Sen. Dan Kotowski

Filed: 3/20/2015

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 451

2    AMENDMENT NO. ______. Amend Senate Bill 451 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Hydraulic Fracturing Regulatory Act is
5amended by adding Section 1-99.5 as follows:
 
6    (225 ILCS 732/1-99.5 new)
7    Sec. 1-99.5. The Illinois Active Earthquake Zone
8Investigative Task Force.
9    (a) The Department shall, on the effective date of this
10amendatory Act of the 99th General Assembly, suspend the
11acceptance or approval of any and all new or modified permits
12for high volume horizontal fracturing wells and operations,
13horizontal drilled wells with fracturing operations, and Class
14II injection wells that are located within any and all counties
15that wholly or partially contain any part of the New Madrid
16seismic zone, the Wabash Valley seismic zone, Cottage Grove

 

 

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1fault system, Rough Creek–Shawneetown fault system, the
2magmatic system of Hicks Dome, the Illinois-Kentucky Fluorspar
3District, or the NNW-trending La Salle, Du Quoin, and Clay City
4fold systems. The Department shall also suspend any approval of
5waste management plans for high volume horizontal fracturing
6wells and operations, horizontal drilled wells with fracturing
7operations, for disposal of oil, liquid natural gas, or natural
8gas waste in existing Class II injection wells if they are
9located within any and all counties that wholly or partially
10contain any part of the New Madrid seismic zone, the Wabash
11Valley seismic zone, Cottage Grove fault system, Rough
12Creek–Shawneetown fault system, the magmatic system of Hicks
13Dome, the Illinois-Kentucky Fluorspar District, or the
14NNW-trending La Salle, Du Quoin, and Clay City fold systems.
15    (b) The Department shall work with the Illinois State
16Geological Survey to perform probability mapping of all active
17seismic zones in this State listed in subsection (a). Using
18existing data and resources at the Illinois State Geological
19Survey and the United States Geological Survey, along with data
20on faults in brittle rock, the Illinois State Geological Survey
21shall outline, for each county, the areas of the active faults
22listed in subsection (a) that carry a high, medium, and low
23probability of seismicity from oil, liquid natural gas, and gas
24waste disposal in Class II injection wells.
25    (c) The Illinois Active Earthquake Zone Investigative Task
26Force is hereby created. The Task Force shall have the

 

 

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1following members:
2        (1) the Director, or his or her representative, from
3    each of the following State agencies: the Illinois
4    Emergency Management Agency, the Department of Natural
5    Resources, the Department of Public Health, the Illinois
6    State Water Survey, the Illinois Pollution Control Board,
7    the Illinois Environmental Protection Agency, the Illinois
8    State Geological Survey, and the Department of Insurance;
9        (2) one independent expert in risk assessment in
10    earthquake zones and its impact on insurance rates and
11    ratings appointed by the Director of Insurance;
12        (3) one university-based independent seismologist with
13    expertise in induced seismicity appointed by the Director
14    of the Illinois State Geological Survey; and
15        (4) one member from the Illinois Attorney General's
16    office appointed by the Attorney General.
17    (d) The chairperson of the Illinois Active Earthquake Zone
18Investigative Task Force shall be the Director of the Illinois
19Emergency Management Agency, or his or her representative. The
20members shall be appointed no later than 60 days after the
21effective date of this amendatory Act of the 99th General
22Assembly.
23    The Illinois Active Earthquake Zone Investigative Task
24Force shall:
25        (1) Meet once a month, either in person or through
26    video conferencing capabilities, beginning no later than

 

 

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1    90 days after the effective date of this amendatory Act of
2    the 99th General Assembly.
3        (2) Operate without pay, but with all expenses paid for
4    the functioning of the Task Force to be allocated by the
5    Illinois Emergency Management Agency.
6        (3) Investigate any and all adverse effects, or risks,
7    of induced seismicity by the disposal of oil, liquid
8    natural gas, and natural gas waste in Class II injection
9    wells in active earthquake zones. And in particular, if the
10    Class II injection wells are located within any and all
11    counties that wholly or partially contain any part of the
12    New Madrid seismic zone, the Wabash Valley seismic zone,
13    Cottage Grove fault system, Rough Creek–Shawneetown fault
14    system, the magmatic system of Hicks Dome, the
15    Illinois-Kentucky Fluorspar District, or the NNW-trending
16    La Salle, Du Quoin, and Clay City fold systems.
17        (4) Examine the probability of induced seismicity in
18    Illinois active seismic zones and any and all adverse
19    effects or risks of possible induced seismicity on:
20            (A) water resources, water wells, aquifers, dams,
21        canals, any possible contamination, and the
22        environment, including possible soil and air
23        contamination;
24            (B) public health effects, including mental health
25        adverse effects of repeated induced seismic events;
26            (C) adverse effects on property, including

 

 

