As Introduced

128th General Assembly
Regular Session
2009-2010
S. B. No. 165


Senator Niehaus 

Cosponsors: Senators Gibbs, Stewart, Carey, Harris, Seitz 



A BILL
To amend sections 1509.01, 1509.02, 1509.03, 1509.04, 1
1509.05, 1509.06, 1509.07, 1509.071, 1509.072, 2
1509.10, 1509.11, 1509.12, 1509.13, 1509.14, 3
1509.17, 1509.18, 1509.20, 1509.21, 1509.22, 4
1509.221, 1509.222, 1509.225, 1509.226, 1509.23, 5
1509.27, 1509.31, 1509.35, 1509.36, and 5749.06 6
and to enact sections 1509.062, 1509.19, 1509.34, 7
1509.50, and 1571.18 of the Revised Code to 8
revise the Oil and Gas Law.9


BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

       Section 1.  That sections 1509.01, 1509.02, 1509.03, 1509.04, 10
1509.05, 1509.06, 1509.07, 1509.071, 1509.072, 1509.10, 1509.11, 11
1509.12, 1509.13, 1509.14, 1509.17, 1509.18, 1509.20, 1509.21, 12
1509.22, 1509.221, 1509.222, 1509.225, 1509.226, 1509.23, 13
1509.27, 1509.31, 1509.35, 1509.36, and 5749.06 be amended and 14
sections 1509.062, 1509.19, 1509.34, 1509.50, and 1571.18 of the 15
Revised Code be enacted to read as follows:16

       Sec. 1509.01.  As used in this chapter:17

       (A) "Well" means any borehole, whether drilled or bored,18
within the state for production, extraction, or injection of any19
gas or liquid mineral, excluding potable water to be used as such, 20
but including natural or artificial brines and oil field waters.21

       (B) "Oil" means crude petroleum oil and all other22
hydrocarbons, regardless of gravity, that are produced in liquid23
form by ordinary production methods, but does not include24
hydrocarbons that were originally in a gaseous phase in the25
reservoir.26

       (C) "Gas" means all natural gas and all other fluid27
hydrocarbons that are not oil, including condensate.28

       (D) "Condensate" means liquid hydrocarbons that were29
originally in the gaseous phase in the reservoir.30

       (E) "Pool" means an underground reservoir containing a common 31
accumulation of oil or gas, or both, but does not include a gas 32
storage reservoir. Each zone of a geological structure that is 33
completely separated from any other zone in the same structure may 34
contain a separate pool.35

       (F) "Field" means the general area underlaid by one or more 36
pools.37

       (G) "Drilling unit" means the minimum acreage on which one38
well may be drilled, but does not apply to a well for injecting39
gas into or removing gas from a gas storage reservoir.40

       (H) "Waste" includes all of the following:41

       (1) Physical waste, as that term generally is understood in 42
the oil and gas industry;43

       (2) Inefficient, excessive, or improper use, or the44
unnecessary dissipation, of reservoir energy;45

       (3) Inefficient storing of oil or gas;46

       (4) Locating, drilling, equipping, operating, or producing an 47
oil or gas well in a manner that reduces or tends to reduce the 48
quantity of oil or gas ultimately recoverable under prudent and 49
proper operations from the pool into which it is drilled or that 50
causes or tends to cause unnecessary or excessive surface loss or 51
destruction of oil or gas;52

       (5) Other underground or surface waste in the production or 53
storage of oil, gas, or condensate, however caused.54

       (I) "Correlative rights" means the reasonable opportunity to 55
every person entitled thereto to recover and receive the oil and 56
gas in and under the person's tract or tracts, or the equivalent57
thereof, without having to drill unnecessary wells or incur other58
unnecessary expense.59

       (J) "Tract" means a single, individually taxed parcel of land 60
appearing on the tax list.61

       (K) "Owner," unless referring to a mine, means the person who 62
has the right to drill on a tract or drilling unit, to drill into 63
and produce from a pool, and to appropriate the oil or gas 64
produced therefrom either for the person or for others, except 65
that a person ceases to be an owner with respect to a well when 66
the well has been plugged in accordance with applicable rules 67
adopted and orders issued under this chapter. "Owner" does not 68
include a person who obtains a lease of the mineral rights for oil 69
and gas on a parcel of land if the person does not attempt to 70
produce or produce oil or gas from a well or obtain a permit under 71
this chapter for a well or if the entire interest of a well is 72
transferred to the person in accordance with division (B) of 73
section 1509.31 of the Revised Code.74

       (L) "Royalty interest" means the fee holder's share in the 75
production from a well.76

       (M) "Discovery well" means the first well capable of77
producing oil or gas in commercial quantities from a pool.78

       (N) "Prepared clay" means a clay that is plastic and is79
thoroughly saturated with fresh water to a weight and consistency80
great enough to settle through saltwater in the well in which it81
is to be used, except as otherwise approved by the chief of the82
division of mineral resources management.83

       (O) "Rock sediment" means the combined cutting and residue84
from drilling sedimentary rocks and formation.85

       (P) "Excavations and workings," "mine," and "pillar" have the 86
same meanings as in section 1561.01 of the Revised Code.87

       (Q) "Coal bearing township" means a township designated as88
such by the chief under section 1561.06 of the Revised Code.89

       (R) "Gas storage reservoir" means a continuous area of a90
subterranean porous sand or rock stratum or strata into which gas91
is or may be injected for the purpose of storing it therein and92
removing it therefrom and includes a gas storage reservoir as93
defined in section 1571.01 of the Revised Code.94

       (S) "Safe Drinking Water Act" means the "Safe Drinking Water 95
Act," 88 Stat. 1661 (1974), 42 U.S.C.A. 300(f), as amended by the 96
"Safe Drinking Water Amendments of 1977," 91 Stat. 1393, 42 97
U.S.C.A. 300(f), the "Safe Drinking Water Act Amendments of 1986," 98
100 Stat. 642, 42 U.S.C.A. 300(f), and the "Safe Drinking Water99
Act Amendments of 1996," 110 Stat. 1613, 42 U.S.C.A. 300(f), and 100
regulations adopted under those acts.101

       (T) "Person" includes any political subdivision, department, 102
agency, or instrumentality of this state; the United States and 103
any department, agency, or instrumentality thereof; and any legal 104
entity defined as a person under section 1.59 of the Revised Code.105

       (U) "Brine" means all saline geological formation water106
resulting from, obtained from, or produced in connection with the107
exploration, drilling, orwell stimulation, production of oil or 108
gas, or plugging of a well.109

       (V) "Waters of the state" means all streams, lakes, ponds,110
marshes, watercourses, waterways, springs, irrigation systems,111
drainage systems, and other bodies of water, surface or112
underground, natural or artificial, that are situated wholly or113
partially within this state or within its jurisdiction, except114
those private waters that do not combine or effect a junction with 115
natural surface or underground waters.116

       (W) "Exempt Mississippian well" means a well that meets all 117
of the following criteria:118

       (1) Was drilled and completed before January 1, 1980;119

       (2) Is located in an unglaciated part of the state;120

       (3) Was completed in a reservoir no deeper than the121
Mississippian Big Injun sandstone in areas underlain by122
Pennsylvanian or Permian stratigraphy, or the Mississippian berea123
Berea sandstone in areas directly underlain by Permian 124
stratigraphy;125

       (4) Is used primarily to provide oil or gas for domestic use.126

       (X) "Exempt domestic well" means a well that meets all of the 127
following criteria:128

       (1) Is owned by the owner of the surface estate of the tract 129
on which the well is located;130

       (2) Is used primarily to provide gas for the owner's domestic 131
use;132

       (3) Is located more than two hundred feet horizontal distance 133
from any inhabited private dwelling house other than an inhabited 134
private dwelling house located on the tract on which the well is 135
located;136

       (4) Is located more than two hundred feet horizontal distance 137
from any public building that may be used as a place of resort, 138
assembly, education, entertainment, lodging, trade, manufacture, 139
repair, storage, traffic, or occupancy by the public.140

       (Y) "Urbanized area" means an area where a well or production 141
facilities of a well are located within a municipal corporation or 142
within a township that has an unincorporated population of more 143
than five thousand in the most recent federal decennial census 144
prior to the issuance of the permit for the well or production 145
facilities.146

       (Z) "Well stimulation" or "stimulation of a well" means the 147
process of enhancing well productivity, including hydraulic 148
fracturing operations.149

       (AA) "Production operation" means site preparation, access 150
roads, drilling, well completion, well stimulation, well 151
operation, site reclamation, and well plugging. "Production 152
operation" also includes all of the following:153

       (1) The piping and equipment used for the production and 154
preparation of hydrocarbon gas or liquids for transportation or 155
delivery;156

       (2) The processes of extraction and recovery, lifting, 157
stabilization, treatment, separation, production processing, 158
storage, and measurement of hydrocarbon gas and liquids;159

       (3) The processes associated with production compression, gas 160
lift, gas injection, and fuel gas supply.161

       (BB) "Gathering" means the use of any pipeline or series of 162
pipelines to collect and transport natural gas from the 163
furthermost downstream point in a production operation to the 164
furthermost downstream point of the series of endpoints identified 165
as the end of a gathering line under the "Natural Gas Pipeline 166
Safety Act of 1968," 82 Stat. 720 (1968), 49. U.S.C. App. 1671 et 167
seq., as amended, and the regulations adopted under it, including, 168
without limitation, 49 C.F.R. part 192.169

       (CC) "Annular overpressurization" means the accumulation of 170
fluids within an annulus with sufficient pressure to allow 171
migration of annular fluids into underground sources of drinking 172
water.173

       (DD) "Idle and orphaned well" means a well for which a bond 174
has been forfeited or an abandoned well for which no money is 175
available to plug the well in accordance with this chapter and 176
rules adopted under it.177

       (EE) "Temporarily inactive well" means a well that has been 178
granted temporary inactive status under section 1509.062 of the 179
Revised Code.180

       (FF) "Material and substantial violation" means all of the 181
following:182

       (1) Failure to obtain a permit to drill, reopen, convert, 183
plugback, or plug a well under this chapter;184

       (2) Failure to obtain or maintain insurance coverage that is 185
required under this chapter;186

       (3) Failure to obtain or maintain a surety bond that is 187
required under this chapter;188

       (4) Failure to plug an abandoned well or idle and orphaned 189
well unless the well has been granted temporary inactive status 190
under section 1509.062 of the Revised Code or the chief has 191
approved another option concerning the abandoned well or idle and 192
orphaned well;193

       (5) Failure to restore a disturbed land surface as required 194
by section 1509.072 of the Revised Code;195

       (6) Failure to reimburse the oil and gas fund pursuant to a 196
final order issued under section 1509.071 of the Revised Code;197

       (7) Failure to comply with a final nonappealable order of the 198
chief issued under section 1509.04 of the Revised Code.199

       Sec. 1509.02.  There is hereby created in the department of200
natural resources the division of mineral resources management, 201
which shall be administered by the chief of the division of 202
mineral resources management. The division has sole and exclusive 203
authority to regulate the permitting, location, and spacing of oil 204
and gas wells within the state. The regulation of oil and gas 205
activities is a matter of general statewide interest that requires 206
uniform statewide regulation, and this chapter and rules adopted 207
under it constitute a comprehensive plan with respect to all 208
aspects of the locating, drilling, and operating of oil and gas 209
wells within this state, including site restoration and disposal 210
of wastes from those wells. Nothing in this section affects the 211
authority granted to the director of transportation and local 212
authorities in section 4513.34 of the Revised Code.213

       The chief shall not hold any other public office, nor shall214
the chief be engaged in any occupation or business that might215
interfere with or be inconsistent with the duties as chief.216

       All moneys collected by the chief pursuant to sections217
1509.06, 1509.061, 1509.062, 1509.071, 1509.13, 1509.22, and218
1509.221, 1509.222, 1509.34, 1509.50, and 1571.18, ninety per cent 219
of moneys received by the treasurer of state from the tax levied 220
in divisions (A)(5) and (6) of section 5749.02, all civil 221
penalties paid under section 1509.33, and, notwithstanding any 222
section of the Revised Code relating to the distribution or 223
crediting of fines for violations of the Revised Code, all fines 224
imposed under divisions (A) and (B) of section 1509.99 of the 225
Revised Code and fines imposed under divisions (C) and (D) of 226
section 1509.99 of the Revised Code for all violations prosecuted 227
by the attorney general and for violations prosecuted by 228
prosecuting attorneys that do not involve the transportation of 229
brine by vehicle shall be deposited into the state treasury to the 230
credit of the oil and gas well fund, which is hereby created. 231
Fines imposed under divisions (C) and (D) of section 1509.99 of 232
the Revised Code for violations prosecuted by prosecuting 233
attorneys that involve the transportation of brine by vehicle and 234
penalties associated with a compliance agreement entered into 235
pursuant to this chapter shall be paid to the county treasury of 236
the county where the violation occurred.237

       The fund shall be used solely and exclusively for the 238
purposes enumerated in division (B) of section 1509.071 of the 239
Revised Code, for the expenses of the division associated with 240
the administration of the "Natural Gas Policy Act of 1978," 92 241
Stat. 3358, 15 U.S.C. 3301, and for the division's other 242
functionsthis chapter and Chapter 1571. of the Revised Code and 243
rules adopted under them, and for expenses that are critical and 244
necessary for the protection of human health and safety and the 245
environment related to oil and gas production in this state. The 246
expenses of the division in excess of the moneys available in the 247
fund shall be paid from general revenue fund appropriations to 248
the department.249

       Sec. 1509.03.  The chief of the division of mineral resources 250
management shall adopt, rescind, and amend, in accordance with251
Chapter 119. of the Revised Code, rules for the administration, 252
implementation, and enforcement of this chapter. The rules shall 253
include an identification of the subjects that the chief shall 254
address when attaching terms and conditions to a permit with 255
respect to a well and production facilities of a well that are 256
located within an urbanized area. The subjects shall include all 257
of the following:258

        (A) Safety concerning the drilling or operation of a well;259

        (B) Protection of the public and private water supply;260

       (C) Location of surface facilities of a well;261

        (D) Fencing and screening of surface facilities of a well;262

        (E) Containment and disposal of drilling and production 263
wastes;264

        (F) Construction of access roads for purposes of the drilling 265
and operation of a well;266

       (G) Noise mitigation for purposes of the drilling of a well.267

       No person shall violate any rule of the chief adopted under 268
this chapter.269

       Prior to the issuance of a permit to drill a proposed well 270
that will be located within an urbanized area, the division of 271
mineral resources management shall conduct a site review to 272
identify and evaluate any site-specific terms and conditions that 273
may be attached to the permit.274

       Any order issuing, denying, or modifying a permit or notices 275
required to be made by the chief pursuant to this chapter shall be 276
made in compliance with Chapter 119. of the Revised Code, except 277
that personal service may be used in lieu of service by mail. 278
Every order issuing, denying, or modifying a permit under this 279
chapter and described as such shall be considered an adjudication 280
order for purposes of Chapter 119. of the Revised Code.281

       Where notice to the owners is required by this chapter, the 282
notice shall be given as prescribed by a rule adopted by the chief 283
to govern the giving of notices. SuchThe rule shall provide for 284
notice by publication except in those cases where other types of 285
notice are necessary in order to meet the requirements of the law.286

       The chief or the chief's authorized representative may at any 287
time enter upon lands, public or private, for the purpose of288
administration or enforcement of this chapter, the rules adopted289
or orders made thereunder, or terms or conditions of permits or 290
registration certificates issued thereunder and may examine and 291
copy records pertaining to the drilling, conversion, or operation 292
of a well for injection of fluids and logs required by division 293
(C) of section 1509.223 of the Revised Code. No person shall 294
prevent or hinder the chief or the chief's authorized 295
representative in the performance of official duties. If entry is 296
prevented or hindered, the chief or the chief's authorized 297
representative may apply for, and the court of common pleas may 298
issue, an appropriate inspection warrant necessary to achieve the 299
purposes of this chapter within the court's territorial 300
jurisdiction.301

       The chief may issue orders to enforce this chapter, rules302
adopted thereunder, and terms or conditions of permits issued303
thereunder. Any such order shall be considered an adjudication304
order for the purposes of Chapter 119. of the Revised Code. No305
person shall violate any order of the chief issued under this306
chapter. No person shall violate a term or condition of a permit307
or registration certificate issued under this chapter.308

       Orders of the chief denying, suspending, or revoking a309
registration certificate; approving or denying approval of an310
application for revision of a registered transporter's plan for311
disposal; or to implement, administer, or enforce division (A) of312
section 1509.224 and sections 1509.22, 1509.222, 1509.223,313
1509.225, and 1509.226 of the Revised Code pertaining to the314
transportation of brine by vehicle and the disposal of brine so315
transported are not adjudication orders for purposes of Chapter316
119. of the Revised Code. The chief shall issue such orders under 317
division (A) or (B) of section 1509.224 of the Revised Code, as 318
appropriate.319

       As used in this section, "urbanized area" means an area where 320
a well or production facilities of a well are located within a 321
municipal corporation or within a township that has an 322
unincorporated population of more than five thousand in the most 323
recent federal decennial census prior to the issuance of the 324
permit for the well or production facilities.325

