| 65 | | - | Be it enacted by the Legislature of the State of Arizona: Section 1. Heading change The article heading of title 27, chapter 4, article 1, Arizona Revised Statutes, is changed from "production and conservation" to "oil and gas conservation commission". Sec. 2. Section 27-501, Arizona Revised Statutes, is amended to read: START_STATUTE27-501. Definitions In this article, unless the context otherwise requires: 1. "Certificate of clearance" means a permit approved and issued or registered by the commission for transportation or delivery of oil, gas or oil and gas products. 2. "Certificate of compliance" means a certificate issued by the commission prior to connection of an oil or gas well with a pipeline, showing compliance with the conservation laws of this state and conservation rules and orders of the commission. 3. "Commission" or "commissioner" means the oil and gas conservation commission. 4. "Completed well" means a well that meets any of the following conditions: (a) Has produced or is ready to produce new formation hydrocarbons or gases. (b) Has been declared a dry hole or plugged and abandoned. (c) Has been otherwise readied for operation as in the case of injection and service wells. 5. "Developed area" or "developed unit" means a drainage unit having a completed well capable of producing oil or gas in paying quantities. 6. "Drainage unit" or "drilling unit" means the maximum area in a pool which may be drained efficiently by one well to produce the reasonable maximum amount of recoverable oil or gas in the area. 7. "Field" means the general area which that is or appears to be underlaid by not less than one pool, including underground reservoirs containing oil or gas, or both. 8. "Fund" means the state general oil and gas conservation commission fund ESTABLISHED by section 27-528. 9. "Gas" means natural gas, casinghead gas, all other hydrocarbons not defined as oil, carbon dioxide and helium or other substances of a gaseous nature. Natural gas and casinghead gas are further defined as follows: (a) "Natural gas" means any combustible gas or vapor composed chiefly of hydrocarbons occurring in gaseous or vapor phase at initial reservoir conditions. (b) "Casinghead gas" means any gas or vapor indigenous to an oil stratum and produced from such stratum with oil. 10. "Illegal oil" and "illegal gas" means oil or gas produced within the state from any well during any time in which the well has produced more than the amount allowed by law or any rule or order of the commission or the production of which causes waste. 11. "Illegal product" means any product derived, in whole or in part, from illegal oil or gas. 12. "Net drainage" means drainage not equalized by counterdrainage. 13. "Oil" means crude petroleum oil and all other hydrocarbons, regardless of gravity, which that are produced at a well in liquid form by ordinary production methods and which that are not the result of condensation of gas. 14. "Owner" means the person having the right to drill into, produce and appropriate production of oil or gas, or both, from a pool. 15. "Person" includes a corporation, association, partnership, receiver, trustee, guardian, executor, administrator, fiduciary or representative or any group acting as a unit and includes any department, agency or instrumentality of the state or any of its governmental subdivisions. 16. "Pool" means an underground reservoir containing a common accumulation of oil or gas, or both, and includes each zone of a general structure completely separated from any other zone in the structure. 17. "Producer" means the owner of a well capable of producing oil or gas. 18. "Product" means oil, gas or any product, by-product, mixture or blend of oil or gas. 19. "Royalty owner" means a person who possesses an interest in the production but who is not an owner. 20. "Waste" includes: (a) Physical waste, as that term is generally understood in the oil and gas industry. (b) The inefficient, excessive or improper use of or the unnecessary dissipation of reservoir energy. (c) The locating, spacing, drilling, equipping, operating or producing of any oil or gas well or wells in a manner which that causes or tends to cause reduction in the quantity of oil or gas ultimately recoverable from a pool under prudent and proper operations or which that causes or tends to cause unnecessary or excessive surface loss or destruction of oil or gas. (d) The inefficient storing of oil or gas. (e) The production of oil or gas in excess of transportation or marketing facilities. (f) The production of oil or gas when it is unprofitable to dispose of such production. 21. "Well" includes any hole drilled or spudded in for the purpose, with the intention or under the representation of penetrating oil or gas bearing strata or of penetrating any strata in search of stratigraphic data pertinent to the location of oil or gas bearing strata, whether or not in either case oil or gas is actually discovered, any hole used in connection with the underground storage of hydrocarbon substances, whether liquid or gaseous, any hole used in connection with a process to inject any substance for purposes of disposal or to increase recovery, any hole used for the purpose of secondary or tertiary recovery and any hole used for the purpose of pressure maintenance. The commission may, as it considers to be in the best interests of the this state, determine that any hole drilled or spudded in shall be included within this definition to the extent necessary for the administration and enforcement of the rules required by section 27-516. The determination of the commission shall be final in any circumstance involving the question of purpose, intent or representation, except that the determination shall be subject to appeal as provided by section 27-520. END_STATUTE Sec. 3. Section 27-513, Arizona Revised Statutes, is amended to read: START_STATUTE27-513. Permit to drill well Before a person desiring to may drill a well in search of oil or gas, the person shall notify the commissioner on a form prescribed by the commissioner, and shall pay a fee of twenty-five dollars as prescribed by the commissioner for each well. Upon On receipt of notification and the fee, the commissioner shall promptly issue the person a permit to drill, unless drilling the well is contrary to law or to a rule, regulation or order of the commissioner. Drilling the well is prohibited until a permit to drill is obtained in accordance with the provisions of this section. END_STATUTE Sec. 4. Section 27-514, Arizona Revised Statutes, is amended to read: START_STATUTE27-514. Commission; appointment; terms; compensation A. The oil and gas conservation commission is established in the department of environmental quality. The department of environmental quality shall provide staff support to the commission to administer this chapter. B. The commission shall consist of the state land commissioner ex officio who shall have no vote, and five members to be appointed by the governor, not more than three of whom shall be of the same political party. The appointive members shall be United States citizens and shall have been residents of this state for not less than the five years immediately preceding their appointment. Three members of the commission shall constitute constitute a quorum for the transaction of business. C. Appointments shall be are for a full term of five years and expire on the third Monday in January in the appropriate year. D. Appointive members of the commission shall receive compensation as determined pursuant to section 38-611 for each day actually spent in the performance of performing official duties. END_STATUTE Sec. 5. Section 27-515, Arizona Revised Statutes, is amended to read: START_STATUTE27-515. Administration; powers of the commission; fees A. The commission shall administer and enforce this article and other laws relating to conservation of oil and gas. The commission and administrative staff, at any time, may enter property and inspect wells drilled for oil or gas and well records, and shall control property, machinery and appliances necessary to gauge the wells. B. The commission may: 1. Administer oaths to a witness in any hearing, investigation or proceeding held under this article or any other law relating to conservation of oil and gas. 2. Issue subpoenas requiring attendance and testimony of witnesses and production of books, papers and records deemed material or necessary, and direct service of subpoenas by a sheriff or other officer authorized by law to serve process. 3. Prescribe rules and do all acts necessary or advisable to carry out this article. 4. Collect fees to cover the costs of services, including reproduction of records or any portion of records and copies of rules. The monies collected are not subject to section 27-523 but shall be deposited, pursuant to sections 35-146 and 35-147, by the commission in the fund from which the expenditure was originally made. 5. Publish technical maps, cross sections and reports and sell these materials for fees that will cover the costs incurred in their preparation, reproduction and distribution. C. The commission may enter into cooperative agreements with agencies of the United States government, with agencies of state or local government or with Indian tribes to protect the fresh water supplies of this state from contamination or pollution brought about by the drilling of any well or for any other purpose of this article. D. The commission may apply for and accept gifts, devises and donations of books, well records, maps or other materials. All donated materials shall become public records. E. Monies collected under subsection B, paragraph 5 of this section are not subject to section 27-523 but shall be deposited, pursuant to sections 35-146 and 35-147, in the permit administration fund established by section 49-455 and shall be used to prepare, reproduce and distribute further publications. END_STATUTE Sec. 6. Section 27-517, Arizona Revised Statutes, is amended to read: START_STATUTE27-517. Hearings; reporter; fees A. Any interested person shall, by written request, have the right to have may request the commissioner to call a hearing for the purpose of taking to take action in respect to any matter within the jurisdiction of the commissioner. Hearings shall be held at the time and place the commissioner directs, and any person having an interest in the subject matter of the hearing may appear and be heard. Upon On receipt of the request, the commissioner shall promptly call a hearing, and, not more than thirty days thereafter shall take action with regard to the matter as he the commissioner deems appropriate. The request for hearing shall be accompanied by a fee of fifty