Actions: HPREF [2] HENRC/HHHC/HJC-HENRC [3] DNP-CS/w/o rec-HHHC [5] DP-HJC
Scheduled: Not Scheduled
House Bill 35 (HB35): Relates to the environment and is focused on oil and gas operations. This bill establishes areas where oil and gas operations are restricted to protect children's health. It also requires oil and gas operators to create the following: (1) an inventory and map of protected zones (2) develop and implement plans for leak detection and response (3) conduct water sampling and testing. Any violations of these requirements will cause suspension of operations. This bill will establish penalties for non-compliance.Legislation Overview:
House Bill 35 (HB35): Children's Health Protection Zone extends 5,280 feet (1 mile) from the property line of a school or associated facilities. New drilling permits in (Children Health Protective Zones) CHPZ are prohibited starting August 1, 2025, unless approved variance demonstrates avoiding severe economic harm or loss of property value without risking public health. Operators must submit detailed maps and inventories of facilities and wells located in CHPZs, including proximity to schools. By 2026, operators must develop and implement leak detection systems, including continuous monitoring, alarm systems, and emergency response plans. Operators must offer pre- and post-drilling water testing for properties within CHPZs and enforce measures to limit dust, noise, and odors affecting nearby communities. Immediate suspension of operations will occur if (a) Continuous chemical leaks exceeding 48 hours (b) Non-compliance with approved leak detection and response plans and (c) Violations of the Air Quality Control Act or local ordinances. Annual reports from operators require details regarding leak incidents and responses, emissions system downtime and water quality testing results. State agency reports to legislative committees on progress and implementation. Violations in CHPZs may incur penalties of up to $30,000 per day, significantly higher than outside these zones. Operators must notify nearby property owners of new drilling activities and provide clear communication during leak incidents.Committee Substitute:
HENRCcs/HB 35: This bill adds new provisions to the Oil and Gas Act and the Air Quality Control Act to protect children’s health by restricting and regulating oil and gas operations near schools. These restrictions apply within a newly defined area called a "children’s health protection zone," which extends 5,280 feet (one mile) from the property line of a school (including daycares and associated play or recreational areas). a) Below are the key elements of the bill: Children’s Health Protection Zone • Defines a children’s health protection zone as the area within 5,280 feet of a school’s property line. • Significantly increases safeguards and imposes stricter requirements on oil and gas operators within these zones. • Restrictions on Drilling • Prohibits new oil and gas drilling within a children’s health protection zone starting August 1, 2025, unless the operator obtains a variance. b) Variances are only granted if: • Needed to plug or re-abandon a well; or • The operator demonstrates, in an administrative proceeding, that a denial of a drilling permit would result in a complete loss of property value or cause severe adverse economic impact to the operator’s reasonable investment, and the variance would not harm public health. c) Protection Zone Inventory and Map • Operators must submit an inventory and map of wells and production facilities to the Oil Conservation Division (“division”), identifying any that lie within a children’s health protection zone. • The inventory must be filed by January 1, 2026 for existing facilities, and updated annually (or a statement filed if no changes have occurred). • Enhanced Operational Requirements in Children’s Health Protection Zones • Posting Contact Information: Operators must post contact info for complaints on the perimeter of the operator’s property. • Dust and Particulate Controls: Operators must limit vehicle speeds on unpaved roads and contain or cover stored drilling materials. d) Water Quality Sampling: • For new drilling, operators must offer pre- and post-drilling water sampling and testing to property owners and tenants within 5,280 feet. • Operators must cover the costs of sampling and testing and submit results to the division and the affected owners/tenants. e) Suspension of Operations if Leaks Are Not Fixed: • Any chemical leak that continues for more than 48 hours requires an immediate shutdown until corrected. • If an operator is not in compliance with air quality rules or lacks an approved leak detection plan, operations must be suspended. f) Stricter Penalties for Violations • In a children’s health protection zone, daily civil penalties can be up to $30,000 per day (with a total administrative penalty cap of $3 million). • Courts may impose higher penalties with no specified cap. • Leak Detection and Response Plan (Air Quality Control Act Amendments) • Operators in a children’s health protection zone must develop a leak detection and response plan, to be reviewed by the Environment Department. g) Plans must include: • Continuous emission detection systems to identify leaks rapidly. • Alarm response protocols, including immediate efforts to fix leaks and notify the community and local emergency responders if a leak persists over 48 hours. • Plans must be fully implemented by July 1, 2026, and updated at least every five years. • Operators must submit an annual report detailing equipment downtime, number of leaks, length of leaks, and any ground water testing. • Immediate Suspension of Operations for Noncompliance • Operations must be suspended if an operator’s production facility is out of compliance with the Air Quality Control Act (or local ordinances) or if an operator fails to implement its approved leak detection and response plan by the required date.