Cosponsors:
Senators Gibbs, Stewart, Carey, Harris, Seitz, Hughes, Schaffer, Wilson, Cates, Wagoner, Coughlin
Representatives Domenick, Boose, Hite, Balderson, Adams, J., Adams, R., Amstutz, Batchelder, Beck, Bubp, Carney, Chandler, Coley, Combs, Daniels, DeBose, Derickson, Evans, Gardner, Garland, Garrison, Gerberry, Grossman, Hall, Hottinger, Huffman, Koziura, Letson, Luckie, Martin, McClain, Phillips, Ruhl, Sayre, Snitchler, Stebelton, Szollosi, Uecker, Walter, Weddington, Yuko, Zehringer
Section 1. That sections 1509.01, 1509.02, 1509.03, 1509.04, | 14 |
1509.05, 1509.06, 1509.07, 1509.071, 1509.072, 1509.10, 1509.11, | 15 |
1509.12, 1509.13, 1509.14, 1509.17, 1509.18, 1509.20, 1509.21, | 16 |
1509.22, 1509.221, 1509.222, 1509.225, 1509.226, 1509.23, 1509.24, | 17 |
1509.27, 1509.31, 1509.35, 1509.36, 1565.07, 1565.13, 1571.05, | 18 |
5703.052, 5703.21, 5749.01, 5749.03, 5749.06, 5749.07, 5749.08, | 19 |
5749.10, 5749.12, 5749.13, 5749.14, 5749.15, and 5749.17 be | 20 |
amended and sections 1509.021, 1509.041, 1509.062, 1509.073, | 21 |
1509.181, 1509.19, 1509.34, 1509.50, 1509.60, 1509.61, 1571.18, | 22 |
and 4929.041 of the Revised Code be enacted to read as follows: | 23 |
(K) "Owner," unless referring to a mine, means the person who | 69 |
has the right to drill on a tract or drilling unit, to drill into | 70 |
and produce from a pool, and to appropriate the oil or gas | 71 |
produced therefrom either for the person or for others, except | 72 |
that a person ceases to be an owner with respect to a well when | 73 |
the well has been plugged in accordance with applicable rules | 74 |
adopted and orders issued under this chapter. "Owner" does not | 75 |
include a person who obtains a lease of the mineral rights for oil | 76 |
and gas on a parcel of land if the person does not attempt to | 77 |
produce or produce oil or gas from a well or obtain a permit under | 78 |
this chapter for a well or if the entire interest of a well is | 79 |
transferred to the person in accordance with division (B) of | 80 |
section 1509.31 of the Revised Code. | 81 |
(S) "Safe Drinking Water Act" means the "Safe Drinking Water | 102 |
Act," 88 Stat. 1661 (1974), 42 U.S.C.A. 300(f), as amended by the | 103 |
"Safe Drinking Water Amendments of 1977," 91 Stat. 1393, 42 | 104 |
U.S.C.A. 300(f), the "Safe Drinking Water Act Amendments of 1986," | 105 |
100 Stat. 642, 42 U.S.C.A. 300(f), and the "Safe Drinking Water | 106 |
Act Amendments of 1996," 110 Stat. 1613, 42 U.S.C.A. 300(f), and | 107 |
regulations adopted under those acts. | 108 |
(V) "Waters of the state" means all streams, lakes, ponds, | 117 |
marshes, watercourses, waterways, springs, irrigation systems, | 118 |
drainage systems, and other bodies of water, surface or | 119 |
underground, natural or artificial, that are situated wholly or | 120 |
partially within this state or within its jurisdiction, except | 121 |
those private waters that do not combine or effect a junction with | 122 |
natural surface or underground waters. | 123 |
Sec. 1509.02. There is hereby created in the department of | 201 |
natural resources the division of mineral resources management, | 202 |
which shall be administered by the chief of the division of | 203 |
mineral resources management. The division has sole and exclusive | 204 |
authority to regulate the permitting, location, and spacing of oil | 205 |
and gas wells and production operations within the state. The | 206 |
regulation of oil and gas activities is a matter of general | 207 |
statewide interest that requires uniform statewide regulation, and | 208 |
this chapter and rules adopted under it constitute a comprehensive | 209 |
plan with respect to all aspects of the locating, drilling, and | 210 |
operating of oil and gas wells within this state, including site | 211 |
restoration and disposal of wastes from those wells. Nothing in | 212 |
this section affects the authority granted to the director of | 213 |
transportation and local authorities in section 723.01 or 4513.34 | 214 |
of the Revised Code, provided that the authority granted under | 215 |
those sections shall not be exercised in a manner that | 216 |
discriminates against, unfairly impedes, or obstructs oil and gas | 217 |
activities and operations regulated under this chapter. | 218 |
All moneys collected by the chief pursuant to sections | 222 |
1509.06, 1509.061, 1509.062, 1509.071, 1509.13, 1509.22, and | 223 |
1509.221, 1509.222, 1509.34, and 1509.50, ninety per cent of | 224 |
moneys received by the treasurer of state from the tax levied in | 225 |
divisions (A)(5) and (6) of section 5749.02, all civil penalties | 226 |
paid under section 1509.33, and, notwithstanding any section of | 227 |
the Revised Code relating to the distribution or crediting of | 228 |
fines for violations of the Revised Code, all fines imposed under | 229 |
divisions (A) and (B) of section 1509.99 of the Revised Code and | 230 |
fines imposed under divisions (C) and (D) of section 1509.99 of | 231 |
the Revised Code for all violations prosecuted by the attorney | 232 |
general and for violations prosecuted by prosecuting attorneys | 233 |
that do not involve the transportation of brine by vehicle shall | 234 |
be deposited into the state treasury to the credit of the oil and | 235 |
gas well fund, which is hereby created. Fines imposed under | 236 |
divisions (C) and (D) of section 1509.99 of the Revised Code for | 237 |
violations prosecuted by prosecuting attorneys that involve the | 238 |
transportation of brine by vehicle and penalties associated with a | 239 |
compliance agreement entered into pursuant to this chapter shall | 240 |
be paid to the county treasury of the county where the violation | 241 |
occurred. | 242 |
The fund shall be used solely and exclusively for the | 243 |
purposes enumerated in division (B) of section 1509.071 of the | 244 |
Revised Code, for the expenses of the division associated with the | 245 |
administration of the "Natural Gas Policy Act of 1978," 92 Stat. | 246 |
3358, 15 U.S.C. 3301, and for the division's other functionsthis | 247 |
chapter and Chapter 1571. of the Revised Code and rules adopted | 248 |
under them, and for expenses that are critical and necessary for | 249 |
the protection of human health and safety and the environment | 250 |
related to oil and gas production in this state. The expenses of | 251 |
the division in excess of the moneys available in the fund shall | 252 |
be paid from general revenue fund appropriations to the | 253 |
department. | 254 |
(A) The surface location of a new well or a tank battery of a | 257 |
well shall not be within one hundred fifty feet of an occupied | 258 |
dwelling that is located in an urbanized area unless the owner of | 259 |
the land on which the occupied dwelling is located consents in | 260 |
writing to the surface location of the well or tank battery of a | 261 |
well less than one hundred fifty feet from the occupied dwelling | 262 |
and the chief of the division of mineral resources management | 263 |
approves the written consent of that owner. However, the chief | 264 |
shall not approve the written consent of such an owner when the | 265 |
surface location of a new well or a tank battery of a well will be | 266 |
within one hundred feet of an occupied dwelling that is located in | 267 |
an urbanized area. | 268 |
(B) The surface location of a new well shall not be within | 269 |
one hundred fifty feet from the property line of a parcel of land | 270 |
that is not in the drilling unit of the well if the parcel of land | 271 |
is located in an urbanized area and directional drilling will be | 272 |
used to drill the new well unless the owner of the parcel of land | 273 |
consents in writing to the surface location of the well less than | 274 |
one hundred fifty feet from the property line of the parcel of | 275 |
land and the chief approves the written consent of that owner. | 276 |
However, the chief shall not approve the written consent of such | 277 |
an owner when the surface location of a new well will be less than | 278 |
one hundred feet from the property line of the owner's parcel of | 279 |
land that is not in the drilling unit of the well if the parcel of | 280 |
land is located in an urbanized area and directional drilling will | 281 |
be used. | 282 |
(C) The surface location of a new well shall not be within | 283 |
two hundred feet of an occupied dwelling that is located in an | 284 |
urbanized area and that is located on land that has become part of | 285 |
the drilling unit of the well pursuant to a mandatory pooling | 286 |
order issued under section 1509.27 of the Revised Code unless the | 287 |
owner of the land on which the occupied dwelling is located | 288 |
consents in writing to the surface location of the well at a | 289 |
distance that is less than two hundred feet from the occupied | 290 |
dwelling. However, if the owner of the land on which the occupied | 291 |
dwelling is located provides such written consent, the surface | 292 |
location of the well shall not be within one hundred feet of the | 293 |
occupied dwelling. | 294 |
If an applicant cannot identify an owner of land or if an | 295 |
owner of land is not responsive to attempts by the applicant to | 296 |
contact the owner, the applicant may submit an affidavit to the | 297 |
chief attesting to such an unidentifiable owner or to such | 298 |
unresponsiveness of an owner and attempts by the applicant to | 299 |
contact the owner and include a written request to reduce the | 300 |
distance of the location of the well from the occupied dwelling to | 301 |
less than two hundred feet. If the chief receives such an | 302 |
affidavit and written request, the chief shall reduce the distance | 303 |
of the location of the well from the occupied dwelling to a | 304 |
distance of not less than one hundred feet. | 305 |
(D) Except as otherwise provided in division (L) of this | 306 |
section, the surface location of a new well shall not be within | 307 |
one hundred fifty feet of the property line of a parcel of land | 308 |
that is located in an urbanized area and that has become part of | 309 |
the drilling unit of the well pursuant to a mandatory pooling | 310 |
order issued under section 1509.27 of the Revised Code unless the | 311 |
owner of the land consents in writing to the surface location of | 312 |
the well at a distance that is less than one hundred fifty feet | 313 |
from the owner's property line. However, if the owner of the land | 314 |
provides such written consent, the surface location of the well | 315 |
shall not be within seventy-five feet of the property line of the | 316 |
owner's parcel of land. | 317 |
If an applicant cannot identify an owner of land or if an | 318 |
owner of land is not responsive to attempts by the applicant to | 319 |
contact the owner, the applicant may submit an affidavit to the | 320 |
chief attesting to such an unidentifiable owner or to such | 321 |
unresponsiveness of an owner and attempts by the applicant to | 322 |
contact the owner and include a written request to reduce the | 323 |
distance of the location of the well from the property line of the | 324 |
owner's parcel of land to less than one hundred fifty feet. If the | 325 |
chief receives such an affidavit and written request, the chief | 326 |
shall reduce the distance of the location of the well from the | 327 |
property line to a distance of not less than seventy-five feet. | 328 |
(E) The surface location of a new tank battery of a well | 329 |
shall not be within one hundred fifty feet of an occupied dwelling | 330 |
that is located in an urbanized area and that is located on land | 331 |
that has become part of the drilling unit of the well pursuant to | 332 |
a mandatory pooling order issued under section 1509.27 of the | 333 |
Revised Code unless the owner of the land on which the occupied | 334 |
dwelling is located consents in writing to the location of the | 335 |
tank battery at a distance that is less than one hundred fifty | 336 |
feet from the occupied dwelling. However, if the owner of the land | 337 |
on which the occupied dwelling is located provides such written | 338 |
consent, the location of the tank battery shall not be within one | 339 |
hundred feet of the occupied dwelling. | 340 |
If an applicant cannot identify an owner of land or if an | 341 |
owner of land is not responsive to attempts by the applicant to | 342 |
contact the owner, the applicant may submit an affidavit to the | 343 |
chief attesting to such an unidentifiable owner or to such | 344 |
unresponsiveness of an owner and attempts by the applicant to | 345 |
contact the owner and include a written request to reduce the | 346 |
distance of the location of the tank battery from the occupied | 347 |
dwelling to less than one hundred fifty feet. If the chief | 348 |
receives such an affidavit and written request, the chief shall | 349 |
reduce the distance of the location of the tank battery from the | 350 |
occupied dwelling to a distance of not less than one hundred feet. | 351 |
(F) Except as otherwise provided in division (L) of this | 352 |
section, the location of a new tank battery of a well shall not be | 353 |
within seventy-five feet of the property line of a parcel of land | 354 |
that is located in an urbanized area and that has become part of | 355 |
the drilling unit of the well pursuant to a mandatory pooling | 356 |
order issued under section 1509.27 of the Revised Code unless the | 357 |
owner of the land consents in writing to the location of the tank | 358 |
battery at a distance that is less than seventy-five feet from the | 359 |
owner's property line. However, if the owner of the land provides | 360 |
such written consent, the location of the tank battery shall not | 361 |
be within the property line of the owner's parcel of land. | 362 |
If an applicant cannot identify an owner of land or if an | 363 |
owner of land is not responsive to attempts by the applicant to | 364 |
contact the owner, the applicant may submit an affidavit to the | 365 |
chief attesting to such an unidentifiable owner or to such | 366 |
unresponsiveness of an owner and attempts by the applicant to | 367 |
contact the owner and include a written request to reduce the | 368 |
distance of the location of the tank battery from the property | 369 |
line of the owner's parcel of land to less than seventy-five feet. | 370 |
If the chief receives such an affidavit and written request, the | 371 |
chief shall reduce the distance of the location of the tank | 372 |
battery from the property line, provided that the tank battery | 373 |
shall not be within the property line of the owner's parcel of | 374 |
land. | 375 |
(H) For areas that are not urbanized areas, the surface | 396 |
location of a new well shall not be within one hundred feet of an | 397 |
occupied private dwelling or of a public building that may be used | 398 |
as a place of assembly, education, entertainment, lodging, trade, | 399 |
manufacture, repair, storage, or occupancy by the public. This | 400 |
division does not apply to a building or other structure that is | 401 |
incidental to agricultural use of the land on which the building | 402 |
or other structure is located unless the building or other | 403 |
structure is used as an occupied private dwelling or for retail | 404 |
trade. | 405 |
(I) The surface location of a new well shall not be within | 406 |
one hundred feet of any other well. However, an applicant may | 407 |
submit a written statement to request the chief to authorize a new | 408 |
well to be located at a distance that is less than one hundred | 409 |
feet from another well. If the chief receives such a written | 410 |
statement, the chief may authorize a new well to be located within | 411 |
one hundred feet of another well if the chief determines that the | 412 |
applicant satisfactorily has demonstrated that the location of the | 413 |
new well at a distance that is less than one hundred feet from | 414 |
another well is necessary to reduce impacts to the owner of the | 415 |
land on which the well is to be located or to the surface of the | 416 |
land on which the well is to be located. | 417 |
Sec. 1509.03. (A) The chief of the division of mineral | 445 |
resources management shall adopt, rescind, and amend, in | 446 |
accordance with Chapter 119. of the Revised Code, rules for the | 447 |
administration, implementation, and enforcement of this chapter. | 448 |
The rules shall include an identification of the subjects that the | 449 |
chief shall address when attaching terms and conditions to a | 450 |
permit with respect to a well and production facilities of a well | 451 |
that are located within an urbanized area. The subjects shall | 452 |
include all of the following: | 453 |
(C) The chief or the chief's authorized representative may at | 480 |
any time enter upon lands, public or private, for the purpose of | 481 |
administration or enforcement of this chapter, the rules adopted | 482 |
or orders made thereunder, or terms or conditions of permits or | 483 |
registration certificates issued thereunder and may examine and | 484 |
copy records pertaining to the drilling, conversion, or operation | 485 |
of a well for injection of fluids and logs required by division | 486 |
(C) of section 1509.223 of the Revised Code. No person shall | 487 |
prevent or hinder the chief or the chief's authorized | 488 |
representative in the performance of official duties. If entry is | 489 |
prevented or hindered, the chief or the chief's authorized | 490 |
representative may apply for, and the court of common pleas may | 491 |
issue, an appropriate inspection warrant necessary to achieve the | 492 |
purposes of this chapter within the court's territorial | 493 |
jurisdiction. | 494 |
(E) Orders of the chief denying, suspending, or revoking a | 502 |
registration certificate; approving or denying approval of an | 503 |
application for revision of a registered transporter's plan for | 504 |
disposal; or to implement, administer, or enforce division (A) of | 505 |
section 1509.224 and sections 1509.22, 1509.222, 1509.223, | 506 |
1509.225, and 1509.226 of the Revised Code pertaining to the | 507 |
transportation of brine by vehicle and the disposal of brine so | 508 |
transported are not adjudication orders for purposes of Chapter | 509 |
119. of the Revised Code. The chief shall issue such orders under | 510 |
division (A) or (B) of section 1509.224 of the Revised Code, as | 511 |
appropriate. | 512 |
Sec. 1509.04. (A) The chief of the division of mineral | 519 |
resources management, or the chief's authorized representatives, | 520 |
shall enforce this chapter and the rules, terms and conditions of | 521 |
permits and registration certificates, and orders adopted or | 522 |
issued pursuant thereto, except that any "peace officer," as | 523 |
defined in section 2935.01 of the Revised Code, may arrest for | 524 |
violations of this chapter involving transportation of brine by | 525 |
vehicle. The enforcement authority of the chief includes the | 526 |
authority to enter into compliance agreements. The | 527 |
If the owner fails to comply with a prior enforcement action | 574 |
of the chief, the chief may issue a suspension order without prior | 575 |
notification, but in such an event the chief shall give notice as | 576 |
soon thereafter as practical. Not later than five calendar days | 577 |
after the issuance of an order, the chief shall provide the owner | 578 |
an opportunity to be heard and to present evidence that required | 579 |
records, reports, or logs have been submitted. If the chief, after | 580 |
considering the evidence presented by the owner, determines that | 581 |
the requirements have been satisfied, the chief shall revoke the | 582 |
suspension order. The owner may appeal a suspension order to the | 583 |
