As Passed by the Senate

128th General Assembly Regular Session 2009-2010

Sub. S. B. No. 165

Senator Niehaus 

Cosponsors: Senators Gibbs, Stewart, Carey, Harris, Seitz, Hughes, Schaffer, Wilson, Cates, Wagoner, Coughlin 

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A BILL

To amend sections 1509.01, 1509.02, 1509.03, 1509.04,

1

1509.05, 1509.06, 1509.07, 1509.071, 1509.072,

2

1509.10, 1509.11, 1509.12, 1509.13, 1509.14,

3

1509.17, 1509.18, 1509.20, 1509.21, 1509.22,

4

1509.221, 1509.222, 1509.225, 1509.226, 1509.23,

5

1509.24, 1509.27, 1509.31, 1509.35, 1509.36,

6

1565.07, 1565.13, 1571.05, and 5749.06 and to

7

enact sections 1509.021, 1509.062, 1509.073,

8

1509.19, 1509.34, 1509.50, 1509.60, and 1509.61 of

9

the Revised Code to revise the Oil and Gas Law.

10

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

Section 1.  That sections 1509.01, 1509.02, 1509.03, 1509.04,	11
1509.05, 1509.06, 1509.07, 1509.071, 1509.072, 1509.10, 1509.11,	12
1509.12, 1509.13, 1509.14, 1509.17, 1509.18, 1509.20, 1509.21,	13
1509.22, 1509.221, 1509.222, 1509.225, 1509.226, 1509.23, 1509.24,	14
1509.27, 1509.31, 1509.35, 1509.36, 1565.07, 1565.13, 1571.05, and	15
5749.06 be amended and sections 1509.021, 1509.062, 1509.073,	16
1509.19, 1509.34, 1509.50, 1509.60, and 1509.61 of the Revised	17
Code be enacted to read as follows:	18

Sec. 1509.01.  As used in this chapter:

19

(A) "Well" means any borehole, whether drilled or bored,	20
within the state for production, extraction, or injection of any	21
gas or liquid mineral, excluding potable water to be used as such,	22
but including natural or artificial brines and oil field waters.	23

(B) "Oil" means crude petroleum oil and all other	24
hydrocarbons, regardless of gravity, that are produced in liquid	25
form by ordinary production methods, but does not include	26
hydrocarbons that were originally in a gaseous phase in the	27
reservoir.	28

(C) "Gas" means all natural gas and all other fluid	29
hydrocarbons that are not oil, including condensate.	30

(D) "Condensate" means liquid hydrocarbons that were	31
originally in the gaseous phase in the reservoir.	32

(E) "Pool" means an underground reservoir containing a common	33
accumulation of oil or gas, or both, but does not include a gas	34
storage reservoir. Each zone of a geological structure that is	35
completely separated from any other zone in the same structure may	36
contain a separate pool.	37

(F) "Field" means the general area underlaid by one or more	38
pools.	39

(G) "Drilling unit" means the minimum acreage on which one	40
well may be drilled, but does not apply to a well for injecting	41
gas into or removing gas from a gas storage reservoir.	42

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

43

(1) Physical waste, as that term generally is understood in	44
the oil and gas industry;	45

(2) Inefficient, excessive, or improper use, or the	46
unnecessary dissipation, of reservoir energy;	47

(3) Inefficient storing of oil or gas;

48

(4) Locating, drilling, equipping, operating, or producing an	49
oil or gas well in a manner that reduces or tends to reduce the	50
quantity of oil or gas ultimately recoverable under prudent and	51
proper operations from the pool into which it is drilled or that	52
causes or tends to cause unnecessary or excessive surface loss or	53
destruction of oil or gas;	54

(5) Other underground or surface waste in the production or	55
storage of oil, gas, or condensate, however caused.	56

(I) "Correlative rights" means the reasonable opportunity to	57
every person entitled thereto to recover and receive the oil and	58
gas in and under the person's tract or tracts, or the equivalent	59
thereof, without having to drill unnecessary wells or incur other	60
unnecessary expense.	61

(J) "Tract" means a single, individually taxed parcel of land	62
appearing on the tax list.	63

(K) "Owner," unless referring to a mine, means the person who	64
has the right to drill on a tract or drilling unit, to drill into	65
and produce from a pool, and to appropriate the oil or gas	66
produced therefrom either for the person or for others, except	67
that a person ceases to be an owner with respect to a well when	68
the well has been plugged in accordance with applicable rules	69
adopted and orders issued under this chapter. "Owner" does not	70
include a person who obtains a lease of the mineral rights for oil	71
and gas on a parcel of land if the person does not attempt to	72
produce or produce oil or gas from a well or obtain a permit under	73
this chapter for a well or if the entire interest of a well is	74
transferred to the person in accordance with division (B) of	75
section 1509.31 of the Revised Code.	76

