Sen. Michael W. Frerichs

Filed: 3/30/2012

 

 


 

 


 
09700SB3280sam004LRB097 19968 CEL 68291 a

1
AMENDMENT TO SENATE BILL 3280

2    AMENDMENT NO. ______. Amend Senate Bill 3280 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Oil and Gas Act is amended by
5adding Section 6.8 as follows:
 
6    (225 ILCS 725/6.8 new)
7    Sec. 6.8. Extraction of hydrocarbons from shale using
8hydraulic fracturing.
9    (a) The Department, by rule, shall:
10        (1) require an operator of a well on which a hydraulic
11    fracturing treatment is performed to:
12            (A) complete the form posted on the hydraulic
13        fracturing chemical registry Internet website of the
14        Ground Water Protection Council and the Interstate Oil
15        and Gas Compact Commission with regard to the well;
16            (B) include in the form completed under

 

 

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1        subparagraph (A):
2                (i) the total volume of water used in the
3            hydraulic fracturing treatment; and
4                (ii) each chemical ingredient that is subject
5            to the requirements of 29 C.F.R. 1910.1200(g)(2),
6            as provided by a service company, chemical
7            supplier, or by the operator, if the operator
8            provides its own chemical ingredients;
9            (C) post the completed form described by
10        subparagraph (A) on the website described by that
11        subparagraph or, if the website is discontinued or
12        permanently inoperable, post the completed form on
13        another publicly accessible Internet website specified
14        by the Department;
15            (D) submit the completed form described by
16        subparagraph (A) to the Department with the well
17        completion report for the well; and
18            (E) in addition to the completed form specified in
19        subparagraph (D), provide to the Department a list, to
20        be made available on the Internet website of the Ground
21        Water Protection Council and the Interstate Oil and Gas
22        Compact Commission or, if necessary, another publicly
23        accessible website, of all other chemical ingredients
24        not listed on the completed form that were
25        intentionally included and used for the purpose of
26        creating a hydraulic fracturing treatment for the

 

 

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1        well; the Department, by rule, shall ensure that an
2        operator, service company, or supplier is not
3        responsible for disclosing ingredients that:
4                (i) were not purposely added to the hydraulic
5            fracturing treatment;
6                (ii) occur incidentally or are otherwise
7            unintentionally present in the treatment; or
8                (iii) in the case of the operator, are not
9            disclosed to the operator by a service company or
10            supplier; the rule shall not require that the
11            ingredients be identified based on the additive in
12            which they are found or that the concentration of
13            such ingredients be provided;
14        (2) require a service company that performs a hydraulic
15    fracturing treatment on a well or a supplier of an additive
16    used in a hydraulic fracturing treatment on a well to
17    provide the operator of the well with the information
18    necessary for the operator to comply with paragraph (1);
19        (3) prescribe a process by which an entity required to
20    comply with paragraph (1) or (2) may withhold and declare
21    certain information as a trade secret, including, but not
22    limited to, the Chemical Abstract Service Number and amount
23    of the chemical ingredient used in a hydraulic fracturing
24    treatment;
25        (4) require a person who desires to challenge a claim
26    of entitlement to trade secret protection under paragraph

 

 

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1    (3) to file the challenge not later than the second
2    anniversary of the date the relevant well completion report
3    is filed with the Department;
4        (5) limit the persons who may challenge a claim of
5    entitlement to trade secret protection under paragraph (3)
6    to:
7            (A) a surface fee title owner or his or her
8        agricultural farm tenant who has been directly and
9        substantially affected or aggrieved by the hydraulic
10        fracturing treatment; or
11            (B) a department or agency of this State with
12        jurisdiction over a matter to which the claimed trade
13        secret is relevant;
14        (6) require, in the event of a trade secret challenge,
15    that the Department promptly notify the service company
16    performing the hydraulic fracturing treatment on the
17    relevant well, the supplier of the additive or chemical
18    ingredient for which the trade secret claim is made, or any
19    other owner of the trade secret being challenged and
20    provide the owner an opportunity to substantiate its trade
21    secret claim;
22        (7) prescribe a process, consistent with 29 C.F.R.
23    1910.1200, for an entity described by paragraph (1) or (2)
24    to provide information, including information that is a
25    trade secret as defined by Appendix D to 29 C.F.R.
26    1910.1200, to a health professional or emergency responder

 

 

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1    who needs the information in accordance with subsection (i)
2    of that section of 29 C.F.R. 1910.1200;
3        (8) require, prior to such hydraulic fracturing, the
4    owner or operator to perform a suitable mechanical
5    integrity test of the casing or of the casing-tubing
6    annulus or other mechanical integrity test methods using
7    procedures that are established by administrative rule;
8    and
9        (9) require, during the well stimulation operation,
10    that the owner or operator monitor and record the annulus
11    pressure using procedures that are established by
12    administrative rule.
13    (b) The protection and challenge of trade secrets under
14this Section is governed by subsection (g) of Section 7 of the
15Freedom of Information Act.
16    (c) The owner or operator shall provide information to the
17Department as to the amounts, handling, and, if necessary,
18disposal at an identified appropriate disposal facility, or
19reuse of the well stimulation fluid load recovered during flow
20back, swabbing, or recovery from production facility vessels.
21Storage of the well stimulation fluid load shall be protective
22of an underground source of drinking water by the use of either
23tanks or lined pits.
24    (d) This Section applies only to the extraction of
25hydrocarbons from shale.
26    (e) The Department shall adopt any other rules necessary to

 

 

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1regulate hydraulic fracturing and corollary issues related to
2hydraulic fracturing.".