court of common pleas of the county in which the activity that is | 584 |
the subject of the suspension order is located. | 585 |
Sec. 1509.05. No person shall drill a new well, drill an | 602 |
existing well any deeper, reopen a well, convert a well to any use | 603 |
other than its original purpose, or plug back a well to a source | 604 |
of supply different from the existing pool, without having a | 605 |
permit to do so issued by the chief of the division of mineral | 606 |
resources management, and until the original permit or a | 607 |
photostatic copy thereof is posted or displayed in a conspicuous | 608 |
and easily accessible place at the well site, with the name, | 609 |
current address, and telephone number of the permit holder and the | 610 |
telephone numbers for fire and emergency medical services | 611 |
maintained on the posted permit or copy. The permit or a copy | 612 |
shall be continuously displayed in suchthat manner at all times | 613 |
during the work authorized by the permit. | 614 |
(9) For an application for a permit to drill a new well | 643 |
within an urbanized area, a sworn statement that the applicant has | 644 |
provided notice by regular mail of the application to the owner of | 645 |
each occupied dwelling unitparcel of real property that is | 646 |
located within five hundred feet of the surface location of the | 647 |
well if the surface location will be less than five hundred feet | 648 |
from the boundary of the drilling unit and more than fifteen | 649 |
occupied dwelling units are located less than five hundred feet | 650 |
from the surface location of the well, excluding any dwelling that | 651 |
is located on real property all or any portion of which is | 652 |
included in the drilling unitand to the executive authority of | 653 |
the municipal corporation or the board of township trustees of the | 654 |
township, as applicable, in which the well is to be located. In | 655 |
addition, the notice shall contain a statement that informs an | 656 |
owner of real property who is required to receive the notice under | 657 |
division (A)(9) of this section that within five days of receipt | 658 |
of the notice, the owner is required to provide notice under | 659 |
section 1509.60 of the Revised Code to each residence in an | 660 |
occupied dwelling that is located on the owner's parcel of real | 661 |
property. The notice shall contain a statement that an application | 662 |
has been filed with the division of mineral resources management, | 663 |
identify the name of the applicant and the proposed well location, | 664 |
include the name and address of the division, and contain a | 665 |
statement that comments regarding the application may be sent to | 666 |
the division. The notice may be provided by hand delivery or | 667 |
regular mail. The identity of the owners of occupied dwelling | 668 |
unitsparcels of real property shall be determined using the tax | 669 |
records of the municipal corporation or county in which the | 670 |
dwelling unita parcel of real property is located as of the date | 671 |
of the notice. | 672 |
(B) The chief shall cause a copy of the weekly circular | 692 |
prepared by the division to be provided to the county engineer of | 693 |
each county that contains active or proposed drilling activity. | 694 |
The weekly circular shall contain, in the manner prescribed by the | 695 |
chief, the names of all applicants for permits, the location of | 696 |
each well or proposed well, the information required by division | 697 |
(A)(11) of this section, and any additional information the chief | 698 |
prescribes. In addition, the chief promptly shall transfer an | 699 |
electronic copy or facsimile, or if those methods are not | 700 |
available to a municipal corporation or township, a copy via | 701 |
regular mail, of a drilling permit application to the clerk of the | 702 |
legislative authority of the municipal corporation or to the clerk | 703 |
of the township in which the well or proposed well is or is to be | 704 |
located if the legislative authority of the municipal corporation | 705 |
or the board of township trustees has asked to receive copies of | 706 |
such applications and the appropriate clerk has provided the chief | 707 |
an accurate, current electronic mailing address or facsimile | 708 |
number, as applicable. | 709 |
In addition to a complete application for a permit that meets | 735 |
the requirements of this section and the permit fee prescribed by | 736 |
this section, a request for expedited review shall be accompanied | 737 |
by a separate nonrefundable filing fee of fivetwo hundred fifty | 738 |
dollars. Upon the filing of a request for expedited review, the | 739 |
chief shall cause the county engineer of the county in which the | 740 |
well is or is to be located to be notified of the filing of the | 741 |
permit application and the request for expedited review by | 742 |
telephone or other means that in the judgment of the chief will | 743 |
provide timely notice of the application and request. The chief | 744 |
shall issue a permit within seven days of the filing of the | 745 |
request unless the chief denies the application by order. | 746 |
Notwithstanding the provisions of this section governing expedited | 747 |
review of permit applications, the chief may refuse to accept | 748 |
requests for expedited review if, in the chief's judgment, the | 749 |
acceptance of the requests would prevent the issuance, within | 750 |
twenty-one days of their filing, of permits for which applications | 751 |
are pending. | 752 |
(F) The chief shall issue an order denying a permit if the | 756 |
chief finds that there is a substantial risk that the operation | 757 |
will result in violations of this chapter or rules adopted under | 758 |
it that will present an imminent danger to public health or safety | 759 |
or damage to the environment, provided that where the chief finds | 760 |
that terms or conditions to the permit can reasonably be expected | 761 |
to prevent such violations, the chief shall issue the permit | 762 |
subject to those terms or conditions, including, if applicable, | 763 |
terms and conditions regarding subjects identified in rules | 764 |
adopted under section 1509.03 of the Revised Code. The issuance of | 765 |
a permit shall not be considered an order of the chief. | 766 |
(H) The chief may order the immediate suspension of drilling, | 793 |
operating, or plugging activities after finding that any person is | 794 |
causing, engaging in, or maintaining a condition or activity that | 795 |
in the chief's judgment presents an imminent danger to public | 796 |
health or safety or results in or is likely to result in immediate | 797 |
substantial damage to natural resources or for nonpayment of a fee | 798 |
required by this section. The chief may order the immediate | 799 |
suspension of the drilling or reopening of a well in a coal | 800 |
bearing township after determining that the drilling or reopening | 801 |
activities present an imminent and substantial threat to public | 802 |
health or safety or to miners' health or safety. Before issuing | 803 |
any such order, the chief shall notify the owner in such manner as | 804 |
in the chief's judgment would provide reasonable notification that | 805 |
the chief intends to issue a suspension order. The chief may issue | 806 |
such an order without prior notification if reasonable attempts to | 807 |
notify the owner have failed, but in such an event notification | 808 |
shall be given as soon thereafter as practical. Within five | 809 |
calendar days after the issuance of the order, the chief shall | 810 |
provide the owner an opportunity to be heard and to present | 811 |
evidence that the condition or activity is not likely to result in | 812 |
immediate substantial damage to natural resources or does not | 813 |
present an imminent danger to public health or safety or to | 814 |
miners' health or safety, if applicable. In the case of activities | 815 |
in a coal bearing township, if the chief, after considering | 816 |
evidence presented by the owner, determines that the activities do | 817 |
not present such a threat, the chief shall revoke the suspension | 818 |
order. Notwithstanding any provision of this chapter, the owner | 819 |
may appeal a suspension order directly to the court of common | 820 |
pleas of the county in which the activity is located or, if in a | 821 |
coal bearing township, to the reclamation commission under section | 822 |
1513.13 of the Revised CodePrior to the issuance of a permit to | 823 |
drill a proposed well that is to be located in an urbanized area, | 824 |
the division shall conduct a site review to identify and evaluate | 825 |
any site-specific terms and conditions that may be attached to the | 826 |
permit. At the site review, a representative of the division shall | 827 |
consider fencing, screening, and landscaping requirements, if any, | 828 |
for similar structures in the community in which the well is | 829 |
proposed to be located. The terms and conditions that are attached | 830 |
to the permit shall include the establishment of fencing, | 831 |
screening, and landscaping requirements for the surface facilities | 832 |
of the proposed well, including a tank battery of the well. | 833 |
Sec. 1509.062. (A)(1) The owner of a well that has not been | 845 |
completed, a well that has not produced within one year after | 846 |
completion, or an existing well that has no reported production | 847 |
for two consecutive reporting periods as reported in accordance | 848 |
with section 1509.11 of the Revised Code shall plug the well in | 849 |
accordance with section 1509.12 of the Revised Code, obtain | 850 |
temporary inactive well status for the well in accordance with | 851 |
this section, or perform another activity regarding the well that | 852 |
is approved by the chief of the division of mineral resources | 853 |
management. | 854 |
(C) Upon receipt of an application for temporary inactive | 893 |
well status, the chief shall review the application and shall | 894 |
either deny the application by issuing an order or approve the | 895 |
application. The chief shall approve the application only if the | 896 |
chief determines that the well that is the subject of the | 897 |
application poses no threat to the health or safety of persons, | 898 |
property, or the environment. If the chief approves the | 899 |
application, the chief shall notify the applicant of the chief's | 900 |
approval. Upon receipt of the chief's approval, the owner shall | 901 |
shut in the well and empty all liquids and gases from all storage | 902 |
tanks, pipelines, and other equipment associated with the well. In | 903 |
addition, the owner shall maintain the well, other equipment | 904 |
associated with the well, and the surface location of the well in | 905 |
a manner that prevents hazards to the health and safety of people | 906 |
and the environment. The owner shall inspect the well at least | 907 |
every six months and submit to the chief within fourteen days | 908 |
after the inspection a record of inspection on a form prescribed | 909 |
and provided by the chief. | 910 |
(D) Not later than thirty days prior to the expiration of | 911 |
temporary inactive well status or a renewal of temporary inactive | 912 |
well status approved by the chief for a well, the owner of the | 913 |
well may submit to the chief an application for renewal of the | 914 |
temporary inactive well status on a form prescribed and provided | 915 |
by the chief. The application shall include a detailed plan that | 916 |
describes the ultimate disposition of the well, the time frames | 917 |
for that disposition, and any other information that the chief | 918 |
determines is necessary. The chief shall either deny an | 919 |
application by order or approve the application. If the chief | 920 |
approves the application, the chief shall notify the owner of the | 921 |
well of the chief's approval. | 922 |
(G) Temporary inactive well status approved by the chief | 933 |
expires one year after the date of approval of the application for | 934 |
temporary inactive well status or production from the well | 935 |
commences, whichever occurs sooner. In addition, a renewal of a | 936 |
temporary inactive well status expires one year after the | 937 |
expiration date of the initial temporary inactive well status or | 938 |
one year after the expiration date of the previous renewal of the | 939 |
temporary inactive well status, as applicable, or production from | 940 |
the well commences, whichever occurs sooner. | 941 |
Sec. 1509.07. An owner of any well, except an exempt | 951 |
Mississippian well or an exempt domestic well, shall obtain | 952 |
liability insurance coverage from a company authorized to do | 953 |
business in this state in an amount of not less than three hundred | 954 |
thousandone million dollars bodily injury coverage and three | 955 |
hundred thousand dollars property damage coverage to pay damages | 956 |
for injury to persons or damage to property caused by the | 957 |
drilling, operation, or plugging of all the owner's wells in this | 958 |
state. However, if any well is located within an urbanized area, | 959 |
the owner shall obtain liability insurance coverage in an amount | 960 |
of not less than three million dollars for bodily injury coverage | 961 |
and property damage coverage to pay damages for injury to persons | 962 |
or damage to property caused by the drilling, operation, or | 963 |
plugging of all of the owner's wells in this state. The owner | 964 |
shall maintain thatthe coverage until all the owner's wells are | 965 |
plugged and abandoned as required by lawor are transferred to an | 966 |
owner who has obtained insurance as required under this section | 967 |
and who is not under a notice of material and substantial | 968 |
violation or under a suspension order. The owner shall provide | 969 |
proof of liability insurance coverage to the chief of the division | 970 |
of mineral resources management upon request. Upon failure of the | 971 |
owner to provide that proof when requested, the chief may order | 972 |
the suspension of any outstanding permits and operations of the | 973 |
owner until the owner provides proof of the required insurance | 974 |
coverage. | 975 |
Except as otherwise provided in this section, an owner of any | 976 |
well, before being issued a permit under section 1509.06 of the | 977 |
Revised Code or before operating or producing from a well, shall | 978 |
execute and file with the division of mineral resources management | 979 |
a surety bond conditioned on compliance with the restoration | 980 |
requirements of section 1509.072, the plugging requirements of | 981 |
section 1509.12, the permit provisions of section 1509.13 of the | 982 |
Revised Code, and all rules and orders of the chief relating | 983 |
thereto, in an amount set by rule of the chief. | 984 |
The owner may deposit with the chief, instead of a surety | 985 |
bond, cash in an amount equal to the surety bond as prescribed | 986 |
pursuant to this section or negotiable certificates of deposit or | 987 |
irrevocable letters of credit, issued by any bank organized or | 988 |
transacting business in this state or by any savings and loan | 989 |
association as defined in section 1151.01 of the Revised Code, | 990 |
having a cash value equal to or greater than the amount of the | 991 |
surety bond as prescribed pursuant to this section. Cash or | 992 |
certificates of deposit shall be deposited upon the same terms as | 993 |
those upon which surety bonds may be deposited. If certificates of | 994 |
deposit are deposited with the chief instead of a surety bond, the | 995 |
chief shall require the bank or savings and loan association that | 996 |
issued any such certificate to pledge securities of a cash value | 997 |
equal to the amount of the certificate that is in excess of the | 998 |
amount insured by any of the agencies and instrumentalities | 999 |
created under the "Federal Deposit Insurance Act," 64 Stat. 873 | 1000 |
(1950), 12 U.S.C. 1811, as amended, and regulations adopted under | 1001 |
it, including at least the federal deposit insurance corporation, | 1002 |
bank insurance fund, and savings association insurance fund. The | 1003 |
securities shall be security for the repayment of the certificate | 1004 |
of deposit. | 1005 |
Instead of a surety bond, the chief may accept proof of | 1010 |
financial responsibility consisting of a sworn financial statement | 1011 |
showing a net financial worth within this state equal to twice the | 1012 |
amount of the bond for which it substitutes and, as may be | 1013 |
required by the chief, a list of producing properties of the owner | 1014 |
within this state or other evidence showing ability and intent to | 1015 |
comply with the law and rules concerning restoration and plugging | 1016 |
that may be required by rule of the chief. The owner of an exempt | 1017 |
domestic or exempt Mississippian well is not required to file | 1018 |
scheduled updates of the financial documents, but shall file | 1019 |
updates of those documents if requested to do so by the chief. The | 1020 |
owner of a nonexempt domestic or nonexempt Mississippian well | 1021 |
shall file updates of the financial documents in accordance with a | 1022 |
schedule established by rule of the chief. The chief, upon | 1023 |
determining that an owner for whom the chief has accepted proof of | 1024 |
financial responsibility instead of bond cannot demonstrate | 1025 |
financial responsibility, shall order that the owner execute and | 1026 |
file a bond or deposit cash, certificates of deposit, or | 1027 |
irrevocable letters of credit as required by this section for the | 1028 |
wells specified in the order within ten days of receipt of the | 1029 |
order. If the order is not complied with, all wells of the owner | 1030 |
that are specified in the order and for which no bond is filed or | 1031 |
cash, certificates of deposit, or letters of credit are deposited | 1032 |
shall be plugged. No owner shall fail or refuse to plug such a | 1033 |
well. Each day on which such a well remains unplugged thereafter | 1034 |
constitutes a separate offense. | 1035 |
Sec. 1509.071. (A) When the chief of the division of mineral | 1060 |
resources management finds that an owner has failed to comply with | 1061 |
a final nonappealable order issued or compliance agreement entered | 1062 |
into under section 1509.04, the restoration requirements of | 1063 |
section 1509.072, plugging requirements of section 1509.12, or | 1064 |
permit provisions of section 1509.13 of the Revised Code, or rules | 1065 |
and orders relating thereto, the chief shall make a finding of | 1066 |
that fact and declare any surety bond filed to ensure compliance | 1067 |
with those sections and rules forfeited in the amount set by rule | 1068 |
of the chief. The chief thereupon shall certify the total | 1069 |
forfeiture to the attorney general, who shall proceed to collect | 1070 |
the amount of the forfeiture. In addition, the chief may require | 1071 |
an owner, operator, producer, or other person who forfeited a | 1072 |
surety bond to post a new surety bond in the amount of fifteen | 1073 |
thousand dollars for a single well, thirty thousand dollars for | 1074 |
two wells, or fifty thousand dollars for three or more wells. | 1075 |
(1) The expenditures may be made pursuant to contracts | 1143 |
entered into by the chief with persons who agree to furnish all of | 1144 |
the materials, equipment, work, and labor as specified and | 1145 |
provided in such a contract for activities associated with the | 1146 |
restoration or plugging of a well as determined by the chief. The | 1147 |
activities may include excavation to uncover a well, geophysical | 1148 |
methods to locate a buried well when clear evidence of leakage | 1149 |
