HOUSE BILL No. 5367

February 16, 2016, Introduced by Reps. Irwin, Sarah Roberts, Hovey-Wright, Chang, Greig, Plawecki, Hoadley, Townsend, Moss, LaVoy, Schor, Geiss, Phelps, Singh, Wittenberg and Zemke and referred to the Committee on Energy Policy.

 

     A bill to amend 1994 PA 451, entitled

 

"Natural resources and environmental protection act,"

 

(MCL 324.101 to 324.90106) by adding sections 61531, 61532, 61533,

 

and 61534.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 61531. (1) In addition to other requirements of this

 

part, this section and sections 61532 to 61534 apply to wells that

 

are used or are intended for use for hydraulic fracturing.

 

     (2) As used in this section and in sections 61532 to 61534:

 

     (a) "Additive" means any substance or combination of

 

substances found in a hydraulic fracturing fluid, including a

 

proppant, that is added to a base fluid in the context of a

 

hydraulic fracturing operation, whether or not the function of the

 

substance or combination of substances is to create fractures in a

 

formation.


     (b) "Applicant" means an applicant for a permit under this

 

part for a natural gas well.

 

     (c) "Base fluid" means the base fluid type used in a

 

particular hydraulic fracturing operation, such as water, including

 

fresh water and recycled water, nitrogen gas and foam fluids, and

 

hydrocarbon gas.

 

     (d) "CAS number" means the unique identification number

 

assigned by the Chemical Abstracts Service to a chemical

 

ingredient.

 

     (e) "Chemical Abstracts Service" means the chemical registry

 

that is the authoritative collection of disclosed chemical

 

substance information.

 

     (f) "Chemical ingredient" means a discrete chemical

 

constituent with its own specific name or identity, such as a CAS

 

number, that is contained in an additive.

 

     (g) "Fracturing additive system" means a specific combination

 

of additives that is made available as a total system that is

 

designed to serve multiple purposes and is added to a base fluid in

 

the context of a hydraulic fracturing operation.

 

     (h) "Health professional" means a physician, industrial

 

hygienist, toxicologist, epidemiologist, nurse, or emergency

 

responder providing medical or other health services to an

 

individual exposed to a chemical ingredient.

 

     (i) "Hydraulic fracturing" means injecting foam or fluid in a

 

well under pressure to create fractures in a formation and thereby

 

enhance production of hydrocarbons.

 

     (j) "Hydraulic fracturing fluid" means the fluid used to

 


perform hydraulic fracturing and includes the applicable base fluid

 

and all additives.

 

     (k) "Hydraulic fracturing fluid tracer" means an element,

 

compound, or isotope that is added to hydraulic fracturing fluid to

 

delineate groundwater flow paths and estimate time of travel, and

 

that meets both of the following requirements:

 

     (i) The tracer substance is traceable to a specific person

 

after the tracer substance is used in a hydraulic fracturing

 

operation.

 

     (ii) As determined by the department, use of the tracer

 

substance in a hydraulic fracturing operation will not endanger

 

public health, safety, or welfare or the environment.

 

     (l) "Master list" means a list of all chemical ingredients,

 

and their associated CAS numbers, that were used by a permittee or

 

a service company, or were supplied by a supplier to a permittee or

 

a service company, during a calendar year in connection with any

 

hydraulic fracturing operations conducted in this state.

 

     (m) "Material safety data sheet" means a material safety data

 

sheet authorized under 29 CFR 1910.

 

     (n) "Permittee" means a person that has been issued a permit

 

under this part for a natural gas well.

 

     (o) "Proppant" means sand or another natural or man-made

 

material that is used in a hydraulic fracturing operation to

 

prevent artificially created or enhanced fractures from closing

 

once the treatment is completed.

 

     (p) "Purpose", unless the context implies otherwise, means a

 

brief descriptor of the intended uses or functions of an additive

 


or a fracturing additive system, such as acid, biocide, breaker,

 

corrosion inhibitor, crosslinker, demulsifier, friction reducer,

 

gel, iron control agent, oxygen scavenger, pH adjusting agent,

 

proppant, scale inhibitor, or surfactant.

 

     (q) "Service company" means a person that performs hydraulic

 

fracturing in this state for a permittee.

 

     (r) "Supplier" means a person, including an operator but

 

excluding a service company, that provides an additive or a

 

fracturing additive system to a permittee for use in connection

 

with hydraulic fracturing.

 

     (s) "Trade name" means the name under which an additive or a

 

fracturing additive system is sold or marketed.

 

     Sec. 61532. (1) The department shall not issue a permit under

 

this part to drill a well that will use hydraulic fracturing as a

 

production technique unless the applicant provides to the

 

department all of the following information for its review and

 

approval:

 

     (a) The type and volume of base fluid used in the hydraulic

 

fracturing operation, expressed in gallons or other units approved

 

by the department.

