senate Bill S2284

Provides for the regulation of the conducting of hydraulic fracturing; repealer

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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  • 15 / Jan / 2013
    • REFERRED TO ENVIRONMENTAL CONSERVATION
  • 08 / Jan / 2014
    • REFERRED TO ENVIRONMENTAL CONSERVATION

Summary

Provides for the regulation of the conducting of hydraulic fracturing; requires producers to disclose the composition of hydraulic fracturing fluids to the department of environmental conservation; provides that producers using hydraulic fracturing are strictly liable for any and all damages arising from such practice; requires all such producers to concede liability; provides for damages.

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Bill Details

See Assembly Version of this Bill:
A1363
Versions:
S2284
Legislative Cycle:
2013-2014
Current Committee:
Senate Environmental Conservation
Law Section:
Environmental Conservation Law
Laws Affected:
Add Art 23 Title 15 §§23-1501 - 23-1511 & Title 16 §§23-1601 - 23-1607, amd §8-0109, rpld & add §23-0303 sub 2, En Con L
Versions Introduced in 2011-2012 Legislative Cycle:
S5879A, A8805A

Sponsor Memo

BILL NUMBER:S2284

TITLE OF BILL: An act to amend the environmental conservation law, in
relation to regulation of the extraction of natural gas by means of
hydraulic fracturing; and to repeal subdivision 2 of section 23-0303
of such law relating to exclusivity of state authority over mining

PURPOSE: This legislation will create the "Property Owners Bill of
Rights"

SUMMARY OF PROVISIONS:

Section One - amends the environmental conservation law by adding two
new titles, 15 and 16 to Article 23.

Title 15 - Defines the disclosure of composition of hydraulic
fracturing fluids. This title includes definitions, the type of
information submitted that is considered public, service company
disclosures, operator disclosers and defines what use of service of
non-complying service company is prohibited.

Section One - defines an "additive" as any substance or combination of
substances found in hydraulic fracturing fluid, including a proppant,
that is added to a base fluid in the context of a hydraulic fracturing
treatment. Defines "Base Fluid" as the base fluid type, such as water
or nitrogen foam, used in a particular hydraulic fracturing treatment.
Defines "Chemical Abstracts Service" or CAS" as the chemical registry
that is the authoritative collection of disclosed chemical substance
information. Defines "chemical constituent" as a discrete chemical
with its own specific name or identity, such as CAS number, that is
contained in an additive" Defines "hydraulic fracturing fluid" as the
fluid used to perform a particular hydraulic fracturing treatment and
includes the applicable base fluid and all additives." Defines
"hydraulic fracturing treatment" as the stimulation of a well by the
forceful application of hydraulic fracturing fluid into the relevant
geological formation for the purpose of creating fractures in the
formation in order to facilitate production of hydrocarbons. Defines
"operator" as the person authorized to conduct operations on a well.
Defines "Propp ant" as sand or another natural or man-made inert
material that is used in a hydraulic fracturing treatment to prevent
artificially created or enhanced fractures from closing once the
treatment is completed. Defines "trade secret" as any confidential
formula, pattern, process, device, information or complication of
information that is used in a person's business and that gives the
person an opportunity to obtain an advantage over competitors that do
not know or use it. Defines "well" as hydrocarbon production well.
Defines "well completion report" as the report an operator is required
to file with the commission following the completion or recompletion
of a well, if applicable.

Section One - states all this information submitted under this section
in the disclosure of composition of hydraulic fracturing fluids is
considered public and will be posting on the internet.

Section One - states unless the information is otherwise authorized to
be withheld as a trade secret, the chemicals used in hydrofracking


will be public information and the department will post the
information on its publicly accessible internet website. To qualify
for trade secret protection, the person performing the hydraulic
fracturing treatment must submit to the department on an approved form
a formal claim of entitlement to that protection. Under this law trade
secret does not authorize a person to withhold information as stated
in federal or state law to a health professional who needs such
information for diagnostic or treatment purposes. If a health care
professional requests the information, a person performing hydraulic
fracturing will provide the percent by volume of the chemical
constituents of the hydraulic fracturing fluid and their associated
CAS numbers. If it is not a medical emergency, the health care
professional will provide the person performing the hydraulic
fracturing treatment a written statement of need for the information_
The health care professional will keep this information confidential,
except with other health care professionals for medical treatment

Section One - describes the Service Company Disclosures as a person
performing hydraulic fracturing treatments will disclose to the
department and maintain an updated master list of:

a) All base fluids to be used by the person during hydraulic
fracturing treatment;

b) All additives used by the person in any hydraulic fracturing
treatment, and their associated CAS numbers;

c) All chemical constituents to be used in hydraulic fracturing
treatment in this state.

Section One - states a person performing hydraulic fracturing
treatments will provide to the operator of each well the following:

a) The maximum pump pressure measured at the surface and the type and
volume of base fluid used in each stage of the hydraulic fracturing
treatment;

b) A list of all additives used in the hydraulic fracturing fluid,
such as acid, biocide, breaker, corrosion inhibitor, crosslinker,
demulsifier, friction reducer, gel, iron control, oxygen scavenger, pH
adjusting agent, proppant, scale inhibitor and surfactant;

c) For each additive type listed under paragraph b of this
subdivision, the specific name of the additive used and the actual
rate or concentration of each additive, expressed as pounds per
thousand gallons or gallons per thousand gallons and expressed as a
percentage by volume of the total hydraulic fracturing fluid used;

d) A list of the all the chemical constituents used in the hydraulic
fracturing fluid and their associated CAS numbers, unless the identity
of any chemical constituent is a trade secret;

e) For each chemical constituent, the actual rate or concentration of
each chemical expressed as pounds per thousand gallons or gallons per
thousand gallons and expressed as a percentage by volume of the total
hydraulic fracturing fluid used;


Section One - states following the completion of hydraulic fracturing
treatment on a property, the operator will include in a well
completion report the following information:

a) The maximum pump pressure measured at the surface and the type and
volume of base fluid used in each stage of the hydraulic fracturing
treatment;

b) A list of all additives used in the hydraulic fracturing treatment;

c) For each additive, the specific name of the additive used and the
actual rate or concentration of each additives;

d) The complete information of who performed the hydraulic fracturing
treatment;

e) If the operator caused any additives to be used during the
hydraulic fracturing treatment Section states for each additive listed
the chemical constituents of the additive and their associated CAS
numbers and the actual rate or concentration of each additive or
chemical, expressed in the manner provided.

Section One - states the operator may supply field service company
tickets, excluding pricing information, and reports regarding the
hydraulic fracturing treatment, as used in the normal course of
business, to satisfy some or all of the requirements.

Title 16 - describes the regulation of hydraulic fracturing, which
includes definitions, concession of liability and agreements with
property owners and damages.

Section One - defines "hydraulic fracturing" as the use of chemicals,
water and other substances injected or pumped into a natural gas well
to stimulate the extraction of natural gas well to stimulate the
extraction of natural gas. Defines "producer" as any individual or
entity engaged in the drilling for or extraction of natural gas
through the utilization of hydraulic fracturing.

Section One - states prior to the issuance of any permit, to engage in
hydraulic fracturing will deliver to the department a concession of
liability and waiver of all defenses arising out of any cause of
action related to property personal and wrongful death damages alleged
to have been caused by hydraulic fracturing conducted by such
producer. Concession and waiver shall be executed in such form and
manner as shall be determined by the attorney general, and will
provide for strict liability to the people of the state of New York
and every person within the state for any and all damages arising from
the conducting of hydraulic fracturing within this state. Every
producer which enter into an agreement with an owner of real property
which provides for the lease, license or grant of authority to conduct
hydraulic fracturing upon such real property, shall include a copy of
its concession of liability, similar to the concession of liability
executed in favor of the real property owner. The concession of
liability will be determined by the attorney general.

