SB3386 98TH GENERAL ASSEMBLY

LRB098 19585 MGM 54777 b

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.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning regulation.

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

Section 5. The Hydraulic Fracturing Regulatory Act is amended by changing Section 1-99 and by adding Section 1-138 as follows:

(225 ILCS 732/1-99)

Sec. 1-99. Task Force on Hydraulic Fracturing Regulation.

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

(b) The task force shall consist of the following members as follows:

(1) Four legislators, appointed one each by the President of the Senate, the Minority Leader of the Senate, the Speaker of the House of Representatives, and the Minority Leader of the House of Representatives;

(2) The Governor, or his or her representative;

(3) The Director of the Illinois Environmental Protection Agency, or his or her representative;

(4) The Director of the Illinois Department of Natural Resources, or his or her representative;

(5) The Attorney General of the State of Illinois, or his or her representative;

(6) The Director of the Illinois State Geological Survey, or his or her representative;

(7) Four representatives from environmental organizations, at least one of whom shall be a national environmental organization, at least one of whom shall be a Midwest regional environmental organization, and at least one of whom shall be an Illinois-based environmental organization, appointed by the Director of the Illinois Department of Natural Resources; and

(8) Four representatives from entities representing the interests of the oil and gas industry, at least one of whom shall represent companies whose activities are national in scope, at least one of whom shall represent companies whose activities are primarily limited to this State, at least one of whom shall represent an industry trade association, and at least one of whom shall represent a statewide labor federation representing more than one international union, appointed by the Director of the Illinois Department of Natural Resources; .

(9) One member appointed by the Director of the Illinois Department of Agriculture who holds a position as a State conservationist;

(10) The Director of the Illinois Emergency Management Agency, or his or her representative;

(11) One member of the Illinois Stewardship Alliance appointed by the Governor;

(12) The Director of Insurance or his or her designee;

(13) The Director of the Illinois Office of Tourism or his or her designee; this member should have a working knowledge of the tourism industry in the Shawnee National Forest;

(14) One member appointed by the Lieutenant Governor representing a local environmental group working for the conservation of the Shawnee National Forest;

(15) One member appointed by the Illinois Pollution Control Board;

(16) One member appointed by the Board of the Illinois Association of Groundwater Professionals;

(17) One member appointed by the Lieutenant Governor from the Southern Illinois Farming Network;

(18) The Director of the Department of Public Health or his or her designee;

(19) The Director of the Illinois Public Health Association or his or her designee;

(20) One member appointed by the Governor representing a statewide municipal organization;

(21) One member appointed by the Governor representing a statewide county organization; and

(22) Three members appointed by the above members of the Fracturing Task Force, who need not be Illinois residents, but who are university employees and independent scientists including:

(A) One seismologist with a background in research and publishing on induced seismicity secondary to oil and natural gas extraction or secondary to oil and natural gas waste disposal;

(B) One hydrologist with a background in research and publishing on the hydrological effects of the oil and natural gas industry, and fracturing in particular; and

(C) One geologist with a background in research and publishing on the oil and natural gas industry, and fracturing in particular.

(c) (Blank). The Director of the Illinois Department of Natural Resources shall serve as chairperson of the task force, and the Department shall be responsible for administering its operations and ensuring that the requirements of this Section are met.

(d) The task force may consult with any persons or entities it deems necessary to carry out its mandate.

(e) Members of the task force shall be appointed no later than 90 days after the effective date of this amendatory Act of the 98th General Assembly. The members of the task force shall receive no compensation for serving as members of the task force and: .

(1) All members of the task force shall work in collaboration with each other towards the stated goals and completion of the mandated reports required by this Act.

(2) All members of the task force shall designate a chairperson by majority vote at their first meeting, which shall take place no later than 120 days after the effective date of this amendatory Act of the 98th General Assembly.

(3) All members of the task force shall be reimbursed for any ordinary and necessary expenses incurred in the performance of their duties, including reimbursement for mileage.

(4) All members of the task force 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 all the members. However, any member of the combined task force may investigate or inquire as to any issue listed in this Act.

(5) The Department 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.

(6) 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 the Department's website.

(7) The task force shall conduct monthly or bi-monthly meetings, conference calls, or both.

(f) The task force shall:

(1) prepare a report evaluating the scope of horizontal drilling with fracturing operations and high volume horizontal hydraulic fracturing operations activity in the State and an evaluation of the regulatory frameworks for horizontal drilling with fracturing operations and high volume horizontal hydraulic fracturing operations in all other states in the United States; and

(2) provide recommendations to the General Assembly as to whether further legislation is needed to regulate, limit, or ban high volume horizontal hydraulic fracturing or horizontal drilling with fracturing operations in this State. In performing these tasks, the task force shall consider, at a minimum, the data collected by the Department under Section 1-98 of this Act and the Illinois Oil and Gas Act; .

