The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Appropriations Committee on Agriculture, Environment, and General
Government
BILL: SB 1300
INTRODUCER: Senators Simon and Brodeur
SUBJECT: Permits for Drilling, Exploration, and Extraction of Oil and Gas Resources
DATE: April 9, 2025
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Barriero Rogers EN Favorable
2. Reagan Betta AEG Pre-meeting
3. RC
I. Summary:
SB 1300 requires the Department of Environmental Protection (DEP) to apply a balancing test
when determining whether the natural resources of certain waterbodies and shore areas of the
state will be adequately protected from potential harm caused by accidents or blowouts
associated with oil, gas, or petroleum drilling. The balancing test should assess the potential
impact of an accident or a blowout on such waterbodies and shore areas, including ecological
functions and water quality impacts. In addition, the balancing test must consider the ecological
community’s current condition, hydrologic connection, uniqueness, location, fish and wildlife
use, time lag, and the potential costs of restoration.
The bill has no impact on state revenue or expenditures. See Section V., Fiscal Impact Statement.
The bill has an effective date of July 1, 2025.
II. Present Situation:
Production of Oil and Gas Resources in Florida
Florida has minor crude oil reserves and accounts for less than 0.1 percent of the nation’s crude
oil production.
1
Onshore drilling for oil and natural gas in Florida began in 1901 and about 80
exploration wells were drilled in the state before oil was discovered in southwest Florida in 1943.
Annual crude oil production in the state peaked at more than 47 million barrels in 1978 with the
development of the Jay Field in northwestern Florida. Since 1978, statewide production has
declined and has been less than 3 million barrels each year since 2004. In 2022, Florida crude oil
production was about 1.2 million barrels. Geologists believe there may be substantial additional
reserves in the Gulf of Mexico off Florida’s western coast. However, since 1989, Florida has
1
U.S. Energy Information Administration (EIA), Profile Analysis, https://www.eia.gov/state/analysis.php?sid=FL (last
visited Mar. 17, 2025).
REVISED: BILL: SB 1300 Page 2
banned drilling in both Atlantic and Gulf of Mexico state waters.
2
In 2006, Congress banned oil
and natural gas leasing in federal offshore areas in the central Gulf of Mexico planning area
within 100 miles of Florida’s coastline and in most of the eastern Gulf of Mexico planning area
within 125 miles of Florida’s coast. The ban on federal oil and natural gas leases off the state’s
Gulf coast was to expire in 2022, but a 2020 presidential memorandum extended the ban until
2032.
3
On January 6, 2025, a presidential memorandum was issued pursuant to the Outer
Continental Shelf Lands Act that withdrew additional areas of the Gulf of Mexico from future oil
or natural gas leasing for purposes of exploration, development, or production.
4
On January 20,
2025, executive action was taken to repeal the January 6 ban on oil drilling in certain offshore
areas, including all of Florida’s coastland.
5
Florida does not have significant natural gas reserves.
6
Economically recoverable natural gas
reserves may lie offshore in the eastern Gulf of Mexico, but, as with crude oil, exploratory
drilling in state and federal waters in the eastern Gulf is prohibited. However, Florida does have
a small amount of natural gas production, all from the same fields that produce crude oil. Almost
all of that natural gas production is in the Jay Field in the Florida Panhandle, and most of that
natural gas is reinjected into the oil zones to maintain reservoir pressures and improve oil
production. As a result, only about five to fifteen percent of the state’s natural gas gross
withdrawals are marketed. Florida’s annual natural gas production peaked at almost 52 billion
cubic feet in 1978 (less than 0.3 percent of the U.S. total that year) but declined steadily in the
next three decades. Production rose again in 2010, reaching more than one-third of the 1978 peak
in 2012. It increased again, reaching almost one-third of the peak in 2018 before declining again.
In 2022, Florida’s total natural gas production was only about 8.4 billion cubic feet. Florida
receives nearly all the natural gas it consumes from the Gulf Coast region via major interstate
pipelines. Pipelines entering Florida bring natural gas into the state through Alabama and
Georgia.
7
Requirements for Drilling, Exploration, and Extraction of Oil and Gas Resources
In Florida, the DEP has regulatory authority over oil and gas resources.
8
The DEP’s Division of
Water Resource Management (Division) oversees the permitting process for drilling, production,
and exploration.
9
Before issuing a permit, the Division must consider:
• The nature, character, and location of the lands involved;
2
FLA. CONST. art. II, s. 7(c); sections 377.24(9) and 377.242(1)(a)5., F.S.