       Sec. 1509.04.  The chief of the division of mineral resources 326
management, or the chief's authorized representatives, shall 327
enforce this chapter and the rules, terms and conditions of 328
permits and registration certificates, and orders adopted or329
issued pursuant thereto, except that any "peace officer," as330
defined in section 2935.01 of the Revised Code, may arrest for331
violations of this chapter involving transportation of brine by332
vehicle. The333

       The chief or the chief's authorized representative may issue 334
a citation to an owner for a violation of this chapter or rules 335
adopted under it, terms and conditions of a permit issued under 336
it, a registration certificate that is required under this 337
chapter, or orders issued under this chapter. A citation may be 338
in the form of a compliance notice or administrative order.339

       The chief may issue an order to initiate an enforcement 340
action for a material and substantial violation. In addition, the 341
chief may issue a suspension order for failure to comply with an 342
enforcement action for a material and substantial violation or 343
other violation. 344

       The chief may order the immediate suspension of drilling, 345
operating, or plugging activities that are related to a material 346
and substantial violation and suspend and revoke an unused permit 347
after finding that an owner is causing, engaging in, or 348
maintaining a condition or activity that the chief determines 349
presents an imminent danger to the health or safety of the 350
public or that results in or is likely to result in immediate 351
substantial damage to the natural resources of this state. The 352
chief may issue such an order without prior notification if 353
reasonable attempts to notify the owner have failed or if the 354
owner is currently in material breach of a prior enforcement 355
action, but in such an event notification shall be given as soon 356
thereafter as practical.357

       Not later than five days after the issuance of a suspension 358
order, the chief shall provide the owner an opportunity to be 359
heard and to present evidence that the condition or activity does 360
not present an imminent danger to the public health or safety or 361
is not likely to result in immediate substantial damage to 362
natural resources. If the chief, after considering evidence 363
presented by the owner, determines that the activities do not 364
present such a threat, the chief shall revoke the suspension 365
order. The owner may appeal a suspension order to the court 366
of common pleas of the county in which the activity that is the 367
subject of the order is located.368

       The chief also may issue a bond forfeiture order pursuant to 369
section 1509.071 of the Revised Code.370

       The chief may notify drilling contractors, transporters, 371
service companies, or other similar entities of the compliance 372
status of an owner.373

       If the owner fails to comply with a prior enforcement 374
action, the chief may issue a suspension order without prior 375
notification, but in such an event the chief shall give notice as 376
soon thereafter as practical. Not later than five calendar days 377
after the issuance of an order, the chief shall provide the owner378
an opportunity to be heard and to present evidence that required 379
records, reports, or logs have been submitted. If the chief, 380
after considering the evidence presented by the owner, determines 381
that the reporting requirements have been satisfied, the chief 382
shall revoke the suspension order. The owner may appeal a 383
suspension order to the court of common pleas of the county in 384
which the activity that is the subject of the suspension order is 385
located.386

       The prosecuting attorney of the county or the attorney387
general, upon the request of the chief, may apply to the court of388
common pleas in the county in which any of the provisions of this 389
chapter or any rules, terms or conditions of a permit or 390
registration certificate, or orders adopted or issued pursuant to 391
this chapter are being violated for a temporary restraining order, 392
preliminary injunction, or permanent injunction restraining any 393
person from such violation.394

       The chief may enter into compliance agreements.395

       Sec. 1509.05.  No person shall drill a new well, drill an 396
existing well any deeper, reopen a well, convert a well to any use 397
other than its original purpose, or plug back a well to a source 398
of supply different from the existing pool, without having a 399
permit to do so issued by the chief of the division of mineral 400
resources management, and until the original permit or a 401
photostatic copy thereof is posted or displayed in a conspicuous 402
and easily accessible place at the well site, with the name, 403
current address, and telephone number of the permit holder and the 404
telephone numbers for fire and emergency medical services405
maintained on the posted permit or copy. The permit or a copy 406
shall be continuously displayed in suchthat manner at all times 407
during the work authorized by the permit.408

       SuchA permit shall be issued by the chief in accordance with 409
this chapter and. A permit issued under this section for a well 410
that is or is to be located in an urbanized area shall be valid 411
for twelve months, and all other permits issued under this section 412
shall be valid for twenty-four months.413

       Sec. 1509.06. (A) An application for a permit to drill a new414
well, drill an existing well deeper, reopen a well, convert a well415
to any use other than its original purpose, or plug back a well to416
a different source of supply, including associated production 417
operations, shall be filed with the chief of the division of 418
mineral resources management upon such form as the chief419
prescribes and shall contain each of the following that is420
applicable:421

       (1) The name and address of the owner and, if a corporation,422
the name and address of the statutory agent;423

       (2) The signature of the owner or the owner's authorized424
agent. When an authorized agent signs an application, it shall be425
accompanied by a certified copy of the appointment as such agent.426

       (3) The names and addresses of all persons holding the427
royalty interest in the tract upon which the well is located or is428
to be drilled or within a proposed drilling unit;429

       (4) The location of the tract or drilling unit on which the430
well is located or is to be drilled identified by section or lot431
number, city, village, township, and county;432

       (5) Designation of the well by name and number;433

       (6) The geological formation to be tested or used and the434
proposed total depth of the well;435

       (7) The type of drilling equipment to be used;436

       (8) If the well is for the injection of a liquid, identity of 437
the geological formation to be used as the injection zone and the 438
composition of the liquid to be injected;439

       (9) For an application for a permit to drill a new well 440
within an urbanized area, a sworn statement that the applicant has 441
provided notice by regular mail of the application to the owner of 442
each occupied dwelling unitparcel of real property that is 443
located within five hundred feet of the surface location of the 444
well if the surface location will be less than five hundred feet 445
from the boundary of the drilling unit and more than fifteen 446
occupied dwelling units are located less than five hundred feet 447
from the surface location of the well, excluding any dwelling 448
that is located onparcel of real property all or any portion of 449
which is included in the drilling unit. The notice shall contain 450
a statement that an application has been filed with the division 451
of mineral resources management, identify the name of the 452
applicant and the proposed well location, include the name and 453
address of the division, and contain a statement that comments 454
regarding the application may be sent to the division. The notice 455
may be provided by hand delivery or regular mail. The identity of 456
the owners of occupied dwelling unitsparcels of real property457
shall be determined using the tax records of the municipal 458
corporation or county in which the dwelling unita parcel of real 459
property is located as of the date of the notice.460

       (10) A plan for restoration of the land surface disturbed by461
drilling operations. The plan shall provide for compliance with462
the restoration requirements of division (A) of section 1509.072463
of the Revised Code and any rules adopted by the chief pertaining464
to that restoration.465

       (11) A description by name or number of the county, township,466
and municipal corporation roads, streets, and highways that the467
applicant anticipates will be used for access to and egress from468
the well site;469

       (12) Such other relevant information as the chief prescribes470
by rule.471

       Each application shall be accompanied by a map, on a scale472
not smaller than four hundred feet to the inch, prepared by an473
Ohio registered surveyor, showing the location of the well and474
containing such other data as may be prescribed by the chief. If475
the well is or is to be located within the excavations and476
workings of a mine, the map also shall include the location of the477
mine, the name of the mine, and the name of the person operating478
the mine.479

       (B) The chief shall cause a copy of the weekly circular480
prepared by the division to be provided to the county engineer of 481
each county that contains active or proposed drilling activity. 482
The weekly circular shall contain, in the manner prescribed by the483
chief, the names of all applicants for permits, the location of484
each well or proposed well, the information required by division485
(A)(11) of this section, and any additional information the chief486
prescribes. In addition, the chief promptly shall transfer an 487
electronic copy or facsimile, or if those methods are not 488
available to a municipal corporation or township, a copy via 489
regular mail, of a drilling permit application to the clerk of the 490
legislative authority of the municipal corporation or to the clerk 491
of the township in which the well or proposed well is or is to be 492
located if the legislative authority of the municipal corporation 493
or the board of township trustees has asked to receive copies of 494
such applications and the appropriate clerk has provided the chief 495
an accurate, current electronic mailing address or facsimile 496
number, as applicable.497

       (C) The(1) Except as provided in division (C)(2) of this 498
section, the chief shall not issue a permit for at least ten days499
after the date of filing of the application for the permit 500
unless, upon reasonable cause shown, the chief waives that period 501
or a request for expedited review is filed under this section.502
However, the chief shall issue a permit within twenty-one days of503
the filing of the application unless the chief denies the504
application by order.505

       (2) If the location of a well or proposed well will be or is 506
within an urbanized area, the chief shall not issue a permit for 507
at least eighteen days after the date of filing of the application 508
for the permit unless, upon reasonable cause shown, the chief 509
waives that period or the chief at the chief's discretion grants a 510
request for an expedited review. However, the chief shall issue a 511
permit for a well or proposed well within an urbanized area within 512
thirty days of the filing of the application unless the chief 513
denies the application by order.514

       (D) An applicant may file a request with the chief for515
expedited review of a permit application if the well is not or is 516
not to be located in a gas storage reservoir or reservoir517
protective area, as "reservoir protective area" is defined in518
section 1571.01 of the Revised Code. If the well is or is to be519
located in a coal bearing township, the application shall be520
accompanied by the affidavit of the landowner prescribed in521
section 1509.08 of the Revised Code.522

       In addition to a complete application for a permit that meets523
the requirements of this section and the permit fee prescribed by524
this section, a request for expedited review shall be accompanied525
by a separate nonrefundable filing fee of fivetwo hundred fifty526
dollars. Upon the filing of a request for expedited review, the 527
chief shall cause the county engineer of the county in which the 528
well is or is to be located to be notified of the filing of the 529
permit application and the request for expedited review by 530
telephone or other means that in the judgment of the chief will 531
provide timely notice of the application and request. The chief 532
shall issue a permit within seven days of the filing of the533
request unless the chief denies the application by order. 534
Notwithstanding the provisions of this section governing expedited 535
review of permit applications, the chief may refuse to accept 536
requests for expedited review if, in the chief's judgment, the537
acceptance of the requests would prevent the issuance, within538
twenty-one days of their filing, of permits for which applications 539
are pending.540

       (E) A well shall be drilled and operated in accordance with 541
the plans, sworn statements, and other information submitted in 542
the approved application.543

       (F) The chief shall issue an order denying a permit if the544
chief finds that there is a substantial risk that the operation545
will result in violations of this chapter or rules adopted under 546
it that will present an imminent danger to public health or safety 547
or damage to the environment, provided that where the chief finds548
that terms or conditions to the permit can reasonably be expected549
to prevent such violations, the chief shall issue the permit550
subject to those terms or conditions, including, if applicable, 551
terms and conditions regarding subjects identified in rules 552
adopted under section 1509.03 of the Revised Code. The issuance of 553
a permit shall not be considered an order of the chief.554

       (G) Each application for a permit required by section 1509.05555
of the Revised Code, except an application to plug back an 556
existing well that is required by that section and an application 557
for a well drilled or reopened for purposes of section 1509.22 of 558
the Revised Code, also shall be accompanied by a nonrefundable fee 559
as follows:560

       (1) TwoFive hundred fifty dollars for a permit to conduct 561
activities in a township with a population of fewer than fiveten562
thousand;563

       (2) Five hundred dollars for a permit to conduct activities 564
in a township with a population of five thousand or more, but 565
fewer than ten thousand;566

       (3) Seven hundred fifty dollars for a permit to conduct 567
activities in a township with a population of ten thousand or 568
more, but fewer than fifteen thousand;569

       (4)(3) One thousand dollars for a permit to conduct 570
activities in either of the following:571

       (a) A township with a population of fifteen thousand or more;572

       (b) A municipal corporation regardless of population.573

       (4) If the application is for a permit that requires 574
mandatory pooling, an additional five thousand dollars.575

       For purposes of calculating fee amounts, populations shall be 576
determined using the most recent federal decennial census.577

       Each application for the revision or reissuance of a permit 578
shall be accompanied by a nonrefundable fee of two hundred fifty 579
dollars.580

       (H) The chief may order the immediate suspension of drilling,581
operating, or plugging activities after finding that any person is582
causing, engaging in, or maintaining a condition or activity that583
in the chief's judgment presents an imminent danger to public584
health or safety or results in or is likely to result in immediate585
substantial damage to natural resources or for nonpayment of a fee 586
required by this section. The chief may order the immediate587
suspension of the drilling or reopening of a well in a coal588
bearing township after determining that the drilling or reopening589
activities present an imminent and substantial threat to public590
health or safety or to miners' health or safety. Before issuing591
any such order, the chief shall notify the owner in such manner as592
in the chief's judgment would provide reasonable notification that593
the chief intends to issue a suspension order. The chief may issue 594
such an order without prior notification if reasonable attempts to595
notify the owner have failed, but in such an event notification596
shall be given as soon thereafter as practical. Within five597
calendar days after the issuance of the order, the chief shall598
provide the owner an opportunity to be heard and to present599
evidence that the condition or activity is not likely to result in 600
immediate substantial damage to natural resources or does not601
present an imminent danger to public health or safety or to 602
miners' health or safety, if applicable. In the case of603
activities in a coal bearing township, if the chief, after604
considering evidence presented by the owner, determines that the605
activities do not present such a threat, the chief shall revoke606
the suspension order. Notwithstanding any provision of this607
chapter, the owner may appeal a suspension order directly to the608
court of common pleas of the county in which the activity is609
located or, if in a coal bearing township, to the reclamation610
commission under section 1513.13 of the Revised CodeA permittee 611
or a permittee's authorized representative shall notify an 612
inspector from the division of mineral resources management at 613
least twenty-four hours, or another time period agreed to by the 614
chief's authorized representative, prior to the commencement of 615
drilling, reopening, converting, well stimulation, or plugback 616
operations.617

       Sec. 1509.062. (A)(1) The owner of a well that has not been 618
completed, a well that has not produced within one year after 619
completion, or an existing well that has no reported production 620
for two consecutive reporting periods as reported in accordance 621
with section 1509.11 of the Revised Code shall plug the well in 622
accordance with section 1509.12 of the Revised Code, obtain 623
temporary inactive well status for the well in accordance with 624
this section, or perform another activity regarding the well that 625
is approved by the chief of the division of mineral resources 626
management.627

       (2) If a well has a reported annual production that is less 628
than one hundred thousand cubic feet of natural gas or fifteen 629
barrels of crude oil, or a combination thereof, the chief may 630
require the owner of the well to submit an application for 631
temporary inactive well status under this section for the well.632

       (B) In order for the owner of a well to submit an application 633
for temporary inactive well status for the well under this 634
division, the owner and the well shall be in compliance with this 635
chapter and rules adopted under it, any terms and conditions of 636
the permit for the well, and applicable orders issued by the 637
chief. An application for temporary inactive status for a well 638
shall be submitted to the chief on a form prescribed and provided 639
by the chief and shall contain all of the following:640

       (1) The owner's name and address and, if the owner is a 641
corporation, the name and address of the corporation's statutory 642
agent;643

       (2) The signature of the owner or of the owner's authorized 644
agent. When an authorized agent signs an application, the 645
application shall be accompanied by a certified copy of the 646
appointment as such agent.647

       (3) The permit number assigned to the well. If the well has 648
not been assigned a permit number, the chief shall assign a permit 649
number to the well.650

       (4) A map, on a scale not smaller than four hundred feet to 651
the inch, that shows the location of the well and the tank 652
battery, that includes the latitude and longitude of the well, and 653
that contains all other data that are required by the chief;654

       (5) A demonstration that the well is of future utility and 655
that the applicant has a viable plan to utilize the well within a 656
reasonable period of time;657

       (6) A demonstration that the well poses no threat to the 658
health or safety of persons, property, or the environment;659

       (7) Any other relevant information that the chief prescribes 660
by rule.661

       The chief may waive any of the requirements established in 662
divisions (B)(1) to (6) of this section if the division of mineral 663
resources management possesses a current copy of the information 664
or document that is required in the applicable division.665

       (C) Upon receipt of an application for temporary inactive 666
well status, the chief shall review the application and shall 667
either deny the application by issuing an order or approve the 668
application. The chief shall approve the application only if the 669
chief determines that the well that is the subject of the 670
application poses no threat to the health or safety of persons, 671
property, or the environment. If the chief approves the 672
application, the chief shall notify the applicant of the chief's 673
approval. Upon receipt of the chief's approval, the owner shall 674
shut in the well and empty all liquids and gases from all storage 675
tanks, pipelines, and other equipment associated with the well. In 676
addition, the owner shall maintain the well, other equipment 677
associated with the well, and the surface location of the well in 678
a manner that prevents hazards to the health and safety of people 679
and the environment. The owner shall inspect the well at least 680
every six months and submit to the chief within fourteen days 681
after the inspection a record of inspection on a form prescribed 682
and provided by the chief.683

       (D) Not later than thirty days prior to the expiration of 684
temporary inactive well status or a renewal of temporary inactive 685
well status approved by the chief for a well, the owner of the 686
well may submit to the chief an application for renewal of the 687
temporary inactive well status on a form prescribed and provided 688
by the chief. The application shall include a detailed plan that 689
describes the ultimate disposition of the well, the time frames 690
for that disposition, and any other information that the chief 691
determines is necessary. The chief shall either deny an 692
application by order or approve the application. If the chief 693
approves the application, the chief shall notify the owner of the 694
well of the chief's approval.695

