Florida Senate - 2016              PROPOSED COMMITTEE SUBSTITUTE
       Bill No. CS for SB 318
       Proposed Committee Substitute by the Committee on Appropriations
       (Appropriations Subcommittee on General Government)
    1                        A bill to be entitled                      
    2         An act relating to the regulation of oil and gas
    3         resources; amending s. 377.06, F.S.; preempting the
    4         regulation of all matters relating to the exploration,
    5         development, production, processing, storage, and
    6         transportation of oil and gas; declaring ordinances
    7         and regulations relating thereto void; providing an
    8         exception for certain zoning or land use requirements;
    9         ordinances and regulations relating thereto void;
   10         providing an exception for certain zoning ordinances;
   11         amending s. 377.19, F.S.; applying the definitions of
   12         certain terms to additional sections of ch. 377, F.S.;
   13         revising the definition of the term “division”;
   14         conforming a cross-reference; defining the term “high
   15         pressure well stimulation”; amending s. 377.22, F.S.;
   16         revising the rulemaking authority of the Department of
   17         Environmental Protection; amending s. 377.24, F.S.;
   18         requiring that a permit be obtained before the
   19         performance of a high-pressure well stimulation;
   20         specifying that a permit may authorize single or
   21         multiple activities; revising provisions that prohibit
   22         the Division of Water Resource Management from
   23         granting permits to drill gas or oil wells; providing
   24         notice requirements for an application of such permit;
   25         prohibiting the department from approving permits for
   26         high-pressure well stimulation until certain rules are
   27         adopted and take effect; requiring legislative
   28         ratification of such rules; amending s. 377.241, F.S.;
   29         requiring the Division of Water Resource Management to
   30         give consideration to and be guided by certain
   31         additional criteria when issuing permits; amending s.
   32         377.242, F.S.; authorizing the department to issue
   33         permits for the performance of a high-pressure well
   34         stimulation; revising permit requirements that
   35         permitholders agree not to prevent division
   36         inspections; amending s. 377.2425, F.S.; requiring an
   37         applicant or operator to provide surety that
   38         performance of a high-pressure well stimulation will
   39         be conducted in a safe and environmentally compatible
   40         manner; creating s. 377.2436, F.S.; requiring the
   41         department to conduct a study on high-pressure well
   42         stimulation; providing study criteria; requiring the
   43         study to be submitted to the Governor and Legislature
   44         and posted on the department website; prohibiting the
   45         department from adopting rules until the study has
   46         been submitted to the Legislature; requiring the
   47         department to adopt rules under certain conditions by
   48         a specified date; amending s. 377.37, F.S.; increasing
   49         the maximum amount of a civil penalty; creating s.
   50         377.45, F.S.; requiring the department to designate
   51         the national chemical disclosure registry as the
   52         state’s registry; requiring service providers,
   53         vendors, and well owners or operators to report
   54         certain information to the department; requiring the
   55         department to report certain information to the
   56         national chemical registry; providing applicability;
   57         requiring the department to adopt rules; amending ss.
   58         377.07, 377.10, 377.243, and 377.244, F.S.; making
   59         technical changes; conforming provisions to changes
   60         made by the act; providing an appropriation; providing
   61         an effective date.
   63  Be It Enacted by the Legislature of the State of Florida:
   65         Section 1. Section 377.06, Florida Statutes, is amended to
   66  read:
   67         377.06 Public policy of state concerning natural resources
   68  of oil and gas; preemption.—
   69         (1) It is hereby declared the public policy of this state
   70  to conserve and control the natural resources of oil and gas in
   71  this state, and the products made from oil and gas in this
   72  state; to prevent waste of natural resources; to provide for the
   73  protection and adjustment of the correlative rights of the
   74  owners of the land in which the natural resources lie, of the
   75  owners and producers of oil and gas resources and the products
   76  made from oil and gas, and of others interested in these
   77  resources and products; and to safeguard the health, property,
   78  and public welfare of the residents of this state and other
   79  interested persons and for all purposes indicated by the
   80  provisions in this section.
   81         (2)Further, It is the public policy of this state declared
   82  that underground storage of natural gas is in the public
   83  interest because underground storage promotes conservation of
   84  natural gas,; makes gas more readily available to the domestic,
   85  commercial, and industrial consumers of this state,; and allows
   86  the accumulation of large quantities of gas in reserve for
   87  orderly withdrawal during emergencies or periods of peak demand.
   88  It is not the intention of this section to limit, restrict, or
   89  modify in any way the provisions of this law.
   90         (3)The Legislature declares that all matters relating to
   91  the regulation of the exploration, development, production,
   92  processing, storage, and transportation of oil and gas are
   93  preempted to the state, to the exclusion of all existing and
   94  future ordinances or regulations relating thereto adopted by any
   95  county, municipality, or other political subdivision of the
   96  state. All such ordinances or regulations are hereby declared
   97  void as a matter of law, including those that impose a
   98  moratorium or effect a ban on one or more of these activities. A
   99  county or municipality may, however, adopt and enforce zoning or
  100  land use requirements which affect the use of property for the
  101  exploration, development, production, processing, storage or
  102  transportation of oil and gas, with the exception of geophysical
  103  operations pursuant to s. 377.2424(3), so long as such zoning or
  104  land use requirements would not impose a moratorium on,
  105  effectively prohibit, or inordinately burden one or more of
  106  these activities on a subject property.