from the well exists, cleanout of wellbores to remove material | 1150 |
from a failed plugging of a well, plugging operations, | 1151 |
installation of vault and vent systems, including associated | 1152 |
engineering certifications and permits, restoration of property, | 1153 |
and repair of damage to property that is caused by such | 1154 |
activities. Expenditures shall not be used for salaries, | 1155 |
maintenance, equipment, or other administrative purposes, except | 1156 |
for costs directly attributed to the plugging of an idle and | 1157 |
orphaned well. Agents or employees of persons contracting with the | 1158 |
chief for thea restoration,or plugging, and injection projects | 1159 |
project may enter upon any land, public or private, on which the | 1160 |
well is located for the purpose of performing the work. Prior to | 1161 |
such entry, the chief shall give to the following persons written | 1162 |
notice of the existence of a contract for a project to restore,or | 1163 |
plug, or inject oil or gas production wastes into a well, the | 1164 |
names of the persons with whom the contract is made, and the date | 1165 |
that the project will commence: the owner of the well, the owner | 1166 |
of the land upon which the well is located, the owner or agents of | 1167 |
adjoining land, and, if the well is located in the same township | 1168 |
as or in a township adjacent to the excavations and workings of a | 1169 |
mine and the owner or lessee of that mine has provided written | 1170 |
notice identifying those townships to the chief at any time during | 1171 |
the immediately preceding three years, the owner or lessee of the | 1172 |
mine. | 1173 |
(2)(a) The owner of the land on which a well is located who | 1174 |
has received notice under division (C)(1)(b) of this section may | 1175 |
plug the well and be reimbursed by the division for the reasonable | 1176 |
cost of plugging the well. In order to plug the well, the | 1177 |
landowner shall submit an application to the chief on a form | 1178 |
prescribed by the chief and approved by the technical advisory | 1179 |
council on oil and gas created in section 1509.38 of the Revised | 1180 |
Code. The application, at a minimum, shall require the landowner | 1181 |
to provide the same information as is required to be included in | 1182 |
the application for a permit to plug and abandon under section | 1183 |
1509.13 of the Revised Code. The application shall be accompanied | 1184 |
by a copy of a proposed contract to plug the well prepared by a | 1185 |
contractor regularly engaged in the business of plugging oil and | 1186 |
gas wells. The proposed contract shall require the contractor to | 1187 |
furnish all of the materials, equipment, work, and labor necessary | 1188 |
to plug the well properly and shall specify the price for doing | 1189 |
the work, including a credit for the equipment appurtenant to the | 1190 |
well that was forfeited to the state through the operation of | 1191 |
division (C)(2) of this section. Expenditures under division | 1192 |
(D)(2)(a) of this section shall be consistent with the | 1193 |
expenditures for activities described in division (D)(1) of this | 1194 |
section. The application also shall be accompanied by the permit | 1195 |
fee required by section 1509.13 of the Revised Code unless the | 1196 |
chief, in the chief's discretion, waives payment of the permit | 1197 |
fee. The application constitutes an application for a permit to | 1198 |
plug and abandon the well for the purposes of section 1509.13 of | 1199 |
the Revised Code. | 1200 |
(b) Within thirty days after receiving an application and | 1201 |
accompanying proposed contract under division (D)(2)(a) of this | 1202 |
section, the chief shall determine whether the plugging would | 1203 |
comply with the applicable requirements of this chapter and | 1204 |
applicable rules adopted and orders issued under it and whether | 1205 |
the cost of the plugging under the proposed contract is | 1206 |
reasonable. If the chief determines that the proposed plugging | 1207 |
would comply with those requirements and that the proposed cost of | 1208 |
the plugging is reasonable, the chief shall notify the landowner | 1209 |
of that determination and issue to the landowner a permit to plug | 1210 |
and abandon the well under section 1509.13 of the Revised Code. | 1211 |
Upon approval of the application and proposed contract, the chief | 1212 |
shall transfer ownership of the equipment appurtenant to the well | 1213 |
to the landowner. The chief may disapprove an application | 1214 |
submitted under division (D)(2)(a) of this section if the chief | 1215 |
determines that the proposed plugging would not comply with the | 1216 |
applicable requirements of this chapter and applicable rules | 1217 |
adopted and orders issued under it, that the cost of the plugging | 1218 |
under the proposed contract is unreasonable, or that the proposed | 1219 |
contract is not a bona fide, arms length contract. | 1220 |
(d) Upon determining that the plugging has been completed | 1227 |
within the time required by division (D)(2)(c) of this section and | 1228 |
has been completed in compliance with the applicable requirements | 1229 |
of this chapter and applicable rules adopted and orders issued | 1230 |
under it, the chief shall reimburse the landowner for the cost of | 1231 |
the plugging as set forth in the proposed contract approved by the | 1232 |
chief. The reimbursement shall be paid from the oil and gas well | 1233 |
fund. If the chief determines that the plugging was not completed | 1234 |
within the required time or was not completed in accordance with | 1235 |
the applicable requirements, the chief shall not reimburse the | 1236 |
landowner for the cost of the plugging, and the landowner or the | 1237 |
contractor, as applicable, promptly shall transfer back to this | 1238 |
state title to and possession of the equipment appurtenant to the | 1239 |
well that previously was transferred to the landowner under | 1240 |
division (D)(2)(b) of this section. If any such equipment was | 1241 |
removed from the well during the plugging and sold, the landowner | 1242 |
shall pay to the chief the proceeds from the sale of the | 1243 |
equipment, and the chief promptly shall pay the moneys so received | 1244 |
to the treasurer of state for deposit into the oil and gas well | 1245 |
fund. | 1246 |
(E) Expenditures from the oil and gas well fund for the | 1254 |
purpose of division (B)(2) of this section may be made pursuant to | 1255 |
contracts entered into by the chief with persons who agree to | 1256 |
furnish all of the materials, equipment, work, and labor as | 1257 |
specified and provided in such a contract. The competitive bidding | 1258 |
requirements of Chapter 153. of the Revised Code do not apply if | 1259 |
the chief reasonably determines that correction of the applicable | 1260 |
health or safety risk requires immediate action. The chief, | 1261 |
designated representatives of the chief, and agents or employees | 1262 |
of persons contracting with the chief under this division may | 1263 |
enter upon any land, public or private, for the purpose of | 1264 |
performing the work. | 1265 |
(G) The owner of land on which a well is located who has | 1273 |
received notice under division (C)(1)(b) of this section, in lieu | 1274 |
of plugging the well in accordance with division (D)(2) of this | 1275 |
section, may cause ownership of the well to be transferred to an | 1276 |
owner who is lawfully doing business in this state and who has met | 1277 |
the financial responsibility requirements established under | 1278 |
section 1509.07 of the Revised Code, subject to the approval of | 1279 |
the chief. The transfer of ownership also shall be subject to the | 1280 |
landowner's filing the appropriate forms required under
this | 1281 |
chaptersection 1509.31 of the Revised Code and providing to the | 1282 |
chief sufficient information to demonstrate the landowner's or | 1283 |
owner's right to produce a formation or formations. That | 1284 |
information may include a deed, a lease, or other documentation of | 1285 |
ownership or property rights. | 1286 |
(A) Within five monthsfourteen days after the date upon | 1311 |
which the
surface drilling of a well is commencedcompleted to | 1312 |
total depth in an urbanized area and within two months after the | 1313 |
date upon which the drilling of a well is completed in all other | 1314 |
areas, the owner or the owner's agent, in accordance with the | 1315 |
restoration plan filed under division (A)(10) of section 1509.06 | 1316 |
of the Revised Code, shall fill all the pits for containing brine, | 1317 |
and other waste substances resulting, obtained, or produced in | 1318 |
connection with exploration or drilling for, or production of, oil | 1319 |
or gas, or oil that are not required by other state or federal law | 1320 |
or regulation, and remove all concrete bases, drilling supplies, | 1321 |
and drilling equipment. Within nineUnless the chief of the | 1322 |
division of mineral resources management approves a longer time | 1323 |
period, within three months after the date upon which the surface | 1324 |
drilling of a well is commenced in an urbanized area and within | 1325 |
six months after the date upon which the surface drilling of a | 1326 |
well is commenced in all other areas, the owner or the owner's | 1327 |
agent shall grade or terrace and plant, seed, or sod the area | 1328 |
disturbed that is not required in production of the well where | 1329 |
necessary to bind the soil and prevent substantial erosion and | 1330 |
sedimentation. If the chief of the division of mineral resources | 1331 |
management finds that a pit used for containing brine, other waste | 1332 |
substances, or oil is in violation of section 1509.22 of the | 1333 |
Revised Code or rules adopted or orders issued under it, the chief | 1334 |
may require the pit to be emptied and closed before expiration of | 1335 |
the five-monthfourteen-day or three-month restoration period. | 1336 |
(B) Within three months after a well that has produced oil or | 1337 |
gas is plugged in an urbanized area and within six months after a | 1338 |
well that has produced oil or gas is plugged in all other areas, | 1339 |
or after the plugging of a dry hole, unless the chief approves a | 1340 |
longer time period, the owner or the owner's agent shall remove | 1341 |
all production and storage structures, supplies, and equipment, | 1342 |
and any oil, salt water, and debris, and fill any remaining | 1343 |
excavations. Within that period the owner or the owner's agent | 1344 |
shall grade or terrace and plant, seed, or sod the area disturbed | 1345 |
where necessary to bind the soil and prevent substantial erosion | 1346 |
and sedimentation. | 1347 |
The owner shall be released from responsibility to perform | 1348 |
any or all restoration requirements of this section on any part or | 1349 |
all of the area disturbed upon the filing of a request for a | 1350 |
waiver with and obtaining the written approval of the chief, which | 1351 |
request shall be signed by the surface owner to certify the | 1352 |
approval of the surface owner of the release sought. The chief | 1353 |
shall approve the request unless the chief finds upon inspection | 1354 |
that the waiver would be likely to result in substantial damage to | 1355 |
adjoining property, substantial contamination of surface or | 1356 |
underground water, or substantial erosion or sedimentation. | 1357 |
(9) If applicable, the type and volume of fluid used to | 1412 |
stimulate the reservoir of the well, the reservoir breakdown | 1413 |
pressure, the method used for the containment of fluids recovered | 1414 |
from the fracturing of the well, the methods used for the | 1415 |
containment of fluids when pulled from the wellbore from swabbing | 1416 |
the well, the average pumping rate of the well, and the name of | 1417 |
the person that performed the well stimulation. In addition, the | 1418 |
owner shall include a copy of the log from the stimulation of the | 1419 |
well, a copy of the invoice for each of the procedures and methods | 1420 |
described in division (A)(9) of this section that were used on a | 1421 |
well, and a copy of the pumping pressure and rate graphs. However, | 1422 |
the owner may redact from the copy of each invoice that is | 1423 |
required to be included under division (A)(9) of this section the | 1424 |
costs of and charges for the procedures and methods described in | 1425 |
division (A)(9) of this section that were used on a well. | 1426 |
Any(B)(1) Not later than sixty days after the completion of | 1435 |
the drilling operations to the proposed total depth, the owner | 1436 |
shall file all wireline electric log, or radioactivity log, or | 1437 |
other geophysical log, if made in connection with the well shall | 1438 |
be filedlogs with the division of mineral resources management | 1439 |
and the chief shall transmit such logs electronically, if | 1440 |
available, to the division of geological survey. Such logs may be | 1441 |
retained by the owner for a period of not more than six months, or | 1442 |
such additional time as may be granted by the chief in writing, | 1443 |
after the completion of the well substantially to the depth shown | 1444 |
in the application required by section 1509.06 of the Revised | 1445 |
Code. | 1446 |
Sec. 1509.11. The owner of any well producing or capable of | 1469 |
producing oil or gas shall file with the chief of the division of | 1470 |
mineral resources management, on or before the
firstthirty-first | 1471 |
day of March, a statement of production of oil, gas, and brine for | 1472 |
the last preceding calendar year in such form as the chief may | 1473 |
prescribe.
An owner that has more than one hundred wells in this | 1474 |
state shall submit electronically the statement of production in a | 1475 |
format that is approved by the chief. The chief shall include on | 1476 |
the form, at the minimum, a request for the submittal of the | 1477 |
information that a person who is regulated under this chapter is | 1478 |
required to submit under the "Emergency Planning and Community | 1479 |
Right-To-Know Act of 1986," 100 Stat. 1728, 42 U.S.C.A. 11001, and | 1480 |
regulations adopted under it, and that the division does not | 1481 |
obtain through other reporting mechanisms. | 1482 |
Sec. 1509.12. (A) No owner of any well shall construct a | 1483 |
well, or permit defective casing or tubing in sucha well to leak | 1484 |
fluids or gasgases, that may causecauses damage to other | 1485 |
permeable strata, underground sources of drinking water, or the | 1486 |
surface of the land or that threatens the public health and safety | 1487 |
or the environment. Upon
notice fromthe discovery that the | 1488 |
casing in a well is defective or that a well was not adequately | 1489 |
constructed, the owner of the well shall notify the chief of the | 1490 |
division of mineral resources management within twenty-four hours | 1491 |
of the discovery,
suchand the owner shall immediately repair | 1492 |
such tubing orthe casing, correct the construction inadequacies, | 1493 |
or plug and abandon
suchthe well. | 1494 |
(C) In case of oil or gas wells abandoned prior to September | 1513 |
1,
19511978, the board of county commissioners of the county in | 1514 |
which
suchthe wells are located may submit to the electors of the | 1515 |
county the question of establishing a special fund, by special | 1516 |
general levy,
by general bond issue, or out of current funds, | 1517 |
which shall be approved by a majority of the electors voting upon | 1518 |
suchthat question for the purpose of plugging suchthe wells. The | 1519 |
fund shall be administered by the board and the plugging of oil | 1520 |
and gas wells shall be under the supervision of the chief, and the | 1521 |
board shall let contracts for suchthat purpose, provided that | 1522 |
suchthe fund shall not be used for the purpose of plugging oil | 1523 |
and gas wells that were abandoned subsequent to September 1,
1951 | 1524 |
1978. | 1525 |
(C) If oil or gas has been produced from the well, the | 1550 |
application shall be accompanied by a fee of two hundred fifty | 1551 |
dollars. If a
new dry well has been drilled in accordance with law | 1552 |
and the permit is still valid, the permit holder may receive | 1553 |
approval to plug the well from a mineral resources inspector or, | 1554 |
if the well is located in a coal bearing township, both a deputy | 1555 |
mine inspector and a mineral resources inspector so that the well | 1556 |
can be plugged and abandoned without undue delay. Unless waived by | 1557 |
a mineral resources inspector, the owner of a well or the owner's | 1558 |
authorized representative shall notify a mineral resources | 1559 |
inspector at least twenty-four hours prior to the commencement of | 1560 |
the plugging of a well. No well shall be plugged and abandoned | 1561 |
without a mineral resources inspector present unless permission | 1562 |
has been granted by the chief. The owner of thea well that has | 1563 |
produced oil or gas shall give written notice at the same time to | 1564 |
the owner of the land upon which the well is located, the owners | 1565 |
or agents of adjoining land, adjoining well owners or agents, and, | 1566 |
ifand to all lessors that receive gas from the well pursuant to a | 1567 |
lease agreement. If the well penetrates or passes within one | 1568 |
hundred feet of the excavations and workings of a mine, the owner | 1569 |
of the well shall give written notice to the owner or lessee of | 1570 |
that mine, of the well owner's intention to abandon the well and | 1571 |
of the time when the well owner will be prepared to commence | 1572 |
plugging it. | 1573 |
(D) An applicant may file a request with the chief for | 1574 |
expedited review of an application for a permit to plug and | 1575 |
abandon a well. The chief may refuse to accept a request for | 1576 |
expedited review if, in the chief's judgment, acceptance of the | 1577 |
request will prevent the issuance, within twenty-one days of | 1578 |
filing, of permits for which applications filed under section | 1579 |
1509.06 of the Revised Code are pending. In addition to a complete | 1580 |
application for a permit that meets the requirements of this | 1581 |
section and the permit fee prescribed by this section, if | 1582 |
applicable, a request shall be accompanied by a nonrefundable | 1583 |
filing fee of twofive hundred fifty dollars unless the chief has | 1584 |
ordered the applicant to plug and abandon the well. When a request | 1585 |
for expedited review is filed, the chief shall immediately begin | 1586 |
to process the application and shall issue a permit within seven | 1587 |
days of the filing of the request unless the chief, by order, | 1588 |
denies the application. | 1589 |
Sec. 1509.17. Any person who drills a well shall, before | 1622 |
drilling into the principal or major producing formation therein, | 1623 |
encase such well with good and sufficient wrought iron or steel | 1624 |
casing so as to exclude all surface, fresh, or salt water from any | 1625 |
part of such well penetrating the oil or gas bearing sand or rock | 1626 |
or fresh water strata. The method of placing such casing shall be | 1627 |
approved by the chief of the division of mineral resources | 1628 |
management and shall be in accord with the most approved method | 1629 |
used in the operation of such type of well. The chief may, in lieu | 1630 |
of the casing method outlined in this section, accept adequate | 1631 |
mudding methods with prepared clay in the annular space behind | 1632 |
such casing in sufficient quantities to shut off all gas or oil | 1633 |
and that will exclude all surface, fresh, or salt water from any | 1634 |
part of such well penetrating the oil, gas, or mineral bearing | 1635 |