dollars established by the COMMISSIONER. B. The commissioner shall prescribe rules of order and procedure in hearings or other proceedings held under this article. The commissioner shall appoint a competent shorthand reporter to be present throughout all public hearings. The reporter shall be sworn by the commissioner faithfully to perform the duties of a reporter. The commissioner shall have the same control and authority over the reporter as the judge of the superior court exercises over a court reporter, and the duties of the reporter shall, insofar as applicable, be the same as those fixed by law for a court reporter. C. As soon as possible following the hearing, the commission shall bill the person requesting the hearing for the total cost of publication for the notices of such the hearing and the total cost of the court reporter's fees less the original fifty dollar fee established by the commissioner. The requesting party, shall within ten days after receipt of the billing by the commission, shall reimburse the commission the amount of money so billed or be subject to the penalties as prescribed in subsection A of section 27-527, subsection A. The money so monies collected by the commission shall not be are subject to section 27-523 but shall be deposited, pursuant to sections 35-146 and 35-147, by the commission in the fund from which the expenditure was originally made. END_STATUTE Sec. 7. Section 27-523, Arizona Revised Statutes, is amended to read: START_STATUTE27-523. Deposit of monies; expenses A. Monies collected by the commissioner under this article shall be deposited, pursuant to sections 35-146 and 35-147, in the fund. B. Expenses incident to the administration of this article shall be paid from the state general fund, subject to legislative appropriation. END_STATUTE Sec. 8. Section 27-524, Arizona Revised Statutes, is amended to read: START_STATUTE27-524. Enforcement A. When it appears that a person is violating or threatening to violate any provision of this article, or a rule, regulation or order made pursuant to this article, and such the person fails or refuses, on notice by the commissioner, to desist from such the violation or threat of violation, the commissioner may do either of the following: 1. Bring an action in the superior court in the county where the offending person resides, or in the county in which the violation is alleged to have occurred or is threatened, to restrain the person from continuing the violation or from carrying out a threat of violation. 2. on the majority vote of the commission, restrain the person from continuing the violation or from carrying out a threat of violation. B. The commissioner may, without bond, obtain a prohibitory or mandatory injunction, including a temporary restraining order and preliminary injunction, and, where appropriate, an injunction restraining the defendant from moving or disposing of illegal oil or gas or an illegal product. Upon On filing the action, a summons directed to such the person may be delivered to the sheriff of any county in this state for service. C. If the commissioner fails to bring an action within ten days to enjoin a threatened or actual violation of any statute relating to conservation of oil and gas, or of any provision of this article, or a rule, regulation or order made pursuant to this article, any person or party in interest that is adversely affected by the threatened or actual violation who has notified the commissioner in writing thereof and requested the commissioner to file the action may bring the action in the superior court of in any county in which the commissioner might have brought the action to prevent the threatened or actual violation. The commissioner shall be made a party to the action. D. If the court orders that injunctive relief be granted, then the commissioner shall be substituted for the person who brought the action, and the injunction shall issue as if the commissioner had at all times been the plaintiff. E. The owner or operator is responsible for the full cost of plugging each dry or abandoned well. If the owner or operator fails to properly plug and abandon the well, the commission may: 1. Forfeit the bond and use the money monies for that purpose. 2. Sue the owner or operator for costs in excess of the amount of the bond and the owner or operator is liable for that amount. END_STATUTE Sec. 9. Section 27-527, Arizona Revised Statutes, is amended to read: START_STATUTE27-527. Violation; classification A. Any person who violates any provision of this article, or any rule, regulation or order of the commission, is subject to a civil penalty of not more than one thousand dollars as prescribed by the Commissioner for each violation and for each day the violation continues. B. Any person who, with the intent to evade this article, or any rule, regulation or order of the commission, who knowingly makes or causes to be made a false entry in any application, report, record, account or memorandum required by this article or by any such rule, regulation or order, or who knowingly omits or causes to be omitted from any application, report, record, account or memorandum, full, true and correct entries as required by this article, or by any such rule, regulation or order, or who knowingly removes from this state, or destroys, mutilates, alters or falsifies any such application, record, account or memorandum or knowingly makes any false statement to the commission or any member, officer, or employee of the commission concerning any matter within the jurisdiction of the commission is guilty of a class 2 misdemeanor. C. The penalties provided in this section shall be are recoverable by either of the following: 1. an action filed by the attorney general, in the name and on behalf of the this state, in the superior court of in the county in which the defendant resides, or in which any defendant resides if there are is more than one defendant, or in the superior court of in any county in which the violation occurred. 2. A finding and MAJORITY vote of the commission that a violation has occurred and a civil PENALTY assessed. D. The payment of any penalty shall not operate to legalize so that it is no longer contraband a penalty does not legalize any oil, gas or product involved in the violation for which the penalty is imposed, and shall not relieve a person on whom the penalty is imposed from liability to any other person for damages arising out of the violation. END_STATUTE Sec. 10. Title 27, chapter 4, article 1, Arizona Revised Statutes, is amended by adding section 27-528, to read: START_STATUTE27-528. Oil and gas conservation commission fund A. the oil and gas CONSERVATION commission fund is ESTABLISHED CONSISTING of LEGISLATIVE APPROPRIATIONS and monies collected PURSUANT to this article and section 27-659. The commission shall administer the fund. monies on the fund are subject to legislative appropriation and are exempt from the provisions of SECTION 35-190 relating to lapsing of appropriations. The commission may use monies in the fund to carry out the purposes of this article. B. The COMMISSION may accept and spend federal monies and private grants, gifts, contributions and devises to assist in carrying out the purposes of this Article. END_STATUTE Sec. 11. Section 27-659, Arizona Revised Statutes, is amended to read: START_STATUTE27-659. Application to drill The owner or operator of any property, before commencing the drilling of a well or entering or deepening an abandoned well, shall file with the commission an application to drill, on a form prescribed by the commission, containing such information as may be required by the commission. Such application shall be accompanied by a fee of twenty-five dollars per well as established by a MAJORITY vote of the commission. All monies so received by the commission shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund oil and gas conservation commission fund established by section 27-528. END_STATUTE Sec. 12. Section 49-250, Arizona Revised Statutes, is amended to read: START_STATUTE49-250. Exemptions A. The director, by rule, may exempt specifically described classes or categories of facilities from the aquifer protection permit requirements of this article on a finding either that there is no reasonable probability of degradation of the aquifer or that aquifer water quality will be maintained and protected because the discharges from the facilities are regulated under other federal or state programs that provide the same or greater aquifer water quality protection as provided by this article. B. The following are exempt from the aquifer protection permit requirement requirements of this article: 1. Household and domestic activities. 2. Household gardening, lawn watering, lawn care, landscape maintenance and related activities. 3. The noncommercial use of consumer products generally available to and used by the public. 4. Ponds used for watering livestock and wildlife. 5. Mining overburden returned to the excavation site, including any common material that has been excavated and removed from the excavation site and that has not been subjected to any chemical or leaching agent or process of any kind. 6. Facilities used solely for surface transportation or storage of groundwater, surface water for beneficial use or reclaimed water that is regulated pursuant to section 49-203, subsection A, paragraph 7 for beneficial use. 7. Discharge to a community sewer system. 8. Facilities that are required to obtain a permit for the direct reuse of reclaimed water. 9. Leachate resulting from the direct, natural infiltration of precipitation through undisturbed regolith or bedrock if pollutants are not added to the leachate as a result of any material or activity placed or conducted by man on the ground surface. 10. Surface impoundments used solely to contain storm runoff, except for surface impoundments regulated by the federal clean water act or article 3.1 of this chapter. 11. Closed facilities. However, if the facility ever resumes operation the facility shall obtain an aquifer protection permit and the facility shall be treated as a new facility for purposes of section 49-243. 12. Facilities for the storage of water pursuant to title 45, chapter 3.1 unless reclaimed water is added. 13. Facilities using central Arizona project water for underground storage and recovery projects under title 45, chapter 3.1, article 6. 14. Water storage at a groundwater saving facility that has been permitted under title 45, chapter 3.1. 15. Application of water from any source, including groundwater, surface water or wastewater, to grow agricultural crops or for landscaping purposes, except as provided in section 49-247. 