SB0451sam002 99TH GENERAL ASSEMBLY

Sen. Dan Kotowski

Filed: 4/27/2015

 

 


 

 


 
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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, prior to final approval of any
10and all new or modified permits for high volume horizontal
11fracturing wells and operations, horizontal drilled wells with
12fracturing operations, Class II injection disposal wells, and
13waste management plans for disposal of oil drilling waste,
14liquid natural gas waste, or natural gas drilling waste from
15high volume horizontal fracturing wells and operations, and
16horizontal drilled wells with fracturing operations, request

 

 

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1the approval of those permits, permit modifications, and plans
2from the Illinois Active Earthquake Zone Investigative Task
3Force, created in subsection (e) of this Section, if the wells
4and operations or disposal sites are located within any and all
5counties that wholly or partially contain any part of the New
6Madrid seismic zone, the Wabash Valley seismic zone, the Ste.
7Genevieve seismic zone, the Cottage Grove fault system, the
8Rough Creek-Shawneetown fault system, the magmatic system of
9Hicks Dome, the Illinois-Kentucky Fluorspar District, or the
10NNW-trending La Salle, Du Quoin, and Clay City fold systems.
11The requirement of obtaining approval of permits, permit
12modifications, or waste management plans from the Illinois
13Active Earthquake Zone Investigative Task Force is in addition
14to all requirements mandated by this Act.
15    (b) Public notice shall be given no later than 5 days after
16a request by the Department of an approval from the Task Force,
17via announcement on the Illinois Emergency Management Agency
18website in a manner that is accessible and searchable by the
19public, including the permits, permit modifications, or waste
20management plans, their locations, the operators and companies
21involved, and as much detail about the permits, permit
22modifications, or waste management plans as is available. The
23public announcement shall initiate a public comment period that
24shall last for 60 days allowing for public comments, both
25electronically and written. The Task Force shall host any
26public hearings that it deems necessary and take all public

 

 

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1comments under advisement during their process of
2deliberation. The public shall be able to, through the website,
3request a public hearing on the approval, which shall be
4granted if requested by: (i) any stake holder with real
5property, water, or business interests within the county, or
6immediate adjacent counties, for which the permit,
7modification, or disposal plan approval has been requested,
8(ii) a community, religious, or environmental organization
9with 4 or more members who live within the county or immediate
10adjacent counties for which the permit, modification, or
11disposal plan approval has been requested, or (iii) 4 or more
12members of the general public who live within the county or
13immediate adjacent counties for which the permit,
14modification, or disposal approval has been requested. The
15public hearing, if granted, shall be scheduled by the Task
16Force within 60 days of the due date of the approval or denial,
17with public notice of at least 14 days, within the county for
18which the permit, modification, or disposal plan approval has
19been requested. The public hearing shall be attended by at
20least 3 members of the Task Force and documented on video,
21which shall be archived within 3 days on the Illinois Emergency
22Management Agency website and be accessible to the public.
23    (c) The approval or denial of any permits, modifications,
24or disposal plans by the Illinois Active Earthquake Zone
25Investigative Task Force shall:
26        (1) be published no later than 120 days after receipt

 

 

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1    of the request from the Department;
2        (2) be reflective of a 50% plus one vote of the Task
3    Force and signed by a majority of the members of the Task
4    Force, or their designee;
5        (3) clearly state the reasons for the decision and any
6    dissenting votes and their reasons;
7        (4) be archived as a public document, along with all
8    public comments and testimony at public hearings in a
9    searchable database that is accessible to the public on the
10    website of the Illinois Emergency Management Agency;
11        (5) be posted within 48 hours on the websites of the
12    Department and the Illinois Emergency Management Agency;
13        (6) upon request by the Department, initiate a public
14    process;
15        (7) allow an appeal process with the Task Force by any
16    person described in subsection (b), either in writing or
17    electronically, within 30 days after the Task Force
18    publishes its approval or denial; and
19        (8) be decided only if a quorum of Task Force members
20    are in attendance at the meeting where the vote is taken,
21    either in person, by phone, or electronic conferencing.
22    The Task Force shall address all significant issues brought
23up in the appeal process in writing, individually, and publicly
24on its website within 30 days after the close of the appeal
25comment period. The Task Force may revoke its approval or
26denial of the permits, modifications, or disposal plans based

 

 