3
EIA, Profile Analysis, https://www.eia.gov/state/analysis.php?sid=FL.
4
Office of the White House, Memorandum on the Withdrawal of Certain Areas of the United States Outer Continental Shelf
from Oil or Natural Gas Leasing, https://perma.cc/6RD5-48QZ (last visited Mar. 20, 2025).
5
EIA, Profile Analysis, https://www.eia.gov/state/analysis.php?sid=FL; Office of the White House, Initial Recessions of
Harmful Executive Orders and Actions, https://www.whitehouse.gov/presidential-actions/2025/01/initial-rescissions-of-
harmful-executive-orders-and-actions/ (last visited Mar. 20, 2025); Office of the White House, Unleashing American Energy,
https://www.whitehouse.gov/presidential-actions/2025/01/unleashing-american-energy/ (last visited Mar. 21, 2025); U.S.
Bureau of Ocean Energy Management, Areas Under Restriction, https://www.boem.gov/oil-gas-energy/leasing/areas-under-
restriction (last visited Mar. 21, 2025).
6
EIA, Profile Analysis, https://www.eia.gov/state/analysis.php?sid=FL.
7
Id.
8
Section 377.242, F.S.; Fla. Admin. Code Chapters 62C-25 - 62C-30.
9
DEP, Oil and Gas Program, https://floridadep.gov/water/oil-gas (last visited Mar. 18, 2025); section 377.07, F.S. BILL: SB 1300 Page 3
• The nature, type, and extent of ownership of the applicant, including the length of time the
permit applicant has owned the rights claimed without having performed any of the
exploratory operations so granted or authorized.
• The proven or indicated likelihood of the presence of oil, gas, or related minerals in such
quantities as to warrant the exploration and extraction of such products on a commercially
profitable basis.
• For activities and operations concerning a natural gas storage facility, the nature, structure,
and proposed use of the natural gas storage reservoir is suitable for the storage and recovery
of gas without adverse effect to public health or safety or the environment.
10
A drilling permit is required and a preliminary site inspection must be conducted by the DEP
before beginning any work other than environmental assessments or surveying at a proposed
drilling site.
11
Regulations require the operator to case and cement wells in order to maintain well
control and prevent degradation of natural resources, including water and petroleum.
12
Drilling
permits are valid for one year from the date of approval.
13
Each permit must include an
agreement stating that the permitholder will allow division personnel to inspect at any time.
14
Before a permit is granted, the owner or operator is required to post a surety bond or other form
of security for each well.
15
The amount of the bond, which is determined by the Division, must
be sufficient to protect the owner of the surface rights of the land and ensure that the permittee
will restore the land to its original condition and contour after operations are completed.
16
In addition to a permit to drill, an operating permit is also required.
17
Operating permits are valid
for the life of the well, although each operating well and permit must be recertified every five
years.
18
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.
19
A separate permit is not required
for the performance of well stimulation techniques.
20
10
Section 377.241, F.S.
11
Fla. Admin. Code R. 62C-26.003.
12
Fla. Admin. Code R. 62C-27.005. The regulations specify standards for casing depth and pressure testing.
13
Fla. Admin. Code R. 62C-26.003.
14
Section 377.242, F.S.
15
Sections 377.244(1)(b), 377.2424(2), and 377.2425(1), F.S.; Fla. Admin. Code R. 62C-26.002.
16
Section 377.244(1)(b), F.S. For geophysical operations, the restoration requirement is less stringent, only requiring the land
to be returned to its general condition and contour similar to that in existence prior to such operations. Section 377.2424(2),
F.S.
17
Fla. Admin. Code R. 62C-26.008.
18
Id.
19
Id.
20
See section 377.22(2)(o)(p), F.S. The Division is required to adopt rules to “regulate the ‘shooting,’ perforating and
chemical treatment of wells,” and to “regulate secondary recovery methods, including the introduction of gas, air, water, or
other substance into producing formations”; see section 377.26, F.S. In regulating the vertical orientation of the well, the
division is required to “take into account technological advances in drilling and production technology, including, but not
limited to, horizontal well completions in the producing formation using directional drilling methods.” BILL: SB 1300 Page 4
Oil or gas producers must submit a monthly production report for each well to the Division and
the Department of Financial Services.
21
Abandoned wells and dry holes must be plugged
promptly in accordance with DEP regulations, and no well may be abandoned without prior
approval from the Division.
