Assigned to CANR                                                                                                     FOR CAUCUS & FLOOR ACTION

 

 

 

ARIZONA STATE SENATE

Phoenix, Arizona

 

REVISED

FACT SHEET FOR H.B. 2492

 

oil and gas regulation

 

Purpose

 

Modifies the duties operation of the Arizona Geological Survey (Survey) and the Oil and Gas Conservation Commission (Commission), relating to publishing the results of all geological research and investigation it undertakes, inspections of wells and the inspection of operator records.

 

Background

           

The Commission was formed in 1959 and existed as a separate agency until 1992 when it was combined with the Survey for administrative and staff support.  The Commission consists of the State Land Commissioner as an ex officio member, and five members appointed by the Governor. No more than three members can be from the same political party.  The Commission has jurisdiction and authority over all persons and property deemed necessary to administer and enforce provisions relating to the conservation of oil and gas.  The Commission or its representative may at any time enter upon property and inspect wells drilled for oil and gas, and well records, and control property, machinery and appliances necessary to gauge the wells.

 

            The Survey is established with offices located in proximity to the University of Arizona.  The Governor appoints a state geologist to be the administrative head of the Survey and to serve at the pleasure of the Governor.  The Survey investigates, describes and interprets the geological setting of Arizona, including its natural hazards and limitations, its natural attributes and its mineral resources.  The Survey performs and archives original research to promote public understanding of Arizona’s geologic resources and natural setting.  Furthermore, the Survey conducts research and development activities concerning the exploration for the mineral resources of Arizona, and publishes in the form of bulletins, circulars, maps and other related series the results of all geological and related research and investigation it undertakes.

 

This Legislation prohibits the Survey from publishing the results of all geological and related research and investigation it undertakes without consulting with the operator and obtaining approval of the scope of work, and allows rather than requires, the state geologist or the state geologist’s designee  to enter property and inspect wells and control property, machinery and appliances necessary to gauge the wells.  Furthermore, H.B. 2492  requires the Commission to provide 60 days’ notice to the operator before records become subject to inspection, and requires rather than allows at the operators request to extend the confidential period for no more than two years from the date of the request.

 

There is no discernable fiscal impact to the general fund associated with this legislation.

 

Provisions

 

1.      Eliminates the requirement that the Survey publish in the form of bulletins, circulars, maps and other related series or otherwise make available to state agencies, government officials, industry and the public the results of all geological and related research and investigation it undertakes.

 

2.      Eliminates the authority of the state geologist or the state geologist designee, at any time, to enter upon property and inspect wells drilled for oil, gas, geothermal resources or helium and well records and the requirement to control property, machinery and appliances necessary to gauge the wells.

 

3.      Allows the state geologist to publish in the form of bulletins, circulars, maps and other related research and investigation undertaken by the Survey.

 

4.      Prohibits a publication from including any confidential information. Requires the state geologist to consult with the operator and obtain the approval of the scope of work for the publication before the state geologist releases any proposed publication pertaining to a project regulated by the Commission.

 

5.      Excludes a temporarily abandoned well from the definition of a completed well.

 

6.      Allows administrative staff from the Commission to, at any time, enter upon property and inspect wells drilled for oil or gas, and well records, and control property, machinery and appliances necessary to gauge the wells.

 

7.      Requires the Commission provide 60 days’ notice to the operator before records become subject to inspection.

 

8.      Requires, rather than allows, the Commission at the operator’s request to extend the confidential period if the operator can provide credible evidence that disclosure of the information is likely to cause harm, rather than substantially harm, to the operators competitive position for not more than two years from the date of the request.

 

9.      Requires the Commission to adopt revised administrative rules no later than January 1, 2001 to facilitate the interstate oil and gas operations.

 

10.  Makes technical and conforming corrections

 

11.  Provides for a general effective date.

 

Amendments Adopted by Committee

 

1.      Clarifies that before the state geologist releases any proposed publication pertaining to a project regulated by the commission, the state geologist must consult with the operator and obtain the approval of the scope of work for the publication.

 

House Action                                                               Senate Action

NR                   2/2/00              DPA    4-0-0-2-0        CANR             3/9/00              DPA    8-0-1

3rd Read           2/29/00                        55-0-5-0

 

 

 

Prepared by Senate Staff

March 13, 2000