 

     (b) The trade name and supplier of each additive or of the

 

fracturing additive system, as applicable, that is to be used in

 

the hydraulic fracturing fluid.

 

     (c) The purpose of each additive or of the fracturing additive

 

system, as applicable.

 

     (d) A list of all chemical ingredients contained in each

 

additive or in the fracturing additive system, as applicable,

 


described under subdivision (b), and their associated CAS numbers.

 

     (e) The actual or maximum concentration of each chemical

 

ingredient listed under subdivision (d), expressed as a percent by

 

mass of the total volume of hydraulic fracturing fluid used.

 

     (f) The material safety data sheets associated with chemical

 

ingredients to be used in the hydraulic fracturing operation.

 

     (g) The name of the service company that will be used, when

 

known.

 

     (h) An evaluation of whether there are alternative hydraulic

 

fracturing operations that could be utilized with less potential

 

risk to public health, safety, or welfare or to the environment

 

than the proposed hydraulic fracturing operation and, if an

 

alternative exists, the reasons why the alternative is not being

 

proposed.

 

     (i) The specific substances in the hydraulic fracturing fluid

 

tracer that will be used in conjunction with the hydraulic

 

fracturing operation.

 

     (2) A permittee that intends to use a hydraulic fracturing

 

operation that is not currently authorized in the permit shall

 

provide the information described in subsection (1) to the

 

department for its review and approval.

 

     (3) A permittee that wishes to modify his or her hydraulic

 

fracturing operation in a manner inconsistent with the information

 

provided to the department under subsection (1) or (2) shall

 

provide updated information to the department for its review and

 

approval.

 

     (4) The department shall post the information provided under

 


subsections (1), (2), and (3) on the department's website for a

 

period of at least 60 days prior to making a decision under this

 

section, to allow for public notice and comment. The information

 

shall remain on the website until 3 years after completion of the

 

hydraulic fracturing operation. In addition, the department shall

 

provide notice to both of the following that information regarding

 

a proposed hydraulic fracturing operation has been posted on its

 

website:

 

     (a) Media outlets in the vicinity of the location of the

 

proposed hydraulic fracturing operation.

 

     (b) The local units of government in which the proposed

 

hydraulic fracturing operation will occur.

 

     (5) Following the period specified for public notice and

 

comment under subsection (4), the department may approve a proposed

 

hydraulic fracturing operation proposal submitted under this

 

section. However, if the department determines that an alternative

 

hydraulic fracturing operation that provides greater protection to

 

public health, safety, or welfare or to the environment is

 

feasible, the department shall disapprove the proposed hydraulic

 

fracturing operation. If the department disapproves a proposed

 

hydraulic fracturing operation proposal under this subsection, the

 

applicant or permittee may resubmit a modified hydraulic fracturing

 

operation proposal for the department's consideration.

 

     (6) An applicant or permittee is not responsible for unknown

 

inaccuracies in the information that is provided to the department

 

under subsection (1)(b) that the applicant or permittee received

 

from a supplier or third-party manufacturer of the additives.

 


     Sec. 61533. (1) On or before February 1 of each year, a

 

permittee that utilized hydraulic fracturing during the previous

 

calendar year shall submit to the department both of the following

 

related to the use of hydraulic fracturing operations during that

 

year:

 

     (a) A master list.

 

     (b) A report listing the total quantity of each chemical

 

ingredient, identified by name and CAS number, that was used for

 

hydraulic fracturing operations in this state during the previous

 

calendar year.

 

     (2) On or before March 1 of each year, the department shall

 

compile and make publicly available a comprehensive list of

 

chemical ingredients and quantities used that is aggregated from

 

all the information submitted to the department pursuant to

 

subsection (1).

 

     Sec. 61534. (1) A person shall supply the following

 

information related to hydraulic fracturing to a health care

 

professional:

 

     (a) Information regarding additives or chemical ingredients

 

needed by the health care professional for diagnostic purposes.

 

This information shall be provided directly to the health care

 

professional as follows:

 

     (i) Immediately upon request, in a case identified by the

 

health care professional as a medical emergency. If the health care

 

professional's initial request for information does not satisfy the

 

requirements of a statement of need as described in subsection (2),

 

as soon after the emergency as circumstances permit, the health

 


care professional shall provide to the person disclosing the

 

information a written statement of the need for the information.

 

     (ii) Upon receipt of a written statement of need from the

 

health care professional, in cases that are not medical

 

emergencies.

 

     (b) Any other information, the disclosure of which is required

 

by a state or federal law.

 

     (2) The statement of need referred to in subsection (1)(a)(i)

 

or (ii) shall state all of the following:

 

     (a) The health care professional has a reasonable basis to

 

believe the information is needed for diagnosis or treatment of an

 

individual.

 

     (b) The individual being diagnosed or treated may have been

 

exposed to the chemical ingredient.

 

     (c) Knowledge of the specific chemical ingredient identity is

 

likely to assist in diagnosis or treatment.