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1on evidence brought forth during the appeal process if done
2within 60 days of the initial approval or denial, with a 50%
3plus one vote of the members of the Task Force. The Task Force
4shall publish its decision to revoke an approval or denial and
5the reasons for its decision along with any dissenting votes
6and its reasons within 60 days after the initial approval or
7denial.
8    (d) The Department shall work with the Illinois State
9Geological Survey to perform probability mapping of all active
10seismic zones in this State listed in subsection (a). Using
11existing data and resources at the Illinois State Geological
12Survey and the United States Geological Survey, along with data
13on faults in brittle rock, the Illinois State Geological Survey
14shall outline, for each county, the areas of the active faults
15listed in subsection (a) that carry a high, medium, and low
16probability of induced seismicity from high volume horizontal
17fracturing wells and operations, horizontal drilled wells with
18fracturing operations, Class II injection disposal wells, and
19waste disposal of oil drilling waste, liquid natural gas waste,
20or natural gas drilling waste from high volume horizontal
21fracturing wells and operations, and horizontal drilled wells
22with fracturing operations. This map shall be finalized no
23later than January 1, 2017 and shall be publicly available on
24the websites of the Department, the Illinois Emergency
25Management Agency, and the Illinois State Geological Survey
26within one week of its completion.

 

 

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1    (e) The Illinois Active Earthquake Zone Investigative Task
2Force is hereby created. The Task Force shall have the
3following members:
4        (1) the Director, or his or her representative, from
5    each of the following State agencies: the Illinois
6    Emergency Management Agency, the Department of Natural
7    Resources, the Department of Public Health, the Illinois
8    State Water Survey, the Illinois Pollution Control Board,
9    the Illinois Environmental Protection Agency, the Illinois
10    State Geological Survey, and the Department of Insurance;
11        (2) one independent expert in risk assessment in
12    earthquake zones and its impact on insurance rates and
13    ratings appointed by the Director of Insurance;
14        (3) one university-based independent seismologist with
15    expertise in induced seismicity appointed by the Director
16    of the Illinois State Geological Survey; and
17        (4) one member appointed by the Attorney General with
18    expertise in property and insurance law.
19    (f) The chairperson of the Illinois Active Earthquake Zone
20Investigative Task Force shall be the Director of the Illinois
21Emergency Management Agency or his or her representative. The
22members shall be appointed no later than 30 days after the
23effective date of this amendatory Act of the 99th General
24Assembly.
25    The Illinois Active Earthquake Zone Investigative Task
26Force shall:

 

 

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1        (1) Meet as often as necessary, but at least once a
2    month, either in person or via conference call or
3    electronic conferencing capabilities, beginning no later
4    than 60 days after the effective date of this amendatory
5    Act of the 99th General Assembly. All meetings shall:
6            (A) be conducted as public meetings with adequate
7        public notice, and allow for the public to submit
8        comments and documents at the meetings and
9        electronically;
10            (B) be archived on the website of the Illinois
11        Emergency Management Agency in a searchable manner for
12        the public; and
13            (C) convene in the areas of Illinois with the
14        active seismic zones listed in subsection (a) at least
15        3 times a year.
16        (2) Serve without pay, if the member is employed by the
17    State, or, if the member is not employed by the State, paid
18    a per diem set by the Illinois Emergency Management Agency,
19    for time spent working on the Task Force.
20        (3) Investigate any and all adverse effects or risks
21    from significant naturally-occurring earthquakes and
22    induced seismicity by high volume horizontal fracturing
23    wells and operations, horizontal drilling with fracturing
24    operations, and the disposal of oil, liquid natural gas,
25    and natural gas waste in Class II injection wells, on oil
26    and natural gas wells, operations, and infrastructure, in

 

 

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1    the active seismic zones listed in subsection (a).
2        (4) Investigate the risks and probabilities of induced
3    seismicity from Class II injection well disposal of oil and
4    natural gas waste if the wells are located within any and
5    all counties that wholly or partially contain any part of
6    the active seismic zones listed in subsection (a).
7        (5) Examine the probability of induced seismicity in
8    Illinois active seismic zones and any and all adverse
9    effects or risks of induced seismicity on:
10            (A) water resources, water wells, aquifers, dams,
11        canals, any possible contamination, and the
12        environment, including possible soil and air
13        contamination;
14            (B) public health effects, including mental health
15        adverse effects of repeated induced seismic events;
16            (C) property, including livestock and domesticated
17        animals, wells, residences, structures, and farming
18        buildings;
19            (D) tourism and recreational activities in the
20        active seismic zones of this State;
21            (E) risk management issues, including emergency
22        management plans;
23            (F) risk management issues, including liability,
24        bonding, and insurance requirements for operators,
25        well owners, land owners, mineral rights owners,
26        lessors, and subcontractors and the effects on

