<section article="gen" article_name="Environment" number="14-101" title_number="14" title_name="Gas and Oil" subtitle_number="1" subtitle_name="In General"> <text>The General Assembly finds and declares that the production and development of oil and gas resources is important to the economic well-being of the State and the nation. The drilling and production of oil and gas should be conducted in a manner that will minimize their effects on the surrounding environment. Furthermore, proper evaluation of a project and the use of the most environmentally sound drilling and production methods are necessary to prevent adverse environmental consequences that would be detrimental to the general welfare, health, safety, and property interests of the citizens of the State. In addition, there are certain circumstances where oil and gas exploration or production should be prohibited, such as when these operations will have a significant adverse effect on the environment. The General Assembly finds that the conduct of exploration or production of oil and gas resources under this subtitle will allow the safe utilization of the State’s natural resources and will provide for the protection of the State’s environment.</text> </section> <section article="gen" article_name="Environment" number="14-102" title_number="14" title_name="Gas and Oil" subtitle_number="1" subtitle_name="In General"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Coalbed methane” means methane and any other gaseous substance occurring in or produced from a coal seam or related, associated, or adjacent rock materials.</text> </level> <level label="c"> <text>“County” includes Baltimore City unless otherwise indicated.</text> </level> <level label="d"> <text>“Department” means the Department of the Environment.</text> </level> <level label="e"> <text>“Field” means the general area underlaid by one or more pools.</text> </level> <level label="f"> <text>“Fund” means the Oil and Gas Fund.</text> </level> <level label="g"> <text>“Gas” means all natural gas and other fluid hydrocarbons, not defined as oil, which are produced from a natural reservoir.</text> </level> <level label="h"> <text>“Oil” means crude petroleum oil and other hydrocarbons, regardless of gravity, which are produced at the wellhead in liquid form, except liquid hydrocarbons known as distillate or condensate recovered or extracted from gas.</text> </level> <level label="i"> <text>“Owner” means the person who has the right to drill into and produce from a pool, or to store in a pool, and appropriate the oil or gas the person produces or stores either for the person or others.</text> </level> <level label="j"> <text>“Person” means any individual, corporation, association, partnership, receiver, trustee, executor, administrator, guardian, fiduciary, or other representative of any kind.</text> </level> <level label="k"> <text>“Pool” means an underground reservoir containing a common accumulation of oil, gas, or both.</text> </level> <level label="l"> <text>“Producer” means the owner of a well capable of producing oil, gas, or both.</text> </level> <level label="m"> <text>“Product” means any commodity produced in its natural state by an oil or gas well.</text> </level> <level label="n"> <level label="1"> <text>“Production” means the act or process of producing oil or gas from a natural reservoir.</text> </level> <level label="2"> <text>“Production” does not include the sale or distribution of oil or gas.</text> </level> </level> <level label="o"> <level label="1"> <text>“Underground storage” means the storing of gas or oil in a geological stratum beneath the surface of the earth.</text> </level> <level label="2"> <text>“Underground storage” includes the injection of gas or oil into and withdrawal from an underground storage reservoir and any other operation necessary for or convenient to the storage of gas or of oil.</text> </level> </level> <level label="p"> <text>“Underground storage reservoir” means the stratum and subsurface area that are used or are to be used for or in connection with the underground storage of gas or of oil.</text> </level> </section> <section article="gen" article_name="Environment" number="14-103" title_number="14" title_name="Gas and Oil" subtitle_number="1" subtitle_name="In General"> <text>The Department may enforce effectively the provisions of this subtitle through the adoption and promulgation of rules and regulations. The Department may not prorate or limit the output of any gas or oil well.</text> </section> <section article="gen" article_name="Environment" number="14-104" title_number="14" title_name="Gas and Oil" subtitle_number="1" subtitle_name="In General"> <level label="a"> <text>A person may not drill any well for the exploration, production, or underground storage of gas or oil in the State without obtaining a permit from the Department of the Environment under the terms and conditions and on the forms the Department prescribes.</text> </level> <level label="b"> <level label="1"> <text>The Department shall require an applicant to submit an environmental assessment for the purpose of evaluating an application.</text> </level> <level label="2"> <text>The Department shall coordinate with the Department of Natural Resources in its evaluation of the environmental assessment.</text> </level> </level> <level label="c"> <text>The permit serves as the permit required under the provisions of Title 9, Subtitle 13 of this article, dealing with well drillers.</text> </level> <level label="d"> <text>A person may not dispose of any product of a gas or oil well without the necessary permits issued by the Department.</text> </level> </section> <section article="gen" article_name="Environment" number="14-105" title_number="14" title_name="Gas and Oil" subtitle_number="1" subtitle_name="In General"> <level label="a"> <level label="1"> <text>An applicant for a permit to drill a well under § 14–104 of this subtitle shall submit an application in a manner satisfactory to the Department.</text> </level> <level label="2"> <text>The application for a permit to drill a well under § 14–104 of this subtitle and each application for a permit renewal shall include a closure cost estimate for the proper sealing and plugging of the gas or oil well and reclamation of the site.</text> </level> </level> <level label="b"> <text>The Department shall establish and collect fees for:</text> <level label="1"> <text>The issuance of a permit to drill a well under § 14–104 of this subtitle;</text> </level> <level label="2"> <text>The renewal of a permit to drill a well under § 14–104 of this subtitle; and</text> </level> <level label="3"> <text>The production of oil and gas wells installed after October 1, 2010.</text> </level> </level> <level label="c"> <text>The fees imposed under subsection (b) of this section shall be set by the Department at the rate necessary to implement the purposes set forth in § 14–123 of this subtitle.</text> </level> <level label="d"> <text>In any fiscal year, if the fee schedule established by the Department generates revenue that exceeds the amount necessary to operate a regulatory program to oversee the drilling of oil and gas wells, the Department shall reduce the fees in the following fiscal year.</text> </level> <level label="e"> <text>The fees collected by the Department under this section shall be deposited in the Oil and Gas Fund established under § 14–122 of this subtitle.</text> </level> <level label="f"> <text>The Department shall provide public notice, public informational hearings, and judicial review in accordance with the provisions of § 5–204 of this article.</text> </level> </section> <section article="gen" article_name="Environment" number="14-106" title_number="14" title_name="Gas and Oil" subtitle_number="1" subtitle_name="In General"> <level label="a"> <text>The Department may bifurcate an application to drill for oil or gas when the drilling will be conducted in geologic formations not yet proven to be productive.</text> </level> <level label="b"> <text>If the Department bifurcates the permit process it may issue a permit for exploration only. Production may not commence until the environmental assessment required by § 14–104 of this subtitle has been completed and approved by the Department and the Department has issued a permit for production. An additional opportunity for a public hearing shall be provided in accordance with § 14–105(f) of this subtitle prior to the issuance of any permit for production.</text> </level> <level label="c"> <text>If the Department bifurcates the permit process, the environmental assessment required under § 14–104 of this subtitle may also be bifurcated to address separately environmental issues associated with exploration and production. However, prior to granting a permit to conduct exploratory drilling in the coastal plain, the Department shall require the applicant to submit an environmental assessment that contains general information regarding the environmental impacts of possible production, including the potential effects of transporting and storing oil or gas and the potential adverse environmental impacts that may arise due to the environmental characteristics of the drilling site.</text> </level> </section> <section article="gen" article_name="Environment" number="14-107" title_number="14" title_name="Gas and Oil" subtitle_number="1" subtitle_name="In General"> <text>Notwithstanding any other law, a person may not drill for oil or gas in the waters of the Chesapeake Bay, any of its tributaries, or in the Chesapeake Bay Critical Area.</text> </section> <section article="gen" article_name="Environment" number="14-107.1" title_number="14" title_name="Gas and Oil" subtitle_number="1" subtitle_name="In General"> <level label="a"> <text>In this section, “hydraulic fracturing” means a stimulation treatment performed on oil and natural gas wells in low–permeability oil or natural gas reservoirs through which specially engineered fluids are pumped at high pressure and rate into the reservoir interval to be treated, causing fractures to open.</text> </level> <level label="b"> <text>A person may not engage in the hydraulic fracturing of a well for the exploration or production of oil or natural gas in the State.