The spring round of state legislative sessions saw renewed emphasis on U.S. environmental protection.
Only about a dozen legislatures are still sitting.
States also increased their cooperation on environmental issues.
For example, Rhode Island, Connecticut, New York, and Massachusetts officials met last spring to cooperate on regional oil spill protection and liability issues.
And Delaware, Maryland, New Jersey, North Carolina, Pennsylvania, Virginia, and the District of Columbia formed an association to discuss mid-Atlantic air quality issues, including gasoline volatility standards. It is similar to a group made up of eight northeastern states coordinating efforts on air pollution.
ENVIRONMENTAL ISSUES
Many coastal states advanced legislation last spring to guard their shores against tanker and barge oil spills.
The Connecticut legislature approved a bill requiring vessels to use booms when offloading petroleum products. The governor was expected to sign the bill, which was effective Oct. 1
A Delaware legislative committee drafted a report calling for the state to explore the possibility of setting pollution prevention standards for lightering operations.
The Alaska legislature passed bills aimed at preventing oil spills and requiring contingency plans and financial responsibility filings. Another bill set criminal penalties for negligent oil discharges.
New Jersey's house passed a seven bill package that would allow the state to fine companies as much as $10 million for oil spills of 100,000 gal or more and hold companies strictly liable for cleanup and damages.
The Rhode Island house passed a bill requiring tankers entering state waters with petroleum cargoes to post a bond or show financial responsibility amounting to at least $1,200/gross ton.
In Louisiana, a bill was pending that would create a 23 member oil spill commission. Another bill would hold operators of ships or oil facilities strictly liable for removal costs and damages. It would create a $10 million oil spill fund financed by a 5/bbl fee on movement of oil in the state.
The New York assembly and senate passed differing bills establishing minimum operating requirements for tankers in state waters.
Maryland passed a law increasing the state's authority to deal with oil discharges or emergencies affecting local waters.
The California assembly passed a bill creating a $64 million fund to clean up oil spills. It includes an initial 18/bbl fee on oil delivered by barge, tanker, or pipeline to state terminals.
Several other states, including Alabama and South Carolina, raised the issue of what states-should do to ensure their oil spill prevention measures are adequate.
OTHER ENVIRONMENTAL ISSUES
Florida passed a comprehensive spill response package that tracked recommendations of a 1989 task force. If drilling is allowed off Florida's coast, a fee will be placed on production to build a $100 million Coastal Protection Trust Fund.
The Florida legislature also extended a ban on oil and natural gas leasing in state waters.
Several states, including Louisiana, Tennessee, and Kentucky, considered bills requiring conversion of state owned vehicles to alternative fuels.
A Louisiana bill would prevent the sitting of a poisonous industrial facility, including oil refineries, within 5 miles of communities and certain facilities.
Colorado enacted a bill raising the conservation mill levy to fund the cleanup of abandoned wells.
The Louisiana senate passed a bill earmarking $26 million in oil and gas revenues to be spent on projects in the coastal area. It retreated from requiring "no net loss" of wetlands but called for "replacement by compensation."
GASOLINE MARKETING, TAXES
Protection of service station operators, particularly independents, has been a perennial issue in many state legislatures.
Florida's legislature passed a bill amending the state's below cost sales law, aimed at protecting service station dealers from price cutting.
South Carolina passed a budget bill without a provision that would have imposed a 1% tax on the retail price of petroleum products and would have prohibited dealers from passing the tax through to customers.
A New York committee voted to hold in committee a bill requiring majors to sell their retail marketing outlets.
Virginia passed a bill governing petroleum retailing operations after agreeing to drop provisions allowing branded retailers to seek "open supply" of gasoline.
Nebraska's governor signed a bill requiring that reformulated gasoline sold in 1992 and later have 3.1 % oxygen content and a maximum 20% aromatic content.
The Iowa legislature passed a bill requiring registration for above ground tanks storing petroleum products.
The Tennessee assembly passed an underground storage tank bill that sets the financial responsibility levels for tank owners and levies a 0.4/gal tax on gasoline and other petroleum products shipped into the state.
Connecticut passed a bill requiring a study of whether it should require establishment of a state home heating oil reserve.
PRODUCTION ISSUES
Louisiana had a bill pending that would authorize lower severance taxes for stripper wells-one fourth of the 12.5% normal rate-and for horizontal wells.
Another Louisiana bill would reduce the natural gas tax rate to 6.5% from 7%. And a third Louisiana bill would set the oil and gas severance tax at 7.5%. Currently, it is 12.5% for oil and 7/Mcf on gas.
The Oklahoma legislature passed a bill establishing spacing units up to 640 acres for horizontal wells.
Alabama passed a bill requiring a fee of $150/well on coalbed methane gas wells. The state will use the fund to plug abandoned coalbed methane gas wells if the operator fails to do so.
Colorado passed a bill increasing property taxes but removed a petroleum "bounty hunter" provision.
In a special session, Montana passed a law slightly increasing severance tax rates for stripper wells and oil production and eliminated an accidental tax exemption for stripper gas wells.
Copyright 1990 Oil & Gas Journal. All Rights Reserved.