August 09, 2020
Print This PagePrint This Page

  *
Session:
Bill #:
Session:
Chamber: View Search Tips
Search Term:
Year: View Search Tips
Search Term:
       Florida Senate - 2010                                    SB 2622
       
       
       
       By Senator Haridopolos
       
       
       
       
       26-01823A-10                                          20102622__
    1                        A bill to be entitled                      
    2         An act relating to the regulation of state lands and
    3         oil and gas resources; amending s. 253.52, F.S.;
    4         providing for the Board of Trustees of the Internal
    5         Improvement Trust Fund to accept and award bids for
    6         oil and gas leases on submerged lands underlying the
    7         territorial waters of the state; providing
    8         requirements and procedures for submitting, reviewing,
    9         and awarding such bids; providing for a nonrefundable
   10         bid submittal fee; providing for easements over
   11         sovereign submerged lands for the construction,
   12         installation, and maintenance of structures relating
   13         to the production of oil, gas, or other petroleum
   14         products; providing a fee for such easements;
   15         requiring certain notice; providing bidder eligibility
   16         criteria relating to location; providing location
   17         restrictions on the refining and retail sale of oil
   18         and gas extracted pursuant to such leases; amending s.
   19         253.571, F.S.; providing requirements for proof of
   20         financial responsibility by a lessee prior to the
   21         commencement of drilling on submerged lands underlying
   22         the territorial waters of the state; providing a
   23         limitation; creating s. 253.585, F.S.; providing for
   24         the distribution of royalties, cash considerations,
   25         annual rentals, or payments in lieu of royalties
   26         collected for oil and gas leases on submerged lands
   27         within the territorial waters of the state; providing
   28         for distribution of other state income from offshore
   29         oil and natural gas activities; providing limitations
   30         on activities in military range and activity zones;
   31         requiring each proposal to be presented with a
   32         specified study; providing for rulemaking; amending s.
   33         253.61, F.S.; providing an exemption from land-leasing
   34         restrictions for leases on submerged lands within the
   35         territorial waters of the state; deleting a provision
   36         prohibiting leasing of specified lands; amending s.
   37         377.24, F.S.; providing an exemption from permit
   38         restrictions relating to drilling gas or oil wells for
   39         leases on submerged lands within the territorial
   40         waters of the state; deleting a provision prohibiting
   41         drilling in specified waters; amending s. 377.242,
   42         F.S.; deleting a provision prohibiting the
   43         construction of specified structures; providing
   44         exemptions from restrictions relating to the
   45         permitting or construction of structures intended for
   46         the drilling for or production of oil, gas, or other
   47         petroleum products; amending s. 377.2425, F.S.;
   48         revising applicability provisions relating to surety
   49         for geophysical exploration, drilling, and production;
   50         exempting applicants for drilling or operating permits
   51         for operations planned in coastal waters; providing an
   52         effective date.