</text> </level> </section> <section article="gen" article_name="Environment" number="14-108" title_number="14" title_name="Gas and Oil" subtitle_number="1" subtitle_name="In General"> <text>The Department shall deny the permit if the Department determines that:</text> <level label="1"> <text>The proposed operation shall violate a requirement of this subtitle or a regulation adopted under this subtitle;</text> </level> <level label="2"> <text>The proposed drilling or well operation poses a substantial threat to public safety or a risk of significant adverse environmental impact to, but not limited to, the following:</text> <level label="i"> <text>The Chesapeake Bay;</text> </level> <level label="ii"> <text>The Chesapeake Bay Critical Area;</text> </level> <level label="iii"> <text>Tidal or nontidal wetlands;</text> </level> <level label="iv"> <text>Endangered or threatened species, species in need of conservation, or the habitat of any of them;</text> </level> <level label="v"> <text>Historic properties under § 5A–326 of the State Finance and Procurement Article;</text> </level> <level label="vi"> <text>Populated areas;</text> </level> <level label="vii"> <text>Freshwater, estuarine, or marine fisheries; or</text> </level> <level label="viii"> <text>Other significant natural resources;</text> </level> </level> <level label="3"> <text>The applicant has failed to receive applicable permits or approvals for the operation from all State and local regulatory units responsible for air and water pollution, sediment control, and zoning;</text> </level> <level label="4"> <text>The operation will constitute a significant physical hazard to a neighboring dwelling unit, school, church, hospital, commercial or industrial building, public road, or other public or private property in existence at the time of the application for the permit;</text> </level> <level label="5"> <text>The operation will have a significant adverse effect on the uses of a publicly owned park, forest, or recreation area in existence at the time of the application for the permit; or</text> </level> <level label="6"> <text>The applicant has not corrected any violations committed by the applicant under any prior permit.</text> </level> </section> <section article="gen" article_name="Environment" number="14-109" title_number="14" title_name="Gas and Oil" subtitle_number="1" subtitle_name="In General"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Explosives” means normal commercial explosives, blasting agents, and detonators.</text> </level> <level label="3"> <text>“Seismic operations” means the controlled application of vibratory energy from any source to determine if favorable conditions exist for the subsurface entrapment of oil or gas.</text> </level> <level label="4"> <text>“Seismic section” means a graphic, near-vertical display of waveform data that is usually processed by a computer program to facilitate the interpretation of subsurface conditions.</text> </level> </level> <level label="b"> <level label="1"> <text>Unless a person obtains a permit from the Department, a person may not conduct seismic operations in the State.</text> </level> <level label="2"> <text>An applicant for a permit to conduct seismic operations shall submit an application that includes the information required by the Department.</text> </level> <level label="3"> <level label="i"> <text>In addition to any other information required by the Department, an applicant for a permit to conduct seismic operations on the waters of the Chesapeake Bay and its navigable tributaries shall provide to the Department a written agreement to submit to the Department processed seismic sections for any operation conducted on the waters of the Chesapeake Bay and its navigable tributaries.</text> </level> <level label="ii"> <text>The Department shall hold processed seismic sections submitted under this subsection confidential.</text> </level> </level> <level label="4"> <text>The Department shall determine the terms and conditions for the issuance of a permit to conduct seismic operations.</text> </level> <level label="5"> <text>An applicant for a permit to conduct seismic operations shall demonstrate evidence of sufficient liability insurance coverage, in an amount determined by the Department, for any personal injury or property damage resulting from a seismic operation.</text> </level> <level label="6"> <text>The Department may deny an application for a permit if:</text> <level label="i"> <text>The applicant does not submit the information required by the Department;</text> </level> <level label="ii"> <text>The proposed activity poses a substantial risk of causing environmental damage that cannot be mitigated by the applicant, particularly to:</text> <level label="1"> <text>The Chesapeake Bay;</text> </level> <level label="2"> <text>The Chesapeake Bay Critical Area;</text> </level> <level label="3"> <text>A nontidal wetland;</text> </level> <level label="4"> <text>An endangered or threatened species or the habitat of any of these species;</text> </level> <level label="5"> <text>A designated archaeological site; or</text> </level> <level label="6"> <text>A populated area; or</text> </level> </level> <level label="iii"> <text>The proposed operation will violate regulations adopted by the Department in accordance with this section.</text> </level> </level> <level label="7"> <text>If the Department decides to deny the permit, the notification of denial shall state the reason, any modification necessary for approval of the application, and the rights of the applicant to appeal the decision as provided in Title 10, Subtitle 2 of the State Government Article.</text> </level> </level> <level label="c"> <text>A person may not use explosives in seismic operations conducted on the waters of the Chesapeake Bay and its tributaries.</text> </level> <level label="d"> <text>A person may use explosives in seismic operations conducted on land if the person complies with the requirements for the use of explosives established by the Department.</text> </level> </section> <section article="gen" article_name="Environment" number="14-110" title_number="14" title_name="Gas and Oil" subtitle_number="1" subtitle_name="In General"> <level label="a"> <level label="1"> <text>A permit shall be expressly conditioned upon compliance with all requirements of this subtitle and any regulations adopted under this subtitle.</text> </level> <level label="2"> <text>The Department may place in a permit conditions which the Department deems reasonable and appropriate to assure that the operation shall fully comply with the requirements of this subtitle, and provide for public safety and the protection of the State’s natural resources.</text> </level> </level> <level label="b"> <text>Violation of a permit condition is a violation of this subtitle subject to enforcement and penalties under this subtitle.</text> </level> </section> <section article="gen" article_name="Environment" number="14-110.1" title_number="14" title_name="Gas and Oil" subtitle_number="1" subtitle_name="In General"> <level label="a"> <text>In this section, “water supply” means a source of water used for drinking or other domestic purpose or for agriculture, including livestock.</text> </level> <level label="b"> <text>For each permit the Department issues under this subtitle to drill a well for the exploration or production of gas in deep shale deposits, there is a presumptive impact area around the gas well in which it is presumed that contamination of a water supply was caused by the activities of gas exploration or production.</text> </level> <level label="c"> <text>The presumptive impact area shall be in effect:</text> <level label="1"> <text>Within a radius of 2,500 feet from the vertical wellbore; and</text> </level> <level label="2"> <text>For 365 days after the last event of well drilling, completion, or hydraulic fracturing.</text> </level> </level> <level label="d"> <text>Within a presumptive impact area established under subsections (b) and (c) of this section, the permittee shall replace, at no expense to an owner of real property in the presumptive impact area, a water supply that is contaminated as a result of the permittee’s drilling or operation of the gas well.</text> </level> <level label="e"> <text>A water supply within a presumptive impact area that no longer yields potable water as a result of the drilling or operation of a gas well shall be considered to be replaced adequately by a permittee if the permittee provides for the affected property owner a new or retrofitted well or other alternative water supply that is capable of yielding potable water equal to the volume used or needed by the property owner before the contamination of the water supply.</text> </level> <level label="f"> <text>The permittee and the property owner may agree on monetary compensation or other mitigation instead of restoration.</text> </level> <level label="g"> <text>The Department may not require a permittee to replace a water supply or compensate a property owner, as provided in this section, if the permittee demonstrates to the Department by a preponderance of the evidence that:</text> <level label="1"> <text>The contamination is not the result of activities relating to the gas well; or</text> </level> <level label="2"> <text>The contamination existed before the commencement of activities allowed by the permit and was not worsened by those activities.</text> </level> </level> <level label="h"> <text>The Department may adopt regulations to implement this section.</text> </level> <level label="i"> <text>The presumption of causation established under this section does not apply to contamination of a water supply if:</text> <level label="1"> <text>The permit applicant requests the permission of the property owner to sample and test the water supply before commencement of activities and to provide the property owner with a complete copy of the test results; and</text> </level> <level label="2"> <text>The property owner refuses permission.</text> </level> </level> <level label="j"> <text>This section may not be construed to affect any common law remedies available to a property owner.</text> </level> <level label="k"> <level label="1"> <text>The presumption of causation established under this section shall apply in:</text> <level label="i"> <text>A proceeding for judicial review under § 14–117 of this subtitle;</text> </level> <level label="ii"> <text>An action for an injunction under § 14–118 of this subtitle; or</text> </level> <level label="iii"> <text>A civil action for damages or equitable relief brought by a property owner against a permittee.</text> </level> </level> <level label="2"> <text>The presumption may be rebutted by a preponderance of the evidence.