formation, or fresh water strata. | 1636 |
(A) A well shall be constructed in a manner that is approved | 1644 |
by the chief of the division of mineral resources management as | 1645 |
specified in the permit using materials that comply with industry | 1646 |
standards for the type and depth of the well and the anticipated | 1647 |
fluid pressures that are associated with the well. In addition, a | 1648 |
well shall be constructed using sufficient steel or conductor | 1649 |
casing in a manner that supports unconsolidated sediments, that | 1650 |
protects and isolates all underground sources of drinking water as | 1651 |
defined by the Safe Drinking Water Act, and that provides a base | 1652 |
for a blowout preventer or other well control equipment that is | 1653 |
necessary to control formation pressures and fluids during the | 1654 |
drilling of the well and other operations to complete the well. | 1655 |
Using steel production casing with sufficient cement, an oil and | 1656 |
gas reservoir shall be isolated during well stimulation and during | 1657 |
the productive life of the well. In addition, sour gas zones and | 1658 |
gas bearing zones that have sufficient pressure and volume to | 1659 |
over-pressurize the surface production casing annulus resulting in | 1660 |
annular overpressurization shall be isolated using approved | 1661 |
cementing, casing, and well construction practices. However, | 1662 |
isolating an oil and gas reservoir shall not exclude open-hole | 1663 |
completion. A well shall not be perforated for purposes of well | 1664 |
stimulation in any zone that is located around casing that | 1665 |
protects underground sources of drinking water without written | 1666 |
authorization from the chief in accordance with division (D) of | 1667 |
this section. When the well penetrates the excavations of a mine, | 1668 |
the casing shall remain intact as provided in section 1509.18 of | 1669 |
the Revised Code and be plugged and abandoned in accordance with | 1670 |
section 1509.15 of the Revised Code. | 1671 |
If a well is to be drilled within the limits of a mining | 1698 |
operation that may penetrate the excavation of a mine, the hole | 1699 |
shall be reduced approximately fifteen feet above the roof of the | 1700 |
mine. If roof conditions at the mine warrant, the hole shall be | 1701 |
reduced in the rock formation immediately above suchthe mine, and | 1702 |
a string of casing placed upon the shoulder so as to shut off all | 1703 |
water, then drilling shall be continued to a point approximately | 1704 |
thirty feet below the floor of the mine and another string of | 1705 |
casing set. Both strings of casing shall be approximately the same | 1706 |
diameter as the diameter of the hole. | 1707 |
If no water is encountered between the bottom of the drive | 1708 |
pipe and the approximate casing shoulder above the roof of such | 1709 |
the mine, in lieu of the casing method outlined above, it is | 1710 |
permissible to use the following casing method: the hole shall be | 1711 |
drilled thirty feet below the floor of the mine and a string of | 1712 |
casing shall be extended from the surface to a point thirty feet | 1713 |
below the floor of the mine with a packer of sufficient size | 1714 |
attached to suchthe string of casing. SuchThe packer shall be | 1715 |
placed so that it will be below all water and will be located in | 1716 |
the rock formation immediately above suchthe mine and shall | 1717 |
prevent water or destructive matter from entering therein. Then | 1718 |
the annular space above suchthe packer between the casing and | 1719 |
well wall shall be filled with prepared clay a minimum distance of | 1720 |
fifty feet. | 1721 |
In wells penetrating the excavation of a mine, the casing | 1736 |
shall be enclosed, if possible, with a column extending from the | 1737 |
floor to the roof of suchthe mine, built of brick or other | 1738 |
suitable material, subject to the approval of the chief of the | 1739 |
division of mineral resources management. If the chief finds the | 1740 |
method prescribed in this section unsafe, inadequate, or not | 1741 |
suitable, the chief shall require suchthe method to be altered in | 1742 |
such a manner that it will be safe. | 1743 |
(B) Before issuing an order under division (A) of this | 1750 |
section, the chief shall notify the owner in any manner that the | 1751 |
chief determines would provide reasonable notification of the | 1752 |
chief's intent to issue a suspension order. However, the chief may | 1753 |
order the immediate suspension of the drilling or reopening of a | 1754 |
well in a coal bearing township without prior notification if the | 1755 |
chief has made reasonable attempts to notify the owner and the | 1756 |
attempts have failed. If the chief orders the immediate suspension | 1757 |
of such drilling or reopening, the chief shall provide the owner | 1758 |
notice of the order as soon as practical. | 1759 |
(C) Not later than five days after the issuance of an order | 1760 |
under division (A) of this section to immediately suspend the | 1761 |
drilling or reopening of a well in a coal bearing township, the | 1762 |
chief shall provide the owner an opportunity to be heard and to | 1763 |
present evidence that the drilling or reopening activities will | 1764 |
not likely result in an imminent and substantial threat to public | 1765 |
health or safety or to a miner's health or safety, as applicable. | 1766 |
If the chief, after considering all evidence presented by the | 1767 |
owner, determines that the activities do not present such a | 1768 |
threat, the chief shall revoke the suspension order. | 1769 |
Sec. 1509.19. An owner who elects to stimulate a well shall | 1774 |
stimulate the well in a manner that will not endanger underground | 1775 |
sources of drinking water. Not later than twenty-four hours before | 1776 |
commencing the stimulation of a well, the owner or the owner's | 1777 |
authorized representative shall notify a mineral resources | 1778 |
inspector. If during the stimulation of a well damage to the | 1779 |
production casing or cement occurs and results in the circulation | 1780 |
of fluids from the annulus of the surface production casing, the | 1781 |
owner shall immediately terminate the stimulation of the well and | 1782 |
notify the chief of the division of mineral resources management. | 1783 |
If the chief determines that the casing and the cement may be | 1784 |
remediated in a manner that isolates the oil and gas bearing zones | 1785 |
of the well, the chief may authorize the completion of the | 1786 |
stimulation of the well. If the chief determines that the | 1787 |
stimulation of a well resulted in irreparable damage to the well, | 1788 |
the chief shall order that the well be plugged and abandoned | 1789 |
within thirty days of the issuance of the order. | 1790 |
Sec. 1509.21. No person shall, without first having obtained | 1807 |
a permit from the chief of the division of mineral resources | 1808 |
management, conduct secondary or additional recovery operations, | 1809 |
including any underground injection of fluids or carbon dioxide | 1810 |
for the secondary or tertiary recovery of oil or natural gas or | 1811 |
for the storage of hydrocarbons that are liquid at standard | 1812 |
temperature or pressure, unless a rule of the chief expressly | 1813 |
authorizes such operations without a permit. SuchThe permit shall | 1814 |
be in addition to any permit required by section 1509.05 of the | 1815 |
Revised Code. Secondary or additional recovery operations shall be | 1816 |
conducted in accordance with rules and orders of the chief and any | 1817 |
terms or conditions of the permit authorizing such operations. In | 1818 |
addition, the chief may authorize tests to evaluate whether fluids | 1819 |
or carbon dioxide may be injected in a reservoir and to determine | 1820 |
the maximum allowable injection pressure. The tests shall be | 1821 |
conducted in accordance with methods prescribed in rules of the | 1822 |
chief or conditions of the permit. Rules adopted under this | 1823 |
section shall include provisions regarding applications for and | 1824 |
the issuance of permits; the terms and conditions of permits; | 1825 |
entry to conduct inspections and to examine records to ascertain | 1826 |
compliance with this section and rules, orders, and terms and | 1827 |
conditions of permits adopted or issued thereunder; the provision | 1828 |
and maintenance of information through monitoring, recordkeeping, | 1829 |
and reporting; and other provisions in furtherance of the goals of | 1830 |
this section and the Safe Drinking Water Act. To implement the | 1831 |
goals of the Safe Drinking Water Act, the chief shall not issue a | 1832 |
permit for the underground injection of fluids for the secondary | 1833 |
or tertiary recovery of oil or natural gas or for the storage of | 1834 |
hydrocarbons that are liquid at standard temperature and pressure, | 1835 |
unless the chief concludes that the applicant has demonstrated | 1836 |
that the injection will not result in the presence of any | 1837 |
contaminant in underground water that supplies or can be | 1838 |
reasonably expected to supply any public water system, such that | 1839 |
the presence of any such contaminant may result in the system's | 1840 |
not complying with any national primary drinking water regulation | 1841 |
or may otherwise adversely affect the health of persons. Rules, | 1842 |
orders, and terms or conditions of permits adopted or issued under | 1843 |
this section shall be construed to be no more stringent than | 1844 |
required for compliance with the Safe Drinking Water Act, unless | 1845 |
essential to ensure that underground sources of drinking water | 1846 |
will not be endangered. | 1847 |
(1) Brine from any well except an exempt Mississippian well | 1871 |
shall be disposed of only by injection into an underground | 1872 |
formation, including annular disposal if approved by rule of the | 1873 |
chief, which injection shall be subject to division (D) of this | 1874 |
section; by surface application in accordance with section | 1875 |
1509.226 of the Revised Code; in association with a method of | 1876 |
enhanced recovery as provided in section 1509.21 of the Revised | 1877 |
Code; or by other methods approved by the chief for testing or | 1878 |
implementing a new technology or method of disposal. Brine from | 1879 |
exempt Mississippian wells shall not be discharged directly into | 1880 |
the waters of the state. | 1881 |
(D) No person, without first having obtained a permit from | 1906 |
the chief, shall inject brine or other waste substances resulting | 1907 |
from, obtained from, or produced in connection with oil or gas | 1908 |
drilling, exploration, or production into an underground formation | 1909 |
unless a rule of the chief expressly authorizes the injection | 1910 |
without a permit. The permit shall be in addition to any permit | 1911 |
required by section 1509.05 of the Revised Code, and the permit | 1912 |
application shall be accompanied by a permit fee of one hundred | 1913 |
thousand dollars. The chief shall adopt rules in accordance with | 1914 |
Chapter 119. of the Revised Code regarding the injection into | 1915 |
wells of brine and other waste substances resulting from, obtained | 1916 |
from, or produced in connection with oil or gas drilling, | 1917 |
exploration, or production. The rules may authorize tests to | 1918 |
evaluate whether fluids or carbon dioxide may be injected in a | 1919 |
reservoir and to determine the maximum allowable injection | 1920 |
pressure, which shall be conducted in accordance with methods | 1921 |
prescribed in the rules or in accordance with conditions of the | 1922 |
permit. In addition, the rules shall include provisions regarding | 1923 |
applications for and issuance of the permits required by this | 1924 |
division; entry to conduct inspections and to examine and copy | 1925 |
records to ascertain compliance with this division and rules, | 1926 |
orders, and terms and conditions of permits adopted or issued | 1927 |
under it; the provision and maintenance of information through | 1928 |
monitoring, recordkeeping, and reporting; and other provisions in | 1929 |
furtherance of the goals of this section and the Safe Drinking | 1930 |
Water Act. To implement the goals of the Safe Drinking Water Act, | 1931 |
the chief shall not issue a permit for the injection of brine or | 1932 |
other waste substances resulting from, obtained from, or produced | 1933 |
in connection with oil or gas drilling, exploration, or production | 1934 |
unless the chief concludes that the applicant has demonstrated | 1935 |
that the injection will not result in the presence of any | 1936 |
contaminant in ground water that supplies or can reasonably be | 1937 |
expected to supply any public water system, such that the presence | 1938 |
of the contaminant may result in the system's not complying with | 1939 |
any national primary drinking water regulation or may otherwise | 1940 |
adversely affect the health of persons. This division and rules, | 1941 |
orders, and terms and conditions of permits adopted or issued | 1942 |
under it shall be construed to be no more stringent than required | 1943 |
for compliance with the Safe Drinking Water Act unless essential | 1944 |
to ensure that underground sources of drinking water will not be | 1945 |
endangered. | 1946 |
(F) An owner shall replace the water supply of the holder of | 1954 |
an interest in real property who obtains all or part of the | 1955 |
holder's supply of water for domestic, agricultural, industrial, | 1956 |
or other legitimate use from an underground or surface source | 1957 |
where the supply has been substantially disrupted by | 1958 |
contamination, diminution, or interruption proximately resulting | 1959 |
from the owner's oil or gas operation, or the owner may elect to | 1960 |
compensate the holder of the interest in real property for the | 1961 |
difference between the fair market value of the interest before | 1962 |
the damage occurred to the water supply and the fair market value | 1963 |
after the damage occurred if the cost of replacing the water | 1964 |
supply exceeds this difference in fair market values. However, | 1965 |
during the pendency of any order issued under this division, the | 1966 |
owner shall obtain for the holder or shall reimburse the holder | 1967 |
for the reasonable cost of obtaining a water supply from the time | 1968 |
of the contamination, diminution, or interruption by the operation | 1969 |
until the owner has complied with an order of the chief for | 1970 |
compliance with this division or such an order has been revoked or | 1971 |
otherwise becomes not effective. If the owner elects to pay the | 1972 |
difference in fair market values, but the owner and the holder | 1973 |
have not agreed on the difference within thirty days after the | 1974 |
chief issues an order for compliance with this division, within | 1975 |
ten days after the expiration of that thirty-day period, the owner | 1976 |
and the chief each shall appoint an appraiser to determine the | 1977 |
difference in fair market values, except that the holder of the | 1978 |
interest in real property may elect to appoint and compensate the | 1979 |
holder's own appraiser, in which case the chief shall not appoint | 1980 |
an appraiser. The two appraisers appointed shall appoint a third | 1981 |
appraiser, and within thirty days after the appointment of the | 1982 |
third appraiser, the three appraisers shall hold a hearing to | 1983 |
determine the difference in fair market values. Within ten days | 1984 |
after the hearing, the appraisers shall make their determination | 1985 |
by majority vote and issue their final determination of the | 1986 |
difference in fair market values. The chief shall accept a | 1987 |
determination of the difference in fair market values made by | 1988 |
agreement of the owner and holder or by appraisers under this | 1989 |
division and shall make and dissolve orders accordingly. This | 1990 |
division does not affect in any way the right of any person to | 1991 |
enforce or protect, under applicable law, the person's interest in | 1992 |
water resources affected by an oil or gas operation. | 1993 |
Sec. 1509.221. (A) No person, without first having obtained | 2000 |
a permit from the chief of the division of mineral resources | 2001 |
management, shall drill a well or inject a substance into a well | 2002 |
for the exploration for or extraction of minerals or energy, other | 2003 |
than oil or natural gas, including, but not limited to, the mining | 2004 |
of sulfur by the Frasch process, the solution mining of minerals, | 2005 |
the in situ combustion of fossil fuel, or the recovery of | 2006 |
geothermal energy to produce electric power, unless a rule of the | 2007 |
chief expressly authorizes the activity without a permit. The | 2008 |
permit shall be in addition to any permit required by section | 2009 |
1509.05 of the Revised Code. The chief shall adopt rules in | 2010 |
accordance with Chapter 119. of the Revised Code governing the | 2011 |
issuance of permits under this section. The rules shall include | 2012 |
provisions regarding the matters the applicant for a permit shall | 2013 |
demonstrate to establish eligibility for a permit; the form and | 2014 |
content of applications for permits; the terms and conditions of | 2015 |
permits; entry to conduct inspections and to examine and copy | 2016 |
records to ascertain compliance with this section and rules, | 2017 |
orders, and terms and conditions of permits adopted or issued | 2018 |
thereunder; provision and maintenance of information through | 2019 |
monitoring, recordkeeping, and reporting; and other provisions in | 2020 |
furtherance of the goals of this section and the Safe Drinking | 2021 |
Water Act. To implement the goals of the Safe Drinking Water Act, | 2022 |
the chief shall not issue a permit under this section, unless the | 2023 |
chief concludes that the applicant has demonstrated that the | 2024 |
drilling, injection of a substance, and extraction of minerals or | 2025 |
energy will not result in the presence of any contaminant in | 2026 |
underground water that supplies or can reasonably be expected to | 2027 |
supply any public water system, such that the presence of the | 2028 |
contaminant may result in the system's not complying with any | 2029 |
national primary drinking water regulation or may otherwise | 2030 |
adversely affect the health of persons. The chief may issue, | 2031 |
without a prior adjudication hearing, orders requiring compliance | 2032 |
with this section and rules, orders, and terms and conditions of | 2033 |
permits adopted or issued thereunder. This section and rules, | 2034 |
orders, and terms and conditions of permits adopted or issued | 2035 |
thereunder shall be construed to be no more stringent than | 2036 |
required for compliance with the Safe Drinking Water Act, unless | 2037 |
essential to ensure that underground sources of drinking water | 2038 |
will not be endangered. | 2039 |
(2) The maximum number of barrels of substance per injection | 2054 |
well in a calendar year on which a fee may be levied under | 2055 |
division (B) of this section is five hundred thousand. If in a | 2056 |
calendar year the owner of an injection well receives more than | 2057 |
five hundred thousand barrels of substance to be injected in the | 2058 |
owner's well and if the owner receives at least one substance that | 2059 |
is produced within the division's regulatory district in which the | 2060 |
well is located or within an adjoining regulatory district and at | 2061 |
least one substance that is not produced within the division's | 2062 |
regulatory district in which the well is located or within an | 2063 |