       (E) An application for temporary inactive well status shall 696
be accompanied by a nonrefundable fee of one hundred dollars. An 697
application for a renewal of temporary inactive well status shall 698
be accompanied by a nonrefundable fee of two hundred fifty dollars 699
for the first renewal and five hundred dollars for each subsequent 700
renewal.701

       (F) After a third renewal, the chief may require an owner to 702
provide a surety bond in an amount not to exceed ten thousand 703
dollars for each of the owner's wells that has been approved by 704
the chief for temporary inactive well status.705

       (G) Temporary inactive well status approved by the chief 706
expires one year after the date of approval of the application for 707
temporary inactive well status or production from the well 708
commences, whichever occurs sooner. In addition, a renewal of a 709
temporary inactive well status expires one year after the 710
expiration date of the initial temporary inactive well status or 711
one year after the expiration date of the previous renewal of the 712
temporary inactive well status, as applicable, or production from 713
the well commences, whichever occurs sooner.714

       (H) The owner of a well that has been approved by the chief 715
for temporary inactive well status may commence production from 716
the well at any time. Not later than sixty days after the 717
commencement of production from such a well, the owner shall 718
notify the chief of the commencement of production.719

       (I) This chapter and rules adopted under it, any terms and 720
conditions of the permit for a well, and applicable orders issued 721
by the chief apply to a well that has been approved by the chief 722
for temporary inactive well status or renewal of that status.723

       Sec. 1509.07.  An owner of any well, except an exempt724
Mississippian well or an exempt domestic well, shall obtain 725
liability insurance coverage from a company authorized to do 726
business in this state in an amount of not less than three hundred 727
thousandone million dollars bodily injury coverage and three 728
hundred thousand dollars property damage coverage to pay damages 729
for injury to persons or damage to property caused by the 730
drilling, operation, or plugging of all the owner's wells in this 731
state. However, if any well is located within an urbanized area, 732
the owner shall obtain liability insurance coverage in an amount 733
of not less than three million dollars for bodily injury coverage 734
and property damage coverage to pay damages for injury to persons 735
or damage to property caused by the drilling, operation, or 736
plugging of all of the owner's wells in this state. The owner 737
shall maintain thatthe coverage until all the owner's wells are 738
plugged and abandoned as required by lawor are transferred to an 739
owner who has obtained insurance as required under this section 740
and who is not under a notice of material and substantial 741
violation or under a suspension order. The owner shall provide 742
proof of liability insurance coverage to the chief of the division 743
of mineral resources management upon request. Upon failure of the744
owner to provide that proof when requested, the chief may order 745
the suspension of any outstanding permits and operations of the 746
owner until the owner provides proof of the required insurance 747
coverage.748

       Except as otherwise provided in this section, an owner of any749
well, before being issued a permit under section 1509.06 of the 750
Revised Code or before operating or producing from a well, shall 751
execute and file with the division of mineral resources management 752
a surety bond conditioned on compliance with the restoration 753
requirements of section 1509.072, the plugging requirements of 754
section 1509.12, the permit provisions of section 1509.13 of the 755
Revised Code, and all rules and orders of the chief relating 756
thereto, in an amount set by rule of the chief.757

       The owner may deposit with the chief, instead of a surety758
bond, cash in an amount equal to the surety bond as prescribed759
pursuant to this section or negotiable certificates of deposit or760
irrevocable letters of credit, issued by any bank organized or 761
transacting business in this state or by any savings and loan762
association as defined in section 1151.01 of the Revised Code,763
having a cash value equal to or greater than the amount of the764
surety bond as prescribed pursuant to this section. Cash or765
certificates of deposit shall be deposited upon the same terms as 766
those upon which surety bonds may be deposited. If certificates of 767
deposit are deposited with the chief instead of a surety bond, the768
chief shall require the bank or savings and loan association that 769
issued any such certificate to pledge securities of a cash value 770
equal to the amount of the certificate that is in excess of the 771
amount insured by any of the agencies and instrumentalities 772
created under the "Federal Deposit Insurance Act," 64 Stat. 873 773
(1950), 12 U.S.C. 1811, as amended, and regulations adopted under 774
it, including at least the federal deposit insurance corporation, 775
bank insurance fund, and savings association insurance fund. The 776
securities shall be security for the repayment of the certificate 777
of deposit.778

       Immediately upon a deposit of cash, certificates of deposit, 779
or letters of credit with the chief, the chief shall deliver them 780
to the treasurer of state who shall hold them in trust for the781
purposes for which they have been deposited.782

       Instead of a surety bond, the chief may accept proof of783
financial responsibility consisting of a sworn financial statement 784
showing a net financial worth within this state equal to twice the 785
amount of the bond for which it substitutes and, as may be 786
required by the chief, a list of producing properties of the owner 787
within this state or other evidence showing ability and intent to 788
comply with the law and rules concerning restoration and plugging 789
that may be required by rule of the chief. The owner of an exempt 790
domestic or exempt Mississippian well is not required to file 791
scheduled updates of the financial documents, but shall file 792
updates of those documents if requested to do so by the chief. The793
owner of a nonexempt domestic or nonexempt Mississippian well 794
shall file updates of the financial documents in accordance with a 795
schedule established by rule of the chief. The chief, upon 796
determining that an owner for whom the chief has accepted proof of 797
financial responsibility instead of bond cannot demonstrate 798
financial responsibility, shall order that the owner execute and 799
file a bond or deposit cash, certificates of deposit, or 800
irrevocable letters of credit as required by this section for the801
wells specified in the order within ten days of receipt of the 802
order. If the order is not complied with, all wells of the owner 803
that are specified in the order and for which no bond is filed or 804
cash, certificates of deposit, or letters of credit are deposited 805
shall be plugged. No owner shall fail or refuse to plug such a 806
well. Each day on which such a well remains unplugged thereafter 807
constitutes a separate offense.808

       The surety bond provided for in this section shall be809
executed by a surety company authorized to do business in this810
state.811

       The chief shall not approve any bond until it is personally812
signed and acknowledged by both principal and surety, or as to813
either by the principal's or surety's attorney in fact, with a 814
certified copy of the power of attorney attached thereto. The 815
chief shall not approve a bond unless there is attached a 816
certificate of the superintendent of insurance that the company is 817
authorized to transact a fidelity and surety business in this 818
state.819

       All bonds shall be given in a form to be prescribed by the820
chief and shall run to the state as obligee.821

       An owner of an exempt Mississippian well or an exempt822
domestic well, in lieu of filing a surety bond, cash in an amount 823
equal to the surety bond, certificates of deposit, irrevocable 824
letters of credit, or a sworn financial statement, may file a 825
one-time fee of fifty dollars, which shall be deposited in the oil 826
and gas well plugging fund created in section 1509.071 of the 827
Revised Code.828

       An owner, operator, producer, or other person shall not 829
operate a well or produce from a well at any time if the owner, 830
operator, producer, or other person has not satisfied the 831
requirements established in this section.832

       Sec. 1509.071.  (A) When the chief of the division of mineral 833
resources management finds that an owner has failed to comply with 834
the restoration requirements of section 1509.072, plugging 835
requirements of section 1509.12, or permit provisions of section 836
1509.13 of the Revised Code, or rules and orders relating thereto, 837
the chief shall make a finding of that fact and declare any surety 838
bond filed to ensure compliance with those sections and rules 839
forfeited in the amount set by rule of the chief. The chief840
thereupon shall certify the total forfeiture to the attorney841
general, who shall proceed to collect the amount of the842
forfeiture. In addition, the chief may require an owner, operator, 843
producer, or other person who forfeited a surety bond to post a 844
new surety bond in the amount of fifteen thousand dollars for a 845
single well, thirty thousand dollars for two wells, or fifty 846
thousand dollars for three or more wells.847

       In lieu of total forfeiture, the surety or owner, at itsthe 848
surety's or owner's option, may cause the well to be properly 849
plugged and abandoned and the area properly restored or pay to the 850
treasurer of state the cost of plugging and abandonment.851

       (B) All moneys collected because of forfeitures of bonds as852
provided in this section shall be deposited in the state treasury853
to the credit of the oil and gas well fund created in section854
1509.02 of the Revised Code. The fund855

       The chief annually shall be expended by the chiefspend not 856
less than fourteen per cent of the revenue credited to the fund 857
during the previous fiscal year for the following purposes in 858
addition to the other purposes specified in that section:859

       (1) In accordance with division (D) of this section, to plug860
idle and orphaned wells or to restore the land surface properly as861
required in section 1509.072 of the Revised Code for which the 862
bonds have been forfeited, for abandoned wells for which no funds 863
are available to plug the wells in accordance with this chapter, 864
or to use abandoned wells for the injection of oil or gas865
production wastes;866

       (2) In accordance with division (E) of this section, to867
correct conditions that the chief reasonably has determined are868
causing imminent health or safety risks at an idle and orphaned 869
well or a well for which the owner cannot be contacted in order to 870
initiate a corrective action within a reasonable period of time as 871
determined by the chief.872

       Expenditures from the fund shall be made only for lawful873
purposes. In addition, expenditures from the fund shall not be 874
made to purchase real property or to remove a dwelling in order to 875
access a well.876

       (C)(1) Upon determining that the owner of a well has failed877
to properly plug and abandon it or to properly restore the land878
surface at the well site in compliance with the applicable879
requirements of this chapter and applicable rules adopted and880
orders issued under it or that a well is an abandoned well for881
which no funds are available to plug the well in accordance with882
this chapter, the chief shall do all of the following:883

       (a) Determine from the records in the office of the county884
recorder of the county in which the well is located the identity885
of the owner of the land on which the well is located, the886
identity of the owner of the oil or gas lease under which the well887
was drilled or the identity of each person owning an interest in888
the lease, and the identities of the persons having legal title889
to, or a lien upon, any of the equipment appurtenant to the well;890

       (b) Mail notice to the owner of the land on which the well is 891
located informing the landowner that the well is to be plugged. If 892
the owner of the oil or gas lease under which the well was drilled 893
is different from the owner of the well or if any persons other 894
than the owner of the well own interests in the lease, the chief 895
also shall mail notice that the well is to be plugged to the owner 896
of the lease or to each person owning an interest in the lease, as 897
appropriate.898

       (c) Mail notice to each person having legal title to, or a899
lien upon, any equipment appurtenant to the well, informing the900
person that the well is to be plugged and offering the person the901
opportunity to plug the well and restore the land surface at the902
well site at the person's own expense in order to avoid forfeiture903
of the equipment to this state.904

       (2) If none of the persons described in division (C)(1)(c) of 905
this section plugs the well within sixty days after the mailing of 906
the notice required by that division, all equipment appurtenant to 907
the well is hereby declared to be forfeited to this state without 908
compensation and without the necessity for any action by the state 909
for use to defray the cost of plugging and abandoning the well and 910
restoring the land surface at the well site.911

       (D) Expenditures from the fund for the purpose of division912
(B)(1) of this section shall be made in accordance with either of913
the following:914

       (1) The expenditures may be made pursuant to contracts915
entered into by the chief with persons who agree to furnish all of916
the materials, equipment, work, and labor as specified and917
provided in such a contract for activities associated with the 918
restoration or plugging of a well as determined by the chief. The 919
activities may include excavation to uncover a well, geophysical 920
methods to locate a buried well when clear evidence of leakage 921
from the well exists, cleanout of wellbores to remove material 922
from a failed plugging of a well, plugging operations, 923
installation of vault and vent systems, including associated 924
engineering certifications and permits, restoration of property, 925
and repair of damage to property that is caused by such 926
activities. Expenditures shall not be used for salaries, 927
maintenance, equipment, or other administrative purposes, except 928
for costs directly attributed to the plugging of an idle and 929
orphaned well. Agents or employees of persons contracting with 930
the chief for thea restoration,or plugging, and injection 931
projectsproject may enter upon any land, public or private, on932
which the well is located for the purpose of performing the work.933
Prior to such entry, the chief shall give to the following 934
persons written notice of the existence of a contract for a 935
project to restore,or plug, or inject oil or gas production 936
wastes into a well, the names of the persons with whom the 937
contract is made, and the date that the project will commence: the 938
owner of the well, the owner of the land upon which the well is 939
located, the owner or agents of adjoining land, and, if the well 940
is located in the same township as or in a township adjacent to 941
the excavations and workings of a mine and the owner or lessee of 942
that mine has provided written notice identifying those townships 943
to the chief at any time during the immediately preceding three 944
years, the owner or lessee of the mine.945

       (2)(a) The owner of the land on which a well is located who946
has received notice under division (C)(1)(b) of this section may947
plug the well and be reimbursed by the division for the reasonable948
cost of plugging the well. In order to plug the well, the949
landowner shall submit an application to the chief on a form950
prescribed by the chief and approved by the technical advisory951
council on oil and gas created in section 1509.38 of the Revised952
Code. The application, at a minimum, shall require the landowner953
to provide the same information as is required to be included in954
the application for a permit to plug and abandon under section955
1509.13 of the Revised Code. The application shall be accompanied956
by a copy of a proposed contract to plug the well prepared by a957
contractor regularly engaged in the business of plugging oil and958
gas wells. The proposed contract shall require the contractor to959
furnish all of the materials, equipment, work, and labor necessary960
to plug the well properly and shall specify the price for doing961
the work, including a credit for the equipment appurtenant to the962
well that was forfeited to the state through the operation of963
division (C)(2) of this section. Expenditures under division 964
(D)(2)(a) of this section shall be consistent with the 965
expenditures for activities described in division (D)(1) of this 966
section. The application also shall be accompanied by the permit 967
fee required by section 1509.13 of the Revised Code unless the 968
chief, in the chief's discretion, waives payment of the permit 969
fee. The application constitutes an application for a permit to 970
plug and abandon the well for the purposes of section 1509.13 of 971
the Revised Code.972

       (b) Within thirty days after receiving an application and973
accompanying proposed contract under division (D)(2)(a) of this974
section, the chief shall determine whether the plugging would975
comply with the applicable requirements of this chapter and976
applicable rules adopted and orders issued under it and whether977
the cost of the plugging under the proposed contract is978
reasonable. If the chief determines that the proposed plugging979
would comply with those requirements and that the proposed cost of980
the plugging is reasonable, the chief shall notify the landowner981
of that determination and issue to the landowner a permit to plug982
and abandon the well under section 1509.13 of the Revised Code.983
Upon approval of the application and proposed contract, the chief984
shall transfer ownership of the equipment appurtenant to the well985
to the landowner. The chief may disapprove an application986
submitted under division (D)(2)(a) of this section if the chief987
determines that the proposed plugging would not comply with the988
applicable requirements of this chapter and applicable rules989
adopted and orders issued under it, that the cost of the plugging990
under the proposed contract is unreasonable, or that the proposed991
contract is not a bona fide, arms length contract.992

       (c) After receiving the chief's notice of the approval of the 993
application and permit to plug and abandon a well under division 994
(D)(2)(b) of this section, the landowner shall enter into the995
proposed contract to plug the well. The plugging shall be996
completed within one hundred eight days after the landowner997
receives the notice of approval and permit.998

       (d) Upon determining that the plugging has been completed999
within the time required by division (D)(2)(c) of this section and1000
has been completed in compliance with the applicable requirements1001
of this chapter and applicable rules adopted and orders issued1002
under it, the chief shall reimburse the landowner for the cost of1003
the plugging as set forth in the proposed contract approved by the1004
chief. The reimbursement shall be paid from the oil and gas well1005
fund. If the chief determines that the plugging was not completed1006
within the required time or was not completed in accordance with1007
the applicable requirements, the chief shall not reimburse the1008
landowner for the cost of the plugging, and the landowner or the1009
contractor, as applicable, promptly shall transfer back to this1010
state title to and possession of the equipment appurtenant to the1011
well that previously was transferred to the landowner under1012
division (D)(2)(b) of this section. If any such equipment was1013
removed from the well during the plugging and sold, the landowner1014
shall pay to the chief the proceeds from the sale of the1015
equipment, and the chief promptly shall pay the moneys so received1016
to the treasurer of state for deposit into the oil and gas well1017
fund.1018

       The chief may establish an annual limit on the number of1019
wells that may be plugged under division (D)(2) of this section or1020
an annual limit on the expenditures to be made under that1021
division.1022

       As used in division (D)(2) of this section, "plug" and1023
"plugging" include the plugging of the well and the restoration of1024
the land surface disturbed by the plugging.1025

       (E) Expenditures from the oil and gas well fund for the1026
purpose of division (B)(2) of this section may be made pursuant to1027
contracts entered into by the chief with persons who agree to1028
furnish all of the materials, equipment, work, and labor as1029
specified and provided in such a contract. The competitive bidding1030
requirements of Chapter 153. of the Revised Code do not apply if 1031
the chief reasonably determines that correction of the applicable 1032
health or safety risk requires immediate action. The chief, 1033
designated representatives of the chief, and agents or employees 1034
of persons contracting with the chief under this division may 1035
enter upon any land, public or private, for the purpose of 1036
performing the work.1037

       (F) Contracts entered into by the chief under this section1038
are not subject to either of the following:1039

       (1) Chapter 4115. of the Revised Code;1040

       (2) Section 153.54 of the Revised Code, except that the1041
contractor shall obtain and provide to the chief as a bid guaranty1042
a surety bond or letter of credit in an amount equal to ten per1043
cent of the amount of the contract.1044