   53  
   54  Be It Enacted by the Legislature of the State of Florida:
   55  
   56         Section 1. Section 253.52, Florida Statutes, is amended to
   57  read:
   58         253.52 Placing oil and gas leases on market by board.—
   59         (1) Whenever in the opinion of the Board of Trustees of the
   60  Internal Improvement Trust Fund there shall be a demand for the
   61  purchase of oil and gas leases on any area, tract, or parcel of
   62  the land so owned, controlled, or managed, by any state board,
   63  department, or agency, then the board shall place such oil and
   64  gas lease or leases on the market in such blocks, tracts, or
   65  parcels as it may designate. The lease or leases shall only be
   66  made after notice by publication thereof has been made not less
   67  than once a week for 4 consecutive weeks in a newspaper of
   68  general circulation published in Leon County, and in a similar
   69  newspaper for a similar period of time published in the vicinity
   70  of the lands offered to be leased, the last publication in both
   71  newspapers to be not less than 5 days in advance of the sale
   72  date. Such notice shall be to the effect that a lease or leases
   73  will be offered for sale at such date and time as may be named
   74  in said notice and shall describe the land upon which such
   75  lease, or leases, will be offered. This notice may be combined
   76  with the notice required pursuant to s. 253.115. Before any
   77  lease of any block, tract, or parcel of land, submerged, or
   78  unsubmerged, within a radius of 3 miles of the boundaries of any
   79  incorporated city, or town, or within such radius of any bathing
   80  beach, or beaches, outside thereof, such board, department, or
   81  agency, shall through one or more of its members hold a public
   82  hearing, after notice thereof by publication once in a newspaper
   83  of general circulation published at least 1 week prior to said
   84  hearing in the vicinity of the land, or lands, offered to be
   85  leased, of the offer to lease the same, calling upon all
   86  interested persons to attend said hearing where they would be
   87  given the opportunity to be heard, all of which shall be
   88  considered by the board prior to the execution of any lease or
   89  leases to said land, and the board may withdraw said land, or
   90  any part thereof, from the market, and refuse to execute such
   91  lease or leases if after such hearing, or otherwise, it
   92  considers such execution contrary to the public welfare. Before
   93  advertising any land for lease the form of the lease or leases
   94  to be offered for sale, not inconsistent with law, or the
   95  provisions of this section, shall be prescribed by the board and
   96  a copy, or copies, thereof, shall be available to the general
   97  public at the office of the Board of Trustees of the Internal
   98  Improvement Trust Fund and the advertisements of such sale shall
   99  so state.
  100         (2)(a)Notwithstanding subsection (1), the Board of
  101  Trustees of the Internal Improvement Trust Fund shall accept a
  102  nomination on or before September 1 of each year from a bidder
  103  or bidders for the purchase, in such blocks, tracts, or parcels
  104  as the bidder may designate, of oil and gas leases on any area,
  105  tract, or parcel of submerged land underlying the territorial
  106  waters of the state, as defined in the Submerged Lands Act, 43
  107  U.S.C. ss. 1301-1315, so owned, controlled, or managed by any
  108  state board, department, or agency.
  109         (b)Within 14 days after receipt of a bid, the board shall
  110  give notice of same by publication in the Florida Administrative
  111  Weekly and in a newspaper of general circulation published in
  112  the vicinity of the proposed lease or leases. The publication
  113  may not include any reference to proprietary trade secrets or
  114  confidential or economic business information provided by the
  115  original bidder.
  116         (c)The notice requirements under paragraph (b) shall apply
  117  in lieu of the requirements under subsection (1) and s. 253.115
  118  for a nomination for the purchase of an oil and gas lease
  119  pursuant to this subsection.
  120         (d)Other interested parties shall have 90 days after the
  121  date of publication of the notice to submit a competing bid for
  122  the same blocks, tracts, or parcels as were designated in the
  123  original bid and published in the notice. The bid period shall
  124  close on the 90th day.
  125         (e)The board shall have no more than 30 days from the date
  126  the bid period closes to review all bids and determine whether
  127  or not each bid contains all of the information required under
  128  subsection (4). Any bid determined to not contain all of the
  129  information required under subsection (4) shall be returned to
  130  the bidder and may not be further considered.
  131         (f)Following a determination that a bid or bids contain
  132  all of the information required under subsection (4), the board
  133  shall select the highest and best of such bids within 30 days,
  134  provided that if, in the reasonable judgment of the board, the
  135  bids submitted do not represent the reasonable fair value of
  136  such lease or leases, the execution of same is reasonably
  137  determined to be contrary to the public welfare, or, if the
  138  responsibility of the bidder offering the highest amount has not
  139  reasonably been established to the board’s satisfaction, the
  140  board may in its discretion reject the bids. All information
  141  included in all bids not selected by the board shall be returned
  142  to the bidder, including all checks or other financial
  143  assurances, except for the $1 million nonrefundable bid
  144  submittal fee.
  145         (g)The board shall have no more than 90 days to negotiate
  146  any outstanding matters, including, but not limited to, definite
  147  rental payments or payments that may be made in lieu of royalty,
  148  with the winning bidder and award the lease or leases.
  149  Affirmative action by the board to approve any such lease shall
  150  require the approval of the Governor and at least two other
  151  members of the board.
