North Carolina § 113-420 - Notice and entry to property.

§ 113-420. Notice and entry to property.

Notice Required for Activities That Do Not Disturb Surface of Property to Surface Owner. - If an oil or gas developer or operator is not the surface owner of the property on which oil and gas operations are to occur, before entering the property for oil or gas operations that do not disturb the surface, including inspections, staking, surveys, measurements, and general evaluation of proposed routes and sites for oil or gas drilling operations, the developer or operator shall give written notice to the surface owner at least 14 days before the desired date of entry to the property. Notice shall be given by certified mail, return receipt requested. The requirements of this subsection may not be waived by agreement of the parties. The notice, at a minimum, shall include all of the following: The identity of person(s) requesting entry upon the property. The purpose for entry on the property. The dates, times, and location on which entry to the property will occur, including the estimated number of entries. Notice Required for Land-Disturbing Activities to Surface Owner. - If an oil or gas developer or operator is not the surface owner of the property on which oil or gas operations are to occur, before entering the property for oil or gas operations that disturb the surface, the developer or operator shall give written notice to the surface owner at least 30 days before the desired date of entry to the property. Notice shall be given by certified mail, return receipt requested. The notice, at a minimum, shall include all of the following: A description of the exploration or development plan, including, but not limited to (i) the proposed locations of any roads, drill pads, pipeline routes, and other alterations to the surface estate and (ii) the proposed date on or after which the proposed alterations will begin. An offer of the oil and gas developer or operator to consult with the surface owner to review and discuss the location of the proposed alterations. The name, address, telephone number, and title of a contact person employed by or representing the oil or gas developer or operator who the surface owner may contact following the receipt of notice concerning the location of the proposed alterations. Persons Entering Land; Identification Required; Presumption of Proper Protection While on Surface Owners' Property. - Persons who enter land on behalf of an oil or gas developer or operator for oil and gas operations shall carry on their person identification sufficient to identify themselves and their employer or principal and shall present the identification to the surface owner upon request. Entry upon land by such a person creates a rebuttable presumption that the surface owner properly protected the person against personal injury or property damage while the person was on the land. Notice of Initiation of Exploration, Development, and Production Activities to Owner of Subsurface Oil or Gas Resources. - If an oil or gas developer or operator is the lessee of subsurface oil or gas resources, before initiating oil or gas exploration or development operations with respect to those resources, the developer or operator shall give written notice to the lessor of those resources at least 30 days before the oil and gas operations are to be initiated. The notice, at a minimum, shall include all of the following: A description of the exploration or development plan, including, the proposed date on which the exploration or development will begin. The name, address, telephone number, and title of a contact person employed by or representing the oil or gas developer or operator who the lessor may contact following the receipt of notice. Venue. - If the oil or gas developer or operator fails to give notice or otherwise comply with the provisions of this section, the surface owner may seek appropriate relief in the superior court for the county in which the oil or gas well is located and may receive actual damages. History (2011-276, s. 3(b); 2012-143, s. 4(a); 2014-4, s. 12.) Editor's Note. - Session Laws 2012-143, in its preamble, provides: "Whereas, in S.L. 2011-276, the General Assembly directed the Department of Environment and Natural Resources, in conjunction with the Department of Commerce, the Department of Justice, and the Rural Advancement Foundation (RAFI-USA), to study the issue of oil and gas exploration in the State and the use of horizontal drilling and hydraulic fracturing for that purpose, including the study of all of the following: "(1) Oil and gas resources present in the Triassic Basins and in any other areas of the State. "(2) Methods of exploration and extraction of oil and gas, including directional and horizontal drilling and hydraulic fracturing. "(3) Potential environmental, economic, and social impacts arising from such activities, as well as impacts on infrastructure. "(4) Appropriate regulatory requirements for management of oil and gas exploration activities, with particular attention to regulation of horizontal drilling and hydraulic fracturing for that purpose; and "Whereas, pursuant to S.L. 2011-276, the Department of Environment and Natural Resources, in conjunction with the Department of Commerce, the Department of Justice, and the Rural Advancement Foundation (RAFI-USA), issued a draft report in March of 2012; and "Whereas, pursuant to S.L. 2011-276, the Department of Environment and Natural Resources received public comment regarding the draft report, including public comment received at public meetings held on March 20, March 27, and April 2, 2012; and "Whereas, pursuant to S.L. 2011-276, the Department of Environment and Natural Resources (DENR), in conjunction with the Department of Commerce, the Department of Justice, and the Rural Advancement Foundation (RAFI-USA), issued a final report on April 30, 2012; and "Whereas, the final report set forth a number of recommendations, including recommendations concerning