  107         Section 2. Section 377.19, Florida Statutes, is amended to
  108  read:
  109         377.19 Definitions.—As used in ss. 377.06, 377.07, and
  110  377.10-377.45 377.10-377.40, the term:
  111         (1) “Completion date” means the day, month, and year that a
  112  new productive well, a previously shut-in well, or a temporarily
  113  abandoned well is completed, repaired, or recompleted and the
  114  operator begins producing oil or gas in commercial quantities.
  115         (2) “Department” means the Department of Environmental
  116  Protection.
  117         (3) “Division” means the Division of Water Resource
  118  Management of the Department of Environmental Protection.
  119         (4) “Field” means the general area that is underlaid, or
  120  appears to be underlaid, by at least one pool. The term includes
  121  the underground reservoir, or reservoirs, containing oil or gas,
  122  or both. The terms “field” and “pool” mean the same thing if
  123  only one underground reservoir is involved; however, the term
  124  “field,” unlike the term “pool,” may relate to two or more
  125  pools.
  126         (5) “Gas” means all natural gas, including casinghead gas,
  127  and all other hydrocarbons not defined as oil in subsection (16)
  128  (15).
  129         (6) “High-pressure well stimulation” means all stages of a
  130  well intervention performed by injecting fluids into a rock
  131  formation at high pressure that exceeds the fracture gradient of
  132  the rock formation in order to propagate fractures in such
  133  formation to increase production at an oil or gas well by
  134  improving the flow of hydrocarbons from the formation into the
  135  wellbore. The term does not include well stimulation or
  136  conventional workover procedures that may incidentally fracture
  137  the formation near the wellbore.
  138         (7)(6) “Horizontal well” means a well completed with the
  139  wellbore in a horizontal or nearly horizontal orientation within
  140  10 degrees of horizontal within the producing formation.
  141         (8)(7) “Illegal gas” means gas that has been produced
  142  within the state from any well or wells in excess of the amount
  143  allowed by any rule, regulation, or order of the division, as
  144  distinguished from gas produced within the State of Florida from
  145  a well not producing in excess of the amount so allowed, which
  146  is “legal gas.”
  147         (9)(8) “Illegal oil” means oil that has been produced
  148  within the state from any well or wells in excess of the amount
  149  allowed by rule, regulation, or order of the division, as
  150  distinguished from oil produced within the state from a well not
  151  producing in excess of the amount so allowed, which is “legal
  152  oil.”
  153         (10)(9) “Illegal product” means a product of oil or gas,
  154  any part of which was processed or derived, in whole or in part,
  155  from illegal gas or illegal oil or from any product thereof, as
  156  distinguished from “legal product,” which is a product processed
  157  or derived to no extent from illegal oil or illegal gas.
  158         (11)(10) “Lateral storage reservoir boundary” means the
  159  projection up to the land surface of the maximum horizontal
  160  extent of the gas volume contained in a natural gas storage
  161  reservoir.
  162         (12)(11) “Native gas” means gas that occurs naturally
  163  within this state and does not include gas produced outside the
  164  state, transported to this state, and injected into a permitted
  165  natural gas storage facility.
  166         (13)(12) “Natural gas storage facility” means an
  167  underground reservoir from which oil or gas has previously been
  168  produced and which is used or to be used for the underground
  169  storage of natural gas, and any surface or subsurface structure,
  170  or infrastructure, except wells. The term also includes a right
  171  or appurtenance necessary or useful in the operation of the
  172  facility for the underground storage of natural gas, including
  173  any necessary or reasonable reservoir protective area as
  174  designated for the purpose of ensuring the safe operation of the
  175  storage of natural gas or protecting the natural gas storage
  176  facility from pollution, invasion, escape, or migration of gas,
  177  or any subsequent extension thereof. The term does not mean a
  178  transmission, distribution, or gathering pipeline or system that
  179  is not used primarily as integral piping for a natural gas
  180  storage facility.
  181         (14)(13) “Natural gas storage reservoir” means a pool or
  182  field from which gas or oil has previously been produced and
  183  which is suitable for or capable of being made suitable for the
  184  injection, storage, and recovery of gas, as identified in a
  185  permit application submitted to the department under s.
  186  377.2407.
  187         (15)(14) “New field well” means an oil or gas well
  188  completed after July 1, 1997, in a new field as designated by
  189  the Department of Environmental Protection.
  190         (16)(15) “Oil” means crude petroleum oil and other
  191  hydrocarbons, regardless of gravity, which are produced at the
  192  well in liquid form by ordinary production methods, and which
  193  are not the result of condensation of gas after it leaves the
  194  reservoir.
  195         (17)(16) “Oil and gas” has the same meaning as the term
  196  “oil or gas.”
  197         (18)(17) “Oil and gas administrator” means the State
  198  Geologist.
  199         (19)(18) “Operator” means the entity who:
  200         (a) Has the right to drill and to produce a well; or
  201         (b) As part of a natural gas storage facility, injects, or
  202  is engaged in the work of preparing to inject, gas into a
  203  natural gas storage reservoir; or stores gas in, or removes gas
  204  from, a natural gas storage reservoir.
  205         (20)(19) “Owner” means the person who has the right to
  206  drill into and to produce from any pool and to appropriate the
  207  production for the person or for the person and another, or
  208  others.
