florida hydraulic fracturing regulatory act - rev 1-2

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    AN ACT Concerning Hydraulic Fracturing Regulation.1

    Be It Enacted by the Legislature of the State of Florida:2

    ARTICLE 1.3

    Section 1. Short title. This Act may be cited as the4

    Florida Hydraulic Fracturing Regulatory Act.5

    Section 2. Definitions. For the purposes of this Act,6

    unless the context otherwise requires:7

    "Aquatic life" means all fish, reptiles, amphibians,8

    crayfish, and mussels.9

    "Aquifer" means a geologic formation, group of formations,10

    or part of a formation that contains sufficient saturated11

    permeable material to yield useful quantities of groundwater to12

    wells, springs or surface water.13

    "Base fluid" means the continuous phase fluid type,14

    including, but not limited to, water used in a hydraulic15

    fracturing operation or an acid stimulation treatment fluid.16

    "BTEX" means benzene, toluene, ethylbenzene, and xylene.17

    "Chemical" means any element, chemical compound, or mixture18

    of elements or compounds that has its own specific name or19

    identity, such as a Chemical Abstracts Service number,20

    regardless of whether the chemical is subject to the21

    requirements of paragraph (2) of subsection (g) of 29 Code of22

    Federal Regulations 1910.1200.23

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    "Chemical Abstracts Service" means the division of the24

    American Chemical Society that is the globally recognized25

    authority for information on chemical substances.26

    "Chemical Abstracts Service number" or "CAS number" means27

    the unique identification number assigned to a chemical by the28

    Chemical Abstracts Service.29

    Class II injection well means wells used to inject fluids30

    associated with the production of oil and natural gas or fluids31

    used to enhance hydrocarbon recovery. Class II injection wells32

    are regulated by the Florida Department of Environmental33

    Protection, Oil and Gas Program.34

    "Completion combustion device" means any ignition device,35

    installed horizontally or vertically, used in exploration and36

    production operations to combust otherwise vented emissions.37

    "Delineation well" means a well drilled in order to38

    determine the boundary of a field or producing reservoir.39

    "Department" means the Florida Department of Environmental40

    Protection.41

    "Diesel" means a substance having any one of the following42

    Chemical Abstracts Service Registry numbers: 68334-30-5; 68476-43

    34-6; 68476-30-2; 68476-31-3; 8008-20-6; or 68410-00-4. "Diesel"44

    includes any additional substances regulated by the United45

    States Environmental Protection Agency as diesel fuel used in46

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    hydraulic fracturing activities under the federal Safe Drinking47

    Water Act.48

    "Director" means the Director of Florida Department of49

    Environmental Protection or its successor agency or agencies.50

    "Enhanced oil recovery operation" means any secondary or51

    tertiary recovery method used in an effort to recover52

    hydrocarbons from a pool by injection of fluids, gases or other53

    substances to maintain, restore, or augment natural reservoir54

    energy, or by introducing gases, chemicals, other substances, or55

    heat, or by in-situ combustion, or by any combination thereof.56

    EPA means the United States Environmental Protection57

    Agency.58

    "Flare" means a thermal oxidation system using an open,59

    enclosed, or semi-enclosed flame. "Flare" does not include60

    completion combustion devices as defined in this Section.61

    "Flowback period" means the process of allowing fluids to62

    flow from a well following a treatment, either in preparation63

    for a subsequent phase of treatment or in preparation for64

    cleanup and returning the well to production. "Flowback period"65

    begins when the material the hydraulic fracturing fluid returns66

    to the surface following hydraulic fracturing or re-fracturing.67

    "Flowback period" ends with either well shut in or when the well68

    is producing continuously to the flow line or to a storage69

    vessel for collection, whichever occurs first.70

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    "Fresh water" means surface and subsurface water in its71

    natural state that is suitable for drinking water for human72

    consumption, domestic livestock, irrigation, industrial,73

    municipal and recreational purposes, that is capable of74

    supporting aquatic life, and contains less than 10,000 ppm total75

    dissolved solids.76

    "Gas" has the same meaning as provided in s. 377.19,77

    Florida Statutes.78

    "Groundwater" means any water below the land surface that79

    is within the saturated zone or geologic materials where the80

    fluid pressure in the pore space is equal to or greater than81

    atmospheric pressure.82

    "Health professional" means a physician, physician83

    assistant, nurse practitioner, a registered professional nurse,84

    emergency medical technician, or other individual appropriately85

    licensed or registered to provide health care services.86

    "Horizontal well" has the same meaning as provided in s.87

    377.19, Florida Statutes.88

    "Hydraulic fracturing additive" means any chemical89

    substance or combination of chemicals, including, but is not90

    limited to, an acid stimulation treatment fluid or any chemical91

    or proppant that is added to a base fluid for the purposes of92

    preparing a hydraulic fracturing fluid for a hydraulic93

    fracturing operation.94

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    "Hydraulic fracturing flowback" means all hydraulic95

    fracturing fluid and other fluids that return to the surface96

    after a stage of hydraulic fracturing operations has been97

    completed and prior to the well being placed in production.98

    "Hydraulic fracturing fluid" means the mixture of the base99

    fluid and all the hydraulic fracturing additives, used to100

    perform hydraulic fracturing.101

    "Hydraulic fracturing operations" means all stages of a102

    stimulation treatment of a horizontal or vertical well as103

    defined in this Act by the pressurized application of more than104

    60,000 gallons per stage of fluid and proppant to initiate or105

    propagate fractures in a geologic formation to enhance106

    extraction or production of oil or gas. Hydraulic fracturing107

    operations shall also mean well stimulation that uses, in whole108

    or in part, the application of one or more acids to the well or109

    underground geologic formation or may be used in combination110

    with hydraulic fracturing treatments or other well stimulation111

    treatments.112

    "Hydraulic fracturing permit" means the permit issued by113

    the Department under this Act allowing hydraulic fracturing114

    operations to occur at a well site.115

    "Hydraulic fracturing string" means any pipe or casing116

    string used for the transport of hydraulic fracturing fluids117

    during the conduct of the hydraulic fracturing operations.118

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    "Hydraulic fracturing treatment" shall have the same119

    definition as "hydraulic fracturing operations".120

    "Intake" means a pipe or other means to withdraw raw water121

    from a water source.122

    "Landowner" means the legal title holder or owner of real123

    property and includes an owner of an undivided interest, a life124

    tenant, a remainderman, a public or private corporation, a125

    trustee under an active trust, and the holder of the beneficial126

    interest under a land trust. "Landowner" does not include a127

    mortgagee, a trustee under a trust deed in the nature of a128

    mortgage, a lien holder, or a lessee.129

    "Low pressure well" means a well with reservoir pressure130

    and vertical well depth such that 0.445 times the reservoir131

    pressure (in psia) minus 0.038 times the vertical well depth (in132

    feet) minus 67.578 psia is less than the flow line pressure at133

    the sales meter.134

    Multilevel system well means a monitoring device135

    consisting of packers placed at different vertical depths along136

    a single casing string to monitor subsurface groundwater.137

    "Nature preserve" means an area of land that is protected138

    and managed in order to preserve a particular type of habitat139

    and its flora and fauna which are often rare and endangered140

    species.141

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    Nested Well means two or more wells installed at142

    different vertical depths in one borehole.143

    "Oil" has the same meaning as provided in s. 377.19,144

    Florida Statutes.145

    "Operator" means the entity who:146

    (a)

    Has the right to drill and to produce a well147

    under this Act; and148

    (b)

