tear, and repair) to public health, private property, air quality, and water availability including issues of supply scarcity, water quality, public lands, livestock, wildlife, seismic vulnerability and preparedness, and public ways (such as roadways and highways); to assess the overall local and regional potential economic gains, losses, or both; and to consider issues of community integrity, including issues of self-determination.

(c) The Task Force shall perform a thorough review of all relevant and available scientific studies pertaining to hydraulic fracturing throughout the United States, including those conducted by state governments, universities in the United States and elsewhere, and reputable environmental and industry institutions. The Task Force shall also conduct a significant review of all regulations of hydraulic fracturing operations in all the states and in known localities throughout the United States.

(d) The Task Force shall gather information, review studies, evaluate testimony, and consider and summarize written comments received, and shall make written findings and recommendations regarding the economic and technological feasibility and reasonableness of conducting hydraulic fracturing in this State, as well as the potential environmental and health impacts from this activity.

(e) The Task Force shall identify and recommend any areas requiring further inquiry, study, or investigation and shall make recommendations, based on the evidence gathered, with respect to any prospective horizontal hydraulic fracturing operations in this State, consistent with the purpose set forth in subsection (b) of Section 29 of this Act.

(f) The Task Force shall gather information, including through public comments and public hearings, and shall, upon gathering all information available, make written findings and recommendations to the General Assembly and the Governor, including, but not limited to, investigation, findings, and recommendations concerning the following:

(1) the protection of the State's water resources, including the identification of potential contaminants, potential sources of environmental contamination, potential for migration of contaminants to surface and ground water resources, expected rate of water usage and its impact on aquifers, private wells, and public sources of drinking water, and potential health risks from any identified risks of contamination of water resources;

(2) potential impacts to agriculture, tourism, and other industries, such as the wine producing industry;

(3) potential impacts to wildlife and natural resources;

(4) potential chemicals used in hydraulic fracturing fluid and the safety and health implications of the use of these chemicals and the potential use of inert tracer chemicals to identify hydraulic fracturing fluid that has migrated;

(5) potential air emissions, including identifying potential air pollutants, point and nonpoint sources of releases of contaminants to the air, and recommended controls, monitoring, and regulation for these potential emissions;

(6) potential areas of regulation, including recommendations as to proper equipment standards, operating practices, set back requirements, environmental monitoring and sampling, the handling, storage, and disposal of hydraulic fracturing fluid, flowback, and any and all waste water and solid waste, including whether any of this waste should be classified as hazardous waste or radioactive waste, and any potential regulatory provisions required to protect water and air resources and public and private interests;

(7) identification of all risks, including effects on seismic activities and recommendations regarding the same;

(8) potential permitting requirements for hydraulic fracturing;

(9) potential concerns regarding the safeguarding of proprietary information, including trade secret and business confidential information;

(10) the practices of persons, sometimes referred to as landmen, in the leasing, acquisition, or both of oil rights, gas rights, mineral rights, subsurface rights, use of a surface lands, or a combination thereof, from land owners, including findings and recommendations for any rules over these practices;

(11) identification and summarization of information gathered at public hearings and in written comments from interested persons regarding proposed hydraulic fracturing operations in this State; and

(12) the propriety of procedures that may allow the placement of a well pad, support equipment, and structures, on land where the surface owner has not given express consent, or that may allow drilling and fracturing to occur underground where the surface owner has not given express consent.

(g) The Hydraulic Fracturing Task Force shall consist of the following members, with all appointments to the Task Force to be made within 30 days after the effective date of this amendatory Act of the 98th General Assembly:

(1) one member appointed by the Speaker of the House of Representatives;

(2) one member appointed by the House of Representatives Minority Leader;

(3) one member appointed by the President of the Senate;

(4) one member appointed by the Senate Minority Leader;

(5) one member appointed by the Office of the Attorney General;

(6) two members appointed by the Director of the Department of Natural Resources, one of whom shall be selected to represent public water systems;

(7) one member appointed by the Director of the Illinois Environmental Protection Agency;

(8) two members representing environmental organizations, one appointed by the Governor, and one attorney appointed by the Attorney General;