  209         (21)(20) “Person” means a natural person, corporation,
  210  association, partnership, receiver, trustee, guardian, executor,
  211  administrator, fiduciary, or representative of any kind.
  212         (22)(21) “Pool” means an underground reservoir containing
  213  or appearing to contain a common accumulation of oil or gas or
  214  both. Each zone of a general structure which is completely
  215  separated from any other zone on the structure is considered a
  216  separate pool as used herein.
  217         (23)(22) “Producer” means the owner or operator of a well
  218  or wells capable of producing oil or gas, or both.
  219         (24)(23) “Product” means a commodity made from oil or gas
  220  and includes refined crude oil, crude tops, topped crude,
  221  processed crude petroleum, residue from crude petroleum,
  222  cracking stock, uncracked fuel oil, fuel oil, treated crude oil,
  223  residuum, gas oil, casinghead gasoline, natural gas gasoline,
  224  naphtha, distillate, condensate, gasoline, waste oil, kerosene,
  225  benzine, wash oil, blended gasoline, lubricating oil, blends or
  226  mixtures of oil with one or more liquid products or byproducts
  227  derived from oil or gas, and blends or mixtures of two or more
  228  liquid products or byproducts derived from oil or gas, whether
  229  hereinabove enumerated or not.
  230         (25)(24) “Reasonable market demand” means the amount of oil
  231  reasonably needed for current consumption, together with a
  232  reasonable amount of oil for storage and working stocks.
  233         (26)(25) “Reservoir protective area” means the area
  234  extending up to and including 2,000 feet surrounding a natural
  235  gas storage reservoir.
  236         (27)(26) “Shut-in bottom hole pressure” means the pressure
  237  at the bottom of a well when all valves are closed and no oil or
  238  gas has been allowed to escape for at least 24 hours.
  239         (28)(27) “Shut-in well” means an oil or gas well that has
  240  been taken out of service for economic reasons or mechanical
  241  repairs.
  242         (29)(28) “State” means the State of Florida.
  243         (30)(29) “Temporarily abandoned well” means a permitted
  244  well or wellbore that has been abandoned by plugging in a manner
  245  that allows reentry and redevelopment in accordance with oil or
  246  gas rules of the Department of Environmental Protection.
  247         (31)(30) “Tender” means a permit or certificate of
  248  clearance for the transportation or the delivery of oil, gas, or
  249  products, approved and issued or registered under the authority
  250  of the division.
  251         (32)(31) “Waste,” in addition to its ordinary meaning,
  252  means “physical waste” as that term is generally understood in
  253  the oil and gas industry. The term “waste” includes:
  254         (a) The inefficient, excessive, or improper use or
  255  dissipation of reservoir energy; and the locating, spacing,
  256  drilling, equipping, operating, or producing of any oil or gas
  257  well or wells in a manner that results, or tends to result, in
  258  reducing the quantity of oil or gas ultimately to be stored or
  259  recovered from any pool in this state.
  260         (b) The inefficient storing of oil; and the locating,
  261  spacing, drilling, equipping, operating, or producing of any oil
  262  or gas well or wells in a manner that causes, or tends to cause,
  263  unnecessary or excessive surface loss or destruction of oil or
  264  gas.
  265         (c) The producing of oil or gas in a manner that causes
  266  unnecessary water channeling or coning.
  267         (d) The operation of any oil well or wells with an
  268  inefficient gas-oil ratio.
  269         (e) The drowning with water of any stratum or part thereof
  270  capable of producing oil or gas.
  271         (f) The underground waste, however caused and whether or
  272  not defined.
  273         (g) The creation of unnecessary fire hazards.
  274         (h) The escape into the open air, from a well producing
  275  both oil and gas, of gas in excess of the amount that is
  276  necessary in the efficient drilling or operation of the well.
  277         (i) The use of gas for the manufacture of carbon black.
  278         (j) Permitting gas produced from a gas well to escape into
  279  the air.
  280         (k) The abuse of the correlative rights and opportunities
  281  of each owner of oil and gas in a common reservoir due to
  282  nonuniform, disproportionate, and unratable withdrawals, causing
  283  undue drainage between tracts of land.
  284         (33)(32) “Well site” means the general area around a well,
  285  which area has been disturbed from its natural or existing
  286  condition, as well as the drilling or production pad, mud and
  287  water circulation pits, and other operation areas necessary to
  288  drill for or produce oil or gas, or to inject gas into and
  289  recover gas from a natural gas storage facility.
  290         Section 3. Subsection (2) of section 377.22, Florida
  291  Statutes, is amended to read:
  292         377.22 Rules and orders.—
  293         (2) The department shall issue orders and adopt rules
  294  pursuant to ss. 120.536 and 120.54 to implement and enforce the
  295  provisions of this chapter. Such rules and orders shall ensure
  296  that all precautions are taken to prevent the spillage of oil or
  297  any other pollutant in all phases of the drilling for, and
  298  extracting of, oil, gas, or other petroleum products, including
  299  high-pressure well stimulations, or during the injection of gas
  300  into and recovery of gas from a natural gas storage reservoir.
