PARRIS N. GLENDENING, Governor

Ch. 10

opportunity for a public hearing shall be provided in accordance with § 14-105(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 [§ 14-105(a)(4)] § 14-104 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.

DRAFTER'S NOTE:

Error: Incorrect cross-references in § 14-106(b) and (c) of the Environment
Article, recodified from former § 6-104.3(b) and (c) of the Natural Resources
Article.

Occurred: Ch. 739, Acts of 1994.
14-304.

The following regulations are additional to the [rules and] regulations prescribed
by the Department and do not limit the [rule-making] REGULATORY authority of the
Department granted under § 14-303 OF THIS SUBTITLE:

[(a)](1) Every applicant for a storage permit shall, at the time of application, file
with the Department a surety bond in the amount of $1,000, payable to the Comptroller
of the State on a form approved by the Department and executed by a responsible surety
company authorized to do business in the State. The bond is intended to assure that
necessary safety measures are maintained, and that any well or other opening used in
connection with the storage project is properly sealed after abandonment of the project if
this action is considered necessary by the Department to protect one or more of the
natural resources of the State. Any transferee shall file a similar bond.

[(b)](2) A permeable sand or stratum containing gas, or into which gas or a
liquefied petroleum derivative has been forced under pressure, may not be drilled or left
open in a manner permitting an avoidable escape of gas to occur. A well connected with
a storage reservoir containing either natural gas or a petroleum derivative stored under
pressure, may not be situated within 50 yards of any existing building used as a residence
or office.

[(c)] (3) All [fresh-water] FRESHWATER sands penetrated in drilling to a
storage reservoir shall be fully protected by cement grout placed to provide an effective
seal to the nearest thick clay bed above the gas storage stratum having a thickness of at
least 25 feet. In order to provide an effective seal in the nearest thick clay bed above the
gas storage stratum, the clay bed shall have a thickness and other geologic properties
adequate, in the opinion of the Department, to constitute sufficient protection to the
potable [fresh-water] FRESHWATER supplies existing in any aquifers.

DRAFTER'S NOTE:

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