(3) conduct a thorough, scientific, and public investigation reviewing, assessing, and addressing the potential dangers, environmental effects, and socio-economic costs of hydraulic fracturing and horizontal drilling with 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, including 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;

(4) perform a thorough review of all relevant and available scientific studies pertaining to hydraulic fracturing and horizontal drilling with fracturing operations 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 and horizontal drilling with fracturing operations in every state and in known localities throughout the United States;

(5) gather information, review studies, evaluate testimony, consider and summarize written comments received, and make written findings and recommendations regarding the economic and technological feasibility and reasonableness of conducting hydraulic fracturing or horizontal drilling with fracturing operations in this State, as well as the potential environmental and health impacts from this activity;

(6) 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 hydraulic fracturing operations and horizontal drilling with fracturing operations in this State, consistent with the purpose set forth under subsection (b) of Section 1-138 of this Act;

(7) 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:

(A) 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;

(B) potential impacts to agriculture, tourism, and other industries, including the wine producing industry;

(C) potential impacts to wildlife and natural resources;

(D) potential chemicals used in hydraulic fracturing fluid or 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 or fracturing fluid that has emigrated;

(E) 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;

(F) 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, fracturing fluids and gas, flowback, and any and all wastewater 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;

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

(H) proposed permitting requirements for hydraulic fracturing or horizontal drilling with fracturing operations;

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

(J) the practices of 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;

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

(L) 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; and

(8) conduct a 3-month public comment period with at least 5 full-day public hearings, which shall be held in each region of the Department (Northwestern Illinois, Northeastern Illinois, East Central Illinois, West Central Illinois, and Southern Illinois) at geographically convenient locations, 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 general and local media and newspapers no less than 4 weeks before each hearing. These hearings may be to additional days if all persons wanting to speak could not be heard, and all hearings shall be completed at least 3 months before the time for submission of the final written findings and recommendations.

At the full day 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. 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.

Transcripts of all hearings shall be made available to the task force and the public through the Department's website.

(f-5) The task force shall provide updates of its written findings and recommendations to the public, the General Assembly and the Governor every year for 2 years from the effective date of this amendatory Act of the 98th General. The public record of documents, comments, and transcripts shall also be made available in electronic form on the Department's 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.

(g) The task force shall submit its final report and recommendations specified in subsection (f) of this Section to the General Assembly on or before September 15, 2017 2016.

(h) The task force, upon issuance of its final report and recommendations, is dissolved and this Section is repealed.

(Source: P.A. 98-22, eff. 6-17-13.)

(225 ILCS 732/1-138 new)

Sec. 1-138. Hydraulic fracturing and horizontal drilling with fracturing operations; banned.

(a) No person shall conduct horizontal drilling with fracturing operations or high volume horizontal hydraulic fracturing operations in this State. As used in this Act, "high volume horizontal hydraulic fracturing operations" means all stages of controlled directional drilling of a wells with lateral penetration of at least 100 feet through a geologic formation targeted for oil, natural gas liquids, or natural gas extraction which use the process of pumping fluids, gas, or other substances with or without a proppant down a well under pressure expressly designed to initiate and propagate fractures or fracture networks in the targeted geologic formations to facilitate oil, natural gas liquids, or natural gas extraction.

(b) It is the express purpose of this Section that the Department shall stop accepting permit applications for any and all horizontal drilling with fracturing operations or high volume horizontal hydraulic fracturing operations in this State beginning on the effective date of this amendatory Act of the 98th General Assembly. It is the express purpose of this Section that a ban on any and all horizontal drilling with fracturing operations high volume horizontal hydraulic fracturing operations is imposed in this State beginning on the effective date of this amendatory Act of the 98th General Assembly.

(c) 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. The General Assembly shall determine if, when, and how horizontal drilling with fracturing operations and high volume horizontal hydraulic fracturing operations can be conducted in a way that ensures that:

(1) a healthy environment will be protected and maintained for each person residing in this State, all persons residing in this State, and future generations of persons residing in Illinois;

(2) a healthy environment can be protected and maintained for the benefit of the present generation and future generations during and after horizontal drilling with fracturing operations or high volume horizontal hydraulic fracturing operations;

(3) the surface water, ground water, deep aquifers, air, surface land, substrata, forests, wildlife, farmland, earthquake zones, and climate of this State will be protected from any present or future harms or damages from horizontal drilling with fracturing operations or high volume horizontal hydraulic fracturing operations;

(4) any rules adopted by the Department or any law for horizontal drilling with fracturing operations or high volume horizontal hydraulic fracturing operations would have a high probability of being fully implemented and enforced by State agencies including the Department;

(5) that the State agencies that might be involved in enforcing any rules adopted by the Department or laws for horizontal drilling with fracturing operations or high volume horizontal hydraulic fracturing operations have the ability, funding, trained and knowledgeable employees, and the internal agency or departmental checks and balances that would allow for the full enforcement of any rules or laws to protect the environment, climate, public health, homes, property, livestock, domesticated animals, businesses, livelihoods, and recreational areas and activities of residents of this State from the harms and damages otherwise likely to be caused by horizontal drilling with fracturing operations or high volume horizontal hydraulic fracturing operations; and

(6) that any subsequent legislation regarding horizontal drilling with fracturing operations or high volume horizontal hydraulic fracturing operations in this State shall be informed by the findings and recommendations of the Hydraulic Fracturing Task Force under section 1-99 of this Act.