  301  The department shall revise such rules from time to time as
  302  necessary for the proper administration and enforcement of this
  303  chapter. Rules adopted and orders issued in accordance with this
  304  section are for, but not limited to, the following purposes:
  305         (a) To require the drilling, casing, and plugging of wells
  306  to be done in such a manner as to prevent the pollution of the
  307  fresh, salt, or brackish waters or the lands of the state and to
  308  protect the integrity of natural gas storage reservoirs.
  309         (b) To prevent the alteration of the sheet flow of water in
  310  any area.
  311         (c) To require that appropriate safety equipment be
  312  installed to minimize the possibility of an escape of oil or
  313  other petroleum products in the event of accident, human error,
  314  or a natural disaster during drilling, casing, or plugging of
  315  any well and during extraction operations.
  316         (d) To require the drilling, casing, and plugging of wells
  317  to be done in such a manner as to prevent the escape of oil or
  318  other petroleum products from one stratum to another.
  319         (e) To prevent the intrusion of water into an oil or gas
  320  stratum from a separate stratum, except as provided by rules of
  321  the division relating to the injection of water for proper
  322  reservoir conservation and brine disposal.
  323         (f) To require a reasonable bond, or other form of security
  324  acceptable to the department, conditioned upon properly
  325  drilling, casing, producing, and operating each well and
  326  properly plugging the performance of the duty to plug properly
  327  each dry and abandoned well and upon the full and complete
  328  restoration by the applicant of the area over which geophysical
  329  exploration, drilling, or production is conducted to the similar
  330  contour and general condition in existence before prior to such
  331  operation.
  332         (g) To require and carry out a reasonable program of
  333  monitoring and inspecting or inspection of all drilling
  334  operations, high-pressure well stimulations, producing wells, or
  335  injecting wells, and well sites, including regular inspections
  336  by division personnel. Inspections are required during the
  337  testing of blowout preventers, during the pressure testing of
  338  the casing and casing shoe, and during the integrity testing of
  339  the cement plugs in plugging and abandonment operations.
  340         (h) To require the making of reports showing the location
  341  of all oil and gas wells; the making and filing of logs; the
  342  taking and filing of directional surveys; the filing of
  343  electrical, sonic, radioactive, and mechanical logs of oil and
  344  gas wells; if taken, the saving of cutting and cores, the cuts
  345  of which shall be given to the Bureau of Geology; and the making
  346  of reports with respect to drilling and production records.
  347  However, such information, or any part thereof, at the request
  348  of the operator, shall be exempt from the provisions of s.
  349  119.07(1) and held confidential by the division for a period of
  350  1 year after the completion of a well.
  351         (i) To prevent wells from being drilled, operated, or
  352  produced in such a manner as to cause injury to neighboring
  353  leases, property, or natural gas storage reservoirs.
  354         (j) To prevent the drowning by water of any stratum, or
  355  part thereof, capable of producing oil or gas in paying
  356  quantities and to prevent the premature and irregular
  357  encroachment of water which reduces, or tends to reduce, the
  358  total ultimate recovery of oil or gas from any pool.
  359         (k) To require the operation of wells with efficient gas
  360  oil ratio, and to fix such ratios.
  361         (l) To prevent “blowouts,” “caving,” and “seepage,” in the
  362  sense that conditions indicated by such terms are generally
  363  understood in the oil and gas business.
  364         (m) To prevent fires.
  365         (n) To identify the ownership of all oil or gas wells,
  366  producing leases, refineries, tanks, plants, structures, and
  367  storage and transportation equipment and facilities.
  368         (o) To regulate the “shooting,” perforating, and chemical
  369  treatment, and high-pressure stimulations of wells.
  370         (p) To regulate secondary recovery methods, including the
  371  introduction of gas, air, water, or other substance into
  372  producing formations.
  373         (q) To regulate gas cycling operations.
  374         (r) To regulate the storage and recovery of gas injected
  375  into natural gas storage facilities.
  376         (s) If necessary for the prevention of waste, as herein
  377  defined, to determine, limit, and prorate the production of oil
  378  or gas, or both, from any pool or field in the state.
  379         (t) To require, either generally or in or from particular
  380  areas, certificates of clearance or tenders in connection with
  381  the transportation or delivery of oil or gas, or any product.
  382         (u) To regulate the spacing of wells and to establish
  383  drilling units.
  384         (v) To prevent, so far as is practicable, reasonably
  385  avoidable drainage from each developed unit which is not
  386  equalized by counterdrainage.
  387         (w) To require that geophysical operations requiring a
  388  permit be conducted in a manner which will minimize the impact
  389  on hydrology and biota of the area, especially environmentally
  390  sensitive lands and coastal areas.
  391         (x) To regulate aboveground crude oil storage tanks in a
  392  manner which will protect the water resources of the state.
  393         (y) To act in a receivership capacity for fractional
  394  mineral interests for which the owners are unknown or unlocated
  395  and to administratively designate the operator as the lessee.
  396         (z)To evaluate the history of prior adjudicated,
  397  uncontested, or settled violations committed by permit
  398  applicants or the applicants’ affiliated entities of any
  399  substantive and material rule or law pertaining to the
  400  regulation of oil or gas.