(9) two members representing the oil and gas industry, one appointed by the Governor, and one attorney appointed by the Attorney General;

(10) one member representing Illinois business and industrial interests appointed by the Governor;

(11) one member representing a statewide farm organization appointed by the Director of the Illinois Department of Agriculture;

(12) one member appointed by the Director of the Illinois Department of Agriculture who holds a position as a state conservationist;

(13) one member appointed by the United States Department of Agriculture Natural Resource Conservation Service;

(14) the Director of the Illinois Emergency Management Agency or his or her designee;

(15) two members appointed by the Director of the Illinois State Geological Survey, one of whom shall be a hydrologist and one of whom shall be a geologist;

(16) one member appointed by the Governor from the Illinois Stewardship Alliance;

(17) the Director of the Illinois Department of Insurance or his or her designee;

(18) the Director of the Illinois Office of Tourism or his or her designee;

(19) one member appointed by the Governor representing an environmental group working for the conservation of the Shawnee National Forest;

(20) one member appointed by the Illinois Pollution Control Board;

(21) one member appointed by the Board of the Illinois Association of Groundwater Professionals;

(22) one member appointed by the Lieutenant Governor from the Southern Illinois Farming Network;

(23) the Director of the Illinois Department of Public Health or his or her designee;

(24) one member appointed by the Governor from the Illinois Public Health Association;

(25) one member appointed by the Illinois State Board of Higher Education, representing a school of public health of a state university within this State;

(26) one member appointed by the Governor representing a statewide municipal organization; and

(27) one member appointed by the Governor representing a statewide county organization.

(h) The members of the Task Force shall designate a chairperson upon their first meeting, which shall take place no later than 90 days after the effective date of this amendatory Act of the 98th General Assembly.

(i) The Task Force shall conduct monthly or bi-monthly meetings, conference calls, or both, and shall conduct at least 3 public hearings, which shall be held at geographically convenient locations around the State, before filing its final written findings and recommendations in accordance with this Section. These hearings shall be determined by the Task Force on a schedule that is publicly announced in area newspapers, State buildings, websites, and other media no less than 3 weeks in advance of each hearing and in local newspapers no more than 3 months in advance of any given hearing in that geographic area. These hearings may be continued if all persons could not be heard, and all hearings shall be completed at least 3 months prior to the time for submission of the final written findings and recommendations.

(j) At the public hearings, the Task Force shall allow interested persons to present their views and comments and to present any written literature, statements, articles, or comments. Transcripts of all hearings shall be made available to the Task Force and the public. Based on attendance and time frames, the Task Force may set limits for the time each speaker may comment, but in no event shall less than 5 minutes be allowed per speaker and any speaker with technical or scientific credentials shall be given deference to testify at least 15 minutes or more. Equal time shall be given to all expert presentations of evidence and concerns.

(k) The members of the Task Force shall receive no compensation for their services on the Task Force, but shall be reimbursed for any ordinary and necessary expenses incurred in the performance of their duties, including reimbursement for mileage. The Task Force members may divide responsibilities as appropriate for the subject matter and as determined by majority vote of the Task Force or as given to the Chairman by a majority vote of the members. However, any member may investigate or inquire as to any issue listed in subsection (f) of this Section.

(l) The Department of Natural Resources and the Illinois Environmental Protection Agency shall each provide at least one full-time person to provide administrative staff support to the Task Force, as needed.

(m) All documents gathered by the Task Force shall be a public record and shall be made available as conveniently as possible for review by the public in as timely a manner as practicable, including making all information available in electronic form, through a website, or both.

(n) The Task Force shall provide its written findings and recommendations to the General Assembly and the Governor no later than 2 years after the effective date of this amendatory Act of the 98th General Assembly. The public record of documents, comments, and transcripts shall also be made available in electronic form or on a website. Individual members or any groups of members may file separate findings and recommendations or dissents on particular issues, but consensus of the entire Task Force is encouraged and all findings and recommendations by the entire Task Force shall be identified in the final written report.

(o) This Section 30 is repealed on December 31, 2015.

Section 99. Effective date. This Act takes effect upon becoming law.".