Section One - states no agreement for the lease, license or grant of
authority to conduct hydraulic fracturing upon real property in new


York will be executed until three independent appraisals of the real
property value have been done. Upon completion of the appraisals a
copy of the appraisal will be provided to the real property owner, the
producer and the department and will be attached to every agreement
providing for hydraulic fracturing.

Section One - states no agreement for the lease, license or grant of
authority to conduct hydraulic fracturing will be executed until the
department has conducted water and soil contamination testing on the
property for the presence of hydraulic fracturing fluids. A report of
the results of the test will be provided to both the real property
owner and the producer.

Section One - states each producer will include in every agreement it
enters into with a property owner for the lease, license or grant of
authority to conduct hydraulic fracturing the following:

a) A statement of the financial, health and environmental risks posed
by or potentially posed by conduct of hydraulic fracturing. This
statement will be jointly developed and periodically updated by the
commissioner, attorney general and the commissioner of health;

b) A statement of the risks of ground soil and ground water
contamination posed by or potentially posed by the conduct of
hydraulic fracturing;

c) A statement of the health risks posed by spills of and
contamination by hydraulic fracturing fluids;

d) A statement of the producer's strict liability for any and all
damages resulting from the conducting of hydraulic fracturing, and the
damages that will be awarded there for pursuant to this title.

Section One - states if there is contamination of the ground soil/or
ground water by any producer, the producer will be liable for the
following damages:

a) To the affected real property owner, an amount equal to one hundred
fifty percent of the real property value, as determined pursuant to
subdivision one of section 23 - 1605 of this title, and the full cost
of remediating the contaminated ground soil and ground water;

b) To any person affected by such contamination, an amount equal to
the cost of the diagnosis, treatment, monitoring and care of such
person, for life, related to any disease or condition arising out of
such contamination.

Under no circumstances will any amount of damages awarded or paid
pursuant to this section be deemed to be income to any person. All
such damages will be a reimbursement for losses actually incurred by
the recipient thereof.

Section Two - amends subdivision 9 of section 8-0109 of the
environmental conservation law to add an environmental impact
statement will be prepared for any action found to have a significant
impact on the special groundwater protection area, for any natural gas
or oil drilling involving the use of hydraulic fracturing fluid.


This statement will meet the requirements of the most detailed
environmental impact statement required by this section or by any rule
or regulation promulgated.

Section Three - repeals subdivision 2 of section 23 - 0303 of the
environmental conservation law and adds a new subdivision 2 to
supersede all other state and local laws relating to the oil, gas and
solution mining industries, provided that nothing in this section will
prevent any local government from:

a) Enacting or enforcing local laws or ordinances of general
applicability, except that such local laws or ordinances will not
regulate oil, gas and solution mining regulated by state statute,
regulation or permit;

b) Enacting or enforcing local zoning ordinances or laws which
determine permissible uses in zoning districts. Where oil, gas and
solution mining is designed a permissible use in a zoning district and
allowed by special use permit, condition placed on such special use
permits will be limited to the following:

i. Ingress and egress to public thoroughfares controlled by the local
government;

ii. Routing of drilling and drilling-related transport vehicles on
roads controlled by the local government;

iii. Requirements and conditions as specified in permit issued by the
department concerning setback from property boundaries and public
thoroughfare rights-of-way, natural or man-made barriers to restrict
access, if required, dust control and hours of operation;

iv. Conformance to road construction standards as may be otherwise
provided for by local law;

Section Three - states enacting or enforcing local laws or ordinances
regulating oil, gas and solution mining not required to be permitted
by the state.

Section Four - states this act shall take effect on the first of June
next succeeding the date on which it becomes a law; provided, that
effective immediately, any actions necessary to implement the
provisions of this act on its effective date are authorized and
directed to be completed on or before such date.

JUSTIFICATION: This legislation creates the "Property Owners Bill of
Rights," This bill provides definitions for hydraulic fracturing
fluid, hydraulic fracturing treatment, chemical abstracts service,
chemical constituent, base fluid, operator, proppant, trade secret,
well and well completion report.

This bill will protect property owners if they decide to lease their
property for the use of hydraulic fracturing. This legislation will
also protect surrounding property owner's safety and financial well
being from the negative effects of hydraulic fracturing.


This legislation adds Title 15 and 16 to the environmental
conservation law. Title 15 mandates the disclosure of composition of
hydraulic fracturing fluids by any company or individual that is
involved in the process of hydraulic fracturing in New York State.
Companies will be expected to fully disclose every chemical in the
fracturing fluid being used for the purpose of hydraulic fracturing.

In order to create full transparency for all property owners, these
chemicals will be made public knowledge and available on the Internet.

Title 15 also defines the type of information submitted that is
considered public and a trade secret. This legislation also defines a
trade secret, and the process by which a company can define a product
a trade secret. However, this legislation does not authorize a person
to withhold information as stated in federal or state law to a health
professional who needs such information for diagnostic or treatment
purposes. If a health care professional requests the information, a
person performing hydraulic fracturing will provide the percent by
volume of the chemical constituents of the hydraulic fracturing fluid
and their associated CAS numbers. If a property owner is signs a lease
and authorizes the use of their land, they have a right to know any
and all chemicals that are being put into their property, as well as
the amount and rate of which these chemicals are being used.

In order to protect property owner's safety, any person performing
hydraulic fracturing treatments will disclose to the department and
maintain an updated master list of; all base fluids to be used by the
person during hydraulic fracturing treatment, all additives used by
the person in any hydraulic fracturing treatment, and their associated
CAS numbers; and all chemical constituents to be used in hydraulic
fracturing treatment in this state. All of this information will be
made available in a "Well Completion Report" and will be made
available to the public.

The creation of Title 15 will ensure transparency for property owners
in regards to hydraulic fracturing in the State of New York. Title 15
will give property owners the knowledge they need to go into a lease
agreement fully informed of all the chemicals used in hydraulic
fracturing.

The "Property Owner's Bill of Rights" includes the addition of Title
16 to the environmental conservation law. Title 16 describes the
regulation of hydraulic fracturing, which includes definitions,
concession of liability and agreements with property owners as well as
damages.

Title 16 states prior to the issuance of any permit, to engage in
hydraulic fracturing will deliver to the department a concession of
liability and waiver of all defenses arising out of any cause of
action related to property personal and wrongful death damages alleged
to have been caused by hydraulic fracturing conducted by such
producer. Concession and waiver will be executed in such form and
manner as shall be determined by the attorney general, and will
provide for strict liability to the people of the state of New York
and every person within the state for any and all damages arising from
the conducting of hydraulic fracturing within this state.


Title 16 protects New York state property owner's by stating no
agreement for the lease, license or grant of authority to conduct
hydraulic fracturing upon real property in new York will be executed
until three independent appraisals of the real property value have
been done. Upon completion of the appraisals a copy of the appraisal
will be provided to the real property owner, the producer and the
department and will be attached to every agreement providing for
hydraulic fracturing.

Under this legislation no agreement for the lease, license or grant of
authority to conduct hydraulic fracturing will be executed until the
department has conducted water and soil contamination testing on the
property for the presence of hydraulic fracturing fluids. A report of
the results of the test will be provided to both the real property
owner and the producer.