</text> </level> </level> </section> <section article="gen" article_name="Environment" number="14-111" title_number="14" title_name="Gas and Oil" subtitle_number="1" subtitle_name="In General"> <level label="a"> <text>Except as provided in subsection (d) of this section, every holder of a permit to drill for gas or oil shall:</text> <level label="1"> <text>Submit a completion report on forms to be supplied by the Department within 30 days after the drilling of a well has been completed;</text> </level> <level label="2"> <text>Submit cutting samples at the request of the Department;</text> </level> <level label="3"> <text>Notify the Department when a well is about to be abandoned;</text> </level> <level label="4"> <text>Comply with all the requirements of this subtitle, including the proper sealing and plugging of a gas or oil well and reclamation of the site;</text> </level> <level label="5"> <text>Provide financial assurance of at least $50,000 for each gas or oil well, including each well on a multiwell pad, but not less than the most recent closure cost estimate provided by the permit holder under § 14–105(a) of this subtitle;</text> </level> <level label="6"> <text>Obtain and keep in effect comprehensive general liability insurance coverage in an amount not less than $300,000 for each person and $500,000 for each occurrence or accident to pay damages for injury to persons or damage to property caused by sudden accidental occurrences arising from, or in support of, the activities authorized by a permit issued under § 14–104 of this subtitle, including the costs and expenses incurred in the investigation, defense, or settlement of claims;</text> </level> <level label="7"> <text>Obtain and keep in effect environmental pollution liability insurance in an amount not less than $1,000,000 per loss for bodily injury and property damage to persons and natural resource damage, including the costs of cleanup and remediation, caused by the sudden or nonsudden release of pollutants arising from, or in support of, the activities authorized by a permit issued under § 14–104 of this subtitle, including the costs and expenses incurred in the investigation, defense, or settlement of claims;</text> </level> <level label="8"> <text>In the event of an assignment or transfer of a permit, maintain the existing financial assurance required under this section until replacement financial assurance is approved by the Department; and</text> </level> <level label="9"> <text>Notify the Department of the location of the equipment required by regulation for the prevention and containment of gas leaks and oil spills.</text> </level> </level> <level label="b"> <text>The environmental pollution liability insurance required under subsection (a)(7) of this section shall be maintained for 5 years after the Department determines that:</text> <level label="1"> <text>The gas or oil well has been properly sealed and plugged; and</text> </level> <level label="2"> <text>The site has been reclaimed.</text> </level> </level> <level label="c"> <text>The permit holder’s financial assurance required under subsections (a) and (b) of this section shall:</text> <level label="1"> <text>Extend to the owner or owners of the surface and subsurface property; and</text> </level> <level label="2"> <text>Cover the acts and omissions of the permit holder’s contractors and subcontractors during their activities in connection with the drilling, operation, and closure of the well.</text> </level> </level> <level label="d"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, a holder of a permit to drill for gas or oil that has a well in existence on or before October 1, 2013, shall provide financial assurance by maintaining the same performance bond and liability insurance that is required for the holder’s most recent permit or permit renewal issued on or before October 1, 2013.</text> </level> <level label="2"> <text>If a gas or oil well is in existence on or before October 1, 2013, and is modified after October 1, 2013, by recompletion, stimulation, deepening, or adding lateral extensions, the holder of the permit for the gas or oil well shall comply with the requirements for financial assurance contained in subsections (a), (b), (c), and (e) of this section.</text> </level> </level> <level label="e"> <text>The Department may adopt regulations to:</text> <level label="1"> <text>Increase the minimum amounts of financial assurance required under subsection (a) of this section;</text> </level> <level label="2"> <text>Enable permit applicants to offer, and the Department to authorize, alternative means for demonstrating financial assurance, including:</text> <level label="i"> <text>A performance bond;</text> </level> <level label="ii"> <text>A blanket bond;</text> </level> <level label="iii"> <text>Cash;</text> </level> <level label="iv"> <text>A certificate of deposit;</text> </level> <level label="v"> <text>A letter of credit;</text> </level> <level label="vi"> <text>Self–insurance;</text> </level> <level label="vii"> <text>A corporate guarantee; or</text> </level> <level label="viii"> <text>Any other surety the Department determines to be good and sufficient; and</text> </level> </level> <level label="3"> <text>Establish alternative financial assurance requirements as appropriate for a new gas storage well and a gas storage well that is modified by recompletion, stimulation, deepening, or adding lateral extensions.</text> </level> </level> <level label="f"> <text>The Department shall adopt regulations requiring each holder of a permit to drill for gas or oil to have equipment available for the prevention and containment of gas leaks and oil spills.</text> </level> <level label="g"> <text>A permit or the transfer of a permit may not become effective until the financial assurance requirements of this section have been satisfied.</text> </level> </section> <section article="gen" article_name="Environment" number="14-112" title_number="14" title_name="Gas and Oil" subtitle_number="1" subtitle_name="In General"> <level label="a"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, a well for the production or underground storage of gas or oil may not be drilled on any property nearer than 1,000 feet to the boundary of the property except by agreement with the owners of the gas and oil on adjacent lands.</text> </level> <level label="2"> <text>A well for the production of coalbed methane may not be drilled on any property nearer than 500 feet to the boundary of the property except by agreement with the owners of coalbed methane on adjacent lands.</text> </level> </level> <level label="b"> <text>On property on which it is impossible to locate a well the required minimum distance from the boundary, and where no agreement with the owners of the gas and oil or coalbed methane on adjacent lands has been made, a well may be located nearer than the required minimum distance under subsection (a) of this section to the boundary with the consent of the Department. However, when any permit to drill a well nearer than the required minimum distance to the boundary has been applied for, the Department shall notify every landowner, royalty owner, or leaseholder within the required minimum distance of the location of the proposed well, giving them a reasonable opportunity to file objections to the issuance of the permit. The Department then shall hold a hearing. If the Department determines that it is necessary for the well to be located nearer than the required minimum distance to the boundary, it may issue the permit. If a permit is issued, any landowner, royalty owner, or leaseholder within the required minimum distance of the proposed well has the right to a rehearing and appeal to the courts provided in this subtitle. A request for a rehearing or an appeal to the courts stays the authority granted under the permit until final determination of the issued permit is made.</text> </level> <level label="c"> <text>The Department, by rule or regulation, shall prescribe the distance between any two wells on any property.</text> </level> </section> <section article="gen" article_name="Environment" number="14-113" title_number="14" title_name="Gas and Oil" subtitle_number="1" subtitle_name="In General"> <text>On completion of a well producing gas or oil on any leased lands included under a unit operation agreement, royalties from the producing well shall be paid on all lands originally included within the unit operation agreement. Within six months after the completion of the producing well, the lands within the unit operation agreement not included as “in pool” acreage and on which no royalties are payable, shall be released, unless the owner of the lands has otherwise agreed in writing. This section does not extend to any leases and unit operation agreements in effect on June 1, 1956.</text> </section> <section article="gen" article_name="Environment" number="14-114" title_number="14" title_name="Gas and Oil" subtitle_number="1" subtitle_name="In General"> <level label="a"> <text>Except in an emergency, a rule, regulation, order, or amendment may not be made by the Department without a public hearing upon at least ten days’ notice. The public hearing shall be held at the time and place prescribed by the Department. Any interested person is entitled to be heard by the Department.</text> </level> <level label="b"> <text>When an emergency requiring immediate action exists, the Department is authorized to issue an emergency order without notice or hearing. An emergency order takes effect upon promulgation. An emergency order may not remain effective for more than 15 days.</text> </level> <level label="c"> <text>All rules, regulations, and orders issued by the Department shall be in writing, entered and indexed in books kept by the Department as public documents open for inspection during normal office hours. A copy of any rule, regulation, or order certified by the Secretary of the Department or the Secretary’s designee shall be received in evidence in all courts with the same effect as the original.</text> </level> <level label="d"> <text>The Department may act either upon its own motion or the petition of any interested person. On the filing of a petition concerning any matter within its jurisdiction, it shall promptly fix a date for a hearing and cause notice of the hearing to be given. The hearing shall be held promptly after the filing of the petition. If the hearing relates to the issuance of a permit for or with respect to a specific well, it shall be held in the county or municipal corporation where the well is located. The Department shall enter its order within ten days after the hearing.</text> </level> </section> <section article="gen" article_name="Environment" number="14-115" title_number="14" title_name="Gas and Oil" subtitle_number="1" subtitle_name="In General"> <level label="a"> <text>The Department may summon witnesses, administer oaths, and require the production of records, books, and documents for examination at any hearing or investigation it conducts.</text> </level> <level label="b"> <text>If any person fails or refuses to comply with a subpoena issued by the Department, or if any witness refuses to testify as to any matter regarding which the witness may be interrogated, any court of competent jurisdiction, upon the application of the Department, may issue an attachment for the person and compel the person to comply with the subpoena, and appear before the Department and produce records, books, and documents for examination and give testimony. If a person disobeys a subpoena or refuses to testify, the court may punish the person for contempt.</text> </level> </section> <section article="gen" article_name="Environment" number="14-116" title_number="14" title_name="Gas and Oil" subtitle_number="1" subtitle_name="In General"> <text>Any person adversely affected by any rule, regulation, determination, or order of the Department may within 15 days after its effective date apply to the Department in writing for a rehearing. The application shall be acted upon within 15 days after its filing. The rehearing, if granted, shall be held promptly.