Senate Bill 2231 and House Bill 2535 propose significant amendments to the Tennessee Code Annotated concerning oil and gas production. The bills redefine key terms such as "Operator," "Person," and "Producer," while introducing a new definition for "Well." They also modify the permitting process for drilling operations, stipulating that no surface disturbances can occur until a permit application is submitted and approved. Additionally, the legislation alters distance requirements for surface disturbances near streams and implements stricter compliance measures for operators, including potential permit revocation and civil penalties for violations. Operators are now required to notify property owners of their intent to drill, and a mechanism for resolving disputes regarding surface disturbances is established.

Further enhancements to the regulatory framework include provisions for bond forfeiture, reclamation, and environmental protections. The bills allow the supervisor to suspend or extend compliance abatement periods under certain circumstances and establish a clear process for appealing notices of forfeiture, which must be conducted as contested cases before an administrative judge. Key changes also include the creation of a separate account for penalties and bond forfeitures, the requirement for performance-based reclamation bonds, and updated criteria for revegetation success. The legislation aims to improve regulatory clarity and environmental protection in oil and gas operations in Tennessee while ensuring that appeals are resolved in a timely manner.

Statutes affected:
Introduced: 60-1-101(7), 60-1-101, 60-1-101(9), 60-1-101(10), 60-1-101(11), 60-1-103(a)(1), 60-1-103, 60-1-103(a)(3), 60-1-103(a)(5), 60-1-103(d), 60-1-104(a), 60-1-104, 60-1-104(b), 60-1-105, 60-1-202(a)(3), 60-1-202, 60-1-202(a)(4), 60-1-203, 60-1-204, 60-1-207, 60-1-208, 60-1-209, 60-1-401, 60-1-404(a), 60-1-404, 60-1-701, 60-1-702, 60-1-703(6), 60-1-703, 60-1-703(7), 60-1-704(a), 60-1-704, 60-1-705, 68-203-103(b)(6), 68-203-103