STORAGE NAME: h1143a.NRD
DATE: 3/25/2025
1
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: HB 1143
TITLE: Permits for Drilling, Exploration, and Extraction
of Oil and Gas Resources
SPONSOR(S): Shoaf and Tant
COMPANION BILL: SB 1300 (Simon)
LINKED BILLS: None
RELATED BILLS: None
Committee References
Natural Resources & Disasters
16 Y, 0 N
State Affairs
SUMMARY
Effect of the Bill:
The bill requires the Department of Environmental Protection to consider certain factors when determining
whether natural resources of certain bodies of water and shore areas are adequately protected from potential
accidents or blowouts from oil or gas drilling and exploration activities. Additionally, the bill prohibits certain oil
and gas drilling activities within 10 miles of a national estuarine research reserve.
Fiscal or Economic Impact:
The bill may have an indeterminate negative fiscal impact on the private sector.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
The bill requires the Department of Environmental Protection (DEP) to conduct a balancing test when granting a
permit for oil and gas activities in areas within one mile inland from the shoreline of the coast or other bodies of
water. DEP must balance the measures in place to protect the natural resources with the potential harm to the
natural resources when determining whether a natural resource will be adequately protected in the event of an
accident or a blowout from oil or gas drilling or exploration activities. (Section 2)
The bill requires the balancing test to assess the potential impact of an accident or a blowout on the natural
resources of such bodies of water and shore areas, including the ecological functions and any water quality
impacts. The balancing test must include the community’s current condition, hydrological connection, uniqueness,
location, fish and wildlife use, time lag, and the potential cost of restoration. (Section 2)
Notwithstanding any law or rule to the contrary, the bill prohibits drilling, exploration, or production of oil, gas, or
other petroleum products within 10 miles of a national estuarine research reserve. (Section 1)
The effective date of the bill is July 1, 2025. (Section 5)
FISCAL OR ECONOMIC IMPACT:
PRIVATE SECTOR:
The bill may have an indeterminate negative fiscal impact on private entities that will not be permitted to conduct
oil and gas activities within 10 miles of national estuarine research reserves as prohibited by the bill.
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Oil and Gas Production JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
2
Oil and gas extraction is the exploration and production of oil and gas from wells. The production process involves
the taking of raw natural oil and gas from underground formations.
1 Conventional oil and gas resources are found
in concentrated underground locations, referred to as reservoirs, located in permeable rock formations, including
sandstone and carbonate.
2 Wells have historically been drilled vertically, straight down into a rock formation to
extract the conventional oil and gas resources. In 2023, there were 918,068 producing wells in the United States
providing over 13.3 million barrels of oil per day.
3
Florida has minor crude oil reserves and accounts for less than 0.1 percent of the nation's crude oil production.
4
Northwest and South Florida are the primary oil and gas producing areas in the state. In 2024, there were 10
producer wells in South Florida and 40 in Northwest Florida.
5 In total, wells in Florida produced approximately
630,385 barrels of oil and 899,022 million cubic feet of gas in 2024.
6
Permitting Oil and Gas Activities
States are the principal regulators of oil and gas production activities on state and private lands.
7 The federal
government, through the Department of the Interior’s Bureau of Land Management, has responsibility for
overseeing oil and gas development on federally managed lands; however, some states require operators on
federal public lands within state boundaries to comply with the state’s oil and gas rules.
8
Oil and Gas Regulation in Florida
The Department of Environmental Protection’s (DEP) Division of Water Resource Management (division) is
responsible for enforcing provisions related to oil and gas conservation,
9 overseeing the permitting process, and
monitoring oil and gas operations in Florida.
10
While cities and counties do not operate oil and gas permitting programs in Florida, some cities and counties,
through their land use regulations or zoning ordinances, require special exceptions for oil and gas activities or limit
oil and gas activities to certain zoning classifications.
11 When authorizing oil and gas activities, local governments
consider factors such as consistency with their comprehensive plan, injuries to communities or the public welfare,
and compliance with zoning ordinances.
12
Permitting Process
DEP’s Oil and Gas Program processes applications for oil and gas permits for the drilling of new wells, geophysical
exploration, and operational permits.
13 The Legislature has prohibited the permitting or construction of structures
intended for drilling for, or production of, oil, gas, or other petroleum projects within one mile inland from the
shoreline of certain bodies of water unless DEP is satisfied that the natural resources of such bodies of water and
1
United States Environmental Protection Agency (EPA), Overview of the Natural Oil and Gas Industry,
https://www.epa.gov/natural-gas-star-program/overview-oil-and-natural-gas-industry (last visited Mar. 13, 2025).
2
EPA, Well Completions and Workovers, https://www.epa.gov/natural-gas-star-program/well-completions-and-workovers
(last visited Mar. 13, 2025).
3
United States Energy Information Administration (EIA), U.S. Oil and Natural Gas Wells by Production Rate,
https://www.eia.gov/petroleum/wells/ (last visited Mar. 13, 2025).