       (G) The owner of land on which a well is located who has1045
received notice under division (C)(1)(b) of this section, in lieu1046
of plugging the well in accordance with division (D)(2) of this1047
section, may cause ownership of the well to be transferred to an1048
owner who is lawfully doing business in this state and who has met1049
the financial responsibility requirements established under1050
section 1509.07 of the Revised Code, subject to the approval of1051
the chief. The transfer of ownership also shall be subject to the1052
landowner's filing the appropriate forms required under this1053
chaptersection 1509.31 of the Revised Code and providing to the 1054
chief sufficient information to demonstrate the landowner's or 1055
owner's right to produce a formation or formations. That 1056
information may include a deed, a lease, or other documentation of 1057
ownership or property rights.1058

       The chief shall approve or disapprove the transfer of1059
ownership of the well. If the chief approves the transfer, the1060
owner is responsible for operating the well in accordance with1061
this chapter and rules adopted under it, including, without1062
limitation, all of the following:1063

       (1) Filing an application with the chief under section1064
1509.06 of the Revised Code if the owner intends to drill deeper1065
or produce a formation that is not listed in the records of the1066
division for that well;1067

       (2) Taking title to and possession of the equipment1068
appurtenant to the well that has been identified by the chief as1069
having been abandoned by the former owner;1070

       (3) Complying with all applicable requirements that are1071
necessary to drill deeper, plug the well, or plug back the well.1072

       (H) The chief shall issue an order that requires the owner of 1073
a well to pay the actual documented costs of a corrective action 1074
that is described in division (B)(2) of this section concerning 1075
the well. The chief shall transmit the money so recovered to the 1076
treasurer of state who shall deposit the money in the state 1077
treasury to the credit of the oil and gas well fund.1078

       Sec. 1509.072.  No oil or gas well owner or agent of an oil 1079
or gas well owner shall fail to restore the land surface within 1080
the area disturbed in siting, drilling, completing, and producing 1081
the well as required in this section.1082

       (A) Within five monthsfourteen days after the date upon 1083
which the surface drilling of a well is commencedcompleted to 1084
total depth in an urbanized area and within two months after the 1085
date upon which the drilling of a well is completed in all other 1086
areas, the owner or the owner's agent, in accordance with the1087
restoration plan filed under division (A)(10) of section 1509.06 1088
of the Revised Code, shall fill all the pits for containing brine,1089
and other waste substances resulting, obtained, or produced in 1090
connection with exploration or drilling for, or production of, oil 1091
or gas, or oil that are not required by other state or federal law 1092
or regulation, and remove all concrete bases, drilling supplies,1093
and drilling equipment. Within nineUnless the chief of the 1094
division of mineral resources management approves a longer time 1095
period, within three months after the date upon which the surface 1096
drilling of a well is commenced in an urbanized area and within 1097
six months after the date upon which the surface drilling of a 1098
well is commenced in all other areas, the owner or the owner's 1099
agent shall grade or terrace and plant, seed, or sod the area 1100
disturbed that is not required in production of the well where 1101
necessary to bind the soil and prevent substantial erosion and 1102
sedimentation. If the chief of the division of mineral resources 1103
management finds that a pit used for containing brine, other waste 1104
substances, or oil is in violation of section 1509.22 of the 1105
Revised Code or rules adopted or orders issued under it, the chief 1106
may require the pit to be emptied and closed before expiration of 1107
the five-monthfourteen-day or three-month restoration period.1108

       (B) Within three months after a well that has produced oil or 1109
gas is plugged in an urbanized area and within six months after a 1110
well that has produced oil or gas is plugged in all other areas, 1111
or after the plugging of a dry hole, unless the chief approves a 1112
longer time period, the owner or the owner's agent shall remove 1113
all production and storage structures, supplies, and equipment, 1114
and any oil, salt water, and debris, and fill any remaining 1115
excavations. Within that period the owner or the owner's agent 1116
shall grade or terrace and plant, seed, or sod the area disturbed 1117
where necessary to bind the soil and prevent substantial erosion 1118
and sedimentation.1119

       The owner shall be released from responsibility to perform1120
any or all restoration requirements of this section on any part or 1121
all of the area disturbed upon the filing of a request for a1122
waiver with and obtaining the written approval of the chief, which 1123
request shall be signed by the surface owner to certify the1124
approval of the surface owner of the release sought. The chief1125
shall approve the request unless the chief finds upon inspection 1126
that the waiver would be likely to result in substantial damage to1127
adjoining property, substantial contamination of surface or1128
underground water, or substantial erosion or sedimentation.1129

       The chief, by order, may shorten the time periods provided1130
for under division (A) or (B) of this section if failure to1131
shorten the periods would be likely to result in damage to public1132
health or the waters or natural resources of the state.1133

       The chief, upon written application by an owner or an owner's 1134
agent showing reasonable cause, may extend the period within which1135
restoration shall be completed under divisions (A) and (B) of this 1136
section, but not to exceed a further six-month period, except 1137
under extraordinarily adverse weather conditions or when essential 1138
equipment, fuel, or labor is unavailable to the owner or the 1139
owner's agent.1140

       If the chief refuses to approve a request for waiver or1141
extension, the chief shall do so by order.1142

       Sec. 1509.10. (A) Any person drilling within the state 1143
shall, within thirtysixty days after the completion of the well1144
drilling operations to the proposed total depth or after a 1145
determination that a well is a dry or lost hole, file with the 1146
division of mineral resources management all wireline electric 1147
logs and an accurate log designatingwell completion record on a 1148
form that is approved by the chief of the division of mineral 1149
resources management that designates:1150

       (A)(1) The purpose for which the well was drilled;1151

       (B)(2) The character, depth, and thickness of geological1152
formationsunits encountered, including fresh water, coal seams,1153
mineral beds, associated fluids such as fresh water, brine, and 1154
crude oil and, natural gas bearing formations, and sour gas, if 1155
such seams, beds, or fluids are known;1156

       (C)(3) The dates on which drilling operations were commenced 1157
and completed;1158

       (4) The types of drilling tools used and the name of the 1159
person that drilled the well;1160

       (5) The length in feet of the various sizes of casing and1161
tubing used in drilling the well, the amount removed after1162
completion, the type and setting depth of each packer, and all1163
other data relating to muddingcementing in the annular space 1164
behind such casing or tubing, and data indicating completion as a 1165
dry, gas, oil, combination oil and gas, brine injection, or 1166
artificial brine well or a stratigraphic test;1167

       (D)(6) The number of perforations in the casing and the 1168
intervals of the perforations;1169

       (7) The elevation above mean sea level of the point from1170
which the depth measurements were made, stating also the height of 1171
the point above ground level at the well, the total depth of the 1172
well, and the deepest geological unit that was penetrated in the 1173
drilling of the well;1174

       (8) If applicable, the type, volume, and concentration of 1175
acid, and the date on which acid was used in acidizing the well;1176

       (9) If applicable, the type and volume of fluid used to 1177
stimulate the reservoir of the well, the reservoir breakdown 1178
pressure, the method used for the containment of fluids recovered 1179
from the fracturing of the well, the methods used for the 1180
containment of fluids when pulled from the wellbore from swabbing 1181
the well, the average pumping rate of the well, and the name of 1182
the person that performed the well stimulation. In addition, the 1183
owner shall include a copy of the log from the stimulation of the 1184
well, a copy of the invoice for each of the procedures and methods 1185
described in division (A)(9) of this section that were used on a 1186
well, and a copy of the pumping pressure and rate graphs. However, 1187
the owner may redact from the copy of each invoice that is 1188
required to be included under division (A)(9) of this section the 1189
costs of and charges for the procedures and methods described in 1190
division (A)(9) of this section that were used on a well.1191

       (10) The name of the company that performed the logging of 1192
the well and the types of wireline electric logs performed on the 1193
well.1194

       The logwell completion record shall be submitted in 1195
duplicate. The first copy shall be retained as a permanent record 1196
in the files of the division, and the second copy shall be 1197
transmitted by the chief of the division of mineral resources 1198
management to the division of geological survey.1199

       Any(B)(1) Not later than sixty days after the completion of 1200
the drilling operations to the proposed total depth, the owner 1201
shall file all wireline electric log, or radioactivity log, or 1202
other geophysical log, if made in connection with the well shall 1203
be filedlogs with the division of mineral resources management1204
and the chief shall transmit such logs electronically, if 1205
available, to the division of geological survey. Such logs may 1206
be retained by the owner for a period of not more than six 1207
months, or such additional time as may be granted by the chief in 1208
writing, after the completion of the well substantially to the 1209
depth shown in the application required by section 1509.06 of the 1210
Revised Code.1211

       (2) If a well is not completed within sixty days after the 1212
completion of drilling operations, the owner shall file with the 1213
division a supplemental well completion record that includes all 1214
of the information required under this section within sixty days 1215
after the completion of the well.1216

       (C) Upon request in writing by the chief of the division of1217
geological survey prior to the beginning of drilling of the well,1218
the person drilling the well shall make available a complete set1219
of cuttings accurately identified as to depth.1220

       (D) The form of the logwell completion record required by 1221
this section shall be one that has been approved by the chief of 1222
the division of mineral resources management and the chief of the 1223
division of geological survey. The filing of a log as required by 1224
this section fulfills the requirement of filing a log with the 1225
chief of the division of geological survey in section 1505.04 of 1226
the Revised Code.1227

       Sec. 1509.11.  The owner of any well producing or capable of1228
producing oil or gas shall file with the chief of the division of1229
mineral resources management, on or before the firstthirty-first1230
day of March, a statement of production of oil, gas, and brine for1231
the last preceding calendar year in such form as the chief may1232
prescribe. An owner that has more than one hundred wells in this 1233
state shall submit electronically the statement of production in a 1234
format that is approved by the chief. The chief shall include on 1235
the form, at the minimum, a request for the submittal of the 1236
information that a person who is regulated under this chapter is 1237
required to submit under the "Emergency Planning and Community 1238
Right-To-Know Act of 1986," 100 Stat. 1728, 42 U.S.C.A. 11001, and 1239
regulations adopted under it, and that the division does not 1240
obtain through other reporting mechanisms.1241

       Sec. 1509.12.  No owner of any well knowingly shall construct 1242
a well, or permit defective casing or tubing in sucha well to 1243
leak fluids or gasgases, that may cause damage to other permeable 1244
strata, underground sources of drinking water, or the surface of 1245
the land or that threatens the public health and safety. Upon 1246
notice fromthe discovery that the casing or tubing in a well is 1247
defective or that a well was not adequately constructed, the owner 1248
of the well shall notify the chief of the division of mineral 1249
resources management within twenty-four hours of the discovery, 1250
suchand the owner shall immediately repair suchthe tubing or 1251
casing, correct the construction inadequacies, or plug and 1252
abandon suchthe well.1253

       Unless written permission is granted by the chief, any well1254
that is or becomes incapable of producing oil or gas in1255
commercial quantities shall be plugged, but no well shall be1256
required to be plugged under this section that is being used to1257
produce oil or gas for domestic purposes, or that is being1258
lawfully used for a purpose other than production of oil or gas.1259
When the chief finds that a well should be plugged, the chief1260
shall notify the owner to that effect by order in writing and 1261
shall specify in suchthe order a reasonable time within which to 1262
comply. No owner shall fail or refuse to plug a well within the 1263
time specified in the order. Each day on which such a well 1264
remains unplugged thereafter constitutes a separate offense.1265

       Where the plugging method prescribed by rules adopted1266
pursuant to section 1509.15 of the Revised Code cannot be applied1267
or if applied would be ineffective in carrying out the protection1268
that the law is meant to give, the chief, by order, may designate 1269
a different method of plugging. The abandonment report shall show1270
the manner in which the well was plugged.1271

       In case of oil or gas wells abandoned prior to September 1,1272
19511978, the board of county commissioners of the county in 1273
which suchthe wells are located may submit to the electors of the 1274
county the question of establishing a special fund, by special1275
general levy, by general bond issue, or out of current funds, 1276
which shall be approved by a majority of the electors voting upon 1277
suchthat question for the purpose of plugging suchthe wells. The 1278
fund shall be administered by the board and the plugging of oil 1279
and gas wells shall be under the supervision of the chief, and1280
the board shall let contracts for suchthat purpose, provided 1281
that suchthe fund shall not be used for the purpose of plugging 1282
oil and gas wells that were abandoned subsequent to September 1,1283
19511978.1284

       Sec. 1509.13. (A) No person shall plug and abandon a well1285
without having a permit to do so issued by the chief of the1286
division of mineral resources management. The permit shall be 1287
issued by the chief in accordance with this chapter, and the chief 1288
may establish by ruleshall be valid for a period of time1289
twenty-four months from the date of issue during which permits 1290
will be valid. Application by the owner for a permit to plug and 1291
abandon shall be filed as many days in advance as will be 1292
necessary for a mineral resources inspector or, if the well is1293
located in a coal bearing township, both a deputy mine inspector 1294
and a mineral resources inspector to be present at the plugging. 1295
The application shall be filed with the chief upon a form that the 1296
chief prescribes and shall contain the following information:1297

       (A)(1) The name and address of the owner;1298

       (B)(2) The signature of the owner or the owner's authorized1299
agent. When an authorized agent signs an application, it shall be1300
accompanied by a certified copy of the appointment as that agent.1301

       (C)(3) The location of the well identified by section or lot1302
number, city, village, township, and county;1303

       (D)(4) Designation of well by name and number;1304

       (E)(5) The total depth of the well to be plugged;1305

       (F)(6) The date and amount of last production from the well;1306

       (G)(7) Other data that the chief may require.1307

       If oil or gas has been produced from the well, the1308
application shall be accompanied by a fee of two hundred fifty 1309
dollars. If a new dry well has been drilled in accordance with law 1310
and the permit is still valid, the permit holder may receive 1311
approval to plug the well from a mineral resources inspector or, 1312
if the well is located in a coal bearing township, both a deputy 1313
mine inspector and a mineral resources inspector so that the well 1314
can be plugged and abandoned without undue delay. Unless waived by 1315
a mineral resources inspector, the owner of a well or the owner's 1316
authorized representative shall notify a mineral resources 1317
inspector at least twenty-four hours prior to the commencement of 1318
the plugging of a well. No well shall be plugged and abandoned1319
without a mineral resources inspector present unless permission1320
has been granted by the chief. The owner of thea well that has 1321
produced oil or gas shall give written notice at the same time to 1322
the owner of the land upon which the well is located, the owners 1323
or agents of adjoining land, adjoining well owners or agents, and, 1324
ifand to all lessors that receive gas from the well pursuant to a 1325
lease agreement. If the well penetrates or passes within one 1326
hundred feet of the excavations and workings of a mine, the owner 1327
of the well shall give written notice to the owner or lessee of 1328
that mine, of the well owner's intention to abandon the well and 1329
of the time when the well owner will be prepared to commence 1330
plugging it.1331

       (B) An applicant may file a request with the chief for 1332
expedited review of an application for a permit to plug and 1333
abandon a well. The chief may refuse to accept a request for 1334
expedited review if, in the chief's judgment, acceptance of the 1335
request will prevent the issuance, within twenty-one days of 1336
filing, of permits for which applications filed under section 1337
1509.06 of the Revised Code are pending. In addition to a complete 1338
application for a permit that meets the requirements of this 1339
section and the permit fee prescribed by this section, if 1340
applicable, a request shall be accompanied by a nonrefundable 1341
filing fee of twofive hundred fifty dollars unless the chief has 1342
ordered the applicant to plug and abandon the well. When a 1343
request for expedited review is filed, the chief shall immediately 1344
begin to process the application and shall issue a permit within 1345
seven days of the filing of the request unless the chief, by 1346
order, denies the application.1347

       (C) This section does not apply to a well plugged or 1348
abandoned in compliance with section 1571.05 of the Revised Code.1349

       Sec. 1509.14.  Any person who abandons a well, when written1350
permission has been granted by the chief of the division of 1351
mineral resources management to abandon and plug the well without 1352
an inspector being present to supervise the plugging, shall make a 1353
written report of the abandonment to the chief. The report shall 1354
be submitted not later than thirty days after the date of 1355
abandonment and shall include all of the following:1356

       (A) The date of abandonment;1357

       (B) The name of the owner or operator of the well at the time 1358
of abandonment and the post-office address of the owner or1359
operator;1360

       (C) The location of the well as to township and county and 1361
the name of the owner of the surface upon which the well is1362
drilled, with the address thereof;1363

       (D) The date of the permit to drill;1364

       (E) The date when drilled;1365

       (F) The depth of the well;1366

       (G) The depth of the top of the formation to which the well 1367
was drilled;1368

       (H) The depth of each seam of coal drilled through, if known;1369

       (I) A detailed report as to how the well was plugged, giving 1370
in particular the manner in which the coal and various formations 1371
were plugged, and the date of the plugging of the well, including 1372
the names of those who witnessed the plugging of the well.1373

       The report shall be signed by the owner or operator, or the 1374
agent of the owner or operator, who abandons and plugs the well 1375
and verified by the oath of the party so signing. For the purposes 1376
of this section, the mineral resources inspectors may take 1377
acknowledgments and administer oaths to the parties signing the 1378
report.1379

