Hydraulic fracturing disclosure requirements.

WORKING DRAFT
2013
STATE OF
WYOMING
13LSO-0358

SENATE FILE
NO.

SF0157

Hydraulic fracturing disclosure requirements.

Sponsored by:
Senator(s) Esquibel, F.

A BILL

for

AN ACT relating to
oil and gas; requiring the disclosure of

hydraulic fracturing fluids used in
the hydraulic fracturing process; providing for the classification of a hydraulic fracturing treatment as a trade secret as specified; granting rulemaking authority; specifying applicability; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1
.

W.S. 30
‑
5
‑
129 is created to read:

30
‑
5
‑
129.

Disclosure of hydraulic fracturing treatment fluid.

(a)

In addition to all other requirements of this act, t
he commission
shall:

(
i
)

Prior to issuing a permit to drill an oil and gas well, r
equire an operator of a well on which a hydraulic fract
uring treatment is to be performed to provide information in a format

as prescribed by the commission
with regard to
the well, including:

(A)

T
he total volume of water
expected to be
used in the hydraulic fracturing treatment; and

(B)

The chemical additives and
compounds
of each chemical ingredient
to be mixed and injected
into the well

for each stage of the
hydraulic fracturing
program
, including
:

(I)

F
luid identified by additive type;

(II
)

The chemical compound name and chemical abstracts s
ervice (CAS) number
for each additive used
;

(III
)

The proposed rate or
concentration of each chemical ingredient during each stage of the hydraulic fracturing treatment program.

(ii)

Prohibit the
injection of volatile organic compounds
or hazardous substances
into groundwater
and into any well when the health, safety and welfare of the public will be adversely affected by the injection of volatile organic compounds or hazardous substances;

(iii)

Require the owner or operator of a well receiving a hydraulic fracturing treatment to p
rovide
upon the completion of the well a list
of all chemical ingredients
injected into the well and the amount of each chemical injected;

(iv)

R
equir
e

the owner or o
perator
of the well, prior to the injection of hydraulic fracturing treatment fluid,
to perform a suitable mechanical integrity test of the casing or of the casing-tubing annulus or
other mechanical integrity tests as prescribed by rules and regulations of the commission;

(v)

Require the owner or operator of the well to
provide
the commission with the
geological names, geological description and depth of the formation into which
hydraulic fracturing treatment fluids are to be injected;
and

(vi)

Require
the owner or operator of the well to provide any additional information concerning the hydraulic fracturing treatment the commission finds is necessary to prote
ct the public and the resource.

(b)

The commission shall require a service company that performs hydraulic fracturing treatment on a well or a supplier of an additive used in a hydraulic fracturing treatment to provide the owner or operator of the well with the information necessary to comply with this section.

(c)

The environmental quality council, through the department of environmental quality, water quality division
,
shall promulgate rules and regulations requiring
the owner or operator
of a
pad from which multiple wells are drilled
to provide analysis of the chemical components of all potable groundwater aquifers through which their wells pass prior to the
completion of the wells, provide
d
:

(
i
)

Testing shall be done on every new well or new
pad from which multiple wells are drilled
provided that all of the potable groundwater aquifers through which a well will pass are tested;

(ii)

Testing shall be conducted in a manner consistent with accepted standards for groundwater testing and monitoring; and

(iii)

Groundwater chemical component data
collected shall be of sufficient quality and quantity to provide a scientifically defensible record of the ambient
groundwater quality
in a defined geographic area
prior to the
completion of a well
.

(
d
)

Subject to this subsection, information provided pursuant to this section shall be made available to the public. The commission
shall
by rule
prescribe a process by which an entity required to comply with
this section may
declare the identity and amount of the chemical ingredient
s
used in a
hydraulic fracturing treatment
a trade secret
. The commission shall only withhold public disclosure of the chemical components of a hydraulic fracturing treatment upon a finding by clear and convincing evidence that:

(
i
)

Public disclosure will preclude
an
economic
advantage or an opportunity to obt
ain an economic advantage to the operator or service company

claiming the trade
secret
over those who do not
know or use the hydraulic fracturing treatment; and

(ii)

Treatment of the hydraulic fracturing treatment as a trade secret will not adversely affect the health, welfare and safety of the citizens of Wyoming
.

(
e
)

Owners, operators and service companies claiming an entitlement to treatment of information as a trade secret shall disclose the chemical c
omponents of a hydraulic fracturing treatment
to the commission as specified in this section. The commission shall treat such a hydraulic fracturing treatment as confidential as provided by
W.S. 16
‑
4
‑
203(
d)(v)
until the commission finds that the hydraulic fracturing treatment is not a protected trade secret. The commission shall disclose the chemical
components of a hydraulic fracturing treatment
in cases where immediate disclosure of the hydraulic fracturing treatment is necessary to protect human life, safety and welfare.

(
f
)

Only the following persons
may challenge a claim of entitlement to
treatment of information as a
trade secret
protection under subsection (c)

of this section
:

(
i
)

T
he landowner on whose property the
hydraulically fractured
well is located;

(ii)

A
landowner who owns property adjacent to
property
where
the relevant well is located
;

(iii)

A
departmen
t or agency of the
state with jurisdiction over a matter to which the c
laimed trade secret is relevant; and

(iv)

Any
person who can prove by a preponderance of the evidence a direct effect from the hydraulic fracturing treatment in question.

Section 2
.

W.S. 30
‑
5
‑
101(
a) by creating new paragraphs (xi) through (xiii) is amended to read:

30
‑
5
‑
101.

Definitions.

(a)

As used in this act unless the context otherwise requires:

(
x
i)

"
Hydraulic fracturing
"
means

the process of directing pressurized liquids, containing water,
proppant

and any added chemicals, to penetrate ti
ght sand, shale
or coal formations that involve high rate, extended back flow to expel fracture fluids and sand during
completions and well
workovers
;

(
x
ii)

"
Hydraulic fracturing treatment
"
means
mixing and injecting pressurized liquids,
water,
pr
oppant
and any added chemicals into a well to achieve hydraulic fracturing;

(xiii)

"
Proppant
"
means
a material, such as grains of sand, ceramic or other particulates, which
are added to a hydraulic fracturing treatment to
prevent the fractures
created by the treatment
from closing.

Section 3
.

This act shall apply to all oil and gas
wells permitted, but not completed on or
after
April 1, 201
3
.

Section 4
.

This act is effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.

(END)

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SF0157