Vote Smart's Synopsis:

Vote to override a veto of a bill that authorizes hydraulic fracturing.

Highlights:

• Authorizes horizontal drilling and hydraulic fracturing, effective August 1, 2012 (Sec. 3).

• Defines “hydraulic fracturing treatment” as any stage of the treatment of a well by the application of hydraulic fracturing fluid under pressure that is expressly designed to initiate or propagate fractures in a target geological formation to enhance production of oil and gas (Sec. 2).

• Requires a permit from the Department of Environment and Natural Resources prior to using hydraulic fracturing, effective August 1, 2012 (Sec. 3).

• Establishes a maximum fine of $25,000 per day for every day an individual continues to knowingly violate the provisions of this bill, including the use of hydraulic fracturing without a permit from the Department of Environment and Natural Resources, effective August 1, 2012 (Sec. 2).

• Establishes the North Carolina Mining and Energy Commission to establish rules and regulation for the development of oil, gas, and mining resources, effective August 1, 2012 (Sec. 1).

• Requires all the rules adopted by the Mining and Energy Commission to be enforced by the Department of Environment and Natural Resources (Sec. 1).

• Requires the Mining and Energy Commission to regulate the process of horizontal drilling and hydraulic fracturing by requiring, at a minimum, the following standards (Sec. 2):
• Information and data about drilling sites, including, but not limited to, the following:
• How to prevent groundwater contamination;
• Hydrogeological investigations; and
• Baseline data on groundwater, surface water, and air quality in locations where oil and gas exploration is proposed;
• Well construction standards;
• Siting standards for wells and other gas production infrastructure;
• Limits on the amount of water used for drilling or fracturing purposes;
• Management standards for waste produced as a result of oil or gas exploration;
• Regulation of toxic air emissions from drilling sites;
• Prohibition of the use of certain chemicals in hydraulic fracturing fuels, including diesel fuel;
• Disclosures of chemicals used in oil or gas exploration; and
• Installation of safety devices and development of protocols for chemical spills and well blowouts.

• Authorizes the Mining and Energy Commission to limit the production of oil in the state when the amount of oil exceeds the amount required to meet market demand, effective August 1, 2012 (Sec. 2).

• Requires oil and gas developers to pay compensation for damages and provide a replacement water supply for the contamination of a private drinking water well or water supply well, unless the developer can prove any of the following (Sec. 4):
• The contamination existed prior to drilling;
• The owner of the water supply refused access to the developer to perform a pre-drilling test on their private well;
• The well is not within 5,000 feet of a well head that is part of the developers drilling site; or
• The contamination occurred as a result of another cause.

• Establishes the Joint Legislative Commission on Energy Policy, consisting of 5 members of the House and 5 members of the Senate, to exercise legislative oversight on the state’s energy policy, effective August 1, 2012 (Sec. 6).

• Requires any lease of oil or gas rights to include a right of rescission in which either party to the lease may cancel the lease in writing within 3 business days of the signing of the lease (Sec. 4).

Full Bill Text

Vote Smart's Synopsis:

Vote to override a veto of a bill that authorizes hydraulic fracturing.

Highlights:

• Authorizes horizontal drilling and hydraulic fracturing, effective August 1, 2012 (Sec. 3).

• Defines “hydraulic fracturing treatment” as any stage of the treatment of a well by the application of hydraulic fracturing fluid under pressure that is expressly designed to initiate or propagate fractures in a target geological formation to enhance production of oil and gas (Sec. 2).

• Requires a permit from the Department of Environment and Natural Resources prior to using hydraulic fracturing, effective August 1, 2012 (Sec. 3).

• Establishes a maximum fine of $25,000 per day for every day an individual continues to knowingly violate the provisions of this bill, including the use of hydraulic fracturing without a permit from the Department of Environment and Natural Resources, effective August 1, 2012 (Sec. 2).

• Establishes the North Carolina Mining and Energy Commission to establish rules and regulation for the development of oil, gas, and mining resources, effective August 1, 2012 (Sec. 1).

• Requires all the rules adopted by the Mining and Energy Commission to be enforced by the Department of Environment and Natural Resources (Sec. 1).

• Requires the Mining and Energy Commission to regulate the process of horizontal drilling and hydraulic fracturing by requiring, at a minimum, the following standards (Sec. 2):
• Information and data about drilling sites, including, but not limited to, the following:
• How to prevent groundwater contamination;
• Hydrogeological investigations; and
• Baseline data on groundwater, surface water, and air quality in locations where oil and gas exploration is proposed;
• Well construction standards;
• Siting standards for wells and other gas production infrastructure;
• Limits on the amount of water used for drilling or fracturing purposes;
• Management standards for waste produced as a result of oil or gas exploration;
• Regulation of toxic air emissions from drilling sites;
• Prohibition of the use of certain chemicals in hydraulic fracturing fuels, including diesel fuel;
• Disclosures of chemicals used in oil or gas exploration; and
• Installation of safety devices and development of protocols for chemical spills and well blowouts.

• Authorizes the Mining and Energy Commission to limit the production of oil in the state when the amount of oil exceeds the amount required to meet market demand, effective August 1, 2012 (Sec. 2).

• Requires oil and gas developers to pay compensation for damages and provide a replacement water supply for the contamination of a private drinking water well or water supply well, unless the developer can prove any of the following (Sec. 4):
• The contamination existed prior to drilling;
• The owner of the water supply refused access to the developer to perform a pre-drilling test on their private well;
• The well is not within 5,000 feet of a well head that is part of the developers drilling site; or
• The contamination occurred as a result of another cause.

