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A
B
D
E
B
A
A
We
do
have
a
quorum.
I
do
the
constitution
to
do
business.
Okay,
first
item:
we're
going
to
take
up
is
house
bills
669..
I
think
I'm
just
going
to
do
that
from
here
and
we
have
bill
or
whoever
is
here
to
speak,
come
to
the
table.
Please
tom
fitzgerald,
please
introduce
yourself
for
the
record.
A
Okay
house
bill
669.
The
reason
for
this
bill
is
part
of
the
federal
infrastructure
bill,
kentucky's
eligible
to
apply
for
104
million
dollars
over
the
next
several
years
to
plug
abandoned
oil
and
gas
wells.
This
federal
funding
will
go
away,
will
go
a
long
way
toward
cleaning
up
the
100,
the
14
000
abandoned
orphan
wells
and
tank
batteries
that
have
been
identified
as
needed.
Plugging
and
remediation.
A
A
D
As
the
chairman's
indicated
there
is
a
significant
amount
of
money
in
excess
of
100
million
dollars
believed
that
will
be
coming
over
the
next
the
course
of
approximately
a
couple
of
years.
Initially,
there
is
a
phase
one
grant
of
25
million,
followed
up
with
a
program
grant
that
is
over
20
million.
D
Subsequently,
there's
a
performance
grant
that
the
state
can
can
apply
for
one
of
the
things
that
we
discovered
within
the
federal
language
is
the
federal
law.
Re
relies
upon
the
state,
the
various
states,
definitions
of
the
word
orphan
well.
These
funds
are
available
to
plug
orphan
wells
and
abandoned
tank
batteries
and
related
facilities
within
the
states.
A
D
In
addition
to
that,
there
some
concern
the
second
phase
or
a
second
aspect
of
the
federal
bill
was
to
create
jobs
within
the
states
in
the
affected
areas.
So
in
kentucky
particularly
rural
eastern
kentucky
and
rural
western
kentucky,
where
the
oil
and
gas
wells
and
industry
has
predominantly
been
located
under
the
kentucky
procurement
act
in
chapter
45,
a
there
are
significant
bonding
requirements.
D
If
a
contract
is
let
for
a
million
dollars
statutorily,
there's
a
performance
bond
required
of
a
million
dollars
and
a
payment
bond
required
of
a
million
dollars
that
in
and
of
itself
and
their
surety
bonds,
they're
required
to
be
issued
by
insurance
companies
based
on
financial
abilities,
balance
sheets
and
credit
worthiness.
D
The
premiums
on
those
are
in
excess
of
four
percent.
We
it's
our
opinion
within
the
industry,
so
we've
worked
with
the
the
cabinet
to
ensure
the
size
of
permits,
will
allow
for
state
and
local
company
suppliers
and
vendors
to
participate
and
that
this
work
will
not
just
go
to
large
national
and
regional
engineering
firms
located
outside
the
commonwealth.
G
Mr
chairman,
if
there's
any
questions
that
anyone
has
we're
just
trying
to
make
sure
we
leave
no
federal
money
on
the
table
when
it
comes
to
dealing
with
the
legacy
wells,
the
state
has
done
an
excellent
job
in
terms
of
identifying
some
14
000
wells,
11,
000
or
more
of
which
would
be
under
the
state
responsibility
as
opposed
to
those
on
federal
lands,
and
this
will
go
a
long
way
to
hopefully
employing
kentuckians
to
do
the
remediation
to
plug
them
to
get
rid
of
the
tank
batteries
that
are
on
so
many
farm
fields
and
and
are
kind
of
a
blight
on
the
landscape.
G
So
we're
there
may
be
some
additional
tweaks
and
in
order
to
satisfy
the
concerns
of
a
r
regarding
the
cabinet,
wants
to
make
sure
these
go
into
a
dedicated.
You
know
federal
account.
We
are
concerned
that
they
go
into
the
the
the
program
that
you
all
with
a.
I
think
a
significant
amount
of
foresight
created
a
couple
of
years
back,
which
is
allows
for
orphan
and
abandoned
wells
and
tank
batteries
and
other
related
infrastructure
to
be
removed
and
reclaimed.
G
So
we
are
ahead
of
the
game
relative
to
a
lot
of
other
states,
because
the
state
has
done
a
very
good
inventory
and
we've
we're
trying
to
provide
we.