  152         (3)To the extent that any provision of the sealed bid
  153  requirements pursuant to s. 253.53 and the competitive bidding
  154  process pursuant to s. 253.54 may be in conflict with the
  155  nomination process provided under subsection (2), subsection (2)
  156  shall control the nomination for and the award of the purchase,
  157  in such blocks, tracts, or parcels as may be designated, of an
  158  oil and gas lease or leases on any area, tract, or parcel of
  159  submerged land underlying the territorial waters of the state.
  160         (4)All bids submitted to the board for lands identified
  161  under subsection (2) shall include the following:
  162         (a)A nonrefundable bid submittal fee of $1 million in
  163  addition to and separate from any cash consideration that may be
  164  provided as part of the bid;
  165         (b)Documentation stating that all equipment or structures
  166  above the surface of the water and related to the development
  167  and production of oil and gas within the territorial waters of
  168  the state shall be situated no closer than 3 miles from the
  169  coast as calculated from the line of mean high tide;
  170         (c)A statement and map identifying the blocks, tracts, or
  171  parcels, as designated for the oil and gas lease or leases, on
  172  submerged land underlying the territorial waters of the state;
  173         (d)A statement of a cash consideration; and
  174         (e)A statement of a royalty, never less than one-eighth in
  175  kind or in value; provided, however, that up-front payments in
  176  lieu of royalties may be proposed and, if proposed, may reduce
  177  the minimum one-eighth royalty.
  178         (5)All bids shall be accompanied by a separate cashier’s
  179  check or certified check for the amount of the cash
  180  consideration and application fee and shall be payable to the
  181  state board, department, or agency that holds title to or
  182  controls the land sought to be leased.
  183         (6)For a bidder who obtains an oil and gas lease from a
  184  bid pursuant to subsection (2) and fails to be issued a permit,
  185  after a good faith effort to attain such a permit, for
  186  geophysical operations, drilling, or exploring and extracting
  187  through well holes or by other means pursuant to ss. 377.2408
  188  and 377.242 within 24 months after receiving the lease, the
  189  board shall refund the entire cash consideration with interest
  190  paid pursuant to s. 55.03(1), using the per annum rate for the
  191  year in which the bidder obtained the lease. The bidder may
  192  extend this time period upon receiving a written request showing
  193  good cause by the Department of Environmental Protection.
  194         (7)If the board awards an oil and gas lease or leases
  195  issued pursuant to subsection (2), the lessee shall be entitled
  196  to obtain an easement or easements over sovereign submerged
  197  lands for the construction, installation, and maintenance of any
  198  pipeline or associated infrastructure that is an appurtenance to
  199  the transportation of oil and gas from the leased submerged
  200  lands to shore-based facilities. The fee for this easement shall
  201  be based on a cost-per-linear-foot basis and may not exceed $5
  202  per linear foot. Notwithstanding s. 253.115, within 14 days
  203  after receipt of an application for an easement or easements
  204  pursuant to this subsection, the board shall require the
  205  applicant for such easement or easements to give notice of the
  206  filing of such application or applications by publication, one
  207  time only, in a newspaper of general circulation published in
  208  the vicinity of the proposed lease or leases.
  209         (8)To be eligible to bid on any oil or gas leases offered
  210  within the territorial waters of the state, bidders must have
  211  corporate headquarters, including senior management personnel,
  212  physically located within the continental United States. Any oil
  213  or gas extracted pursuant to such leases must be refined and
  214  sold at the retail level within the continental United States.