4
EIA, Florida, https://www.eia.gov/state/analysis.php?sid=FL (last visited Mar. 13, 2025).
5
DEP, State Production Data 2000 to Current, available at https://floridadep.gov/water/oil-gas/documents/state-production-
data-2000-current (last visited Mar. 13, 2025).
6
Id.
7
Michael Ratner & Mary Tiemann, Cong. Research Serv., R 43148, An Overview of Unconventional Oil and Natural Gas:
Resources and Federal Actions, 10 (Apr. 22, 2015), available at https://fas.org/sgp/crs/misc/R43148.pdf (last visited Mar. 13,
2025).
8
Id.
9
Section 377.21, F.S.
10
Section 377.22, F.S.; See Rules 62C-25 - 62C-30, F.A.C., for oil and gas permitting and operating regulations.
11
See, e.g., LEE COUNTY, FLA., LAND DEV. CODE §§ 34-1651 and 34-145(c) (2025), available at
https://library.municode.com/fl/lee_county/codes/land_development_code?nodeId=LADECO_CH34ZO_ARTVIISUDIRE_DIV15
EXAC_S34-1651GEREALEXAC (last visited Mar. 13, 2025).
12
Id.
13
DEP, Oil and Gas Program, https://floridadep.gov/water/oil-gas (last visited Mar. 13, 2025). JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
3
shore area will be adequately protected in the event of an accident or blowout.
14 Additionally, DEP is prohibited
from issuing permits to drill a gas or oil well within certain areas.
15 When issuing permits for oil and gas
exploration or extraction, the division must consider the following criteria:
The nature, character, and location of the lands involved;
The nature, type, and extent of ownership of the applicant; and
The proven or indicated likelihood of the presence of oil, gas, or related minerals on a commercially viable
basis.
16
DEP must ensure that all precautions are taken to prevent the spillage of oil or other pollutants in all phases of
drilling for and extracting oil, gas, or other petroleum products.
17 Additionally, DEP is required to adopt rules to
require the wells to be drilled, cased, and plugged in a manner that prevents the escape of oil or other petroleum
products from one stratum to another.
18
Before any person begins work other than environmental assessments or surveying at the site of a proposed
drilling operation, a permit to drill is required and a preliminary site inspection must be conducted by DEP.
19 In
addition to the drilling permit, a permit to operate the well must be obtained before the well is used for its
intended purpose.
20 Operating permits are valid for the life of the well, although each operating well and permit
must be recertified every five years from the permit date.
21 Each application and subsequent recertification must
include: the appropriate fee; bond or security coverage; a spill prevention and cleanup plan; flowline specifications
and an installation plan; containment facility certification; and additional reporting and data submissions, such as
driller’s logs and monthly well reports.
22
Oil and Gas Drilling Environmental Impacts
There are various environmental and human impact concerns related to oil and gas drilling. Exploring and drilling
for oil can disturb land and marine ecosystems
23 and may impact human health.
24 Additionally, oil spills can
occur,
25 causing damage to ecosystems, polluting water and soil, and harming local wildlife
26 and plants.
27
In April 2024, DEP issued a notice of intent and draft permit for exploratory drilling in Calhoun County along the
Apalachicola River.
28 This prompted bipartisan opposition due to concerns that the drilling would harm the local
ecosystem and impact shellfish farmers and fisheries in the area.
29
14
Section 377.242(1)(a)4., F.S.
15
Oil and gas drilling and exploration are not authorized or are subject to local governmental approval in tidal waters, near
improved beaches, and within municipal boundaries. Section 377.24(5)-(9), F.S.
16
Section 377.241, F.S.
17
Section 377.22(2), F.S.
18
Id.
19
Rule 62C-26.003, F.A.C.
20
Rule 62C-26.008, F.A.C.; For further explanation of establishing a drilling site, see DEP, Drilling 101, available at
https://floridadep.gov/sites/default/files/Drilling%20101%20Factsheet.pdf (last visited Mar. 13, 2025).
21
Id.
22
Id.
23
EIA, Oil and Petroleum Projects Explained, https://www.eia.gov/energyexplained/oil-and-petroleum-products/oil-and-the-
environment.php (last visited Mar. 13, 2025).
24
Johnston et al., Impact of Upstream Oil Extraction and Environmental Public Health: A Review of the Evidence, 657 Sci Total
Environ., 187-199 (Mar. 20, 2019), available at https://pmc.ncbi.nlm.nih.gov/articles/PMC6344296/ (last visited Mar. 13,
2025).
25
Oil spills often are the result of accidents at oil wells or on the pipelines, ships, trains, and trucks that move oil from wells to
refineries. Oil spills contaminate soil and water and may cause explosions and fires. EIA, Oil and Petroleum Projects Explained,
https://www.eia.gov/energyexplained/oil-and-petroleum-products/oil-and-the-environment.php (last visited Mar. 13, 2025).