If
you,
if
you
look
at
the
language
that
hopefully
will
be
a
technical
amendment
on
the
floor,
which,
if
we
can
get
that
language
nailed
down
there'll,
be
a
certain
percentage
of
a
cap
in
terms
of
the
number
of
wells
that
each
contract
will
be.
Let
for
to
make
it
affordable
to
make
sure
that
all
of
those
bonds
are
in
place.
G
But
it's
not
priced
out
of
the
range
that
small
and
medium
operators
in
kentucky
can
bid
on
and
do
the
work,
because
that
money
will
circulate
through
local
economies
when
it
is
spent
locally.
So
any
questions
that
the
committee
has
we'd
be
happy
to
try
to.
A
Answer
them:
okay,
before
we
do
that,
let
me
explain
a
little
bit
to
the
committee.
We
had
a
committee
substitute
which
we
just
adopted.
Our
intentions
were
to
incorporate
some
of
the
changes
that
tom
and
bill
have
mentioned.
We
could
not
get
that
done
and
get
it
to
you
in
the
24
hour
rule,
because
time
is
running
a
little
bit
late.
A
We
could
have
done
two
things
we
could
put
this
off
for
another
week
or
three
things.
I
guess
we
could
pass
it
out
of
the
committee
with
this
committee
sub
and
then
with
understanding
that
we're
working
on
cemented
language
that
can
be
done
in
a
floral
amendment
that
these
gentlemen
and
the
cabinet-
and
I
we
all
agree
on
and
and
they're
mostly
technical,
to
make
sure
that
we're
complying
with
some
things.
A
As
far
as
transparency
as
far
as
before
the
fundings
is
going
or
the
other
thing
was,
we
could
pass
it
out
like
this
and
then
ask
the
leadership
to
recommit
it.
But
I
don't
think
that's
as
good
an
ideal
as
the
understanding
with
everyone
that
everyone's
in
agreement
that
these
changes
that
we
wish
we
could
have
had
today.
But
we
can
do
them
on
in
the
floor
amendment
so
that
that's
just
for
the
committee's
information.
So
representative
johnson
did
you
have
a.
H
Yeah,
don't
actually
have
a
question,
it's
more
of
a
comment.
I
just
wanted
to
thank
the
sponsor
and
thank
you
guys
for
bringing
this
living
in
western
kentucky.
We
have
these
my
these
mines,
these
wells
all
over
the
place
and
they've
been
there
for
decades.
I've
wondered
about
them
for
decades,
and
now
we've
got
a
way
to
to
clean
those
wells
up.
So
I
very
much
appreciate
this.
I
also
appreciate
the
fact
that
you're
you're
structuring
in
such
a
way
that
small
and
medium
companies
have
a
shot
at
the
contracts.
H
C
Thank
you,
mr
chairman.
We
have
a
number
of
gas
wells
on
our
property
and
some
of
them
has
been
there
for
decades
and
my
sister
tech
manages
well.
She
takes
care
of
all
the
things
dealing
with
it,
but
on
these
and
I'm
not
sure
that
what
they
are
not
abandoned
as
far
as
the
upkeep,
because
you
know
there's
there's
several
of
them.
C
I
think
that
some
of
the
people
still
use
residential
gas
out
of
these,
and
if
I
go,
if
I
vote
to
plug
a
well,
I
go
home,
I'm
going
to
be
in
trouble,
so
I
want
to.
Can
you
clarify
exactly
what
I
I
understand
that
they're
abandoning
my
wells,
but
I
mean
man
there's
several
in
my.
D
Representative,
there
is
a
procedure
for
a
operator
abandoning
a
well
to
the
landowner
and
the
landowner
then
using
that
for
for
house
gas.
Okay,
that
well
would
not
qualify
under
the
definition
as
an
orphan,
well.
Orphan
wells
are
truly
abandoned.
Wells
no
longer
operated
for
which
there's
no
operator
and
and
no
responsible
party
and
no
bond
covering
the
well.
D
The
division,
it's
my
understanding
before
plugging
an
orphan,
well
we'll
be
in
touch
with
the
landowner,
because
they're
going
to
be
concerned
about
access
and
getting
on
the
property
getting
to
the
wells
and
and
doing
the
remediation
necessary.