  215         Section 2. Section 253.571, Florida Statutes, is amended to
  216  read:
  217         253.571 Proof of financial responsibility required of
  218  lessee prior to commencement of drilling.—
  219         (1) The Board of Trustees of the Internal Improvement Trust
  220  Fund may require a surety or property bond, an irrevocable
  221  letter of credit, or other proof of financial responsibility
  222  from each lessee of public land or mineral interest prior to the
  223  time such lessee mines, drills, or extracts in any manner,
  224  petroleum, petroleum products, gas, sulphur, or any other
  225  mineral from such land. The surety bond or irrevocable letter of
  226  credit shall be from a surety company or bank authorized to do
  227  business in the state. The surety bond, irrevocable letter of
  228  credit, or other proof of financial responsibility shall serve
  229  as security and is to be forfeited to the board to pay for any
  230  damages caused by mining or drilling operations performed by the
  231  lessee. In the case of operations planned in the waters of the
  232  state or under other particular circumstances which, by their
  233  nature warrant greater security in view of possible damages, the
  234  board shall give special consideration to the extent of such
  235  possible damages and shall set the amount of an adequate and
  236  sufficient surety bond, irrevocable letter of credit, or other
  237  proof of financial responsibility accordingly. For the purposes
  238  of this section, damages shall include, but not be limited to,
  239  air, water, and ground pollution, destruction of wildlife or
  240  marine productivity and any other damage which impairs the
  241  health and general welfare of the citizens of the state. The
  242  board shall require a lessee to provide proof of financial
  243  responsibility only once, irrespective of the number of
  244  different leases the lessee may have.
  245         (2)A surety or property bond, an irrevocable letter of
  246  credit, or other proof of financial responsibility from each
  247  lessee of public land or mineral interest in submerged lands
  248  underlying the territorial waters of the state, as defined in
  249  the Submerged Lands Act, 43 U.S.C. ss. 1301-1315, shall not
  250  exceed the lesser amount of either:
  251         (a)Five hundred million dollars; or
  252         (b)A calculated cost estimate for potential damages
  253  related to, but not limited to, air, water, and ground
  254  pollution, destruction of wildlife or marine productivity, and
  255  any other damage that impairs the health and general welfare of
  256  the citizens of the state, as based on reasonably foreseeable
  257  accidents or occurrences associated with the particular oil and
  258  gas development or production activity within the immediate area
  259  of the oil and gas lease.
  260         (3)A surety or property bond, an irrevocable letter of
  261  credit, or other proof of financial responsibility issued under
  262  subsection (2) shall be the only proof of financial
  263  responsibility a lessee must provide in lieu of any other proof
  264  of financial responsibility that may be required by any agency
  265  for any permit or authorization that must be obtained in
  266  connection with the development and production of oil and gas,
  267  including, but not limited to, oil and gas transportation
  268  infrastructure, such as pipelines, appurtenant to the leased
  269  submerged lands.
  270         Section 3. Section 253.585, Florida Statutes, is created to
  271  read:
  272         253.585Distribution of royalties, cash considerations,
  273  annual rentals, or payments in lieu of royalties collected for
  274  oil and gas leases on submerged lands within the territorial
  275  waters of the state.—
  276         (1)Royalties, cash considerations, annual rentals, or
  277  payments in lieu of royalties collected for oil and gas leases
  278  on submerged lands within the territorial waters of the state
  279  shall be appropriated for the following purposes:
  280         (a)To fund a bond initiative to provide up to $300 million
  281  per year for the Florida Forever land acquisition program,
  282  including up to an additional $15 million for reasonable
  283  management costs for the administration of such lands, to the
  284  extent the Board of Trustees of the Internal Improvement Trust
  285  Fund determines such management costs are necessary.
  286         (b)To provide up to $20 million per year for local
  287  governments to support beach restoration and nourishment
  288  projects.
  289         (c)To provide up to $20 million per year to be distributed
  290  to coastal local governments within the county or counties
  291  within which the lease or leases are issued.
  292         (2)After the distributions under subsection (1), the next
  293  $150 million from state income from offshore oil and natural gas
  294  activities shall be equally distributed as follows:
  295         (a)Up to $25 million annually shall be appropriated to the
  296  Florida Energy and Climate Commission to be used for
  297  enhancements to the Solar Energy System Incentives Program.
  298         (b)Up to $25 million annually shall be appropriated to the
  299  Board of Governors of the State University System to fund
  300  research and development of technologies, systems, and processes
  301  to solve the nation’s dependency on foreign fossil fuels and
  302  expand the use of alternative, biomass, and renewable
  303  alternative fuels through a peer-reviewed grant process.