    Injects or is engaged in the work of preparing to149

    inject hydraulic fracturing fluid.150

    "Owner" has the same meaning as provided in s. 377.19,151

    Florida Statutes.152

    "Perennial stream" means a stream that has continuous flow153

    in its stream bed during all of the calendar year.154

    "Permit" means a hydraulic fracturing permit.155

    "Permittee" means a person holding a hydraulic fracturing156

    permit under this Act.157

    "Person" has the same meaning as provided in s. 377.19,158

    Florida Statutes.159

    "Pollution, contamination, or diminution" means the160

    presence in or introduction into the environment of a substance161

    or thing that has any harmful or poisonous effects.162

    "Produced water" means water, regardless of chloride and163

    total dissolved solids content, that is produced in conjunction164

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    with oil or natural gas production or natural gas storage165

    operations, but does not include hydraulic fracturing flowback.166

    "Proppant" means sand or any natural or man-made material167

    that is used during hydraulic fracturing operations to prop open168

    the artificially created or enhanced fractures.169

    "Public water supply" means all mains, pipes, and170

    structures through which water is obtained and distributed to171

    the public, including aquifers, wells and well structures,172

    intakes and cribs, pumping stations, treatment plants,173

    reservoirs, and storage tanks and appurtenances, collectively or174

    severally, actually used or intended for use for the purpose of175

    furnishing water for drinking or general domestic use, and which176

    serves at least 10 service connections or which regularly serves177

    at least 20 persons at least 60 days per year..178

    "Release" means any spilling, leaking, pumping, pouring,179

    emitting, emptying, discharging, injecting, escaping, leaching,180

    dumping, or disposing into the environment.181

    "Serious violation" means any violation that goes against182

    what was allowed by permit and any other materials or183

    instructions given by the Department.184

    "Service connection" means the opening, including all185

    fittings and appurtenances, at the water main through which186

    water is supplied to the user.187

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    "Surface water" means all water that is open to the188

    atmosphere and subject to surface runoff.189

    "Total water volume" means the total quantity of water from190

    all sources used in the hydraulic fracturing operations,191

    including surface water, groundwater, produced water, or192

    recycled water.193

    "Water pollution" means any alteration of the physical,194

    thermal, chemical, biological, or radioactive properties of any195

    waters of the State, or the discharge of any contaminant into196

    any water of the State, as will or is likely to create a197

    nuisance or render the waters harmful, detrimental, or injurious198

    to public health, safety, or welfare, or to domestic,199

    commercial, industrial, agricultural, recreational, or other200

    legitimate uses, or to livestock, wildlife or other aquatic201

    life.202

    "Water source" means:203

    (1) any existing water well or developed spring used204

    for human or domestic animal consumption, or;205

    (2) any river, perennial stream, aquifer, natural or206

    artificial lake, pond, wetland or reservoir.207

    "Well" means any drill hole required to be permitted under208

    ss. 377.01-377.43, Florida Statutes.209

    "Well site" means surface areas, including the well,210

    occupied by all equipment or facilities necessary for or211

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    incidental to hydraulic fracturing operations, drilling,212

    production, or plugging a well.213

    Well stimulation fluid means a base fluid mixed with214

    physical and chemical additives, which may include acid for the215

    purpose of a well stimulation treatment. A well stimulation216

    treatment may include more than one well stimulation treatment217

    fluid. Well stimulation treatment fluids include, but are not218

    limited to, hydraulic fracturing fluids and acid stimulation219

    treatment fluids.220

    "Wildcat well" means a well outside known fields or the221

    first well drilled in an oil or gas field where no other oil and222

    gas production exists.223

    "Wildlife" means any member of the animal kingdom,224

    including without limitation any mammal, fish, bird (including225

    any migratory, nonmigratory, or endangered bird), amphibian,226

    reptile, mollusk, crustacean, arthropod or other invertebrate,227

    and includes any part, product, egg, or offspring thereof any228

    bird or mammal that are by nature wild by way of distinction229

    from those that are naturally tame and are ordinarily living230

    unconfined in a state of nature without the care of man.231

    Section 3. Intergovernmental cooperation. The Department232

    shall have the primary authority to administer the provisions of233

    this Act. The Florida Fish and Wildlife Conservation Commission,234

    and the Office of the State Fire Marshal shall be advised of235

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    hydraulic fracturing permit applications received by the236

    Department and lend assistance as required by the provisions of237

    this Act.238

    Section 4. Powers and duties.239

    (a) Except as otherwise provided, the Department shall240

    enforce this Act and all rules and orders adopted in accordance241

    with this Act.242

    (b) Except as otherwise provided, the Department shall243

    have jurisdiction and authority over all persons and property244

    necessary to enforce the provisions of this Act effectively. In245

    aid of this jurisdiction, the Director, or anyone designated in246

    writing by the Director, shall have the authority to administer247

    oaths and to issue subpoenas for the production of records or248

    other documents and for the attendance of witnesses at any249

    proceedings of the Department.250

    (c) The Department may authorize any employee of the251

    Department, qualified by training and experience, to perform the252

    powers and duties set forth in this Act.253

    (d) For the purpose of determining compliance with the254

    provisions of this Act and any orders or rules entered or255

    adopted under this Act, the Department shall have the right at256

    all times to go upon and inspect properties where hydraulic257

    fracturing operations are being or have been conducted.258

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    (e) The Department shall make any inquiries as it may deem259

    proper to determine whether a violation of this Act or any260

    orders or rules entered or adopted under this Act exists or is261

    imminent. In the exercise of these powers, the Department shall262

    have the authority to collect data; require testing and263

    sampling; to make investigation and inspections; to examine264

    properties, including records and logs; to examine, check, and265

    test hydrocarbon wells; to hold hearings; to adopt266

    administrative rules; and to take any action as may be267

    reasonably necessary to enforce this Act.268

    (f) Except as otherwise provided, the Department may269

    specify the manner in which all information required to be270

    submitted under this Act is submitted.271

    Section 5. Applicability. This Act applies to all wells272

    where hydraulic fracturing operations are planned, have273

    occurred, or are occurring in this State. The provisions of this274

    Act shall be in addition to the provisions of ss. 377.01-377.43,275

    Florida Statutes. However, if there is a conflict, the276

    provisions of ss. 377.01-377.43, Florida Statutes are superseded277

    by this Act. Nothing in this Act restricts local government278

    entities and regional government entities, as those terms are279

    defined in s. 164.1031, Florida Statute, from enacting stricter280

    ordinances, rules or regulations for hydraulic fracturing281

    operations or completely banning the operations.282

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    Section 6. Setbacks and prohibitions.283

    (a) Except as provided in subsection (b) of this Section,284

    no well site where hydraulic fracturing operations are proposed,285

    planned, or occurring may be located as follows:286

    (1) within 500 feet measured horizontally from any287

    residence or place of worship unless the owner of the residence288

    or the governing body of the place of worship otherwise289

    expressly agrees in writing to a closer well location;290

    (2) within 500 feet measured horizontally from the291

    edge of the property line from any school, hospital, or licensed292

    nursing home facility;293

    (3) within 500 feet measured horizontally from the294

    surface location of any existing water well or developed spring295

    used for human or domestic animal consumption, unless the owner296

    or owners of the well or developed spring otherwise expressly297

    agrees or agree in writing to a closer well location;298

    (4) within 300 feet measured horizontally from the299

    center of a perennial stream or from the ordinary high water300

    mark of any river, natural or artificial lake, pond, or301

    reservoir;302

    (5) within 5,280 feet of a nature preserve, wildlife303

    preserve, site designated for endangered species or state of304

    federal park;305

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    (6) within 1,500 feet of a surface water or306

    groundwater intake of a public water supply; the distance from307

    the public water supply as identified by the Department shall be308

    measured as follows:309

    (A) For a surface water intake on a lake or310

    reservoir, the distance shall be measured from the intake point311

    on the lake or reservoir.312

    (B) For a surface water intake on a flowing313

    stream, the distance shall be measured from a semicircular314

    radius extending upstream of the surface water intake.315

    (C) For a groundwater source, the distance shall be316

    measured from the surface location of the wellhead or the317

    ordinary high water mark of the spring.318

    The distance restrictions under this subsection (a) shall319

    be determined as conditions exist at the time of the submission320

    of the permit application under this Act and, unless specified321

    otherwise, all distances shall be measured from the closest edge322

    of the well site..323

    (b) Notwithstanding any other provision of this Section,324

    the owner of a water source identified in paragraph (4) of325

    subsection (a) of this Section that is wholly contained within326

    the owner's property may expressly agree in writing to a closer327

    well location.328

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    (c) It is unlawful to inject or discharge hydraulic329