</text> </section> <section article="gen" article_name="Environment" number="14-117" title_number="14" title_name="Gas and Oil" subtitle_number="1" subtitle_name="In General"> <level label="a"> <text>Except as provided in § 14–105 of this subtitle, any person aggrieved by any action of the Department may apply to the circuit court of the county in which the person resides or the well is located for review of its decision. Any other interested party may intervene. The Department may become a party to the appeal. The case shall be docketed at once but may not take precedence over any other civil cause, action, or proceeding on the docket. The court shall hear the proceedings de novo, determine all matters of law and fact without a jury, and render its decision approving, setting aside, or modifying the Department’s action.</text> </level> <level label="b"> <text>Any party aggrieved by the final decision of the court may appeal to the Appellate Court of Maryland.</text> </level> </section> <section article="gen" article_name="Environment" number="14-118" title_number="14" title_name="Gas and Oil" subtitle_number="1" subtitle_name="In General"> <text>Upon application of the Department, verified by oath or affirmation, the circuit court of the county where the well is located, sitting in equity, may by injunction enforce compliance with, or restrain the violation of any order, notice, rule or regulation made under the provisions of this subtitle or restrain the violation or attempted violation of any of the provisions of this subtitle.</text> </section> <section article="gen" article_name="Environment" number="14-119" title_number="14" title_name="Gas and Oil" subtitle_number="1" subtitle_name="In General"> <level label="a"> <text>A person who is the owner or operator of any gas well may not willfully take gas from the well unless the gas is metered by a standard metering system. The cleaning or blowing of a well is not construed as a “taking” within the meaning of this section. If any person or operator producing gas from any well violates the terms of this section, the person’s or operator’s interest in the lease under which the well is being produced shall be void and subject to cancellation at the suit of the owners of the royalty interest in the leased premises on which the violation occurs.</text> </level> <level label="b"> <text>The Department shall inspect, read, or test any meters, through which natural gas is being measured upon the request of any lessor, lessee, operator, or royalty owner from whose land, lease, or royalty interest, natural gas is being produced.</text> </level> </section> <section article="gen" article_name="Environment" number="14-120" title_number="14" title_name="Gas and Oil" subtitle_number="1" subtitle_name="In General"> <level label="a"> <text>For each offense, any person who willfully violates any provision of this subtitle is guilty of a misdemeanor and upon conviction in a court of competent jurisdiction is subject to a fine of:</text> <level label="1"> <text>Up to $50,000;</text> </level> <level label="2"> <text>An amount sufficient to cover the cost of damages resulting from all of the following caused by the permittee, including a contractor of the permittee:</text> <level label="i"> <text>Any oil or gas spill;</text> </level> <level label="ii"> <text>Any other discharge; and</text> </level> <level label="iii"> <text>Any violation of this subtitle; and</text> </level> </level> <level label="3"> <text>Costs imposed in the discretion of the court.</text> </level> </level> <level label="b"> <text>Any penalty imposed under this subtitle is in addition to any other penalties provided by law.</text> </level> </section> <section article="gen" article_name="Environment" number="14-121" title_number="14" title_name="Gas and Oil" subtitle_number="1" subtitle_name="In General"> <level label="a"> <text>The Department may make inspections as it determines necessary to ensure compliance with this subtitle.</text> </level> <level label="b"> <text>In order to carry out an inspection in accordance with this section, the Department, or its authorized agents, may:</text> <level label="1"> <text>Conduct tests or sampling, or examine books, papers, and records that relate to any matter under an investigation in accordance with this subtitle; and</text> </level> <level label="2"> <text>At reasonable times, enter and examine any property, facility, operation, or activity.</text> </level> </level> </section> <section article="gen" article_name="Environment" number="14-122" title_number="14" title_name="Gas and Oil" subtitle_number="1" subtitle_name="In General"> <level label="a"> <text>There is an Oil and Gas Fund.</text> </level> <level label="b"> <text>The Fund consists of:</text> <level label="1"> <text>Fees collected by the Department under § 14–105 of this subtitle;</text> </level> <level label="2"> <text>Funds appropriated by the General Assembly for deposit to the Fund;</text> </level> <level label="3"> <text>Fines and proceeds from financial assurance instruments collected by the Department in accordance with this subtitle that exceed the amount necessary to reclaim a site; and</text> </level> <level label="4"> <text>Any additional money made available from any sources, public or private, for the purposes for which the Fund has been established.</text> </level> </level> <level label="c"> <level label="1"> <text>The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="2"> <text>Notwithstanding any law to the contrary, unused money in the Fund may not revert to the General Fund.</text> </level> </level> <level label="d"> <text>The Fund shall be maintained and administered by the Department in accordance with the provisions of this subtitle and any regulations the Department adopts.</text> </level> </section> <section article="gen" article_name="Environment" number="14-123" title_number="14" title_name="Gas and Oil" subtitle_number="1" subtitle_name="In General"> <text>The Department shall use money in the Fund solely to administer and implement programs to oversee the drilling, development, production, and storage of oil and gas wells, and other requirements related to the drilling of oil and gas wells, including all costs incurred by the State to:</text> <level label="1"> <text>Review, inspect, and evaluate monitoring data, applications, licenses, permits, analyses, and reports;</text> </level> <level label="2"> <text>Perform and oversee assessments, investigations, and research;</text> </level> <level label="3"> <text>Conduct permitting, inspection, and compliance activities; and</text> </level> <level label="4"> <text>Develop, adopt, and implement regulations, programs, or initiatives to address risks to public safety, human health, and the environment related to the drilling and development of oil and gas wells, including the method of hydrofracturing.</text> </level> </section> <section article="gen" article_name="Environment" number="14-124" title_number="14" title_name="Gas and Oil" subtitle_number="1" subtitle_name="In General"> <text>Beginning November 1, 2010, the Department shall report each year to the General Assembly, in accordance with § 2–1257 of the State Government Article, on:</text> <level label="1"> <text>The status of the Fund;</text> </level> <level label="2"> <text>Revenues of and expenditures from the Fund;</text> </level> <level label="3"> <text>The efficiency of the regulatory program under this subtitle;</text> </level> <level label="4"> <text>Compliance rates within the regulatory program under this subtitle; and</text> </level> <level label="5"> <text>Based on the factors listed in items (1) through (4) of this section, the necessity to review and adjust the fee in accordance with § 14–105(d) of this subtitle.</text> </level> </section> <section article="gen" article_name="Environment" number="14-125" title_number="14" title_name="Gas and Oil" subtitle_number="1" subtitle_name="In General"> <text>The Department shall adopt regulations: </text> <level label="1"> <text>To carry out this subtitle; and</text> </level> <level label="2"> <text>To establish procedures for imposing and collecting the fees established in accordance with § 14–105 of this subtitle.</text> </level> </section> <section article="gen" article_name="Environment" number="14-201" title_number="14" title_name="Gas and Oil" subtitle_number="2" subtitle_name="Prince George's County Underground Storage Act"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Department” means the Department of the Environment.</text> </level> <level label="c"> <text>“Gas” means natural gas, whether or not processed by the removal of component parts not essential to its use for light, heat, power, or manufactured gas of any combination or mixture.</text> </level> <level label="d"> <text>“Gas storage company” means any corporation of this State, any other state, the District of Columbia, or the United States, which is engaged in supplying gas to local consumers in this State and which desires to engage in the underground storage of gas in this State in whole or in part for either direct or ultimate distribution to its consumers.</text> </level> <level label="e"> <text>“Public body” means the State, any political subdivision, or any unit of, or created by, either the State or any political subdivision.</text> </level> <level label="f"> <text>“Underground storage” or “underground storage of gas” means the storing of gas in a geological stratum or strata beneath the surface of the earth, together with all operations necessary or convenient therefor including but not limited to the following: acquisition, preparation, alteration, maintenance, utilization, and operation of an underground storage reservoir for the storage of gas together with the injection of gas into the underground storage reservoir and its withdrawal therefrom.</text> </level> <level label="g"> <text>“Underground storage reservoir” means the stratum or strata and the subsurface areas which are or are to be used for, or in connection with, the underground storage of gas.</text> </level> </section> <section article="gen" article_name="Environment" number="14-202" title_number="14" title_name="Gas and Oil" subtitle_number="2" subtitle_name="Prince George's County Underground Storage Act"> <level label="a"> <text>Subject to the limitations and provisions contained in this subtitle, a gas storage company may acquire by eminent domain the right to utilize for underground storage of gas, geological strata lying not less than 800 feet below the surface of a maximum of 12,000 acres of land in Prince George’s County. However, the 12,000 acres shall be within the area located west of highway U.S. 301 where located as of July 1, 1965; north of the Charles County boundary line; east of 76 degrees 56 minutes 30 seconds west longitude; and south of 38 degrees 45 minutes 45 seconds north latitude. The use of eminent domain in any case under this subsection shall be in accordance with the provisions of Title 12 of the Real Property Article, which are applicable to any eminent domain proceeding case under this subtitle.