WILLIAM DONALD SCHAEFER, Governor                   Ch. 778

certain consultation with certain agencies of the State, to
direct the Department of Natural Resources to prepare
certain statements of environmental, fiscal, and economic
impacts of certain proposed leases for production of oil or
gas from beneath lands or waters of the State; providing
for strict liability for damages that occur in the
exploration, drilling, production operations, or plugging of
oil or gas wells in certain State waters; providing for a
certain interpretation of this Act; and generally relating

to exploration, drilling, production operations, and

plugging oil and gas wells in the Chesapeake Bay, its
tributaries, and other leasing for oil or gas production or
reserve of areas beneath lands and waters of the State.

BY adding to

Article - Natural Resources

Section 6-105.1 and 6-105.2 6-601, 6-602, and 6-603 to be
under the new subtitle "Subtitle 6. Leasing of State
Oil and Gas Resources"
Annotated Code of Maryland
(1983 Replacement Volume and 1987 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Natural Resources

SUBTITLE 6. LEASING OF STATE

OIL AND GAS RESOURCES

6-105.1 6-601.

(A) THIS SECTION APPLIES ONLY TO LEASES ISSUED BY THE BOARD
OF PUBLIC WORKS FOR:

(1) THE CHESAPEAKE BAY;

(2) ANY TRIBUTARY OF THE CHESAPEAKE BAY; AND

(3) ANY OTHER WATERS OF THE STATE.

(B) ON THE FILING OF AN APPLICATION AND BEFORE DECIDING
WHETHER OR NOT TO GRANT A LEASE (1) THE BOARD OF PUBLIC WORKS
SHALL ADOPT REGULATIONS ESTABLISHING PROCEDURES AND STANDARDS FOR
AWARDING ANY OIL OR NATURAL GAS LEASE FOR PRODUCTION OR RESERVE
UNDER LANDS OR WATERS OF THE STATE.

(2) AN AREA LEASED FOR RESERVE MAY NOT BE PUT INTO
PRODUCTION UNTIL THE LESSEE OBTAINS A LEASE FOR PRODUCTION
PURSUANT TO § 6-602 OF THIS SUBTITLE.

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