    fracturing fluid, produced water, BTEX, diesel, or petroleum330

    distillates into fresh water.331

    (d) It is unlawful to perform any hydraulic fracturing332

    operations by knowingly or recklessly injecting diesel.333

    Section 7. Hydraulic fracturing permit required.334

    (a) Notwithstanding any other provision of law, a person335

    may not drill, deepen, or convert a horizontal well where336

    hydraulic fracturing operations are planned or occurring or337

    convert a vertical well into a horizontal well where hydraulic338

    fracturing operations are planned in this State, unless the339

    person has been issued a permit by the Department under this Act340

    and has obtained all applicable authorizations required by ss.341

    377.01-377.43, Florida Statutes.342

    (b) If multiple wells are to be stimulated using hydraulic343

    fracturing operations from a single well site, then a separate344

    permit shall be obtained for each well at the site.345

    Section 8. Hydraulic fracturing permit application.346

    (a) Every applicant for a permit under this Act shall first347

    register with the Department at least 30 days before applying348

    for a permit. The Department shall make available a registration349

    form within 90 days after the effective date of this Act. The350

    registration form shall require the following information:351

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    (1) the name and address of the registrant and any352

    parent, subsidiary, or affiliate thereof;353

    (2) disclosure of all findings of a serious violation354

    or an equivalent violation under federal or state laws or355

    regulations in the development or operation of an oil or gas356

    exploration or production site via hydraulic fracturing by the357

    applicant or any parent, subsidiary, or affiliate thereof within358

    the previous 5 years; and359

    (3) proof of insurance to cover injuries, damages, or360

    loss related to pollution or diminution in the amount of at361

    least $5,000,000, from an insurance carrier authorized,362

    licensed, or permitted to do this insurance business in this363

    State.364

    A registrant must notify the Department of any change in365

    the information identified in paragraphs (1), (2), or (3) of366

    this subsection (a) at least every six months or upon request of367

    the Department.368

    (b) Every applicant for a permit under this Act must submit369

    the following information to the Department on an application370

    form provided by the Department:371

    (1) the name and address of the applicant and any372

    parent, subsidiary, or affiliate thereof;373

    (2) the proposed well name and address and legal374

    description of the well site and its unit area;375

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    (3) a statement whether the proposed location of the376

    well site is in compliance with the requirements of Section 6 of377

    this Act and a plat, which shows the proposed surface location378

    of the well site, providing the distance in feet, from the379

    surface location of the well site to the features described in380

    subsection (a) of Section 6 of this Act;381

    (4) a detailed description of the proposed well to be382

    used for the hydraulic fracturing operations including, but not383

    limited to, the following information:384

    (A) the approximate total depth to which the385

    well is to be drilled or deepened;386

    (B) the proposed angle and direction of the387

    well;388

    (C) the actual depth or the approximate depth at389

    which the well to be drilled deviates from vertical;390

    (D) the angle and direction of any non-vertical391

    portion of the wellbore until the well reaches its total target392

    depth or its actual final depth; and393

    (E) the estimated length and direction of the394

    proposed horizontal lateral or wellbore;395

    (5) the estimated depth and elevation, for the396

    location of the well, of the lowest potential fresh water along397

    the entire length of the proposed wellbore;398

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    (6) a detailed description of the proposed hydraulic399

    fracturing operations, including, but not limited to, the400

    following:401

    (A) the formation affected by the hydraulic402

    fracturing operations, including, but not limited to, geologic403

    name and geologic description of the formation that will be404

    stimulated by the operation;405

    (B) the anticipated surface treating pressure406

    range;407

    (C) the maximum anticipated injection treating408

    pressure;409

    (D) the estimated or calculated fracture410

    pressure of the producing and confining zones; and411

    (E) the planned depth of all proposed412

    perforations or depth to the top of the open hole section;413

    (7) plat showing all known previous well bores within414

    750 feet of any part of the horizontal well bore that penetrated415

    within 400 vertical feet of the formation that will be416

    stimulated as part of the hydraulic fracturing operations;417

    (8) unless the applicant documents why the information418

    is not available at the time the application is submitted, a419

    chemical disclosure report identifying each chemical and420

    proppant anticipated to be used in hydraulic fracturing fluid421

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    for each stage of the hydraulic fracturing operations including422

    the following:423

    (A) the total volume of water anticipated to be424

    used in the hydraulic fracturing treatment of the well and the425

    type and total volume of the base fluid anticipated to be used426

    in the hydraulic fracturing treatment, if something other than427

    water;428

    (B) each hydraulic fracturing additive429

    anticipated to be used in the hydraulic fracturing fluid,430

    including the trade name, vendor, a detailed description of the431

    intended use or function of each hydraulic fracturing additive,432

    and the Material Safety Data Sheet (MSDS), if applicable;433

    (C) each chemical anticipated to be434

    intentionally added to the base fluid, including for each435

    chemical, the Chemical Abstracts Service number, if applicable;436

    and437

    (D) the anticipated concentration in the base438

    fluid, in percent by mass, of each chemical to be intentionally439

    added to the base fluid;440

    (9) a fresh water withdrawal and management plan that441

    shall include the following information:442

    (A) the source of the water, such as surface or443

    groundwater, anticipated to be used for water withdrawals, and444

    the anticipated withdrawal location;445

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    (B) the anticipated volume and rate of each446

    water withdrawal from each withdrawal location;447

    (C) the anticipated months when water448

    withdrawals shall be made from each withdrawal location;449

    (D) the methods to be used to minimize water450

    withdrawals as much as feasible; and451

    (E) the methods to be used for surface water452

    withdrawals to minimize adverse impact to aquatic life.453

    Where a surface water source is wholly contained within a454

    single property, and the owner of the property expressly agrees455

    in writing to its use for water withdrawals, the applicant is456

    not required to include this surface water source in the fresh457

    water withdrawal and management plan.458

    (10) a plan for the handling, storage, transportation,459

    and disposal or reuse of hydraulic fracturing fluids and460

    hydraulic fracturing flowback. The plan shall identify the461

    specific Class II injection well or wells that will be used to462

    dispose of the hydraulic fracturing flowback. The plan shall463

    describe the capacity of the tanks to be used for the capture464

    and storage of flowback and of the lined reserve pit to be used,465

    if necessary, to temporarily store any flowback in excess of the466

    capacity of the tanks. Identification of the Class II injection467

    well or wells shall be by name, identification number, and468

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    specific location and shall include the date of the most recent469

    mechanical integrity test for each Class II injection well;470

    (11) a well site safety plan to address proper safety471

    measures to be employed during hydraulic fracturing operations472

    for the protection of persons on the site as well as the general473

    public. Within 15 calendar days after submitting the permit474

    application to the Department, the applicant must provide a copy475

    of the plan to the county or counties in which hydraulic476

    fracturing operations will occur. Within 5 calendar days of its477

    receipt, the Department shall provide a copy of the well site478

    safety plan to the Office of the State Fire Marshal;479

    (12) a containment plan describing the containment480

    practices and equipment to be used and the area of the well site481

    where containment systems will be employed, and within 5482

    calendar days of its receipt, the Department shall provide a483

    copy of the containment plan to the Office of the State Fire484

    Marshal;485

    (13) a casing and cementing plan that describes the486

    casing and cementing practices to be employed, including the487

    size of each string of pipe, the starting point, and depth to488

    which each string is to be set and the extent to which each489

    string is to be cemented;490

    (14) a traffic management plan that identifies the491

    anticipated roads, streets, and highways that will be used for492

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    access to and egress from the well site. The traffic management493

    plan will include a point of contact to discuss issues related494

    to traffic management. Within 15 calendar days after submitting495

    the permit application to the Department, the applicant must496

    provide a copy of the traffic management plan to the county or497

    counties in which the well site is located, and within 5498

    calendar days of its receipt, the Department shall provide a499

    copy of the traffic management plan to the Office of the State500

    Fire Marshal;501

    (15) the names and addresses of all owners of any real502

    property within 1,500 feet of the proposed well site, as503

    disclosed by the records in the office of the recorder of the504

    county or counties;505

    (16) drafts of the specific public notice and general506

    public notice as required by Section 9 of this Act;507

    (17) statement that the well site at which the508

    hydraulic fracturing operation will be conducted will be509

    restored in compliance with ss. 377.01-377.43, Florida Statutes510

    and Section 25 of this Act;511

    (18) proof of insurance to cover injuries, damages, or512

    loss related to pollution in the amount of at least $5,000,000;513

    and514

    (19) any other relevant information which the515

    Department may, by rule, require.516

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    (c) Where an application is made to conduct hydraulic517