Title 16 ensures property owners are fully informed on the risks of
hydraulic fracturing to their land, homes, financial well being and
health. Each producer will include in every agreement it enters into
with a property owner for the lease, license or grant of authority to
conduct hydraulic fracturing the following:

a) A statement of the financial, health and environmental risks posed
by or potentially posed by conduct of hydraulic fracturing. This
statement will be jointly developed and periodically updated by the
commissioner, attorney general and the commissioner of health;

c) A statement of the risks of ground soil and ground water
contamination posed by or potentially posed by the conduct of
hydraulic fracturing;

d) A statement of the health risks posed by spills of and
contamination by hydraulic fracturing fluids;

e) A statement of the producer's strict liability for any and all
damages resulting from the conducting of hydraulic fracturing, and the
damages that will be awarded there for pursuant to this title.

Title 16 protects property owners by addressing the issue of damages.
If there is contamination of the ground soil/or ground water by any
producer, the producer will be liable for the following damages; an
amount equal to one hundred fifty percent of the real property value,
and the full cost of remediating the contaminated ground soil and
ground water. Damages include that any person affected by such
contamination, an amount equal to the cost of the diagnosis,
treatment, monitoring and care of such person, for life, related to
any disease or condition arising out of such contamination:

Title 16 also states, to protect a property owner, an environmental
impact statement will be prepared for any action found to have a
significant impact on the special groundwater protection area, for any
natural gas or oil drilling involving the use of hydraulic fracturing
fluid. This statement will meet the requirements of the most detailed
environmental impact statement required by this section or by any rule
or regulation promulgated.


Title 16 provides that nothing in this section will prevent any local
government from enacting or enforcing local laws or ordinances of
general applicability, except that such local laws or ordinances will
not regulate oil, gas and solution mining regulated by state statute,
regulation or permit. Title 16 stipulates that enacting or enforcing
local zoning ordinances or laws, which determine permissible uses in
zoning districts. Where oil, gas and solution mining is designed a
permissible use in a zoning district and allowed by special use
permit, condition placed on such special use permits will be limited
to the following; ingress and egress to public thoroughfares
controlled by the local government, routing of drilling and
drilling-related transport vehicles on road controlled by the local
government, requirements and conditions as specified in permit issued
by the department concerning setback from property boundaries and
public thoroughfare rights-of-way, natural or man-made barriers to
restrict access, if required, dust control and hours of operation, and
the conformance to road construction standards as may be otherwise
provided for by local law.

LEGISLATIVE HISTORY: New legislation.

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect on the first of June next
succeeding the date on which it becomes a law; provided, that
effective immediately, any actions necessary to implement the
provisions of this act on its effective date are authorized and
directed to be completed on or before such date.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2284

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 15, 2013
                               ___________

Introduced  by  Sen.  BALL  --  read twice and ordered printed, and when
  printed to be committed to the Committee on Environmental Conservation

AN ACT to amend the environmental conservation law, in relation to regu-
  lation of the extraction of natural gas by means of hydraulic fractur-
  ing; and to repeal subdivision 2 of section 23-0303 of such law relat-
  ing to exclusivity of state authority over mining

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Article 23 of the environmental conservation law is amended
by adding two new titles 15 and 16 to read as follows:
                                TITLE 15
                      DISCLOSURE OF COMPOSITION OF
                       HYDRAULIC FRACTURING FLUIDS
SECTION 23-1501.  DEFINITIONS.
        23-1503.  INFORMATION  SUBMITTED  CONSIDERED  PUBLIC; POSTING ON
                    INTERNET WEBSITE.
        23-1505.  SERVICE COMPANY DISCLOSURES.
        23-1507.  OPERATOR DISCLOSURES.
        23-1509.  USE  OF  SERVICES  OF  NONCOMPLYING  SERVICE   COMPANY
                    PROHIBITED.
        23-1511. TRADE SECRET PROTECTION.
S 23-1501. DEFINITIONS.
  AS USED IN THIS TITLE, UNLESS THE CONTEXT OTHERWISE REQUIRES:
  1.  "ADDITIVE"  MEANS ANY SUBSTANCE OR COMBINATION OF SUBSTANCES FOUND
IN A HYDRAULIC FRACTURING FLUID, INCLUDING A PROPPANT, THAT IS ADDED  TO
A BASE FLUID IN THE CONTEXT OF A HYDRAULIC FRACTURING TREATMENT.
  2.  "BASE  FLUID" MEANS THE BASE FLUID TYPE, SUCH AS WATER OR NITROGEN
FOAM, USED IN A PARTICULAR HYDRAULIC FRACTURING TREATMENT.
  3. "CHEMICAL ABSTRACTS SERVICE" OR "CAS" MEANS THE  CHEMICAL  REGISTRY
THAT  IS  THE  AUTHORITATIVE  COLLECTION OF DISCLOSED CHEMICAL SUBSTANCE
INFORMATION.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03642-01-3

S. 2284                             2

  4. "CHEMICAL CONSTITUENT" MEANS  A  DISCRETE  CHEMICAL  WITH  ITS  OWN
SPECIFIC NAME OR IDENTITY, SUCH AS A CAS NUMBER, THAT IS CONTAINED IN AN
ADDITIVE.
  5.  "HYDRAULIC  FRACTURING  FLUID"  MEANS  THE FLUID USED TO PERFORM A
PARTICULAR HYDRAULIC FRACTURING TREATMENT AND  INCLUDES  THE  APPLICABLE
BASE FLUID AND ALL ADDITIVES.
  6. "HYDRAULIC FRACTURING TREATMENT" MEANS THE STIMULATION OF A WELL BY
THE FORCEFUL APPLICATION OF HYDRAULIC FRACTURING FLUID INTO THE RELEVANT
GEOLOGICAL FORMATION FOR THE PURPOSE OF CREATING FRACTURES IN THE FORMA-
TION IN ORDER TO FACILITATE PRODUCTION OF HYDROCARBONS.
  7.  "OPERATOR"  MEANS THE PERSON OR ENTITY AUTHORIZED TO CONDUCT OPER-
ATIONS ON A WELL.
  8. "PROPPANT" MEANS SAND OR ANOTHER NATURAL OR MAN-MADE INERT MATERIAL
THAT IS USED IN A HYDRAULIC FRACTURING TREATMENT TO PREVENT ARTIFICIALLY
CREATED OR  ENHANCED  FRACTURES  FROM  CLOSING  ONCE  THE  TREATMENT  IS
COMPLETED.
  9.  "TRADE  SECRET"  MEANS ANY CONFIDENTIAL FORMULA, PATTERN, PROCESS,
DEVICE, INFORMATION OR COMPILATION OF INFORMATION  THAT  IS  USED  IN  A
PERSON'S  OR  ENTITY'S  BUSINESS AND THAT GIVES SUCH PERSON OR ENTITY AN
OPPORTUNITY TO OBTAIN AN ADVANTAGE OVER COMPETITORS THAT DO NOT KNOW  OR
USE IT.
  10. "WELL" MEANS A HYDROCARBON PRODUCTION WELL.
  11.  "WELL COMPLETION REPORT" MEANS THE REPORT AN OPERATOR IS REQUIRED
TO FILE WITH THE COMMISSION FOLLOWING THE COMPLETION OR RECOMPLETION  OF
A WELL, IF APPLICABLE.
S 23-1503. INFORMATION  SUBMITTED CONSIDERED PUBLIC; POSTING ON INTERNET
             WEBSITE.
  NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW, UNLESS THE INFORMATION IS
OTHERWISE AUTHORIZED TO BE WITHHELD AS A TRADE SECRET PURSUANT  TO  THIS
TITLE,  INFORMATION  SUBMITTED  TO  THE  DEPARTMENT  PURSUANT TO SECTION
23-1505 OR 23-1507 OF THIS TITLE IS PUBLIC INFORMATION, AND THE  DEPART-
MENT  SHALL  POST  THE  INFORMATION  ON ITS PUBLICLY ACCESSIBLE INTERNET
WEBSITE.
S 23-1505. SERVICE COMPANY DISCLOSURES.
  1.   AN OPERATOR WHICH AUTHORIZES ANY  PERSON  OR  ENTITY  TO  CONDUCT
HYDRAULIC  FRACTURING  TREATMENTS  UPON  ANY OF SUCH OPERATOR'S WELLS IN
THIS STATE SHALL DISCLOSE TO THE  DEPARTMENT  AND  MAINTAIN  AN  UPDATED
MASTER LIST OF:
  A.  ALL  BASE  FLUIDS  TO  BE USED BY SUCH PERSON OR ENTITY DURING ANY
HYDRAULIC FRACTURING TREATMENT IN THIS STATE;
  B. ALL ADDITIVES TO BE USED  BY  SUCH  PERSON  OR  ENTITY  DURING  ANY
HYDRAULIC FRACTURING TREATMENT IN THIS STATE; AND
  C.  ALL  CHEMICAL  CONSTITUENTS TO BE USED BY SUCH PERSON OR ENTITY IN
ANY HYDRAULIC FRACTURING TREATMENT IN THIS STATE  AND  THEIR  ASSOCIATED
CAS NUMBERS.
  2. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH C OF SUBDIVISION ONE OF
THIS SECTION, IF THE SPECIFIC IDENTIFY OF ANY CHEMICAL CONSTITUENT TO BE
USED  IN ANY HYDRAULIC FRACTURING TREATMENT IN THIS STATE IS ENTITLED TO
BE WITHHELD AS A TRADE SECRET PURSUANT TO THE CRITERIA  PROVIDED  BY  42
U.S.C.  SECTION  11042(A)(2)  AND  SECTION  23-1511  OF  THIS TITLE, THE
DEPARTMENT SHALL PROTECT AND HOLD CONFIDENTIAL THE IDENTITY OF THE CHEM-
ICAL CONSTITUENT AND ITS ASSOCIATED CAS NUMBER.  TO  QUALIFY  FOR  TRADE
SECRET PROTECTION, THE PERSON PERFORMING THE HYDRAULIC FRACTURING TREAT-
MENT MUST SUBMIT TO THE DEPARTMENT ON AN APPROVED FORM A FORMAL CLAIM OF
ENTITLEMENT TO THAT PROTECTION IN THE MANNER REQUIRED BY SECTION 23-1511
OF THIS TITLE.