       Sec. 1509.17. Any person who drills a well shall, before1380
drilling into the principal or major producing formation therein,1381
encase such well with good and sufficient wrought iron or steel1382
casing so as to exclude all surface, fresh, or salt water from any 1383
part of such well penetrating the oil or gas bearing sand or rock 1384
or fresh water strata. The method of placing such casing shall be 1385
approved by the chief of the division of mineral resources 1386
management and shall be in accord with the most approved method 1387
used in the operation of such type of well. The chief may, in lieu 1388
of the casing method outlined in this section, accept adequate 1389
mudding methods with prepared clay in the annular space behind 1390
such casing in sufficient quantities to shut off all gas or oil 1391
and that will exclude all surface, fresh, or salt water from any1392
part of such well penetrating the oil, gas, or mineral bearing1393
formation, or fresh water strata.1394

       Written approval from the chief is required in each case. In 1395
the operation of a gas well, it is permissible, with the written 1396
consent of the chief, to withdraw all casing in such well, leaving 1397
only the tubing and the packer therein, provided that such well is 1398
filled with prepared clay from the top of such packer to the 1399
surface, as each succeeding string of casing in such well is 1400
withdrawn.1401

       (A) A well shall be constructed in a manner that is approved 1402
by the chief of the division of mineral resources management as 1403
specified in the permit using materials that comply with industry 1404
standards for the type and depth of the well and the anticipated 1405
fluid pressures that are associated with the well. In addition, a 1406
well shall be constructed using sufficient steel or conductor 1407
casing in a manner that supports unconsolidated sediments, that 1408
protects and isolates all underground sources of drinking water 1409
as defined by the Safe Drinking Water Act, and that provides a 1410
base for a blowout preventer or other well control equipment that 1411
is necessary to control formation pressures and fluids during the 1412
drilling of the well and other operations to complete the well. 1413
Using steel production casing with sufficient cement, an oil and 1414
gas reservoir shall be isolated during well stimulation and 1415
during the productive life of the well. In addition, sour gas 1416
zones and gas bearing zones that have sufficient pressure and 1417
volume to over-pressurize the surface production casing annulus 1418
shall be isolated using approved cementing, casing, and well 1419
construction practices. However, isolating an oil and gas 1420
reservoir shall not exclude open-hole completion. A well shall 1421
not be perforated for purposes of well stimulation in any zone 1422
that is located around casing that protects underground sources 1423
of drinking water without written authorization from the chief in 1424
accordance with division (D) of this section. When the well 1425
penetrates the excavations of a mine, the casing shall remain 1426
intact as provided in section 1509.18 of the Revised Code and be 1427
plugged and abandoned in accordance with section 1509.15 of the 1428
Revised Code.1429

       (B) The chief may adopt rules in accordance with Chapter 119. 1430
of the Revised Code that are consistent with division (A) of this 1431
section and that establish standards for constructing a well, for 1432
evaluating the quality of well construction materials, and for 1433
completing remedial cementing. In addition, the standards 1434
established in the rules shall consider local geology and various 1435
drilling conditions and shall require the use of reasonable 1436
methods that are based on sound engineering principles.1437

       (C) An owner or an owner's authorized representative shall 1438
notify a mineral resources inspector each time that the owner or 1439
the authorized representative notifies a person to perform the 1440
cementing of the conductor casing, the surface casing, or the 1441
production casing. In addition, not later than sixty days after 1442
the completion of the cementing of the production casing, an owner 1443
shall submit to the chief a copy of the cement tickets for each 1444
cemented string of casing and a copy of all logs that were used to 1445
evaluate the quality of the cementing.1446

       (D) The chief shall grant an exemption from this section and 1447
rules adopted under it for a well if the chief determines that a 1448
cement bond log confirms zonal isolation and there is a minimum 1449
of five hundred feet between the uppermost perforation of the 1450
casing and the lowest depth of an underground source of drinking 1451
water.1452

       Sec. 1509.18.  Any person who drills a well within the limits 1453
of a mining operation shall give consideration for the safety of 1454
the personnel working in suchthe mine, and, if possible, shall 1455
locate suchthe well so as to penetrate a pillar.1456

       If a well is to be drilled within the limits of a mining1457
operation that may penetrate the excavation of a mine, the hole1458
shall be reduced approximately fifteen feet above the roof of the1459
mine. If roof conditions at the mine warrant, the hole shall be1460
reduced in the rock formation immediately above suchthe mine, and 1461
a string of casing placed upon the shoulder so as to shut off all1462
water, then drilling shall be continued to a point approximately1463
thirty feet below the floor of the mine and another string of1464
casing set. Both strings of casing shall be approximately the same 1465
diameter as the diameter of the hole.1466

       If no water is encountered between the bottom of the drive1467
pipe and the approximate casing shoulder above the roof of such1468
the mine, in lieu of the casing method outlined above, it is1469
permissible to use the following casing method: the hole shall be 1470
drilled thirty feet below the floor of the mine and a string of 1471
casing shall be extended from the surface to a point thirty feet 1472
below the floor of the mine with a packer of sufficient size1473
attached to suchthe string of casing. SuchThe packer shall be 1474
placed so that it will be below all water and will be located in 1475
the rock formation immediately above suchthe mine and shall 1476
prevent water or destructive matter from entering therein. Then 1477
the annular space above suchthe packer between the casing and 1478
well wall shall be filled with prepared clay a minimum distance 1479
of fifty feet.1480

       If a well is drilled within the limits of a mining operation 1481
and does not penetrate the excavations of a mine, the hole shall 1482
be reduced thirty feet below the coal or mineral that is being 1483
mined and a string of casing placed at this point. The annular 1484
space behind suchthe casing shall be filled with neat cement from 1485
the casing seat to a point not less than fifty feet above such1486
the seam of coal or mineral that is being mined. The packer1487
method, outlined in this section, is also permissible in this1488
type of well.1489

       It is permissible to attach a release coupling or a right and 1490
left nipple to the string of casing that extends through the mine, 1491
but suchthe release coupling or right and left nipple shall be1492
placed in such a manner that it is above the packer or at least1493
twenty feet above the coal or mineral that is being mined.1494

       In wells penetrating the excavation of a mine, the casing1495
shall be enclosed, if possible, with a column extending from the1496
floor to the roof of suchthe mine, built of brick or other 1497
suitable material, subject to the approval of the chief of the 1498
division of mineral resources management. If the chief finds the1499
method prescribed in this section unsafe, inadequate, or not 1500
suitable, the chief shall require suchthe method to be altered in 1501
such a manner that it will be safe.1502

       The chief may order the immediate suspension of the drilling 1503
or reopening of a well in a coal bearing township after 1504
determining that the drilling or reopening activities present an 1505
imminent and substantial threat to public health or safety or to a 1506
miner's health or safety. Before issuing such an order, the chief 1507
shall notify the owner in any manner that the chief determines 1508
would provide reasonable notification of the chief's intent to 1509
issue a suspension order. However, the chief may order the 1510
immediate suspension of the drilling or reopening of a well in a 1511
coal bearing township without prior notification if the chief has 1512
made reasonable attempts to notify the owner and the attempts have 1513
failed. If the chief orders the immediate suspension of such 1514
drilling or reopening, the chief shall provide the owner notice of 1515
the order as soon as practical. 1516

       Not later than five days after the issuance of an order to 1517
immediately suspend the drilling or reopening of a well in a coal 1518
bearing township, the chief shall provide the owner an opportunity 1519
to be heard and to present evidence that the drilling or reopening 1520
activities will not likely result in an imminent and substantial 1521
threat to public health or safety or to a miner's health or 1522
safety, as applicable. If the chief, after considering all 1523
evidence presented by the owner, determines that the activities do 1524
not present such a threat, the chief shall revoke the suspension 1525
order.1526

       Notwithstanding any other provision of this chapter, an owner 1527
may appeal a suspension order issued under this section to the 1528
reclamation commission in accordance with section 1513.13 of the 1529
Revised Code.1530

       Sec. 1509.19. An owner who elects to stimulate a well shall 1531
stimulate the well in a manner that will not endanger underground 1532
sources of drinking water. Not later than twenty-four hours before 1533
commencing the stimulation of a well, the owner or the owner's 1534
authorized representative shall notify a mineral resources 1535
inspector. If during the stimulation of a well damage to the 1536
production casing or cement occurs and results in the circulation 1537
of fluids from the annulus of the surface production casing, the 1538
owner shall immediately terminate the stimulation of the well and 1539
notify the chief of the division of mineral resources management. 1540
If the chief determines that the casing and the cement may be 1541
remediated in a manner that isolates the oil and gas bearing zones 1542
of the well, the chief may authorize the completion of the 1543
stimulation of the well. If the chief determines that the 1544
stimulation of a well resulted in irreparable damage to the well, 1545
the chief shall order that the well be plugged and abandoned 1546
within thirty days of the issuance of the order.1547

       For purposes of determining the integrity of the remediation 1548
of the casing or cement of a well that was damaged during the 1549
stimulation of the well, the chief may require the owner of the 1550
well to submit cement evaluation logs, temperature surveys, 1551
pressure tests, or a combination of such logs, surveys, and tests.1552

       Sec. 1509.20.  All owners, lessees, or their agents, drilling 1553
for or producing crude oil or natural gas, shall use every 1554
reasonable precaution in accordance with the most approved methods 1555
of operation to stop and prevent waste of oil or gas, or both. Any 1556
well productive of natural gas in quantity sufficient to justify 1557
utilization shall be utilized or shut in within ten days after1558
completion.1559

       The owner of any well producing both oil and gas may burn 1560
such gas in flares when it is necessary to protect the health and 1561
safety of the public or when the gas is lawfully produced and 1562
there is no economic market at the well for the escaping gas.1563

       Sec. 1509.21.  No person shall, without first having obtained 1564
a permit from the chief of the division of mineral resources 1565
management, conduct secondary or additional recovery operations, 1566
including any underground injection of fluids or carbon dioxide1567
for the secondary or tertiary recovery of oil or natural gas or 1568
for the storage of hydrocarbons that are liquid at standard 1569
temperature or pressure, unless a rule of the chief expressly 1570
authorizes such operations without a permit. SuchThe permit shall 1571
be in addition to any permit required by section 1509.05 of the 1572
Revised Code. Secondary or additional recovery operations shall be 1573
conducted in accordance with rules and orders of the chief and any 1574
terms or conditions of the permit authorizing such operations. In 1575
addition, the chief may authorize tests to evaluate whether fluids 1576
or carbon dioxide may be injected in a reservoir and to determine 1577
the maximum allowable injection pressure. The tests shall be 1578
conducted in accordance with methods prescribed in rules of the 1579
chief or conditions of the permit. Rules adopted under this 1580
section shall include provisions regarding applications for and 1581
the issuance of permits; the terms and conditions of permits; 1582
entry to conduct inspections and to examine records to ascertain1583
compliance with this section and rules, orders, and terms and1584
conditions of permits adopted or issued thereunder; the provision 1585
and maintenance of information through monitoring, recordkeeping, 1586
and reporting; and other provisions in furtherance of the goals of1587
this section and the Safe Drinking Water Act. To implement the1588
goals of the Safe Drinking Water Act, the chief shall not issue a 1589
permit for the underground injection of fluids for the secondary 1590
or tertiary recovery of oil or natural gas or for the storage of1591
hydrocarbons that are liquid at standard temperature and pressure, 1592
unless the chief concludes that the applicant has demonstrated 1593
that the injection will not result in the presence of any 1594
contaminant in underground water that supplies or can be1595
reasonably expected to supply any public water system, such that1596
the presence of any such contaminant may result in the system's1597
not complying with any national primary drinking water regulation1598
or may otherwise adversely affect the health of persons. Rules,1599
orders, and terms or conditions of permits adopted or issued under 1600
this section shall be construed to be no more stringent than1601
required for compliance with the Safe Drinking Water Act, unless1602
essential to ensure that underground sources of drinking water1603
will not be endangered.1604

       Sec. 1509.22.  (A) Except when acting in accordance with1605
section 1509.226 of the Revised Code, no person shall place or1606
cause to be placed brine, crude oil, natural gas, or other fluids 1607
associated with the exploration or development of oil and gas 1608
resources in surface or ground water or in or on the land in such 1609
quantities or in such manner as actually causes or could 1610
reasonably be anticipated to cause either of the following:1611

       (1) Water used for consumption by humans or domestic animals 1612
to exceed the standards of the Safe Drinking Water Act;1613

       (2) Damage or injury to public health or safety or the1614
environment.1615

       (B) No person shall store or dispose of brine in violation of 1616
a plan approved under division (A) of section 1509.222 or section 1617
1509.226 of the Revised Code, in violation of a resolution 1618
submitted under section 1509.226 of the Revised Code, or in 1619
violation of rules or orders applicable to those plans or1620
resolutions.1621

       (C) The chief of the division of mineral resources management 1622
shall adopt rules and issue orders regarding storage and disposal 1623
of brine and other waste substances; however, the storage and 1624
disposal of brine and other waste substances and the chief's rules 1625
relating to storage and disposal are subject to all of the 1626
following standards:1627

       (1) Brine from any well except an exempt Mississippian well 1628
shall be disposed of only by injection into an underground1629
formation, including annular disposal if approved by rule of the1630
chief, which injection shall be subject to division (D) of this1631
section; by surface application in accordance with section1632
1509.226 of the Revised Code; in association with a method of1633
enhanced recovery as provided in section 1509.21 of the Revised1634
Code; or by other methods approved by the chief for testing or1635
implementing a new technology or method of disposal. Brine from1636
exempt Mississippian wells shall not be discharged directly into1637
the waters of the state.1638

       (2) Muds, cuttings, and other waste substances shall not be 1639
disposed of in violation of any rule;.1640

       (3) Pits mayor steel tanks shall be used as authorized by 1641
the chief for containing brine and other waste substances 1642
resulting from, obtained from, or produced in connection with1643
drilling, fracturingwell stimulation, reworking, reconditioning, 1644
plugging back, or plugging operations, but the. The pits and steel 1645
tanks shall be constructed and maintained to prevent the escape of 1646
brine and other waste substances. A1647

       (4) A dike or pit may be used for spill prevention and 1648
control. A dike or pit so used shall be constructed and maintained 1649
to prevent the escape of brine and crude oil, and the reservoir 1650
within such a dike or pit shall be kept reasonably free of brine, 1651
crude oil, and other waste substances.1652

       (4)(5) Earthen impoundments constructed pursuant to the1653
division's specifications may be used for the temporary storage of 1654
brine and other waste substances in association with a saltwater 1655
injection well, an enhanced recovery project, or a solution mining 1656
project;fluids used in the stimulation of a well.1657

       (5)(6) No pit, earthen impoundment, or dike shall be used for1658
the temporary storage of brine or other substances except in 1659
accordance with divisions (C)(3) and (4)to (5) of this section;.1660

       (6)(7) No pit or dike shall be used for the ultimate disposal1661
of brine or other liquid waste substances.1662

       (D) No person, without first having obtained a permit from 1663
the chief, shall inject brine or other waste substances resulting 1664
from, obtained from, or produced in connection with oil or gas1665
drilling, exploration, or production into an underground formation 1666
unless a rule of the chief expressly authorizes the injection 1667
without a permit. The permit shall be in addition to any permit 1668
required by section 1509.05 of the Revised Code, and the permit 1669
application shall be accompanied by a permit fee of one hundred1670
thousand dollars. The chief shall adopt rules in accordance with 1671
Chapter 119. of the Revised Code regarding the injection into 1672
wells of brine and other waste substances resulting from, obtained 1673
from, or produced in connection with oil or gas drilling,1674
exploration, or production. The rules may authorize tests to 1675
evaluate whether fluids or carbon dioxide may be injected in a 1676
reservoir and to determine the maximum allowable injection 1677
pressure, which shall be conducted in accordance with methods 1678
prescribed in the rules or in accordance with conditions of the 1679
permit. In addition, the rules shall include provisions regarding 1680
applications for and issuance of the permits required by this 1681
division; entry to conduct inspections and to examine and copy 1682
records to ascertain compliance with this division and rules, 1683
orders, and terms and conditions of permits adopted or issued1684
under it; the provision and maintenance of information through1685
monitoring, recordkeeping, and reporting; and other provisions in1686
furtherance of the goals of this section and the Safe Drinking1687
Water Act. To implement the goals of the Safe Drinking Water Act, 1688
the chief shall not issue a permit for the injection of brine or 1689
other waste substances resulting from, obtained from, or produced 1690
in connection with oil or gas drilling, exploration, or production 1691
unless the chief concludes that the applicant has demonstrated 1692
that the injection will not result in the presence of any 1693
contaminant in ground water that supplies or can reasonably be 1694
expected to supply any public water system, such that the presence 1695
of the contaminant may result in the system's not complying with 1696
any national primary drinking water regulation or may otherwise1697
adversely affect the health of persons. This division and rules,1698
orders, and terms and conditions of permits adopted or issued1699
under it shall be construed to be no more stringent than required 1700
for compliance with the Safe Drinking Water Act unless essential 1701
to ensure that underground sources of drinking water will not be1702
endangered.1703

       (E) The owner holding a permit, or an assignee or transferee 1704
who has assumed the obligations and liabilities imposed by this 1705
chapter and any rules adopted or orders issued under it pursuant 1706
to section 1509.31 of the Revised Code, and the operator of a well 1707
shall be liable for a violation of this section or any rules 1708
adopted or orders or terms or conditions of a permit issued under 1709
it.1710

