97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3534
 
Introduced 2/8/2012, by Sen. John O. Jones
 
SYNOPSIS AS INTRODUCED:



225 ILCS 725/6.8 new

 Amends the Illinois Oil and Gas Act. Creates a new provision concerning the extraction of hydrocarbons from shale using hydraulic fracturing. Provides the Department of Natural Resources shall, by rule, require an operator of a well on which a hydraulic fracturing treatment is performed to (i) complete specified forms that includes the total volume of water used and each chemical ingredient, subject to certain federal requirements, (ii) post the form on a specified website, (iii) submit the form to the Department, and (iv) provide the Department a list of all other chemical ingredients not previously listed. Provides that the Department, shall, by rule, require a service company that performs hydraulic fracturing treatments to (i) provide the operator of the well certain information, (ii) prescribe a process by which an entity may withhold and declare certain information as a trade secret but still comply with the disclosure requirements, (iii) require a person challenging a claim of entitlement to a trade secret to file the challenge by a specified date, (iv) limit the persons who may challenge a claim of entitlement to a trade secret, (vi) require, when a trade secret challenge occurs, that the Department promptly notify the service company performing the hydraulic fracturing treatment on the relevant well, and (v) prescribe a process, consistent with federal rules, that permits a health professional or emergency responder to obtain trade secret information. Provides that the protection and challenge of trade secrets under the provision is also governed by the State's Freedom of Information Act. 



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A BILL FOR
 


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1 AN ACT concerning regulation.


2 Be it enacted by the People of the State of Illinois,

3represented in the General Assembly:



4 Section 5. The Illinois Oil and Gas Act is amended by 
5adding Section 6.8 as follows:

6 (225 ILCS 725/6.8 new)
7 Sec. 6.8. Extraction of hydrocarbons from shale using 
8hydraulic fracturing.
9 (a) The Department, by rule, shall: 
10  (1) require an operator of a well on which a hydraulic 
11 fracturing treatment is performed to: 
12   (A) complete the form posted on the hydraulic 
13 fracturing chemical registry Internet website of the 
14 Ground Water Protection Council and the Interstate Oil 
15 and Gas Compact Commission with regard to the well; 
16   (B) include in the form completed under 
17 subparagraph (A): 
18    (i) the total volume of water used in the 
19 hydraulic fracturing treatment; and 
20    (ii) each chemical ingredient that is subject 
21 to the requirements of 29 C.F.R. 1910.1200(g)(2), 
22 as provided by a service company, chemical 
23 supplier, or by the operator, if the operator 
 
 
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1 provides its own chemical ingredients; 
2   (C) post the completed form described by 
3 subparagraph (A) on the website described by that 
4 subparagraph or, if the website is discontinued or 
5 permanently inoperable, post the completed form on 
6 another publicly accessible Internet website specified 
7 by the Department; 
8   (D) submit the completed form described by 
9 subparagraph (A) to the Department with the well 
10 completion report for the well; and 
11   (E) in addition to the completed form specified in 
12 subparagraph (D), provide to the Department a list, to 
13 be made available on the Internet website of the Ground 
14 Water Protection Council and the Interstate Oil and Gas 
15 Compact Commission or, if necessary, another publicly 
16 accessible website, of all other chemical ingredients 
17 not listed on the completed form that were 
18 intentionally included and used for the purpose of 
19 creating a hydraulic fracturing treatment for the 
20 well; the Department, by rule, shall ensure that an 
21 operator, service company, or supplier is not 
22 responsible for disclosing ingredients that: 
23    (i) were not purposely added to the hydraulic 
24 fracturing treatment; 
25    (ii) occur incidentally or are otherwise 
26 unintentionally present in the treatment; or 
 
 
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1    (iii) in the case of the operator, are not 
2 disclosed to the operator by a service company or 
3 supplier; the rule shall not require that the 
4 ingredients be identified based on the additive in 
5 which they are found or that the concentration of 
6 such ingredients be provided; 
7  (2) require a service company that performs a hydraulic 
8 fracturing treatment on a well or a supplier of an additive 
9 used in a hydraulic fracturing treatment on a well to 
10 provide the operator of the well with the information 
11 necessary for the operator to comply with paragraph (1); 
12  (3) prescribe a process by which an entity required to 
13 comply with paragraph (1) or (2) may withhold and declare 
14 certain information as a trade secret, including, but not 
15 limited to, the identity and amount of the chemical 
16 ingredient used in a hydraulic fracturing treatment; 
17  (4) require a person who desires to challenge a claim 
18 of entitlement to trade secret protection under paragraph 
19 (3) to file the challenge not later than the second 
20 anniversary of the date the relevant well completion report 
21 is filed with the Department; 
22  (5) limit the persons who may challenge a claim of 
23 entitlement to trade secret protection under paragraph (3) 
24 to: 
25   (A) the landowner on whose property the relevant 
26 well is located; 
 
 
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1   (B) a landowner who owns property adjacent to 
2 property described by subparagraph (A); or 
3   (C) a department or agency of this State with 
4 jurisdiction over a matter to which the claimed trade 
5 secret is relevant; 
6  (6) require, in the event of a trade secret challenge, 
7 that the Department promptly notify the service company 
8 performing the hydraulic fracturing treatment on the 
9 relevant well, the supplier of the additive or chemical 
10 ingredient for which the trade secret claim is made, or any 
11 other owner of the trade secret being challenged and 
12 provide the owner an opportunity to substantiate its trade 
13 secret claim; and 
14  (7) prescribe a process, consistent with 29 C.F.R. 
15 1910.1200, for an entity described by paragraph (1) or (2) 
16 to provide information, including information that is a 
17 trade secret as defined by Appendix D to 29 C.F.R. 
18 1910.1200, to a health professional or emergency responder 
19 who needs the information in accordance with subsection (i) 
20 of that section of 29 C.F.R. 1910.1200. 
21 (b) The protection and challenge of trade secrets under 
22this Section is governed by subsection (g) of Section 7 of the 
23Freedom of Information Act. 
24 (c) This Section applies only to the extraction of 
25hydrocarbons from shale.