  304         (c)Up to $25 million annually shall be appropriated to the
  305  Internal Improvement Trust Fund for enhanced funding of the
  306  management of public lands and state parks or the funding of
  307  beach nourishment, or both, as determined by the Board of
  308  Trustees of the Internal Improvement Trust Fund.
  309         (d)Up to $25 million annually shall be appropriated to
  310  fund environmental science programs in elementary and middle
  311  schools in preparation for 10th grade and higher science testing
  312  and for promoting science in high schools, to be spread
  313  equitably between each school district.
  314         (e)Up to $25 million annually shall be appropriated in
  315  equal amounts to establish hands-on oil and natural gas industry
  316  training academies in 25 counties using current state-of-the-art
  317  industry-provided materials, technological training, and
  318  instructors. Up to $15 million of the appropriation under this
  319  paragraph shall be used to fund high school oil and natural gas
  320  industry training academies. Up to $10 million of the
  321  appropriation under this paragraph shall be used to fund
  322  community college oil and natural gas industry training
  323  academies, spread as evenly as possible geographically across
  324  the state.
  325         (f)Up to $25 million annually shall be appropriated to
  326  veteran’s programs to provide care and rehabilitation services
  327  and educational opportunities for veterans and their dependents
  328  who are residents of this state.
  329         (g)Notwithstanding the limitations on the maximum amount
  330  of tax credits available each year contained in s.
  331  220.193(3)(c), and consistent with the other provisions in s.
  332  220.193, up to $10 million shall be appropriated annually to
  333  fund the Florida Renewable Energy Production Credit through the
  334  year 2020 to encourage the development and expansion of
  335  facilities that produce renewable energy in this state.
  336         (3)Where federally recognized military range and activity
  337  zones exist, each submitted proposal shall allow temporary
  338  geological or drilling and equipment activities, or both, above
  339  and below the surface of the water in order to establish pump
  340  sites only, after which, no above-surface permanent placement of
  341  equipment other than safety marker buoys is allowed.
  342         (4)Each submitted proposal shall be presented with a study
  343  that draws from existing state-of-the-art technology to
  344  demonstrate that exploration for oil and gas is feasible in the
  345  intended permit area.
  346         (5)The Division of State Lands in the Department of
  347  Environmental Protection, as staff to the Board of Trustees of
  348  the Internal Improvement Trust Fund, shall adopt rules as
  349  necessary to administer this section.
  350         Section 4. Paragraphs (b), (c), and (d) of subsection (1)
  351  of section 253.61, Florida Statutes, are amended to read:
  352         253.61 Lands not subject to lease.—
  353         (1) Regardless of anything to the contrary contained in
  354  this law in any previous section or part thereof, no board or
  355  agency mentioned therein or the state shall have the power or
  356  authority to sell, execute, or enter into any lease of the type
  357  covered by this law relating to any of the following lands,
  358  submerged or unsubmerged, except under the circumstances and
  359  conditions as hereinafter set out in this section, to wit:
  360         (b) No lease of the type covered by this law shall be
  361  granted, sold or executed covering any such lands in the tidal
  362  waters of the state, abutting on or immediately adjacent to the
  363  corporate limits of a municipality or within 3 miles of such
  364  corporate limits extending from the line of mean high tide into
  365  such waters, unless the governing authority of the municipality
  366  shall have first duly consented to the granting or sale of such
  367  lease by resolution. This paragraph does not apply to leases on
  368  submerged lands underlying the territorial waters of the state,
  369  as defined in the Submerged Lands Act, 43 U.S.C. ss. 1301-1315,
  370  where any structure or equipment above the surface of the water
  371  is more than 3 miles from such corporate limits.
  372         (c) No lease of the type covered by this law shall be
  373  granted, sold or executed covering such lands on any improved
  374  beach, located outside of an incorporated town or municipality,
  375  or covering such lands in the tidal waters of the state abutting
  376  on or immediately adjacent to any improved beach, or within 3
  377  miles of an improved beach extending from the line of mean high
  378  tide into such tidal waters, unless the county commissioners of
  379  the county in which such beach is located shall have first duly
  380  consented to the granting or sale of such lease by resolution.