16. Discharges to a facility that is exempt pursuant to paragraph 6 of this subsection if those discharges are regulated pursuant to 33 United States Code section 1342 or article 3.1 of this chapter. 17. Solid waste and special waste facilities if rules addressing aquifer protection are adopted by the director pursuant to section 49-761 or 49-855 and those facilities obtain plan approval pursuant to those rules. This exemption shall apply only if the director determines that aquifer water quality standards will be maintained and protected because the discharges from those facilities are regulated under rules adopted pursuant to section 49-761 or 49-855 that provide aquifer water quality protection that is equal to or greater than aquifer water quality protection provided pursuant to this article. 18. Facilities used in: (a) Corrective actions taken pursuant to chapter 6, article 1 of this title in response to a release of a regulated substance as defined in section 49-1001 except for those off-site facilities that receive for treatment or disposal materials that are contaminated with a regulated substance and that are received as part of a corrective action. (b) Response or remedial actions undertaken pursuant to article 5 of this chapter or pursuant to CERCLA. (c) Corrective actions taken pursuant to the resource conservation and recovery act of 1976, as amended (42 United States Code sections 6901 through 6992). (d) Other remedial actions that have been reviewed and approved by the appropriate governmental authority and taken pursuant to applicable federal or state laws. 19. Municipal solid waste landfills as defined in section 49-701 that have solid waste facility plan approval pursuant to section 49-762. 20. Storage, treatment or disposal of inert material. 21. Structures that are designed and constructed not to discharge and that are built on an impermeable barrier that can be visually inspected for leakage. 22. Pipelines and tanks designed, constructed, operated and regularly maintained so as not to discharge. 23. Surface impoundments and dry wells that are used to contain storm water in combination with discharges from one or more of the following activities or sources: (a) Firefighting system testing and maintenance. (b) Potable water sources, including waterline flushings. (c) Irrigation drainage and lawn watering. (d) Routine external building wash down without detergents. (e) Pavement wash water if no spills or leaks of toxic or hazardous material have occurred unless all spilled material has first been removed and no detergents have been used. (f) Air conditioning, compressor and steam equipment condensate that has not contacted a hazardous or toxic material. (g) Foundation or footing drains in which flows are not contaminated with process materials. (h) Occupational safety and health administration or mining safety and health administration safety equipment. 24. Industrial wastewater treatment facilities designed, constructed and operated as required by section 49-243, subsection B, paragraph 1 and using a treatment system approved by the director to treat wastewater to meet aquifer water quality standards prior to discharge, if that water is stored at a groundwater storage facility pursuant to title 45, chapter 3.1. 25. Any point source discharge caused by a storm event and authorized in a permit issued pursuant to section 402 of the clean water act or an Arizona pollutant discharge elimination system permit under article 3.1 of this chapter. 26. Except for class V wells that are operating as prescribed by rules adopted pursuant to article 3.3 of this chapter or 42 United States Code section 300h-1(c), any underground injection well covered by a permit issued under article 3.3 of this chapter or under 42 United States Code section 300h-1(c). 27. Coal combustion residuals units that are regulated under 40 Code of Federal Regulations part 257, subpart D or by a permit in effect under the coal combustion residuals program established pursuant to chapter 4, article 11 of this title and approved by the United States environmental protection agency as prescribed by 42 United State states Code section 6945(d)(1). 28. Helium exploration, water injection wells and production wells that are designed, constructed, operated and maintained to not discharge a contaminant into an aquifer as DETERMINED by the oil and gas conservation commission established by section 27-514. END_STATUTE Sec. 13. Legislative intent The legislature intends that any fees adopted pursuant to this act be similar to fees adopted by similarly situated states. Sec. 14. Succession A. All equipment, records, furnishings and other property, all data and investigative findings, all obligations and all appropriated monies allocated to the department of environmental quality to serve the oil and gas conservation commission are allocated to the oil and gas conservation commission. B. All personnel who are under the state personnel system and employed by the department of environmental quality to assist the oil and gas conversation commission are transferred to the oil and gas conservation commission. |
|---|
| 76 | + | Be it enacted by the Legislature of the State of Arizona: Section 1. Heading change The article heading of title 27, chapter 4, article 1, Arizona Revised Statutes, is changed from "production and conservation" to "oil and gas conservation commission". Sec. 2. Section 27-501, Arizona Revised Statutes, is amended to read: START_STATUTE27-501. Definitions In this article, unless the context otherwise requires: 1. "Certificate of clearance" means a permit approved and issued or registered by the commission for transportation or delivery of oil, gas or oil and gas products. 2. "Certificate of compliance" means a certificate issued by the commission prior to connection of an oil or gas well with a pipeline, showing compliance with the conservation laws of this state and conservation rules and orders of the commission. 3. "Commission" or "commissioner" means the oil and gas conservation commission. 4. "Completed well" means a well that meets any of the following conditions: (a) Has produced or is ready to produce new formation hydrocarbons or gases. (b) Has been declared a dry hole or plugged and abandoned. (c) Has been otherwise readied for operation as in the case of injection and service wells. 5. "Developed area" or "developed unit" means a drainage unit having a completed well capable of producing oil or gas in paying quantities. 6. "Drainage unit" or "drilling unit" means the maximum area in a pool which may be drained efficiently by one well to produce the reasonable maximum amount of recoverable oil or gas in the area. 7. "Field" means the general area which that is or appears to be underlaid by not less than one pool, including underground reservoirs containing oil or gas, or both. 8. "Fund" means the state general oil and gas conservation commission fund ESTABLISHED by section 27-528. 9. "Gas" means natural gas, casinghead gas, all other hydrocarbons not defined as oil, carbon dioxide and helium or other substances of a gaseous nature. Natural gas and casinghead gas are further defined as follows: (a) "Natural gas" means any combustible gas or vapor composed chiefly of hydrocarbons occurring in gaseous or vapor phase at initial reservoir conditions. (b) "Casinghead gas" means any gas or vapor indigenous to an oil stratum and produced from such stratum with oil. 10. "Illegal oil" and "illegal gas" means oil or gas produced within the state from any well during any time in which the well has produced more than the amount allowed by law or any rule or order of the commission or the production of which causes waste. 11. "Illegal product" means any product derived, in whole or in part, from illegal oil or gas. 12. "Net drainage" means drainage not equalized by counterdrainage. 13. "Oil" means crude petroleum oil and all other hydrocarbons, regardless of gravity, which that are produced at a well in liquid form by ordinary production methods and which that are not the result of condensation of gas. 14. "Owner" means the person having the right to drill into, produce and appropriate production of oil or gas, or both, from a pool. 15. "Person" includes a corporation, association, partnership, receiver, trustee, guardian, executor, administrator, fiduciary or representative or any group acting as a unit and includes any department, agency or instrumentality of the state or any of its governmental subdivisions. 16. "Pool" means an underground reservoir containing a common accumulation of oil or gas, or both, and includes each zone of a general structure completely separated from any other zone in the structure. 17. "Producer" means the owner of a well capable of producing oil or gas. 18. "Product" means oil, gas or any product, by-product, mixture or blend of oil or gas. 19. "Royalty owner" means a person who possesses an interest in the production but who is not an owner. 20. "Waste" includes: (a) Physical waste, as that term is generally understood in the oil and gas industry. (b) The inefficient, excessive or improper use of or the unnecessary dissipation of reservoir energy. (c) The locating, spacing, drilling, equipping, operating or producing of any oil or gas well or wells in a manner which that causes or tends to cause reduction in the quantity of oil or gas ultimately recoverable from a pool under prudent and proper operations or which that causes or tends to cause unnecessary or excessive surface loss or destruction of oil or gas. (d) The inefficient storing of oil or gas. (e) The production of oil or gas in excess of transportation or marketing facilities. (f) The production of oil or gas when it is unprofitable to dispose of such production. 