(L) "Royalty interest" means the fee holder's share in the	77
production from a well.	78

(M) "Discovery well" means the first well capable of	79
producing oil or gas in commercial quantities from a pool.	80

(N) "Prepared clay" means a clay that is plastic and is	81
thoroughly saturated with fresh water to a weight and consistency	82
great enough to settle through saltwater in the well in which it	83
is to be used, except as otherwise approved by the chief of the	84
division of mineral resources management.	85

(O) "Rock sediment" means the combined cutting and residue	86
from drilling sedimentary rocks and formation.	87

(P) "Excavations and workings," "mine," and "pillar" have the	88
same meanings as in section 1561.01 of the Revised Code.	89

(Q) "Coal bearing township" means a township designated as	90
such by the chief under section 1561.06 of the Revised Code.	91

(R) "Gas storage reservoir" means a continuous area of a	92
subterranean porous sand or rock stratum or strata into which gas	93
is or may be injected for the purpose of storing it therein and	94
removing it therefrom and includes a gas storage reservoir as	95
defined in section 1571.01 of the Revised Code.	96

(S) "Safe Drinking Water Act" means the "Safe Drinking Water	97
Act," 88 Stat. 1661 (1974), 42 U.S.C.A. 300(f), as amended by the	98
"Safe Drinking Water Amendments of 1977," 91 Stat. 1393, 42	99
U.S.C.A. 300(f), the "Safe Drinking Water Act Amendments of 1986,"	100
100 Stat. 642, 42 U.S.C.A. 300(f), and the "Safe Drinking Water	101
Act Amendments of 1996," 110 Stat. 1613, 42 U.S.C.A. 300(f), and	102
regulations adopted under those acts.	103

(T) "Person" includes any political subdivision, department,	104
agency, or instrumentality of this state; the United States and	105
any department, agency, or instrumentality thereof; and any legal	106
entity defined as a person under section 1.59 of the Revised Code.	107

(U) "Brine" means all saline geological formation water	108
resulting from, obtained from, or produced in connection with the	109
exploration, drilling, orwell stimulation, production of oil or	110
gas, or plugging of a well.	111

(V) "Waters of the state" means all streams, lakes, ponds,	112
marshes, watercourses, waterways, springs, irrigation systems,	113
drainage systems, and other bodies of water, surface or	114
underground, natural or artificial, that are situated wholly or	115
partially within this state or within its jurisdiction, except	116
those private waters that do not combine or effect a junction with	117
natural surface or underground waters.	118

(W) "Exempt Mississippian well" means a well that meets all	119
of the following criteria:	120

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

121

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

122

(3) Was completed in a reservoir no deeper than the	123
Mississippian Big Injun sandstone in areas underlain by	124
Pennsylvanian or Permian stratigraphy, or the Mississippian berea	125
Berea sandstone in areas directly underlain by Permian	126
stratigraphy;	127

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

128

(X) "Exempt domestic well" means a well that meets all of the	129
following criteria:	130

(1) Is owned by the owner of the surface estate of the tract	131
on which the well is located;	132

(2) Is used primarily to provide gas for the owner's domestic	133
use;	134

(3) Is located more than two hundred feet horizontal distance	135
from any inhabited private dwelling house other than an inhabited	136
private dwelling house located on the tract on which the well is	137
located;	138

(4) Is located more than two hundred feet horizontal distance	139
from any public building that may be used as a place of resort,	140
assembly, education, entertainment, lodging, trade, manufacture,	141
repair, storage, traffic, or occupancy by the public.	142

(Y) "Urbanized area" means an area where a well or production	143
facilities of a well are located within a municipal corporation or	144
within a township that has an unincorporated population of more	145
than five thousand in the most recent federal decennial census	146
prior to the issuance of the permit for the well or production	147
facilities.	148

(Z) "Well stimulation" or "stimulation of a well" means the	149
process of enhancing well productivity, including hydraulic	150
fracturing operations.	151

(AA) "Production operation" means site preparation, access	152
roads, drilling, well completion, well stimulation, well	153
operation, site reclamation, and well plugging. "Production	154
operation" also includes all of the following:	155

(1) The piping and equipment used for the production and	156
preparation of hydrocarbon gas or liquids for transportation or	157
delivery;	158