  381  This paragraph does not apply to leases on submerged lands
  382  underlying the territorial waters of the state, as defined in
  383  the Submerged Lands Act, 43 U.S.C. ss. 1301-1315, where any
  384  structure or equipment above the surface of the water is more
  385  than 3 miles from such improved beach.
  386         (d)Without exception, after July 1, 1989, no lease of the
  387  type covered by this law shall be granted, sold, or executed
  388  south of 26° north latitude off Florida’s west coast and south
  389  of 27° north latitude off Florida’s east coast, within the
  390  boundaries of Florida’s territorial seas as defined in 43 U.S.C.
  391  1301. After July 31, 1990, no oil or natural gas lease shall be
  392  granted, sold, or executed covering lands located north of
  393  26°00′00″ north latitude off Florida’s west coast to the western
  394  boundary of the state bordering Alabama as set forth in s. 1,
  395  Art. II of the State Constitution, or located north of 27°00′00″
  396  north latitude off Florida’s east coast to the northern boundary
  397  of the state bordering Georgia as set forth in s. 1, Art. II of
  398  the State Constitution, within the boundaries of Florida’s
  399  territorial seas as defined in 43 U.S.C. 1301.
  400         Section 5. Subsections (6), (7), and (9) of section 377.24,
  401  Florida Statutes, are amended to read:
  402         377.24 Notice of intention to drill well; permits;
  403  abandoned wells and dry holes.—
  404         (6) No permit to drill a gas or oil well shall be granted
  405  at a location in the tidal waters of the state, abutting or
  406  immediately adjacent to the corporate limits of a municipality
  407  or within 3 miles of such corporate limits extending from the
  408  line of mean high tide into such waters, unless the governing
  409  authority of the municipality shall have first duly approved the
  410  application for such permit by resolution. This subsection does
  411  not apply to leases on submerged lands underlying the
  412  territorial waters of the state, as defined in the Submerged
  413  Lands Act, 43 U.S.C. ss. 1301-1315, where any structure or
  414  equipment above the surface of the water is more than 3 miles
  415  from such corporate limits.
  416         (7) No permit to drill a gas or oil well shall be granted
  417  on any improved beach, located outside of an incorporated town
  418  or municipality, or at a location in the tidal waters of the
  419  state abutting or immediately adjacent to an improved beach, or
  420  within 3 miles of an improved beach extending from the line of
  421  mean high tide into such tidal waters, unless the county
  422  commissioners of the county in which such beach is located shall
  423  have first duly approved the application for such permit by
  424  resolution. This subsection does not apply to leases on
  425  submerged lands underlying the territorial waters of the state,
  426  as defined in the Submerged Lands Act, 43 U.S.C. ss. 1301-1315,
  427  where any structure or equipment above the surface of the water
  428  is more than 3 miles from such improved beach.
  429         (9)Without exception, after July 1, 1989, no permit to
  430  drill a well in search of oil or gas shall be granted south of
  431  26°00′00″ north latitude off Florida’s west coast and south of
  432  27°00′00″ north latitude off Florida’s east coast, within the
  433  boundaries of Florida’s territorial seas as defined in 43 U.S.C.
  434  1301. After July 31, 1990, no permit to drill a well in search
  435  of oil or gas shall be granted north of 26°00′00″ north latitude
  436  off Florida’s west coast to the western boundary of the state
  437  bordering Alabama as set forth in s. 1, Art. II of the State
  438  Constitution, or located north of 27°00′00″ north latitude off
  439  Florida’s east coast to the northern boundary of the state
  440  bordering Georgia as set forth in s. 1, Art. II of the State
  441  Constitution, within the boundaries of Florida’s territorial
  442  seas as defined in 43 U.S.C. 1301.
