AB 159 — Prohibits hydraulic fracturing in this State. (BDR 46-593)

(Reprinted with amendments adopted on April 24, 2017) FIRST REPRINT A.B.

Existing law requires the Division of Minerals of the Commission on Mineral Resources and the Division of Environmental Protection of the State Department of Conservation and Natural Resources, jointly, to develop a hydraulic fracturing programregulations forto certainimplement purposesthe inprogram. this State.

The(NRS Commission522.119) isIf requireda person wishes to adoptdrill regulationsand operate an oil or gas well, including a well that is intended to implementbe hydraulically fractured, the program.person must first obtain a permit from the Division of Minerals.

(NRS 522.119)522.050) IfSection a1 personof wishesthis tobill drillprohibits andany operateperson anfrom oilengaging orin gashydraulic well,fracturing includingin athis wellState, thatand issection intended5 toof bethis hydraulicallybill (NRSrepeals 522.050)eprovisions personrelating mustto first obtain a permit from the Divisionhydraulic offracturing Minerals.program.

Section 1 of this bill prohibits any person from engaging in hydraulic fracturing in this State, and section 5 of this bill repeals provisions relating to the hydraulic fracturing program.

Section 4 of this bill provides that any permit issued by the Division of Minerals before the effective date of this bill, authorizing a person to drill and operate an oil or gas well that is or is intended to be hydraulically fractured, expiresremains onvalid thatfor date.the period for which the Division of Minerals issued the permit.

-Section *AB159*4 –also 2authorizes –the THEAdministrator PEOPLEof OFthe THEDivision STATEto OFextend NEVADA,the REPRESENTEDdate INof SENATEexpiration ANDof ASSEMBLY,the DOpermit ENACTby ASnot FOLLOWS:more than 1 year upon application by the holder of the permit.

- *AB159_R1* – 2 – THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

(7) That every person who produces oil or gas in this State keep and maintain for a period of 5 years within this State complete and accurate record of the quantities thereof, which must be - *AB159**AB159_R1* – 3 – available for examination by the Division or its agents at all reasonable times.

- *AB159**AB159_R1* – 4 – Sec.

AnyNotwithstanding the provisions of section 1 of this act, any permit issued before the effective date of this act by the Division of Minerals of the Commission on Mineral Resources that authorizes a person to drill and operate an oil or gas well in this State that is or is intended to be hydraulically fractured expi2.sremains Asvalid usedfor inthe thisperiod section,for “hydraulicallywhich fractured”the hasDivision issued the meaningpermit ascribedif tothe “hydraulicholder fracturing”of inthe sectionpermit 1is ofotherwise thisqualified act.to hold the permit during that period.

2.

The Administrator of the Division may, upon application by the holder of a permit described in subsection 1, extend the date of expiration of the permit by not more than 1 year.

The Administrator may grant more than one extension of a permit pursuant to this subsection, but the date of expiration of the permit may not be extended in any case to a date more than 5 years after the original date of expiration.

Any extension granted pursuant to this subsection:

(a) Must be determined in accordance with any applicable laws or regulations in effect on January 1, 2017.

(b) Does not authorize the holder of the permit for which the Administrator grants the extension to hydraulically fracture the oil or gas well more than once.

(c) Is invalid if the permit for which the Administrator grants the extension is revoked.

3.

As used in this section, “hydraulically fracture” has the meaning ascribed to “hydraulic fracturing” in section 1 of this act.

“Hydraulic fracturing” or “hydraulically fractured” means the process of pumping a fluid into or under the surface of the ground to create fractures in the rock to facilitate the production or recovery of oil or gas.

and (c)- Provide*AB159_R1* for– notice5 to– members of the general public concerning activities relating to hydraulic fracturing in this state.

3.Protection” means the Division of Environmental Protection of the State Department of Conservation and Natural Resources.

AsH used- in*AB159_R1* this section, “Division of Environmental Protection” means the Division of Environmental Protection of the State Department of Conservation and Natural Resources.

H - *AB159*