Ch. 367                                         1993 LAWS OF MARYLAND

6-104.3.

(A)     THE DEPARTMENT MAY BIFURCATE AN APPLICATION TO DRILL FOR OIL
OR GAS WHEN THE DRILLING WILL BE CONDUCTED IN GEOLOGIC FORMATIONS NOT
YET PROVEN TO BE PRODUCTIVE.

(B)  ' IF THE DEPARTMENT BIFURCATES THE PERMIT PROCESS IT MAY ISSUE A
PERMIT FOR EXPLORATION ONLY. PRODUCTION MAY NOT COMMENCE UNTIL THE
ENVIRONMENTAL ASSESSMENT REQUIRED BY § 6-104.1 OF THIS SUBTITLE HAS BEEN
COMPLETED AND APPROVED BY THE DEPARTMENT AND THE DEPARTMENT HAS
ISSUED A PERMIT FOR PRODUCTION. AN ADDITIONAL OPPORTUNITY FOR A PUBLIC
HEARING SHALL BE PROVIDED IN ACCORDANCE WITH § 6-104.1(B) OF THIS SUBTITLE
PRIOR TO THE ISSUANCE OF ANY PERMIT FOR PRODUCTION.

(C)      IF THE DEPARTMENT BIFURCATES THE PERMIT PROCESS, THE
ENVIRONMENTAL ASSESSMENT REQUIRED UNDER § 6-104.1(A)(4) OF THIS SUBTITLE
MAY ALSO BE BIFURCATED TO ADDRESS SEPARATELY ENVIRONMENTAL ISSUES
ASSOCIATED WITH EXPLORATION AND PRODUCTION. HOWEVER, PRIOR TO
GRANTING A PERMIT TO CONDUCT EXPLORATORY DRILLING IN THE COASTAL
PLAIN, THE DEPARTMENT SHALL REQUIRE THE APPLICANT TO SUBMIT AN
ENVIRONMENTAL ASSESSMENT THAT CONTAINS GENERAL INFORMATION
REGARDING THE ENVIRONMENTAL IMPACTS OF POSSIBLE PRODUCTION,
INCLUDING THE POTENTIAL EFFECTS OF TRANSPORTING AND STORING OIL OR GAS
AND THE POTENTIAL ADVERSE ENVIRONMENTAL IMPACTS THAT MAY ARISE DUE
TO THE ENVIRONMENTAL CHARACTERISTICS OF THE DRILLING SITE.

6-104.3. 6-104.4.

Notwithstanding any other law, a person may not drill for oil or gas in the waters of
the Chesapeake Bay [or], any of its tributaries, OR IN THE CHESAPEAKE BAY CRITICAL
AREA.

6 104.4. .6-104.5.

(A) THE DEPARTMENT SHALL DENY THE PERMIT IF THE DEPARTMENT
DETERMINES THAT:

(1)      THE PROPOSED OPERATION SHALL VIOLATE A REQUIREMENT OF
THIS SUBTITLE OR A REGULATION ADOPTED UNDER THIS SUBTITLE;

(2)      THE PROPOSED DRILLING OR WELL OPERATION POSES A
SUBSTANTIAL THREAT TO PUBLIC SAFETY OR A RISK OF SIGNIFICANT ADVERSE
ENVIRONMENTAL DAMAGE IMPACT TO, BUT NOT LIMITED TO, THE FOLLOWING:

(I)       THE CHESAPEAKE BAY;

(II)     THE CHESAPEAKE BAY CRITICAL AREA;

(III)    TIDAL OR NONTIDAL WETLANDS;

(IV)    ENDANGERED OR THREATENED SPECIES, SPECIES IN NEED OF
CONSERVATION, OR THE HABITAT OF ANY OF THEM;

- 1992 -