adjoining regulatory district, the fee shall be calculated first | 2064 |
on all of the barrels of substance that are not produced within | 2065 |
the division's regulatory district in which the well is located or | 2066 |
within an adjoining district at the rate established in division | 2067 |
(B)(2) of this section. The fee then shall be calculated on the | 2068 |
barrels of substance that are produced within the division's | 2069 |
regulatory district in which the well is located or within an | 2070 |
adjoining district at the rate established in division (B)(1) of | 2071 |
this section until the maximum number of barrels established in | 2072 |
division (B)(2) of this section has been attained. | 2073 |
(C) In an action under section 1509.04 or 1509.33 of the | 2088 |
Revised Code to enforce this section, the court shall grant | 2089 |
preliminary and permanent injunctive relief and impose a civil | 2090 |
penalty upon the showing that the person against whom the action | 2091 |
is brought has violated, is violating, or will violate this | 2092 |
section or rules, orders, or terms or conditions of permits | 2093 |
adopted or issued thereunder. The court shall not require, prior | 2094 |
to granting such preliminary and permanent injunctive relief or | 2095 |
imposing a civil penalty, proof that the violation was, is, or | 2096 |
will be the result of intentional conduct or negligence. In any | 2097 |
such action, any person may intervene as a plaintiff upon the | 2098 |
demonstration that the person has an interest that is or may be | 2099 |
adversely affected by the activity for which injunctive relief or | 2100 |
a civil penalty is sought. | 2101 |
(2) No more than one registration certificate shall be | 2108 |
required of any business entity. Registration certificates issued | 2109 |
under this section are not transferable. An applicant shall file | 2110 |
an application with the chief, containing such information in such | 2111 |
form as the chief prescribes, but including a plan for disposal | 2112 |
that provides for compliance with the requirements of this chapter | 2113 |
and rules of the chief pertaining to the transportation of brine | 2114 |
by vehicle and the disposal of brine so transported and that lists | 2115 |
all disposal sites that the applicant intends to use, the bond | 2116 |
required by section 1509.225 of the Revised Code, and a | 2117 |
certificate issued by an insurance company authorized to do | 2118 |
business in this state certifying that the applicant has in force | 2119 |
a liability insurance policy in an amount not less than three | 2120 |
hundred thousand dollars bodily injury coverage and three hundred | 2121 |
thousand dollars property damage coverage to pay damages for | 2122 |
injury to persons or property caused by the collecting, handling, | 2123 |
transportation, or disposal of brine. The policy shall be | 2124 |
maintained in effect during the term of the registration | 2125 |
certificate. The policy or policies providing the coverage shall | 2126 |
require the insurance company to give notice to the chief if the | 2127 |
policy or policies lapse for any reason. Upon such termination of | 2128 |
the policy, the chief may suspend the registration certificate | 2129 |
until proper insurance coverage is obtained. Each application for | 2130 |
a registration certificate shall be accompanied by a nonrefundable | 2131 |
fee of five hundred dollars. | 2132 |
(D) A registered transporter shall apply to revise a disposal | 2158 |
plan under procedures that the chief shall prescribe by rule. | 2159 |
However, at a minimum, an application for a revision shall list | 2160 |
all sources and disposal sites of brine currently transported. The | 2161 |
chief shall deny any application for a revision of a plan under | 2162 |
this division if the chief finds that the proposed revised plan | 2163 |
does not provide for compliance with the requirements of this | 2164 |
chapter and rules of the chief pertaining to the transportation of | 2165 |
brine by vehicle and the disposal of brine so transported. | 2166 |
Approvals and denials of revisions shall be by order of the chief. | 2167 |
Sec. 1509.225. (A) Before being issued a registration | 2173 |
certificate under section 1509.222 of the Revised Code, an | 2174 |
applicant shall execute and file with the division of mineral | 2175 |
resources management a surety bond for fifteen thousand dollars to | 2176 |
provide compensation for damage and injury resulting from | 2177 |
transporters' violations of sections 1509.22, 1509.222, and | 2178 |
1509.223 of the Revised Code, all rules and orders of the chief of | 2179 |
the division of mineral resource management relating thereto, and | 2180 |
all terms and conditions of the registration certificate imposed | 2181 |
thereunder. The applicant may deposit with the chief, in lieu of a | 2182 |
surety bond, cash in an amount equal to the surety bond as | 2183 |
prescribed in this section, or negotiable certificates of deposit | 2184 |
issued by any bank organized or transacting business in this | 2185 |
state, or certificates of deposit issued by any building and loan | 2186 |
association as defined in section 1151.01 of the Revised Code, | 2187 |
having a cash value equal to or greater than the amount of the | 2188 |
surety bond as prescribed in this section. Cash or certificates of | 2189 |
deposit shall be deposited upon the same terms as those upon which | 2190 |
surety bonds may be deposited. If certificates of deposit are | 2191 |
deposited with the chief in lieu of a surety bond, the chief shall | 2192 |
require the bank or building and loan association that issued any | 2193 |
such certificate to pledge securities of a cash value equal to the | 2194 |
amount of the certificate that is in excess of the amount insured | 2195 |
by any of the agencies and instrumentalities created under the | 2196 |
"Federal Deposit Insurance Act," 64 Stat. 873 (1950), 12 U.S.C. | 2197 |
1811, as amended, and regulations adopted under it, including at | 2198 |
least the federal deposit insurance corporation, bank insurance | 2199 |
fund, and savings association insurance fund. | 2200 |
(B) The surety bond provided for in this section shall be | 2206 |
executed by a surety company authorized to do business in this | 2207 |
state. The chief shall not approve any bond until it is personally | 2208 |
signed and acknowledged by both principal and surety, or as to | 2209 |
either by an attorney in fact, with a certified copy of the power | 2210 |
of attorney attached thereto. The chief shall not approve suchthe | 2211 |
bond unless there is attached a certificate of the superintendent | 2212 |
of insurance that the company is authorized to transact a fidelity | 2213 |
and surety business in this state. All bonds shall be given in a | 2214 |
form to be prescribed by the chief. | 2215 |
(C) If a registered transporter is found liable for a | 2216 |
violation of section 1509.22, 1509.222, or 1509.223 of the Revised | 2217 |
Code or a rule, order, or term or condition of a certificate | 2218 |
involving, in any case, damage or injury to persons or property, | 2219 |
or both, the court may order the forfeiture of any portion of the | 2220 |
bond, cash, or other securities required by this section in full | 2221 |
or partial payment of damages to the person to whom the damages | 2222 |
are due. The treasurer of state and the chief shall deliver the | 2223 |
bond or any cash or other securities deposited in lieu of bond, as | 2224 |
specified in the court's order, to the person to whom the damages | 2225 |
are due; however, execution against the bond, cash, or other | 2226 |
securities, if necessary, is the responsibility of the person to | 2227 |
whom the damages are due. The chief shall not release the bond, | 2228 |
cash, or securities required by this section except by court order | 2229 |
or until two years after the date on which athe registration is | 2230 |
terminated. | 2231 |
Sec. 1509.226. (A) If a board of county commissioners, a | 2232 |
board of township trustees, or the legislative authority of a | 2233 |
municipal corporation wishes to permit the surface application of | 2234 |
brine to roads, streets, highways, and other similar land surfaces | 2235 |
it owns or has the right to control for control of dust or ice, it | 2236 |
may adopt a resolution permitting such application as provided in | 2237 |
this section. If a board or legislative authority does not adopt | 2238 |
such a resolution, then no such surface application of brine is | 2239 |
permitted on such roads, streets, highways, and other similar | 2240 |
surfaces. If a board or legislative authority votes on a proposed | 2241 |
resolution to permit such surface application of brine, but the | 2242 |
resolution fails to receive the affirmative vote of a majority of | 2243 |
the board or legislative authority, the board or legislative | 2244 |
authority shall not adopt such a resolution for one year following | 2245 |
the date on which the vote was taken. A board or legislative | 2246 |
authority shall hold at least one public hearing on any proposal | 2247 |
to permit surface application of brine under this division and may | 2248 |
hold additional hearings. The board or legislative authority shall | 2249 |
publish notice of the time and place of each such public hearing | 2250 |
in a newspaper of general circulation in the political subdivision | 2251 |
at least five days before the day on which the hearing is to be | 2252 |
held. | 2253 |
(B) If a board or legislative authority adopts a resolution | 2254 |
permitting the surface application of brine to roads, streets, | 2255 |
highways, and other similar land surfaces under division (A) of | 2256 |
this section, the board or legislative authority shall, within | 2257 |
thirty days after the adoption of the resolution, prepare and | 2258 |
submit to the chief of the division of mineral resources | 2259 |
management a copy of the resolution. Any department, agency, or | 2260 |
instrumentality of this state or the United States that wishes to | 2261 |
permit the surface application of brine to roads, streets, | 2262 |
highways, and other similar land surfaces it owns or has a right | 2263 |
to control shall prepare and submit guidelines for such | 2264 |
application, but need not adopt a resolution under division (A) of | 2265 |
this section permitting such surface application. | 2266 |
If a resolution or guidelines contain only the standards | 2303 |
listed in division (B)(1) to (9)(10) of this section, without | 2304 |
addition or qualification, the resolution or guidelines shall be | 2305 |
deemed effective when submitted to the chief without further | 2306 |
action by the chief. All other resolutions and guidelines shall | 2307 |
comply with and be no less stringent than this chapter, rules | 2308 |
concerning surface application that the chief shall adopt under | 2309 |
division (C) of section 1509.22 of the Revised Code, and other | 2310 |
rules of the chief. Within fifteen days after receiving such other | 2311 |
resolutions and guidelines, the chief shall review them for | 2312 |
compliance with the law and rules and disapprove them if they do | 2313 |
not comply. | 2314 |
The board, legislative authority, or department, agency, or | 2315 |
instrumentality may revise and resubmit any resolutions or | 2316 |
guidelines that the chief disapproves after each disapproval, and | 2317 |
the chief shall again review and approve or disapprove them within | 2318 |
fifteen days after receiving them. The board, legislative | 2319 |
authority, or department, agency, or instrumentality may amend any | 2320 |
resolutions or guidelines previously approved by the chief and | 2321 |
submit them, as amended, to the chief. The chief shall receive, | 2322 |
review, and approve or disapprove the amended resolutions or | 2323 |
guidelines on the same basis and in the same time as original | 2324 |
resolutions or guidelines. The board, legislative authority, or | 2325 |
department, agency, or instrumentality shall not implement amended | 2326 |
resolutions or guidelines until they are approved by the chief | 2327 |
under this division. | 2328 |
(C) Any person, other than a political subdivision required | 2329 |
to adopt a resolution under division (A) of this section or a | 2330 |
department, agency, or instrumentality of this state or the United | 2331 |
States, who owns or has a legal right or obligation to maintain a | 2332 |
road, street, highway, or other similar land surface may file with | 2333 |
the board of county commissioners a written plan for the | 2334 |
application of brine to the road, street, highway, or other | 2335 |
surface. The board need not approve any such plans, but if it | 2336 |
approves a plan, the plan shall comply with this chapter, rules | 2337 |
adopted thereunder, and the board's resolutions, if any. | 2338 |
Disapproved plans may be revised and resubmitted for the board's | 2339 |
approval. Approved plans may also be revised and submitted to the | 2340 |
board. A plan or revised plan shall do all of the following: | 2341 |
(D) The board may attach terms and conditions to approval of | 2349 |
a plan, or revised plan, and may revoke approval for any violation | 2350 |
of this chapter, rules adopted thereunder, resolutions adopted by | 2351 |
the board, or terms or conditions attached by the board. The board | 2352 |
shall conduct at least one public hearing before approving a plan | 2353 |
or revised plan, publishing notice of the time and place of each | 2354 |
such public hearing in a newspaper of general circulation in the | 2355 |
county at least five days before the day on which the hearing is | 2356 |
to be held. The board shall record the filings of all plans and | 2357 |
revised plans in its journal. The board shall approve, disapprove, | 2358 |
or revoke approval of a plan or revised plan by the adoption of a | 2359 |
resolution. Upon approval of a plan or revised plan, the board | 2360 |
shall send a copy of the plan to the chief. Upon revoking approval | 2361 |
of a plan or revised plan, the board shall notify the chief of the | 2362 |
revocation. | 2363 |
(F) Each political subdivision that adopts a resolution under | 2369 |
divisions (A) and (B) of this section, each department, agency, or | 2370 |
instrumentality of this state or the United States that submits | 2371 |
guidelines under division (B) of this section, and each person who | 2372 |
files a plan under divisions (C) and (D) of this section shall, on | 2373 |
or before the fifteenth day of April of each year, file a report | 2374 |
with the chief concerning brine applied within the person's or | 2375 |
governmental entity's jurisdiction, including the quantities | 2376 |
transported and the sources and application points during the last | 2377 |
preceding calendar year and such other information in such form as | 2378 |
the chief requires. | 2379 |
(G) Any political subdivision or department, agency, or | 2380 |
instrumentality of this state or the United States that applies | 2381 |
brine under this section may do so with its own personnel, | 2382 |
vehicles, and equipment without registration under or compliance | 2383 |
with section 1509.222 or 1509.223 of the Revised Code and without | 2384 |
the necessity for filing the surety bond or other security | 2385 |
required by section 1509.225 of the Revised Code. However, each | 2386 |
such entity shall legibly identify vehicles used to apply brine | 2387 |
with reflective paint in letters no less than four inches in | 2388 |
height, indicating the word "brine" and that the vehicle is a | 2389 |
vehicle of the political subdivision, department, agency, or | 2390 |
instrumentality. Except as stated in this division, such entities | 2391 |
shall transport brine in accordance with sections 1509.22 to | 2392 |
1509.226 of the Revised Code. | 2393 |
(H) A surface application plan filed for approval under | 2394 |
division (C) of this section shall be accompanied by a | 2395 |
nonrefundable fee of fifty dollars, which shall be credited to the | 2396 |
general fund of the county. An approved plan is valid for one year | 2397 |
from the date of its approval unless it is revoked before that | 2398 |
time. An approved revised plan is valid for the remainder of the | 2399 |
term of the plan it supersedes unless it is revoked before that | 2400 |
time. Any person who has filed such a plan or revised plan and had | 2401 |
it approved may renew it by refiling it in accordance with | 2402 |
divisions (C) and (D) of this section within thirty days before | 2403 |
any anniversary of the date on which the original plan was | 2404 |
approved. The board shall notify the chief of renewals and | 2405 |
nonrenewals of plans. Even if a renewed plan is approved under | 2406 |
those divisions, the plan is not effective until notice is | 2407 |
received by the chief, and until notice is received, the chief | 2408 |
shall enforce this chapter and rules adopted thereunder with | 2409 |
regard to the affected roads, streets, highways, and other similar | 2410 |
land surfaces as if the plan had not been renewed. | 2411 |
(2) Minimum distances that wells and other excavations, | 2427 |
structures, and equipment shall be located from water wells, | 2428 |
streets, roads, highways, rivers, lakes, streams, ponds, other | 2429 |
bodies of water, railroad tracks, public or private recreational | 2430 |
areas, zoning districts, and buildings or other structures;. Rules | 2431 |
adopted under division (A)(2) of this section shall not conflict | 2432 |
with section 1509.021 of the Revised Code. | 2433 |
(4) Procedures, methods, and equipment and other requirements | 2435 |
for equipment to prevent and contain discharges of oil and brine | 2436 |
from oil production facilities and oil drilling and workover | 2437 |
facilities consistent with and equivalent in scope, content, and | 2438 |
coverage to section 311(j)(1)(c) of the "Federal Water Pollution | 2439 |
Control Act Amendments of 1972," 86 Stat. 886, 33 U.S.C.A. 1251, | 2440 |
as amended, and regulations adopted under it. In addition, the | 2441 |
rules may specify procedures, methods, and equipment and other | 2442 |
requirements for equipment to prevent and contain surface and | 2443 |
subsurface discharges of fluids, condensates, and gases. | 2444 |
(B) The chief, in consultation with the emergency response | 2446 |
commission created in section 3750.02 of the Revised Code, shall | 2447 |
adopt rules in accordance with Chapter 119. of the Revised Code | 2448 |
that specify the information that shall be included in an | 2449 |
electronic database that the chief shall create and host. The | 2450 |
information shall be that which the chief considers to be | 2451 |
appropriate for the purpose of responding to emergency situations | 2452 |
that pose a threat to public health or safety or the environment. | 2453 |
At the minimum, the information shall include that which a person | 2454 |
who is regulated under this chapter is required to submit under | 2455 |
the "Emergency Planning and Community Right-To-Know Act of 1986," | 2456 |
100 Stat. 1728, 42 U.S.C.A. 11001, and regulations adopted under | 2457 |
it. | 2458 |
Sec. 1509.24. (A) The chief of the division of mineral | 2466 |
resources management, with the approval of the technical advisory | 2467 |
council on oil and gas created in section 1509.38 of the Revised | 2468 |
Code, may adopt, amend, or rescind rules relative to minimum | 2469 |
acreage requirements for drilling units and minimum distances from | 2470 |
which a new well may be drilled or an existing well deepened, | 2471 |
plugged back, or reopened to a source of supply different from the | 2472 |
existing pool from boundaries of tracts, drilling units, and other | 2473 |
wells for the purpose of conserving oil and gas reserves.