21. "Well" includes any hole drilled or spudded in for the purpose, with the intention or under the representation of penetrating oil or gas bearing strata or of penetrating any strata in search of stratigraphic data pertinent to the location of oil or gas bearing strata, whether or not in either case oil or gas is actually discovered, any hole used in connection with the underground storage of hydrocarbon substances, whether liquid or gaseous, any hole used in connection with a process to inject any substance for purposes of disposal or to increase recovery, any hole used for the purpose of secondary or tertiary recovery and any hole used for the purpose of pressure maintenance. The commission may, as it considers to be in the best interests of the this state, determine that any hole drilled or spudded in shall be included within this definition to the extent necessary for the administration and enforcement of the rules required by section 27-516. The determination of the commission shall be final in any circumstance involving the question of purpose, intent or representation, except that the determination shall be subject to appeal as provided by section 27-520. END_STATUTE Sec. 3. Section 27-513, Arizona Revised Statutes, is amended to read: START_STATUTE27-513. Permit to drill well Before a person desiring to may drill a well in search of oil or gas, the person shall notify the commissioner on a form prescribed by the commissioner, and shall pay a fee of twenty-five dollars as prescribed by the commissioner for each well. Upon On receipt of notification and the fee, the commissioner shall promptly issue the person a permit to drill, unless drilling the well is contrary to law or to a rule, regulation or order of the commissioner. Drilling the well is prohibited until a permit to drill is obtained in accordance with the provisions of this section. END_STATUTE Sec. 4. Section 27-514, Arizona Revised Statutes, is amended to read: START_STATUTE27-514. Commission; appointment; terms; compensation A. The oil and gas conservation commission is established in the department of environmental quality. The department of environmental quality shall provide staff support to the commission to administer this chapter. B. The commission shall consist of the state land commissioner ex officio who shall have no vote, and five members to be appointed by the governor, not more than three of whom shall be of the same political party. The appointive members shall be United States citizens and shall have been residents of this state for not less than the five years immediately preceding their appointment. Three members of the commission shall constitute constitute a quorum for the transaction of business. C. Appointments shall be are for a full term of five years and expire on the third Monday in January in the appropriate year. D. Appointive members of the commission shall receive compensation as determined pursuant to section 38-611 for each day actually spent in the performance of performing official duties. END_STATUTE Sec. 5. Section 27-515, Arizona Revised Statutes, is amended to read: START_STATUTE27-515. Administration; powers of the commission; fees A. The commission shall administer and enforce this article and other laws relating to conservation of oil and gas. The commission and administrative staff, at any time, may enter property and inspect wells drilled for oil or gas and well records, and shall control property, machinery and appliances necessary to gauge the wells. B. The commission may: 1. Administer oaths to a witness in any hearing, investigation or proceeding held under this article or any other law relating to conservation of oil and gas. 2. Issue subpoenas requiring attendance and testimony of witnesses and production of books, papers and records deemed material or necessary, and direct service of subpoenas by a sheriff or other officer authorized by law to serve process. 3. Prescribe rules and do all acts necessary or advisable to carry out this article. 4. Collect fees to cover the costs of services, including reproduction of records or any portion of records and copies of rules. The monies collected are not subject to section 27-523 but shall be deposited, pursuant to sections 35-146 and 35-147, by the commission in the fund from which the expenditure was originally made. 5. Publish technical maps, cross sections and reports and sell these materials for fees that will cover the costs incurred in their preparation, reproduction and distribution. C. The commission may enter into cooperative agreements with agencies of the United States government, with agencies of state or local government or with Indian tribes to protect the fresh water supplies of this state from contamination or pollution brought about by the drilling of any well or for any other purpose of this article. D. The commission may apply for and accept gifts, devises and donations of books, well records, maps or other materials. All donated materials shall become public records. E. Monies collected under subsection B, paragraph 5 of this section are not subject to section 27-523 but shall be deposited, pursuant to sections 35-146 and 35-147, in the permit administration fund established by section 49-455 and shall be used to prepare, reproduce and distribute further publications. END_STATUTE Sec. 6. Section 27-517, Arizona Revised Statutes, is amended to read: START_STATUTE27-517. Hearings; reporter; fees A. Any interested person shall, by written request, have the right to have may request the commissioner to call a hearing for the purpose of taking to take action in respect to any matter within the jurisdiction of the commissioner. Hearings shall be held at the time and place the commissioner directs, and any person having an interest in the subject matter of the hearing may appear and be heard. Upon On receipt of the request, the commissioner shall promptly call a hearing, and, not more than thirty days thereafter shall take action with regard to the matter as he the commissioner deems appropriate. The request for hearing shall be accompanied by a fee of fifty dollars established by the COMMISSIONER. B. The commissioner shall prescribe rules of order and procedure in hearings or other proceedings held under this article. The commissioner shall appoint a competent shorthand reporter to be present throughout all public hearings. The reporter shall be sworn by the commissioner faithfully to perform the duties of a reporter. The commissioner shall have the same control and authority over the reporter as the judge of the superior court exercises over a court reporter, and the duties of the reporter shall, insofar as applicable, be the same as those fixed by law for a court reporter. C. As soon as possible following the hearing, the commission shall bill the person requesting the hearing for the total cost of publication for the notices of such the hearing and the total cost of the court reporter's fees less the original fifty dollar fee established by the commissioner. The requesting party, shall within ten days after receipt of the billing by the commission, shall reimburse the commission the amount of money so billed or be subject to the penalties as prescribed in subsection A of section 27-527, subsection A. The money so monies collected by the commission shall not be are subject to section 27-523 but shall be deposited, pursuant to sections 35-146 and 35-147, by the commission in the fund from which the expenditure was originally made. END_STATUTE Sec. 7. Section 27-523, Arizona Revised Statutes, is amended to read: START_STATUTE27-523. Deposit of monies; expenses A. Monies collected by the commissioner under this article shall be deposited, pursuant to sections 35-146 and 35-147, in the fund. B. Expenses incident to the administration of this article shall be paid from the state general fund, subject to legislative appropriation. END_STATUTE Sec. 8. Section 27-524, Arizona Revised Statutes, is amended to read: START_STATUTE27-524. Enforcement A. When it appears that a person is violating or threatening to violate any provision of this article, or a rule, regulation or order made pursuant to this article, and such the person fails or refuses, on notice by the commissioner, to desist from such the violation or threat of violation, the commissioner may do either of the following: 1. Bring an action in the superior court in the county where the offending person resides, or in the county in which the violation is alleged to have occurred or is threatened, to restrain the person from continuing the violation or from carrying out a threat of violation. 2. on the majority vote of the commission, restrain the person from continuing the violation or from carrying out a threat of violation. B. The commissioner may, without bond, obtain a prohibitory or mandatory injunction, including a temporary restraining order and preliminary injunction, and, where appropriate, an injunction restraining the defendant from moving or disposing of illegal oil or gas or an illegal product. Upon On filing the action, a summons directed to such the person may be delivered to the sheriff of any county in this state for service. C. If the commissioner fails to bring an action within ten days to enjoin a threatened or actual violation of any statute relating to conservation of oil and gas, or of any provision of this article, or a rule, regulation or order made pursuant to this article, any person or party in interest that is adversely affected by the threatened or actual violation who has notified the commissioner in writing thereof and requested the commissioner to file the action may bring the action in the superior court of in any county in which the commissioner might have brought the action to prevent the threatened or actual violation. The commissioner shall be made a party to the action. D. If the court orders that injunctive relief be granted, then the commissioner shall be substituted for the person who brought the action, and the injunction shall issue as if the commissioner had at all times been the plaintiff. E. The owner or operator is responsible for the full cost of plugging each dry or abandoned well. If the owner or operator fails to properly plug and abandon the well, the commission may: 1. Forfeit the bond and use the money monies for that purpose. 2. Sue the owner or operator for costs in excess of the amount of the bond and the owner or operator is liable for that amount. END_STATUTE Sec. 9. Section 27-527, Arizona Revised Statutes, is amended to read: START_STATUTE27-527. Violation; classification A. Any person who violates any provision of this article, or any rule, regulation or order of the commission, is subject to a civil penalty of not more than one thousand dollars as prescribed by the Commissioner for each violation and for each day the violation continues. B. Any person who, with the intent to evade this article, or any rule, regulation or order of the commission, who knowingly makes or causes to be made a false entry in any application, report, record, account or memorandum required by this article or by any such rule, regulation or order, or who knowingly omits or causes to be omitted from any application, report, record, account or memorandum, full, true and correct entries as required by this article, or by any such rule, regulation or order, or who knowingly removes from this state, or destroys, mutilates, alters or falsifies any such application, record, account or memorandum or knowingly makes any false statement to the commission or any member, officer, or employee of the commission concerning any matter within the jurisdiction of the commission is guilty of a class 2 misdemeanor. C. The penalties provided in this section shall be are recoverable by either of the following: 1. an action filed by the attorney general, in the name and on behalf of the this state, in the superior court of in the county in which the defendant resides, or in which any defendant resides if there are is more than one defendant, or in the superior court of in any county in which the violation occurred. 