So
I
think
there
will
be
an
opportunity
for
the
landowner
to
say:
wait,
I'm
getting
house
gas
from
that!
Well,
I
don't
want
it
plugged
and-
and
there
is
a
process
for
the
landowner-
to
put
up
a
very
nominal
bond
if
it
hasn't
already
been
done.
F
Birch,
that's
pretty
okay.
This
45
million
dollars
is
going
to
be
available.
How
many
wells
will
that
cap.
D
There's
wells
in
south
central
kentucky.
That
will
be
only
maybe
eight
thousand
dollars
and
there
are
wells
in
pike,
county
and
potentially
in
henderson
county,
where
the
formations
are
deeper,
where
the
the
plugging
costs
could
be
35,
000
or
more
per
well.
So
there's
is
there
enough
money
to
plug
every
well?
D
F
The
what
does
it,
how
do
they
fill
these
wells?
I
mean
the
concrete
or.
D
F
I
D
G
There
are
three
separate
grant
categories
that
are
provided
in
the
federal
bill.
The
initial
has
a
very
tight
time
frame.
Then
there
is
the
formula
and
then
there's
what's
called
the
performance
grants
which
provide
a
little
longer
time,
the
the
language
we're
attempting
to
work
out
regarding
a
a
set
aside
for
smaller
contracts,
where
you
have
a
maximum
of
10
wells
and
then
a
maximum
of
25
and
then
a
third
category
where
there
is
no
limit
to
the
number
of
wells
you
can
aggregate
in
a
contract
for
a
vendor.
G
We've
tried
to
provide
some
flexibility,
understanding
that
overall,
that's
the
intent
is
to
provide
that
set
aside
for
local
businesses
and
and
local
employment,
while
recognizing
that
they
may
have
to
commit
some
of
that
money
more
quickly.
In
order
to
meet
that
federal
deadline,
I
mean
you
know,
the
deadline
is
is
upon
us
and
there
still
is
no
guidance
coming
down
on
what
exactly
has
to
be
done.
G
But
I
what
we're
attempting
to
do
with
the
redefinition
of
orphan
wells
is
to
because
the
federal
law
defers
and
says
if
the
state
has
a
definition
of
orphan
wells
that
will
govern
what
you
can
spend
it
on
and
that's
why
we're
revising
it
to
include
those
abandoned
wells
for
the
purposes
of
this
federal
money,
to
make
sure
that
we've
got
that
accessible
for
the
the
broad
universe
of
truly
abandoned
wells
and
and
representative
kirk
mccormick,
we
will
not
get
you
into
trouble.
So
thank
you.
A
You
and,
and
that's
partly
the
purpose
for
springing
this
bill
is
to
make
sure
that
we're
not
losing
and
those
federal
funds
reverting
back
to
the
federal
government.
So,
representative
stevenson,
do
you
have
a
question
online?
I
do
have
a.
E
Question,
thank
you,
jordan.
Mr
fitzgerald.
I
appreciate
your
focus
on
small
businesses
and
medium-sized
businesses
because
they
usually
get
run
over
by
the
large
ones,
and
I
guess
my
question
is
not
knowing
all
that
you
know
about
this
business.
Is
there
a
provision
to
set
aside
to
make
sure
that
perhaps
some
minority
businesses
can
participate
in
this
also.
G
That's
a
very
good
question:
I'm
going
to
defer
that
to
bill
and
he
has
a
much
better
sense
of
of
minority
representation
within
the
oil
and
gas
sector.
D
D
So
sorry,
thank
you,
mr
chairman,
for
reminding
me
to
my
knowledge.
There
is
a
at
least
one
possibly
two
minority-owned
companies
in
the
industry
that
I'm
aware
of,
and
there
may
be
more
but
there's
limited
participation.
D
Currently,
I
believe
that
there
are
significant
number
of
of
minority
employees
that
will
be
benefited
and
the
federal
law
requires
the
successful
award
of
a
contract
to
be
based
on
prevailing
wage.
So
these
these
contracts
will
pay
the
employees
of
the
persons
awarded
the
contract
significantly
more
than
sometimes
is
paid
in
the
industry.
E
Thank
you
and
mr
chairman
one
more
question.
