Oversight Of Chemicals Used In Oil & Gas

The act establishes a regulatory scheme that requires disclosure of certain chemical information for products used in downhole oil and gas operations (chemical disclosure information). The oil and gas conservation commission (commission) is required to utilize or develop a chemical disclosure website to collect and share certain chemical disclosure information with the public (chemical disclosure website).

On and after July 31, 2023, operators, service providers, and direct vendors that provide chemical products directly to an operator or service provider at a well site (discloser) for use in underground oil and gas operations (downhole operations) in the state must disclose to the commission:

• The trade name of the chemical product; and
• A list of the names of each chemical used in the chemical product.

The discloser must also provide the commission with a declaration that the chemical product contains no intentionally added perfluoroalkyl or polyfluoroalkyl chemicals.

For disclosers that were already selling, distributing, or using a chemical product for use in downhole operations in the state before July 31, 2023, the disclosure and declaration must be made at least 30 days before July 31, 2023. For disclosers that begin to sell or distribute a chemical product for use in downhole operations in the state, or that begin to use a chemical product in downhole operations in the state, on or after July 31, 2023, the disclosure and declaration must be made at least 30 days before the discloser begins selling, distributing, or using the chemical product.

If a manufacturer does not provide the disclosure information for a chemical product that it sells or distributes for use in downhole operations in the state to the discloser upon the request of the discloser or commission, the manufacturer must provide the commission with a trade secret form of entitlement for the chemical product. If, after making a request to the manufacturer, the discloser is unable to disclose the disclosure information, the discloser shall disclose to the commission:

• The name of the chemical product's manufacturer;
• The chemical product's trade name;
• The amount or weight of the chemical product; and
• A safety data sheet for the chemical product if it is available for disclosure by the discloser.

On and after July 31, 2023, an operator of downhole operations using a chemical product must disclose to the commission:

• The date of commencement of downhole operations;
• The county of the well site where downhole operations are being conducted;
• The unique numerical identifier assigned by the American Petroleum Institute to the well where downhole operations are being conducted and the US well number assigned to the well where downhole operations are being conducted; and
• The trade names and quantities of any chemical products the operator used in downhole operations.

The operator must also provide the commission with a declaration that the chemical product contains no intentionally added perfluoroalkyl or polyfluoroalkyl chemicals.

For downhole operations that commenced before July 31, 2023, and that will be ongoing on July 31, 2023, the disclosure and declaration must be made within 120 days after July 31, 2023. For downhole operations that commence on or after July 31, 2023, the disclosure and declaration must be made within 120 days after the commencement of downhole operations.

The commission will use the chemical disclosure information to create a chemical disclosure list for each well site, which will include an alphabetical list of names and Chemical Abstracts Service numbers of chemicals that will be used in downhole operations at the well site. The commission will post each chemical disclosure list on the chemical disclosure website. The commission shall provide the chemical disclosure list to the applicable operator within 7 days after the operator's disclosures.

The operator is required to disclose the chemical disclosure list to persons and entities near where downhole operations will be conducted. The disclosure of the chemical disclosure list to these persons and entities must be made within 30 days after the operator's receipt of the chemical disclosure list from the commission.

The commission will prepare and present an annual report to the general assembly that includes a list of chemicals used in downhole operations in the state in the prior calendar year.

For the 2022-23 state fiscal year, $61,500 is appropriated from the oil and gas conservation and environmental response fund to the department of natural resources (department) to implement the act, which amount is reappropriated to the office of the governor for use by the office of information technology to provide information technology services for the department.

(Note: This summary applies to this bill as enacted.)