       (F) An owner shall replace the water supply of the holder of 1711
an interest in real property who obtains all or part of the 1712
holder's supply of water for domestic, agricultural, industrial, 1713
or other legitimate use from an underground or surface source 1714
where the supply has been substantially disrupted by 1715
contamination, diminution, or interruption proximately resulting 1716
from the owner's oil or gas operation, or the owner may elect to1717
compensate the holder of the interest in real property for the1718
difference between the fair market value of the interest before1719
the damage occurred to the water supply and the fair market value1720
after the damage occurred if the cost of replacing the water1721
supply exceeds this difference in fair market values. However,1722
during the pendency of any order issued under this division, the1723
owner shall obtain for the holder or shall reimburse the holder1724
for the reasonable cost of obtaining a water supply from the time1725
of the contamination, diminution, or interruption by the operation 1726
until the owner has complied with an order of the chief for 1727
compliance with this division or such an order has been revoked or 1728
otherwise becomes not effective. If the owner elects to pay the 1729
difference in fair market values, but the owner and the holder 1730
have not agreed on the difference within thirty days after the 1731
chief issues an order for compliance with this division, within 1732
ten days after the expiration of that thirty-day period, the owner 1733
and the chief each shall appoint an appraiser to determine the 1734
difference in fair market values, except that the holder of the 1735
interest in real property may elect to appoint and compensate the 1736
holder's own appraiser, in which case the chief shall not appoint 1737
an appraiser. The two appraisers appointed shall appoint a third 1738
appraiser, and within thirty days after the appointment of the 1739
third appraiser, the three appraisers shall hold a hearing to 1740
determine the difference in fair market values. Within ten days 1741
after the hearing, the appraisers shall make their determination 1742
by majority vote and issue their final determination of the 1743
difference in fair market values. The chief shall accept a 1744
determination of the difference in fair market values made by 1745
agreement of the owner and holder or by appraisers under this 1746
division and shall make and dissolve orders accordingly. This 1747
division does not affect in any way the right of any person to 1748
enforce or protect, under applicable law, the person's interest in 1749
water resources affected by an oil or gas operation.1750

       (G) In any action brought by the state for a violation of1751
division (A) of this section involving any well at which annular1752
disposal is used, there shall be a rebuttable presumption1753
available to the state that the annular disposal caused the1754
violation if the well is located within a one-quarter-mile radius1755
of the site of the violation.1756

       Sec. 1509.221. (A) No person, without first having obtained 1757
a permit from the chief of the division of mineral resources 1758
management, shall drill a well or inject a substance into a well 1759
for the exploration for or extraction of minerals or energy, other 1760
than oil or natural gas, including, but not limited to, the mining 1761
of sulfur by the Frasch process, the solution mining of minerals, 1762
the in situ combustion of fossil fuel, or the recovery of 1763
geothermal energy to produce electric power, unless a rule of the 1764
chief expressly authorizes the activity without a permit. The 1765
permit shall be in addition to any permit required by section 1766
1509.05 of the Revised Code. The chief shall adopt rules in 1767
accordance with Chapter 119. of the Revised Code governing the 1768
issuance of permits under this section. The rules shall include 1769
provisions regarding the matters the applicant for a permit shall 1770
demonstrate to establish eligibility for a permit; the form and 1771
content of applications for permits; the terms and conditions of 1772
permits; entry to conduct inspections and to examine and copy 1773
records to ascertain compliance with this section and rules, 1774
orders, and terms and conditions of permits adopted or issued 1775
thereunder; provision and maintenance of information through 1776
monitoring, recordkeeping, and reporting; and other provisions in 1777
furtherance of the goals of this section and the Safe Drinking 1778
Water Act. To implement the goals of the Safe Drinking Water Act, 1779
the chief shall not issue a permit under this section, unless the 1780
chief concludes that the applicant has demonstrated that the 1781
drilling, injection of a substance, and extraction of minerals or 1782
energy will not result in the presence of any contaminant in 1783
underground water that supplies or can reasonably be expected to 1784
supply any public water system, such that the presence of the 1785
contaminant may result in the system's not complying with any 1786
national primary drinking water regulation or may otherwise 1787
adversely affect the health of persons. The chief may issue, 1788
without a prior adjudication hearing, orders requiring compliance 1789
with this section and rules, orders, and terms and conditions of 1790
permits adopted or issued thereunder. This section and rules, 1791
orders, and terms and conditions of permits adopted or issued 1792
thereunder shall be construed to be no more stringent than1793
required for compliance with the Safe Drinking Water Act, unless1794
essential to ensure that underground sources of drinking water1795
will not be endangered.1796

       (B) In order to provide money to the division of mineral 1797
resources management for the administration of this section, there 1798
is levied on the owner of an injection well the following fees:1799

       (1) Five cents per barrel of each substance that is delivered 1800
to a well to be injected in the well when the substance is 1801
produced within the division of mineral resources management 1802
regulatory district in which the well is located or within an 1803
adjoining mineral resources management regulatory district;1804

       (2) Twenty cents per barrel of each substance that is 1805
delivered to a well to be injected in the well when the substance 1806
is not produced within the division of mineral resources 1807
management regulatory district in which the well is located or 1808
within an adjoining mineral resources management regulatory 1809
district.1810

       The owner of an injection well who is issued a permit under 1811
this section shall collect the fee levied by this division on 1812
behalf of the division of mineral resources management and 1813
forward the fee to the division. The chief shall transmit all 1814
money received under division (B) of this section to the 1815
treasurer of state who shall deposit the money in the state 1816
treasury to the credit of the oil and gas well fund created in 1817
section 1509.02 of the Revised Code. The owner of an injection 1818
well who collects the fee levied by this division may retain up 1819
to three per cent of the amount that is collected.1820

       The chief shall adopt rules in accordance with Chapter 119. 1821
of the Revised Code establishing requirements and procedures for 1822
collection of the fee levied by this division.1823

       (C) In an action under section 1509.04 or 1509.33 of the1824
Revised Code to enforce this section, the court shall grant1825
preliminary and permanent injunctive relief and impose a civil1826
penalty upon the showing that the person against whom the action1827
is brought has violated, is violating, or will violate this1828
section or rules, orders, or terms or conditions of permits 1829
adopted or issued thereunder. The court shall not require, prior 1830
to granting such preliminary and permanent injunctive relief or1831
imposing a civil penalty, proof that the violation was, is, or1832
will be the result of intentional conduct or negligence. In any1833
such action, any person may intervene as a plaintiff upon the1834
demonstration that the person has an interest that is or may be1835
adversely affected by the activity for which injunctive relief or1836
a civil penalty is sought.1837

       Sec. 1509.222.  (A)(1) Except as provided in section 1509.226 1838
of the Revised Code, no person shall transport brine by vehicle in 1839
this state unless the business entity that employs the person 1840
first registers with and obtains a registration certificate and 1841
identification number from the chief of the division of oil and 1842
gasmineral resources management.1843

       (2) No more than one registration certificate shall be1844
required of any business entity. Registration certificates issued 1845
under this section are not transferable. An applicant shall file 1846
an application with the chief, containing such information in such 1847
form as the chief prescribes, but including a plan for disposal 1848
that provides for compliance with the requirements of this chapter 1849
and rules of the chief pertaining to the transportation of brine 1850
by vehicle and the disposal of brine so transported and that lists 1851
all disposal sites that the applicant intends to use, the bond 1852
required by section 1509.225 of the Revised Code, and a 1853
certificate issued by an insurance company authorized to do 1854
business in this state certifying that the applicant has in force 1855
a liability insurance policy in an amount not less than three 1856
hundred thousand dollars bodily injury coverage and three hundred 1857
thousand dollars property damage coverage to pay damages for 1858
injury to persons or property caused by the collecting, handling, 1859
transportation, or disposal of brine. The policy shall be 1860
maintained in effect during the term of the registration 1861
certificate. The policy or policies providing the coverage shall 1862
require the insurance company to give notice to the chief if the 1863
policy or policies lapse for any reason. Upon such termination of 1864
the policy, the chief may suspend the registration certificate 1865
until proper insurance coverage is obtained. Each application for 1866
a registration certificate shall be accompanied by a nonrefundable 1867
fee of five hundred dollars.1868

       (3) If a business entity that has been issued a registration 1869
certificate under this section changes its name due to a business 1870
reorganization or merger, the business entity shall revise the 1871
bond or certificates of deposit required by section 1509.225 of 1872
the Revised Code and obtain a new certificate from an insurance 1873
company in accordance with division (A)(2) of this section to 1874
reflect the change in the name of the business entity.1875

       (B) The chief shall issue an order denying an application for 1876
a registration certificate if the chief finds that either of the1877
following applies:1878

       (1) The applicant, at the time of applying for the1879
registration certificate, has been found liable by a final1880
nonappealable order of a court of competent jurisdiction for1881
damage to streets, roads, highways, bridges, culverts, or1882
drainways pursuant to section 4513.34 or 5577.12 of the Revised1883
Code until the applicant provides the chief with evidence of1884
compliance with the order;.1885

       (2) The applicant's plan for disposal does not provide for1886
compliance with the requirements of this chapter and rules of the1887
chief pertaining to the transportation of brine by vehicle and the 1888
disposal of brine so transported.1889

       (C) No applicant shall attempt to circumvent division (B) of 1890
this section by applying for a registration certificate under a 1891
different name or business organization name, by transferring1892
responsibility to another person or entity, or by any similar act.1893

       (D) A registered transporter shall apply to revise a disposal 1894
plan under procedures that the chief shall prescribe by rule. 1895
However, at a minimum, an application for a revision shall list 1896
all sources and disposal sites of brine currently transported. The 1897
chief shall deny any application for a revision of a plan under 1898
this division if the chief finds that the proposed revised plan 1899
does not provide for compliance with the requirements of this 1900
chapter and rules of the chief pertaining to the transportation of 1901
brine by vehicle and the disposal of brine so transported. 1902
Approvals and denials of revisions shall be by order of the chief.1903

       (E) The chief may adopt rules, issue orders, and attach terms 1904
and conditions to registration certificates as may be necessary to 1905
administer, implement, and enforce sections 1509.222 to 1509.226 1906
of the Revised Code for protection of public health or safety or 1907
conservation of natural resources.1908

       Sec. 1509.225.  (A) Before being issued a registration1909
certificate under section 1509.222 of the Revised Code, an1910
applicant shall execute and file with the division of mineral 1911
resources management a surety bond for fifteen thousand dollars to 1912
provide compensation for damage and injury resulting from 1913
transporters' violations of sections 1509.22, 1509.222, and 1914
1509.223 of the Revised Code, all rules and orders of the chief of 1915
the division of mineral resource management relating thereto, and1916
all terms and conditions of the registration certificate imposed 1917
thereunder. The applicant may deposit with the chief, in lieu of a 1918
surety bond, cash in an amount equal to the surety bond as 1919
prescribed in this section, or negotiable certificates of deposit 1920
issued by any bank organized or transacting business in this 1921
state, or certificates of deposit issued by any building and loan 1922
association as defined in section 1151.01 of the Revised Code, 1923
having a cash value equal to or greater than the amount of the 1924
surety bond as prescribed in this section. Cash or certificates of 1925
deposit shall be deposited upon the same terms as those upon which 1926
surety bonds may be deposited. If certificates of deposit are 1927
deposited with the chief in lieu of a surety bond, the chief shall 1928
require the bank or building and loan association that issued any 1929
such certificate to pledge securities of a cash value equal to the 1930
amount of the certificate that is in excess of the amount insured 1931
by any of the agencies and instrumentalities created under the1932
"Federal Deposit Insurance Act," 64 Stat. 873 (1950), 12 U.S.C.1933
1811, as amended, and regulations adopted under it, including at 1934
least the federal deposit insurance corporation, bank insurance 1935
fund, and savings association insurance fund.1936

       Such securities shall be security for the repayment of the1937
certificate of deposit. Immediately upon a deposit of cash or1938
certificates with the chief, the chief shall deliver it to the 1939
treasurer of state who shall hold it in trust for the purposes for1940
which it has been deposited.1941

       (B) The surety bond provided for in this section shall be1942
executed by a surety company authorized to do business in this1943
state. The chief shall not approve any bond until it is personally 1944
signed and acknowledged by both principal and surety, or as to 1945
either by an attorney in fact, with a certified copy of the power 1946
of attorney attached thereto. The chief shall not approve suchthe1947
bond unless there is attached a certificate of the superintendent 1948
of insurance that the company is authorized to transact a fidelity 1949
and surety business in this state. All bonds shall be given in a 1950
form to be prescribed by the chief.1951

       (C) If a registered transporter is found liable for a1952
violation of section 1509.22, 1509.222, or 1509.223 of the Revised 1953
Code or a rule, order, or term or condition of a certificate 1954
involving, in any case, damage or injury to persons or property, 1955
or both, the court may order the forfeiture of any portion of the 1956
bond, cash, or other securities required by this section in full 1957
or partial payment of damages to the person to whom the damages 1958
are due. The treasurer of state and the chief shall deliver the 1959
bond or any cash or other securities deposited in lieu of bond, as 1960
specified in the court's order, to the person to whom the damages 1961
are due; however, execution against the bond, cash, or other 1962
securities, if necessary, is the responsibility of the person to 1963
whom the damages are due. The chief shall not release the bond, 1964
cash, or securities required by this section except by court order 1965
or until two years after the date on which athe registration is 1966
terminated.1967

       Sec. 1509.226.  (A) If a board of county commissioners, a1968
board of township trustees, or the legislative authority of a1969
municipal corporation wishes to permit the surface application of1970
brine to roads, streets, highways, and other similar land surfaces 1971
it owns or has the right to control for control of dust or ice, it 1972
may adopt a resolution permitting such application as provided in 1973
this section. If a board or legislative authority does not adopt 1974
such a resolution, then no such surface application of brine is 1975
permitted on such roads, streets, highways, and other similar 1976
surfaces. If a board or legislative authority votes on a proposed 1977
resolution to permit such surface application of brine, but the 1978
resolution fails to receive the affirmative vote of a majority of 1979
the board or legislative authority, the board or legislative 1980
authority shall not adopt such a resolution for one year following 1981
the date on which the vote was taken. A board or legislative 1982
authority shall hold at least one public hearing on any proposal 1983
to permit surface application of brine under this division and may 1984
hold additional hearings. The board or legislative authority shall 1985
publish notice of the time and place of each such public hearing 1986
in a newspaper of general circulation in the political subdivision 1987
at least five days before the day on which the hearing is to be1988
held.1989

       (B) If a board or legislative authority adopts a resolution 1990
permitting the surface application of brine to roads, streets, 1991
highways, and other similar land surfaces under division (A) of 1992
this section, the board or legislative authority shall, within 1993
thirty days after the adoption of the resolution, prepare and 1994
submit to the chief of the division of mineral resources 1995
management a copy of the resolution. Any department, agency, or 1996
instrumentality of this state or the United States that wishes to 1997
permit the surface application of brine to roads, streets, 1998
highways, and other similar land surfaces it owns or has a right 1999
to control shall prepare and submit guidelines for such 2000
application, but need not adopt a resolution under division (A) of 2001
this section permitting such surface application.2002

       All resolutions and guidelines shall be subject to the2003
following standards:2004

       (1) Brine shall not be applied:2005

       (a) To a water-saturated surface;2006

       (b) Directly to vegetation near or adjacent to surfaces being 2007
treated;2008

       (c) Within twelve feet of structures crossing bodies of water 2009
or crossing drainage ditches;2010

       (d) Between sundown and sunrise, except for ice control.2011

       (2) The discharge of brine through the spreader bar shall2012
stop when the application stops.2013

       (3) The applicator vehicle shall be moving at least five2014
miles per hour at all times while the brine is being applied.2015

       (4) The maximum spreader bar nozzle opening shall be2016
three-quarters of an inch in diameter.2017

       (5) The maximum uniform application rate of brine shall be2018
three thousand gallons per mile on a twelve-foot-wide road or2019
three gallons per sixty square feet on unpaved lots.2020

       (6) The applicator vehicle discharge valve shall be closed2021
between the brine collection point and the specific surfaces that2022
have been approved for brine application.2023

       (7) Any valves that provide for tank draining other than2024
through the spreader bar shall be closed during the brine2025
application and transport.2026

       (8) The angle of discharge from the applicator vehicle2027
spreader bar shall not be greater than sixty degrees from the2028
perpendicular to the unpaved surface.2029

       (9) Only the last twenty-five per cent of an applicator2030
vehicle's contents shall be allowed to have a pressure greater2031
than atmospheric pressure; therefore, the first seventy-five per2032
cent of the applicator vehicle's contents shall be discharged2033
under atmospheric pressure.2034

       (10) Only brine that is produced from a well shall be allowed 2035
to be spread on a road. Fluids from the drilling of a well, 2036
flowback from the stimulation of a well, and other fluids used to 2037
treat a well shall not be spread on a road.2038

       If a resolution or guidelines contain only the standards2039
listed in division (B)(1) to (9)(10) of this section, without2040
addition or qualification, the resolution or guidelines shall be 2041
deemed effective when submitted to the chief without further 2042
action by the chief. All other resolutions and guidelines shall 2043
comply with and be no less stringent than this chapter, rules 2044
concerning surface application that the chief shall adopt under 2045
division (C) of section 1509.22 of the Revised Code, and other 2046
rules of the chief. Within fifteen days after receiving such other 2047
resolutions and guidelines, the chief shall review them for 2048
compliance with the law and rules and disapprove them if they do 2049
not comply.2050