S. 2284                             3

  3.  A  PERSON  OR ENTITY PERFORMING HYDRAULIC FRACTURING TREATMENTS IN
THIS STATE SHALL PROVIDE TO THE OPERATOR OF  EACH  WELL  FOR  WHICH  THE
PERSON OR ENTITY PERFORMS A HYDRAULIC FRACTURING TREATMENT:
  A.  THE MAXIMUM PUMP PRESSURE MEASURED AT THE SURFACE AND THE TYPE AND
VOLUME OF BASE FLUID USED IN EACH  STAGE  OF  THE  HYDRAULIC  FRACTURING
TREATMENT;
  B.  A  LIST  OF  ALL ADDITIVES USED IN THE HYDRAULIC FRACTURING FLUID,
SPECIFIED BY GENERAL TYPE, SUCH AS  ACID,  BIOCIDE,  BREAKER,  CORROSION
INHIBITOR,   CROSSLINKER,   DEMULSIFIER,  FRICTION  REDUCER,  GEL,  IRON
CONTROL, OXYGEN SCAVENGER, PH ADJUSTING AGENT, PROPPANT, SCALE INHIBITOR
AND SURFACTANT;
  C. FOR EACH ADDITIVE TYPE LISTED UNDER PARAGRAPH B  OF  THIS  SUBDIVI-
SION,  THE  SPECIFIC  NAME  OF  THE ADDITIVE USED AND THE ACTUAL RATE OR
CONCENTRATION OF EACH ADDITIVE, EXPRESSED AS POUNDS PER THOUSAND GALLONS
OR GALLONS PER THOUSAND GALLONS AND EXPRESSED AS A PERCENTAGE BY  VOLUME
OF THE TOTAL HYDRAULIC FRACTURING FLUID USED;
  D. A LIST OF ALL THE CHEMICAL CONSTITUENTS USED IN THE HYDRAULIC FRAC-
TURING FLUID AND THEIR ASSOCIATED CAS NUMBERS, EXCEPT TO THE EXTENT THAT
THE  SPECIFIC  IDENTITY  OF  ANY  CHEMICAL CONSTITUENT IS ENTITLED TO BE
WITHHELD AS A TRADE SECRET  AS  PROVIDED  BY  SUBDIVISION  TWO  OF  THIS
SECTION; AND
  E.  FOR EACH CHEMICAL CONSTITUENT IDENTIFIED UNDER PARAGRAPH D OF THIS
SUBDIVISION,  THE  ACTUAL  RATE  OR  CONCENTRATION  OF  EACH   CHEMICAL,
EXPRESSED AS POUNDS PER THOUSAND GALLONS OR GALLONS PER THOUSAND GALLONS
AND  EXPRESSED AS A PERCENTAGE BY VOLUME OF THE TOTAL HYDRAULIC FRACTUR-
ING FLUID USED.
  4. THE PROVISIONS OF SUBDIVISIONS TWO AND THREE OF THIS SECTION  SHALL
NOT  BE  DEEMED  TO AUTHORIZE ANY OPERATOR, PERSON OR ENTITY TO WITHHOLD
INFORMATION THAT FEDERAL OR STATE LAW, INCLUDING THIS SECTION,  REQUIRES
TO BE PROVIDED TO ANY HEALTH CARE PROFESSIONAL WHO NEEDS THE INFORMATION
FOR  DIAGNOSTIC OR TREATMENT PURPOSES. THE OPERATOR AND PERSON OR ENTITY
PERFORMING A HYDRAULIC FRACTURING TREATMENT SHALL PROVIDE DIRECTLY TO  A
HEALTH  CARE  PROFESSIONAL,  IMMEDIATELY  IN  REQUEST,  ALL  INFORMATION
REQUIRED BY THE HEALTH  CARE  PROFESSIONAL,  INCLUDING  THE  PERCENT  BY
VOLUME  OF  THE  CHEMICAL CONSTITUENTS OF THE HYDRAULIC FRACTURING FLUID
AND THEIR ASSOCIATED CAS NUMBERS. IN A CASE THAT IS NOT A MEDICAL  EMER-
GENCY,  THE  HEALTH CARE PROFESSIONAL SHALL PROVIDE THE OPERATOR AND THE
PERSON OR ENTITY PERFORMING THE HYDRAULIC FRACTURING TREATMENT A WRITTEN
STATEMENT OF NEED FOR THE INFORMATION BEFORE  THE  HEALTH  CARE  PROFES-
SIONAL  IS  ENTITLED TO RECEIVE THE INFORMATION. IN A MEDICAL EMERGENCY,
THE HEALTH CARE PROFESSIONAL SHALL PROVIDE THE OPERATOR AND  THE  PERSON
OR ENTITY PERFORMING THE HYDRAULIC FRACTURING TREATMENT A WRITTEN STATE-
MENT OF NEED FOR THE INFORMATION AS SOON AS CIRCUMSTANCES PERMIT.
  5.  A HEALTH CARE PROFESSIONAL TO WHOM INFORMATION IS DISCLOSED PURSU-
ANT TO SUBDIVISION FOUR OF  THIS  SECTION  SHALL  HOLD  THE  INFORMATION
CONFIDENTIAL, EXCEPT THAT THE HEALTH CARE PROFESSIONAL MAY, FOR DIAGNOS-
TIC  OR  TREATMENT PURPOSES, DISCLOSE SUCH INFORMATION TO ANOTHER HEALTH
CARE PROFESSIONAL, A LABORATORY OR A THIRD-PARTY TESTING FIRM. A  HEALTH
CARE  PROFESSIONAL,  LABORATORY  OR  THIRD-PARTY  TESTING  FIRM TO WHICH
INFORMATION IS DISCLOSED BY ANOTHER HEALTH CARE PROFESSIONAL SHALL  HOLD
SUCH INFORMATION CONFIDENTIAL.
S 23-1507. OPERATOR DISCLOSURES.
  1.  FOLLOWING  THE COMPLETION OF A HYDRAULIC FRACTURING TREATMENT ON A
WELL, THE OPERATOR SHALL INCLUDE IN THE WELL  COMPLETION  REPORT,  ON  A
FORM APPROVED BY THE DEPARTMENT:

