Agenda - 7-13-15 Reg. Meeting - Laserfiche WebLink

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V 'l b The specifics of State Law 2014-4, the ENERGY MODERNIZATIONACT, was an act of the General Assembly to address seven specific issues at it relates to oil and gas. 1) Extend the deadline for development of a modern regulatory program for the management of oil and gas exploration, development, and production in the state and the use of horizontal drilling and hydraulic fracturing treatments for that purpose; 2) Enact or modify certain exemptions from requirements of the administrative procedure act applicable to rules for the management of oil and gas exploration, development, and production in the state and the use of horizontal drilling and hydraulic fracturing treatments for that purpose; 3) Create the North Carolina Oil and Gas Commission and reconstitute the North Carolina Mining Commission; 4) Amend miscellaneous statutes governing oil and gas exploration, development, and production activities; 5) Establish a severance tax applicable to oil and gas exploration, development, and production activities; 6) Amend miscellaneous statutes unrelated to oil and gas exploration, development, and production activities; and direct studies on various issues, as recommended by the Joint Legislative Commission on Energy Policy. Found within SL 2014-4 is language that attempts to clarify the ability of local government to regulate oil and gas extraction in terms of land use. More specifically, SL 2014-4, Section 13 amends NCGS 113 to add a new subsection 415A, Local ordinances prohibiting oil and gas exploration, development, and production activities invalid; petition to preempt local ordinance. Attached is a copy of this Section 415A for your review. In general, the purpose of this amendment is to prohibit or severely limit the ability of local governments to regulate oil and gas activities. However, please pay particular attention to subsection (f) on page 16 as it reads, "A local zoning or land -use ordinance is presumed to be valid and enforceable to the extent the zoning or land -use ordinance imposes requirements, restrictions, or conditions that are generally applicable to development, including, but not limited to, setback, buffer, and stormwater requirements, unless the Mining and Energy Commission makes a finding of fact to the contrary." This is the basis under which the staff is presenting the proposed changes to the UDO. As such, staff drafted a set of revisions and presented these changes for the Joint Planning Commissioner (JPC) in January of this year. The JPC supported the proposed changes, however, they directed staff to share the proposed rule changes with the Institute of Government. The JPC wanted to get an opinion from the Institute regarding the legal standing of the proposed amendment in comparison to the State rules. The good news is that the Institute of Government staff provided positive feedback regarding the draft language. The following are excerpts as taken from an email from Dr. Richard Whisnant. Note: The portions in bold illustrate significant comments reflecting the consistency of draft language with the State rules. 2