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HB22-1348

Oversight Of Chemicals Used In Oil & Gas

Concerning enhanced oversight of the chemicals used in oil and gas production, and, in connection therewith, making an appropriation.
Session:
2022 Regular Session
Subject:
Natural Resources & Environment
Bill Summary

The bill establishes a regulatory scheme that requires disclosure of certain chemical information for products used in downhole oil and gas operations (chemical disclosure information). On or before July 31, 2023, the oil and gas conservation commission (commission) is required to utilize or develop a chemical disclosure website to collect and share certain chemical disclosure information to the public (chemical disclosure website).

On and after July 31, 2023, a manufacturer that sells or distributes a chemical product operators, service providers, and direct vendors that provide chemical products directly to an operator or service provider at a well site (discloser) for use in underground oil and gas operations (downhole operations) in the state must disclose to the commission:

  • The trade name of the chemical product;
  • A list of the names of each chemical used in the chemical product;
  • The estimated amount of each chemical used in the chemical product; and
  • A description of the intended purpose of the chemical used in the chemical product.

The manufacturer discloser must also provide the commission with a declaration that the chemical product contains no intentionally added perfluoroalkyl or polyfluoroalkyl chemicals.

For manufacturers disclosers that were already selling or distributing a chemical product for use in downhole operations in the state before July 31, 2023, the disclosure and declaration must be made at least 30 days before July 31, 2023. For manufacturers disclosers that begin to sell or distribute a chemical product for use in downhole operations in the state on or after July 31, 2023, the disclosure and declaration must be made at least 30 days before the manufacturer discloser begins selling or distributing the chemical product.If a manufacturer does not provide the disclosure information for a chemical product that it sells or distributes for use in downhole operations in the state to the discloser upon the request of the discloser, the manufacturer must provide the commission with a trade secret form of entitlement for the chemical product. If, after making a request to the manufacturer, the discloser is unable to disclose the disclosure information, the discloser shall disclose to the commission:

  • The name of the chemical product's manufacturer;
  • The chemical product's trade name;
  • The amount or weight of the chemical product; and
  • A safety data sheet for the chemical product.

On and after July 31, 2023, an operator of downhole operations using a chemical product must disclose to the commission:

  • The date of commencement of downhole operations;
  • The county of the well site where downhole operations are being conducted;
  • The numerical identifier assigned by the American Petroleum Institute US well number assigned to the well where downhole operations are being conducted; and
  • The trade names and quantities of any chemical products the operator plans to use used in downhole operations.

The operator must also provide the commission with a declaration that the chemical product contains no intentionally added perfluoroalkyl or polyfluoroalkyl chemicals.

For downhole operations that commenced before July 31, 2023, and that will be ongoing on July 31, 2023, the disclosure and declaration must be made at least 75 days before within 120 days after July 31, 2023. For downhole operations that commence on or after July 31, 2023, the disclosure and declaration must be made at least 75 days before within 120 days after the commencement of downhole operations.

The commission will use the chemical disclosure information to create a chemical disclosure list for each well site, which will include:

  • An alphabetical list of names of chemicals that will be used in downhole operations at the well site; and
  • The total estimated amount of each chemical that will be used at the well site.

The commission will post each chemical disclosure list on the chemical disclosure website. The commission shall provide the chemical disclosure list to the applicable operator within 7 days after the operator's disclosures.

Prior to the commencement of downhole operations, the operator is required to disclose the chemical disclosure list to communities near where downhole operations will be conducted, local public water administrators, and, if there is a high-priority habitat near where downhole operations are being conducted, the division of parks and wildlife. For downhole operations that commenced before July 31, 2023, and that will be ongoing on July 31, 2023, the disclosure of the chemical disclosure list by the operator to these entities must be made at least 60 days before July 31, 2023. For downhole operations that commence on or after July 31, 2023, the disclosure of the chemical disclosure list by the operator to these entities must be made at least 60 days before commencement of downhole operations The disclosure of the chemical disclosure list to these entities must be made within 30 days after the operator's receipt of the chemical disclosure list from the commission.

If a manufacturer believes that any information that will be included on a chemical disclosure list is a trade secret, the manufacturer must file a trade secret claim with the commission. If the commission determines that the information covered by the trade secret claim constitutes a trade secret, the commission shall not include the information in any applicable chemical disclosure list.

On or before July 31, 2023, the commission must promulgate rules that set standards for the disclosure of the chemical disclosure information to:

  • An officer or employee of the United States, the state, or a local government in connection with the officer's or employee's official duties;
  • Contractors of the United States, the state, or a local government if the commission determines that the disclosure is necessary for performance of a contract or the protection of public health and safety;
  • A health-care professional in connection with an emergency or with diagnosing or treating a patient; and
  • In order to protect public safety, a person who is employed in public health or a scientist or researcher employed by an institution of higher education.

No later than February 1, 2025, and no later than February 1 each year thereafter, the commission shall submit and present an annual report to the general assembly based on the chemical disclosure information.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)


(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Status

Introduced
Passed

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