  401         Section 4. Subsections (1), (2), (4), and (5) of section
  402  377.24, Florida Statutes, are amended, and subsections (10) and
  403  (11) are added to that section, to read:
  404         377.24 Notice of intention to drill well; permits;
  405  abandoned wells and dry holes.—
  406         (1) Before drilling a well in search of oil or gas, before
  407  performing a high-pressure well stimulation, or before storing
  408  gas in or recovering gas from a natural gas storage reservoir,
  409  the person who desires to drill for, store, or recover gas, or
  410  drill for oil or gas, or perform a high-pressure well
  411  stimulation shall notify the division upon such form as it may
  412  prescribe and shall pay a reasonable fee set by rule of the
  413  department not to exceed the actual cost of processing and
  414  inspecting for each well or reservoir. The drilling of any well,
  415  the performance of any high-pressure well stimulation, and the
  416  storing and recovering of gas are prohibited until such notice
  417  is given, the fee is paid, and a the permit is granted. A permit
  418  may authorize a single activity or multiple activities.
  419         (2) An application for the drilling of a well in search of
  420  oil or gas, for the performance of a high-pressure well
  421  stimulation, or for the storing of gas in and recovering of gas
  422  from a natural gas storage reservoir, in this state must include
  423  the address of the residence of the applicant, or applicants,
  424  which must be the address of each person involved in accordance
  425  with the records of the Division of Water Resource Management
  426  until such address is changed on the records of the division
  427  after written request.
  428         (4) Application for permission to drill or abandon any well
  429  or perform a high-pressure well stimulation may be denied by the
  430  division for only just and lawful cause.
  431         (5) No permit to drill a gas or oil well shall be granted
  432  within the jurisdictional boundaries of any municipality or
  433  county, unless the applicant provides notice of the permit
  434  application, by certified mail, to the corporate limits of any
  435  municipality, unless the governing authority of the county or
  436  municipality. The applicant shall include a copy of the notice
  437  with the permit application shall have first duly approved the
  438  application for such permit by resolution.
  439         (10)The department may not approve a permit to authorize a
  440  high-pressure well stimulation until the department adopts rules
  441  for high-pressure well stimulations which are based upon the
  442  findings of the study required pursuant to s. 377.2436 and such
  443  rules take effect.
  444         (11)The rules for high-pressure well stimulation shall be
  445  submitted to the President of the Senate and Speaker of the
  446  House of Representatives and such rules may not take effect
  447  until they are ratified by the Legislature.
  448         Section 5. Subsections (5), (6), and 7 are added to section
  449  377.241, Florida Statutes, to read:
  450         377.241 Criteria for issuance of permits.—The division, in
  451  the exercise of its authority to issue permits as hereinafter
  452  provided, shall give consideration to and be guided by the
  453  following criteria:
  454         (5) For high-pressure well stimulations, whether the high
  455  pressure well stimulation as proposed is designed to ensure
  456  that:
  457         (a)The groundwater near the well location, including
  458  groundwater through which the well will be or has been drilled,
  459  is not contaminated as a result of the high-pressure well
  460  stimulation; and
  461         (b) The high-pressure well stimulation is consistent with
  462  the public policy of this state as specified in s. 377.06.
  463         (6) As a basis for permit denial or imposition of specific
  464  permit conditions, including increased bonding up to five times
  465  the applicable limits and increased monitoring, the history of
  466  prior adjudicated, uncontested, or settled violations committed
  467  by the applicant or an affiliated entity of the applicant of any
  468  substantive and material rule or law pertaining to the
  469  regulation of oil or gas, including violations that occurred
  470  outside the state.
  471         (7)Matters raised in comments timely submitted by a
  472  municipality or county to the division pursuant to s. 377.24(5).
  473         Section 6. Section 377.242, Florida Statutes, is amended to
  474  read:
  475         377.242 Permits for drilling or exploring and extracting
  476  through well holes or by other means.—The department is vested
  477  with the power and authority:
  478         (1)(a) To issue permits for the performance of a high
  479  pressure well stimulation or the drilling for, exploring for, or
  480  production of oil, gas, or other petroleum products that which
  481  are to be extracted from below the surface of the land,
  482  including submerged land, only through the well hole drilled for
  483  oil, gas, and other petroleum products.
  484         1. A No structure intended for the drilling for, or
  485  production of, oil, gas, or other petroleum products may not be
  486  permitted or constructed on any submerged land within any bay or
  487  estuary.
  488         2. A No structure intended for the drilling for, or
  489  production of, oil, gas, or other petroleum products may not be
  490  permitted or constructed within 1 mile seaward of the coastline
  491  of the state.
  492         3. A No structure intended for the drilling for, or
  493  production of, oil, gas, or other petroleum products may not be
  494  permitted or constructed within 1 mile of the seaward boundary
  495  of any state, local, or federal park or aquatic or wildlife
  496  preserve or on the surface of a freshwater lake, river, or
  497  stream.
  498         4. A No structure intended for the drilling for, or
  499  production of, oil, gas, or other petroleum products may not be
  500  permitted or constructed within 1 mile inland from the shoreline
  501  of the Gulf of Mexico, the Atlantic Ocean, or any bay or estuary
  502  or within 1 mile of any freshwater lake, river, or stream unless
  503  the department is satisfied that the natural resources of such
  504  bodies of water and shore areas of the state will be adequately
  505  protected in the event of accident or blowout.
