SB3280eng 97TH GENERAL ASSEMBLY

  
  
  

 


 
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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 Illinois Oil and Gas Act is amended by
5adding Section 6.8 as follows:
 
6    (225 ILCS 725/6.8 new)
7    Sec. 6.8. Extraction of hydrocarbons from shale using
8hydraulic fracturing.
9    (a) The Department, by rule, shall:
10        (1) require an operator of a well on which a hydraulic
11    fracturing treatment is performed to:
12            (A) complete the form posted on the hydraulic
13        fracturing chemical registry Internet website of the
14        Ground Water Protection Council and the Interstate Oil
15        and Gas Compact Commission with regard to the well;
16            (B) include in the form completed under
17        subparagraph (A):
18                (i) the total volume of water used in the
19            hydraulic fracturing treatment; and
20                (ii) each chemical ingredient that is subject
21            to the requirements of 29 C.F.R. 1910.1200(g)(2),
22            as provided by a service company, chemical
23            supplier, or by the operator, if the operator

 

 

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1            provides its own chemical ingredients;
2            (C) post the completed form described by
3        subparagraph (A) on the website described by that
4        subparagraph or, if the website is discontinued or
5        permanently inoperable, post the completed form on
6        another publicly accessible Internet website specified
7        by the Department;
8            (D) submit the completed form described by
9        subparagraph (A) to the Department with the well
10        completion report for the well; and
11            (E) in addition to the completed form specified in
12        subparagraph (D), provide to the Department a list, to
13        be made available on the Internet website of the Ground
14        Water Protection Council and the Interstate Oil and Gas
15        Compact Commission or, if necessary, another publicly
16        accessible website, of all other chemical ingredients
17        not listed on the completed form that were
18        intentionally included and used for the purpose of
19        creating a hydraulic fracturing treatment for the
20        well; the Department, by rule, shall ensure that an
21        operator, service company, or supplier is not
22        responsible for disclosing ingredients that:
23                (i) were not purposely added to the hydraulic
24            fracturing treatment;
25                (ii) occur incidentally or are otherwise
26            unintentionally present in the treatment; or

 

 

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1                (iii) in the case of the operator, are not
2            disclosed to the operator by a service company or
3            supplier; the rule shall not require that the
4            ingredients be identified based on the additive in
5            which they are found or that the concentration of
6            such ingredients be provided;
7        (2) require a service company that performs a hydraulic
8    fracturing treatment on a well or a supplier of an additive
9    used in a hydraulic fracturing treatment on a well to
10    provide the operator of the well with the information
11    necessary for the operator to comply with paragraph (1);
12        (3) prescribe a process by which an entity required to
13    comply with paragraph (1) or (2) may withhold and declare
14    certain information as a trade secret, including, but not
15    limited to, the Chemical Abstract Service Number and amount
16    of the chemical ingredient used in a hydraulic fracturing
17    treatment;
18        (4) require a person who desires to challenge a claim
19    of entitlement to trade secret protection under paragraph
20    (3) to file the challenge not later than the second
21    anniversary of the date the relevant well completion report
22    is filed with the Department;
23        (5) limit the persons who may challenge a claim of
24    entitlement to trade secret protection under paragraph (3)
25    to:
26            (A) a surface fee title owner or his or her

 

 

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1        agricultural farm tenant who has been directly and
2        substantially affected or aggrieved by the hydraulic
3        fracturing treatment; or
4            (B) a department or agency of this State with
5        jurisdiction over a matter to which the claimed trade
6        secret is relevant;
7        (6) require, in the event of a trade secret challenge,
8    that the Department promptly notify the service company
9    performing the hydraulic fracturing treatment on the
10    relevant well, the supplier of the additive or chemical
11    ingredient for which the trade secret claim is made, or any
12    other owner of the trade secret being challenged and
13    provide the owner an opportunity to substantiate its trade
14    secret claim;
15        (7) prescribe a process, consistent with 29 C.F.R.
16    1910.1200, for an entity described by paragraph (1) or (2)
17    to provide information, including information that is a
18    trade secret as defined by Appendix D to 29 C.F.R.
19    1910.1200, to a health professional or emergency responder
20    who needs the information in accordance with subsection (i)
21    of that section of 29 C.F.R. 1910.1200;
22        (8) require, prior to such hydraulic fracturing, the
23    owner or operator to perform a suitable mechanical
24    integrity test of the casing or of the casing-tubing
25    annulus or other mechanical integrity test methods using
26    procedures that are established by administrative rule;

 

 

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1    and
2        (9) require, during the well stimulation operation,
3    that the owner or operator monitor and record the annulus
4    pressure using procedures that are established by
5    administrative rule.
6    (b) The protection and challenge of trade secrets under
7this Section is governed by subsection (g) of Section 7 of the
8Freedom of Information Act.
9    (c) The owner or operator shall provide information to the
10Department as to the amounts, handling, and, if necessary,
11disposal at an identified appropriate disposal facility, or
12reuse of the well stimulation fluid load recovered during flow
13back, swabbing, or recovery from production facility vessels.
14Storage of the well stimulation fluid load shall be protective
15of an underground source of drinking water by the use of either
16tanks or lined pits.
17    (d) This Section applies only to the extraction of
18hydrocarbons from shale.
19    (e) The Department shall adopt any other rules necessary to
20regulate hydraulic fracturing and corollary issues related to
21hydraulic fracturing.