HB 32 OIL & GAS CHILDREN'S HEALTH PROTECTION ZONES

Rep Debra Mari Sarinana

Actions: HPREF [1] not prntd-HRC

Scheduled: Not Scheduled

 House Bill 32 (HB 32) restricts oil and gas operations in Children’s Health Protection Zones that are established by this legislation and provides definitions. Beginning in 2028 ceasing of gas and oil activities in the zones is required with limited exceptions. HB 32 requires oil and gas operators to create zone maps; plan detection and leak response and alarm response; and conduct water testing. HB 32 provides penalties for failure to comply with its provisions.  

 House Bill 32 (HB 32) establishes Children’s Health Protection Zones (zones) and restricts oil and gas (OG) operations in the zones. Zones are defined as areas extending 5,280 feet from school property lines. Also defined is an owner as the person who has drilling rights and to produce from a pool for themselves or for the person and another. Schools means K-12 public, charter, or private schools and any of its associated daycare center, park, playground, or sports and recreation facility.

Beginning 2028, OG operations in a zone must terminate activity unless granted a variance. The Oil and Conservation Division (division) of the Energy, Minerals, and Natural Resources Department (EMNRD) may grant a variance from either being approved for drilling in a zone beginning July 1, 2024 or ceasing operation by 2028 under two conditions: a variance is necessary to plug and abandon a well or if activity prohibited in the zone would result in the loss of all economic value of property or causes severe adverse economic impact and the applicant cannot meet reasonable investment-backed expectations. The division cannot issue a variance if it would harm public health. A final decision is reached after the applicant requests a variance and administrative proceedings are complete. Proceeding guideline and rules will be created by the division.

Operators applying for a drilling permit will submit a protection zone inventory and map to the division. Existing operators must submit the inventory and map by January 1, 2025. The inventory and map include a list of production facilities and wellheads and if they are in a zone. If in a zone, a list of schools and a map of their location in relation to the facility must be provided. Beginning in 2026 operators must submit updated versions annually. The division will post protection zone inventories and maps on their website.

By 2025, operators with facilities located in a zone must post contact information for reporting complaints about noise, odor, or other concerns that include the responsible employee and enforcement officials. Within a zone, unless there are more stringent local requirements, operators must ensure noise does not exceed ambient levels and utilize only necessary safety and security lighting between 8:00 p.m. and 7:00 a.m.; employ measures to minimize dust including limiting vehicle speeds on unpaved roads and covering sands, muds, and excavated soil; and provide the division with chemical analysis for produced water. 

Operators within zones must develop a leak detection and response plan (plan) and submit to the division by 2025. The division will assess plans for deficiencies or approve within 90 days. The plan includes identification of chemicals and toxic substances as specified by the Environment Improvement Board (EIB) or local government as of paramount concern. Methane may serve as a surrogate for the chemicals that cannot be continuously monitored. The plan must contain an emissions detection system to rapidly detect chemicals and leaks; provide monitoring locations; an alarm system and protocol for leaks; and information about weather monitoring equipment. Alarm response protocol must provide for immediate mitigation of leaks lasting for more than 48 hours and includes a communication plan to notify local emergency responders, public health officials, the division, and surrounding community in languages easily understood by those impacted; observes all requirements for reporting hazardous materials leaks; is developed in consultation with local emergency agencies; and provides for the collection and determination of the leak that can adversely affect health. The division will review plans and requests updates at least every five years. Emissions and meteorological data must be maintained by the operator 10 years. The division is responsible to holding a public technical workshop at least every two years to provide guidance on developing plans.

If operators do not have an approved plan by July 1, 2025, or is not in compliance with the Air Quality Control Act or local ordinances based on the Act, then operations must be suspended until the division approves resumption of activities. If a continuous chemical leak of 48 hours duration is detected in a zone operation must cease immediately until it is corrected, and the division approves continuation of operation.

Beginning July 1, 2024, operations in a zone that is permitted to drill under an exception must provide notice to property owners and tenants located within 5,280 feet of the operator’s property line and offer to sample and test water wells and surface water at least 30 days prior to drilling. If the property owner or tenant makes a timely request, the operator must collect a baseline water sample and an additional sample no sooner than 30 days and no later than 60 days after drilling is complete. Water sampling and testing must be conducted by qualified personnel. Results must be provided to the division and property owners or tenants within 120 days of the completion of drilling. If the property owners or tenant cannot accommodate access to collect water samples within 15 days of the operators notice, failure to do the testing does not constitute a violation. The division may waive the water sampling requirement if a delay in drilling may result in significant damage to life, health, or natural resources. If a state or federal agency has determined that the water within the zone is not an underground source of drinking water or lacks beneficial use, then water sampling is not required. The operator bears the cost of sampling.

In consultation with the EIB the division is charged with rulemaking and to implement performance standards for an operator’s emissions detection system. Beginning in 2026 annual reports are submitted by operators with information about the operational condition of the emissions detection system; number and causes of alarms; nature of leaks including the impact on air quality and exposure to the community and impact on production; and results of water sample testing. The division must report OG activity in zones and progress on implementation of leak detection and response plans annually to appropriate interim legislative committees.

HB 32 establishes a civil penalty assessed by a court, division, or Oil Conservation Commission (commission) for operator violations in a zone up to $30,000 per day per violation. Penalties assessed by the division or commission after a hearing is limited to $200,000. The limit does not apply to court judgements.

HB 32 does not have an effective date. If passed and signed into law, the assumed effective date is 90 days after the end of the session, May 15.