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1        livestock and domesticated animals;
2            (D) adverse effects on tourism and recreational
3        activities in the active seismic zones of this State;
4            (E) risk management issues, including emergency
5        management plans;
6            (F) risk management issues, including liability
7        issues, bonding issues, and insurance requirements for
8        operators, well owners, land owners, mineral rights
9        owners, lessors, and subcontractors and the effects on
10        insurance rates and ratings, mortgages, small
11        businesses and their insurance and mortgage rates and
12        availability;
13            (G) effects on the mechanical integrity of the oil,
14        liquid natural gas, and natural gas wells, Class II
15        injection wells, and the oil, liquid natural gas, and
16        natural gas industry critical infrastructure,
17        including pipelines, and any possible contamination
18        from a breach of mechanical integrity of these
19        structures;
20            (H) effects of potential spillage, leakage, fires,
21        or blowouts of the oil, liquid natural gas and natural
22        gas wells, fracturing waste and waste water
23        containment structures including open pits, oil,
24        liquid natural gas and natural gas processing
25        infrastructure, and transportation infrastructure,
26        including pipelines, secondary to possible induced

 

 

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1        seismicity;
2            (I) effects of potential spillage, leakage, fires,
3        or blowouts of chemicals, proppants, and byproducts,
4        and their containment, processing, and transportation
5        infrastructure, secondary to possible induced
6        seismicity;
7            (J) the safety of any nuclear power plants, uranium
8        processing plants, or low level radioactive waste
9        storage sites in this State and the surrounding states
10        that might be impacted by induced seismicity triggered
11        within the active seismic zones in this State;
12            (K) the risks of inducing a major earthquake,
13        greater than magnitude 6, either immediately or in the
14        future, on all of the issues delineated in this
15        Section, and the risk management issues involved with a
16        higher level of induced seismicity; and
17            (L) whether the Green Light, Yellow Light, Red
18        Light system of mitigation of induced seismicity,
19        proposed by the Illinois State Geological Survey and
20        the Department of Natural Resources, is appropriate or
21        sufficient for real mitigation of all adverse effects
22        of induced seismicity in the active seismic zones in
23        this State.
24    (e) The Illinois Active Earthquake Zone Investigative Task
25Force shall investigate the issues under subsection (d) and
26write a report to be submitted to the General Assembly, the

 

 

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1Governor, the Hydraulic Fracturing Task Force, the Illinois
2Emergency Management Agency, the Department of Natural
3Resources, the Department of Public Health, the Illinois State
4Water Survey, the Illinois Pollution Control Board, the
5Illinois Environmental Protection Agency, the Illinois State
6Geological Survey, the Department of Insurance, the Illinois
7Attorney General, and to the public via the website of the
8Illinois Emergency Management Agency and the website of the
9Department of Natural Resources. The report shall be as
10complete as possible when discussing the risks and the possible
11mitigation of the risks of induced seismicity shall include
12recommendations and conclusions about naturally occurring
13seismic events in the active seismic zones listed in subsection
14(a), including:
15        (1) the risks of drilling and extracting oil, liquid
16    natural gas, and natural gas in active seismic zones;
17        (2) the risks of drilling and operating Class II
18    injection wells in active seismic zones;
19        (3) the use of fracturing waste or wastewater open pits
20    in active seismic zones;
21        (4) earthquake induced contamination of air, water,
22    and soil from oil and natural gas extraction operations and
23    waste disposal, the clean up and public health effects of
24    the contamination;
25        (5) emergency management recommendations during
26    earthquakes involving areas of oil and natural gas

 

 

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1    operations and infrastructure;
2        (6) earthquake induced spillage and leakage from oil
3    and natural gas wells;
4        (7) oil and natural gas infrastructure instability
5    during earthquakes;
6        (8) bonding requirements for oil and natural gas
7    operations and infrastructure in active seismic zones;
8        (9) insurance requirements for oil and natural gas
9    operations and infrastructure in active seismic zones;
10        (10) best practices for the oil and natural gas
11    industry in active seismic zones; and
12        (11) any and all emergency management, transportation,
13    and communication recommendations related to the oil and
14    natural gas industry and its operations before, during, and
15    after an earthquake.
16    (f) The report shall include recommendations to the General
17Assembly and Governor for legislation to protect the public
18health and environment, property, livelihoods, and communities
19from all reported adverse affects of induced seismicity in the
20Illinois active seismic zones, including recommendations to
21the General Assembly about legislation to limit damages, harms,
22risks, contamination, and legal challenges over liability
23secondary to naturally concurring seismic events in the active
24seismic zones and how to mitigate the risks from blowouts,
25spillage, leakage, and damages to the mechanical integrity of
26oil, liquid natural gas, and natural gas wells, drilling, Class

 

 

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1II injection wells, waste and waste water containment,
2pipelines, infrastructure, chemicals, proppants, and
3byproducts. This report shall also include any and all
4emergency management, transportation, and communication
5recommendations related to the oil and natural gas industry and
6its operations before, during, and after induced seismicity and
7naturally occurring seismic events.
8    (g) The Illinois Active Earthquake Zone Investigative Task
9Force shall submit its report on or before January 1, 2018. The
10Task Force shall be dissolved on July 1, 2018.
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.".