  506         5. Without exception, after July 1, 1989, a no structure
  507  intended for the drilling for, or production of, oil, gas, or
  508  other petroleum products may not be permitted or constructed
  509  south of 26°00′00″ north latitude off Florida’s west coast and
  510  south of 27°00′00″ north latitude off Florida’s east coast,
  511  within the boundaries of Florida’s territorial seas as defined
  512  in 43 U.S.C. s. 1301. After July 31, 1990, a no structure
  513  intended for the drilling for, or production of, oil, gas, or
  514  other petroleum products may not be permitted or constructed
  515  north of 26°00′00″ north latitude off Florida’s west coast to
  516  the western boundary of the state bordering Alabama as set forth
  517  in s. 1, Art. II of the State Constitution, or located north of
  518  27°00′00″ north latitude off Florida’s east coast to the
  519  northern boundary of the state bordering Georgia as set forth in
  520  s. 1, Art. II of the State Constitution, within the boundaries
  521  of Florida’s territorial seas as defined in 43 U.S.C. s. 1301.
  522         (b) Subparagraphs (a)1. and 4. do not apply to permitting
  523  or construction of structures intended for the drilling for, or
  524  production of, oil, gas, or other petroleum products pursuant to
  525  an oil, gas, or mineral lease of such lands by the state under
  526  which lease any valid drilling permits are in effect on the
  527  effective date of this act. In the event that such permits
  528  contain conditions or stipulations, such conditions and
  529  stipulations shall govern and supersede subparagraphs (a)1. and
  530  4.
  531         (c) The prohibitions of subparagraphs (a)1.-4. in this
  532  subsection do not include “infield gathering lines,” provided no
  533  other placement is reasonably available and all other required
  534  permits have been obtained.
  535         (2) To issue permits to explore for and extract minerals
  536  which are subject to extraction from the land by means other
  537  than through a well hole.
  538         (3) To issue permits to establish natural gas storage
  539  facilities or construct wells for the injection and recovery of
  540  any natural gas for storage in natural gas storage reservoirs.
  542  Each permit shall contain an agreement by the permitholder that
  543  the permitholder will not prevent inspection by division
  544  personnel at any time, including during installation and
  545  cementing of casing, during the testing of blowout preventers,
  546  during the pressure testing of the casing and casing shoe, and
  547  during the integrity testing of the cement plugs in plugging and
  548  abandonment operations. The provisions of this section
  549  prohibiting permits for drilling or exploring for oil in coastal
  550  waters do not apply to any leases entered into before June 7,
  551  1991.
  552         Section 7. Subsection (1) of section 377.2425, Florida
  553  Statutes, is amended to read:
  554         377.2425 Manner of providing security for geophysical
  555  exploration, drilling, and production.—
  556         (1) Before Prior to granting a permit for conducting to
  557  conduct geophysical operations; drilling of exploratory,
  558  injection, or production wells; producing oil and gas from a
  559  wellhead; performing a high-pressure well stimulation; or
  560  transporting oil and gas through a field-gathering system, the
  561  department shall require the applicant or operator to provide
  562  surety that these operations will be conducted in a safe and
  563  environmentally compatible manner.
  564         (a) The applicant for a drilling, production, high-pressure
  565  well stimulation, or injection well permit or a geophysical
  566  permit may provide the following types of surety to the
  567  department for this purpose:
  568         1. A deposit of cash or other securities made payable to
  569  the Minerals Trust Fund. Such cash or securities so deposited
  570  shall be held at interest by the Chief Financial Officer to
  571  satisfy safety and environmental performance provisions of this
  572  chapter. The interest shall be credited to the Minerals Trust
  573  Fund. Such cash or other securities shall be released by the
  574  Chief Financial Officer upon request of the applicant and
  575  certification by the department that all safety and
  576  environmental performance provisions established by the
  577  department for permitted activities have been fulfilled.
  578         2. A bond of a surety company authorized to do business in
  579  the state in an amount as provided by rule.
  580         3. A surety in the form of an irrevocable letter of credit
  581  in an amount as provided by rule guaranteed by an acceptable
  582  financial institution.
  583         (b) An applicant for a drilling, production, high-pressure
  584  well stimulation, or injection well permit, or a permittee who
  585  intends to continue participating in long-term production
  586  activities of such wells, has the option to provide surety to
  587  the department by paying an annual fee to the Minerals Trust
  588  Fund. For an applicant or permittee choosing this option the
  589  following shall apply:
  590         1. For the first year, or part of a year, of a drilling,
  591  production, or injection well permit, or change of operator, the
  592  fee is $4,000 per permitted well.
  593         2. For each subsequent year, or part of a year, the fee is
  594  $1,500 per permitted well.
  595         3. The maximum fee that an applicant or permittee may be
  596  required to pay into the trust fund is $30,000 per calendar
  597  year, regardless of the number of permits applied for or in
  598  effect.
  599         4. The fees set forth in subparagraphs 1., 2., and 3. shall
  600  be reviewed by the department on a biennial basis and adjusted
  601  for the cost of inflation. The department shall establish by
  602  rule a suitable index for implementing such fee revisions.