26
For example, early life-stage fish impacted by the Deepwater Horizon oil spill developed heart and spinal defects, while
older fish suffered from stunted growth, immune system problems, and impaired swimming abilities resulting in premature
mortality or reduced productivity. NOAA, How Deepwater Horizon Spurred Advances in Oil Toxicity Science,
https://blog.response.restoration.noaa.gov/how-deepwater-horizon-spurred-advances-oil-toxicity-science (last visited Mar.
13, 2025).
27
NOAA, Oil Spills, https://www.noaa.gov/education/resource-collections/ocean-coasts/oil-spills (last visited Mar. 13, 2025).
28
DEP, Current Applications, https://floridadep.gov/water/oil-gas/content/current-applications (last visited Mar. 13, 2025). JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
4
National Estuarine Research Reserves
The National Estuarine Research Reserve System is a network of estuaries
30 established across the nation for long-
term research, education, and coastal stewardship.
31 The reserves are a partnership between The National Oceanic
and Atmospheric Administration (NOAA) and the coastal states and territories.
32 NOAA’s Office for Coastal
Management is responsible for administering the reserve system. Each reserve is managed on a day-to-day basis
by a lead state agency with input from local partners.
33
Florida National Estuarine Research Reserves
There are three National Estuarine Research Reserves (NERRs) in the state: the Apalachicola NERR, the Guana
Tolomato Matanzas NERR, and the Rookery Bay NERR. DEP serves as the lead managing agency for all of these
reserves.
The Apalachicola NERR is considered one of the most productive estuarine systems in the northern hemisphere.
34
Spanning 234,715 acres, it is located 90 miles southwest of Tallahassee and was designated in 1979.
35 The
Apalachicola NERR serves as a major foraging area for migratory bird species and supports a local fishing industry
worth $14-16 million annually.
36
The Guana Tolomato Matanzas NERR encompasses the northernmost extent of mangrove habitat on the east coast
of the U.S. and some of Florida’s highest dunes.
37 It was designated in 1999 and spans 76,760 acres off the coast of
St. Augustine.
38 The Guana Tolomato Matanzas NERR includes salt marsh and mangrove tidal wetlands, oyster bars,
lagoons, upland habitat, and calving grounds for the endangered Right Whale.
39
The Rookery Bay NERR consists primarily of open waters, with the remaining habitat being mangroves.
40 It was
designated in 1978 and spans 110,00 acres five miles south of Naples.
41 The habitats protected by the Rookery Bay
NERR support 150 species of birds and endangered and threatened species, including the Florida Panther.
42
OTHER RESOURCES:
Interactive Map of Permitted Oil and Gas Wells in Florida
29
See Burlew, DEP Intends to OK Exploratory Oil Drilling in Apalachicola River Floodplain, Tallahassee Democrat (April 29,
2024), https://www.tallahassee.com/story/news/local/2024/04/29/fdep-to-ok-exploratory-oil-drilling-in-apalachicola-
river-floodplain-riverkeeper-environment-permit/73499033007/ (last visited Mar. 13, 2025); Menzel, Voices Rise Against Oil
Drilling in the Fragile Apalachicola River Basin, WFSU (December 13, 2024), https://news.wfsu.org/state-news/2024-12-
13/voices-rise-against-oil-drilling-in-the-fragile-apalachicola-river-basin (last visited Mar. 13, 2025); See also, Apalachicola
Bay and River Keeper v. Clearwater Land and Minerals, Fla. and DEP [24-002283]
https://www.doah.state.fl.us/ALJ/searchDOAH/detail.asp?T=3/13/2025%205:19:18%20PM (last visited Mar. 13, 2025).
30
Estuaries and their surrounding wetlands are bodies of water usually found where rivers meet the sea. Estuaries are home
to unique plant and animal communities that have adapted to brackish water. Brackish water is a mixture of fresh water
draining from the land and salty seawater. NOAA, About National Estuarine Research Reserves, https://coast.noaa.gov/nerrs/
(last visited Mar. 13, 2025).
31
NOAA, National Estuarine Research Reserves, https://oceanservice.noaa.gov/ecosystems/nerrs/ (last visited Mar. 13, 2025).
32
Id.
33
Id.
34
NOAA, Apalachicola National Estuarine Research Reserve, https://coast.noaa.gov/nerrs/reserves/apalachicola-bay.html (last
visited Mar. 13, 2025).
35
Id.
36
Id.
37
NOAA, Guana Tolomato Matanzas National Estuarine Research Reserve, https://coast.noaa.gov/nerrs/reserves/gtm.html
(last visited Mar. 13, 2025).
38
Id.
39
Id.
40
NOAA, Rookery Bay National Estuarine Research Reserve, https://coast.noaa.gov/nerrs/reserves/rookery-bay.html (last
visited Mar. 13, 2025).
41
Id.
42
Id. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
5
BILL HISTORY
COMMITTEE REFERENCE ACTION DATE
STAFF
DIRECTOR/
POLICY CHIEF
ANALYSIS
PREPARED BY
Natural Resources & Disasters
Subcommittee
16 Y, 0 N 3/25/2025 Moore Gawin
State Affairs Committee