Bill > SB2231

This bill makes several changes to Tennessee law concerning oil and gas drilling operations, primarily by updating definitions and procedural requirements. It clarifies the definitions of "operator" (someone responsible for drilling and operating wells), "person" (including various entities like corporations and partnerships), and "producer" (owner or operator of a well producing oil or gas). The bill also defines "well" as a borehole drilled for or producing oil or gas. It mandates that surface disturbances related to drilling cannot occur until a permit application is submitted and specifies that permits will not be issued if wells are located too close to streams. The bill requires operators to obtain a permit before drilling or operating a well and makes compliance with an approved operator's plan a condition of the permit, with violations leading to suspension, revocation, bond forfeiture, or civil penalties. It also updates language to refer to "oil" instead of "crude petroleum" and removes outdated sections. Furthermore, the bill introduces new requirements for notifying surface property owners about proposed drilling operations and their associated surface disturbances, requiring their consent or a court order for a permit to be issued. It also establishes a process for issuing notices of violation, assessing civil penalties (up to $10,000 per day), and forfeiting bonds for non-compliance, with detailed procedures for appeals and hearings. The bill also clarifies that penalties and bond forfeitures will be placed in a dedicated "Tennessee oil and gas reclamation fund" and outlines specific measures for preventing soil erosion and water pollution at well sites, as well as requirements for access road construction and maintenance. Finally, it directs the Tennessee Code Commission to move the Mineral Test Hole Regulatory Act from Title 60 to Title 59, creating a new chapter for it.