Rules | 2474 |
The rules relative to minimum acreage requirements for drilling | 2475 |
units shall require a drilling unit to be compact and composed of | 2476 |
contiguous land. | 2477 |
SuchThe application shall include such data and information | 2493 |
as shall be reasonably required by the chief of the division of | 2494 |
mineral resources management and shall be accompanied by an | 2495 |
application for a permit as required by section 1509.05 of the | 2496 |
Revised Code. The chief shall notify all owners of land within the | 2497 |
area proposed to be included within the orderdrilling unit of the | 2498 |
filing of suchthe application and of their right to a hearing if | 2499 |
requested. After the hearing or after the expiration of thirty | 2500 |
days from the date notice of application was mailed to such | 2501 |
owners, the chief, if satisfied that the application is proper in | 2502 |
form and that mandatory pooling is necessary to protect | 2503 |
correlative rights orand to provide effective development, use, | 2504 |
orand conservation of oil and gas, shall issue a drilling permit | 2505 |
and a mandatory pooling order complying with the requirements for | 2506 |
drilling a well as provided in section 1509.24 or 1509.25 of the | 2507 |
Revised Code, whichever is applicable, which. The mandatory | 2508 |
pooling order shall: | 2509 |
If an owner of a tract pooled by the order does not elect to | 2537 |
participate in the risk and cost of the drilling and operation, or | 2538 |
operation, of a well, the owner may elect toshall be designated | 2539 |
as a nonparticipating owner in the drilling and operation, or | 2540 |
operation, of the well, on a limited or carried basis uponand is | 2541 |
subject to terms and conditions determined by the chief to be just | 2542 |
and reasonable. In addition, if an owner is designated as a | 2543 |
nonparticipating owner, the owner is not liable for actions or | 2544 |
conditions associated with the drilling or operation of the well. | 2545 |
If one or more of the participating owners bearapplicant bears | 2546 |
the costs of drilling, equipping, orand operating a well for the | 2547 |
benefit of a nonparticipating owner, as provided for in the | 2548 |
pooling order, then such participating owner or ownersthe | 2549 |
applicant shall be entitled to the share of production from the | 2550 |
drilling unit accruing to the interest of suchthat | 2551 |
nonparticipating owner, exclusive of the nonparticipating owner's | 2552 |
proportionate share of the royalty interest if the fee holder has | 2553 |
leased the fee holder's land to others, otherwise, one-eighth of | 2554 |
the fee holder's share of the production, until there has been | 2555 |
received the share of costs charged to suchthat nonparticipating | 2556 |
owner plus such additional percentage of the share of costs as the | 2557 |
chief shall determine. The total amount receivable hereunder shall | 2558 |
in no event exceed
doubletwo hundred per cent of the share of | 2559 |
costs charged to suchthat nonparticipating owner. After receipt | 2560 |
of that share of costs by such an applicant, a nonparticipating | 2561 |
owner shall receive a proportionate share of the working interest | 2562 |
in the well in addition to a proportionate share of the royalty | 2563 |
interest, if any. | 2564 |
Sec. 1509.31. (A) Whenever the entire interest of an oil and | 2578 |
gas lease is assigned or otherwise transferred, the assignor or | 2579 |
transferor shall notify the holders of the royalty interests, and, | 2580 |
if a well or wells exist on the lease, the division of mineral | 2581 |
resources management, of the name and address of the assignee or | 2582 |
transferee by certified mail, return receipt requested, not later | 2583 |
than thirty days after the date of the assignment or transfer. | 2584 |
When notice of any such assignment or transfer is required to be | 2585 |
provided to the division, it shall be provided on a form | 2586 |
prescribed and provided by the division and verified by both the | 2587 |
assignor or transferor and by the assignee or transferee and shall | 2588 |
be accompanied by a nonrefundable fee of one hundred dollars for | 2589 |
each well. The notice form applicable to assignments or transfers | 2590 |
of a well to the owner of the surface estate of the tract on which | 2591 |
the well is located shall contain a statement informing the | 2592 |
landowner that the well may require periodic servicing to maintain | 2593 |
its productivity; that, upon assignment or transfer of the well to | 2594 |
the landowner, the landowner becomes responsible for compliance | 2595 |
with the requirements of this chapter and rules adopted under it, | 2596 |
including, without limitation, the proper disposal of brine | 2597 |
obtained from the well, the plugging of the well when it becomes | 2598 |
incapable of producing oil or gas, and the restoration of the well | 2599 |
site; and that, upon assignment or transfer of the well to the | 2600 |
landowner, the landowner becomes responsible for the costs of | 2601 |
compliance with the requirements of this chapter and rules adopted | 2602 |
under it and the costs for operating and servicing the well. | 2603 |
(B) When the entire interest of a well is proposed to be | 2604 |
assigned or otherwise transferred to the landowner for use as an | 2605 |
exempt domestic well, the owner who has been issued a permit under | 2606 |
this chapter for the well shall submit to the chief an application | 2607 |
for the assignment or transfer that contains all documents that | 2608 |
the chief requires and a nonrefundable fee of one hundred dollars. | 2609 |
The application for such an assignment or transfer shall be | 2610 |
prescribed and provided by the chief. The chief may approve the | 2611 |
application if the application is accompanied by a release of all | 2612 |
of the oil and gas leases that are included in the applicable | 2613 |
formation of the drilling unit, the release is in a form such that | 2614 |
the well ownership merges with the fee simple interest of the | 2615 |
surface tract, and the release is in a form that may be recorded. | 2616 |
However, if the owner of the well does not release the oil and gas | 2617 |
leases associated with the well that is proposed to be assigned or | 2618 |
otherwise transferred or if the fee simple tract that results from | 2619 |
the merger of the well ownership with the fee simple interest of | 2620 |
the surface tract is less than five acres, the proposed exempt | 2621 |
domestic well owner shall post a five thousand dollar bond with | 2622 |
the division of mineral resources management prior to the | 2623 |
assignment or transfer of the well to ensure that the well will be | 2624 |
properly plugged. The chief, for good cause, may modify the | 2625 |
requirements of this section governing the assignment or transfer | 2626 |
of the interests of a well to the landowner. Upon the assignment | 2627 |
or transfer of the well, the owner of an exempt domestic well is | 2628 |
not subject to the severance tax levied under section 5749.02 of | 2629 |
the Revised Code, but is subject to all applicable fees | 2630 |
established in this chapter. | 2631 |
(C) The owner holding a permit under section 1509.05 of the | 2632 |
Revised Code is responsible for all obligations and liabilities | 2633 |
imposed by this chapter and any rules, orders, and terms and | 2634 |
conditions of a permit adopted or issued under it, and no | 2635 |
assignment or transfer by the owner relieves the owner of the | 2636 |
obligations and liabilities until and unless the assignee or | 2637 |
transferee files with the division the information described in | 2638 |
divisions (A)(1), (2), (3), (4), (5), (10), (11), and (12) of | 2639 |
section 1509.06 of the Revised Code; obtains liability insurance | 2640 |
coverage required by section 1509.07 of the Revised Code, except | 2641 |
when none is required by that section; and executes and files a | 2642 |
surety bond, negotiable certificates of deposit or irrevocable | 2643 |
letters of credit, or cash, as described in that section. Instead | 2644 |
of a bond, but only upon acceptance by the chief of the division | 2645 |
of mineral resources management, the assignee or transferee may | 2646 |
file proof of financial responsibility, described in section | 2647 |
1509.07 of the Revised Code. Section 1509.071 of the Revised Code | 2648 |
applies to the surety bond, cash, and negotiable certificates of | 2649 |
deposit and irrevocable letters of credit described in this | 2650 |
section. Unless the chief approves a modification, each assignee | 2651 |
or transferee shall operate in accordance with the plans and | 2652 |
information filed by the permit holder pursuant to section 1509.06 | 2653 |
of the Revised Code. | 2654 |
(D) If a mortgaged property that is being foreclosed is | 2655 |
subject to an oil or gas lease, pipeline agreement, or other | 2656 |
instrument related to the production or sale of oil or natural gas | 2657 |
and the lease, agreement, or other instrument was recorded | 2658 |
subsequent to the mortgage, and if the lease, agreement, or other | 2659 |
instrument is not in default, the oil or gas lease, pipeline | 2660 |
agreement, or other instrument, as applicable, has priority over | 2661 |
all other liens, claims, or encumbrances on the property so that | 2662 |
the oil or gas lease, pipeline agreement, or other instrument is | 2663 |
not terminated or extinguished upon the foreclosure sale of the | 2664 |
mortgaged property. If the owner of the mortgaged property was | 2665 |
entitled to oil and gas royalties before the foreclosure sale, the | 2666 |
oil or gas royalties shall be paid to the purchaser of the | 2667 |
foreclosed property. | 2668 |
Sec. 1509.34. (A)(1) If an owner fails to pay the fees | 2669 |
imposed by this chapter, or if the chief of the division of | 2670 |
mineral resources management incurs costs under division (E) of | 2671 |
section 1509.071 of the Revised Code to correct conditions | 2672 |
associated with the owner's well that the chief reasonably has | 2673 |
determined are causing imminent health or safety risks, the | 2674 |
division of mineral resources management shall have a priority | 2675 |
lien against that owner's interest in the applicable well in front | 2676 |
of all other creditors for the amount of any such unpaid fees and | 2677 |
costs incurred. The chief shall file a statement in the office of | 2678 |
the county recorder of the county in which the applicable well is | 2679 |
located of the amount of the unpaid fees and costs incurred as | 2680 |
described in this division. The statement shall constitute a lien | 2681 |
on the owner's interest in the well as of the date of the filing. | 2682 |
The lien shall remain in force so long as any portion of the lien | 2683 |
remains unpaid or until the chief issues a certificate of release | 2684 |
of the lien. If the chief issues a certificate of release of the | 2685 |
lien, the chief shall file the certificate of release in the | 2686 |
office of the applicable county recorder. | 2687 |
Sec. 1509.35. (A) There is hereby created an oil and gas | 2722 |
commission consisting of five members appointed by the governor. | 2723 |
Terms of office shall be for five years, commencing on the | 2724 |
fifteenth day of October and ending on the fourteenth day of | 2725 |
October, except that the terms of the first five members of the | 2726 |
board shall be for one, two, three, four, and five years, | 2727 |
respectively, as designated by the governor at the time of the | 2728 |
appointment. Each member shall hold office from the date of | 2729 |
appointment until the end of the term for which the member was | 2730 |
appointed. Any member appointed to fill a vacancy occurring prior | 2731 |
to the expiration of the term for which the member's predecessor | 2732 |
was appointed shall hold office for the remainder of suchthat | 2733 |
term. Any member shall continue in office subsequent to the | 2734 |
expiration date of the member's term until a successor takes | 2735 |
office, or until a period of sixty days has elapsed, whichever | 2736 |
occurs first. Each vacancy occurring on the commission shall be | 2737 |
filled by appointment within sixty days after the vacancy occurs. | 2738 |
One of the appointees to the commission shall be a person who, by | 2739 |
reason of the person's previous vocation, employment, or | 2740 |
affiliations, can be classed as a representative of a major | 2741 |
petroleum company. One of the appointees to the commission shall | 2742 |
be a person who, by reason of the person's previous vocation, | 2743 |
employment, or affiliations, can be classed as a representative of | 2744 |
the public. One of the appointees to the commission shall be a | 2745 |
person who, by reason of the person's previous training and | 2746 |
experience, can be classed as a representative of independent | 2747 |
petroleum operators. One of the appointees to the commission shall | 2748 |
be a person who, by reason of the person's previous training and | 2749 |
experience, can be classed as one learned and experienced in oil | 2750 |
and gas law. One of the appointees to the commission shall be a | 2751 |
person who, by reason of the person's previous training and | 2752 |
experience, can be classed as one learned and experienced in | 2753 |
geology or petroleum engineering. Not more than three members | 2754 |
shall be members of the same political party. This division does | 2755 |
not apply to temporary members appointed under division (C) of | 2756 |
this section. | 2757 |
(C) If the chairperson of the commission determines that a | 2762 |
quorum cannot be obtained for the purpose of considering a matter | 2763 |
that will be before the commission because of vacancies or recusal | 2764 |
of its members, the chairperson may contact the technical advisory | 2765 |
council on oil and gas created in section 1509.38 of the Revised | 2766 |
Code and request a list of members of the council who may serve as | 2767 |
temporary members of the commission. Using the list provided by | 2768 |
the council, the chairperson may appoint temporary members to the | 2769 |
commission. The appointment of temporary members shall be for only | 2770 |
the matter for which a quorum cannot be obtained. The number of | 2771 |
temporary members appointed by the chairperson shall not exceed | 2772 |
the number that is necessary to obtain a quorum for the matter. A | 2773 |
temporary member of the commission has the same authority, rights, | 2774 |
and obligations as a member of the commission, including the right | 2775 |
to compensation and other expenses as provided in this section. | 2776 |
The authority, rights, and obligations of a temporary member cease | 2777 |
when the temporary member's service on the commission ends. | 2778 |
For the purpose of conducting a hearing on an appeal, the | 2825 |
commission may require the attendance of witnesses and the | 2826 |
production of books, records, and papers, and it may, and at the | 2827 |
request of any party it shall, issue subpoenas for witnesses or | 2828 |
subpoenas duces tecum to compel the production of any books, | 2829 |
records, or papers, directed to the sheriffs of the counties where | 2830 |
suchthe witnesses are found. The subpoenas shall be served and | 2831 |
returned in the same manner as subpoenas in criminal cases are | 2832 |
served and returned. The fees of sheriffs shall be the same as | 2833 |
those allowed by the court of common pleas in criminal cases. | 2834 |
Witnesses shall be paid the fees and mileage provided for under | 2835 |
section 119.094 of the Revised Code. Such fees and mileage | 2836 |
expenses incurred at the request of appellant shall be paid in | 2837 |
advance by the appellant, and the remainder of suchthose expenses | 2838 |
shall be paid out of funds appropriated for the expenses of the | 2839 |
division of mineral resources management. | 2840 |
In case of disobedience or neglect of any subpoena served on | 2841 |
any person, or the refusal of any witness to testify to any matter | 2842 |
regarding which the witness may be lawfully interrogated, the | 2843 |
court of common pleas of the county in which suchthe | 2844 |
disobedience, neglect, or refusal occurs, or any judge thereof, on | 2845 |
application of the commission or any member thereof, shall compel | 2846 |
obedience by attachment proceedings for contempt as in the case of | 2847 |
disobedience of the requirements of a subpoena issued from such | 2848 |
that court or a refusal to testify therein. Witnesses at such | 2849 |
hearings shall testify under oath, and any member of the | 2850 |
commission may administer oaths or affirmations to persons who so | 2851 |
testify. | 2852 |
At the request of any party to the appeal, a stenographic | 2853 |
record of the testimony and other evidence submitted shall be | 2854 |
taken by an official court shorthand reporter at the expense of | 2855 |
the party making the request therefor. SuchThe record shall | 2856 |
include all of the testimony and other evidence and the rulings on | 2857 |
the admissibility thereof presented at the hearing. The commission | 2858 |
shall pass upon the admissibility of evidence, but any party may | 2859 |
at the time object to the admission of any evidence and except to | 2860 |
the rulings of the commission thereon, and if the commission | 2861 |
refuses to admit evidence the party offering same may make a | 2862 |
proffer thereof, and such proffer shall be made a part of the | 2863 |
record of suchthe hearing. | 2864 |
The order of the commission is final unless vacated by the | 2876 |
court of common pleas of Franklin county in an appeal as provided | 2877 |
for in section 1509.37 of the Revised Code. Sections 1509.01 to | 2878 |
1509.37 of the Revised Code, providing for appeals relating to | 2879 |
orders by the chief or by the commission, or relating to rules | 2880 |
adopted by the chief, do not constitute the exclusive procedure | 2881 |
that any person who believes the person's rights to be unlawfully | 2882 |
affected by those sections or any official action taken thereunder | 2883 |
must pursue in order to protect and preserve those rights, nor do | 2884 |
those sections constitute a procedure that that person must pursue | 2885 |
before that person may lawfully appeal to the courts to protect | 2886 |
and preserve those rights. | 2887 |
Sec. 1509.50. (A) An oil and gas regulatory cost recovery | 2888 |
assessment is hereby imposed by this section on an owner. An owner | 2889 |
shall pay the assessment in the same manner as a severer who is | 2890 |
required to file a return under section 5749.06 of the Revised | 2891 |
Code. However, an owner may designate a severer who shall pay the | 2892 |
owner's assessment on behalf of the owner on the return that the | 2893 |
severer is required to file under that section. If a severer so | 2894 |
pays an owner's assessment, the severer may recoup from the owner | 2895 |
the amount of the assessment. Except for an exempt domestic well, | 2896 |
the assessment imposed shall be in addition to the taxes levied on | 2897 |
