Senate Bill No. 643
(By Senators Kessler and Edgell)
____________
[Introduced February 22, 2010; referred to the Committee on
Transportation and Infrastructure; and then to the Committee on
the Judiciary.]
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A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new article, designated §17C-17C-1, §17C-17C-
2, §17C-17C-
3, §17C-17C-
4, §17C-17C-
5 and §17C-17C-
6, all
relating to creation of the temporary natural gas resources
transportation road system; providing legislative findings;
creating regulatory program; defining certain terms; requiring
Division of Highways to establish vehicle weight and size
limits for public highways, including natural gas resource
transportation roads; providing for temporary designation of
natural gas resource transportation roads; requiring
certification of natural gas permitting areas by the
Department of Environmental Protection to Division of
Highways; requiring exchange of certain information between
agencies; requiring certain road signs; providing for toll-
free telephone line for public reporting of poor driving or violations; authorizing the Public Service Commission to
administer the special permit program and to enforce this
article; authorizing Public Service Commission to inspect
certain trucking records; requiring study and report on
commercial vehicle safety-related issues; authorizing
emergency and legislative rules to effectuate purposes of the
article; authorizing the Public Service Commission to issue
permits and establish training and other requirements;
authorizing Division of Highways to issue permits and
establishing certain requirements; requiring all natural gas
well owners to obtain permit; providing that natural gas well
owners are responsible for contractors; providing that all
natural gas well owners in an area are responsible for the
cost of road maintenance and repair; providing for suspension,
revocation and modification of permits; providing for cease
and desist orders in the interest of public safety; requiring
accident reporting; and creating penalties for failing to
report accidents.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new article, designated §17C-17C-1, §17C-17C-
2,
§17C-17C-
3, §17C-17C-
4, §17C-17C-
5 and §17C-17C-
6,
all to read as
follows:
ARTICLE 17C. CREATION AND REGULATION OF NATURAL GAS RESOURCE
TRANSPORTATION ROADS.
§17C-17C-1. Legislative findings and creation of program.
(a) The Legislature finds and declares that:
(1) The vast potential for the development of the Marcellus
Shale and other natural gas formations underlying West Virginia
through the use of new exploration and production techniques
currently has, and will continue to have, a tremendous impact upon
the citizens of this state, providing an economic force and
affecting the social construct and day-to-day life and environment
of the people and communities of this state where the drilling and
development occur.
(2) The historic progression of the natural gas industry and
its potential for growth as the Marcellus Shale and other natural
gas formations are tapped for unprecedented gas production results
in an increasing use of the public highways of this state for the
transportation of the massive drilling equipment, enormous amounts
of water, sand, chemicals and other materials, both benign and
hazardous. Roads where such equipment and materials are
transported are mainly two-lane rural roads and highways of varying
grades and conditions. The daily presence of large commercial
motor vehicles on these roads and highways causes significant
impact to local communities and the local transportation
infrastructure. Local residents are exposed on a daily basis to
the dangers associated with sharing narrow rural roads with a large
number of these vehicles.
(3) Although the development and drilling phases of natural gas production are generally for a period of one year or less, the
effects of the development on the citizens and the infrastructure
are acute and significant. The increased capacity and ability of
the commercial vehicles to haul the equipment and materials
necessary for the development of these well sites, tied with
increased economic pressures to bring the wells on line as quickly
as possible, have created economic incentives for transporting
large quantities of equipment and materials, sometimes in
commercial vehicles that are oversize or overweight. Regardless of
whether the vehicles are of legal size and weight or are carrying
excessive weight or are oversize, they cause the rapid
deterioration of state roads and bridges, create significant costs
to the state of millions of dollars in lost road and bridge use and
life.
(4) The use of these vehicles on narrow, rural roads which
were not designed nor intended for such large vehicles also puts
the safety of all drivers on those roads at risk. Accidents
involving large commercial vehicles on these rural roads may render
the roads impassable for emergency vehicles as well as local
residents for extended periods of time. The lack of communication
with local law enforcement and responsible agencies regarding such
accidents and traffic hazards is not only dangerous for the vehicle
operators and local residents, it is illegal. The communication
problem is exacerbated by the lack of cellular telephone service in
many rural areas.
(5) Enforcement of truck safety and driver safety laws has
been divided between various jurisdictions such as local and state
law enforcement, the Division of Highways and the Public Service
Commission. As a result, local and state enforcement of those
comprehensive laws has not been uniform, with the result that many
of these laws may not have not been enforced.
(6) The resulting need for a remedy for hauling equipment and
materials to natural gas drilling sites is severe where the
Marcellus Shale and other formations are being actively developed.
As more natural gas is produced from these formations, every area
of the state will be effected.
(7) Any remedy must include additional safety protections for
the public sharing the roads with a large vehicle fleet and
specialized training for operators of these vehicles, as well as
requiring the program to be designed to assure that state weight
and safety requirements are effectively administered and enforced.
(b) A special regulatory program with administrative
enforcement authority over all vehicles hauling equipment and
materials for natural gas drilling in West Virginia is created.
