1     
OIL AND GAS AMENDMENTS

2     
2019 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Logan Wilde

5     
Senate Sponsor: ____________

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7     LONG TITLE
8     General Description:
9          This bill modifies oil and gas provisions.
10     Highlighted Provisions:
11          This bill:
12          ▸     addresses powers of a political subdivision relating to regulation of activity that is
13     incident to an oil and gas activity; and
14          ▸     makes technical changes.
15     Money Appropriated in this Bill:
16          None
17     Other Special Clauses:
18          None
19     Utah Code Sections Affected:
20     AMENDS:
21          10-9a-102, as last amended by Laws of Utah 2018, Chapter 460
22          17-27a-102, as last amended by Laws of Utah 2018, Chapter 460
23          40-6-2.5, as enacted by Laws of Utah 2018, Chapter 460
24     

25     Be it enacted by the Legislature of the state of Utah:
26          Section 1. Section 10-9a-102 is amended to read:
27          10-9a-102. Purposes -- General land use authority.

28          (1) The purposes of this chapter are to provide for the health, safety, and welfare, and
29     promote the prosperity, improve the morals, peace and good order, comfort, convenience, and
30     aesthetics of each municipality and its present and future inhabitants and businesses, to protect
31     the tax base, to secure economy in governmental expenditures, to foster the state's agricultural
32     and other industries, to protect both urban and nonurban development, to protect and ensure
33     access to sunlight for solar energy devices, to provide fundamental fairness in land use
34     regulation, and to protect property values.
35          (2) To accomplish the purposes of this chapter, municipalities may enact all
36     ordinances, resolutions, and rules and may enter into other forms of land use controls and
37     development agreements that they consider necessary or appropriate for the use and
38     development of land within the municipality, including ordinances, resolutions, rules,
39     restrictive covenants, easements, and development agreements governing uses, density, open
40     spaces, structures, buildings, energy efficiency, light and air, air quality, transportation and
41     public or alternative transportation, infrastructure, street and building orientation and width
42     requirements, public facilities, fundamental fairness in land use regulation, considerations of
43     surrounding land uses and the balance of the foregoing purposes with a landowner's private
44     property interests, height and location of vegetation, trees, and landscaping, unless expressly
45     prohibited by law.
46          (3) (a) Any ordinance, resolution, or rule enacted by a municipality pursuant to its
47     authority under this chapter shall comply with the state's exclusive jurisdiction to regulate oil
48     and gas activity, as described in Section 40-6-2.5.
49          (b) A municipality may enact an ordinance, resolution, or rule that regulates [surface]
50     activity incident to an oil and gas activity if the municipality demonstrates that the regulation:
51          (i) is necessary for the purposes of this chapter;
52          (ii) does not effectively or unduly limit, ban, or prohibit an oil and gas activity; and
53          (iii) does not interfere with the state's exclusive jurisdiction to regulate oil and gas
54     activity, as described in Section 40-6-2.5.
55          Section 2. Section 17-27a-102 is amended to read:
56          17-27a-102. Purposes -- General land use authority.
57          (1) (a) The purposes of this chapter are to provide for the health, safety, and welfare,
58     and promote the prosperity, improve the morals, peace and good order, comfort, convenience,

59     and aesthetics of each county and its present and future inhabitants and businesses, to protect
60     the tax base, to secure economy in governmental expenditures, to foster the state's agricultural
61     and other industries, to protect both urban and nonurban development, to protect and ensure
62     access to sunlight for solar energy devices, to provide fundamental fairness in land use
63     regulation, and to protect property values.
64          (b) To accomplish the purposes of this chapter, counties may enact all ordinances,
65     resolutions, and rules and may enter into other forms of land use controls and development
66     agreements that they consider necessary or appropriate for the use and development of land
67     within the unincorporated area of the county or a designated mountainous planning district,
68     including ordinances, resolutions, rules, restrictive covenants, easements, and development
69     agreements governing uses, density, open spaces, structures, buildings, energy-efficiency, light
70     and air, air quality, transportation and public or alternative transportation, infrastructure, street
71     and building orientation and width requirements, public facilities, fundamental fairness in land
72     use regulation, considerations of surrounding land uses and the balance of the foregoing
73     purposes with a landowner's private property interests, height and location of vegetation, trees,
74     and landscaping, unless expressly prohibited by law.
75          (2) Each county shall comply with the mandatory provisions of this part before any
76     agreement or contract to provide goods, services, or municipal-type services to any storage
77     facility or transfer facility for high-level nuclear waste, or greater than class C radioactive
78     waste, may be executed or implemented.
79          (3) (a) Any ordinance, resolution, or rule enacted by a county pursuant to its authority
80     under this chapter shall comply with the state's exclusive jurisdiction to regulate oil and gas
81     activity, as described in Section 40-6-2.5.
82          (b) A county may enact an ordinance, resolution, or rule that regulates [surface] activity
83     incident to an oil and gas activity if the county demonstrates that the regulation:
84          (i) is necessary for the purposes of this chapter;
85          (ii) does not effectively or unduly limit, ban, or prohibit an oil and gas activity; and
86          (iii) does not interfere with the state's exclusive [juridisdciton] jurisdiction to regulate
87     oil and gas activity, as described in Section 40-6-2.5.
88          Section 3. Section 40-6-2.5 is amended to read:
89          40-6-2.5. Preemption.

90          (1) (a) As used in this section, "oil and gas activity" means activity associated with the
91     exploration, development, production, processing, and transportation of oil and gas as set forth
92     in [Title 40,] Chapter 6, Board and Division of Oil, Gas, and Mining, including:
93          (i) drilling;
94          (ii) hydraulic fracture stimulation;
95          (iii) completion, maintenance, reworking, recompletion, disposal, plugging, and
96     abandonment of wells;
97          (iv) construction activities;
98          (v) secondary and tertiary recovery techniques;
99          (vi) remediation activities; and
100          (vii) any other activity identified by the Board of Oil, Gas, and Mining.
101          (b) Oil and gas activity does not include [any] an activity or authority directly
102     authorized or granted to a political subdivision by the state.
103          (2) Subject to relevant federal law, regulation of oil and gas activity is of statewide
104     concern and the state regulation of oil and gas activity occupies the whole field of potential
105     regulation.
106          (3) The legislative body of a political subdivision may enact, amend, or enforce a local
107     ordinance, resolution, or rule consistent with its general land use authority that:
108          (a) regulates [only surface] activity that is incident to an oil and gas activity;
109          (b) does not effectively or unduly limit, ban, or prohibit an oil and gas activity; and
110          (c) is not otherwise preempted by state or federal law.