S. 2284                             4

  A.  THE MAXIMUM PUMP PRESSURE MEASURED AT THE SURFACE AND THE TYPE AND
VOLUME OF BASE FLUID USED IN EACH  STAGE  OF  THE  HYDRAULIC  FRACTURING
TREATMENT;
  B. A LIST OF ALL ADDITIVES USED IN THE HYDRAULIC FRACTURING TREATMENT,
SPECIFIED  BY  GENERAL  TYPE,  SUCH AS ACID, BIOCIDE, BREAKER, CORROSION
INHIBITOR,  CROSSLINKER,  DEMULSIFIER,  FRICTION  REDUCER,   GEL,   IRON
CONTROL, OXYGEN SCAVENGER, PH ADJUSTING AGENT, PROPPANT, SCALE INHIBITOR
AND SURFACTANT;
  C.  FOR  EACH  ADDITIVE TYPE LISTED UNDER PARAGRAPH B OF THIS SUBDIVI-
SION, THE SPECIFIC NAME OF THE ADDITIVE USED  AND  THE  ACTUAL  RATE  OR
CONCENTRATION OF EACH ADDITIVE, EXPRESSED AS POUNDS PER THOUSAND GALLONS
OR  GALLONS PER THOUSAND GALLONS AND EXPRESSED AS A PERCENTAGE BY VOLUME
OF THE TOTAL HYDRAULIC FRACTURING FLUID USED;
  D. THE INFORMATION PROVIDED PURSUANT TO SUBDIVISION THREE  OF  SECTION
23-1505  OF  THIS  TITLE  TO  THE  OPERATOR  BY THE PERSON OR ENTITY WHO
PERFORMED THE HYDRAULIC FRACTURING TREATMENT; AND
  E. IF THE OPERATOR CAUSED ANY ADDITIVES TO BE USED DURING THE  HYDRAU-
LIC  FRACTURING TREATMENT THAT ARE NOT REQUIRED TO BE DISCLOSED PURSUANT
TO SUBDIVISION THREE OF SECTION 23-1505 OF THIS TITLE TO THE OPERATOR BY
THE PERSON OR ENTITY WHO PERFORMED THE HYDRAULIC FRACTURING TREATMENT:
  (1) A LIST OF THE ADDITIVES USED; AND
  (2) FOR EACH ADDITIVE LISTED, THE CHEMICAL CONSTITUENTS OF  THE  ADDI-
TIVE  AND  THEIR  ASSOCIATED  CAS NUMBERS AND THE ACTUAL RATE OR CONCEN-
TRATION OF EACH ADDITIVE OR CHEMICAL, EXPRESSED IN THE  MANNER  PROVIDED
PURSUANT TO SUBDIVISION THREE OF SECTION 23-1505 OF THIS TITLE.
  2.  THE  OPERATOR  MAY SUPPLY FIELD SERVICE COMPANY TICKETS, EXCLUDING
PRICING INFORMATION, AND  REPORTS  REGARDING  THE  HYDRAULIC  FRACTURING
TREATMENT,  AS USED IN THE NORMAL COURSE OF BUSINESS, TO SATISFY SOME OR
ALL OF THE REQUIREMENTS OF SUBDIVISION ONE OF THIS SECTION.
  3. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH E OF SUBDIVISION ONE OF
THIS SECTION,  IF  THE  SPECIFIC  IDENTITY  OF  A  CHEMICAL  CONSTITUENT
CONTAINED  IN  AN  ADDITIVE IS ENTITLED TO BE WITHHELD AS A TRADE SECRET
PURSUANT TO THE CRITERIA PROVIDED BY 42 U.S.C  SECTION  11042(A)(2)  AND
SECTION  23-1511  OF  THIS TITLE, THE DEPARTMENT  SHALL PROTECT AND HOLD
CONFIDENTIAL THE IDENTITY OF THE CHEMICAL CONSTITUENT AND ITS ASSOCIATED
CAS NUMBER. TO QUALIFY FOR TRADE SECRET PROTECTION, THE  OPERATOR  SHALL
SUBMIT  TO THE DEPARTMENT ON AN APPROVED FORM A FORMAL CLAIM OF ENTITLE-
MENT TO THAT PROTECTION IN THE MANNER REQUIRED  BY  SECTION  23-1511  OF
THIS TITLE.
  4.  THE  PROVISIONS  OF SUBDIVISION THREE OF THIS SECTION SHALL NOT BE
DEEMED TO AUTHORIZE AN OPERATOR TO WITHHOLD INFORMATION THAT FEDERAL  OR
STATE LAW, INCLUDING THIS SECTION, REQUIRES TO BE PROVIDED TO ANY HEALTH
CARE  PROFESSIONAL WHO NEEDS THE INFORMATION FOR DIAGNOSTIC OR TREATMENT
PROPOSES. AN OPERATOR SHALL PROVIDE DIRECTLY TO A HEALTH   CARE  PROFES-
SIONAL,  IMMEDIATELY  ON REQUEST, ALL INFORMATION REQUIRED BY THE HEALTH
CARE PROFESSIONAL, INCLUDING THE  PERCENT  BY  VOLUME  OF  THE  CHEMICAL
CONSTITUENTS  OF THE HYDRAULIC FRACTURING FLUID AND THEIR ASSOCIATED CAS
NUMBERS. IN A CASE THAT IS NOT A  MEDICAL  EMERGENCY,  THE  HEALTH  CARE
PROFESSIONAL  SHALL PROVIDE THE OPERATOR A WRITTEN STATEMENT OF NEED FOR
THE INFORMATION BEFORE THE PERSON IS ENTITLED TO  RECEIVE  THE  INFORMA-
TION. IN A MEDICAL EMERGENCY, THE HEALTH CARE PROFESSIONAL SHALL PROVIDE
THE  OPERATOR A WRITTEN STATEMENT OF NEED FOR THE INFORMATION AS SOON AS
CIRCUMSTANCES PERMIT.
  5. A HEALTH CARE PROFESSIONAL TO WHOM INFORMATION IS DISCLOSED  PURSU-
ANT  TO  SUBDIVISION  FOUR  OF  THIS  SECTION SHALL HOLD THE INFORMATION
CONFIDENTIAL, EXCEPT THAT THE HEALTH CARE PROFESSIONAL MAY, FOR DIAGNOS-