This program is designed to address the economic needs of the state
natural gas industry within the confines of the ability of the
transportation infrastructure to accommodate these needs and in
careful consideration for road safety and maintenance requirements
of these vehicles by providing for enhanced enforcement and safety
requirements on natural gas resource transportation roads and allowing limited weight and size increases, above the currently
allowable weight and size limits on these rural roads for vehicles
hauling equipment and materials for natural gas drilling where an
increase is required and where the infrastructure can sustain, or
be made to sustain, the increased traffic and loads.
§17C-17C-2. Definitions.
For purposes of this article:
(a) "Commission" means the Public Service Commission of West
Virginia.
(b) "Division" means the Division of Highways within the
Department of Transportation.
(c) "Drilling activity" means the activity related to
exploration and production of natural gas from a site for "well
work" as defined in section one, article six, chapter twenty-two of
this code.
(d) "Drilling site or well site" means the location of
drilling activity.
(e) "Driver or Operator" means the person operating a
commercial motor vehicle transporting natural gas drilling
equipment or materials on any public highway of this state.
(f) "Natural gas resource transportation road" means a road
designated by the Department of Transportation as safe and
sufficient to allow vehicles hauling equipment and materials to
natural gas drilling sites to carry a greater gross and axle weight
of up to one hundred and twenty thousand pounds, with a five percent variance.
(g) "Natural gas well owner" means any person, firm,
partnership, partnership association or corporation that owns,
manages, operates, controls or possesses such well as principal, or
as lessee or contractor; employee or agent of such principal.
(h)"Vehicle owner" means the person who as owner of a
commercial motor vehicle employs, contracts or otherwise directs a
driver to operate that vehicle on a public highway of this state
for the purpose of transporting equipment or materials to a natural
gas drilling site.
§17C-17C-3. Authority and duties of the Division of Highways;
Department of Environmental Protection and Public
Service Commission generally.
(a) The Division of Highways shall establish all legal vehicle
weight and size limits for all public highways including roads
within the natural gas resource transportation road system. The
Division of Highways shall establish a temporary road designation
of natural gas resource transportation road which shall apply only
during the period of time that a natural gas drilling activity is
underway. The designation shall be withdrawn when the drilling
equipment is removed and the gas well is in production.
(b) Only state-maintained roads and public highways found in
the areas certified by the Department of Environmental Protection
as having active natural gas drilling sites in the Marcellus Shale
or other such formations, where well work is ready to commence or is being conducted shall be included in the temporary natural gas
resource transportation road system. The Department of
Environmental Protection shall provide copies of the permit for
well work and the application for the permit to the division and
promptly advise the division when well work permits are issued,
revoked or modified, if the modification would require a change to
the list of natural gas resource transportation roads.
(c) The division shall post signs on natural gas resource
transportation roads informing the public of the designation and
shall also list a toll-free telephone line for public reporting of
poor driving or law violations by special permit operators.
(d) The Public Service Commission shall administer the natural
gas resource transportation road special permitting program and
otherwise enforce the provisions of this article. The commission
shall establish requirements for vehicle operators holding natural
gas resource transportation road permits pursuant to section four
of this article consistent with federal statutory and regulatory
requirements.
(e) The commission may, during normal business hours, conduct
inspections of all trucking-related records of vehicle operators
and owners engaged in the transportation of equipment and materials
on natural gas resource transportation roads. Copies of records
shall be provided to commission employees upon request. This
provision may not be construed to authorize the commission to
reveal trade secrets or other confidential financial information of those persons inspected; however the commission may use any weight
measurement records as evidence of a violation of this article.
(f) The commission shall establish and maintain a toll-free
telephone line for public reporting of poor driving or law
violations by special permit operators. In addition, the
commission shall require all vehicles operating under a special
permit issued pursuant to the provisions of this article to clearly
display on the vehicle the toll-free telephone number.
(g) The commission shall implement a study of commercial
vehicle safety-related issues, including using higher education
institutions and other research organizations. The commission
shall provide periodic reports to the commercial motor vehicle
weight and safety enforcement advisory committee as established in
section two, article one-a, chapter twenty-four-a of this code
relating to the study of motor vehicle weight and safety
enforcement.
(h) Notwithstanding the provisions of section three, article
one, chapter twenty-nine-a of this code, the commission and the
division shall each propose emergency and legislative rules for
promulgation in accordance with the provisions of article three of
said chapter to carry out their duties and responsibilities
pursuant to the provisions of this article.
§17C-17C-4. Special permits; training requirements; promulgation
of rules.
(a) The commission may issue permits to authorize transportation of equipment and materials on natural gas resource
transportation roads if the vehicle driver meets training and
safety requirements established by the commission. This special
permit is in addition to any other permit or license required by
law.
(b) Notwithstanding the provisions of section three, article
one, chapter twenty-nine-a of this code, the commission shall
promulgate emergency and legislative rules to effectuate the
purposes of this section, which shall, at a minimum, provide for
the following:
(1) Requirements for twenty-four hours of mandatory
specialized training for commercial vehicles operators with less
than two years of commercial driving experience and all commercial
operators using the natural gas resource transportation roads who
have less than one year of commercial driving experience on
mountainous rural roads;
(2) Requirements for random drug and alcohol testing;
(3) Mandatory reporting of accidents;
(4) Requirements for daily records consistent with the
provisions of any applicable federal statutory or regulatory
requirements;
(5) Permit fees; and
(6) Any other requirements determined to be necessary or
appropriate by the commission.
