Senate Bill 2227

AN ACT TO BE KNOWN AS "THE DEVON AND WADE BILL"; TO REQUIRE SPECIFIC SAFETY MEASURES FOR CERTAIN OIL AND GAS WELL SITES UNDER CERTAIN CIRCUMSTANCES; TO CREATE A VIOLATION FOR BREACH OF THE SAFETY STANDARDS; TO ENACT PENALTIES FOR VIOLATIONS; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) The operator of any well site on which is located any storage tank or battery of storage tanks where there is stored, either permanently or temporarily, crude oil, distillate or condensate produced from an oil well or a gas well is required to conform to the safety provisions of this section.

(2) (a) All access hatches to the tanks shall be kept closed securely at all times except when necessary for the hatches to be open for inspection or gauging.

(b) All stairways or ladders leading from ground level to the top of each tank shall have installed on the stairway or ladder a gateway or doorway permanently affixed in such a manner as to impede further ascent of the ladder or gangway to the top of the tank except through the open gate or door. The gateways or doorways shall be kept securely locked except when necessary to gauge or inspect the tank or tanks.

(3) The storage tanks and the nearby surrounding area shall be fenced and conspicuously marked and posted as follows:

(a) There shall be:

(i) Continuous perimeter fencing surrounding the site that is securely anchored, at least five (5) feet in height with double strands of barbed wire at the top, and located no closer than twenty (20) feet to any ignition source; and

(ii) A locking gate at any access point through, over or across the perimeter fence.

(b) Signage that bears the following information shall be posted on or within five (5) feet of any gate in the perimeter fencing:

(i) 1. "DANGER;"

2. "KEEP OUT;"

3. "Highly Flammable;" and

4. "No Smoking or Open Flames."

(ii) The wording required in subsection (3)(b)(i)1 and 2 shall be printed in capital lettering consisting of at least five (5) inches in height, and the wording required in subsection (3)(b)(i)3 and 4 shall be printed in lettering at least three (3) inches in height.

(c) Signage that includes, at a minimum, the following contact information, to be located on the gate in the perimeter fencing and on the gate to any stairs or ladder:

(i) Company name;

(ii) Twenty-four-hour contact telephone number; and

(iii) The API number assigned to the site by the Oil and Gas Board.

(d) Any gate in the perimeter fencing shall be kept securely locked except when necessary to gauge or inspect the tank or tanks.

(4) A violation of this section shall be punishable by a fine of Five Hundred Dollars ($500.00) per day for each day the violation continues, not to exceed Twenty-five Thousand Dollars ($25,000.00) per well site.

(5) This section shall not be construed to authorize, permit or excuse the failure to install or maintain any other safety feature at any oil or gas well that may be required or indicated by law, industry standard, reasonable care or otherwise.

(6) Nothing in this section shall limit the authority of the governing authority of a municipality or county to adopt a similar ordinance that may, in whole or in part, be more restrictive than this section, and in those cases the more restrictive ordinance shall govern.

SECTION 2. This act shall be known as "The Devon and Wade Bill."

SECTION 3. This act shall take effect and be in force from and after its passage for all oil or gas wells commenced on or after the effective date of this act; for oil or gas wells commenced before the effective date of this act, this act shall take effect and be in force from and after January 1, 2012.