House File 128 - Introduced HOUSE FILE 128 BY ISENHART , KELLEY , WESSEL-KROESCHELL , LENSING , STECKMAN , ANDERSON , and MASCHER A BILL FOR An Act relating to permits for the drilling of a well for oil 1 or gas utilizing hydraulic fracturing and providing for the 2 establishment of fees. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1188HH (6) 85 tm/nh

H.F. 128 Section 1. Section 458A.2, Code 2013, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 7A. “Hydraulic fracturing” or “fracking” 3 means the extraction of oil or gas pursuant to the propagation 4 of fractures in the earth’s surface through the injection of a 5 pressurized fluid to increase extraction rates. 6 Sec. 2. Section 458A.5, Code 2013, is amended to read as 7 follows: 8 458A.5 Drilling permit required. 9 1. It is unlawful to commence operations for the drilling 10 of a well for oil or gas or the production of metallic minerals 11 or to commence operations to deepen any well to a different 12 geological formation without first giving the director notice 13 of intention to drill, and without first obtaining a permit 14 from the director, under rules prescribed by the department 15 and paying to the department a fee established by rule of the 16 department for the well. The fee shall be deposited in the 17 general fund of the state. 18 2. In addition to the permit fee established pursuant 19 to subsection 1, the commission shall adopt rules for a fee 20 schedule for costs associated with the adoption of rules 21 under section 458A.5A, the issuance of permits for drilling 22 as described in section 458A.5A, and the enforcement of rules 23 adopted pursuant to section 458A.5A. The rules shall include 24 requirements for a payment agreement with permit applicants and 25 quarterly payment schedules. Rules pursuant to this subsection 26 shall be adopted prior to the adoption of rules pursuant to 27 section 458A.5A. 28 Sec. 3. NEW SECTION . 458A.5A Hydraulic fracturing —— rules. 29 1. The director shall not issue a permit pursuant to section 30 458A.5 for the drilling of a well for oil or gas utilizing 31 hydraulic fracturing unless rules have been adopted by the 32 commission as provided under subsection 2. However, the 33 commission shall adopt rules for purposes of this section only 34 upon request by a person intending to apply for a permit for 35 -1- LSB 1188HH (6) 85 tm/nh 1/ 3

H.F. 128 drilling as described in this subsection. The commission shall 1 not adopt rules pursuant to this section using emergency rules 2 procedures under chapter 17A. 3 2. At a minimum, rules adopted by the commission shall 4 include all of the following: 5 a. An applicant shall identify all sites for proposed 6 drilling. 7 b. An applicant shall disclose all information required 8 as part of the hydraulic fracturing chemical registry of the 9 ground water protection council and the interstate oil and gas 10 compact commission. 11 c. An applicant shall disclose the total volume of fluid 12 used in the hydraulic fracturing treatment. 13 d. An applicant shall disclose each chemical ingredient 14 that is part of the hydraulic fracturing treatment and that is 15 subject to the requirements of 29 C.F.R. § 1910.1200(g)(2), 16 as provided by a service company, chemical supplier, or by 17 the applicant, if the applicant provides its own chemical 18 ingredients. 19 e. Prior to conducting hydraulic fracturing, an applicant 20 shall perform suitable mechanical integrity testing. 21 f. An applicant shall not drill in environmentally sensitive 22 areas. 23 g. An applicant shall use appropriate setbacks from 24 environmentally sensitive areas and from schools, residences, 25 water wells, and wildlife habitat to protect such areas. 26 h. An applicant must provide notice to landowners in close 27 proximity to a drilling location. The notice shall include all 28 information required by the department. 29 i. Prior to drilling, an applicant shall conduct baseline 30 water testing of groundwater and surface water in the area of 31 the drilling as required by the department. 32 j. An applicant must use well design and construction 33 standards that reflect current technological advancements. 34 k. An applicant must use closed loop systems, including the 35 -2- LSB 1188HH (6) 85 tm/nh 2/ 3

H.F. 128 use of closed tanks, to impound flowback water. 1 l. An applicant shall not cause an immediate or prospective 2 adverse impact on water supply sources. 3 m. An applicant shall not cause an adverse impact on the 4 health or safety of an employee, including but not limited to 5 protecting against chemical exposure and exposure to airborne 6 particulates. 7 EXPLANATION 8 This bill relates to permits for the drilling of a well for 9 oil or gas utilizing hydraulic fracturing. 10 The bill prohibits the director of the department of natural 11 resources from issuing a drilling permit for the drilling of a 12 well for oil or gas utilizing hydraulic fracturing unless rules 13 have been adopted by the environmental protection commission 14 relating to the use of hydraulic fracturing in drilling. 15 The bill requires the commission to adopt hydraulic 16 fracturing rules only if a request for such rules is made by 17 a person intending to apply for a drilling permit. Emergency 18 rule procedures are prohibited. 19 The bill requires the commission to adopt a fee schedule 20 for costs associated with the adoption of rules related to 21 hydraulic fracturing, the issuance of permits for drilling 22 using hydraulic fracturing, and the enforcement of rules 23 adopted for hydraulic fracturing. 24 -3- LSB 1188HH (6) 85 tm/nh 3/ 3