  443         Section 6. Section 377.242, Florida Statutes, is amended to
  444  read:
  445         377.242 Permits for drilling or exploring and extracting
  446  through well holes or by other means.—The department is vested
  447  with the power and authority:
  448         (1)(a) To issue permits for the drilling for, exploring
  449  for, or production of oil, gas, or other petroleum products
  450  which are to be extracted from below the surface of the land,
  451  including submerged land, only through the well hole drilled for
  452  oil, gas, and other petroleum products.
  453         1. No structure intended for the drilling for, or
  454  production of, oil, gas, or other petroleum products may be
  455  permitted or constructed on any submerged land within any bay or
  456  estuary.
  457         2. No structure intended for the drilling for, or
  458  production of, oil, gas, or other petroleum products may be
  459  permitted or constructed within 1 mile seaward of the coastline
  460  of the state.
  461         3. No structure intended for the drilling for, or
  462  production of, oil, gas, or other petroleum products may be
  463  permitted or constructed within 1 mile of the seaward boundary
  464  of any state, local, or federal park or aquatic or wildlife
  465  preserve or on the surface of a freshwater lake, river, or
  466  stream.
  467         4. No structure intended for the drilling for, or
  468  production of, oil, gas, or other petroleum products may be
  469  permitted or constructed within 1 mile inland from the shoreline
  470  of the Gulf of Mexico, the Atlantic Ocean, or any bay or estuary
  471  or within 1 mile of any freshwater lake, river, or stream unless
  472  the department is satisfied that the natural resources of such
  473  bodies of water and shore areas of the state will be adequately
  474  protected in the event of accident or blowout.
  475         5.Without exception, after July 1, 1989, no structure
  476  intended for the drilling for, or production of, oil, gas, or
  477  other petroleum products may be permitted or constructed south
  478  of 26°00′00″ north latitude off Florida’s west coast and south
  479  of 27°00′00″ north latitude off Florida’s east coast, within the
  480  boundaries of Florida’s territorial seas as defined in 43 U.S.C.
  481  s. 1301. After July 31, 1990, no structure intended for the
  482  drilling for, or production of, oil, gas, or other petroleum
  483  products may be permitted or constructed north of 26°00′00″
  484  north latitude off Florida’s west coast to the western boundary
  485  of the state bordering Alabama as set forth in s. 1, Art. II of
  486  the State Constitution, or located north of 27°00′00″ north
  487  latitude off Florida’s east coast to the northern boundary of
  488  the state bordering Georgia as set forth in s. 1, Art. II of the
  489  State Constitution, within the boundaries of Florida’s
  490  territorial seas as defined in 43 U.S.C. s. 1301.
  491         (b) Subparagraphs (a)1. and 4. do not apply to permitting
  492  or construction of structures intended for the drilling for, or
  493  production of, oil, gas, or other petroleum products pursuant to
  494  an oil, gas, or mineral lease of such lands by the state under
  495  which lease any valid drilling permits are in effect on the
  496  effective date of this act. In the event that such permits
  497  contain conditions or stipulations, such conditions and
  498  stipulations shall govern and supersede subparagraphs (a)1. and
  499  4.
  500         (c) The prohibitions of subparagraphs (a)1.-4. in this
  501  subsection do not include “infield gathering lines,or other
  502  pipelines for the purpose of transporting offshore production on
  503  shore, provided no other placement is reasonably available and
  504  all other required permits have been obtained.
  505         (d)Subparagraphs (a)1.-3. do not apply to the permitting
  506  or construction of offshore structures intended for the
  507  exploration or production of oil, gas, or other petroleum
  508  products where any structure or equipment above the surface of
  509  the water is more than 3 miles seaward from the line of mean
  510  high tide.
  511         (2) To issue permits to explore for and extract minerals
  512  which are subject to extraction from the land by means other
  513  than through a well hole.
  514         (3) To issue permits to construct wells for the injection
  515  and recovery of any natural gas for temporary storage in
  516  subsurface reservoirs.
  517  
  518  Each permit shall contain an agreement by the permitholder that
  519  the permitholder will not prevent inspection by division
  520  personnel at any time. The provisions of this section
  521  prohibiting permits for drilling or exploring for oil in coastal
  522  waters do not apply to any leases entered into before June 7,
  523  1991.