S. 2284                             5

TIC OR TREATMENT PROPOSES, DISCLOSE SUCH INFORMATION TO  ANOTHER  HEALTH
CARE  PROFESSIONAL, A LABORATORY OR A THIRD-PARTY TESTING FIRM. A HEALTH
CARE PROFESSIONAL, LABORATORY OR THIRD-PARTY TESTING FIRM TO WHICH  SUCH
INFORMATION  IS DISCLOSED BY ANOTHER HEALTH CARE PROFESSIONAL SHALL HOLD
THE INFORMATION CONFIDENTIAL.
S 23-1509. USE OF SERVICES OF NONCOMPLYING SERVICE COMPANY PROHIBITED.
  AN OPERATOR SHALL NOT USE THE SERVICES OF ANOTHER PERSON OR ENTITY  IN
PERFORMING  A  HYDRAULIC  FRACTURING  TREATMENT IN THIS STATE UNLESS THE
OTHER PERSON OR ENTITY IS IN COMPLIANCE WITH THE REQUIREMENTS OF SECTION
23-1505 OF THIS TITLE.
S 23-1511. TRADE SECRET PROTECTION.
  1. A CLAIM OF ENTITLEMENT TO TRADE SECRET PROTECTION PURSUANT TO  THIS
TITLE  SHALL INCLUDE SUBSTANTIATING FACTS IN THE FORM OF THE INFORMATION
REQUIRED BY 40 C.F.R. SECTION 350.7(A). IF REQUESTED BY THE TRADE SECRET
CLAIMANT, THE DEPARTMENT SHALL TREAT ANY SUCH  SUBSTANTIATING  FACTS  AS
CONFIDENTIAL  AND  SHALL  NOT  DISCLOSE  THEM  TO ANY THIRD PARTY OR THE
PUBLIC FOR ANY PURPOSE. UNTIL A FINAL DETERMINATION THAT THE INFORMATION
IS NOT ENTITLED TO TRADE SECRET PROTECTION IS MADE UNDER  THIS  SECTION,
THE  DEPARTMENT  SHALL  TREAT THE INFORMATION IMPLICATED BY THE CLAIM OF
TRADE SECRET ENTITLEMENT AS A CONFIDENTIAL TRADE SECRET, AND THE  INFOR-
MATION  IS  NOT  SUBJECT  TO  DISCLOSURE  PURSUANT TO ARTICLE SIX OF THE
PUBLIC OFFICERS LAW.
  2. THE COMMISSION SHALL DETERMINE A  CLAIM  OF  ENTITLEMENT  TO  TRADE
SECRET  PROTECTION  MADE  PURSUANT TO THIS TITLE TO BE SUFFICIENT IF THE
INFORMATION SET FORTH IN THE CLAIM  SUPPORTS  ALL  THE  CONCLUSIONS  SET
FORTH  IN  40 C.F.R. SECTION 350.13(A) AND THE SUPPORTING INFORMATION IS
TRUE. IN MAKING A DETERMINATION  AS  TO  A  CLAIM,  THE  DEPARTMENT  MAY
REQUIRE  THE  TRADE  SECRET  CLAIMANT  TO SUBMIT ADDITIONAL SUPPLEMENTAL
INFORMATION IF THE INFORMATION IS NECESSARY FOR THE DEPARTMENT  TO  MAKE
ITS  DETERMINATION  UNDER THIS SECTION. IF REQUESTED BY THE TRADE SECRET
CLAIMANT,  THE  DEPARTMENT  SHALL  TREAT  ANY  SUPPLEMENTAL  INFORMATION
PROVIDED  AS  CONFIDENTIAL  AND  MAY NOT DISCLOSE THE INFORMATION TO ANY
THIRD PARTY OR THE PUBLIC FOR ANY PURPOSE.
  3. IF THE DEPARTMENT DETERMINES A CLAIM OF ENTITLEMENT TO TRADE SECRET
PROTECTION TO BE INSUFFICIENT, THE DEPARTMENT  SHALL  NOTIFY  THE  TRADE
SECRET  CLAIMANT  IN WRITING OF THE DETERMINATION BY CERTIFIED MAIL. NOT
LATER THAN THE FIFTEENTH DAY AFTER THE DATE THE  TRADE  SECRET  CLAIMANT
RECEIVES  NOTICE  OF THE DETERMINATION, THE CLAIMANT MAY REQUEST ANOTHER
REVIEW OF THE CLAIM. THE TRADE SECRET CLAIMANT MUST SHOW GOOD CAUSE  FOR
THE  ADDITIONAL REVIEW. WHAT CONSTITUTES GOOD CAUSE FOR PURPOSES OF THIS
SUBDIVISION IS SOLELY WITHIN THE REASONABLE DISCRETION OF THE DEPARTMENT
AND MAY INCLUDE THE AVAILABILITY OF NEW SUPPORTING INFORMATION OR A GOOD
FAITH ERROR OR OMISSION ON THE PART OF THE TRADE SECRET CLAIMANT IN  THE
ORIGINAL  CLAIM.  NOT  LATER  THAN  THE THIRTIETH DAY AFTER THE DATE THE
DEPARTMENT RECEIVES THE REQUEST, THE DEPARTMENT  SHALL  PROVIDE  WRITTEN
NOTICE  TO  THE  TRADE SECRET CLAIMANT OF THE DEPARTMENT'S ACCEPTANCE OR
REJECTION OF THE REQUEST. IF A TRADE SECRET CLAIMANT MAKES A REQUEST FOR
REVIEW UNDER THIS SUBDIVISION, THE DEPARTMENT SHALL TREAT  THE  INFORMA-
TION  IMPLICATED BY THE CLAIM OF TRADE SECRET ENTITLEMENT AS A CONFIDEN-
TIAL TRADE SECRET UNTIL THE DEPARTMENT MAKES A DETERMINATION WITH REGARD
TO THE REVIEW REQUEST. IF THE DEPARTMENT REJECTS THE REVIEW REQUEST, THE
DEPARTMENT SHALL CONTINUE TO TREAT THE  INFORMATION  AS  A  CONFIDENTIAL
TRADE  SECRET  UNTIL THE EARLIER OF THE THIRTIETH DAY AFTER THE DATE THE
TRADE SECRET CLAIMANT RECEIVES NOTICE THAT THE DEPARTMENT  HAS  REJECTED
THE  REVIEW  REQUEST  OR  THE DATE THE CLAIMANT WITHDRAWS THE DISCLOSURE
PURSUANT TO SUBDIVISION FIVE OF THIS SECTION.