2. A finding and MAJORITY vote of the commission that a violation has occurred and a civil PENALTY assessed. D. The payment of any penalty shall not operate to legalize so that it is no longer contraband a penalty does not legalize any oil, gas or product involved in the violation for which the penalty is imposed, and shall not relieve a person on whom the penalty is imposed from liability to any other person for damages arising out of the violation. END_STATUTE Sec. 10. Title 27, chapter 4, article 1, Arizona Revised Statutes, is amended by adding section 27-528, to read: START_STATUTE27-528. Oil and gas conservation commission fund A. the oil and gas CONSERVATION commission fund is ESTABLISHED CONSISTING of LEGISLATIVE APPROPRIATIONS and monies collected PURSUANT to this article and section 27-659. The commission shall administer the fund. monies on the fund are subject to legislative appropriation and are exempt from the provisions of SECTION 35-190 relating to lapsing of appropriations. The commission may use monies in the fund to carry out the purposes of this article. B. The COMMISSION may accept and spend federal monies and private grants, gifts, contributions and devises to assist in carrying out the purposes of this Article. END_STATUTE Sec. 11. Section 27-659, Arizona Revised Statutes, is amended to read: START_STATUTE27-659. Application to drill The owner or operator of any property, before commencing the drilling of a well or entering or deepening an abandoned well, shall file with the commission an application to drill, on a form prescribed by the commission, containing such information as may be required by the commission. Such application shall be accompanied by a fee of twenty-five dollars per well as established by a MAJORITY vote of the commission. All monies so received by the commission shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund oil and gas conservation commission fund established byt section 27-528. END_STATUTE Sec. 12. Section 49-250, Arizona Revised Statutes, is amended to read: START_STATUTE49-250. Exemptions A. The director, by rule, may exempt specifically described classes or categories of facilities from the aquifer protection permit requirements of this article on a finding either that there is no reasonable probability of degradation of the aquifer or that aquifer water quality will be maintained and protected because the discharges from the facilities are regulated under other federal or state programs that provide the same or greater aquifer water quality protection as provided by this article. B. The following are exempt from the aquifer protection permit requirement requirements of this article: 1. Household and domestic activities. 2. Household gardening, lawn watering, lawn care, landscape maintenance and related activities. 3. The noncommercial use of consumer products generally available to and used by the public. 4. Ponds used for watering livestock and wildlife. 5. Mining overburden returned to the excavation site, including any common material that has been excavated and removed from the excavation site and that has not been subjected to any chemical or leaching agent or process of any kind. 6. Facilities used solely for surface transportation or storage of groundwater, surface water for beneficial use or reclaimed water that is regulated pursuant to section 49-203, subsection A, paragraph 7 for beneficial use. 7. Discharge to a community sewer system. 8. Facilities that are required to obtain a permit for the direct reuse of reclaimed water. 9. Leachate resulting from the direct, natural infiltration of precipitation through undisturbed regolith or bedrock if pollutants are not added to the leachate as a result of any material or activity placed or conducted by man on the ground surface. 10. Surface impoundments used solely to contain storm runoff, except for surface impoundments regulated by the federal clean water act or article 3.1 of this chapter. 11. Closed facilities. However, if the facility ever resumes operation the facility shall obtain an aquifer protection permit and the facility shall be treated as a new facility for purposes of section 49-243. 12. Facilities for the storage of water pursuant to title 45, chapter 3.1 unless reclaimed water is added. 13. Facilities using central Arizona project water for underground storage and recovery projects under title 45, chapter 3.1, article 6. 14. Water storage at a groundwater saving facility that has been permitted under title 45, chapter 3.1. 15. Application of water from any source, including groundwater, surface water or wastewater, to grow agricultural crops or for landscaping purposes, except as provided in section 49-247. 16. Discharges to a facility that is exempt pursuant to paragraph 6 of this subsection if those discharges are regulated pursuant to 33 United States Code section 1342 or article 3.1 of this chapter. 17. Solid waste and special waste facilities if rules addressing aquifer protection are adopted by the director pursuant to section 49-761 or 49-855 and those facilities obtain plan approval pursuant to those rules. This exemption shall apply only if the director determines that aquifer water quality standards will be maintained and protected because the discharges from those facilities are regulated under rules adopted pursuant to section 49-761 or 49-855 that provide aquifer water quality protection that is equal to or greater than aquifer water quality protection provided pursuant to this article. 18. Facilities used in: (a) Corrective actions taken pursuant to chapter 6, article 1 of this title in response to a release of a regulated substance as defined in section 49-1001 except for those off-site facilities that receive for treatment or disposal materials that are contaminated with a regulated substance and that are received as part of a corrective action. (b) Response or remedial actions undertaken pursuant to article 5 of this chapter or pursuant to CERCLA. (c) Corrective actions taken pursuant to the resource conservation and recovery act of 1976, as amended (42 United States Code sections 6901 through 6992). (d) Other remedial actions that have been reviewed and approved by the appropriate governmental authority and taken pursuant to applicable federal or state laws. 19. Municipal solid waste landfills as defined in section 49-701 that have solid waste facility plan approval pursuant to section 49-762. 20. Storage, treatment or disposal of inert material. 21. Structures that are designed and constructed not to discharge and that are built on an impermeable barrier that can be visually inspected for leakage. 22. Pipelines and tanks designed, constructed, operated and regularly maintained so as not to discharge. 23. Surface impoundments and dry wells that are used to contain storm water in combination with discharges from one or more of the following activities or sources: (a) Firefighting system testing and maintenance. (b) Potable water sources, including waterline flushings. (c) Irrigation drainage and lawn watering. (d) Routine external building wash down without detergents. (e) Pavement wash water if no spills or leaks of toxic or hazardous material have occurred unless all spilled material has first been removed and no detergents have been used. (f) Air conditioning, compressor and steam equipment condensate that has not contacted a hazardous or toxic material. (g) Foundation or footing drains in which flows are not contaminated with process materials. (h) Occupational safety and health administration or mining safety and health administration safety equipment. 24. Industrial wastewater treatment facilities designed, constructed and operated as required by section 49-243, subsection B, paragraph 1 and using a treatment system approved by the director to treat wastewater to meet aquifer water quality standards prior to discharge, if that water is stored at a groundwater storage facility pursuant to title 45, chapter 3.1. 25. Any point source discharge caused by a storm event and authorized in a permit issued pursuant to section 402 of the clean water act or an Arizona pollutant discharge elimination system permit under article 3.1 of this chapter. 26. Except for class V wells that are operating as prescribed by rules adopted pursuant to article 3.3 of this chapter or 42 United States Code section 300h-1(c), any underground injection well covered by a permit issued under article 3.3 of this chapter or under 42 United States Code section 300h-1(c). 27. Coal combustion residuals units that are regulated under 40 Code of Federal Regulations part 257, subpart D or by a permit in effect under the coal combustion residuals program established pursuant to chapter 4, article 11 of this title and approved by the United States environmental protection agency as prescribed by 42 United State states Code section 6945(d)(1). 28. Helium exploration, water injection wells and production wells that are designed, constructed, operated and maintained to not discharge a contaminant into an aquifer as DETERMINED by the oil and gas conservation commission established by section 27-514. END_STATUTE Sec. 13. Legislative intent The legislature intends that any fees adopted pursuant to this act be similar to fees adopted by similarly situated states. Sec. 14. Succession A. All equipment, records, furnishings and other property, all data and investigative findings, all obligations and all appropriated monies allocated to the department of environmental quality to serve the oil and gas conservation commission are allocated to the oil and gas conservation commission. B. All personnel who are under the state personnel system and employed by the department of environmental quality to assist the oil and gas conversation commission are transferred to the oil and gas conservation commission. |
|---|
| 66 | 77 | | |
|---|
| 67 | 78 | | Be it enacted by the Legislature of the State of Arizona: |
|---|
| 68 | 79 | | |
|---|
| 69 | 80 | | Section 1. Heading change |
|---|
| 70 | 81 | | |
|---|
| 71 | 82 | | The article heading of title 27, chapter 4, article 1, Arizona Revised Statutes, is changed from "production and conservation" to "oil and gas conservation commission". |
|---|
| 72 | 83 | | |
|---|
| 73 | 84 | | Sec. 2. Section 27-501, Arizona Revised Statutes, is amended to read: |
|---|
| 74 | 85 | | |