       The board, legislative authority, or department, agency, or2051
instrumentality may revise and resubmit any resolutions or2052
guidelines that the chief disapproves after each disapproval, and2053
the chief shall again review and approve or disapprove them within 2054
fifteen days after receiving them. The board, legislative2055
authority, or department, agency, or instrumentality may amend any 2056
resolutions or guidelines previously approved by the chief and 2057
submit them, as amended, to the chief. The chief shall receive, 2058
review, and approve or disapprove the amended resolutions or 2059
guidelines on the same basis and in the same time as original 2060
resolutions or guidelines. The board, legislative authority, or 2061
department, agency, or instrumentality shall not implement amended 2062
resolutions or guidelines until they are approved by the chief 2063
under this division.2064

       (C) Any person, other than a political subdivision required 2065
to adopt a resolution under division (A) of this section or a 2066
department, agency, or instrumentality of this state or the United 2067
States, who owns or has a legal right or obligation to maintain a 2068
road, street, highway, or other similar land surface may file with 2069
the board of county commissioners a written plan for the 2070
application of brine to the road, street, highway, or other 2071
surface. The board need not approve any such plans, but if it 2072
approves a plan, the plan shall comply with this chapter, rules 2073
adopted thereunder, and the board's resolutions, if any.2074
Disapproved plans may be revised and resubmitted for the board's2075
approval. Approved plans may also be revised and submitted to the 2076
board. A plan or revised plan shall do all of the following:2077

       (1) Identify the sources of brine to be used under the plan;2078

       (2) Identify by name, address, and registration certificate, 2079
if applicable, any transporters of the brine;2080

       (3) Specifically identify the places to which the brine will 2081
be applied;2082

       (4) Specifically describe the method, rate, and frequency of 2083
application.2084

       (D) The board may attach terms and conditions to approval of 2085
a plan, or revised plan, and may revoke approval for any violation 2086
of this chapter, rules adopted thereunder, resolutions adopted by 2087
the board, or terms or conditions attached by the board. The board 2088
shall conduct at least one public hearing before approving a plan 2089
or revised plan, publishing notice of the time and place of each 2090
such public hearing in a newspaper of general circulation in the 2091
county at least five days before the day on which the hearing is 2092
to be held. The board shall record the filings of all plans and 2093
revised plans in its journal. The board shall approve, disapprove, 2094
or revoke approval of a plan or revised plan by the adoption of a 2095
resolution. Upon approval of a plan or revised plan, the board 2096
shall send a copy of the plan to the chief. Upon revoking approval 2097
of a plan or revised plan, the board shall notify the chief of the 2098
revocation.2099

       (E) No person shall:2100

       (1) Apply brine to a water-saturated surface;2101

       (2) Apply brine directly to vegetation adjacent to the2102
surface of roads, streets, highways, and other surfaces to which2103
brine may be applied.2104

       (F) Each political subdivision that adopts a resolution under 2105
divisions (A) and (B) of this section, each department, agency, or 2106
instrumentality of this state or the United States that submits 2107
guidelines under division (B) of this section, and each person who 2108
files a plan under divisions (C) and (D) of this section shall, on 2109
or before the fifteenth day of April of each year, file a report 2110
with the chief concerning brine applied within the person's or 2111
governmental entity's jurisdiction, including the quantities 2112
transported and the sources and application points during the last 2113
preceding calendar year and such other information in such form as 2114
the chief requires.2115

       (G) Any political subdivision or department, agency, or2116
instrumentality of this state or the United States that applies2117
brine under this section may do so with its own personnel,2118
vehicles, and equipment without registration under or compliance2119
with section 1509.222 or 1509.223 of the Revised Code and without2120
the necessity for filing the surety bond or other security2121
required by section 1509.225 of the Revised Code. However, each2122
such entity shall legibly identify vehicles used to apply brine2123
with reflective paint in letters no less than four inches in2124
height, indicating the word "brine" and that the vehicle is a2125
vehicle of the political subdivision, department, agency, or2126
instrumentality. Except as stated in this division, such entities 2127
shall transport brine in accordance with sections 1509.22 to 2128
1509.226 of the Revised Code.2129

       (H) A surface application plan filed for approval under2130
division (C) of this section shall be accompanied by a2131
nonrefundable fee of fifty dollars, which shall be credited to the 2132
general fund of the county. An approved plan is valid for one year 2133
from the date of its approval unless it is revoked before that 2134
time. An approved revised plan is valid for the remainder of the 2135
term of the plan it supersedes unless it is revoked before that 2136
time. Any person who has filed such a plan or revised plan and had 2137
it approved may renew it by refiling it in accordance with 2138
divisions (C) and (D) of this section within thirty days before 2139
any anniversary of the date on which the original plan was 2140
approved. The board shall notify the chief of renewals and 2141
nonrenewals of plans. Even if a renewed plan is approved under 2142
those divisions, the plan is not effective until notice is 2143
received by the chief, and until notice is received, the chief 2144
shall enforce this chapter and rules adopted thereunder with 2145
regard to the affected roads, streets, highways, and other similar 2146
land surfaces as if the plan had not been renewed.2147

       (I) A resolution adopted under division (A) of this section 2148
by a board or legislative authority shall be effective for one 2149
year following the date of its adoption and from month to month 2150
thereafter until the board or legislative authority, by2151
resolution, terminates the authority granted in the original2152
resolution. The termination shall be effective not less than seven 2153
days after enactment of the resolution, and a copy of the2154
resolution shall be sent to the chief.2155

       Sec. 1509.23.  (A) Rules of the chief of the division of2156
mineral resources management may specify practices to be followed2157
in the drilling and treatment of wells and, production of oil and2158
gas, and plugging of wells for protection of public health or 2159
safety or to prevent damage to natural resources, including 2160
specification of the following:2161

       (1) Appropriate devices;2162

       (2) Minimum distances that wells and other excavations,2163
structures, and equipment shall be located from water wells,2164
streets, roads, highways, rivers, lakes, streams, ponds, other2165
bodies of water, railroad tracks, public or private recreational 2166
areas, zoning districts, and buildings or other structures;2167

       (3) Other methods of operation;2168

       (4) Procedures, methods, and equipment and other requirements 2169
for equipment to prevent and contain discharges of oil and brine2170
from oil production facilities and oil drilling and workover2171
facilities consistent with and equivalent in scope, content, and2172
coverage to section 311(j)(1)(c) of the "Federal Water Pollution2173
Control Act Amendments of 1972," 86 Stat. 886, 33 U.S.C.A. 1251,2174
as amended, and regulations adopted under it. In addition, the 2175
rules may specify procedures, methods, and equipment and other 2176
requirements for equipment to prevent and contain surface and 2177
subsurface discharges of fluids, condensates, and gases.2178

       (5) Notifications.2179

       (B) The chief, in consultation with the emergency response2180
commission created in section 3750.02 of the Revised Code, shall2181
adopt rules in accordance with Chapter 119. of the Revised Code2182
that specify the information that shall be included in an2183
electronic database that the chief shall create and host. The2184
information shall be that which the chief considers to be2185
appropriate for the purpose of responding to emergency situations2186
that pose a threat to public health or safety or the environment.2187
At the minimum, the information shall include that which a person2188
who is regulated under this chapter is required to submit under2189
the "Emergency Planning and Community Right-To-Know Act of 1986,"2190
100 Stat. 1728, 42 U.S.C.A. 11001, and regulations adopted under2191
it.2192

       In addition, the rules shall specify whether and to what2193
extent the database and the information that it contains will be2194
made accessible to the public. The rules shall ensure that the2195
database will be made available via the internet or a system of2196
computer disks to the emergency response commission and to every2197
local emergency planning committee and fire department in this2198
state.2199

       Sec. 1509.27.  If a tract of land is of insufficient size or 2200
shape to meet the requirements for drilling a well thereon as2201
provided in section 1509.24 or 1509.25 of the Revised Code,2202
whichever is applicable, and the owner of the tract who also is 2203
the owner of the mineral interest has been unable to form a2204
drilling unit under agreement as provided in section 1509.26 of 2205
the Revised Code, on a just and equitable basis, thesuch an owner 2206
of such tract may make application to the division of mineral2207
resources management for a mandatory pooling order.2208

       SuchThe application shall include such data and information 2209
as shall be reasonably required by the chief of the division of 2210
mineral resources management and shall be accompanied by an2211
application for a permit as required by section 1509.05 of the 2212
Revised Code. The chief shall notify all owners of land within the 2213
area proposed to be included within the orderdrilling unit of the 2214
filing of suchthe application and of their right to a hearing if 2215
requested. After the hearing or after the expiration of thirty 2216
days from the date notice of application was mailed to such 2217
owners, the chief, if satisfied that the application is proper in 2218
form and that mandatory pooling is necessary to protect 2219
correlative rights orand to provide effective development, use, 2220
orand conservation of oil and gas, shall issue a drilling permit 2221
and a mandatory pooling order complying with the requirements for 2222
drilling a well as provided in section 1509.24 or 1509.25 of the 2223
Revised Code, whichever is applicable, which. The mandatory 2224
pooling order shall:2225

       (A) Designate the boundaries of the drilling unit within2226
which the well shall be drilled;2227

       (B) Designate the proposed drillingproduction site;2228

       (C) Describe each separately owned tract or part thereof2229
pooled by the order;2230

       (D) Allocate on a surface acreage basis a pro rata portion of 2231
the production to the owner of each tract;pooled by the order. 2232
The pro rata portion shall be in the same proportion that the 2233
percentage of the owner's acreage is to the state minimum acreage 2234
requirements established in rules adopted under this chapter for a 2235
drilling unit unless the applicant demonstrates to the chief using 2236
geological evidence that the geologic structure containing the oil 2237
or gas is larger than the minimum acreage requirement in which 2238
case the pro rata portion shall be in the same proportion that the 2239
percentage of the owner's acreage is to the geologic structure.2240

       (E) Specify the basis upon which each owner of a tract pooled 2241
by the order shall share all reasonable costs and expenses of 2242
drilling and producing if the owner elects to participate in the 2243
drilling and operation of the well;2244

       (F) Designate the person to whom the permit shall be issued.2245

       A person shall not submit more than five applications for 2246
mandatory pooling orders per year under this section unless 2247
otherwise approved by the chief. 2248

       No surface operations or disturbances to the surface of the 2249
land shall occur on a tract pooled by an order without the written 2250
consent of or a written agreement with the owner of the tract that 2251
approves the operations or disturbances. In addition, the chief 2252
shall adopt rules in accordance with Chapter 119. of the Revised 2253
Code that establish setback requirements for surface facilities of 2254
a well that are located near property that is subject to a 2255
mandatory pooling order. Those rules shall not conflict with 2256
spacing requirements for the surface facilities of a well and 2257
shall not prevent the development of the drilling unit.2258

       If an owner of a tract pooled by the order does not elect to 2259
participate in the risk and cost of the drilling and operation, or 2260
operation, of a well, the owner may elect toshall be designated 2261
as a nonparticipating owner in the drilling and operation, or 2262
operation, of the well, on a limited or carried basis uponand is 2263
subject to terms and conditions determined by the chief to be just 2264
and reasonable. In addition, if an owner is designated as a 2265
nonparticipating owner, the owner is not liable for actions or 2266
conditions associated with the drilling or operation of the well.2267
If one or more of the participating owners bearapplicant bears2268
the costs of drilling, equipping, orand operating a well for the 2269
benefit of a nonparticipating owner, as provided for in the2270
pooling order, then such participating owner or ownersthe 2271
applicant shall be entitled to the share of production from the 2272
drilling unit accruing to the interest of suchthat2273
nonparticipating owner, exclusive of the nonparticipating owner's 2274
proportionate share of the royalty interest if the fee holder has 2275
leased the fee holder's land to others, otherwise, one-eighth of2276
the fee holder's share of the production, until there has been 2277
received the share of costs charged to suchthat nonparticipating 2278
owner plus such additional percentage of the share of costs as 2279
the chief shall determine. The total amount receivable hereunder 2280
shall in no event exceed doubletwo hundred per cent of the share 2281
of costs charged to suchthat nonparticipating owner. After 2282
receipt of that share of costs by such an applicant, a 2283
nonparticipating owner shall receive a proportionate share of the 2284
working interest in the well in addition to a proportionate share 2285
of the royalty interest, if any.2286

       If there is a dispute as to costs of drilling, equipping, or 2287
operating a well, the chief shall determine suchthose costs.2288

       In instances where a well is completed prior to the pooling2289
of interests in a drilling unit under this section, the sharing of 2290
production and adjustment of the original costs of drilling,2291
equipping, and completing the well shall be from the effective2292
date of the mandatory pooling order.2293

       From and after the date of a pooling order, all operation,2294
including the commencement of drilling or the operating of or2295
production from a well upon any tract or portion of the drilling2296
unit, shall be deemed for all purposes the conduct of such2297
operations upon and production from any lease or contract for2298
lands any portion of which is included in the drilling unit.2299

       Sec. 1509.31. (A) Whenever the entire interest of an oil and2300
gas lease is assigned or otherwise transferred, the assignor or2301
transferor shall notify the holders of the royalty interests, and, 2302
if a well or wells exist on the lease, the division of mineral 2303
resources management, of the name and address of the assignee or 2304
transferee by certified mail, return receipt requested, not later 2305
than thirty days after the date of the assignment or transfer. 2306
When notice of any such assignment or transfer is required to be 2307
provided to the division, it shall be provided on a form 2308
prescribed and provided by the division and verified by both the 2309
assignor or transferor and by the assignee or transferee and shall 2310
be accompanied by a nonrefundable fee of one hundred dollars for 2311
each well. The notice form applicable to assignments or transfers 2312
of a well to the owner of the surface estate of the tract on 2313
which the well is located shall contain a statement informing the 2314
landowner that the well may require periodic servicing to 2315
maintain its productivity; that, upon assignment or transfer of 2316
the well to the landowner, the landowner becomes responsible for 2317
compliance with the requirements of this chapter and rules adopted 2318
under it, including, without limitation, the proper disposal of 2319
brine obtained from the well, the plugging of the well when it 2320
becomes incapable of producing oil or gas, and the restoration of 2321
the well site; and that, upon assignment or transfer of the well 2322
to the landowner, the landowner becomes responsible for the costs 2323
of compliance with the requirements of this chapter and rules2324
adopted under it and the costs for operating and servicing the2325
well.2326

       (B) When the entire interest of a well is proposed to be 2327
assigned or otherwise transferred to the landowner for use as an 2328
exempt domestic well, the owner who has been issued a permit 2329
under this chapter for the well shall submit to the chief an 2330
application for the assignment or transfer that contains all 2331
documents that the chief requires and a nonrefundable fee of one 2332
hundred dollars. The application for such an assignment or 2333
transfer shall be prescribed and provided by the chief. The chief 2334
may approve the application if the application is accompanied by 2335
a release of all of the oil and gas leases that are included in 2336
the applicable formation of the drilling unit, the release is in 2337
a form such that the well ownership merges with the fee simple 2338
interest of the surface tract, and the release is in a form that 2339
may be recorded. However, if the owner of the well does not 2340
release the oil and gas leases associated with the well that is 2341
proposed to be assigned or otherwise transferred or if the fee 2342
simple tract that results from the merger of the well ownership 2343
with the fee simple interest of the surface tract is less than 2344
five acres, the proposed exempt domestic well owner shall post a 2345
five thousand dollar bond with the division of mineral resources 2346
management prior to the assignment or transfer of the well to 2347
ensure that the well will be properly plugged. The chief, for 2348
good cause, may modify the requirements of this section 2349
governing the assignment or transfer of the interests of a well 2350
to the landowner. Upon the assignment or transfer of the well, 2351
the owner of an exempt domestic well is subject to the severance 2352
tax levied under section 5749.02 of the Revised Code and all 2353
applicable fees established in this chapter.2354

       (C) The owner holding a permit under section 1509.05 of the2355
Revised Code is responsible for all obligations and liabilities2356
imposed by this chapter and any rules, orders, and terms and2357
conditions of a permit adopted or issued under it, and no 2358
assignment or transfer by the owner relieves the owner of the 2359
obligations and liabilities until and unless the assignee or 2360
transferee files with the division the information described in2361
divisions (A)(1), (2), (3), (4), (5), (10), (11), and (12) of 2362
section 1509.06 of the Revised Code; obtains liability insurance 2363
coverage required by section 1509.07 of the Revised Code, except 2364
when none is required by that section; and executes and files a 2365
surety bond, negotiable certificates of deposit or irrevocable 2366
letters of credit, or cash, as described in that section. Instead 2367
of a bond, but only upon acceptance by the chief of the division 2368
of mineral resources management, the assignee or transferee may 2369
file proof of financial responsibility, described in section 2370
1509.07 of the Revised Code. Section 1509.071 of the Revised Code 2371
applies to the surety bond, cash, and negotiable certificates of 2372
deposit and irrevocable letters of credit described in this2373
section. Unless the chief approves a modification, each assignee2374
or transferee shall operate in accordance with the plans and2375
information filed by the permit holder pursuant to section 1509.06 2376
of the Revised Code.2377

