AN ACT to amend Tennessee Code Annotated, Title 59; Title 60 and Title 68, relative to the production of oil and gas.
SB2231 revises Tennessee’s oil and gas regulatory framework, updating definitions and reorganizing provisions governing drilling, permitting, operations, reclamation, enforcement, and related fees. The bill defines key terms such as “operator,” “producer,” and “well,” requires permits before surface disturbance or drilling, and strengthens notice requirements to surface owners before site preparation begins. It also changes setback and environmental protection standards, including a narrower stream buffer, and requires operators to comply with approved plans as a condition of their permits.
The bill also expands and clarifies the Department’s rulemaking and enforcement authority. It authorizes rules on drilling, casing, plugging, spacing, unitization, pollution prevention, reclamation, and bonding, and it establishes detailed procedures for civil penalties, bond forfeitures, and administrative appeals. The measure directs that penalty and forfeiture revenues go into a Tennessee oil and gas reclamation fund, and it revises reclamation bond release procedures tied to regrading, revegetation, plugging, and final site restoration. It also transfers the Mineral Test Hole Regulatory Act from Title 60 to Title 59 as a new chapter, with conforming changes to fee-setting provisions.
SB2231 substantially amends Tennessee Code Annotated Title 60, Chapter 1, and makes related changes to Titles 59 and 68. It replaces or deletes several existing sections, adds new definitions and notice requirements, and creates a more detailed permitting, enforcement, and reclamation structure for oil and gas operations. The bill affects operators, producers, landowners, and the state supervisor/board responsible for oil and gas regulation, while also redirecting certain revenues into a dedicated reclamation fund and relocating the Mineral Test Hole Regulatory Act into Title 59.
The available voting history indicates strong support for the bill. The Senate Energy, Agriculture and Natural Resources Committee recommended passage by a 7-0 vote, and the Senate floor adopted the motion unanimously, 32-0. No committee transcript excerpts were provided, so the record reflects broad legislative agreement rather than documented debate.
No specific opposition or contested issues are documented in the provided materials, but the bill’s most likely points of contention are the tighter operational and environmental requirements imposed on oil and gas operators. These include mandatory permits before surface disturbance, expanded notice and surface-owner consent procedures, bonding and reclamation obligations, civil penalties, and the authority to force unitization or shut in production to prevent waste and protect correlative rights. Landowners may favor the added notice and approval rights, while operators may view the new compliance, bonding, and reclamation standards as more burdensome.