    fracturing operations at a well site located within the limits518

    of any county, city, village, or incorporated town, the519

    application shall state the name of the county, city, village,520

    or incorporated town and be accompanied with a certified copy of521

    the official consent for the hydraulic fracturing operations to522

    occur from the municipal authorities where the well site is523

    proposed to be located. No permit shall be issued unless consent524

    is secured and filed with the permit application that is525

    delivered to the Department. In the event that an amended526

    location is selected, the original permit shall not be valid527

    unless a new certified consent is filed for the amended528

    location.529

    (d) The hydraulic fracturing permit application shall be530

    accompanied by a bond as required by subsection (a) of Section531

    15 of this Act.532

    (e) Each application for a permit under this Act shall533

    include payment of a non-refundable fee of $10,000. The fee534

    shall be deposited into the Hydraulic Fracturing Fund for the535

    Department to use to administer and enforce this Act. The536

    Department shall not initiate its review of the permit537

    application until the applicable fee under this subsection (e)538

    has been submitted to and received by the Department.539

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    (f) Each application submitted under this Act shall be540

    signed, under the penalty of perjury, by the applicant or the541

    applicant's designee who has been vested with the authority to542

    act on behalf of the applicant and has direct knowledge of the543

    information contained in the application and its attachments.544

    Any person signing an application shall also sign an affidavit545

    with the following certification:546

    "I certify, under penalty of perjury as provided by law and547

    under penalty of refusal, suspension, or revocation of a548

    hydraulic fracturing permit, that this application and all549

    attachments are true, accurate, and complete to the best of my550

    knowledge."551

    (g) The permit application shall be submitted to the552

    Department in both electronic and hard copy format. The553

    electronic format shall be searchable.554

    (h) The application for a hydraulic fracturing permit may555

    be submitted as a combined permit application with the556

    operator's application to drill on a form as the Department557

    shall prescribe. The combined application must include the558

    information required in this Section. If the operator elects to559

    submit a combined permit application, information required by560

    this Section that is duplicative of information required for an561

    application to drill is only required to be provided once as562

    part of the combined application. The submission of a combined563

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    permit application under this subsection shall not be564

    interpreted to relieve the applicant or the Department from565

    complying with the requirements of this Act or ss. 377.01-566

    377.43, Florida Statutes.567

    (i) Upon receipt of a permit application, the Department568

    shall have no more than 90 calendar days from the date it569

    receives the permit application to approve, with any conditions570

    the Department may find necessary, or reject the application for571

    the hydraulic fracturing permit. The applicant may waive, in572

    writing, the 90-day deadline upon its own initiative or in573

    response to a request by the Department.574

    (j) If at any time during the review period the Department575

    determines that the permit application is not complete under576

    this Act, does not meet the requirements of this Section, or577

    requires additional information, the Department shall notify the578

    applicant in writing of the application's deficiencies and allow579

    the applicant to correct the deficiencies and provide the580

    Department any information requested to complete the581

    application. If the applicant fails to provide adequate582

    supplemental information within the review period, the583

    Department may reject the application.584

    Section 9. Public notice.585

    (a) Within 5 calendar days after the Department's receipt586

    of the hydraulic fracturing application, the Department shall587

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    post notice of its receipt and a copy of the permit application588

    on its website. The notice shall include the dates of the public589

    comment period and directions for interested parties to submit590

    comments.591

    (b) Within 5 calendar days after the Department's receipt592

    of the permit application and notice to the applicant that the593

    hydraulic fracturing permit application was received, the594

    Department shall provide the Office of the State Fire Marshal,595

    and the Florida Fish and Wildlife Conservation Commission with596

    notice of the application.597

    (c) The applicant shall provide the following public598

    notice:599

    (1) Applicants shall mail specific public notice by600

    U.S. Postal Service certified mail, return receipt requested,601

    within 3 calendar days after submittal of the hydraulic602

    fracturing permit application to the Department, to all persons603

    identified as owners of real property within 1,500 feet of the604

    proposed well site, as disclosed by the records in the office of605

    the recorder of the county or counties, and to each municipality606

    and county in which the well site is proposed to be located.607

    (2) Except as otherwise provided in this paragraph608

    (2) of subsection (c), applicants shall provide general public609

    notice by publication, once each week for 2 consecutive weeks,610

    beginning no later than 3 calendar days after submittal of the611

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    hydraulic fracturing permit application to the Department, in a612

    newspaper of general circulation published in each county where613

    the well proposed for hydraulic fracturing operations is614

    proposed to be located. If a well is proposed for hydraulic615

    fracturing operations in a county where there is no daily616

    newspaper of general circulation, applicant shall provide617

    general public notice, by publication, once each week for 2618

    consecutive weeks, in a weekly newspaper of general circulation619

    in that county beginning as soon as the publication schedule of620

    the weekly newspaper permits, but in no case later than 10 days621

    after submittal of the hydraulic fracturing permit application622

    to the Department.623

    (3) The specific and general public notices required624

    under this subsection shall contain the following information:625

    (A) the name and address of the applicant;626

    (B) the date the application for a hydraulic627

    fracturing permit was filed;628

    (C) the dates for the public comment period and629

    a statement that anyone may file written comments about any630

    portion of the applicant's submitted hydraulic fracturing permit631

    application with the Department during the public comment632

    period;633

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    (D) the proposed well name, reference number634

    assigned by the Department, and the address and legal635

    description of the well site and its unit area;636

    (E) a statement that the information filed by637

    the applicant in their application for a hydraulic fracturing638

    permit is available from the Department through its website;639

    (F) the Department's website and the address and640

    telephone number for the Department's Oil and Gas Division;641

    (G) a statement that any person having an642

    interest that is or may be adversely affected, any government643

    agency that is or may be affected, or the county board of a644

    county to be affected under a proposed permit, may file written645

    objections to a permit application and may request a public646

    hearing.647

    (d) After providing the public notice as required under648

    paragraph (2) of subsection (c) of this Section, the applicant649

    shall supplement its permit application by providing the650

    Department with a certification and documentation that the651

    applicant fulfilled the public notice requirements of this652

    Section. The Department shall not issue a permit until the653

    applicant has provided the supplemental material required under654

    this subsection.655

    (e) If multiple applications are submitted at the same656

    time for wells located on the same well site, the applicant may657

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    use one public notice for all applications provided the notice658

    is clear that it pertains to multiple applications and conforms659

    to the requirements of this Section. Notice shall not constitute660

    standing for purposes of requesting a public hearing or for661

    standing to appeal the decision of the Department in accordance662

    with the Administrative Procedure Act.663

    Section 10. Public comment periods.664

    (a) The public comment period shall begin 7 calendar days665

    after the Department's receipt of the permit application and666

    last for 30 calendar days.667

    (b) Where a public hearing is conducted under Section 10668

    of this Act, the Department may provide for an additional public669

    comment period of 15 days as necessary to allow for comments in670

    response to evidence and testimony presented at the hearing. The671

    additional public comment period shall begin on the day after672

    the public hearing.673

    (c) During any public comment period, any person may file674

    written comments to the Department concerning any portion of the675

    permit application and any issue relating to the applicants676

    compliance with the requirements of the Act and any other677

    applicable laws.678

    (d) The Department may request that the applicant respond679

    to any substantive public comments obtained during the public680

    comment period.681

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    Section 11. Hydraulic fracturing permit; hearing.682