S. 2284                             6

  4. NOT LATER THAN THE THIRTIETH DAY AFTER THE DATE  THE  TRADE  SECRET
CLAIMANT  RECEIVES  NOTICE  FROM  THE DEPARTMENT THAT THE DEPARTMENT HAS
REJECTED THE CLAIM OF ENTITLEMENT TO TRADE SECRET PROTECTION, THE CLAIM-
ANT MAY COMMENCE AN ACTION PURSUANT  TO  ARTICLE  SEVENTY-EIGHT  OF  THE
CIVIL  PRACTICE LAW AND RULES. IF A TRADE SECRET CLAIMANT COMMENCES SUCH
AN ACTION, THE DEPARTMENT SHALL TREAT THE INFORMATION IMPLICATED BY  THE
CLAIM  OF  TRADE SECRET ENTITLEMENT AS A CONFIDENTIAL TRADE SECRET UNTIL
SUCH ACTION AND ALL APPEALS THEREOF ARE RESOLVED. IF THE ACTION  AFFIRMS
THE  DEPARTMENT'S  DETERMINATION  OF THE INSUFFICIENCY OF THE CLAIM, THE
DEPARTMENT SHALL CONTINUE TO TREAT THE  INFORMATION  AS  A  CONFIDENTIAL
TRADE  SECRET  UNTIL THE EARLIER OF THE THIRTIETH DAY AFTER THE DATE THE
TRADE SECRET CLAIMANT RECEIVES NOTICE THAT THE ACTION HAS BEEN  RESOLVED
OR  THE  DATE THE CLAIMANT WITHDRAWS THE DISCLOSURE PURSUANT TO SUBDIVI-
SION FIVE OF THIS SECTION.
  5. NOT LATER THAN THE THIRTIETH DAY AFTER THE DATE  THE  TRADE  SECRET
CLAIMANT  RECEIVES  NOTIFICATION  THAT  THE  DEPARTMENT HAS REJECTED THE
CLAIM OF ENTITLEMENT TO TRADE SECRET PROTECTION  OR  THE  DATE  A  FINAL
JUDGMENT  AFFIRMING  THE DEPARTMENT'S DETERMINATION OF THE INSUFFICIENCY
OF THE CLAIM IS ENTERED, AS APPLICABLE, AND ONLY TO THE EXTENT THAT  THE
RELEVANT  CHEMICAL  CONSTITUENT  HAS  NOT  BEEN USED BY OR FOR THE TRADE
SECRET CLAIMANT IN ANY HYDRAULIC FRACTURING TREATMENT IN THIS STATE, THE
TRADE SECRET CLAIMANT MAY FORMALLY WITHDRAW THE DISCLOSURE OF A CHEMICAL
CONSTITUENT BY NOTIFYING THE DEPARTMENT OF ITS INTENT  TO  WITHDRAW  THE
DISCLOSURE.  IF  THE TRADE SECRET CLAIMANT WITHDRAWS THE DISCLOSURE OF A
CHEMICAL CONSTITUENT, THE DEPARTMENT SHALL PROTECT AND HOLD CONFIDENTIAL
THE IDENTITY OF THE  CHEMICAL  CONSTITUENT  AND  ANY  CORRESPONDING  CAS
NUMBER,  AND  THE  INFORMATION  IS NOT SUBJECT TO DISCLOSURE PURSUANT TO
ARTICLE SIX OF THE PUBLIC OFFICERS LAW. AFTER THE WITHDRAWAL, THE CHEMI-
CAL CONSTITUENT SHALL NOT BE USED BY OR FOR THE TRADE SECRET CLAIMANT IN
ANY HYDRAULIC FRACTURING TREATMENT IN THIS STATE UNLESS THE TRADE SECRET
CLAIMANT SATISFIES THE  REQUIREMENTS  OF  THIS  TITLE  RELATING  TO  THE
DISCLOSURE OF INFORMATION REGARDING THE CHEMICAL CONSTITUENT.
  6. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, THE DEPARTMENT
MAY:
  A.  DISCLOSE  INFORMATION OTHERWISE SUBJECT TO TRADE SECRET PROTECTION
UNDER THIS SECTION TO A THIRD-PARTY TESTING FIRM IN CONNECTION WITH  THE
INVESTIGATION  OF A CLAIM OF CONTAMINATION OF SURFACE WATER OR GROUNDWA-
TER IF THE FIRM AGREES IN WRITING TO KEEP THE INFORMATION  CONFIDENTIAL;
AND
  B.  USE  THE RESULTS OF A TEST CONDUCTED BY A THIRD-PARTY TESTING FIRM
IN CONNECTION WITH AN INVESTIGATION DESCRIBED IN  PARAGRAPH  A  OF  THIS
SUBDIVISION  IN ANY MANNER THE DEPARTMENT CONSIDERS NECESSARY TO PROTECT
PUBLIC HEALTH AND THE ENVIRONMENT.
                                TITLE 16
                   REGULATION OF HYDRAULIC FRACTURING
SECTION 23-1601. DEFINITIONS.
        23-1603. CONCESSION OF LIABILITY.
        23-1605. AGREEMENTS WITH REAL PROPERTY OWNERS.
        23-1607. DAMAGES.
S 23-1601. DEFINITIONS.
  AS USED IN THIS TITLE, UNLESS THE CONTEXT OTHERWISE REQUIRES:
  1. "HYDRAULIC FRACTURING" MEANS THE USE OF CHEMICALS, WATER AND  OTHER
SUBSTANCES  INJECTED  OR PUMPED INTO A NATURAL GAS WELL TO STIMULATE THE
EXTRACTION OF NATURAL GAS.

S. 2284                             7

  2. "PRODUCER" MEANS ANY INDIVIDUAL OR ENTITY ENGAGED IN  THE  DRILLING
FOR  OR  EXTRACTION  OF NATURAL GAS THROUGH THE UTILIZATION OF HYDRAULIC
FRACTURING.
S 23-1603. CONCESSION OF LIABILITY.
  1.  EVERY  PRODUCER,  PRIOR TO THE ISSUANCE OF ANY PERMIT, PURSUANT TO
THIS ARTICLE, TO ENGAGE  IN  HYDRAULIC  FRACTURING,  SHALL  EXECUTE  AND
DELIVER  TO  THE  DEPARTMENT A CONCESSION OF LIABILITY AND WAIVER OF ALL
DEFENSES ARISING OUT  OF  ANY  CAUSE  OF  ACTION  RELATED  TO  PROPERTY,
PERSONAL  AND  WRONGFUL  DEATH  DAMAGES  ALLEGED  TO HAVE BEEN CAUSED BY
HYDRAULIC FRACTURING CONDUCTED BY SUCH  PRODUCER.  SUCH  CONCESSION  AND
WAIVER  SHALL BE EXECUTED IN SUCH FORM AND MANNER AS SHALL BE DETERMINED
BY THE ATTORNEY GENERAL, AND SHALL PROVIDE FOR STRICT LIABILITY  TO  THE
PEOPLE  OF  THE  STATE OF NEW YORK AND EVERY PERSON WITHIN THE STATE FOR
ANY AND ALL DAMAGES ARISING FROM THE CONDUCTING OF HYDRAULIC  FRACTURING
WITHIN THIS STATE.
  2. EVERY PRODUCER WHICH ENTERS INTO AN AGREEMENT WITH AN OWNER OF REAL
PROPERTY  IN THIS   STATE WHICH PROVIDES FOR THE LEASE, LICENSE OR GRANT
OF AUTHORITY TO CONDUCT HYDRAULIC FRACTURING UPON  SUCH  REAL  PROPERTY,
SHALL    INCLUDE A COPY OF ITS CONCESSION OF LIABILITY EXECUTED PURSUANT
TO SUBDIVISION ONE OF THIS SECTION AND A SIMILAR CONCESSION OF LIABILITY
EXECUTED IN FAVOR OF THE REAL PROPERTY OWNER. SUCH CONCESSION OF LIABIL-
ITY IN FAVOR OF A REAL PROPERTY OWNER SHALL BE IN SUCH FORM AS SHALL  BE
DETERMINED BY THE ATTORNEY GENERAL.
S 23-1605. AGREEMENTS WITH REAL PROPERTY OWNERS.
  1.  NO  AGREEMENT  FOR  THE  LEASE,  LICENSE  OR GRANT OF AUTHORITY TO
CONDUCT HYDRAULIC FRACTURING UPON REAL PROPERTY IN THIS STATE, SHALL  BE
EXECUTED  UNTIL  THREE  INDEPENDENT APPRAISALS OF THE VALUE OF SUCH REAL
PROPERTY HAVE BEEN CONDUCTED. SUCH APPRAISALS SHALL BE CONDUCTED AT  THE
EXPENSE  OF  THE  PRODUCER  BY  APPRAISERS SELECTED BY THE REAL PROPERTY
OWNER. UPON COMPLETION OF SUCH APPRAISALS A COPY OF EACH APPRAISAL SHALL
BE PROVIDED TO THE REAL PROPERTY OWNER, THE PRODUCER AND THE DEPARTMENT,
AND SHALL BE ATTACHED TO EVERY AGREEMENT PROVIDING FOR  HYDRAULIC  FRAC-
TURING UPON SUCH REAL PROPERTY.
  2.  NO  AGREEMENT  FOR  THE  LEASE,  LICENSE  OR GRANT OF AUTHORITY TO
CONDUCT HYDRAULIC FRACTURING UPON REAL PROPERTY IN THIS STATE, SHALL  BE
EXECUTED  UNTIL  THE  DEPARTMENT  SHALL  HAVE  CONDUCTED  WATER AND SOIL
CONTAMINATION TESTING UPON  SUCH  REAL  PROPERTY  FOR  THE  PRESENCE  OF
HYDRAULIC  FRACTURING  FLUIDS.  A  REPORT OF THE RESULTS OF SUCH TESTING
SHALL BE PROVIDED TO BOTH THE REAL PROPERTY OWNER AND THE PRODUCER.
  3. EACH PRODUCER SHALL INCLUDE IN EVERY AGREEMENT IT ENTERS INTO  WITH
THE OWNER OF REAL PROPERTY IN THIS STATE FOR THE LEASE, LICENSE OR GRANT
OF AUTHORITY TO CONDUCT HYDRAULIC FRACTURING UPON SUCH REAL PROPERTY:
  A.  A STATEMENT OF THE FINANCIAL, HEALTH AND ENVIRONMENTAL RISKS POSED
BY OR POTENTIALLY POSED BY CONDUCT OF HYDRAULIC FRACTURING. SUCH  STATE-
MENT  SHALL BE JOINTLY DEVELOPED AND PERIODICALLY UPDATED BY THE COMMIS-
SIONER, THE ATTORNEY GENERAL AND THE COMMISSIONER OF HEALTH;
  B. A STATEMENT OF THE RISKS OF GROUND SOIL AND  GROUND  WATER  CONTAM-
INATION  POSED BY OR POTENTIALLY POSED BY THE CONDUCT OF HYDRAULIC FRAC-
TURING;
  C. A STATEMENT OF THE HEALTH RISKS POSED  BY  SPILLS  OF  AND  CONTAM-
INATION BY HYDRAULIC FRACTURING FLUIDS; AND
  D.  A  STATEMENT  OF  THE  PRODUCER'S STRICT LIABILITY FOR ANY AND ALL
DAMAGES RESULTING FROM THE CONDUCTING OF HYDRAULIC FRACTURING,  AND  THE
DAMAGES THAT WILL BE AWARDED THEREFOR PURSUANT TO THIS TITLE.
S 23-1607. DAMAGES.

