Bill Summary – FastDemocracy

H.B. 676
                          GENERAL ASSEMBLY OF NORTH CAROLINA
                                                                                              Apr 18, 2023
                                      SESSION 2023                                      HOUSE PRINCIPAL CLERK
     H                                                                                                 D
                                   HOUSE BILL DRH40348-MH-110
     Short Title:   Hydraulic Fracturing/Statewide Ban.                                          (Public)
     Sponsors:      Representative Autry.
     Referred to:
                                A BILL TO BE ENTITLED
 AN ACT TO BAN THE DANGEROUS, POLLUTING, AND UNNECESSARY PRACTICE
    OF HYDRAULIC FRACTURING THROUGHOUT THE STATE.
 The General Assembly of North Carolina enacts:
 5
 BAN ON HYDRAULIC FRACTURING
              SECTION 1.(a) No agency of the State, including the Department of Environmental
 Quality, the Environmental Management Commission, the Commission for Public Health, or the
 Mining and Energy Commission, shall issue a permit for oil or gas exploration or development
 activities using horizontal drilling and hydraulic fracturing treatments.
              SECTION 1.(b) G.S. 113-391(a)(14) reads as rewritten:
              "(14) Any other matter the Commission deems necessary for implementation of a
                     modern regulatory program for the management of oil and gas exploration and
                     development in the State and State. This subdivision shall not be interpreted
                     to allow the use of horizontal drilling and hydraulic fracturing for that
                     purpose.oil and gas exploration or development."
              SECTION 1.(c) G.S. 113-391(a3) reads as rewritten:
      "(a3) The Environmental Management Commission shall adopt rules, after consideration
 of recommendations from the Oil and Gas Commission, for all of the following purposes:
              …
              (2)    Regulation of toxic air emissions from drilling operations, if it determines that
                     the State's current air toxics program and any federal regulations governing
                     toxic air emissions from drilling operations to be adopted by the State by
                     reference are inadequate to protect public health, safety, welfare, and the
                     environment. In formulating appropriate standards, the Department shall
                     assess emissions from oil and gas exploration and development activities that
                     use horizontal drilling and hydraulic fracturing technologies, activities,
                     including emissions from associated truck traffic, in order to (i) determine the
                     adequacy of the State's current air toxics program to protect landowners who
                     lease their property to drilling operations and (ii) determine the impact on
                     ozone levels in the area in order to determine measures needed to maintain
                     compliance with federal ozone standards."
              SECTION 1.(d) G.S. 113-391(b1) reads as rewritten:
      "(b1) In the exercise of their respective authority over oil and gas exploration and
 development activities, the Commission and the Department, as applicable, shall have access to
 all data, records, and information related to such activities, including, but not limited to, seismic
                                   *DRH40348-MH-110*
     General Assembly Of North Carolina                                                      Session 2023
 surveys, stratigraphic testing, geologic cores, proposed well bore trajectories, hydraulic
 fracturing fluid chemicals and constituents, trajectories, drilling mud chemistry, and geophysical
 borehole logs. With the exception of information designated as a trade secret, as defined in
 G.S. 66-152(3), and that is designated as confidential or as a trade secret under G.S. 132-1.2, the
 Department shall make any information it receives available to the public. The State Geologist,
 or the State Geologist's designee, shall serve as the custodian of all data, information, and records
 received by the Department pursuant to this subsection, including information designated as a
 trade secret, as defined in G.S. 66-152(3), and that is designated as confidential or as a trade
 secret under G.S. 132-1.2, and shall ensure that all of the information, including information
 designated as a trade secret, as defined in G.S. 66-152(3), and that is designated as confidential
 or as a trade secret under G.S. 132-1.2, is maintained securely as provided in G.S. 132-7."
             SECTION 1.(e) G.S. 113-391(d) reads as rewritten:
     "(d) The Department of Labor shall develop, adopt, and enforce rules establishing health
 and safety standards for workers engaged in oil and gas operations in the State, including
 operations in which hydraulic fracturing treatments are used for that purpose.State."