    (a) When a permit application is submitted to conduct683

    hydraulic fracturing operations for the first time at a684

    particular well site, any person having an interest that is or685

    may be adversely affected, any government agency that is or may686

    be affected, or the county board of a county to be affected687

    under a proposed permit, may file written objections to the688

    permit application and may request a public hearing during the689

    public comment period established under subsection (a) of690

    Section 9 of this Act. The request for hearing shall contain a691

    short and plain statement identifying the person and stating692

    facts demonstrating that the person has an interest that is or693

    may be adversely affected. The Department shall hold a public694

    hearing upon a request under this subsection, unless the request695

    is determined by the Department to (i) lack an adequate factual696

    statement that the person is or may be adversely affected or697

    (ii) be frivolous.698

    (b) Prior to the commencement of a public hearing under699

    this Section, any person who could have requested the hearing700

    under subsection (a) of this Section may petition the Department701

    to participate in the hearing in the same manner as the party702

    requesting the hearing. The petition shall contain a short and703

    plain statement identifying the petitioner and stating facts704

    demonstrating that the petitioner is a person having an interest705

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    that is or may be adversely affected. The petitioner shall serve706

    the petition upon the Department. Unless the Department707

    determines that the petition is frivolous, or that the708

    petitioner has failed to allege facts in support of an interest709

    that is or may be adversely affected, the petitioner shall be710

    allowed to participate in the hearing in the same manner as the711

    party requesting the hearing.712

    (c) The Department shall establish rules and procedures to713

    determine whether any request for a public hearing may be714

    granted in accordance with subsection (a) of this Section, and715

    for the notice and conduct of the public hearing. These716

    procedural rules shall include provisions for reasonable notice717

    to (i) the public and (ii) all parties to the proceeding, which718

    include the applicant, the persons requesting the hearing, and719

    the persons granted the right to participate in the hearing720

    pursuant to subsection (b) of this Section, for the721

    qualifications, powers, and obligations of the hearing officer,722

    and for reasonable opportunity for all the parties to provide723

    evidence and argument, to respond by oral or written testimony724

    to statements and objections made at the public hearing, and for725

    reasonable cross-examination of witnesses. County boards and the726

    public may present their written objections or recommendations727

    at the public hearing. A complete record of the hearings and all728

    testimony shall be made by the Department and recorded729

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    stenographically or electronically. The complete record shall be730

    maintained and shall be accessible to the public on the731

    Department's website until final release of the applicant's732

    performance bond.733

    (d) At least 10 calendar days before the date of the public734

    hearing, the Department shall publish notice of the public735

    hearing in a newspaper of general circulation published in the736

    county where the proposed well site will be located.737

    Section 12. Hydraulic fracturing permit; determination;738

    judicial review.739

    (a) The Department shall issue a hydraulic fracturing740

    permit, with any conditions the Department may find necessary,741

    only if the record of decision demonstrates that:742

    (1) the well location restrictions of Section 6 of743

    this Act have been satisfied;744

    (2) the application meets the requirements of Section745

    8 of this Act;746

    (3) the plans required to be submitted with the747

    application under Section 8 of this Act are adequate and748

    effective;749

    (4) the proposed hydraulic fracturing operations will750

    be conducted in a manner that will protect the public health and751

    safety and prevent pollution or diminution of any water source;752

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    (5) the work plan required under Section 19 of this753

    Act has been submitted to the Department;754

    (6) the applicant or any parent, subsidiary, or755

    affiliate thereof has not failed to abate a violation of this756

    Act or the ss. 377.01-377.43, Florida Statutes;757

    (7) the Class II injection wells to be used for758

    disposal of hydraulic fracturing flowback comply with all759

    applicable requirements for mechanical integrity testing,760

    including that the well has been tested within the previous 5761

    years; and762

    (8) there is no good cause to deny the permit under763

    subsection (a) of Section 14 of this Act.764

    (b) For the purpose of determining whether to issue a765

    permit, the Department shall consider and the Department's766

    record of decision shall include:767

    (1) the application for the hydraulic fracturing768

    permit, including all documentation required by Section 8 of769

    this Act;770

    (2) all written comments received during the public771

    comment periods and, if applicable, the complete record from the772

    public hearing held under Section 11 of this Act;773

    (3) all information provided by the applicant in774

    response to any public comments; and775

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    (4) any information known to the Department as the776

    public entity responsible for regulating hydraulic fracturing777

    operations, including, but not limited to, inspections of the778

    proposed well site as necessary to ensure adequate review of the779

    application.780

    (c) The Department shall, by U.S. Mail and electronic781

    transmission, provide the applicant with a copy of the hydraulic782

    fracturing permit as issued or its final administrative decision783

    denying the permit to the applicant and shall, by U.S. Mail or784

    electronic transmission, provide a copy of the permit as issued785

    or the final administrative decision to any person or unit of786

    local government who received specific public notice under787

    Section 8 of this Act or submitted comments or participated in788

    any public hearing under Section 10 of this Act.789

    (d) The Department's decision to approve or deny a790

    hydraulic fracturing permit shall be considered a final791

    administrative decision subject to judicial review under the792

    Administrative Procedure Act and the rules adopted under that793

    Law.794

    (e) Following completion of the Department's review and795

    approval process, the Department's website shall indicate796

    whether an individual hydraulic fracturing permit was approved797

    or denied and provide a copy of the approval or denial.798

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    Section 13. Hydraulic fracturing permit; conditions;799

    restriction; modifications.800

    (a) Each permit issued by the Department under this Act801

    shall require the permittee to comply with all provisions of802

    this Act and all other applicable local, State, and federal803

    laws, rules, and regulations in effect at the time the permit is804

    issued. All plans submitted with the application under Section 8805

    shall be conditions of the permit.806

    (b) A permit issued under this Act shall continue in807

    effect until plugging and restoration in compliance with this808

    Act and ss. 377.01-377.43, Florida Statutes are completed to the809

    Department's satisfaction. No permit may be transferred to810

    another person without approval of the Department.811

    (c) No permit issued under this Act may be modified812

    without approval of the Department. If the Department determines813

    that the proposed modifications constitute a significant814

    deviation from the terms of the original application and permit815

    approval, or presents a serious risk to public health, life,816

    property, aquatic life, or wildlife, the Department shall817

    provide the opportunities for notice, comment, and hearing818

    required under Sections 10 and 11 of this Act. The Department819

    shall provide notice of the proposed modification and820

    opportunity for comment and hearing to the persons who received821

    specific public notice under Section 9 of this Act and shall822

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    publish the notice and the proposed modification on its website.823

    The Department shall adopt rules regarding procedures for a824

    permit modification.825

    Section 14. Hydraulic fracturing permit; denial,826

    suspension, or revocation.827

    (a) The Department may suspend, revoke, or refuse to issue828

    a hydraulic fracturing permit under this Act for one or more of829

    the following causes:830

    (1) providing incorrect, misleading, incomplete, or831

    materially untrue information in a permit application or any832

    document required to be filed with the Department;833

    (2) violating any condition of the permit;834

    (3) violating any provision of or any regulation835

    adopted under this Act or ss. 377.01-377.43, Florida Statutes.;836

    (4) using fraudulent, coercive, or dishonest837

    practices, or demonstrating incompetence, untrustworthiness, or838

    financial irresponsibility in the conduct of business in this839

    State or elsewhere;840

    (5) having a hydraulic fracturing permit, or its841

    equivalent, revoked in any other state, province, district, or842

    territory for incurring a material or major violation or using843

    fraudulent or dishonest practices; or844

    (6) an emergency condition exists under which conduct845

    of the hydraulic fracturing operations would pose a significant846

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    hazard to public health, aquatic life, wildlife, or the847

    environment.848

    (b) In every case in which a permit is suspended or849

    revoked, the Department shall serve notice of its action,850

    including a statement of the reasons for the action, either851

    personally or by certified mail, receipt return requested, to852

    the permittee.853

    (c) The order of suspension or revocation of a permit854

    shall take effect upon issuance of the order. The permittee may855

    request, in writing, within 30 days after the date of receiving856

    the notice, a hearing. Except as provided under subsection (d)857

    of this Section, in the event a hearing is requested, the order858

    shall remain in effect until a final order is entered pursuant859

    to the hearing.860

    (d) The order of suspension or revocation of a permit861

    maybe stayed if requested by the permittee and evidence is862

    submitted demonstrating that there is no significant threat to863

    the public health, aquatic life, wildlife, or the environment if864

    the operation is allowed to continue.865

    (e) The hearing shall be held at a time and place866

    designated by the Department. The Director of the Department or867

    any administrative law judge designated by him or her have the868

    power to administer oaths and affirmations, subpoena witnesses869

    and compel their attendance, take evidence, and require the870

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    production of books, papers, correspondence, and other records871