all of the following: "(1) Development of a modern oil and gas regulatory program, taking into consideration the processes involved in hydraulic fracturing and horizontal drilling technologies, and long-term prevention of physical or economic waste in developing oil and gas resources. "(2) Collection of baseline data for areas near proposed drill sites concerning air quality and emissions, as well as groundwater and surface water resources and quality. "(3) Requirements that oil and gas operators prepare and have approved water management plans that limit water withdrawals during times of low-flow conditions and droughts. "(4) Enhancements to existing oil and gas well construction standards to address the additional pressures of horizontal drilling and hydraulic fracturing. "(5) Development of setback requirements and identification of areas where oil and gas exploration and development activities should be prohibited. "(6) Development of a State stormwater regulatory program for oil and gas drilling sites. "(7) Development of specific standards for management of oil and gas wastes. "(8) Requirements for disclosure of hydraulic fracturing chemicals and constituents to regulatory agencies and the public. "(9) Prohibitions on use of certain chemicals or constituents in hydraulic fracturing fluids. "(10) Improvements to data management capabilities. "(11) Development of a coordinated permitting program for oil and gas exploration and development activities within the Department of Environment and Natural Resources where it will benefit from the expertise of State geological staff and the ability to coordinate air, land, and water permitting. "(12) Development of protocols to ensure that State agencies, local first responders, and industry are prepared to respond to a well blowout, chemical spill, or other emergency. "(13) Adequate funding for any continued work on the development of a State regulatory program for the natural gas industry. "(14) Appropriate distribution of revenues from any taxes or fees that may be imposed on oil and gas exploration and development activities to support a modern regulatory program for the management of all aspects of oil and gas exploration and development activities using the processes of horizontal drilling and hydraulic fracturing in the State, and to support local governments impacted by the activities, including, but not limited to, sufficient funding for improvements to and repair of roads subject to damage by truck traffic and heavy equipment from these activities. "(15) Closure of gaps in regulatory authority over the siting, construction, and operation of gathering pipelines. "(16) Clarifications needed to address local government regulatory authority over oil and gas exploration and development activities, and use of horizontal drilling and hydraulic fracturing for that purpose. "(17) Additional research required on impacts to local governments and local infrastructure, as well as potential economic impacts from oil and gas exploration and development activities. "(18) Development of provisions to address liability of the oil and gas industry for environmental contamination caused by exploration and development activities, particularly with regard to groundwater contamination. "(19) Establishment of a process that affords additional public participation in connection with development of a modern oil and gas regulatory program; and "Whereas, the final report also states '[a]fter reviewing other studies and experiences in oil and gas-producing states, DENR has concluded that information available to date suggests that production of natural gas by means of hydraulic fracturing can be done safely as long as the right protections are in place'; and "Whereas, the General Assembly concurs in the conclusion of the final report that hydraulic fracturing can be done safely as long as the right protective measures are in place before any permits for horizontal drilling and hydraulic fracturing are issued; and "Whereas, it is the intent of the General Assembly to authorize oil and gas exploration and development activities using horizontal drilling and hydraulic fracturing treatments, but to prohibit the issuance of permits for these activities until such time as the General Assembly has determined that a modern regulatory program for the management of oil and gas exploration and development in the State and the use of horizontal drilling and hydraulic fracturing for that purpose has been fully established and takes legislative action to allow the issuance of permits; and "Whereas, it is the intent of the General Assembly to establish a modern regulatory program based on the recommendations of the final report and the following principles: "(1) Protection of public health and safety. "(2) Protection of public and private property. "(3) Protection and conservation of the State's air, water, and other natural resources. "(4) Promotion of economic development and expanded employment opportunities. "(5) Productive and efficient development of the State's oil and gas resources; Now, therefore," Session Laws 2012-143, s. 7, made the amendments to this section by Session Laws 2012-143, s. 4(a), applicable to wells drilled and leases or contracts entered into on or after July 2, 2012. Effect of Amendments. - Session Laws 2012-143, s. 4(a), effective July 2, 2012, added subsection (b1); added the subsection headings for subsections (a), (b) and (c); substituted "oil or gas" for "oil and gas" throughout the section; substituted "at least 14 days" for "at least seven days" in the first sentence in subsection (a); substituted "at least 30 days" for "at least 14 days" in the first sentence in subsection (b); and substituted "or otherwise comply with the provisions of" for "as provided in" in subsection (c). For applicability, see editor's note. Session Laws 2014-4, s. 12, effective June 4, 2014, added "to Surface Owner" at the end of the subsection headings for subsections (a) and (b); and added subsection (b2).