             SECTION 1.(f) G.S. 113-391.1(b) reads as rewritten:
     "(b) Determination and Treatment of Confidential Information. – Information obtained by
 the Commission and the Department pursuant to this Article, and rules adopted thereunder, shall
 be available to the public except that, upon a showing satisfactory to the Commission by any
 person that information to which the Commission and Department has access, if made public,
 would divulge methods or processes entitled to protection as confidential information pursuant
 to G.S. 132-1.2, the Commission shall consider the information confidential. In accordance with
 subsection (b1) of G.S. 113-391, the State Geologist shall serve as the custodian of the
 confidential information and shall ensure that it is maintained securely as provided in G.S. 132-7.
 The State Geologist, or the Geologist's designee, shall:
             (1)     Review confidential information that concerns hydraulic fracturing fluid, as
                     that term is defined in G.S. 113-389, to ensure compliance with all State and
                     federal laws, rules, and regulations concerning prohibited chemicals or
                     constituents, or exceedances of standards for chemicals or constituents. The
                     State Geologist, or the Geologist's designee, shall issue a written certification
                     within five days of completion of the review that the hydraulic fracturing
                     fluids, including chemicals and constituents contained therein, comply with
                     all State and federal laws, rules, and regulations; (ii) transmit the certification
                     to the Mining and Energy Commission and the Director of the Division of
                     Energy, Mining, and Land Resources; and (iii) transmit a copy of the
                     certification electronically to the permittee. Horizontal drilling and hydraulic
                     fracturing treatments shall not commence until this written certification has
                     been issued and transmitted as required by this subsection.
             (2)     Review, in consultation with the State Health Director, confidential
                     information that concerns hydraulic fracturing fluid, as that term is defined in
                     G.S. 113-389, to advise local health departments of additional parameters that
                     should be included in testing for private drinking water wells in their
                     jurisdictions in compliance with the requirements of G.S. 87-97 and the
                     Private Well Water Education Act enacted by S.L. 2013-122."
             SECTION 1.(g) G.S. 113-393(d) reads as rewritten:
     "(d) Variation from Vertical. – Whenever the Department fixes the location of any well or
 wells on the surface, the point at which the maximum penetration of such wells into the producing
 formation is reached shall not unreasonably vary from the vertical drawn from the center of the
 hole at the surface, provided, that the Commission shall prescribe rules and the Department shall
 prescribe orders governing the reasonableness of such variation. This subsection shall not apply
     Page 2                                                                          DRH40348-MH-110
     General Assembly Of North Carolina                                                Session 2023
 to wells drilled for the purpose of exploration or development of natural gas through use of
 horizontal drilling in conjunction with hydraulic fracturing treatments."
            SECTION 1.(h) G.S. 143-214.2(b) reads as rewritten:
     "(b) The discharge of any wastes to the subsurface or groundwaters of the State by means
 of wells is prohibited. This section shall not be construed to prohibit (i) the operation of
 closed-loop groundwater remediation systems in accordance with G.S. 143-215.1A or (ii)
 injection of hydraulic fracturing fluid for the exploration or development of natural gas
 resources.G.S. 143-215.1A."
            SECTION 1.(i) G.S. 113-391(a)(5) and G.S. 113-395(b) are repealed.
10
 RESTORE COMMUNITY CHOICE ON OIL AND GAS EXPLORATION
        SECTION 2. G.S. 113-415.1 is repealed.
13
 EFFECTIVE DATE
             SECTION 3. This act is effective when it becomes law and applies to any application
 for a permit for oil and gas exploration or development activities received by any agency of the
 State on or after that date.
     DRH40348-MH-110                                                                          Page 3
Statutes affected: 
Filed: 113-391, 113-391.1, 113-393, 143-214.2, 113-415.1
Edition 1: 113-391, 113-391.1, 113-393, 143-214.2, 113-415.1