 

 

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1        insurance rates and ratings, mortgages, small
2        businesses and their insurance and mortgage rates and
3        availability;
4            (G) the mechanical integrity of oil, liquid
5        natural gas, and natural gas wells, Class II injection
6        wells, the oil, liquid natural gas, and natural gas
7        industry infrastructure, including pipelines, and any
8        possible contamination from a breach of mechanical
9        integrity of these structures;
10            (H) effects of potential spillage, leakage, fires,
11        or blowouts of the oil, liquid natural gas, and natural
12        gas wells, fracturing waste and waste water
13        containment structures, including open pits, oil,
14        liquid natural gas, and natural gas processing
15        infrastructure, and transportation infrastructure,
16        including pipelines, secondary to possible induced
17        seismicity, and significant naturally occurring
18        seismic events;
19            (I) effects of potential spillage, leakage, fires,
20        or blowouts of chemicals, proppants, and byproducts,
21        and their containment, processing, and transportation
22        infrastructure, secondary to possible induced
23        seismicity, and significant naturally occurring
24        seismic events;
25            (J) the safety of any nuclear power plants, uranium
26        processing plants, or low-level radioactive waste

 

 

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1        storage sites in this State and the surrounding states
2        that may be impacted by induced seismicity triggered
3        within the active seismic zones in this State;
4            (K) the risks of inducing a significant earthquake
5        greater than magnitude 6, either immediately or in the
6        future, on all of the issues delineated in this
7        Section, and the risk management issues involved with
8        protracted or larger magnitude induced seismic events;
9        and
10            (L) whether the Green Light, Yellow Light, Red
11        Light system of mitigation of induced seismicity,
12        proposed by the Illinois State Geological Survey and
13        the Department, is appropriate or sufficient for
14        mitigation of all adverse effects of induced
15        seismicity in the active seismic zones in this State.
16    (g) The Illinois Active Earthquake Zone Investigative Task
17Force shall investigate the issues under subsection (f), allow
18their investigations to inform their approval or denial of any
19permits, modifications, or disposal plans, and write and submit
20a report to the General Assembly, the Governor, the Hydraulic
21Fracturing Task Force, the Illinois Emergency Management
22Agency, the Department of Natural Resources, the Department of
23Public Health, the Illinois State Water Survey, the Illinois
24Pollution Control Board, the Illinois Environmental Protection
25Agency, the Illinois State Geological Survey, the Department of
26Insurance, the Illinois Attorney General, and to the public via

 

 

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1the website of the Illinois Emergency Management Agency and the
2website of the Department of Natural Resources. The report
3shall be as complete as possible when discussing the risks and
4the possible mitigation of the risks from induced seismicity
5and shall include recommendations and conclusions about
6induced seismic events in the active seismic zones listed in
7subsection (a), including:
8        (1) the risks of drilling and extracting oil, liquid
9    natural gas, and natural gas in active seismic zones;
10        (2) the risks of drilling and operating Class II
11    injection wells in active seismic zones;
12        (3) the storage, disposal, and use of fracturing waste
13    or wastewater open pits in active seismic zones;
14        (4) earthquake induced contamination of air, water,
15    and soil from oil and natural gas extraction operations and
16    waste disposal, the clean up and public health effects of
17    the contamination;
18        (5) emergency management recommendations during
19    earthquakes involving areas of oil and natural gas
20    operations and infrastructure;
21        (6) earthquake-induced spillage and leakage from oil
22    and natural gas wells and infrastructure and Class II
23    injection disposal wells;
24        (7) oil and natural gas infrastructure instability
25    during earthquakes;
26        (8) bonding requirements for oil and natural gas

 

 

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

 

 

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1and communication recommendations related to the oil and
2natural gas industry and its operations before, during, and
3after induced seismicity and significant naturally-occurring
4seismic events.
5    (i) The Illinois Active Earthquake Zone Investigative Task
6Force shall submit its report on or before January 1, 2018.
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.".