    or information that he or she considers relevant or material.872

    (f) The costs of the administrative hearing shall be set873

    by rule and shall be borne by the permittee.874

    (g) The Department's decision to suspend or revoke a875

    hydraulic fracturing permit is subject to judicial review under876

    the Administrative Procedure Act.877

    Section 15. Hydraulic fracturing permit; bonds.878

    (a) An applicant for a hydraulic fracturing permit under879

    this Act shall provide a bond, executed by a surety authorized880

    to transact business in this State. The bond shall be in the881

    amount of $500,000 per permit. In lieu of a bond, the applicant882

    may provide other collateral securities such as cash,883

    certificates of deposit, or irrevocable letters of credit under884

    the terms and conditions as the Department may provide by rule.885

    The Department shall require a larger or separate bond or886

    security in addition to the single well or security for a887

    particular well or wells where the circumstances indicate that888

    the standard condition and amount would not be sufficient to889

    cover a reasonable estimate of potential liability for damages890

    to persons or property.891

    (b) Liability under the bond shall continue until the well892

    has been properly plugged in accordance with this act and for a893

    period of one year after filing of the certificate of plugging894

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    with the Department. The bond or other collateral securities895

    shall remain in force until the well is plugged and abandoned.896

    Upon abandoning a well to the satisfaction of the Department and897

    in accordance with ss. 377.01-377.43, Florida Statutes, the bond898

    or other collateral securities shall be promptly released by the899

    Department. Upon the release by the Department of the bond or900

    other collateral securities, any cash or collateral securities901

    deposited shall be returned by the Department to the applicant902

    who deposited it.903

    (c) If, after notice and hearing, the Department904

    determines that any of the requirements of this Act or rules905

    adopted under this Act or the orders of the Department have not906

    been complied with within the time limit set by any notice of907

    violation issued under this Act, the permittee's bond or other908

    collateral securities shall be forfeited. Forfeiture under this909

    subsection shall not limit any duty of the permittee to mitigate910

    or remediate harms or foreclose enforcement by the Department.911

    In no way will payment under this bond exceed the aggregate912

    penalty as specified.913

    (d) When any bond or other collateral security is914

    forfeited under the provisions of this Act or rules adopted915

    under this Act, the Department shall collect the forfeiture916

    without delay. The surety shall have 30 days to submit payment917

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    for the bond after receipt of notice by the permittee of the918

    forfeiture.919

    (e) All forfeitures shall be deposited in the Department920

    of Environmental Protection Petroleum Trust Account to be used,921

    as necessary, to mitigate or remediate violations of this Act or922

    rules adopted under this Act.923

    Section 16. Well preparation, construction, and drilling.924

    (a) This Section shall apply to all horizontal wells that925

    are to be completed using hydraulic fracturing operations under926

    a hydraulic fracturing permit. The requirements of this Section927

    shall be in addition to any other laws or rules regarding wells928

    and well sites.929

    (b) Site preparation standards shall be as follows:930

    (1) The access road to the well site must be located931

    as far as practical from occupied structures, places of932

    assembly, and property lines of unleased property.933

    (2) Unless otherwise approved or directed by the934

    Department, all topsoil stripped to facilitate the construction935

    of the well pad and access roads must be stockpiled, stabilized,936

    and remain on site for use in either partial or final937

    reclamation. In the event it is anticipated that the final938

    reclamation shall take place in excess of one year from drilling939

    the well the topsoil may be disposed of in any lawful manner940

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    provided the operator reclaims the site with topsoil of similar941

    characteristics of the topsoil removed.942

    (3) Piping, conveyances, valves, and tanks in contact943

    with hydraulic fracturing fluid, hydraulic fracturing flowback,944

    or produced water must be constructed of materials compatible945

    with the composition of the hydraulic fracturing fluid,946

    hydraulic fracturing flowback, and produced water.947

    (4) The improvement, construction, or repair of a948

    publicly owned highway or roadway, if undertaken by the owner,949

    operator, permittee, or any other private entity, shall be950

    performed using bidding procedures outlined in the Florida951

    Department of Transportation rules governing local roads.952

    (c) Site maintenance standards shall be as follows:953

    (1) Secondary containment is required for all fueling954

    tanks.955

    (2) Fueling tanks shall be subject to Section 6 of956

    this Act.957

    (3) Fueling tank filling operations shall be958

    supervised at the fueling truck and at the tank if the tank is959

    not visible to the fueling operator from the truck.960

    (4) Troughs, drip pads, or drip pans are required961

    beneath the fill port of a fueling tank during filling962

    operations if the fill port is not within the secondary963

    containment required by paragraph (1) of this subsection.964

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    (d) All wells shall be constructed, and casing and965

    cementing activities shall be conducted, in a manner that shall966

    provide for control of the well at all times, prevent the967

    migration of oil, gas, and other fluids into the fresh water and968

    coal seams, and prevent pollution or diminution of fresh water.969

    In addition to any of the Department's casing and cementing970

    requirements, the following shall apply:971

    (1) All casings must conform to the current industry972

    standards published by the American Petroleum Institute.973

    (2) Casing thread compound and its use must conform974

    to the current industry standards published by the American975

    Petroleum Institute.976

    (3) Surface casing shall be centralized at the shoe,977

    above and below a stage collar or diverting tool, if run, and978

    through usable-quality water zones. In non-deviated holes, pipe979

    centralization as follows is required: a centralizer shall be980

    placed every fourth joint from the cement shoe to the ground981

    surface or to the bottom of the cellar. All centralizers shall982

    meet specifications in, or equivalent to, API spec 10D,983

    Specification for Bow-Spring Casing Centralizers; API Spec 10984

    TR4, Technical Report on Considerations Regarding Selection of985

    Centralizers for Primary Cementing Operations; and API RP 10D-2,986

    Recommended Practice for Centralizer Placement and Stop Collar987

    Testing. The Department may require additional centralization as988

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    necessary to ensure the integrity of the well design is989

    adequate. All centralizers must conform to the current industry990

    standards published by the American Petroleum Institute.991

    (4) Cement must conform to current industry standards992

    published by the American Petroleum Institute and the cement993

    slurry must be prepared to minimize its free water content in994

    accordance with the current industry standards published by the995

    American Petroleum Institute; the cement must also:996

    (A) secure the casing in the wellbore;997

    (B) isolate and protect fresh groundwater;998

    (C) isolate abnormally pressured zones, lost999

    circulation zones, and any potential flow zones including1000

    hydrocarbon and fluid-bearing zones;1001

    (D) properly control formation pressure and any1002

    pressure from drilling, completion and production;1003

    (E) protect the casing from corrosion and1004

    degradation; and1005

    (F) prevent gas flow in the annulus.1006

    (5) Prior to cementing any casing string, the1007

    borehole must be circulated and conditioned to ensure an1008

    adequate cement bond.1009

    (6) A pre-flush or spacer must be pumped ahead of the1010

    cement.1011

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    (7) The cement must be pumped at a rate and in a flow1012

    regime that inhibits channeling of the cement in the annulus.1013

    (8) Cement compressive strength tests must be1014

    performed on all surface, intermediate, and production casing1015

    strings; after the cement is placed behind the casing, the1016

    operator shall wait on cement to set until the cement achieves a1017

    calculated compressive strength of at least 500 pounds per1018

    square inch, and a minimum of 8 hours before the casing is1019

    disturbed in any way, including installation of a blowout1020

    preventer. The cement shall have a 72-hour compressive strength1021

    of at least 1,200 psi, and the free water separation shall be no1022

    more than 6 milliliters per 250 milliliters of cement, tested in1023

    accordance with current American petroleum Institute standards.1024

    (9) A copy of the cement job log for any cemented1025

    casing string in the well shall be maintained in the well file1026

    and available to the Department upon request.1027

    (10) Surface casing shall be used and set to a depth1028

    of at least 200 feet, or 100 feet below the base of the deepest1029

    fresh water, whichever is deeper, but no more than 200 feet1030

    below the base of the deepest fresh water and prior to1031

    encountering any hydrocarbon-bearing zones. The surface casing1032

    must be run and cemented as soon as practicable after the hole1033

    has been adequately circulated and conditioned.1034

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    (11) The Department must be notified at least 24 hours1035

