Vote Smart's Synopsis:

Vote to pass a bill that increases liabilities for hydraulic fracturing, effective October 1, 2015.

Highlights:

• Defines “hydraulic fracturing” as an “ultrahazardous and abnormally dangerous” drilling activity that expands or creates fractures in rocks through the injection of pressurized fluids for the exploration or production of natural gas (Sec. 1).

• Defines “permittee” as an individual who holds a permit for natural gas exploration or production (Sec. 1).

• Increases the following insurance coverage amounts that a permittee is required to maintain (Sec. 1):
• From $300,000 to $1 million, the comprehensive general liability per individual for injury and property damage caused by sudden accidental occurrences arising from the permittee’s activities;
• From $500,000 to $5 million, the comprehensive general liability per occurrence or accident for injury and property damage caused by sudden accidental occurrences arising from the permittee’s activities; and
• From $1 million to $10 million, the environmental pollution liability per loss for bodily injury and property damage to individuals and natural resource damage.

• Increases the length of time for which a permittee is required to maintain insurance coverage after each hydraulic fracturing operation from 5 years to 6 years (Sec. 1).

• Specifies that information relating to a chemical used in hydraulic fracturing is not protected as a trade secret and is admissible as evidence in a legal action against a permittee (Sec. 1).

• Specifies that a provision in a contract or agreement that waives the right to take legal action against a permittee or reduces liability for injury, death, or loss to an individual or property caused by the hydraulic fracturing activities of a permittee is void (Sec. 1).

Full Bill Text