NC H242

Increases bond required for oil and gas drilling registration from $5,000 to $5,000 plus $1.00 per linear foot of proposed drilling depth.

Raises drilling permit fee from $50 to $3,000 per well and abandonment fee from $15 to $450 per well.

Establishes landowner protections requiring 7 days' notice for non-surface-disturbing activities and 14 days' notice for surface-disturbing operations, with operators liable for water supply damage and personal property damage.

Limits oil and gas leases to 10 years unless commercial production is occurring, with reversion to surface owner if production ceases for 6+ months; lease terms cannot be waived by agreement.

Directs Department of Environment and Natural Resources to conduct comprehensive study of oil and gas exploration, hydraulic fracturing, and directional drilling, with findings due May 1, 2012, and requires at least two public hearings in the Triassic Basin by February 1, 2012.