HB 669 — AN ACT relating to oil and gas, making an appropriation therefor, and declaring an emergency.

UNOFFICIALCHAPTER COPY173 221 RSCHAPTER 173 ( HB 669/GA669 ) AN ACT relating to oil and gas, making an appropriation therefor, and declaring an emergency.

Page 1 of 15 HB066910.100 - 2123 - XXXX GA UNOFFICIAL COPY 22 RS HB 669/GA (a) An underground reservoir containing a common accumulation of oil or gas or both;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (14) "Well" means a borehole:

Page 2 of 15 HB066910.100 - 2123 - XXXX GA UNOFFICIAL COPY 22 RS HB 669/GA (a) Drilled or proposed to be drilled for the purpose of producing gas or oil;

and (b) For a shallow well, any owner of the right to develop, operate, and produce oil Page 3 of 15 HB066910.100 - 2123 - XXXX GA UNOFFICIAL COPY 22 RS HB 669/GA and gas from a pool and to appropriate the oil and gas therefrom, either for himself or herself, or for himself or herself and others.

If there is no oil and gas lease in existence with respect to the tract in question, the owner of the oil and gas rights therein shall be considered as operator to the extent of seven-seven-eighths eighths (7/8) of the oil and gas in that portion of the pool underlying the tract owned by the owner, and as a royalty owner as to the one-eighth (1/8) interest in the oil and gas.

Page 4 of 15 HB066910.100 - 2123 - XXXX GA UNOFFICIAL COPY 22 RS HB 669/GA (22) "Endangerment of underground sources of drinking water" means underground injection which may result in the presence in underground water, which supplies or can reasonably be expected to supply any public water system, of any contaminant and if the presence of the contaminant may result in the system's not complying with any national primary drinking water regulation or may otherwise adversely affect the health of persons;

and CHAPTER 173 3 (c) For storage of hydrocarbons which are liquid at standard temperature and pressure;

Page 5 of 15 HB066910.100 - 2123 - XXXX GA UNOFFICIAL COPY 22 RS HB 669/GA (28) "Best management practices" means demonstrated practices intended to control site runoff and pollution of surface water and groundwater to prevent or reduce the pollution of waters of the Commonwealth;

(37) "Emergency spill or discharge" means an uncontrolled release, spill, or discharge associated with an oil or gas well or production facility that has an immediate adverse impact to public health, safety, or the environment as declared by the Page 6 of 15 HB066910.100 - 2123 - XXXX GA UNOFFICIAL COPY 22 RS HB 669/GA secretary of the cabinet;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (a) Is known only to the hydraulic fracturing treatment's owners, employees, former employees, or persons under contractual obligation to hold the information in confidence;

Page 7 of 15 HB066910.100 - 2123 - XXXX GA UNOFFICIAL COPY 22 RS HB 669/GA (44) "Stratigraphic test well" means an exploratory borehole drilled for the sole purpose of acquiring subsurface geological and structure test data;

Page 8 of 15 HB066910.100 - 2123 - XXXX GA UNOFFICIAL COPY 22 RS HB 669/GA 2.

or CHAPTER 173 5 7.

and (48) "Orphan well" means any oil or gas well, as defined in subsection (14) of this section, which has been determined by the cabinet to be improperly abandoned or Page 9 of 15 HB066910.100 - 2123 - XXXX GA UNOFFICIAL COPY 22 RS HB 669/GA improperly closed, and that[:that [:

Page 10 of 15 HB066910.100 - 2123 - XXXX GA UNOFFICIAL COPY 22 RS HB 669/GA (c) Orphan wells and abandoned storage tank facilities determined by the cabinet to be eligible for plugging, removal, reclamation, and clean up funds from the Kentucky abandoned storage tank and orphan well reclamation fund shall be addressed in accordance with this section and KRS 353.561, 353.563, and 353.564.

(2) The Kentucky abandoned storage tank and orphan well reclamation fund is hereby created as an interest-bearing,interest- bearing, restricted, agency account.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY 1.

Proper remediation, reclamation, and abandonment of abandoned Page 11 of 15 HB066910.100 - 2123 - XXXX GA UNOFFICIAL COPY 22 RS HB 669/GA storage tank facilities posing an imminent threat.

Implementation of best management practices at sites associated with Page 12 of 15 HB066910.100 - 2123 - XXXX GA UNOFFICIAL COPY 22 RS HB 669/GA eligible wells;

117-58,117- 58, shall be placed into a separate account within the fund to administer and award contracts which are CHAPTER 173 7 committed to and issued for Page 13 of 15 HB066910.100 - 2123 - XXXX GA UNOFFICIAL COPY 22 RS HB 669/GA the purposes of Pub.

117-117-58: 58:

(13) As used in this section, "grant types" means the initial, formula, and performance grant categories that states can use to apply for moneys to clean up orphan wells described in the December 17, 2021, guidance to states issued by the Page 14 of 15 HB066910.100 - 2123 - XXXX GA UNOFFICIAL COPY 22 RS HB 669/GA United States Department of the Interior.

PageSigned 15by ofGovernor 15April HB066910.1008, -2022. 2123 - XXXX GA

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