  603         (c) An applicant for a drilling or operating permit for
  604  operations planned in coastal waters that by their nature
  605  warrant greater surety shall provide surety only in accordance
  606  with paragraph (a), or similar proof of financial responsibility
  607  other than as provided in paragraph (b). For all such
  608  applications, including applications pending at the effective
  609  date of this act and notwithstanding the provisions of paragraph
  610  (b), the Governor and Cabinet in their capacity as the
  611  Administration Commission, at the recommendation of the
  612  department of Environmental Protection, shall set a reasonable
  613  amount of surety required under this subsection. The surety
  614  amount shall be based on the projected cleanup costs and natural
  615  resources damages resulting from a maximum oil spill and adverse
  616  hydrographic and atmospheric conditions that would tend to
  617  transport the oil into environmentally sensitive areas, as
  618  determined by the department of Environmental Protection.
  619         Section 8. Section 377.2436, Florida Statutes, is created
  620  to read:
  621         377.2436 Study on high-pressure well stimulations.—
  622         (1) The department shall conduct a study on high-pressure
  623  well stimulations. The study must:
  624         (a) Evaluate the underlying geologic features present in
  625  the counties where oil wells have been permitted and analyze the
  626  potential impact that high-pressure well stimulation and
  627  wellbore construction may have on the underlying geologic
  628  features.
  629         (b) Evaluate the potential hazards and risks that high
  630  pressure well stimulation poses to surface water or groundwater
  631  resources. The study must assess the potential impacts of high
  632  pressure well stimulation on drinking water resources and
  633  identify the main factors affecting the severity and frequency
  634  of impacts and must analyze the potential for the use or reuse
  635  of recycled water in well stimulation fluids while meeting
  636  appropriate water quality standards.
  637         (c) Review and evaluate the potential for groundwater
  638  contamination from conducting high-pressure well stimulation
  639  under or near wells that have been previously plugged and
  640  abandoned and identify a setback radius from previously plugged
  641  and abandoned wells that could be impacted by high-pressure well
  642  stimulation.
  643         (d) Review and evaluate the ultimate disposition of high
  644  pressure well stimulation fluids after use in high-pressure well
  645  stimulation processes.
  646         (e)Review and evaluate the potential direct and indirect
  647  economic benefits resulting from the use of high-pressure well
  648  stimulation, including effects on state and local tax revenues,
  649  royalty payments, employment opportunities, and demand for goods
  650  and services.
  651         (f)Review and evaluate potential seismic activity
  652  associated with high-pressure well stimulation and the deep-well
  653  disposal of oil and gas production wastewater.
  654         (g)Review and evaluate the feasibility and impact of
  655  waterless fracturing technologies to perform high-pressure well
  656  stimulation.
  657         (2) The department shall continue conventional oil and gas
  658  business operations during the performance of the study. There
  659  may not be a moratorium on the evaluation and issuance of
  660  permits for conventional drilling, exploration, conventional
  661  completions, or conventional workovers during the performance of
  662  the study.
  663         (3) The study is subject to independent scientific peer
  664  review.
  665         (4) The department shall submit the findings of the study
  666  to the Governor, the President of the Senate, and the Speaker of
  667  the House of Representatives by June 30, 2017, and shall
  668  prominently post the findings on its website.
  669         (5)The department may not adopt rules for high-pressure
  670  well stimulation until the findings of the study have been
  671  submitted to the Legislature. However, by March 1, 2018, the
  672  department must adopt rules to implement the findings of the
  673  study, if such rules are warranted to protect public health,
  674  safety, and the environment.
  675         Section 9. Paragraph (a) of subsection (1) of section
  676  377.37, Florida Statutes, is amended to read:
  677         377.37 Penalties.—
  678         (1)(a) A Any person who violates any provision of this
  679  chapter law or any rule, regulation, or order of the division
  680  made under this chapter or who violates the terms of any permit
  681  to drill for or produce oil, gas, or other petroleum products
  682  referred to in s. 377.242(1) or to store gas in a natural gas
  683  storage facility, or any lessee, permitholder, or operator of
  684  equipment or facilities used in the exploration for, drilling
  685  for, or production of oil, gas, or other petroleum products, or
  686  storage of gas in a natural gas storage facility, who refuses
  687  inspection by the division as provided in this chapter, is
  688  liable to the state for any damage caused to the air, waters, or
  689  property, including animal, plant, or aquatic life, of the state
  690  and for reasonable costs and expenses of the state in tracing
  691  the source of the discharge, in controlling and abating the
  692  source and the pollutants, and in restoring the air, waters, and
  693  property, including animal, plant, and aquatic life, of the
  694  state. Furthermore, such person, lessee, permitholder, or
  695  operator is subject to the judicial imposition of a civil
  696  penalty in an amount of not more than $25,000 $10,000 for each
  697  offense. However, the court may receive evidence in mitigation.
  698  Each day during any portion of which such violation occurs
  699  constitutes a separate offense. This paragraph does not Nothing
  700  herein shall give the department the right to bring an action on
  701  behalf of a any private person.
  702         Section 10. Section 377.45, Florida Statutes, is created to
  703  read:
  704         377.45 High-pressure well stimulation chemical disclosure
  705  registry.—
  706         (1)(a) The department shall designate the national chemical
  707  disclosure registry, known as FracFocus, developed by the Ground
  708  Water Protection Council and the Interstate Oil and Gas Compact
  709  Commission, as the state’s registry for chemical disclosure for
  710  all wells on which high-pressure well stimulations are
  711  performed. The department shall provide a link to FracFocus
  712  through its website.