|---|
| 75 | 86 | | START_STATUTE27-501. Definitions |
|---|
| 76 | 87 | | |
|---|
| 77 | 88 | | In this article, unless the context otherwise requires: |
|---|
| 78 | 89 | | |
|---|
| 79 | 90 | | 1. "Certificate of clearance" means a permit approved and issued or registered by the commission for transportation or delivery of oil, gas or oil and gas products. |
|---|
| 80 | 91 | | |
|---|
| 81 | 92 | | 2. "Certificate of compliance" means a certificate issued by the commission prior to connection of an oil or gas well with a pipeline, showing compliance with the conservation laws of this state and conservation rules and orders of the commission. |
|---|
| 82 | 93 | | |
|---|
| 83 | 94 | | 3. "Commission" or "commissioner" means the oil and gas conservation commission. |
|---|
| 84 | 95 | | |
|---|
| 85 | 96 | | 4. "Completed well" means a well that meets any of the following conditions: |
|---|
| 86 | 97 | | |
|---|
| 87 | 98 | | (a) Has produced or is ready to produce new formation hydrocarbons or gases. |
|---|
| 88 | 99 | | |
|---|
| 89 | 100 | | (b) Has been declared a dry hole or plugged and abandoned. |
|---|
| 90 | 101 | | |
|---|
| 91 | 102 | | (c) Has been otherwise readied for operation as in the case of injection and service wells. |
|---|
| 92 | 103 | | |
|---|
| 93 | 104 | | 5. "Developed area" or "developed unit" means a drainage unit having a completed well capable of producing oil or gas in paying quantities. |
|---|
| 94 | 105 | | |
|---|
| 95 | 106 | | 6. "Drainage unit" or "drilling unit" means the maximum area in a pool which may be drained efficiently by one well to produce the reasonable maximum amount of recoverable oil or gas in the area. |
|---|
| 96 | 107 | | |
|---|
| 97 | 108 | | 7. "Field" means the general area which that is or appears to be underlaid by not less than one pool, including underground reservoirs containing oil or gas, or both. |
|---|
| 98 | 109 | | |
|---|
| 99 | 110 | | 8. "Fund" means the state general oil and gas conservation commission fund ESTABLISHED by section 27-528. |
|---|
| 100 | 111 | | |
|---|
| 101 | 112 | | 9. "Gas" means natural gas, casinghead gas, all other hydrocarbons not defined as oil, carbon dioxide and helium or other substances of a gaseous nature. Natural gas and casinghead gas are further defined as follows: |
|---|
| 102 | 113 | | |
|---|
| 103 | 114 | | (a) "Natural gas" means any combustible gas or vapor composed chiefly of hydrocarbons occurring in gaseous or vapor phase at initial reservoir conditions. |
|---|
| 104 | 115 | | |
|---|
| 105 | 116 | | (b) "Casinghead gas" means any gas or vapor indigenous to an oil stratum and produced from such stratum with oil. |
|---|
| 106 | 117 | | |
|---|
| 107 | 118 | | 10. "Illegal oil" and "illegal gas" means oil or gas produced within the state from any well during any time in which the well has produced more than the amount allowed by law or any rule or order of the commission or the production of which causes waste. |
|---|
| 108 | 119 | | |
|---|
| 109 | 120 | | 11. "Illegal product" means any product derived, in whole or in part, from illegal oil or gas. |
|---|
| 110 | 121 | | |
|---|
| 111 | 122 | | 12. "Net drainage" means drainage not equalized by counterdrainage. |
|---|
| 112 | 123 | | |
|---|
| 113 | 124 | | 13. "Oil" means crude petroleum oil and all other hydrocarbons, regardless of gravity, which that are produced at a well in liquid form by ordinary production methods and which that are not the result of condensation of gas. |
|---|
| 114 | 125 | | |
|---|
| 115 | 126 | | 14. "Owner" means the person having the right to drill into, produce and appropriate production of oil or gas, or both, from a pool. |
|---|
| 116 | 127 | | |
|---|
| 117 | 128 | | 15. "Person" includes a corporation, association, partnership, receiver, trustee, guardian, executor, administrator, fiduciary or representative or any group acting as a unit and includes any department, agency or instrumentality of the state or any of its governmental subdivisions. |
|---|
| 118 | 129 | | |
|---|
| 119 | 130 | | 16. "Pool" means an underground reservoir containing a common accumulation of oil or gas, or both, and includes each zone of a general structure completely separated from any other zone in the structure. |
|---|
| 120 | 131 | | |
|---|
| 121 | 132 | | 17. "Producer" means the owner of a well capable of producing oil or gas. |
|---|
| 122 | 133 | | |
|---|
| 123 | 134 | | 18. "Product" means oil, gas or any product, by-product, mixture or blend of oil or gas. |
|---|
| 124 | 135 | | |
|---|
| 125 | 136 | | 19. "Royalty owner" means a person who possesses an interest in the production but who is not an owner. |
|---|
| 126 | 137 | | |
|---|
| 127 | 138 | | 20. "Waste" includes: |
|---|
| 128 | 139 | | |
|---|
| 129 | 140 | | (a) Physical waste, as that term is generally understood in the oil and gas industry. |
|---|
| 130 | 141 | | |
|---|
| 131 | 142 | | (b) The inefficient, excessive or improper use of or the unnecessary dissipation of reservoir energy. |
|---|
| 132 | 143 | | |
|---|
| 133 | 144 | | (c) The locating, spacing, drilling, equipping, operating or producing of any oil or gas well or wells in a manner which that causes or tends to cause reduction in the quantity of oil or gas ultimately recoverable from a pool under prudent and proper operations or which that causes or tends to cause unnecessary or excessive surface loss or destruction of oil or gas. |
|---|
| 134 | 145 | | |
|---|
| 135 | 146 | | (d) The inefficient storing of oil or gas. |
|---|
| 136 | 147 | | |
|---|
| 137 | 148 | | (e) The production of oil or gas in excess of transportation or marketing facilities. |
|---|
| 138 | 149 | | |
|---|
| 139 | 150 | | (f) The production of oil or gas when it is unprofitable to dispose of such production. |
|---|
| 140 | 151 | | |
|---|
| 141 | 152 | | 21. "Well" includes any hole drilled or spudded in for the purpose, with the intention or under the representation of penetrating oil or gas bearing strata or of penetrating any strata in search of stratigraphic data pertinent to the location of oil or gas bearing strata, whether or not in either case oil or gas is actually discovered, any hole used in connection with the underground storage of hydrocarbon substances, whether liquid or gaseous, any hole used in connection with a process to inject any substance for purposes of disposal or to increase recovery, any hole used for the purpose of secondary or tertiary recovery and any hole used for the purpose of pressure maintenance. The commission may, as it considers to be in the best interests of the this state, determine that any hole drilled or spudded in shall be included within this definition to the extent necessary for the administration and enforcement of the rules required by section 27-516. The determination of the commission shall be final in any circumstance involving the question of purpose, intent or representation, except that the determination shall be subject to appeal as provided by section 27-520. END_STATUTE |
|---|
| 142 | 153 | | |
|---|
| 143 | 154 | | Sec. 3. Section 27-513, Arizona Revised Statutes, is amended to read: |
|---|
| 144 | 155 | | |
|---|
| 145 | 156 | | START_STATUTE27-513. Permit to drill well |
|---|
| 146 | 157 | | |
|---|
| 147 | 158 | | Before a person desiring to may drill a well in search of oil or gas, the person shall notify the commissioner on a form prescribed by the commissioner, and shall pay a fee of twenty-five dollars as prescribed by the commissioner for each well. Upon On receipt of notification and the fee, the commissioner shall promptly issue the person a permit to drill, unless drilling the well is contrary to law or to a rule, regulation or order of the commissioner. Drilling the well is prohibited until a permit to drill is obtained in accordance with the provisions of this section. END_STATUTE |
|---|
| 148 | 159 | | |
|---|
| 149 | 160 | | Sec. 4. Section 27-514, Arizona Revised Statutes, is amended to read: |
|---|
| 150 | 161 | | |
|---|
| 151 | 162 | | START_STATUTE27-514. Commission; appointment; terms; compensation |
|---|
| 152 | 163 | | |
|---|
| 153 | 164 | | A. The oil and gas conservation commission is established in the department of environmental quality. The department of environmental quality shall provide staff support to the commission to administer this chapter. |
|---|
| 154 | 165 | | |
|---|
| 155 | 166 | | B. The commission shall consist of the state land commissioner ex officio who shall have no vote, and five members to be appointed by the governor, not more than three of whom shall be of the same political party. The appointive members shall be United States citizens and shall have been residents of this state for not less than the five years immediately preceding their appointment. Three members of the commission shall constitute constitute a quorum for the transaction of business. |
|---|
| 156 | 167 | | |
|---|
| 157 | 168 | | C. Appointments shall be are for a full term of five years and expire on the third Monday in January in the appropriate year. |
|---|
| 158 | 169 | | |
|---|
| 159 | 170 | | D. Appointive members of the commission shall receive compensation as determined pursuant to section 38-611 for each day actually spent in the performance of performing official duties. END_STATUTE |
|---|
| 160 | 171 | | |
|---|
| 161 | 172 | | Sec. 5. Section 27-515, Arizona Revised Statutes, is amended to read: |
|---|
| 162 | 173 | | |
|---|
| 163 | 174 | | START_STATUTE27-515. Administration; powers of the commission; fees |
|---|
| 164 | 175 | | |
|---|
| 165 | 176 | | A. The commission shall administer and enforce this article and other laws relating to conservation of oil and gas. The commission and administrative staff, at any time, may enter property and inspect wells drilled for oil or gas and well records, and shall control property, machinery and appliances necessary to gauge the wells. |
|---|
| 166 | 177 | | |
|---|
| 167 | 178 | | B. The commission may: |
|---|
| 168 | 179 | | |
|---|
| 169 | 180 | | 1. Administer oaths to a witness in any hearing, investigation or proceeding held under this article or any other law relating to conservation of oil and gas. |
|---|
| 170 | 181 | | |
|---|
| 171 | 182 | | 2. Issue subpoenas requiring attendance and testimony of witnesses and production of books, papers and records deemed material or necessary, and direct service of subpoenas by a sheriff or other officer authorized by law to serve process. |
|---|
| 172 | 183 | | |
|---|
| 173 | 184 | | 3. Prescribe rules and do all acts necessary or advisable to carry out this article. |
|---|
| 174 | 185 | | |
|---|