    prior to surface casing cementing operations. Surface casing1036

    must be fully cemented to the surface with excess cements.1037

    Cementing must be by the pump and plug method with a minimum of1038

    25% excess cement with appropriate lost circulation material,1039

    unless another amount of excess cement is approved by the1040

    Department. If cement returns are not observed at the surface,1041

    the operator must perform remedial actions as appropriate.1042

    (12) Intermediate casing must be installed when1043

    necessary to isolate fresh water not isolated by surface casing1044

    and to seal off potential flow zones, anomalous pressure zones,1045

    lost circulation zones and other drilling hazards.1046

    Intermediate casing must be set to protect fresh water if1047

    surface casing was set above the base of the deepest fresh1048

    water, if additional fresh water was found below the surface1049

    casing shoe, or both. Intermediate casing used to isolate fresh1050

    water must not be used as the production string in the well in1051

    which it is installed, and may not be perforated for purposes of1052

    conducting a hydraulic fracture treatment through it.1053

    When intermediate casing is installed to protect fresh1054

    water, the operator shall set a full string of new intermediate1055

    casing at least 100 feet below the base of the deepest fresh1056

    water and bring cement to the surface. In instances where1057

    intermediate casing was set solely to protect fresh water1058

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    encountered below the surface casing shoe, and cementing to the1059

    surface is technically infeasible, would result in lost1060

    circulation, or both, cement must be brought to a minimum of 6001061

    feet above the shallowest fresh water zone encountered below the1062

    surface casing shoe or to the surface if the fresh water zone is1063

    less than 600 feet from the surface. The location and depths of1064

    any hydrocarbon-bearing zones or fresh water zones that are open1065

    to the wellbore above the casing shoe must be confirmed by1066

    coring, electric logs, or testing and must be reported to the1067

    Department.1068

    In the case that intermediate casing was set for a reason1069

    other than to protect strata that contains fresh water, the1070

    intermediate casing string shall be cemented from the shoe to a1071

    point at least 600 true vertical feet above the shoe. If there1072

    is a hydrocarbon bearing zone capable of producing exposed above1073

    the intermediate casing shoe, the casing shall be cemented from1074

    the shoe to a point at least 600 true vertical feet above the1075

    shallowest hydrocarbon bearing zone or to a point at least 2001076

    feet above the shoe of the next shallower casing string that was1077

    set and cemented in the well (or to the surface if less than 2001078

    feet).1079

    (13) The Department must be notified prior to1080

    intermediate casing cementing operations. Cementing must be by1081

    the pump and plug method with a minimum of 25% excess cement. A1082

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    radial cement bond evaluation log, or other evaluation approved1083

    by the Department, must be run to verify the cement bond on the1084

    intermediate casing. Remedial cementing is required if the1085

    cement bond is not adequate for drilling ahead.1086

    (14) Production casing must be run and fully cemented1087

    to 500 feet above the top perforated zone, if possible. The1088

    Department must be notified at least 24 hours prior to1089

    production casing cementing operations. Cementing must be by the1090

    pump and plug method with a minimum of 25% excess cement.1091

    (15) At any time, the Department, as it deems1092

    necessary, may require installation of an additional cemented1093

    casing string or strings in the well.1094

    (16) After the setting and cementing of a casing1095

    string, except the conductor casing, and prior to further1096

    drilling, the casing string shall be tested with fresh water,1097

    mud, or brine to no less than 0.22 psi per foot of casing string1098

    length or 1,500 psi, whichever is greater but not to exceed 70%1099

    of the minimum internal yield, for at least 30 minutes with less1100

    than a 5% pressure loss, except that any casing string that will1101

    have pressure exerted on it during stimulation of the well shall1102

    be tested to at least the maximum anticipated treatment1103

    pressure. If the pressure declines more than 5% or if there are1104

    other indications of a leak, corrective action shall be taken1105

    before conducting further drilling and hydraulic fracturing1106

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    operations. The operator shall contact the Department's District1107

    Office for any county in which the well is located at least 241108

    hours prior to conducting a pressure test to enable an inspector1109

    to be present when the test is done. A record of the pressure1110

    test must be maintained by the operator and must be submitted to1111

    the Department on a form prescribed by the Department prior to1112

    conducting hydraulic fracturing operations. The actual pressure1113

    must not exceed the test pressure at any time during hydraulic1114

    fracturing operations.1115

    (17) Any hydraulic fracturing string used in the1116

    hydraulic fracturing operations must be either strung into a1117

    production liner or run with a packer set at least 100 feet1118

    below the deepest cement top and must be tested to not less than1119

    the maximum anticipated treating pressure minus the annulus1120

    pressure applied between the hydraulic fracturing string and the1121

    production or immediate casing. The pressure test shall be1122

    considered successful if the pressure applied has been held for1123

    30 minutes with no more than 5% pressure loss. A function-tested1124

    relief valve and diversion line must be installed and used to1125

    divert flow from the hydraulic fracturing string-casing annulus1126

    to a covered watertight steel tank in case of hydraulic1127

    fracturing string failure. The relief valve must be set to limit1128

    the annular pressure to no more than 95% of the working pressure1129

    rating of the casings forming the annulus. The annulus between1130

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    the hydraulic fracturing string and casing must be pressurized1131

    to at least 250 psi and monitored.1132

    (18) After a successful pressure test under paragraph1133

    (16) of this subsection, a formation pressure integrity test1134

    must be conducted below the surface casing and below all1135

    intermediate casing. The operator shall notify the Department's1136

    District Office for any county in which the well is located at1137

    least 24 hours prior to conducting a formation pressure1138

    integrity test to enable an inspector to be present when the1139

    test is done. A record of the pressure test must be maintained1140

    by the operator and must be submitted to the Department on a1141

    form prescribed by the Department prior to conducting hydraulic1142

    fracturing operations. The actual hydraulic fracturing treatment1143

    pressure must not exceed the test pressure at any time during1144

    hydraulic fracturing operations.1145

    (e) Blowout prevention standards shall be set as follows:1146

    (1) The operator shall use blowout prevention1147

    equipment after setting casing with a competent casing seat.1148

    Blowout prevention equipment shall be in good working condition1149

    at all times.1150

    (2) The operator shall use pipe fittings, valves, and1151

    unions placed on or connected to the blow-out prevention systems1152

    that have a working pressure capability that exceeds the1153

    anticipated pressures.1154

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    (3) During all drilling and completion operations1155

    when a blowout preventer is installed, tested, or in use, the1156

    operator or operator's designated representative shall be1157

    present at the well site and that person or personnel shall have1158

    a current well control certification from an accredited training1159

    program that is acceptable to the Department. The certification1160

    shall be available at the well site and provided to the1161

    Department upon request.1162

    (4) Appropriate pressure control procedures and1163

    equipment in proper working order must be properly installed and1164

    employed while conducting drilling and completion operations1165

    including tripping, logging, running casing into the well, and1166

    drilling out solid-core stage plugs.1167

    (5) Pressure testing of the blowout preventer and1168

    related equipment for any drilling or completion operation must1169

    be performed. Testing must be conducted in accordance with1170

    current industry standards published by the American Petroleum1171

    Institute. Testing of the blowout preventer shall include1172

    testing after the blowout preventer is installed on the well but1173

    prior to drilling below the last cemented casing seat. Pressure1174

    control equipment, including the blowout preventer, that fails1175

    any pressure test shall not be used until it is repaired and1176

    passes the pressure test.1177

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    (6) A remote blowout preventer actuator, that is1178