  713         (b) In addition to providing the following information to
  714  the department as part of the permitting process, a service
  715  provider, vendor, or well owner or operator shall report, as
  716  established by department rule, to the department, at a minimum,
  717  the following information:
  718         1. The name of the service provider, vendor, or owner or
  719  operator.
  720         2. The date of completion of the high-pressure well
  721  stimulation.
  722         3. The county in which the well is located.
  723         4. The API Well Number.
  724         5. The well name and number.
  725         6. The longitude and latitude of the wellhead.
  726         7. The total vertical depth of the well.
  727         8. The total volume of water used in the high-pressure well
  728  stimulation.
  729         9. Each chemical ingredient that is subject to 29 C.F.R. s.
  730  1910.1200(g)(2) and the ingredient concentration in the high
  731  pressure well stimulation fluid by mass for each well on which a
  732  high-pressure well stimulation is performed.
  733         10. The trade or common name and the CAS Registry Number
  734  for each chemical ingredient.
  735         (c) The department shall report to FracFocus all
  736  information received under paragraph (b), excluding any
  737  information subject to chapter 688.
  738         (d) If FracFocus cannot accept and make publicly available
  739  any information specified in this section, the department shall
  740  post the information on its website, excluding any information
  741  subject to chapter 688.
  742         (2) A service provider, vendor, or well owner or operator
  743  shall:
  744         (a) Report the information required under subsection (1) to
  745  the department within 60 days after the initiation of the high
  746  pressure well stimulation for each well on which such high
  747  pressure well stimulation is performed.
  748         (b) Notify the department if any chemical ingredient not
  749  previously reported is intentionally included and used for the
  750  purpose of performing a high-pressure well stimulation.
  751         (3) This section does not apply to an ingredient that:
  752         (a) Is not intentionally added to the high-pressure well
  753  stimulation; or
  754         (b) Occurs incidentally or is otherwise unintentionally
  755  present in a high-pressure well stimulation.
  756         (4) The department shall adopt rules to administer this
  757  section.
  758         Section 11. Section 377.07, Florida Statutes, is amended to
  759  read:
  760         377.07 Division of Water Resource Management; powers,
  761  duties, and authority.—The Division of Water Resource Management
  762  of the Department of Environmental Protection is hereby vested
  763  with power, authority, and duty to administer, carry out, and
  764  enforce the provisions of this part law as directed in s.
  765  370.02(3).
  766         Section 12. Section 377.10, Florida Statutes, is amended to
  767  read:
  768         377.10 Certain persons not to be employed by division.—A No
  769  person in the employ of, or holding any official connection or
  770  position with any person, firm, partnership, corporation, or
  771  association of any kind, engaged in the business of buying or
  772  selling mineral leases, drilling wells in the search of oil or
  773  gas, producing, transporting, refining, or distributing oil or
  774  gas may not shall hold any position under, or be employed by,
  775  the Division of Water Resource Management in the prosecution of
  776  its duties under this part law.
  777         Section 13. Subsection (1) of section 377.243, Florida
  778  Statutes, is amended to read:
  779         377.243 Conditions for granting permits for extraction
  780  through well holes.—
  781         (1) Before applying Prior to the application to the
  782  Division of Water Resource Management for the permit to drill
  783  for oil, gas, and related products referred to in s. 377.242(1),
  784  the applicant must own a valid deed, or other muniment of title,
  785  or lease granting the said applicant the privilege to explore
  786  for oil, gas, or related mineral products to be extracted only
  787  through the well hole on the land or lands included in the
  788  application. However, unallocated interests may be unitized
  789  according to s. 377.27.
  790         Section 14. Subsection (1) of section 377.244, Florida
  791  Statutes, is amended to read:
  792         377.244 Conditions for granting permits for surface
  793  exploratory and extraction operations.—
  794         (1) Exploration for and extraction of minerals under and by
  795  virtue of the authority of a grant of oil, gas, or mineral
  796  rights, or which, subsequent to such grant, may be interpreted
  797  to include the right to explore for and extract minerals which
  798  are subject to extraction from the land by means other than
  799  through a well hole, that is by means of surface exploratory and
  800  extraction operations such as sifting of the sands, dragline,
  801  open pit mining, or other type of surface operation, which would
  802  include movement of sands, dirt, rock, or minerals, shall be
  803  exercised only pursuant to a permit issued by the Division of
  804  Water Resource Management upon the applicant’s compliance
  805  applicant complying with the following conditions:
  806         (a) The applicant must own a valid deed, or other muniment
  807  of title, or lease granting the applicant the right to explore
  808  for and extract oil, gas, and other minerals from the said
  809  lands.
  810         (b) The applicant shall post a good and sufficient surety
  811  bond with the division in such amount as the division determines
  812  may determine is adequate to afford full and complete protection
  813  for the owner of the surface rights of the lands described in
  814  the application, conditioned upon the full and complete
  815  restoration, by the applicant, of the area over which the
  816  exploratory and extraction operations are conducted to the same
  817  condition and contour in existence before prior to such
  818  operations.
  819         Section 15. For the 2016-2017 fiscal year, the sum of $1
  820  million in nonrecurring funds is appropriated from the General
  821  Revenue Fund to the Department of Environmental Protection to
  822  conduct a high-pressure well stimulation study pursuant to s.
  823  377.2436, Florida Statutes.
  824         Section 16. This act shall take effect July 1, 2016.