| 175 | 186 | | 4. Collect fees to cover the costs of services, including reproduction of records or any portion of records and copies of rules. The monies collected are not subject to section 27-523 but shall be deposited, pursuant to sections 35-146 and 35-147, by the commission in the fund from which the expenditure was originally made. |
|---|
| 176 | 187 | | |
|---|
| 177 | 188 | | 5. Publish technical maps, cross sections and reports and sell these materials for fees that will cover the costs incurred in their preparation, reproduction and distribution. |
|---|
| 178 | 189 | | |
|---|
| 179 | 190 | | C. The commission may enter into cooperative agreements with agencies of the United States government, with agencies of state or local government or with Indian tribes to protect the fresh water supplies of this state from contamination or pollution brought about by the drilling of any well or for any other purpose of this article. |
|---|
| 180 | 191 | | |
|---|
| 181 | 192 | | D. The commission may apply for and accept gifts, devises and donations of books, well records, maps or other materials. All donated materials shall become public records. |
|---|
| 182 | 193 | | |
|---|
| 183 | 194 | | E. Monies collected under subsection B, paragraph 5 of this section are not subject to section 27-523 but shall be deposited, pursuant to sections 35-146 and 35-147, in the permit administration fund established by section 49-455 and shall be used to prepare, reproduce and distribute further publications. END_STATUTE |
|---|
| 184 | 195 | | |
|---|
| 185 | 196 | | Sec. 6. Section 27-517, Arizona Revised Statutes, is amended to read: |
|---|
| 186 | 197 | | |
|---|
| 187 | 198 | | START_STATUTE27-517. Hearings; reporter; fees |
|---|
| 188 | 199 | | |
|---|
| 189 | 200 | | A. Any interested person shall, by written request, have the right to have may request the commissioner to call a hearing for the purpose of taking to take action in respect to any matter within the jurisdiction of the commissioner. Hearings shall be held at the time and place the commissioner directs, and any person having an interest in the subject matter of the hearing may appear and be heard. Upon On receipt of the request, the commissioner shall promptly call a hearing, and, not more than thirty days thereafter shall take action with regard to the matter as he the commissioner deems appropriate. The request for hearing shall be accompanied by a fee of fifty dollars established by the COMMISSIONER. |
|---|
| 190 | 201 | | |
|---|
| 191 | 202 | | B. The commissioner shall prescribe rules of order and procedure in hearings or other proceedings held under this article. The commissioner shall appoint a competent shorthand reporter to be present throughout all public hearings. The reporter shall be sworn by the commissioner faithfully to perform the duties of a reporter. The commissioner shall have the same control and authority over the reporter as the judge of the superior court exercises over a court reporter, and the duties of the reporter shall, insofar as applicable, be the same as those fixed by law for a court reporter. |
|---|
| 192 | 203 | | |
|---|
| 193 | 204 | | C. As soon as possible following the hearing, the commission shall bill the person requesting the hearing for the total cost of publication for the notices of such the hearing and the total cost of the court reporter's fees less the original fifty dollar fee established by the commissioner. The requesting party, shall within ten days after receipt of the billing by the commission, shall reimburse the commission the amount of money so billed or be subject to the penalties as prescribed in subsection A of section 27-527, subsection A. The money so monies collected by the commission shall not be are subject to section 27-523 but shall be deposited, pursuant to sections 35-146 and 35-147, by the commission in the fund from which the expenditure was originally made. END_STATUTE |
|---|
| 194 | 205 | | |
|---|
| 195 | 206 | | Sec. 7. Section 27-523, Arizona Revised Statutes, is amended to read: |
|---|
| 196 | 207 | | |
|---|
| 197 | 208 | | START_STATUTE27-523. Deposit of monies; expenses |
|---|
| 198 | 209 | | |
|---|
| 199 | 210 | | A. Monies collected by the commissioner under this article shall be deposited, pursuant to sections 35-146 and 35-147, in the fund. |
|---|
| 200 | 211 | | |
|---|
| 201 | 212 | | B. Expenses incident to the administration of this article shall be paid from the state general fund, subject to legislative appropriation. END_STATUTE |
|---|
| 202 | 213 | | |
|---|
| 203 | 214 | | Sec. 8. Section 27-524, Arizona Revised Statutes, is amended to read: |
|---|
| 204 | 215 | | |
|---|
| 205 | 216 | | START_STATUTE27-524. Enforcement |
|---|
| 206 | 217 | | |
|---|
| 207 | 218 | | A. When it appears that a person is violating or threatening to violate any provision of this article, or a rule, regulation or order made pursuant to this article, and such the person fails or refuses, on notice by the commissioner, to desist from such the violation or threat of violation, the commissioner may do either of the following: |
|---|
| 208 | 219 | | |
|---|
| 209 | 220 | | 1. Bring an action in the superior court in the county where the offending person resides, or in the county in which the violation is alleged to have occurred or is threatened, to restrain the person from continuing the violation or from carrying out a threat of violation. |
|---|
| 210 | 221 | | |
|---|
| 211 | 222 | | 2. on the majority vote of the commission, restrain the person from continuing the violation or from carrying out a threat of violation. |
|---|
| 212 | 223 | | |
|---|
| 213 | 224 | | B. The commissioner may, without bond, obtain a prohibitory or mandatory injunction, including a temporary restraining order and preliminary injunction, and, where appropriate, an injunction restraining the defendant from moving or disposing of illegal oil or gas or an illegal product. Upon On filing the action, a summons directed to such the person may be delivered to the sheriff of any county in this state for service. |
|---|
| 214 | 225 | | |
|---|
| 215 | 226 | | C. If the commissioner fails to bring an action within ten days to enjoin a threatened or actual violation of any statute relating to conservation of oil and gas, or of any provision of this article, or a rule, regulation or order made pursuant to this article, any person or party in interest that is adversely affected by the threatened or actual violation who has notified the commissioner in writing thereof and requested the commissioner to file the action may bring the action in the superior court of in any county in which the commissioner might have brought the action to prevent the threatened or actual violation. The commissioner shall be made a party to the action. |
|---|
| 216 | 227 | | |
|---|
| 217 | 228 | | D. If the court orders that injunctive relief be granted, then the commissioner shall be substituted for the person who brought the action, and the injunction shall issue as if the commissioner had at all times been the plaintiff. |
|---|
| 218 | 229 | | |
|---|
| 219 | 230 | | E. The owner or operator is responsible for the full cost of plugging each dry or abandoned well. If the owner or operator fails to properly plug and abandon the well, the commission may: |
|---|
| 220 | 231 | | |
|---|
| 221 | 232 | | 1. Forfeit the bond and use the money monies for that purpose. |
|---|
| 222 | 233 | | |
|---|
| 223 | 234 | | 2. Sue the owner or operator for costs in excess of the amount of the bond and the owner or operator is liable for that amount. END_STATUTE |
|---|
| 224 | 235 | | |
|---|
| 225 | 236 | | Sec. 9. Section 27-527, Arizona Revised Statutes, is amended to read: |
|---|
| 226 | 237 | | |
|---|
| 227 | 238 | | START_STATUTE27-527. Violation; classification |
|---|
| 228 | 239 | | |
|---|
| 229 | 240 | | A. Any person who violates any provision of this article, or any rule, regulation or order of the commission, is subject to a civil penalty of not more than one thousand dollars as prescribed by the Commissioner for each violation and for each day the violation continues. |
|---|
| 230 | 241 | | |
|---|
| 231 | 242 | | B. Any person who, with the intent to evade this article, or any rule, regulation or order of the commission, who knowingly makes or causes to be made a false entry in any application, report, record, account or memorandum required by this article or by any such rule, regulation or order, or who knowingly omits or causes to be omitted from any application, report, record, account or memorandum, full, true and correct entries as required by this article, or by any such rule, regulation or order, or who knowingly removes from this state, or destroys, mutilates, alters or falsifies any such application, record, account or memorandum or knowingly makes any false statement to the commission or any member, officer, or employee of the commission concerning any matter within the jurisdiction of the commission is guilty of a class 2 misdemeanor. |
|---|
| 232 | 243 | | |
|---|
| 233 | 244 | | C. The penalties provided in this section shall be are recoverable by either of the following: |
|---|
| 234 | 245 | | |
|---|
| 235 | 246 | | 1. an action filed by the attorney general, in the name and on behalf of the this state, in the superior court of in the county in which the defendant resides, or in which any defendant resides if there are is more than one defendant, or in the superior court of in any county in which the violation occurred. |
|---|
| 236 | 247 | | |
|---|
| 237 | 248 | | 2. A finding and MAJORITY vote of the commission that a violation has occurred and a civil PENALTY assessed. |
|---|
| 238 | 249 | | |
|---|
| 239 | 250 | | D. The payment of any penalty shall not operate to legalize so that it is no longer contraband a penalty does not legalize any oil, gas or product involved in the violation for which the penalty is imposed, and shall not relieve a person on whom the penalty is imposed from liability to any other person for damages arising out of the violation. END_STATUTE |
|---|
| 240 | 251 | | |
|---|
| 241 | 252 | | Sec. 10. Title 27, chapter 4, article 1, Arizona Revised Statutes, is amended by adding section 27-528, to read: |
|---|
| 242 | 253 | | |
|---|
| 243 | 254 | | START_STATUTE27-528. Oil and gas conservation commission fund |
|---|
| 244 | 255 | | |
|---|
| 245 | 256 | | A. the oil and gas CONSERVATION commission fund is ESTABLISHED CONSISTING of LEGISLATIVE APPROPRIATIONS and monies collected PURSUANT to this article and section 27-659. The commission shall administer the fund. monies on the fund are subject to legislative appropriation and are exempt from the provisions of SECTION 35-190 relating to lapsing of appropriations. The commission may use monies in the fund to carry out the purposes of this article. |