(c) Special permits authorized by this section shall be issued by the commission on forms prescribed and furnished by it. The
special permit indicium shall be carried on the person of the
vehicle driver. Lost, destroyed, stolen or otherwise unusable
special permits shall be replaced in accordance with legislative
rules to be promulgated by the commission.
(d) Special permits issued pursuant to the provisions of this
section are valid for a period of one year from the date of
purchase:
Provided, That no renewal permits shall be issued to any
permittee who, at the time of the renewal, has any administrative
or criminal actions pending relating to the operation of commercial
motor vehicles in this or other states.
§17C-17C-5. Natural gas well owner permits; promulgation of rules.
(a) A natural gas well owner may not have, authorize or allow
equipment or materials to be transported over a natural gas
resource transportation road without a natural gas well owner
permit issued by the Commissioner of the Division of Highways. A
natural gas well owner permit may be issued for a period not to
exceed two years and may be renewed for an additional period not to
exceed one year. All natural gas well owners currently conducting
drilling activities shall apply for a natural gas well owner permit
within thirty days of the enactment of this article by the
Legislature in 2010. The natural gas well owner is responsible for
the conduct of his or her contractors and subcontractors when they
are using a natural gas resource transportation road.
(b) Natural gas well owner permits may include, but are not limited to, the following requirements:
(1) Pilot vehicles when required by the division;
(2) Creation and maintenance of vehicle pull off areas
(3) Limitation on hours of operation of vehicles;
(4) Provide the division with an up to date list of
contractors and subcontractors authorized by the natural gas well
owner to transport equipment and materials on a natural gas
resource road;
(5) Provide the division with an up to date list of the
vehicles and equipment used by the contractors and subcontractors
authorized by the natural gas well owner to transport equipment and
materials on a natural gas resource road;
(6) Weight and length restrictions for commercial vehicles and
loads as appropriate for the roads;
(7) Road improvements which may be required before, during and
after completion of that portion of the well work that necessitates
transportation of equipment and materials under this permit; and
(8) Performance bond in an amount sufficient to cover road
repairs.
(c) If more than one natural gas well owner is operating in
the same area, each owner is jointly and severely liable for the
cost of road repair and maintenance.
(d) The division may suspend, revoke or modify a permit, after
notice and opportunity to be heard, if the natural gas well owner
violates the terms and conditions of the permit. If one or more violations, individually or in combination, endanger public safety
the division may issue a cease and desist order requiring the
immediate cessation of all well work and the transportation of
equipment and materials until such time as the violation or
violations are corrected and the public safety is no longer
endangered.
(e) The division shall promptly notify the Department of
Environmental Protection of natural gas well owner permit
violations. The
d
epartment shall suspend or revoke the well work
permit when the natural gas well owner permit has been suspended or
revoked or a cease and desist order has been entered by the
division.
(f) The division shall propose emergency and legislative rules
for promulgation in accordance with the provisions of article
three, chapter twenty-nine-a of this code to establish a schedule
of permit fees and to effectuate the provisions of this section.
§17C-17C-6. Accident reporting; penalties.
(a) Whenever any accident occurs on or about a road designated
as part of the natural resources transportation road system, it is
the duty of the operator to notify, within fifteen minutes, the
Division of Homeland Security and Emergency Management of the
accident regardless of whether another vehicle is involved in the
accident or whether any injuries occurred. It shall be posted in
a conspicuous location in every vehicle whose operator has a permit
for the natural gas resource transportation road system. If the accident occurs in an area where cellular telephone service is not
available the operator shall, within five minutes, contact the
drilling site or the trucking company's headquarters via radio.
The radio operator at the drilling site or the trucking company's
headquarters shall immediately notify the Division of Homeland
Security and Emergency Management of the accident and its precise
location.
(b) In addition to any other penalty or sanction provided by
law, the Commissioner of the Division of Motor Vehicles shall
suspend for a period of one year the driver's license of a
commercial vehicle driver if it is determined that the driver
failed to give notice as required by this section. The
Commissioner of Motor Vehicles may waive the suspension if he or
she finds that failure to give notice of an accident was caused by
circumstances wholly outside the control of the operator.
(c) In addition to any other penalty or sanction provided by
law, the Commissioner of Environmental Protection shall impose a
civil administrative penalty of $50,000 on a natural gas well owner
if it is determined that the radio operator failed to give notice
as required by this section. The Commissioner of Environmental
Protection may waive imposition of the civil administrative penalty
if he or she finds that failure to give notice of an accident was
caused by circumstances wholly outside the control of the radio
operator.
NOTE: The purpose of this bill is to create the natural gas
resources transportation road system and to regulate the
transportation of equipment and materials on those roads.
This article is new; therefore, strike-throughs and
underscoring have been omitted.