  524         Section 7. Subsection (1) of section 377.2425, Florida
  525  Statutes, is amended to read:
  526         377.2425 Manner of providing security for geophysical
  527  exploration, drilling, and production.—
  528         (1) Prior to granting a permit to conduct geophysical
  529  operations; drilling of exploratory, injection, or production
  530  wells; producing oil and gas from a wellhead; or transporting
  531  oil and gas through a field-gathering system, the department
  532  shall require the applicant or operator to provide surety that
  533  these operations will be conducted in a safe and environmentally
  534  compatible manner.
  535         (a) The applicant for a drilling, production, or injection
  536  well permit or a geophysical permit may provide the following
  537  types of surety to the department for this purpose:
  538         1. A deposit of cash or other securities made payable to
  539  the Minerals Trust Fund. Such cash or securities so deposited
  540  shall be held at interest by the Chief Financial Officer to
  541  satisfy safety and environmental performance provisions of this
  542  chapter. The interest shall be credited to the Minerals Trust
  543  Fund. Such cash or other securities shall be released by the
  544  Chief Financial Officer upon request of the applicant and
  545  certification by the department that all safety and
  546  environmental performance provisions established by the
  547  department for permitted activities have been fulfilled.
  548         2. A bond of a surety company authorized to do business in
  549  the state in an amount as provided by rule.
  550         3. A surety in the form of an irrevocable letter of credit
  551  in an amount as provided by rule guaranteed by an acceptable
  552  financial institution.
  553         (b) An applicant for a drilling, production, or injection
  554  well permit, or a permittee who intends to continue
  555  participating in long-term production activities of such wells,
  556  has the option to provide surety to the department by paying an
  557  annual fee to the Minerals Trust Fund. For an applicant or
  558  permittee choosing this option the following shall apply:
  559         1. For the first year, or part of a year, of a drilling,
  560  production, or injection well permit, or change of operator, the
  561  fee is $4,000 per permitted well.
  562         2. For each subsequent year, or part of a year, the fee is
  563  $1,500 per permitted well.
  564         3. The maximum fee that an applicant or permittee may be
  565  required to pay into the trust fund is $30,000 per calendar
  566  year, regardless of the number of permits applied for or in
  567  effect.
  568         4. The fees set forth in subparagraphs 1., 2., and 3. shall
  569  be reviewed by the department on a biennial basis and adjusted
  570  for the cost of inflation. The department shall establish by
  571  rule a suitable index for implementing such fee revisions.
  572         (c) This subsection does not apply to an applicant for a
  573  drilling or operating permit for operations planned in coastal
  574  waters that by their nature warrant greater surety shall provide
  575  surety only in accordance with paragraph (a), or similar proof
  576  of financial responsibility other than as provided in paragraph
  577  (b). For all such applications, including applications pending
  578  at the effective date of this act and notwithstanding the
  579  provisions of paragraph (b), the Governor and Cabinet in their
  580  capacity as the Administration Commission, at the recommendation
  581  of the Department of Environmental Protection, shall set a
  582  reasonable amount of surety required under this subsection. The
  583  surety amount shall be based on the projected cleanup costs and
  584  natural resources damages resulting from a maximum oil spill and
  585  adverse hydrographic and atmospheric conditions that would tend
  586  to transport the oil into environmentally sensitive areas, as
  587  determined by the Department of Environmental Protection.
  588         Section 8. This act shall take effect July 1, 2010.

Site Map
Session:   Bills ·   Calendars ·   Bound Journals ·   Citator ·   Search ·   Appropriations ·   Redistricting ·   Bill Information Reports
Committee Publications
Historical Information
Statutes:   Introduction ·   View Statutes ·   Search Statutes
Flsenate.gov
Disclaimer: The information on this system is unverified. The journals or printed bills of the respective chambers should be consulted for official purposes.    Copyright © 2000-2020 State of Florida.     Privacy Statement     Contact Us     Get Acrobat Reader