|---|
| 246 | 257 | | |
|---|
| 247 | 258 | | B. The COMMISSION may accept and spend federal monies and private grants, gifts, contributions and devises to assist in carrying out the purposes of this Article. END_STATUTE |
|---|
| 248 | 259 | | |
|---|
| 249 | 260 | | Sec. 11. Section 27-659, Arizona Revised Statutes, is amended to read: |
|---|
| 250 | 261 | | |
|---|
| 251 | 262 | | START_STATUTE27-659. Application to drill |
|---|
| 252 | 263 | | |
|---|
| 254 | 265 | | |
|---|
| 255 | 266 | | Sec. 12. Section 49-250, Arizona Revised Statutes, is amended to read: |
|---|
| 256 | 267 | | |
|---|
| 257 | 268 | | START_STATUTE49-250. Exemptions |
|---|
| 258 | 269 | | |
|---|
| 259 | 270 | | A. The director, by rule, may exempt specifically described classes or categories of facilities from the aquifer protection permit requirements of this article on a finding either that there is no reasonable probability of degradation of the aquifer or that aquifer water quality will be maintained and protected because the discharges from the facilities are regulated under other federal or state programs that provide the same or greater aquifer water quality protection as provided by this article. |
|---|
| 260 | 271 | | |
|---|
| 261 | 272 | | B. The following are exempt from the aquifer protection permit requirement requirements of this article: |
|---|
| 262 | 273 | | |
|---|
| 263 | 274 | | 1. Household and domestic activities. |
|---|
| 264 | 275 | | |
|---|
| 265 | 276 | | 2. Household gardening, lawn watering, lawn care, landscape maintenance and related activities. |
|---|
| 266 | 277 | | |
|---|
| 267 | 278 | | 3. The noncommercial use of consumer products generally available to and used by the public. |
|---|
| 268 | 279 | | |
|---|
| 269 | 280 | | 4. Ponds used for watering livestock and wildlife. |
|---|
| 270 | 281 | | |
|---|
| 271 | 282 | | 5. Mining overburden returned to the excavation site, including any common material that has been excavated and removed from the excavation site and that has not been subjected to any chemical or leaching agent or process of any kind. |
|---|
| 272 | 283 | | |
|---|
| 273 | 284 | | 6. Facilities used solely for surface transportation or storage of groundwater, surface water for beneficial use or reclaimed water that is regulated pursuant to section 49-203, subsection A, paragraph 7 for beneficial use. |
|---|
| 274 | 285 | | |
|---|
| 275 | 286 | | 7. Discharge to a community sewer system. |
|---|
| 276 | 287 | | |
|---|
| 277 | 288 | | 8. Facilities that are required to obtain a permit for the direct reuse of reclaimed water. |
|---|
| 278 | 289 | | |
|---|
| 279 | 290 | | 9. Leachate resulting from the direct, natural infiltration of precipitation through undisturbed regolith or bedrock if pollutants are not added to the leachate as a result of any material or activity placed or conducted by man on the ground surface. |
|---|
| 280 | 291 | | |
|---|
| 281 | 292 | | 10. Surface impoundments used solely to contain storm runoff, except for surface impoundments regulated by the federal clean water act or article 3.1 of this chapter. |
|---|
| 282 | 293 | | |
|---|
| 283 | 294 | | 11. Closed facilities. However, if the facility ever resumes operation the facility shall obtain an aquifer protection permit and the facility shall be treated as a new facility for purposes of section 49-243. |
|---|
| 284 | 295 | | |
|---|
| 285 | 296 | | 12. Facilities for the storage of water pursuant to title 45, chapter 3.1 unless reclaimed water is added. |
|---|
| 286 | 297 | | |
|---|
| 287 | 298 | | 13. Facilities using central Arizona project water for underground storage and recovery projects under title 45, chapter 3.1, article 6. |
|---|
| 288 | 299 | | |
|---|
| 289 | 300 | | 14. Water storage at a groundwater saving facility that has been permitted under title 45, chapter 3.1. |
|---|
| 290 | 301 | | |
|---|
| 291 | 302 | | 15. Application of water from any source, including groundwater, surface water or wastewater, to grow agricultural crops or for landscaping purposes, except as provided in section 49-247. |
|---|
| 292 | 303 | | |
|---|
| 293 | 304 | | 16. Discharges to a facility that is exempt pursuant to paragraph 6 of this subsection if those discharges are regulated pursuant to 33 United States Code section 1342 or article 3.1 of this chapter. |
|---|
| 294 | 305 | | |
|---|
| 295 | 306 | | 17. Solid waste and special waste facilities if rules addressing aquifer protection are adopted by the director pursuant to section 49-761 or 49-855 and those facilities obtain plan approval pursuant to those rules. This exemption shall apply only if the director determines that aquifer water quality standards will be maintained and protected because the discharges from those facilities are regulated under rules adopted pursuant to section 49-761 or 49-855 that provide aquifer water quality protection that is equal to or greater than aquifer water quality protection provided pursuant to this article. |
|---|
| 296 | 307 | | |
|---|
| 297 | 308 | | 18. Facilities used in: |
|---|
| 298 | 309 | | |
|---|
| 299 | 310 | | (a) Corrective actions taken pursuant to chapter 6, article 1 of this title in response to a release of a regulated substance as defined in section 49-1001 except for those off-site facilities that receive for treatment or disposal materials that are contaminated with a regulated substance and that are received as part of a corrective action. |
|---|
| 300 | 311 | | |
|---|
| 301 | 312 | | (b) Response or remedial actions undertaken pursuant to article 5 of this chapter or pursuant to CERCLA. |
|---|
| 302 | 313 | | |
|---|
| 303 | 314 | | (c) Corrective actions taken pursuant to the resource conservation and recovery act of 1976, as amended (42 United States Code sections 6901 through 6992). |
|---|
| 304 | 315 | | |
|---|
| 305 | 316 | | (d) Other remedial actions that have been reviewed and approved by the appropriate governmental authority and taken pursuant to applicable federal or state laws. |
|---|
| 306 | 317 | | |
|---|
| 307 | 318 | | 19. Municipal solid waste landfills as defined in section 49-701 that have solid waste facility plan approval pursuant to section 49-762. |
|---|
| 308 | 319 | | |
|---|
| 309 | 320 | | 20. Storage, treatment or disposal of inert material. |
|---|
| 310 | 321 | | |
|---|
| 311 | 322 | | 21. Structures that are designed and constructed not to discharge and that are built on an impermeable barrier that can be visually inspected for leakage. |
|---|
| 312 | 323 | | |
|---|
| 313 | 324 | | 22. Pipelines and tanks designed, constructed, operated and regularly maintained so as not to discharge. |
|---|
| 314 | 325 | | |
|---|
| 315 | 326 | | 23. Surface impoundments and dry wells that are used to contain storm water in combination with discharges from one or more of the following activities or sources: |
|---|
| 316 | 327 | | |
|---|
| 317 | 328 | | (a) Firefighting system testing and maintenance. |
|---|
| 318 | 329 | | |
|---|
| 319 | 330 | | (b) Potable water sources, including waterline flushings. |
|---|
| 320 | 331 | | |
|---|
| 321 | 332 | | (c) Irrigation drainage and lawn watering. |
|---|
| 322 | 333 | | |
|---|
| 323 | 334 | | (d) Routine external building wash down without detergents. |
|---|
| 324 | 335 | | |
|---|
| 325 | 336 | | (e) Pavement wash water if no spills or leaks of toxic or hazardous material have occurred unless all spilled material has first been removed and no detergents have been used. |
|---|
| 326 | 337 | | |
|---|
| 327 | 338 | | (f) Air conditioning, compressor and steam equipment condensate that has not contacted a hazardous or toxic material. |
|---|
| 328 | 339 | | |
|---|
| 329 | 340 | | (g) Foundation or footing drains in which flows are not contaminated with process materials. |
|---|
| 330 | 341 | | |
|---|
| 331 | 342 | | (h) Occupational safety and health administration or mining safety and health administration safety equipment. |
|---|
| 332 | 343 | | |
|---|
| 333 | 344 | | 24. Industrial wastewater treatment facilities designed, constructed and operated as required by section 49-243, subsection B, paragraph 1 and using a treatment system approved by the director to treat wastewater to meet aquifer water quality standards prior to discharge, if that water is stored at a groundwater storage facility pursuant to title 45, chapter 3.1. |
|---|
| 334 | 345 | | |
|---|
| 335 | 346 | | 25. Any point source discharge caused by a storm event and authorized in a permit issued pursuant to section 402 of the clean water act or an Arizona pollutant discharge elimination system permit under article 3.1 of this chapter. |
|---|
| 336 | 347 | | |
|---|
| 337 | 348 | | 26. Except for class V wells that are operating as prescribed by rules adopted pursuant to article 3.3 of this chapter or 42 United States Code section 300h-1(c), any underground injection well covered by a permit issued under article 3.3 of this chapter or under 42 United States Code section 300h-1(c). |
|---|
| 338 | 349 | | |
|---|
| 339 | 350 | | 27. Coal combustion residuals units that are regulated under 40 Code of Federal Regulations part 257, subpart D or by a permit in effect under the coal combustion residuals program established pursuant to chapter 4, article 11 of this title and approved by the United States environmental protection agency as prescribed by 42 United State states Code section 6945(d)(1). |
|---|
| 340 | 351 | | |
|---|
| 341 | 352 | | 28. Helium exploration, water injection wells and production wells that are designed, constructed, operated and maintained to not discharge a contaminant into an aquifer as DETERMINED by the oil and gas conservation commission established by section 27-514. END_STATUTE |
|---|
| 342 | 353 | | |
|---|
| 343 | 354 | | Sec. 13. Legislative intent |
|---|
| 344 | 355 | | |
|---|
| 345 | 356 | | The legislature intends that any fees adopted pursuant to this act be similar to fees adopted by similarly situated states. |
|---|
| 346 | 357 | | |
|---|
| 347 | 358 | | Sec. 14. Succession |
|---|
| 348 | 359 | | |
|---|
| 349 | 360 | | A. All equipment, records, furnishings and other property, all data and investigative findings, all obligations and all appropriated monies allocated to the department of environmental quality to serve the oil and gas conservation commission are allocated to the oil and gas conservation commission. |
|---|
| 350 | 361 | | |
|---|
| 351 | 362 | | B. All personnel who are under the state personnel system and employed by the department of environmental quality to assist the oil and gas conversation commission are transferred to the oil and gas conservation commission. |
|---|