22
State Prohibitions on Drilling in Certain Areas
State law prohibits the permitting and construction of drilling and exploratory structures in
certain areas. For example, the construction or permitting of structures intended for the drilling
for, or production of, oil, gas, or other petroleum products is prohibited in the following areas:
• On submerged lands within bays or estuaries;
• Within one mile seaward of the state’s coastline;
• Within one mile of the seaward boundary of any park or aquatic or wildlife preserve, or on
the surface of a freshwater lake, river, or stream;
• Within one mile inland from the shoreline of the Gulf of Mexico, the Atlantic Ocean, or any
bay or estuary, or within one mile of any freshwater lake, river, or stream unless the DEP is
satisfied that the natural resources of such bodies of water and shore areas will be adequately
protected in the event of accident or blowout.
23
In addition, no drilling permits may be granted for the construction of structures intended for the
drilling for or production of oil, gas, or other petroleum products within Florida’s territorial seas,
or beneath state waters in the Atlantic and Gulf of America, as prohibited by both state law and
the Florida Constitution.
24
Local Government Regulation
While cities and counties do not operate oil and gas permitting programs, some, through their
land use regulations or zoning ordinances, require special exceptions for oil and gas activities or
limit such activities to certain zoning classifications.
25
Drilling permits within a municipality
require prior approval from the municipal governing authority, and permits for drilling in tidal
waters adjacent to municipalities or within three miles of municipal limits must also be approved
by the municipality.
26
Similarly, drilling on or near improved beaches
27
requires county
commissioner approval.
28
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.
29
21
Section 377.23, F.S.
22
Sections 377.24(3) and 377.2426, F.S.
23
Section 377.242(1)(a)1.-4., F.S.
24
FLA. CONST. art. II, s. 7(c); sections 377.24(9) and 377.242(1)(a)5., F.S.
25
See, e.g., Lee County, Fla., Land Development Code §§ 34-1651 and 34-145.
26
Section 377.24(5) and (6), F.S.
27
An improved beach, situated outside of the corporate limits of any municipality or town, is defined as any beach adjacent
to or abutting upon the tidal waters of the state and having not less than 10 hotels, apartment buildings, residences or other
structures, used for residential purposes, on or to any given mile of such beach. Section 377.24(8), F.S.
28
Section 377.24(7), F.S.
29
See, e.g., Lee County, Fla., Land Development Code §§ 34-1651 and 34-145. BILL: SB 1300 Page 5
Violations and Penalties
A person that violates any statute, rule, regulation, order, or permit relating to the regulation of
oil or gas resources, or who refuses inspection by the Division, is liable for damages caused to
the air, waters, or property of the state for the reasonable costs of tracing the source of the
discharge and for controlling and abating the source and the pollutants, and restoring the air,
waters, and property.
30
Such persons are also subject to judicial imposition of a civil penalty of
up to $10,000 for each offense.
31
Each day during any portion of which a violation occurs
constitutes a separate offense.
32
III. Effect of Proposed Changes:
Section 1 amends s. 377.242, F.S., which regulates permits for drilling or exploring and
extracting through well holes or by other means. Under current law, no structure intended for the
drilling for, or production of, oil, gas, or other petroleum products may be permitted or
constructed within one mile inland from the shoreline of the Gulf of Mexico, the Atlantic Ocean,
or any bay or estuary or within one mile of any freshwater lake, river, or stream unless the DEP
is satisfied that the natural resources of such bodies of water and shore areas of the state will be
adequately protected in the event of accident or blowout.
The bill provides that the DEP’s determination of whether a resource is adequately protected
must balance the measures in place to protect the natural resources with the potential harm to the
natural resources. This balancing test should assess the potential impact of an accident or a
blowout on the natural resources of such bodies of water and shore areas, including ecological
functions and any water quality impacts. The balancing test must consider the ecological
community’s current condition, hydrologic connection, uniqueness, location, fish and wildlife
use, time lag, and the potential costs of restoration.
Section 2 reenacts s. 377.243(1), F.S., for purposes of incorporating the amendments made by
this bill to s. 377.242, F.S.
Section 3 reenacts s. 377.37(1)(a), F.S., for purposes of incorporating the amendments made by
this bill to s. 377.242, F.S.
Section 4 provides an effective date of July 1, 2025.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
30
Section 377.37(1)(a), F.S.
31
Id.
32
Id. BILL: SB 1300 Page 6
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
None.
C. Government Sector Impact:
None.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends the following sections of the Florida Statutes: 377.242, 377.243,
and 377.37.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None. BILL: SB 1300 Page 7
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.