S. 2284                             8

  1.  NOTWITHSTANDING  ANY  OTHER PROVISION OF LAW TO THE CONTRARY, UPON
THE CONTAMINATION OF GROUND SOIL AND/OR GROUND WATER  BY  ANY  PRODUCER,
SUCH PRODUCER SHALL BE LIABLE FOR THE FOLLOWING DAMAGES:
  A. TO THE AFFECTED REAL PROPERTY OWNER, AN AMOUNT EQUAL TO ONE HUNDRED
FIFTY  PERCENT  OF  THE  REAL  PROPERTY VALUE, AS DETERMINED PURSUANT TO
SUBDIVISION ONE OF SECTION 23-1605 OF THIS TITLE, AND THE FULL  COST  OF
REMEDIATING THE CONTAMINATED GROUND SOIL AND GROUND WATER; AND
  B.  TO  ANY  PERSON AFFECTED BY SUCH CONTAMINATION, AN AMOUNT EQUAL TO
THE COST OF THE  DIAGNOSIS,  TREATMENT,  MONITORING  AND  CARE  OF  SUCH
PERSON,  FOR  LIFE,  RELATED  TO ANY DISEASE OR CONDITION ARISING OUT OF
SUCH CONTAMINATION.
  2. UNDER NO CIRCUMSTANCES SHALL ANY AMOUNT OF DAMAGES AWARDED OR  PAID
PURSUANT TO THIS SECTION BE DEEMED TO BE INCOME TO ANY PERSON.  ALL SUCH
DAMAGES  SHALL  BE  REIMBURSEMENT  FOR  LOSSES  ACTUALLY INCURRED BY THE
RECIPIENT THEREOF.
  S 2. Subdivision 9 of section 8-0109 of the environmental conservation
law, as added by chapter 219 of the laws of 1990, is amended to read  as
follows:
  9.  An environmental impact statement shall be prepared for any action
found to have a significant impact on the special groundwater protection
area, as defined in section 55-0107 of this chapter OR FOR  ANY  NATURAL
GAS  OR  OIL  DRILLING  INVOLVING THE USE OF HYDRAULIC FRACTURING FLUID.
Such statement shall meet the requirements of the most detailed environ-
mental impact statement required by this section or by any such rule  or
regulation promulgated pursuant to this section.
  S  3.  Subdivision 2 of section 23-0303 of the environmental conserva-
tion law is REPEALED and a  new  subdivision  2  is  added  to  read  as
follows:
  2.  FOR  THE  PURPOSES STATED HEREIN, THIS SECTION SHALL SUPERSEDE ALL
OTHER STATE AND LOCAL LAWS RELATING TO THE OIL, GAS AND SOLUTION  MINING
INDUSTRIES;  PROVIDED,  HOWEVER,  THAT  NOTHING IN THIS SECTION SHALL BE
CONSTRUED TO PREVENT ANY LOCAL GOVERNMENT FROM:
  A. ENACTING OR ENFORCING LOCAL LAWS OR ORDINANCES OF GENERAL  APPLICA-
BILITY,  EXCEPT  THAT  SUCH  LOCAL LAWS OR ORDINANCES SHALL NOT REGULATE
OIL, GAS AND SOLUTION MINING REGULATED BY STATE STATUTE,  REGULATION  OR
PERMIT; OR
  B.  ENACTING OR ENFORCING LOCAL ZONING ORDINANCES OR LAWS WHICH DETER-
MINE PERMISSIBLE USES IN ZONING DISTRICTS. WHERE OIL, GAS  AND  SOLUTION
MINING  IS DESIGNATED A PERMISSIBLE USE IN A ZONING DISTRICT AND ALLOWED
BY SPECIAL USE PERMIT, CONDITIONS PLACED ON  SUCH  SPECIAL  USE  PERMITS
SHALL BE LIMITED TO THE FOLLOWING:
  (I) INGRESS AND EGRESS TO PUBLIC THOROUGHFARES CONTROLLED BY THE LOCAL
GOVERNMENT;
  (II)  ROUTING  OF  DRILLING AND DRILLING-RELATED TRANSPORT VEHICLES ON
ROADS CONTROLLED BY THE LOCAL GOVERNMENT;
  (III) REQUIREMENTS AND CONDITIONS AS SPECIFIED IN THE PERMIT ISSUED BY
THE DEPARTMENT CONCERNING SETBACK FROM PROPERTY  BOUNDARIES  AND  PUBLIC
THOROUGHFARE  RIGHTS-OF-WAY,  NATURAL  OR  MAN-MADE BARRIERS TO RESTRICT
ACCESS, IF REQUIRED, DUST CONTROL AND HOURS OF OPERATION; AND
  (IV) CONFORMANCE TO ROAD CONSTRUCTION STANDARDS AS  MAY  BE  OTHERWISE
PROVIDED FOR BY LOCAL LAW; OR
  C.  ENACTING OR ENFORCING LOCAL LAWS OR ORDINANCES REGULATING OIL, GAS
AND SOLUTION MINING NOT REQUIRED TO BE PERMITTED BY THE STATE.
  S 4. This act shall take effect on the first of June  next  succeeding
the  date  on  which  it  shall  have  become  a law; provided, that the
provisions of title 16 of article 23 of the  environmental  conservation

S. 2284                             9

law,  as  added  by section one of this act, shall apply to every lease,
license and grant of authority to conduct hydraulic fracturing which  is
in  effect  on or after such effective date; and provided, further that,
effective immediately, any actions necessary to implement the provisions
of  this  act  on  its  effective date are authorized and directed to be
completed on or before such date.

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