       (D) If a mortgaged property that is being foreclosed is 2378
subject to an oil or gas lease, pipeline agreement, or other 2379
instrument related to the production or sale of oil or natural 2380
gas and the lease, agreement, or other instrument was recorded 2381
subsequent to the mortgage, and if the lease, agreement, or other 2382
instrument is not in default, the oil or gas lease, pipeline 2383
agreement, or other instrument, as applicable, has priority over 2384
all other liens, claims, or encumbrances on the property so that 2385
the oil or gas lease, pipeline agreement, or other instrument is 2386
not terminated or extinguished upon the foreclosure sale of the 2387
mortgaged property. If the owner of the mortgaged property was 2388
entitled to oil and gas royalties before the foreclosure sale, the 2389
oil or gas royalties shall be paid to the purchaser of the 2390
foreclosed property.2391

       Sec. 1509.34. (A) If an owner fails to pay the fees imposed 2392
by this chapter or the taxes levied on the severance of oil and 2393
gas under section 5749.02 of the Revised Code, or if the chief of 2394
the division of mineral resources management incurs costs under 2395
division (E) of section 1509.071 of the Revised Code to correct 2396
conditions associated with the owner's well that the chief 2397
reasonably has determined are causing imminent health or safety 2398
risks, the division of mineral resources management shall have a 2399
priority lien against that owner's interest in the applicable well 2400
in front of all other creditors for the amount of any such unpaid 2401
fees and taxes and costs incurred. The chief shall file a 2402
statement in the office of the county recorder of the county in 2403
which the applicable well is located of the amount of the unpaid 2404
fees and taxes and costs incurred as described in this division. 2405
The statement shall constitute a lien on the owner's interest in 2406
the well as of the date of the filing. The lien shall remain in 2407
force so long as any portion of the lien remains unpaid or until 2408
the chief issues a certificate of release of the lien. If the 2409
chief issues a certificate of release of the lien, the chief 2410
shall file the certificate of release in the office of the 2411
applicable county recorder.2412

       (B) The chief promptly shall issue a certificate of release 2413
of a lien under either of the following circumstances:2414

       (1) Upon the repayment in full of the amount of unpaid fees 2415
imposed by this chapter or taxes levied on the severance of oil 2416
and gas under section 5749.02 of the Revised Code or costs 2417
incurred by the chief under division (E) of section 1509.071 of 2418
the Revised Code to correct conditions associated with the owner's 2419
well that the chief reasonably has determined are causing imminent 2420
health or safety risks;2421

       (2) Any other circumstance that the chief determines to be in 2422
the best interests of the state.2423

       (C) The chief may modify the amount of a lien under this 2424
section. If the chief modifies a lien, the chief shall file a 2425
statement in the office of the county recorder of the applicable 2426
county of the new amount of the lien.2427

       (D) An owner regarding which the division has recorded a lien 2428
against the owner's interest in a well in accordance with this 2429
section shall not transfer a well, lease, or mineral rights to 2430
another owner or person until the chief issues a certificate of 2431
release for each lien against the owner's interest in the well.2432

       (E) All money from the collection of liens under this section 2433
shall be deposited in the state treasury to the credit of the oil 2434
and gas well fund created in section 1509.02 of the Revised Code.2435

       Sec. 1509.35. (A) There is hereby created an oil and gas 2436
commission consisting of five members appointed by the governor.2437
Terms of office shall be for five years, commencing on the2438
fifteenth day of October and ending on the fourteenth day of2439
October, except that the terms of the first five members of the 2440
board shall be for one, two, three, four, and five years,2441
respectively, as designated by the governor at the time of the2442
appointment. Each member shall hold office from the date of2443
appointment until the end of the term for which the member was 2444
appointed. Any member appointed to fill a vacancy occurring prior 2445
to the expiration of the term for which the member's predecessor2446
was appointed shall hold office for the remainder of suchthat2447
term. Any member shall continue in office subsequent to the 2448
expiration date of the member's term until a successor takes 2449
office, or until a period of sixty days has elapsed, whichever 2450
occurs first. Each vacancy occurring on the commission shall be 2451
filled by appointment within sixty days after the vacancy occurs. 2452
One of the appointees to the commission shall be a person who, by 2453
reason of the person's previous vocation, employment, or 2454
affiliations, can be classed as a representative of a major 2455
petroleum company. One of the appointees to the commission shall 2456
be a person who, by reason of the person's previous vocation, 2457
employment, or affiliations, can be classed as a representative of 2458
the public. One of the appointees to the commission shall be a 2459
person who, by reason of the person's previous training and 2460
experience, can be classed as a representative of independent 2461
petroleum operators. One of the appointees to the commission shall 2462
be a person who, by reason of the person's previous training and2463
experience, can be classed as one learned and experienced in oil 2464
and gas law. One of the appointees to the commission shall be a 2465
person who, by reason of the person's previous training and 2466
experience, can be classed as one learned and experienced in 2467
geology or petroleum engineering. Not more than three members2468
shall be members of the same political party. This division does 2469
not apply to temporary members appointed under division (C) of 2470
this section.2471

       (B) Three members constitute a quorum and no action of the2472
commission is valid unless it has the concurrence of at least a 2473
majority of the members voting on that action. The commission 2474
shall keep a record of its proceedings.2475

       (C) If the chairperson of the commission determines that a 2476
quorum cannot be obtained for the purpose of considering a matter 2477
that will be before the commission because of vacancies or recusal 2478
of its members, the chairperson may contact the technical advisory 2479
council on oil and gas created in section 1509.38 of the Revised 2480
Code and request a list of members of the council who may serve as 2481
temporary members of the commission. Using the list provided by 2482
the council, the chairperson may appoint temporary members to the 2483
commission. The appointment of temporary members shall be for only 2484
the matter for which a quorum cannot be obtained. The number of 2485
temporary members appointed by the chairperson shall not exceed 2486
the number that is necessary to obtain a quorum for the matter. A 2487
temporary member of the commission has the same authority, rights, 2488
and obligations as a member of the commission, including the right 2489
to compensation and other expenses as provided in this section. 2490
The authority, rights, and obligations of a temporary member cease 2491
when the temporary member's service on the commission ends.2492

       (D) Each member shall be paid an amount fixed pursuant to2493
division (J) of section 124.15 of the Revised Code per diem when2494
actually engaged in the performance of work as a member and when 2495
engaged in travel necessary in connection with suchthat work. In 2496
addition to such compensation each member shall be reimbursed for 2497
all traveling, hotel, and other expenses necessarily incurred in 2498
the performance of work as a member.2499

       (E) The commission shall select from among its members a2500
chairperson, a vice-chairperson, and a secretary. These officers2501
shall serve for terms of one year.2502

       (F) The governor may remove any member of the commission from2503
office for inefficiency, neglect of duty, malfeasance, 2504
misfeasance, or nonfeasance.2505

       (G) The commission, in accordance with Chapter 119. of the 2506
Revised Code, shall adopt rules to govern its procedure.2507

       Sec. 1509.36.  Any person claiming to be aggrieved or2508
adverselydirectly affected by an order by the chief of the 2509
division of mineral resources management may appeal to the oil and 2510
gas commission for an order vacating or modifying suchthe order.2511

       The person so appealing to the commission shall be known as2512
appellant and the chief shall be known as appellee. Appellant and 2513
appellee shall be deemed to be parties to the appeal.2514

       The appeal shall be in writing and shall set forth the order 2515
complained of and the grounds upon which the appeal is based. The 2516
appeal shall be filed with the commission within thirty days after 2517
the date upon which the appellant received notice by registered2518
certified mail of the makingand, for all other persons claiming 2519
to be directly affected by the order, within thirty days after the 2520
date of the order complained of. Notice of the filing of the 2521
appeal shall be filed with the chief within three days after the 2522
appeal is filed with the commission.2523

       Upon the filing of the appeal the commission promptly shall 2524
fix the time and place at which the hearing on the appeal will be2525
held, and shall give the appellant and the chief at least ten2526
days' written notice thereof by mail. The commission may postpone 2527
or continue any hearing upon its own motion or upon application of 2528
the appellant or of the chief.2529

       The filing of an appeal provided for in this section does not 2530
automatically suspend or stay execution of the order appealed2531
from, but upon application by the appellant the commission may 2532
suspend or stay suchthe execution pending determination of the 2533
appeal upon such terms as the commission considers proper.2534

       Either party to the appeal or any interested person who,2535
pursuant to commission rules has been granted permission to 2536
appear, may submit such evidence as the commission considers 2537
admissible.2538

       For the purpose of conducting a hearing on an appeal, the2539
commission may require the attendance of witnesses and the2540
production of books, records, and papers, and it may, and at the 2541
request of any party it shall, issue subpoenas for witnesses or 2542
subpoenas duces tecum to compel the production of any books, 2543
records, or papers, directed to the sheriffs of the counties where2544
suchthe witnesses are found. The subpoenas shall be served and 2545
returned in the same manner as subpoenas in criminal cases are 2546
served and returned. The fees of sheriffs shall be the same as 2547
those allowed by the court of common pleas in criminal cases. 2548
Witnesses shall be paid the fees and mileage provided for under 2549
section 119.094 of the Revised Code. Such fees and mileage 2550
expenses incurred at the request of appellant shall be paid in 2551
advance by the appellant, and the remainder of suchthose2552
expenses shall be paid out of funds appropriated for the 2553
expenses of the division of mineral resources management.2554

       In case of disobedience or neglect of any subpoena served on 2555
any person, or the refusal of any witness to testify to any matter 2556
regarding which the witness may be lawfully interrogated, the 2557
court of common pleas of the county in which suchthe2558
disobedience, neglect, or refusal occurs, or any judge thereof, 2559
on application of the commission or any member thereof, shall 2560
compel obedience by attachment proceedings for contempt as in the 2561
case of disobedience of the requirements of a subpoena issued 2562
from suchthat court or a refusal to testify therein. Witnesses 2563
at such hearings shall testify under oath, and any member of the 2564
commission may administer oaths or affirmations to persons who so 2565
testify.2566

       At the request of any party to the appeal, a stenographic2567
record of the testimony and other evidence submitted shall be2568
taken by an official court shorthand reporter at the expense of2569
the party making the request therefor. SuchThe record shall 2570
include all of the testimony and other evidence and the rulings on 2571
the admissibility thereof presented at the hearing. The commission 2572
shall pass upon the admissibility of evidence, but any party may 2573
at the time object to the admission of any evidence and except to 2574
the rulings of the commission thereon, and if the commission 2575
refuses to admit evidence the party offering same may make a 2576
proffer thereof, and such proffer shall be made a part of the 2577
record of suchthe hearing.2578

       If upon completion of the hearing the commission finds that 2579
the order appealed from was lawful and reasonable, it shall make a2580
written order affirming the order appealed from; if the commission 2581
finds that the order was unreasonable or unlawful, it shall make a 2582
written order vacating the order appealed from and making the2583
order that it finds the chief should have made. Every order made 2584
by the commission shall contain a written finding by the 2585
commission of the facts upon which the order is based.2586

       Notice of the making of the order shall be given forthwith to 2587
each party to the appeal by mailing a certified copy thereof to 2588
each such party by certified mail.2589

       The order of the commission is final unless vacated by the2590
court of common pleas of Franklin county in an appeal as provided 2591
for in section 1509.37 of the Revised Code. Sections 1509.01 to2592
1509.37 of the Revised Code, providing for appeals relating to 2593
orders by the chief or by the commission, or relating to rules 2594
adopted by the chief, do not constitute the exclusive procedure 2595
that any person who believes the person's rights to be unlawfully 2596
affected by those sections or any official action taken thereunder 2597
must pursue in order to protect and preserve those rights, nor do 2598
those sections constitute a procedure that that person must pursue2599
before that person may lawfully appeal to the courts to protect 2600
and preserve those rights.2601

       Sec. 1509.50. In addition to paying the applicable taxes 2602
levied on the severance of oil and gas under section 5749.02 of 2603
the Revised Code, an owner shall pay an oil and gas regulatory 2604
cost recovery assessment of ten cents per barrel of oil or 2605
one-half cent per one thousand cubic feet of natural gas, as 2606
applicable, that is sold from all of the owner's wells located in 2607
this state. The owner shall collect from each person who has a 2608
revenue interest in a well of the owner that person's pro rata 2609
share of the assessment.2610

        The minimum amount of the assessment for every quarterly 2611
period, which periods are specified in section 5749.06 of the 2612
Revised Code, shall be either the amount of fifteen dollars 2613
multiplied by the total number of the owner's wells or the amount 2614
of the owner's severance taxes levied under section 5749.02 of the 2615
Revised Code plus the oil and gas regulatory cost recovery 2616
assessment imposed by this section, whichever is greater. An owner 2617
shall pay the assessment at the time and using the procedures that 2618
are established in section 5749.06 of the Revised Code for the 2619
collection of the taxes levied on the severance of oil and gas 2620
under section 5749.02 of the Revised Code. All money collected 2621
pursuant to this section shall be deposited in the state treasury 2622
to the credit of the oil and gas well fund created in section 2623
1509.02 of the Revised Code.2624

       The oil and gas regulatory cost recovery assessment imposed 2625
by this section shall be treated the same and equivalent for all 2626
purposes as the taxes levied on the severance of oil and gas under 2627
section 5749.02 of the Revised Code. However, the assessment 2628
imposed by this section is not a tax under Chapter 5749. of the 2629
Revised Code.2630

       Sec. 1571.18. After the effective date of this section and 2631
not later than March 31 each year, the owner of a well that is 2632
used for gas storage or of a well that is used to monitor a gas 2633
storage reservoir and that is located in a reservoir productive 2634
area shall pay to the chief of the division of mineral resources 2635
management a gas storage well regulatory fee of two hundred 2636
twenty-five dollars for each well for the purposes of 2637
administering this chapter and Chapter 1509. of the Revised Code. 2638
The chief may prescribe and provide a form for the collection of 2639
the fee imposed by this section and may adopt rules in accordance 2640
with Chapter 119. of the Revised Code that are necessary for the 2641
administration of this section.2642

       All money collected under this section shall be deposited in 2643
the state treasury to the credit of the oil and gas well fund 2644
created in section 1509.02 of the Revised Code.2645

       Sec. 5749.06.  Each severer liable for the tax imposed by2646
section 5749.02 of the Revised Code shall make and file returns2647
with the tax commissioner in the prescribed form and as of the2648
prescribed times, computing and reflecting therein the tax as2649
required by this chapter and the oil and gas regulatory cost 2650
recovery assessment imposed by section 1509.50 of the Revised 2651
Code.2652

       The returns shall be filed for every quarterly period, which2653
periods shall end on the thirty-first of March, the thirtieth day2654
of June, the thirtieth day of September, and the thirty-first day2655
of December of each year, as required by this section, unless a2656
different return period is prescribed for a taxpayer by the tax2657
commissioner.2658

       A separate return shall be filed for each calendar quarterly2659
period, or other period, or any part thereof, during which the2660
severer holds a license as provided by section 5749.04 of the2661
Revised Code, or is required to hold suchthe license, and such2662
the return shall be filed within forty-five days after the last2663
day of each such calendar month, or other period, or any part2664
thereof, for which suchthe return is required and shall include2665
remittance payable to the treasurer of state of the amount of tax2666
due. All such returns shall contain such information as the2667
commissioner may require to fairly administer the tax.2668

       All returns shall be signed by the severer, shall contain the2669
full and complete information requested, and shall be made under2670
penalty of perjury.2671

       If the commissioner believes that quarterly payments of tax2672
would result in a delay whichthat might jeopardize the collection 2673
of such tax payments, the commissioner may order that such2674
payments be made weekly, or more frequently if necessary, such 2675
payments to be made not later than seven days following the close 2676
of the period for which the jeopardy payment is required. Such an 2677
order shall be delivered to the taxpayer personally or by 2678
certified mail and shall remain in effect until the commissioner 2679
notifies the taxpayer to the contrary.2680

       Upon good cause the commissioner may extend the period for2681
filing any notice or return required to be filed under this2682
section, and may remit all or a part of penalties that may become2683
due under this chapter.2684

       Any tax not paid by the day the tax is due shall bear2685
interest computed at the rate per annum prescribed by section2686
5703.47 of the Revised Code on that amount of tax due from the day2687
that suchthe amount was originally required to be paid to the day 2688
of actual payment or to the day an assessment was issued under2689
section 5749.07 or 5749.10 of the Revised Code, whichever occurs2690
first.2691

       The severer shall make all payments payable to the treasurer2692
of state. AllExcept for the amounts received from the oil and gas 2693
regulatory cost recovery assessment imposed by section 1509.50 of 2694
the Revised Code, all amounts that the tax commissioner receives 2695
under this section shall be deemed to be revenue from taxes 2696
imposed under this chapter. The tax commissioner shall immediately 2697
forward to the treasurer of state all amounts received under this2698
section.2699

       Section 2. That existing sections 1509.01, 1509.02, 1509.03, 2700
1509.04, 1509.05, 1509.06, 1509.07, 1509.071, 1509.072, 1509.10, 2701
1509.11, 1509.12, 1509.13, 1509.14, 1509.17, 1509.18, 1509.20, 2702
1509.21, 1509.22, 1509.221, 1509.222, 1509.225, 1509.226, 2703
1509.23, 1509.27, 1509.31, 1509.35, 1509.36, and 5749.06 of the 2704
Revised Code are hereby repealed.2705