</text> </level> <level label="b"> <text>Subject to the limitations and provisions contained in this subtitle, a gas storage company may acquire, in Prince George’s County, by negotiation and agreement, the right to utilize for underground storage of gas, geological strata owned by any public body and lying not less than 800 feet below the surface of land, which right the public body may grant for the consideration agreed upon with the gas storage company. If the company and public body cannot agree upon the consideration, or if there is no public authority other than the General Assembly which has power to enter into the agreement, then the company may acquire the right by eminent domain, in the manner provided in Title 12 of the Real Property Article for the taking by eminent domain of private property for a public use, which provisions are applicable to any case under this subtitle. If the State is made a party, service of process shall be made upon the Attorney General.</text> </level> <level label="c"> <text>A gas storage company may acquire by eminent domain the rights provided for in subsections (a) and (b) of this section in geological strata lying not less than 800 feet below the surface of land in Prince George’s County even though this land is already devoted to a public use under authority of law, if the exercise of these rights do not materially interfere with the public use.</text> </level> </section> <section article="gen" article_name="Environment" number="14-203" title_number="14" title_name="Gas and Oil" subtitle_number="2" subtitle_name="Prince George's County Underground Storage Act"> <text>The right to take by eminent domain under § 14–202(a) and (b) of this subtitle, may not be exercised unless the gas storage company desiring the right first obtains an order from the Public Service Commission, made after a public hearing, finding the underground storage project to be in the public interest. The company also shall obtain an underground gas storage permit. A permit may not be issued without the consent of the Department.</text> </section> <section article="gen" article_name="Environment" number="14-204" title_number="14" title_name="Gas and Oil" subtitle_number="2" subtitle_name="Prince George's County Underground Storage Act"> <level label="a"> <text>In any eminent domain proceedings under § 14–202(a) and (b) of this subtitle, the owner of the land shall be compensated for the right to utilize geological strata being taken by eminent domain for the underground storage of gas, and for any commercially recoverable oil or gas not owned by the gas storage company in the strata.</text> </level> <level label="b"> <text>In any eminent domain proceedings under § 14–202(a) of this subtitle, the owner or owners in fee of the land have the right by unanimous election in their answer to have the jury make, after evidence is presented, alternate inquisitions assessing the fair value of the underground storage rights, and the fair value of the fee–simple ownership, including all improvements. On the tenth day following the date of the verdicts, the court shall enter a judgment of condemnation on the inquisition for the fair value of the underground storage rights, unless on or before the tenth day every owner shall join in an irrevocable election, filed in writing in the case, to have a judgment of condemnation entered on the inquisition for the fee–simple title to the property including all improvements, in which case the court shall enter a judgment of condemnation for the fee–simple title to the property. Unless all persons having an interest in the fee–simple title join in the election provided for, the court shall enter judgment of condemnation on the inquisition for the underground storage rights. In the event the property owner elects to have a judgment of condemnation entered on the inquisition for the fee–simple title to the property, he shall be entitled to defer final settlement for a period of time not exceeding six months from the date of the election. However, nothing in this subtitle shall prevent the gas storage company from utilizing underground storage rights during this time, subsequent to the inquisition. The property owner has the duty, during the period prior to final settlement, to maintain the property in reasonable condition, normal wear and tear excepted.</text> </level> </section> <section article="gen" article_name="Environment" number="14-205" title_number="14" title_name="Gas and Oil" subtitle_number="2" subtitle_name="Prince George's County Underground Storage Act"> <text>The right to utilize geological strata for the underground storage of gas, acquired by any gas storage company by eminent domain under § 14–202(a) and (b) of this subtitle, is subject to the right of the owner of the land or of other rights or interests, to penetrate the strata for the purpose of exploring or recovering gas not owned by the company or water, oil, or other minerals from other strata. If the owner desires to penetrate the underground gas storage reservoir in order to recover the gas, water, oil, or other minerals from a lower stratum, he may do so provided he gives the company sufficient written notice to permit proper precautions to be taken. The company, after receiving notice, at its expense and responsibility, shall supervise the penetration to assure that it is made in a manner which will not hamper or impair the operation of the underground storage reservoir, result in the pollution of gas stored there, or permit the escape of any gas.</text> </section> <section article="gen" article_name="Environment" number="14-206" title_number="14" title_name="Gas and Oil" subtitle_number="2" subtitle_name="Prince George's County Underground Storage Act"> <text>Gas injected into underground storage in Prince George’s County which remains under the surface of land in the county, unless and until it is disposed of with the consent of the gas storage company, shall remain the personal property of the company. It is not subject to production, taking, reduction to possession, waste, or interference by the owner of the surface of the land or by any other person except the company or its authorized agents. Gas injected into underground storage in Prince George’s County and which is found under the surface of any land in Anne Arundel, Calvert, Charles, and St. Mary’s counties other than in gas mains is subject to the property rights of the captor of the gas or the owner of the land, in all respects as though the gas occurred there naturally. In such a case, the owner of the land may alternatively elect to proceed against the gas storage company for his damages.</text> </section> <section article="gen" article_name="Environment" number="14-207" title_number="14" title_name="Gas and Oil" subtitle_number="2" subtitle_name="Prince George's County Underground Storage Act"> <text>For the privilege of using geological strata beneath the surface of the earth in Prince George’s County or underground storage of gas in volumes greater than the minimum volume specified, a gas storage company shall pay the county an annual underground storage use fee. The fee applies annually to all gas in storage, except the specified minimum volume, on the last day of each calendar year. It is computed at the following annual rates on the commodity charge paid for the gas by the gas storage company, as evidenced by the tariff under which the gas was purchased:</text> <text>Rate Cubic feet of gas in storage</text> <text>No fee On the first 5 billion </text> <text>2 percent On all over 5 billion but not over 10 billion </text> <text>4 percent On all over 10 billion but not over 15 billion </text> <text>6 percent On all over 15 billion but not over 20 billion </text> <text>8 percent On all over 20 billion but not over 25 billion </text> <text>10 percent On all over 25 billion.</text> </section> <section article="gen" article_name="Environment" number="14-208" title_number="14" title_name="Gas and Oil" subtitle_number="2" subtitle_name="Prince George's County Underground Storage Act"> <text>Nothing in this subtitle limits or impairs any right to exercise the power of eminent domain which may be vested in any gas storage company by any other law.</text> </section> <section article="gen" article_name="Environment" number="14-209" title_number="14" title_name="Gas and Oil" subtitle_number="2" subtitle_name="Prince George's County Underground Storage Act"> <text>Nothing in this subtitle repeals, amends, or otherwise affects any other law of the State or its political subdivisions relating to the underground storage of gas or the pollution of underground waters.</text> </section> <section article="gen" article_name="Environment" number="14-301" title_number="14" title_name="Gas and Oil" subtitle_number="3" subtitle_name="Storage of Natural or Artificial Gas and Petroleum Products in Prince George's County"> <text>“Department” means the Department of the Environment.</text> </section> <section article="gen" article_name="Environment" number="14-302" title_number="14" title_name="Gas and Oil" subtitle_number="3" subtitle_name="Storage of Natural or Artificial Gas and Petroleum Products in Prince George's County"> <text>The provisions of this subtitle apply only to the storage of natural or artificial gas and petroleum products in Prince George’s County.</text> </section> <section article="gen" article_name="Environment" number="14-303" title_number="14" title_name="Gas and Oil" subtitle_number="3" subtitle_name="Storage of Natural or Artificial Gas and Petroleum Products in Prince George's County"> <text>The Department shall prescribe rules and regulations to effectuate the provisions of this subtitle, and any permit to drill, bore, drive, dig, or otherwise conduct any operation for the storage of natural or artificial gas or petroleum products and their derivatives may contain the restrictions the Department determines necessary in the public interest to protect the waters of the State, including subsurface and percolating waters.</text> </section> <section article="gen" article_name="Environment" number="14-304" title_number="14" title_name="Gas and Oil" subtitle_number="3" subtitle_name="Storage of Natural or Artificial Gas and Petroleum Products in Prince George's County"> <text>The following regulations are additional to the regulations prescribed by the Department and do not limit the regulatory authority of the Department granted under § 14-303 of this subtitle:</text> <level label="1"> <text>Every applicant for a storage permit shall, at the time of application, file with the Department a surety bond in the amount of $1,000, payable to the Comptroller of the State on a form approved by the Department and executed by a responsible surety company authorized to do business in the State. The bond is intended to assure that necessary safety measures are maintained, and that any well or other opening used in connection with the storage project is properly sealed after abandonment of the project if this action is considered necessary by the Department to protect one or more of the natural resources of the State. Any transferee shall file a similar bond.