The House passed the Senate-version of the Kentucky Oil and Gas Regulatory Modernization Act (SB 186) Wednesday. The measure will now head to Governor Beshear’s desk for his signature.
The bill, which is sponsored by House Majority Floor Leader Rocky Adkins (HB 386) and Senator Julian Carroll (SB 186), is the result of six months of negotiations with the Kentucky Chamber of Commerce, the Kentucky Oil and Gas Association, the Energy & Environment Cabinet, the Department of Natural Resources, the Division of Oil & Gas, the Kentucky Division of Water, the Kentucky Resources Council, the Kentucky Farm Bureau, and other industry leaders.
SB 186 and HB 386 make the first significant reforms to Kentucky’s regulation of the oil and gas industry in approximately 20 years. During that time there has been significant technological advances in drilling practices which have led to an oil and gas boom throughout the United States. The Kentucky Oil and Gas Modernization Act addresses those technological advances by balancing the need to establish a pro-investment, pro-job creation approach with an enhanced commitment by the oil and gas industry to environmental protections in the Commonwealth and our local communities.
Specifically the bill will:
– Offer regulatory certainty for the development of Kentucky’s deep shale resources.
– Ensure “best management practices” for well site reclamation.
– Establish water quality testing requirements for deep horizontal drilling.
– Require FracFocus disclosure for high volume horizontal fracturing (NOTE: FracFocus is a national model used by 16 other oil and gas states).