    powered by a source other than rig hydraulics, shall be located1179

    at least 50 feet from the wellhead and have an appropriate rated1180

    working pressure.1181

    Section 17. Hydraulic fracturing operations.1182

    (a) General.1183

    (1) During all phases of hydraulic fracturing1184

    operations, the permittee shall comply with all terms of the1185

    permit.1186

    (2) All phases of hydraulic fracturing operations1187

    shall be conducted in a manner that shall not pose a risk to1188

    public health, life, property, aquatic life, or wildlife.1189

    (3) The permittee shall notify the Department by1190

    phone, electronic communication, or letter, at least 48 hours1191

    prior to the commencement of hydraulic fracturing operations.1192

    (b) Integrity tests and monitoring.1193

    (1) Before the commencement of hydraulic fracturing1194

    operations, all mechanical integrity tests required under1195

    subsection (d) of Section 16 and this subsection must be1196

    successfully completed.1197

    (2) Prior to commencing hydraulic fracturing1198

    operations and pumping of hydraulic fracturing fluid, the1199

    injection lines and manifold, associated valves, fracture head1200

    or tree and any other wellhead component or connection not1201

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    previously tested must be tested with fresh water, mud, or brine1202

    to at least the maximum anticipated treatment pressure for at1203

    least 30 minutes with less than a 5% pressure loss. A record of1204

    the pressure test must be maintained by the operator and made1205

    available to the Department upon request. The actual hydraulic1206

    fracturing treatment pressure must not exceed the test pressure1207

    at any time during hydraulic fracturing operations.1208

    (3) The pressure exerted on treating equipment1209

    including valves, lines, manifolds, hydraulic fracturing head or1210

    tree, casing and hydraulic fracturing string, if used, must not1211

    exceed 95% of the working pressure rating of the weakest1212

    component. Hydraulic fracturing treatment pressure must not1213

    exceed the test pressure of any given component at any time1214

    during hydraulic fracturing operations.1215

    (4) During hydraulic fracturing operations, all1216

    annulus pressures, the injection pressure, and the rate of1217

    injection shall be continuously monitored and recorded. The1218

    records of the monitoring shall be maintained by the operator1219

    and shall be provided to the Department upon request at any time1220

    up to and including 5 years after the well is permanently1221

    plugged or abandoned.1222

    (5) Hydraulic fracturing operations must be1223

    immediately suspended if any anomalous pressure or flow1224

    condition or any other anticipated pressure or flow condition is1225

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    occurring in a way that indicates the mechanical integrity of1226

    the well has been compromised and continued operations pose a1227

    risk to the environment. Remedial action shall be undertaken1228

    immediately prior to re-commencing hydraulic fracturing1229

    operations. The permittee shall notify the Department within 11230

    hour of suspending operations for any matters relating to the1231

    mechanical integrity of the well or risk to the environment.1232

    (c) Fluid and waste management.1233

    (1) For the purposes of storage at the well site and1234

    except as provided in paragraph (2) of this subsection,1235

    hydraulic fracturing additives, hydraulic fracturing fluid,1236

    hydraulic fracturing flowback, and produced water shall be1237

    stored in above-ground tanks during all phases of drilling,1238

    hydraulic fracturing, and production operations until removed1239

    for proper disposal. For the purposes of centralized storage off1240

    site for potential reuse prior to disposal, hydraulic fracturing1241

    additives, hydraulic fracturing fluid, hydraulic fracturing1242

    flowback, and produced water shall be stored in above-ground1243

    tanks.1244

    (2) In accordance with the plan required by Section 81245

    of this Act and as approved by the Department, the use of a1246

    reserve pit is allowed for the temporary storage of hydraulic1247

    fracturing flowback. The reserve pit shall be used only in the1248

    event of a lack of capacity for tank storage due to higher than1249

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    expected volume or rate of hydraulic fracturing flowback, or1250

    other unanticipated flowback occurrence. Any reserve pit must1251

    comply with the following construction standards and liner1252

    specifications:1253

    (A) the synthetic liner material shall have a1254

    minimum thickness of 24 mils with high puncture and tear1255

    strength and be impervious and resistant to deterioration;1256

    (B) the pit lining system shall be designed to1257

    have a capacity at least equivalent to 110% of the maximum1258

    volume of hydraulic fracturing flowback anticipated to be1259

    recovered;1260

    (C) the lined pit shall be constructed,1261

    installed, and maintained in accordance with the manufacturers'1262

    specifications and good engineering practices to prevent1263

    overflow during any use;1264

    (D) the liner shall have sufficient elongation1265

    to cover the bottom and interior sides of the pit with the edges1266

    secured with at least a 12 inch deep anchor trench around the1267

    pit perimeter to prevent any slippage or destruction of the1268

    liner materials; and1269

    (E) the foundation for the liner shall be free1270

    of rock and constructed with soil having a minimum thickness of1271

    12 inches after compaction covering the entire bottom and1272

    interior sides of the pit.1273

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    (3) Fresh water may be stored in tanks or pits at the1274

    election of the operator.1275

    (4) Tanks required under this subsection must be1276

    above-ground tanks that are closed, watertight, and will resist1277

    corrosion. The permittee shall routinely inspect the tanks for1278

    corrosion.1279

    (5) Hydraulic fracturing fluids and hydraulic1280

    fracturing flowback must be removed from the well site within 601281

    days after completion of hydraulic fracturing operations, except1282

    that any excess hydraulic fracturing flowback captured for1283

    temporary storage in a reserve pit as provided in paragraph (2)1284

    of this subsection must be removed from the well site within 71285

    days. Well completion reports shall be submitted within 60 days1286

    after completion of hydraulic fracturing operations.1287

    (6) Tanks, piping, and conveyances, including valves,1288

    must be constructed of suitable materials, be of sufficient1289

    pressure rating, be able to resist corrosion, and be maintained1290

    in a leak-free condition. Fluid transfer operations from tanks1291

    to tanker trucks must be supervised at the truck and at the tank1292

    if the tank is not visible to the truck operator from the truck.1293

    During transfer operations, all interconnecting piping must be1294

    supervised if not visible to transfer personnel at the truck and1295

    tank.1296

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    (7) Hydraulic fracturing flowback must be tested for1297

    volatile organic chemicals, semi-volatile organic chemicals,1298

    inorganic chemicals, heavy metals, and naturally occurring1299

    radioactive material prior to removal from the site. Testing1300

    shall occur once per well site and the analytical results shall1301

    be filed with the Department, and provided to the liquid1302

    oilfield waste transportation and disposal operators. Prior to1303

    plugging and site restoration, the ground adjacent to the1304

    storage tanks and any hydraulic fracturing flowback reserve pit1305

    must be measured for radioactivity and toxicity.1306

    (8) Hydraulic fracturing flowback may only be1307

    disposed of by injection into a Class II injection well that is1308

    below interface between fresh water and naturally occurring1309

    Class IV groundwater. Produced water may be disposed of by1310

    injection in a permitted enhanced oil recovery operation.1311

    Hydraulic fracturing flowback and produced water may be treated1312

    and recycled for use in hydraulic fracturing fluid for hydraulic1313

    fracturing operations at the same site.1314

    (9) Discharge of hydraulic fracturing fluids,1315

    hydraulic fracturing flowback, and produced water into any1316

    surface water or water drainage way is prohibited.1317

    (10) Transport of all hydraulic fracturing fluids,1318

    hydraulic fracturing flowback, and produced water by vehicle for1319

    disposal must be undertaken by a liquid oilfield waste hauler1320

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    permitted by the Department. The liquid oilfield waste hauler1321

    transporting hydraulic fracturing fluids, hydraulic fracturing1322

    flowback, or produced water under this Act shall comply with all1323

    laws, rules, and regulations concerning liquid oilfield waste.1324

    (11) Drill cuttings, drilling fluids, and drilling1325

    wastes not containing oil-based mud or polymer-based mud may be1326

    stored in tanks or pits. Pits used to store cuttings, fluids,1327

    and drilling wastes from wells not using fresh water mud shall1328

    be subject to the construction standards identified in (2) of1329

    this Section. Drill cuttings not contaminated with oil-based mud1330

    or polymer-based mud may be disposed of onsite subject to the1331

    approval of the Department. Drill cuttings contaminated with1332

    oil-based mud or polymer-based mud shall not be disposed of on1333

    site. Annular disposal of drill cuttings or fluid is prohibited.1334

    (12) Any release of