</text> </level> <level label="2"> <text>A permeable sand or stratum containing gas, or into which gas or a liquefied petroleum derivative has been forced under pressure, may not be drilled or left open in a manner permitting an avoidable escape of gas to occur. A well connected with a storage reservoir containing either natural gas or a petroleum derivative stored under pressure, may not be situated within 50 yards of any existing building used as a residence or office.</text> </level> <level label="3"> <text>All freshwater sands penetrated in drilling to a storage reservoir shall be fully protected by cement grout placed to provide an effective seal to the nearest thick clay bed above the gas storage stratum having a thickness of at least 25 feet. In order to provide an effective seal in the nearest thick clay bed above the gas storage stratum, the clay bed shall have a thickness and other geologic properties adequate, in the opinion of the Department, to constitute sufficient protection to the potable freshwater supplies existing in any aquifers.</text> </level> </section> <section article="gen" article_name="Environment" number="14-305" title_number="14" title_name="Gas and Oil" subtitle_number="3" subtitle_name="Storage of Natural or Artificial Gas and Petroleum Products in Prince George's County"> <text>A person may not drill, bore, drive, dig, or otherwise conduct any operation for the purpose of obtaining access to a pocket or other underground area for the purpose of storing natural or artificial gas or petroleum products and their derivatives, unless a permit for the operation, construction, and storage has been first obtained from the Department. Nothing in this subtitle shall be construed to apply to the installation or maintenance of underground tanks or vessels commonly used to store these products.</text> </section> <section article="gen" article_name="Environment" number="14-306" title_number="14" title_name="Gas and Oil" subtitle_number="3" subtitle_name="Storage of Natural or Artificial Gas and Petroleum Products in Prince George's County"> <text>Every application for a permit shall be accompanied by at least two copies of an accurate map prepared by a competent engineer or geologist showing the location, extent, and depth of the proposed storage place and of all wells drilled or proposed to be drilled to the storage place. A copy of the map shall be sent to the Department and it shall review the application and map to determine the presence or absence of the danger of pollution, contamination, diversion, or depletion of subsurface and percolating waters. The Department may take the testimony of any other person. It shall decide whether the granting of any application would likely endanger the public safety, health and welfare, and in accordance with its determination, grant or deny the application.</text> </section> <section article="gen" article_name="Environment" number="14-307" title_number="14" title_name="Gas and Oil" subtitle_number="3" subtitle_name="Storage of Natural or Artificial Gas and Petroleum Products in Prince George's County"> <text>The provisions of this subtitle are enforceable by proceedings in the Circuit Court of Prince George’s County to obtain injunctive relief.</text> </section> <section article="gen" article_name="Environment" number="14-308" title_number="14" title_name="Gas and Oil" subtitle_number="3" subtitle_name="Storage of Natural or Artificial Gas and Petroleum Products in Prince George's County"> <text>Any person who violates the provisions of this subtitle is guilty of a misdemeanor and upon conviction subject to a fine of not more than $500.</text> </section> <section article="gen" article_name="Environment" number="14-401" title_number="14" title_name="Gas and Oil" subtitle_number="4" subtitle_name="Interstate Oil and Gas Compact"> <text>The Governor, for and in the name of the State of Maryland, shall join with other states in the interstate compact to conserve oil and gas, which was executed in Dallas, Texas, on February 16, 1935, and is now deposited with the Department of State of the United States, and which has been extended with the consent of Congress.</text> </section> <section article="gen" article_name="Environment" number="14-402" title_number="14" title_name="Gas and Oil" subtitle_number="4" subtitle_name="Interstate Oil and Gas Compact"> <text>The Governor, for and in the name of the State, may execute agreements for the further extension of the expiration date of the compact and to determine if, and when, it is in the best interest of the State to withdraw from the compact, upon 60 days’ notice as provided by its terms. If the Governor determines that the State should withdraw from the compact, the Governor may give the necessary notice and take all steps necessary to effect the withdrawal of the State from the compact.</text> </section> <section article="gen" article_name="Environment" number="14-403" title_number="14" title_name="Gas and Oil" subtitle_number="4" subtitle_name="Interstate Oil and Gas Compact"> <text>The Governor is the official representative of the State on the Interstate Oil Compact Commission. The Governor shall exercise and perform for the State every power and duty as a member of the Commission. The Governor may appoint an assistant representative to act in the Governor’s stead as the official representative of the State as a member of the Commission. The assistant representative provided for in the compact shall take the oath of office prescribed by the Constitution. The oath shall be filed with the office of the Secretary of State. State members shall be reimbursed for expenses incurred while actually engaged in the performance of their duties, in accordance with the Standard State Travel Regulations.</text> </section> <section article="gen" article_name="Environment" number="14-404" title_number="14" title_name="Gas and Oil" subtitle_number="4" subtitle_name="Interstate Oil and Gas Compact"> <text>Article I</text> <text>This agreement may become effective within any compacting state at any time as prescribed by that state, and shall become effective within those states ratifying it whenever any three of the states of Texas, Oklahoma, California, Kansas and New Mexico have ratified and Congress has given its consent. Any oil-producing state may become a party hereto as hereinafter provided.</text> <text>Article II</text> <text>The purpose of this compact is to conserve oil and gas by the prevention of physical waste thereof from any cause.</text> <text>Article III</text> <text>Each state bound hereby agrees that within a reasonable time it will enact laws, or if the laws have been enacted, then it agrees to continue the same in force, to accomplish within reasonable limits the prevention of:</text> <level label="a"> <text>The operation of any oil well with an inefficient gas-oil ratio.</text> </level> <level label="b"> <text>The drowning with water of any stratum capable of producing oil or gas, or both oil and gas, in paying quantities.</text> </level> <level label="c"> <text>The avoidable escape into the open air or the wasteful burning of gas from a natural gas well.</text> </level> <level label="d"> <text>The creation of unnecessary fire hazards.</text> </level> <level label="e"> <text>The drilling, equipping, locating, spacing or operating of a well or wells so as to bring about physical waste of oil or gas or loss in the ultimate recovery thereof.</text> </level> <level label="f"> <text>The inefficient, excessive or improper use of the reservoir energy in producing any well.</text> <text>The enumeration of the foregoing subjects shall not limit the scope of the authority of any state.</text> <text>Article IV</text> <text>Each state bound hereby agrees that it will, within a reasonable time, enact statutes, or if such statutes have been enacted then that [it] will continue the same in force, providing in effect that oil produced in violation of its valid oil and/or gas conservation statutes or any valid rule, order or regulation promulgated thereunder, shall be denied access to commerce; and providing for stringent penalties for the waste of either oil or gas.</text> <text>Article V</text> <text>It is not the purpose of this compact to authorize the states joining herein to limit the production of oil or gas for the purpose of stabilizing or fixing the price thereof, or create or perpetuate monopoly, or to promote regimentation, but is limited to the purpose of conserving oil and gas and preventing the avoidable waste thereof within reasonable limitations.</text> <text>Article VI</text> <text>Each state joining herein shall appoint one representative to a commission hereby constituted and designated as the Interstate Oil Compact Commission, the duty of which said commission shall be to make inquiry and ascertain from time to time such methods, practices, circumstances, and conditions as may be disclosed for bringing about conservation and the prevention of physical waste of oil and gas, and at such intervals as said commission deems beneficial it shall report its findings and recommendations to the several states for adoption or rejection.</text> <text>The commission shall have power to recommend the coordination of the exercise of the police powers of the several states within their several jurisdictions to promote the maximum ultimate recovery from the petroleum reserves of said states, and to recommend measures for the maximum ultimate recovery of oil and gas. Said commission shall organize and adopt suitable rules and regulations for the conduct of its business.</text> <text>No action shall be taken by the commission except: (1) by the affirmative votes of the majority of the whole number of the compacting states represented at any meeting, and (2) by a concurring vote of a majority in interest of the compacting states at said meeting, such interest to be determined as follows: such vote of each state shall be in the decimal proportion fixed by the ratio of its daily average production during the preceding calendar half-year to the daily average production of the compacting states during said period.</text> <text>Article VII</text> <text>No state by joining herein shall become financially obligated to any other state, nor shall the breach of the terms hereof by any state subject such state to financial responsibility to the other states joining herein.</text> <text>Article VIII</text> <text>This compact shall expire September 1, 1937. But any state joining herein may, upon sixty (60) days notice, withdraw herefrom.</text> <text>The representatives of the signatory states have signed this agreement in a single original which shall be deposited in the archives of the Department of State of the United States, and a duly certified copy shall be forwarded to the governor of each of the signatory states.</text> <text>This compact shall become effective when ratified and approved as provided in Article I. Any oil-producing state may become a party hereto by affixing its signature to a counterpart to be similarly deposited, certified, and ratified.</text> <text>Done in the City of Dallas, Texas, this sixteenth day of February, 1935.