• Establishes the Joint Legislative Commission on Energy Policy, consisting of 5 members of the House and 5 members of the Senate, to exercise legislative oversight on the state’s energy policy, effective August 1, 2012 (Sec. 6).

• Requires any lease of oil or gas rights to include a right of rescission in which either party to the lease may cancel the lease in writing within 3 business days of the signing of the lease (Sec. 4).

Full Bill Text

Vetoed by Governor Bev Perdue

Vote Smart's Synopsis:

Vote to pass a bill that authorizes hydraulic fracturing.

Highlights:

• Authorizes horizontal drilling and hydraulic fracturing, effective August 1, 2012 (Sec. 3).

• Defines “hydraulic fracturing treatment” as any stage of the treatment of a well by the application of hydraulic fracturing fluid under pressure that is expressly designed to initiate or propagate fractures in a target geological formation to enhance production of oil and gas (Sec. 2).

• Requires a permit from the Department of Environment and Natural Resources prior to using hydraulic fracturing, effective August 1, 2012 (Sec. 3).

• Establishes a maximum fine of $25,000 per day for every day an individual continues to knowingly violate the provisions of this bill, including the use of hydraulic fracturing without a permit from the Department of Environment and Natural Resources, effective August 1, 2012 (Sec. 2).

• Establishes the North Carolina Mining and Energy Commission to establish rules and regulation for the development of oil, gas, and mining resources, effective August 1, 2012 (Sec. 1).

• Requires all the rules adopted by the Mining and Energy Commission to be enforced by the Department of Environment and Natural Resources (Sec. 1).

• Requires the Mining and Energy Commission to regulate the process of horizontal drilling and hydraulic fracturing by requiring, at a minimum, the following standards (Sec. 2):
• Information and data about drilling sites, including, but not limited to, the following:
• How to prevent groundwater contamination;
• Hydrogeological investigations; and
• Baseline data on groundwater, surface water, and air quality in locations where oil and gas exploration is proposed;
• Well construction standards;
• Siting standards for wells and other gas production infrastructure;
• Limits on the amount of water used for drilling or fracturing purposes;
• Management standards for waste produced as a result of oil or gas exploration;
• Regulation of toxic air emissions from drilling sites;
• Prohibition of the use of certain chemicals in hydraulic fracturing fuels, including diesel fuel;
• Disclosures of chemicals used in oil or gas exploration; and
• Installation of safety devices and development of protocols for chemical spills and well blowouts.

• Authorizes the Mining and Energy Commission to limit the production of oil in the state when the amount of oil exceeds the amount required to meet market demand, effective August 1, 2012 (Sec. 2).

• Requires oil and gas developers to pay compensation for damages and provide a replacement water supply for the contamination of a private drinking water well or water supply well, unless the developer can prove any of the following (Sec. 4):
• The contamination existed prior to drilling;
• The owner of the water supply refused access to the developer to perform a pre-drilling test on their private well;
• The well is not within 5,000 feet of a well head that is part of the developers drilling site; or
• The contamination occurred as a result of another cause.

• Establishes the Joint Legislative Commission on Energy Policy, consisting of 5 members of the House and 5 members of the Senate, to exercise legislative oversight on the state’s energy policy, effective August 1, 2012 (Sec. 6).

• Requires any lease of oil or gas rights to include a right of rescission in which either party to the lease may cancel the lease in writing within 3 business days of the signing of the lease (Sec. 4).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that authorizes hydraulic fracturing.

Highlights:

• Requires the Mining and Energy Commission to regulate the process of horizontal drilling and hydraulic fracturing by requiring, at a minimum, the following standards (Sec. 2):
• Information and data about drilling sites, which may include, how to prevent groundwater contamination;
• Collection of baseline data on groundwater, surface water and air quality in locations where exploration is proposed;
• Well construction standards;
• Siting standards for wells and other gas production infrastructure;
• Limits the amount of water used for drilling or fracturing purposes;
• Management standards for waste produced as a result of oil or gas exploration;
• Regulation of toxic air emissions from drilling sites;
• Prohibition of the use of certain chemicals in hydraulic fracturing fuels, including diesel fuel;
• Disclosures of chemicals used in oil or gas exploration; and
• Installation of safety devices and development of protocols for chemical spills and well blowouts.

• Establishes the North Carolina Mining and Energy Commission to regulate for the development of oil, gas and mining resources (Sec. 1).

• Specifies that any person who does not secure a permit prior to drilling a well or using hydraulic fracturing treatments is subject a a fine of not more than $25,000 a day (Sec. 2).

• Requires oil and gas developers to pay compensation for damages and provide a replacement water supply in the case of a contamination of a private drinking water well or water supply that is within 5,000 feet of a wellhead at a drilling site, unless the developer can prove one of the following (Sec. 4):
• The contamination existed prior to drilling;
• The owner of the water supply refused access to the developer to a perform a
• pre-drilling test on their private well;
• The well is not within 5,000 feet of a well head that is part of the developer's drilling; or
• The contamination occurred as a result of another cause.

• Establishes the Joint Legislative Commission on Energy Policy, consisting of 5 members of the House and 5 members of the Senate, to exercise legislative oversight on the state's energy policy (Sec. 6).

Full Bill Text