Please,
yes,
go.
E
You
I
would
well
rather
comment
I
would
encourage.
I
would
imagine
that
they're,
probably
more
minority
participants,
but
they've
not
participated
before,
because
they
don't
have
a
million
dollar
bail
on
a
mill
value
bond
and
they
don't
have
the
resources
to
compete.
So
they
pull
back.
I
would
suggest
that
we
pull
forward
and
encourage
them
to
apply
as
long
as
they
fulfill
what
you
need
to
get
the
wells
plunked,
but
it
might
be
an
opportunity
for
them
to
re-engage.
G
J
A
Okay
resident
flannel,
we've
got
you.
There
is
a
title
amendment
so
at
this
emotion.
Second,
on
time,
all
in
favor
say
aye
all
opposed
okay,
so
this
bill
does
pass
with
the
house
committee
substitute
and
the
amendment
subject
to
our
agreement
on
the
floor.
So
thank
you,
gentlemen.
So
much
we
appreciate
you
what
we're
mentioning
our
co-chairman
representative
white
had
surgery
last
night,
he
got
a
liver
transplant
and
I
understand
that
it
is
working
and
he's
doing
well.
I
guess
so.
A
We
want
to
remember
him
and-
and
please
continue
to
keep
him
in
in
our
prayers.
So
thank
you.
Okay.
Next
we
have
house
bill
758.
gary
larimore.
I
think
you
are
here
to
testify
on
this
bill
as
well
house
bill.
758
is
kind
of
a
direct
result
to
recommendations
that
were
made
in
the
2019-2020
lrc
public
water
and
wastewater
infrastructure
task
force.
A
It
accomplishes
three
things,
each
of
which
will
allow
kentucky
to
maximize
the
benefits
of
more
than
1.5
billion
in
federal
infrastructure
funds
eligible
to
that
kentucky
is
eligible
to
receive
over
the
next
decade.
So
gary
larimore
is
with
the
rural.
What
real
water
association
and
please
introduce
yourself
and
I'll,
let
you
explain
the
bill.
Thank
you.
J
Thank
you,
mr
chairman.
Good
morning,
committee
members,
I'm
here
in
support
of
house
bill
758
and,
as
chairman
had
mentioned,
it's
a
direct
result
of
a
task
force
that
we
had
in
2019
and
2020
talking
about
the
issues
for
public
water
and
wastewater
utilities
across
the
state.
J
J
A
The
chairman
touches
me:
okay,
so
and
again
I
do
want
to
clarify
that.
There's
been
one
issue
that
has
been
brought
to
our
attention:
the
auditor's
office.
Do
you
want
to
come
to
the
table
and
we
and
we
are
currently
working
with
them
on
that,
and
there
there
too,
probably
will
be
a
for
amendment
to
take
out
a
section
that
we
think
that
we
didn't
realize
have
affected
them.
Go
ahead.
Yes,.
I
F
I
Objection
with
what
the
rural
water
folks
are
trying
to
do
with
the
bill.
The
only
issue
we
have
is
with
some
language,
that's
in
section
3
that
would
take
teeth
out
of
the
city
audit
requirement
that
our
office
worked
a
couple
of
years
ago
in
close
cooperation
with
the
league
of
cities
to
add,
and
so
we
would
just
ask
that
that
section
three
be
removed
by
floor
amendment
as
this
moves
forward.
If
that's
possible.
J
Yeah
we're
certainly
in
agreement
with
that.
The
original
intent
of
that
was
to
give
kentucky
infrastructure
authorities
some
flexibility.
You
know
we're
getting
the
arpa
money
and
there
are
some
municipals
out
there.
Basically,
the
law
requires
department
of
local
government
to
submit
a
list
of
those
that
have
not
completed
their
audits
and
to
the
finance
administration
cabinet
and
by
law
they
have
to
put
a
hold
on
any
state
or
federal
dollars.
I
I
A
E
A
I
B
H
A
Yes,
could
the
bill
does
pass
then,
and
thank
you
all
for
your
participation
and
help,
and
I
want
to
thank
the
committee
for
giving
us
the
leeway
and
understanding
that
you
know.
Sometimes
these
things
are
work
in
progress,
but
we
are
certainly
you
know
trying
to
maintain.