NC H1064

Directs the Department of Environment and Natural Resources to continue studying oil and gas exploration, horizontal drilling, and hydraulic fracturing, with detailed recommendations due to the Environmental Review Commission by March 2013 through March 2014 on regulatory standards for water management, waste disposal, chemical disclosure, well construction, siting requirements, and emergency response procedures.

Establishes enhanced consumer and landowner protections including 14-30 day notice requirements before entry on property, presumptive liability for water contamination within 2,500 feet of wells, mandatory replacement water supplies, minimum 12.5% royalty payments, 10-year lease terms with automatic reversion if production ceases for 6+ months, and required pre-drilling water testing.

Requires registration of landmen with the Department of Environment and Natural Resources and establishes penalties for fraudulent practices, false representations, or violations of landman duties.

Creates the Joint Legislative Commission on Energy Policy with 10 members (5 from Senate, 5 from House) to exercise legislative oversight of all energy-related matters in the state, including monitoring oil and gas regulatory boards and programs.

Allocates $300,000 in recurring funds for three full-time permanent positions at the Department of Environment and Natural Resources dedicated to hydraulic fracturing matters across water quality, land resources, and waste management divisions.