Intrastate Oil and Natural Gas Use Act Exposed

The Intrastate Oil and Natural Gas Use Act was adopted by ALEC's Energy, Environment, and Agriculture Task Force at the 2013 Annual Meeting, approved by the Board of Directors August 5, 2013. (Accessed February 6, 2017)

ALEC Bill Text

Summary

The purpose of this bill is to create the Intrastate Oil and Natural Gas and Use Act. The bill establishes that the environmental regulation of oil and natural gas extracted and used within the state are exclusively regulated by the {relevant state agency}. The bill states the legislative authority and defines terms.

Whereas the Tenth Amendment to the United States Constitution guarantees to the states and their people all powers not granted to the federal government elsewhere in the Constitution and reserves to the state and people of {state} certain powers as they were understood at the time that {state} was admitted to statehood in {year}. The guaranty of those powers is a matter of contract between the state and people of (insert state) and the United States as of the time that the compact with the United States was agreed upon and adopted by {state} and the United States in {year}.

Whereas the Ninth Amendment to the United States Constitution guarantees to the people rights not granted in the Constitution and reserves to the people of {state} certain rights as they were understood at the time that {state} was admitted to statehood in {year}. The guaranty of those rights is a matter of contract between the state and people of (insert state) and the United States as of the time that the compact with the United States was agreed upon and adopted by {state} and the United States in {year}.

Whereas the regulation of intrastate commerce, including the natural environment as affected by intrastate business, is vested in the states under the Ninth and Tenth Amendments to the United States Constitution and is specifically retained by the State of {state}.

Model Policy

Section 1 Definitions (1) “Borders of {state}” means the boundaries of the State of {state} described in the {state} Constitution.

(2) The term “gas well” means those operations and facilities producing natural gas from the substrata of real property.

(3) The term “oil well” means those operations and facilities producing oil from the substrata of real property.

Section 2 Requirements

(a) In light of the above findings, environmental regulation in {state} for all purposes of regulating business activity performed in {state}, when the products of such business activities are held, maintained, or retained within the borders of {state}, is the principal responsibility of the {relevant state agency}.

(b) Any {state} oil or gas well producing oil or natural gas which is used commercially or privately and which is consumed or otherwise remains within the borders of {state} or undergoes primary conversion process and use in {state} shall be issued a permit to operate by the {relevant state agency} once the {relevant state agency} has certified that the oil or gas well and any associated facilities are compliant with all applicable state and federal laws or state and federal regulation.

(c) The Legislature declares that the United States Environmental Protection Agency, acting under the color of authority of Congress to regulate interstate commerce, lacks the authority to deny permits of operation to these oil and gas wells and facilities as the products of these wells and facilities have not traveled in interstate commerce.

(d) This article applies to oil and natural gas produced in {state}.

(e) This article applies only to the issuance of a permit of operation to an oil or gas well, the issuance of which permit is required by the Clean Water Act or by another equivalent state or federal statute or regulation. Nothing in this section shall be construed to limit the effect of any other state or federal statute or regulation.