Signed by Governor Patrick McCrory

Vote Smart's Synopsis:

Vote to concur with House amendments and pass a bill that repeals the moratorium on hydraulic fracturing.

Highlights:

• Authorizes the Department of Environment and Natural Resources and the Mining and Energy Commission to issue permits for oil and gas exploration and development activities using horizontal drilling and hydraulic fracturing treatments on or after the 61st calendar day following the date that all rules adopted have become effective (Sec. 3).

• Classifies the act of willfully disclosing confidential information to a person not authorized to receive it as a class 1 misdemeanor and subject to civil action (Sec. 8). 

• Prohibits local ordinances and all provisions of special, local, or private acts or resolutions from the following actions (Sec. 13):
• Prohibiting the siting of wells for oil and gas exploration, development and production;
• Prohibiting the use of horizontal drilling or hydraulic fracturing for the purpose of oil or gas exploration or development; and
• Placing any restriction or condition not placed by this article upon oil and gas exploration, development, production activities, and use of horizontal drilling or hydraulic fracturing.

• Requires any lease of oil or gas rights separate from the freehold estate of surface property to include a clause requiring the oil or gas developer to pay for the following water supply tests (Sec. 13):
• The testing of water supplies within a 1.5 mile radius from a proposed wellhead at least 30 days prior to initial drilling activities;
• The minimum of 5 follow-up tests; and
• The testing within 30 days after completion of production activities. 

• Establishes the North Carolina Oil and Gas Commission and reconstitutes the North Carolina Mining and Energy Commission (Sec. 4).

• Requires 7 members of the North Carolina Oil and Gas Commission to be appointed by the general assembly and 2 members to be appointed by the governor (Sec. 4). 

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that repeals the moratorium on hydraulic fracturing.

Highlights:

• Authorizes the Department of Environment and Natural Resources and the Mining and Energy Commission to issue permits for oil and gas exploration and development activities using horizontal drilling and hydraulic fracturing treatments on or after the 61st calendar day following the date that all rules adopted have become effective (Sec. 3).

• Classifies the act of willfully disclosing confidential information to a person not authorized to receive it as a class 1 misdemeanor and subject to civil action (Sec. 8). 

• Prohibits local ordinances and all provisions of special, local, or private acts or resolutions from the following actions (Sec. 13):
• Prohibiting the siting of wells for oil and gas exploration, development and production;
• Prohibiting the use of horizontal drilling or hydraulic fracturing for the purpose of oil or gas exploration or development; and
• Placing any restriction or condition not placed by this article upon oil and gas exploration, development, production activities, and use of horizontal drilling or hydraulic fracturing.

• Requires any lease of oil or gas rights separate from the freehold estate of surface property to include a clause requiring the oil or gas developer to pay for the following water supply tests (Sec. 13):
• The testing of water supplies within a 1.5 mile radius from a proposed wellhead at least 30 days prior to initial drilling activities
• The minimum of 5 follow-up tests; and
• The testing within 30 days after completion of production activities. 

• Establishes the North Carolina Oil and Gas Commission and reconstitutes the North Carolina Mining and Energy Commission (Sec. 4).

• Requires 7 members of the North Carolina Oil and Gas Commission to be appointed by the general assembly and 2 members to be appointed by the governor (Sec. 4). 

Full Bill Text