</text> </level> </section> <section article="gen" article_name="Environment" number="14-501" title_number="14" title_name="Gas and Oil" subtitle_number="5" subtitle_name="Coastal Facilities Review Act"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Coastal area” means all that land and water area lying within Anne Arundel, Baltimore, Calvert, Caroline, Cecil, Charles, Dorchester, Harford, Kent, Prince George’s, Queen Anne’s, St. Mary’s, Somerset, Talbot, Wicomico, and Worcester counties, the Chesapeake Bay, and lying seaward to the State’s territorial jurisdiction.</text> </level> <level label="c"> <text>“Construction” means any clearing, grading, excavation, building or other action that would affect the natural environment of the coastal area, or the commencement of any of these activities. This does not include any activity for the sole purpose of securing biological or geological data or other data for an economic or environmental analysis.</text> </level> <level label="d"> <text>“Department” means the Department of the Environment.</text> </level> <level label="e"> <text>“Facility” means:</text> <level label="1"> <text>Any pipeline carrying crude oil or natural gas ashore from offshore sources;</text> </level> <level label="2"> <text>Any intermediate production terminal or refinery which is designed to process at least ten thousand barrels of crude oil per calendar day;</text> </level> <level label="3"> <text>Any crude oil storage facility:</text> <level label="i"> <text>Whose total design capacity is at least 100,000 barrels;</text> </level> <level label="ii"> <text>Which occupies at least fifty acres; or</text> </level> <level label="iii"> <text>Whose average throughput is at least ten thousand barrels per calendar day;</text> </level> </level> <level label="4"> <text>Any facility for the processing, transmission, or storage of natural gas with a total design capacity for at least one billion cubic feet of gas for storage or two hundred million cubic feet for processing;</text> </level> <level label="5"> <text>Any operations base which:</text> <level label="i"> <text>Includes port and harbor facilities;</text> </level> <level label="ii"> <text>Occupies at least twenty–five acres; and</text> </level> <level label="iii"> <text>Is designed, constructed and operated as an assembly area for the storage, handling, and transport of supplies whose next and final destination is any oil and/or gas exploration, development, or production–related operation conducted in the territorial sea, contiguous zone or high seas area; or</text> </level> </level> <level label="6"> <text>Any fabrication yard which is an assembly operation used for the construction or preparation of petroleum drilling rigs, jackets or platforms, or wellhead installations, whose final destination is installation or operation in the territorial sea, contiguous zone, or high seas area.</text> </level> </level> <level label="f"> <text>“Government agencies” means the government of the United States, the State of Maryland, or any other state, their political subdivisions, units, or instrumentalities thereof, and interstate units.</text> </level> <level label="g"> <text>“Person” includes corporations, companies, associations, firms, partnerships, and joint stock companies, as well as individuals and government agencies.</text> </level> <level label="h"> <text>“Secretary” means the Secretary of the Environment.</text> </level> </section> <section article="gen" article_name="Environment" number="14-502" title_number="14" title_name="Gas and Oil" subtitle_number="5" subtitle_name="Coastal Facilities Review Act"> <level label="a"> <text>Maryland’s coastal area, which borders the Atlantic Ocean and the Chesapeake Bay, is rich in a variety of natural, commercial, recreational, industrial, and esthetic resources. These resources possess great immediate as well as potential value for the State and the nation as a whole. However, the coastal area and the fish, shellfish, and other living marine resources and wildlife contained therein are ecologically fragile. They constitute a unique, irreplaceable, natural, and esthetic resource of great economic value.</text> </level> <level label="b"> <text>Extraction of mineral resources and fossil fuels from the Baltimore Canyon Trough and elsewhere may create immediate, increasing, and competing demands upon the lands and waters of the State’s coastal area. The interests of the State and the nation require a method of resolving these competing demands which will give a high priority to the natural systems of the coastal zone and promote the public health, safety and welfare.</text> </level> <level label="c"> <text>Certain facilities associated with extraction and refining of mineral and fossil fuel resources may adversely affect the State’s interest if they are located in the coastal area without an adequate planning of their impact and without sufficient safeguards. The State, therefore, requires a system of assessing the economic, fiscal, social, cultural, and environmental impacts associated with the establishment of such facilities, as a lack of proper assessment may cause irreparable damage to the integrity of the coastal area if these facilities are established in the coastal area.</text> </level> <level label="d"> <text>Meeting the energy requirements of the State and nation and planning for the proper use or development of the coastal area is imperative. To that end the State is developing a coastal zone management plan, pursuant to the federal Coastal Zone Management Act of 1972, which will recommend permissible land and water uses within the coastal zone and which must provide for adequate consideration of the national interest in the siting of facilities necessary to meet requirements which are other than local in nature, and which must further provide for a method of assuring that local land and water use regulations within the coastal zone do not unreasonably restrict or exclude land and water uses of regional benefit. It is in the State’s interest that all parties including all units of State government, county government, the federal government, business, industry, and the public at large participate in planning the uses for Maryland’s coastal area. The completion of the plans will enable Maryland to properly use, develop, and protect the coastal area.</text> </level> <level label="e"> <text>Without adequate planning, the establishment of certain oil–related facilities in the coastal area may have an immediate impact on the environmental, economic, fiscal, social and cultural well–being of the people residing in the area where these facilities are established. Therefore, local concern should be reflected in making decisions as to location of these facilities and to that end, county governments should be actively involved in the planning for the coastal areas. If, however, the extent of oil–related facilities contemplated affects environmental, economic, social, and cultural factors beyond the borders of the particular subdivision involved, in addition to involving potential expenditure of State funds in excess of tax revenues derived from the facilities, then the State interest and the national interest become a factor in the consideration of where these oil–related facilities shall be located.</text> </level> <level label="f"> <text>The national public interest in assuring adequate facilities for the production of energy resources requires that the State and local governments promptly and expeditiously assess the impact of these facilities and determine, at the earliest practicable time, whether to grant necessary State and local authorizations.</text> </level> <level label="g"> <text>The foregoing subsections constitute the findings and intent of the General Assembly in enacting provisions for comprehensive State review prior to permitting the establishment of certain facilities within Maryland’s coastal area, and to that end this subtitle may be cited as the “Coastal Facilities Review Act”.</text> </level> </section> <section article="gen" article_name="Environment" number="14-503" title_number="14" title_name="Gas and Oil" subtitle_number="5" subtitle_name="Coastal Facilities Review Act"> <level label="a"> <text>A person may not construct, or cause to be constructed, a facility in the coastal area unless he first obtains a permit pursuant to this subtitle. However, facilities for which on-site construction, excluding site preparation, has legally begun prior to July 1, 1975 are exempt from the provisions of this subtitle.</text> </level> <level label="b"> <text>The Secretary after receiving the advisory comments of the Secretaries of Natural Resources, Business and Economic Development, and Transportation and the Secretary of the Department of Planning may adopt rules and regulations to implement the provisions of this subtitle.</text> </level> </section> <section article="gen" article_name="Environment" number="14-504" title_number="14" title_name="Gas and Oil" subtitle_number="5" subtitle_name="Coastal Facilities Review Act"> <level label="a"> <text>Any person proposing to construct a facility in the coastal area shall file an application with the Department in the form the Secretary prescribes. The application shall be accompanied by the information the Secretary requires and shall include the following information:</text> <level label="1"> <text>A project description specifying:</text> <level label="i"> <text>What is planned to be constructed, its purpose, use, location, cost, and size; and</text> </level> <level label="ii"> <text>The methods of construction, construction schedule, and operation procedure.</text> </level> </level> <level label="2"> <text>A list of all licenses, permits or other approvals required by any government unit.</text> </level> <level label="3"> <text>All information necessary or required for any application to the State or any of its units or departments, for any other permit, license or approval required for or in connection with the facility.</text> </level> <level label="4"> <text>Detailed information as to the need for the facility and facts concerning alternate site locations as may be requested by the Secretary.</text> </level> </level> <level label="b"> <text>The Department shall establish a reasonable fee schedule to reimburse the Department for the costs of filing and processing of an application required by this subtitle. The fee shall include at least the cost of the statement required by § 14–506 of this subtitle, payable in advance of any required State expenditure.</text> </level> <level label="c"> <text>All units and departments of the State shall, to the fullest extent possible, cooperate with any person proposing to construct a facility in the coastal area by supplying the person with information and assistance as he may request.</text> </level> </section> <section article="gen" article_name="Environment" number="14-505" title_number="14" title_name="Gas and Oil" subtitle_number="5" subtitle_name="Coastal Facilities Review Act"> <text>Notwithstanding any contrary provisions of this article, an application for a permit required by this subtitle shall be considered an application for all other permits or licenses required under this article for the facility and the action taken by the Secretary on the application shall be deemed to be action taken on all other permits and licenses, including wetlands licenses.