the severance of oil and gas under section 5749.02 of the Revised | 2898 |
Code. | 2899 |
(a) If the sum of ten cents per barrel of oil for all of the | 2903 |
wells of the owner, one-half of one cent per one thousand cubic | 2904 |
feet of natural gas for all of the wells of the owner, and the | 2905 |
amount of the severance tax levied on each severer for all of the | 2906 |
wells of the owner under divisions (A)(5) and (6) of section | 2907 |
5749.02 of the Revised Code, as applicable, is greater than the | 2908 |
sum of fifteen dollars for each well owned by the owner, the | 2909 |
amount of the assessment is the sum of ten cents per barrel of oil | 2910 |
for all of the wells of the owner and one-half of one cent per one | 2911 |
thousand cubic feet of natural gas for all of the wells of the | 2912 |
owner. | 2913 |
(b) If the sum of ten cents per barrel of oil for all of the | 2914 |
wells of the owner, one-half of one cent per one thousand cubic | 2915 |
feet of natural gas for all of the wells of the owner, and the | 2916 |
amount of the severance tax levied on each severer for all of the | 2917 |
wells of the owner under divisions (A)(5) and (6) of section | 2918 |
5749.02 of the Revised Code, as applicable, is less than the sum | 2919 |
of fifteen dollars for each well owned by the owner, the amount of | 2920 |
the assessment is the sum of fifteen dollars for each well owned | 2921 |
by the owner less the amount of the tax levied on each severer for | 2922 |
all of the wells of the owner under divisions (A)(5) and (6) of | 2923 |
section 5749.02 of the Revised Code, as applicable. | 2924 |
The legislative authority of the political subdivision shall | 2957 |
send notice not later than ten days prior to the date of the | 2958 |
public meeting to the owner of each parcel of real property that | 2959 |
is located within five hundred feet of the surface location of the | 2960 |
property that is the subject of the proposed lease agreement. The | 2961 |
notice shall contain a statement that the legislative authority of | 2962 |
the political subdivision is considering entering into an oil or | 2963 |
gas lease agreement, and provide the location, date, and time of | 2964 |
the public meeting. In addition, the statement shall contain a | 2965 |
statement that informs an owner of real property who is required | 2966 |
to receive notice of the public meeting under this division that, | 2967 |
within five days of receipt of the notice, the owner is required | 2968 |
to provide notice under division (C) of this section to each | 2969 |
residence in an occupied dwelling that is located on the owner's | 2970 |
parcel of real property. | 2971 |
Sec. 1565.13. In case of an injury to person or property, | 3001 |
occasioned by a violation of this chapter and Chapters 1561., | 3002 |
1563., and 1567., and sectionssection 1509.18 and 1509.19 of the | 3003 |
Revised Code, or any failure to comply with suchthose chapters or | 3004 |
sectionsthat section, by any operator of a mine, a right of | 3005 |
action shall accrue to the person injured, for any direct damage | 3006 |
hethe person injured has sustained thereby. In case of loss of | 3007 |
life by reason of such failure or neglect, a right of action shall | 3008 |
accrue to the widow, and children, or if there are none, then to | 3009 |
the parents and next of kin, of the person whose death was so | 3010 |
caused, for like recovery of damages for the injury they have | 3011 |
sustained. Any operator of a mine who has complied with Chapter | 3012 |
4123. of the Revised Code, is exempt as provided in section | 3013 |
4123.74 of the Revised Code, and not liable for damages at common | 3014 |
law or by statute for injury or death of any employee. | 3015 |
(B) Whenever an operator of a gas storage reservoir is | 3031 |
notified by the operator of a coal mine, as provided in division | 3032 |
(B) of section 1571.03 of the Revised Code, that suchthe coal | 3033 |
mine operator believes that part of the boundary of suchthe mine | 3034 |
is within two thousand linear feet of a well that is drilled | 3035 |
through the horizon of suchthe coal mine and into or through the | 3036 |
storage stratum or strata of suchthe reservoir within the | 3037 |
boundary of suchthe reservoir or within its protective area, such | 3038 |
the reservoir operator shall plug or recondition suchthe well as | 3039 |
in this section prescribed, unless it is agreed in a conference or | 3040 |
is ordered by the chief of the division of mineral resources | 3041 |
management after a hearing, as provided in section 1571.10 of the | 3042 |
Revised Code, that the well referred to in the notice is not such | 3043 |
a well as is described in division (B) of section 1571.03 of the | 3044 |
Revised Code. | 3045 |
Whenever an operator of a gas storage reservoir is notified | 3046 |
by the operator of a coal mine as provided in division (C) or (D) | 3047 |
of section 1571.03 of the Revised Code, that part of the boundary | 3048 |
of suchthe mine is, or within nine months is intended or expected | 3049 |
to be, within two thousand linear feet of a well that is drilled | 3050 |
through the horizon of suchthe mine and into or through the | 3051 |
storage stratum or strata of suchthe reservoir within the | 3052 |
boundary of suchthe reservoir or within its protective area, such | 3053 |
the reservoir operator shall plug or recondition suchthe well as | 3054 |
in this section prescribed. | 3055 |
Whenever the operator of a coal mine considers that the use | 3056 |
of a well such as in this section described, if used for injecting | 3057 |
gas into, or storing gas in, or removing gas from, a gas storage | 3058 |
reservoir, would be hazardous to the safety of persons or property | 3059 |
on or in the vicinity of the premises of suchthe coal mine or | 3060 |
suchthe reservoir or well, the coal mine operator may file with | 3061 |
the division objections to the use of suchthe well for such | 3062 |
purposes, and a request that a conference be held as provided in | 3063 |
section 1571.10 of the Revised Code, to discuss and endeavor to | 3064 |
resolve by mutual agreement whether or not suchthe well shall or | 3065 |
shall not be used for such purposes, and whether or not suchthe | 3066 |
well shall be reconditioned, inactivated, or plugged. SuchThe | 3067 |
request shall set forth the mine operator's reasons for such | 3068 |
objections. If no approved agreement is reached in suchthe | 3069 |
conference, the gas storage well inspector shall within ten days | 3070 |
after the termination of suchthe conference, file with the chief | 3071 |
a request that the chief hear and determine the matters considered | 3072 |
at the conference as provided in section 1571.10 of the Revised | 3073 |
Code. Upon conclusion of the hearing, the chief shall find and | 3074 |
determine whether or not the safety of persons or of the property | 3075 |
on or in the vicinity of the premises of suchthe coal mine, or | 3076 |
suchthe reservoir, or suchthe well requires that
suchthe well | 3077 |
be reconditioned, inactivated, or plugged, and shall make an order | 3078 |
consistent with suchthat determination, provided that the chief | 3079 |
shall not order a well plugged unless the chief first finds that | 3080 |
there is underground leakage of gas therefrom. | 3081 |
The plugging or reconditioning of each well described in a | 3082 |
notice from a coal mine operator to a reservoir operator as | 3083 |
provided in division (B) of section 1571.03 of the Revised Code, | 3084 |
which must be plugged or reconditioned, shall be completed within | 3085 |
such time as the gas storage well inspector may fix in the case of | 3086 |
each such well. The plugging or reconditioning of each well | 3087 |
described in a notice from a coal mine operator to a reservoir | 3088 |
operator as provided in division (C) of section 1571.03 of the | 3089 |
Revised Code, which must be plugged or reconditioned, shall be | 3090 |
completed by the time suchthe well, by reason of the extension of | 3091 |
the boundary of suchthe coal mine, is within two thousand linear | 3092 |
feet of any part of the boundary of suchthe mine. The plugging or | 3093 |
reconditioning of each well described in a notice from a coal mine | 3094 |
operator to a reservoir operator, as provided in division (D) of | 3095 |
section 1571.03 of the Revised Code, which must be plugged or | 3096 |
reconditioned, shall be completed by the time suchthe well, by | 3097 |
reason of the opening of suchthe new mine, is within two thousand | 3098 |
linear feet of any part of the boundary of suchthe new mine. A | 3099 |
reservoir operator who is required to complete the plugging or | 3100 |
reconditioning of a well within a period of time fixed as in this | 3101 |
division prescribed, may prior to the end of suchthat period of | 3102 |
time, notify the division and the mine operator from whom the | 3103 |
reservoir operator received a notice as provided in division (B), | 3104 |
(C), or (D) of section 1571.03 of the Revised Code, in writing by | 3105 |
registered mail, that the completion of the plugging or | 3106 |
reconditioning of the well referred to in suchthe notice will be | 3107 |
delayed beyond the end of the period of time fixed therefor as in | 3108 |
this section provided, and that the reservoir operator requests | 3109 |
that a conference be held for the purpose of endeavoring to reach | 3110 |
an agreement establishing a date subsequent to the end of such | 3111 |
that period of time, on or before which suchthe reservoir | 3112 |
operator may complete suchthe plugging or reconditioning without | 3113 |
incurring any penalties for failure to do so as provided in this | 3114 |
chapter. If such a reservoir operator sends to such a mine | 3115 |
operator and to the division a notice and request for a conference | 3116 |
as in this division provided, suchthe reservoir operator shall | 3117 |
not incur any penalties for failure to complete the plugging or | 3118 |
reconditioning of suchthe well within the period of time fixed as | 3119 |
in this division prescribed, unless suchthe reservoir operator | 3120 |
fails to complete the plugging or reconditioning of suchthe well | 3121 |
within the period of time fixed by an approved agreement reached | 3122 |
in suchthe conference, or fixed by an order by the chief upon a | 3123 |
hearing held in the matter in the event of failure to reach an | 3124 |
approved agreement in the conference. | 3125 |
(C) The operator shall give written notice at the same time | 3137 |
to the owner of the land upon which the well is located, the | 3138 |
owners or agents of the adjoining land, and adjoining well owners | 3139 |
or agents of the operator's intention to abandon the well, and of | 3140 |
the time when the operator will be prepared to commence plugging | 3141 |
and filling the same. In addition to giving such notices, suchthe | 3142 |
reservoir operator shall also at the same time send a copy of such | 3143 |
the notice by registered mail to the coal mine operator, if any, | 3144 |
who sent to the reservoir operator the notice as provided in | 3145 |
division (B), (C), or (D) of section 1571.03 of the Revised Code, | 3146 |
in order that
suchthe coal mine operator or the coal mine | 3147 |
operator's designated representative, may attend and observe the | 3148 |
manner in which
suchthe plugging of suchthe well is done. | 3149 |
Whenever, in compliance with this division, a well is to be | 3179 |
reconditioned by a reservoir operator, suchthe operator shall | 3180 |
give to the division notice thereof as many days before suchthe | 3181 |
reconditioning is begun as will be necessary for the gas storage | 3182 |
well inspector, or a deputy mine inspector, to be present at such | 3183 |
the reconditioning. No well shall be reconditioned if an inspector | 3184 |
of the division is not present unless permission to do so has been | 3185 |
granted by the chief. The reservoir operator, at the time of | 3186 |
giving notice to the division as in this section required, also | 3187 |
shall send a copy of suchthe notice by registered mail to the | 3188 |
coal mine operator, if any, who sent to the reservoir operator the | 3189 |
notice as provided in division (B), (C), or (D) of section 1571.03 | 3190 |
of the Revised Code, in order that
suchthe coal mine operator or | 3191 |
the coal mine operator's designated representative, may attend and | 3192 |
observe the manner in which suchthe reconditioning of
suchthe | 3193 |
well is done. | 3194 |
(D) Wells that are required by this section to be plugged | 3201 |
shall be plugged in the manner specified in sections 1509.13 to | 3202 |
1509.191509.17 of the Revised Code, and the operator shall give | 3203 |
the notifications and reports required by divisions (B) and (C) of | 3204 |
this section. No such well shall be plugged or abandoned without | 3205 |
the written approval of the division, and no such well shall be | 3206 |
mudded, plugged, or abandoned without the gas storage well | 3207 |
inspector or a deputy mine inspector present unless written | 3208 |
permission has been granted by the chief or the gas storage well | 3209 |
inspector. If such a well has been plugged prior to the time | 3210 |
plugging thereof is required by this section, and, on the basis of | 3211 |
the data, information, and other evidence available it is | 3212 |
determined that suchthe plugging was done in the manner required | 3213 |
by this section, or was done in accordance with statutes | 3214 |
prescribing the manner of plugging wells in effect at the time | 3215 |
suchthe plugging was done, and that there is no evidence of | 3216 |
leakage of gas from suchthe well either at or below the surface, | 3217 |
and that suchthe plugging is sufficiently effective to prevent | 3218 |
the leakage of gas from suchthe well, the obligations imposed | 3219 |
upon suchthe reservoir operator by this section as to plugging | 3220 |
the well, shall be considered fully satisfied. The operator of a | 3221 |
coal mine any part of the boundary of which is, or within nine | 3222 |
months is expected or intended to be, within two thousand linear | 3223 |
feet of suchthe well, may at any time raise a question as to | 3224 |
whether the plugging of suchthe well is sufficiently effective to | 3225 |
prevent the leakage of gas therefrom, and the issue so made shall | 3226 |
be determined by a conference or hearing as provided in section | 3227 |
1571.10 of the Revised Code. | 3228 |
When a well that is to be reconditioned as required by this | 3239 |
section, has been reconditioned for use in the operation of
such | 3240 |
the reservoir prior to the time prescribed in this section, and on | 3241 |
the basis of the data, information, and other evidence available | 3242 |
it is determined that at the time suchthe well was so | 3243 |
reconditioned the requirements prescribed in this division were | 3244 |
met, and that there is no evidence of underground leakage of gas | 3245 |
from suchthe well, and that suchthe reconditioning is | 3246 |
sufficiently effective to prevent underground leakage from the | 3247 |
well, the obligations imposed upon suchthe reservoir operator by | 3248 |
this section as to reconditioning suchthe well shall be | 3249 |
considered fully satisfied. Any operator of a coal mine any part | 3250 |
of the boundary of which is, or within nine months is expected or | 3251 |
intended to be, within two thousand linear feet of suchthe well, | 3252 |
may at any time raise a question as to whether the reconditioning | 3253 |
of suchthe well is sufficiently effective to prevent underground | 3254 |
leakage of gas therefrom, and the issue so made shall be | 3255 |
determined by a conference or hearing as provided in section | 3256 |
1571.10 of the Revised Code. | 3257 |
If the gas storage well inspector at any time finds that a | 3258 |
well that is drilled through the horizon of a coal mine and into | 3259 |
or through the storage stratum or strata of a reservoir within the | 3260 |
boundary of suchthe reservoir or within its protective area, is | 3261 |
located within the boundary of suchthe coal mine or within two | 3262 |
thousand linear feet of suchthe mine boundary, and was drilled | 3263 |
prior to the time the statutes of this state required that wells | 3264 |
be cased, and that
suchthe well fails to meet the casing and | 3265 |
equipping requirements prescribed in this division, the gas | 3266 |
storage well inspector shall promptly notify the operator of such | 3267 |
the reservoir thereof in writing, and suchthe reservoir operator | 3268 |
upon receipt of
suchthe notice, shall promptly recondition such | 3269 |
the well in the manner prescribed in this division for | 3270 |
reconditioning wells, unless, in a conference or hearing as | 3271 |
provided in section 1571.10 of the Revised Code, a different | 3272 |
course of action is agreed upon or ordered. | 3273 |
(G) When retreat mining reaches a point in a coal mine when | 3288 |
the operator of suchthe mine expects that within ninety days | 3289 |
retreat work will be at the location of a pillar surrounding an | 3290 |
active storage reservoir well, the operator of suchthe mine shall | 3291 |
promptly send by registered mail notice to that effect to the | 3292 |
operator of suchthe reservoir. Thereupon the operators may by | 3293 |
agreement determine whether it is necessary or advisable to | 3294 |
temporarily inactivate the well. If inactivated, the well shall | 3295 |
not be reactivated until a reasonable period of time has elapsed, | 3296 |
such period of time to be determined by agreement by the | 3297 |
operators. In the event that the parties cannot agree upon either | 3298 |
of the foregoing matters, suchthe question shall be submitted to | 3299 |
the gas storage well inspector for a conference in accordance with | 3300 |
section 1571.10 of the Revised Code. | 3301 |
(H)(1) The provisions of this section that require the | 3302 |
plugging or reconditioning of wells shall not apply to such wells | 3303 |
as are used to inject gas into, store gas in, or remove gas from, | 3304 |
a gas storage reservoir when the sole purpose of suchthe | 3305 |
injection, storage, or removal, is testing. The operator of a gas | 3306 |
storage reservoir who injects gas into, stores gas in, or removes | 3307 |
gas from, a reservoir for the sole purpose of testing, shall be | 3308 |
subject to all other provisions of this chapter that are | 3309 |
applicable to operators of reservoirs. | 3310 |
(2) If the injection of gas into, or storage of gas in, a gas | 3311 |
storage reservoir any part of which, or of the protective area of | 3312 |
which, is within the boundary of a coal mine, is begun after | 3313 |
September 9, 1957, and if suchthe injection or storage of gas is | 3314 |
for the sole purpose of testing, the operator of suchthe | 3315 |
reservoir shall send by registered mail to the operator of such | 3316 |
the coal mine and to the division at least sixty days' notice of | 3317 |
the date upon which suchthe testing will be begun. | 3318 |
(3) Any coal mine operator who receives a notice as provided | 3325 |
