AZ SB1259

Prohibits horizontal hydraulic fracturing in Arizona by defining it as a technique using injected substances to expand rock fractures from horizontal wellbores for oil and gas exploration, drilling, or production.

Classifies oil or gas produced using horizontal hydraulic fracturing as "illegal gas" or "illegal oil," making it unlawful to produce under state conservation laws.

Imposes civil penalties of at least $10,000 per day of operations (including exploration activities) for any person causing horizontal hydraulic fracturing to occur in Arizona, compared to standard violations penalized at up to $1,000 per day.

Adds groundwater contamination prevention to the state's public policy for oil and gas production and includes fracturing fluid injection and produced water/flowback as forms of prohibited waste.

Prohibits the Oil and Gas Conservation Commission from allowing horizontal hydraulic fracturing in any gas cycling, pressure maintenance, or secondary recovery operations.