</text> </section> <section article="gen" article_name="Environment" number="14-506" title_number="14" title_name="Gas and Oil" subtitle_number="5" subtitle_name="Coastal Facilities Review Act"> <level label="a"> <text>Upon the filing of an application and prior to deciding whether or not to grant the permit, a statement of the economic, fiscal, and environmental impact of the proposed facility shall be prepared by one or more appropriate parties selected by the Secretary after receiving the advisory comments of the Secretaries of Natural Resources, Commerce, and Transportation and the Secretary of Planning. The statement shall be prepared and filed within six months after selection of the appropriate party or parties. The statement, with written background and supporting material, shall be available to the public. The time for filing the statement may be extended by the Secretary for up to but not more than an additional 12 months for good cause.</text> </level> <level label="b"> <text>The statement shall include, but not be limited to, the following:</text> <level label="1"> <text>An inventory of existing economic and environmental conditions at the project site and in the immediate area;</text> </level> <level label="2"> <text>A project description of what is to be constructed, and the manner and construction schedule and the method of construction;</text> </level> <level label="3"> <text>A complete description of the proposed facility including at least its anticipated size, effluent load, and production levels;</text> </level> <level label="4"> <text>An assessment of the probable economic, fiscal, and environmental impact of the project upon the natural environment of the project site coastal area and the immediate area;</text> </level> <level label="5"> <text>Recommendations for minimizing any adverse economic, fiscal, or environmental impacts;</text> </level> <level label="6"> <text>An evaluation of the need for the facility and the relative merit of other possible sites; and</text> </level> <level label="7"> <text>In the case of a refinery, a description of the manner of transportation of the feed stock and the product of the crude oil.</text> </level> </level> <level label="c"> <text>The application shall not be processed further nor shall the analysis required be undertaken until the county government wherein the facility is proposed to be located or wherein the pipeline will terminate, has certified to the Department that all local land use classifications, including zoning, special exceptions, variances or conditional uses, necessary for the location and operation of the proposed facility have been or will be granted. If the county government in its discretion stays the certification and so notifies the Department that it will continue its stay until the analysis is completed then, and only in that event may the application be processed and the analysis prepared as set forth under this subtitle.</text> </level> </section> <section article="gen" article_name="Environment" number="14-507" title_number="14" title_name="Gas and Oil" subtitle_number="5" subtitle_name="Coastal Facilities Review Act"> <level label="a"> <text>Further action may not be taken by the Secretary under this subtitle without completion of the statement required under § 14-506 of this subtitle, and its being made available to the public, and until the county government, where the proposed facility is to be located has certified to the Department that all necessary local approval has been or is reasonably expected to be extended for commencement of construction.</text> </level> <level label="b"> <text>Not more than 60 days after the statement is completed, the Department shall hold at least one public hearing in the county in which the facility or any part of it is situated to solicit the views of the public about the permit application. Prior to the public hearing the Department shall make the statement available to the public. In addition, any comments on the statement prepared by the Department or any other State department, any proposed permits to be issued by any State agency to the applicant, any conditions proposed by the Department prior to granting a permit, and any other pertinent information shall be made available to the public prior to the hearing.</text> </level> <level label="c"> <text>The Department shall give notice of the public hearing by furnishing the same to the appropriate State and local government units as well as publishing notice in a newspaper of statewide circulation and in a newspaper published in or having general circulation in each affected county.</text> </level> </section> <section article="gen" article_name="Environment" number="14-508" title_number="14" title_name="Gas and Oil" subtitle_number="5" subtitle_name="Coastal Facilities Review Act"> <level label="a"> <text>Within 90 days following the completion of the public hearing under § 14–507 of this subtitle, and after receiving the advisory comments and recommendations of the Secretaries of Natural Resources, Commerce, and Transportation and the Secretary of Planning, the Secretary shall decide whether to grant, grant conditionally, or deny the permit. The Secretary’s decision shall be in writing and based upon the economic and environmental statement, the public hearing record, and a determination that the applicant has shown satisfactorily that the facility:</text> <level label="1"> <text>Conforms with and meets all applicable air, water, noise, and solid waste laws of the State as determined and certified in writing by the appropriate State unit with jurisdiction over these laws;</text> </level> <level label="2"> <text>Conforms with adopted or approved county or local land use planning and the official county or local comprehensive zoning map;</text> </level> <level label="3"> <text>Conforms with the State development plan, if such plan has been lawfully approved and adopted;</text> </level> <level label="4"> <text>Would have no material adverse effect upon the natural environment of the area, its scenic or natural beauty, rare or irreplaceable natural resources, or unique historic sites;</text> </level> <level label="5"> <text>Would not be so located or constructed as to have a material adverse effect upon the public health, safety, or welfare;</text> </level> <level label="6"> <text>Would not be a potential or immediate undue burden on the water supply of the site or region;</text> </level> <level label="7"> <text>Would not materially contribute to an extant level of undue environmental degradation or resource exhaustion;</text> </level> <level label="8"> <text>Conforms with any coastal zone management program developed by the State of Maryland pursuant to the federal Coastal Zone Management Act of 1972;</text> </level> <level label="9"> <text>Would have no material adverse effect upon critical areas identified and designated pursuant to § 5–611 of the State Finance and Procurement Article and Title 1, Subtitle 4 or Title 3 of the Land Use Article;</text> </level> <level label="10"> <text>Would not impose, directly or indirectly, a substantial burden on existing State, regional, or county public facilities beyond their respective capacities, or that new public facilities, if necessary, either:</text> <level label="i"> <text>Would not be completed in time to serve the facility; or</text> </level> <level label="ii"> <text>Would be inadequate to serve the facility without causing overloading of the public facilities; and</text> </level> </level> <level label="11"> <text>Evidences fewer undesirable environmental, economic, fiscal, and cultural consequences in its specific or general proposed location than other specific or general locations.</text> </level> </level> <level label="b"> <level label="1"> <text>The Secretary shall adopt regulations as provided in this subsection.</text> </level> <level label="2"> <text>Procedural regulations adopted under this subsection shall:</text> <level label="i"> <text>Provide for notice to interested persons of any decision to issue or deny a permit; and</text> </level> <level label="ii"> <text>Permit a person to file a petition for judicial review in accordance with the provisions of § 5–204 of this article.</text> </level> </level> </level> <level label="c"> <text>The Department shall periodically inspect, and the applicant shall allow such inspection, to determine if the terms of the granted permit are being met.</text> </level> </section> <section article="gen" article_name="Environment" number="14-509" title_number="14" title_name="Gas and Oil" subtitle_number="5" subtitle_name="Coastal Facilities Review Act"> <level label="a"> <text>A request for judicial review of the Secretary’s action on any application shall be made within 30 days after the decision has been rendered. Proceedings shall be filed in the circuit court of any county having jurisdiction in which the facility or any part of it is to be situated.</text> </level> <level label="b"> <text>A request for judicial review may be made only by an aggrieved party, by a properly designated official of the county government where the proposed facility is to be located, or by the Department of Planning pursuant to § 5-611 of the State Finance and Procurement Article.</text> </level> <level label="c"> <text>In order to expedite judicial review, any court of the State, either at the trial or appellate level, which acquires jurisdiction over any legal challenge to the Secretary’s action on any application shall give highest priority to such proceeding in the scheduling of appropriate hearings and trials and in the respective court’s deliberations.</text> </level> </section> <section article="gen" article_name="Environment" number="14-510" title_number="14" title_name="Gas and Oil" subtitle_number="5" subtitle_name="Coastal Facilities Review Act"> <level label="a"> <text>Any person who violates any provision of this subtitle may be enjoined by a court of competent jurisdiction upon application of the Department acting through the Attorney General.</text> </level> <level label="b"> <text>Any person who violates any provision of this subtitle or any regulation, permit, or order issued thereunder, is liable to a penalty not exceeding $10,000, as well as being subject to being enjoined as provided in subsection (a) of this section. The monetary penalty thus provided may be recovered in a civil action by the Department through the Attorney General.</text> </level> </section> <section article="gen" article_name="Environment" number="14-511" title_number="14" title_name="Gas and Oil" subtitle_number="5" subtitle_name="Coastal Facilities Review Act"> <level label="a"> <text>This subtitle shall be liberally construed to effectuate its intents and purposes.</text> </level> <level label="b"> <text>Nothing in this subtitle may be construed to be in derogation of any powers or State laws in existence on July 1, 1975, but shall be regarded as supplemental and in addition to powers conferred by other laws.</text> </level> </section>