for in division (H)(2) of this section, may within thirty days of | 3326 |
the receipt thereof, file with the division objections to suchthe | 3327 |
testing. The gas storage well inspector also may, within the time | 3328 |
within which a coal mine operator may file
suchan objection, | 3329 |
place in the files of the division objections to
suchthe testing. | 3330 |
The reservoir operator shall comply throughout the period of the | 3331 |
testing operations with all conditions and requirements agreed | 3332 |
upon and approved in the conference on such objections conducted | 3333 |
as provided in section 1571.10 of the Revised Code, or in an order | 3334 |
made by the chief following a hearing in the matter as provided in | 3335 |
section 1571.10 of the Revised Code. If in complying with suchthe | 3336 |
agreement or order either the reservoir operator or the coal mine | 3337 |
operator encounters or discovers conditions that were not known to | 3338 |
exist at the time of suchthe conference or hearing and that | 3339 |
materially affect suchthe agreement or order, or the ability of | 3340 |
the reservoir operator to comply therewith, either operator may | 3341 |
apply for a rehearing or modification of the order. | 3342 |
(I) In addition to complying with all other provisions of | 3343 |
this chapter and any lawful orders issued thereunder, the operator | 3344 |
of each gas storage reservoir shall keep all wells drilled into or | 3345 |
through the storage stratum or strata within the boundary of the | 3346 |
operator's reservoir or within the reservoir's protective area in | 3347 |
such condition, and operate the same in such manner, as to prevent | 3348 |
the escape of gas therefrom into any coal mine, and shall operate | 3349 |
and maintain suchthe storage reservoir and its facilities in such | 3350 |
manner and at such pressures as will prevent gas from escaping | 3351 |
from suchthe reservoir or its facilities into any coal mine. | 3352 |
Sec. 1571.18. After the effective date of this section and | 3353 |
not later than the thirty-first day of March each year, the owner | 3354 |
of a well that is used for gas storage or of a well that is used | 3355 |
to monitor a gas storage reservoir and that is located in a | 3356 |
reservoir protective area shall pay to the chief of the division | 3357 |
of mineral resources management a gas storage well regulatory fee | 3358 |
of one hundred twenty-five dollars for each well that the owner | 3359 |
owned as of the thirty-first day of December of the previous year | 3360 |
for the purposes of administering this chapter and Chapter 1509. | 3361 |
of the Revised Code. The chief may prescribe and provide a form | 3362 |
for the collection of the fee imposed by this section and may | 3363 |
adopt rules in accordance with Chapter 119. of the Revised Code | 3364 |
that are necessary for the administration of this section. | 3365 |
Sec. 4929.041. (A) The public utilities commission, upon the | 3369 |
application of a natural gas company in substantial compliance | 3370 |
with the policy specified in section 4929.02 of the Revised Code, | 3371 |
shall exempt, by order, any investment in gathering lines or | 3372 |
storage facilities placed into service on or after January 1, | 3373 |
2010, and any service of the natural gas company related to those | 3374 |
gathering lines or storage facilities from all provisions of | 3375 |
Chapter 4905. of the Revised Code with the exception of sections | 3376 |
4905.10, 4905.35, and 4905.90 to 4905.96 of the Revised Code, | 3377 |
Chapters 4909., 4933., and 4935. of the Revised Code, with the | 3378 |
exception of section 4935.03 of the Revised Code, and from any | 3379 |
rule or order issued under the exempted provisions of those | 3380 |
chapters. | 3381 |
(B)(1) Subject to division (C) of this section, a natural gas | 3382 |
company subject to an exemption order issued under division (A) of | 3383 |
this section shall, to the maximum extent practicable, keep | 3384 |
separate the company's operations, resources, and employees, and | 3385 |
the associated books and records, involved in the provision or | 3386 |
marketing of a company-provided service related to an investment | 3387 |
exempted under the exemption order from the operations, resources, | 3388 |
and employees, and the associated books and records, involved in | 3389 |
the provision or marketing of any company-provided service not | 3390 |
exempted under the exemption order or any other section of the | 3391 |
Revised Code. | 3392 |
(D) The commission shall have continuous jurisdiction to | 3408 |
enforce any terms that it imposes in an exemption order issued | 3409 |
under division (A) of this section. Whenever the commission is of | 3410 |
the opinion, after hearing had upon complaint or upon its own | 3411 |
initiative or complaint, served as provided in section 4905.26 of | 3412 |
the Revised Code, that an exemption order issued under division | 3413 |
(A) of this section has adversely affected the quality, adequacy, | 3414 |
or sufficiency of service provided by the company subject to the | 3415 |
exemption order, the commission may alter, amend, or suspend the | 3416 |
exemption order. | 3417 |
Sec. 5703.052. (A) There is hereby created in the state | 3418 |
treasury the tax refund fund, from which refunds shall be paid for | 3419 |
taxes illegally or erroneously assessed or collected, or for any | 3420 |
other reason overpaid, that are levied by Chapter 4301., 4305., | 3421 |
5728., 5729., 5733., 5735., 5739., 5741., 5743., 5747., 5748., | 3422 |
5749., or 5751., and sections 3737.71, 3905.35, 3905.36, 4303.33, | 3423 |
5707.03, 5725.18, 5727.28, 5727.38, 5727.81, and 5727.811 of the | 3424 |
Revised Code. Refunds for fees illegally or erroneously assessed | 3425 |
or collected, or for any other reason overpaid, that are levied by | 3426 |
sections 3734.90 to 3734.9014 of the Revised Code also shall be | 3427 |
paid from the fund. Refunds for amounts illegally or erroneously | 3428 |
assessed or collected by the tax commissioner, or for any other | 3429 |
reason overpaid, that are due under section 1509.50 of the Revised | 3430 |
Code shall be paid from the fund. However, refunds for taxes | 3431 |
levied under section 5739.101 of the Revised Code shall not be | 3432 |
paid from the tax refund fund, but shall be paid as provided in | 3433 |
section 5739.104 of the Revised Code. | 3434 |
(B)(1) Upon certification by the tax commissioner to the | 3435 |
treasurer of state of a tax refund or, a fee refund, or an other | 3436 |
amount refunded, or by the superintendent of insurance of a | 3437 |
domestic or foreign insurance tax refund, the treasurer of state | 3438 |
shall place the amount certified to the credit of the fund. The | 3439 |
certified amount transferred shall be derived from current | 3440 |
receipts of the same tax or the, fee, or other amount from which | 3441 |
the refund arose. If current receipts from the tax or, fee, or | 3442 |
other amount from which the refund arose are inadequate to make | 3443 |
the transfer of the amount so certified, the treasurer of state | 3444 |
shall transfer such certified amount from current receipts of the | 3445 |
sales tax levied by section 5739.02 of the Revised Code. | 3446 |
(2) When the treasurer of state provides for the payment of a | 3447 |
refund of a tax or, fee, or other amount from the current receipts | 3448 |
of the sales tax, and the refund is for a tax or, fee, or other | 3449 |
amount that is not levied by the state, the tax commissioner shall | 3450 |
recover the amount of that refund from the next distribution of | 3451 |
that tax or, fee, or other amount that otherwise would be made to | 3452 |
the taxing jurisdiction. If the amount to be recovered would | 3453 |
exceed twenty-five per cent of the next distribution of that tax | 3454 |
or, fee, or other amount, the commissioner may spread the recovery | 3455 |
over more than one future distribution, taking into account the | 3456 |
amount to be recovered and the amount of the anticipated future | 3457 |
distributions. In no event may the commissioner spread the | 3458 |
recovery over a period to exceed twenty-four months. | 3459 |
Sec. 5703.21. (A) Except as provided in divisions (B) and | 3460 |
(C) of this section, no agent of the department of taxation, | 3461 |
except in the agent's report to the department or when called on | 3462 |
to testify in any court or proceeding, shall divulge any | 3463 |
information acquired by the agent as to the transactions, | 3464 |
property, or business of any person while acting or claiming to | 3465 |
act under orders of the department. Whoever violates this | 3466 |
provision shall thereafter be disqualified from acting as an | 3467 |
officer or employee or in any other capacity under appointment or | 3468 |
employment of the department. | 3469 |
(B)(1) For purposes of an audit pursuant to section 117.15 of | 3470 |
the Revised Code, or an audit of the department pursuant to | 3471 |
Chapter 117. of the Revised Code, or an audit, pursuant to that | 3472 |
chapter, the objective of which is to express an opinion on a | 3473 |
financial report or statement prepared or issued pursuant to | 3474 |
division (A)(7) or (9) of section 126.21 of the Revised Code, the | 3475 |
officers and employees of the auditor of state charged with | 3476 |
conducting the audit shall have access to and the right to examine | 3477 |
any state tax returns and state tax return information in the | 3478 |
possession of the department to the extent that the access and | 3479 |
examination are necessary for purposes of the audit. Any | 3480 |
information acquired as the result of that access and examination | 3481 |
shall not be divulged for any purpose other than as required for | 3482 |
the audit or unless the officers and employees are required to | 3483 |
testify in a court or proceeding under compulsion of legal | 3484 |
process. Whoever violates this provision shall thereafter be | 3485 |
disqualified from acting as an officer or employee or in any other | 3486 |
capacity under appointment or employment of the auditor of state. | 3487 |
(2) For purposes of an internal audit pursuant to section | 3488 |
126.45 of the Revised Code, the officers and employees of the | 3489 |
office of internal auditing in the office of budget and management | 3490 |
charged with conducting the internal audit shall have access to | 3491 |
and the right to examine any state tax returns and state tax | 3492 |
return information in the possession of the department to the | 3493 |
extent that the access and examination are necessary for purposes | 3494 |
of the internal audit. Any information acquired as the result of | 3495 |
that access and examination shall not be divulged for any purpose | 3496 |
other than as required for the internal audit or unless the | 3497 |
officers and employees are required to testify in a court or | 3498 |
proceeding under compulsion of legal process. Whoever violates | 3499 |
this provision shall thereafter be disqualified from acting as an | 3500 |
officer or employee or in any other capacity under appointment or | 3501 |
employment of the office of internal auditing. | 3502 |
(7) Providing information regarding the name, account number, | 3537 |
or business address of a holder of a vendor's license issued | 3538 |
pursuant to section 5739.17 of the Revised Code, a holder of a | 3539 |
direct payment permit issued pursuant to section 5739.031 of the | 3540 |
Revised Code, or a seller having a use tax account maintained | 3541 |
pursuant to section 5741.17 of the Revised Code, or information | 3542 |
regarding the active or inactive status of a vendor's license, | 3543 |
direct payment permit, or seller's use tax account; | 3544 |
(B)(1) A separate return shall be filed for each calendar | 3623 |
quarterly period, or other period, or any part thereof, during | 3624 |
which the severer holds a license as provided by section 5749.04 | 3625 |
of the Revised Code, or is required to hold suchthe license, or | 3626 |
during which an owner is required to file a return, and
suchthe | 3627 |
return shall be filed within forty-five days after the last day of | 3628 |
each such calendar month, or other period, or any part thereof, | 3629 |
for which suchthe return is required and shall include remittance | 3630 |
payable to the treasurer of state of the amount of tax due. All | 3631 |
such returns shall contain such information as the commissioner | 3632 |
may require to fairly administer the tax. | 3633 |
(B) Unless the party assessed files with the commissioner | 3684 |
within sixty days after service of the notice of assessment, | 3685 |
either personally or by certified mail, a written petition for | 3686 |
reassessment signed by the party assessed or that party's | 3687 |
authorized agent having knowledge of the facts, the assessment | 3688 |
becomes final and the amount of the assessment is due and payable | 3689 |
from the party assessed to the treasurer of state. The petition | 3690 |
shall indicate the objections of the party assessed, but | 3691 |
additional objections may be raised in writing if received by the | 3692 |
commissioner prior to the date shown on the final determination. | 3693 |
If the petition has been properly filed, the commissioner shall | 3694 |
proceed under section 5703.60 of the Revised Code. | 3695 |
(C) After an assessment becomes final, if any portion of the | 3696 |
assessment remains unpaid, including accrued interest, a certified | 3697 |
copy of the
tax commissioner's entry making the assessment final | 3698 |
may be filed in the office of the clerk of the court of common | 3699 |
pleas in the county in which the party assessed resides or in | 3700 |
which the party's business is conducted. If the party assessed | 3701 |
maintains no place of business in this state and is not a resident | 3702 |
of this state, the certified copy of the entry may be filed in the | 3703 |
office of the clerk of the court of common pleas of Franklin | 3704 |
county. | 3705 |
Sec. 5749.08. The tax commissioner shall refund to taxpayers | 3725 |
the amount of taxes levied by section 5749.02 of the Revised Code | 3726 |
and amounts due under section 1509.50 of the Revised Code that | 3727 |
were paid illegally or erroneously or paid on an illegal or | 3728 |
erroneous assessment. Applications for refund shall be filed with | 3729 |
the tax commissioner, on the form prescribed by the commissioner, | 3730 |
within four years from the date of the illegal or erroneous | 3731 |
payment of the tax. On the filing of the application, the | 3732 |
commissioner shall determine the amount of refund to which the | 3733 |
applicant is entitled, plus interest computed in accordance with | 3734 |
section 5703.47 of the Revised Code from the date of the payment | 3735 |
of an erroneous or illegal assessment until the date the refund is | 3736 |
paid. If the amount is not less than that claimed, the | 3737 |
commissioner shall certify the amount to the director of budget | 3738 |
and management and treasurer of state for payment from the tax | 3739 |
refund fund created by section 5703.052 of the Revised Code. If | 3740 |
the amount is less than that claimed, the commissioner shall | 3741 |
proceed in accordance with section 5703.70 of the Revised Code. | 3742 |
Sec. 5749.10. If the tax commissioner finds that a taxpayer, | 3743 |
liable for tax under this chapter or for any amount due under | 3744 |
section 1509.50 of the Revised Code is about to depart from the | 3745 |
state, or remove the taxpayer's property therefrom, or conceal the | 3746 |
taxpayer's person or property, or do any other act tending to | 3747 |
prejudice or to render wholly or partly ineffectual proceedings to | 3748 |
collect such tax or other amount due unless such proceedings are | 3749 |
brought without delay, or if the commissioner believes that the | 3750 |
collection of the tax or amount due from any taxpayer will be | 3751 |
jeopardized by delay, the commissioner shall give notice of such | 3752 |
findings to such taxpayer together with the demand for an | 3753 |
immediate return and immediate payment of such tax or other amount | 3754 |
due, with penalty as provided in section 5749.15 of the Revised | 3755 |
Code, whereupon such tax or other amount due shall become | 3756 |
immediately due and payable. In such cases the commissioner may | 3757 |
immediately file an entry with the clerk of the court of common | 3758 |
pleas in the same manner and with the same effect as provided in | 3759 |
section 5749.07 of the Revised Code, provided, that if such | 3760 |
taxpayer, within five days from notice of the assessment, | 3761 |
furnishes evidence satisfactory to the commissioner, under the | 3762 |
regulations prescribed by the commissioner, that the taxpayer is | 3763 |
not in default in making returns or paying any tax prescribed by | 3764 |
this chapter or amount due under section 1509.50 of the Revised | 3765 |
Code, or that the taxpayer will duly return and pay, or post bond | 3766 |
satisfactory to the commissioner conditioned upon payment of the | 3767 |
tax or other amount finally determined to be due, then such tax or | 3768 |
other amount due shall not be payable prior to the time and manner | 3769 |
otherwise fixed for payment under section 5749.07 of the Revised | 3770 |
Code, and the person assessed shall be restored the rights granted | 3771 |
under such section. Upon satisfaction of the assessment the | 3772 |
commissioner shall order the bond cancelled, securities released, | 3773 |
and judgment vacated. | 3774 |
Sec. 5749.13. The tax commissioner may prescribe | 3788 |
requirements as to the keeping of records and other pertinent | 3789 |
documents and the filing of copies of federal income tax returns | 3790 |
and determinations. The commissioner may require any person, by | 3791 |
rule or by notice served on that person, to keep such records as | 3792 |
the commissioner considers necessary to show whether that person | 3793 |
is liable, and the extent of liability, for the tax imposed under | 3794 |
this chapter and the amount due under section 1509.50 of the | 3795 |
Revised Code. Such records and other documents shall be open | 3796 |
during business hours to the inspection of the commissioner, and | 3797 |
shall be preserved for a period of four years after the date the | 3798 |
return was required to be filed or actually was filed, whichever | 3799 |
is later, unless the commissioner, in writing, consents to their | 3800 |
destruction within that period, or by order requires that they be | 3801 |
kept longer. | 3802 |
Section 2. That existing sections 1509.01, 1509.02, 1509.03, | 3830 |
1509.04, 1509.05, 1509.06, 1509.07, 1509.071, 1509.072, 1509.10, | 3831 |
1509.11, 1509.12, 1509.13, 1509.14, 1509.17, 1509.18, 1509.20, | 3832 |
1509.21, 1509.22, 1509.221, 1509.222, 1509.225, 1509.226, 1509.23, | 3833 |
1509.24, 1509.27, 1509.31, 1509.35, 1509.36, 1565.07, 1565.13, | 3834 |
1571.05, 5703.052, 5703.21, 5749.01, 5749.03, 5749.06, 5749.07, | 3835 |
5749.08, 5749.10, 5749.12, 5749.13, 5749.14, 5749.15, and 5749.17 | 3836 |
of the Revised Code are hereby repealed. | 3837 |