(2) The processes of extraction and recovery, lifting,	159
stabilization, treatment, separation, production processing,	160
storage, and measurement of hydrocarbon gas and liquids;	161

(3) The processes associated with production compression, gas	162
lift, gas injection, and fuel gas supply.	163

(BB) "Annular overpressurization" means the accumulation of	164
fluids within an annulus with sufficient pressure to allow	165
migration of annular fluids into underground sources of drinking	166
water.	167

(CC) "Idle and orphaned well" means a well for which a bond	168
has been forfeited or an abandoned well for which no money is	169
available to plug the well in accordance with this chapter and	170
rules adopted under it.	171

(DD) "Temporarily inactive well" means a well that has been	172
granted temporary inactive status under section 1509.062 of the	173
Revised Code.	174

(EE) "Material and substantial violation" means all of the	175
following:	176

(1) Failure to obtain a permit to drill, reopen, convert,	177
plugback, or plug a well under this chapter;	178

(2) Failure to obtain or maintain insurance coverage that is	179
required under this chapter;	180

(3) Failure to obtain or maintain a surety bond that is	181
required under this chapter;	182

(4) Failure to plug an abandoned well or idle and orphaned	183
well unless the well has been granted temporary inactive status	184
under section 1509.062 of the Revised Code or the chief has	185
approved another option concerning the abandoned well or idle and	186
orphaned well;	187

(5) Failure to restore a disturbed land surface as required	188
by section 1509.072 of the Revised Code;	189

(6) Failure to reimburse the oil and gas fund pursuant to a	190
final order issued under section 1509.071 of the Revised Code;	191

(7) Failure to comply with a final nonappealable order of the	192
chief issued under section 1509.04 of the Revised Code.	193

Sec. 1509.02.  There is hereby created in the department of	194
natural resources the division of mineral resources management,	195
which shall be administered by the chief of the division of	196
mineral resources management. The division has sole and exclusive	197
authority to regulate the permitting, location, and spacing of oil	198
and gas wells and production operations within the state. The	199
regulation of oil and gas activities is a matter of general	200
statewide interest that requires uniform statewide regulation, and	201
this chapter and rules adopted under it constitute a comprehensive	202
plan with respect to all aspects of the locating, drilling, and	203
operating of oil and gas wells within this state, including site	204
restoration and disposal of wastes from those wells. Nothing in	205
this section affects the authority granted to the director of	206
transportation and local authorities in section 4513.34 of the	207
Revised Code.	208

The chief shall not hold any other public office, nor shall	209
the chief be engaged in any occupation or business that might	210
interfere with or be inconsistent with the duties as chief.	211

All moneys collected by the chief pursuant to sections	212
1509.06, 1509.061, 1509.062, 1509.071, 1509.13, 1509.22, and	213
1509.221, 1509.222, 1509.34, and 1509.50, ninety per cent of	214
moneys received by the treasurer of state from the tax levied in	215
divisions (A)(5) and (6) of section 5749.02, all civil penalties	216
paid under section 1509.33, and, notwithstanding any section of	217
the Revised Code relating to the distribution or crediting of	218
fines for violations of the Revised Code, all fines imposed under	219
divisions (A) and (B) of section 1509.99 of the Revised Code and	220
fines imposed under divisions (C) and (D) of section 1509.99 of	221
the Revised Code for all violations prosecuted by the attorney	222
general and for violations prosecuted by prosecuting attorneys	223
that do not involve the transportation of brine by vehicle shall	224
be deposited into the state treasury to the credit of the oil and	225
gas well fund, which is hereby created. Fines imposed under	226
divisions (C) and (D) of section 1509.99 of the Revised Code for	227
violations prosecuted by prosecuting attorneys that involve the	228
transportation of brine by vehicle and penalties associated with a	229
compliance agreement entered into pursuant to this chapter shall	230
be paid to the county treasury of the county where the violation	231
occurred.	232

The fund shall be used solely and exclusively for the	233
purposes enumerated in division (B) of section 1509.071 of the	234
Revised Code, for the expenses of the division associated with the	235
administration of the "Natural Gas Policy Act of 1978," 92 Stat.	236
3358, 15 U.S.C. 3301, and for the division's other functionsthis	237
chapter and Chapter 1571. of the Revised Code and rules adopted	238
under them, and for expenses that are critical and necessary for	239
the protection of human health and safety and the environment	240
related to oil and gas production in this state. The expenses of	241
the division in excess of the moneys available in the fund shall	242
be paid from general revenue fund appropriations to the	243
department.	244

Sec. 1509.021.  (A) On and after the effective date of this	245
section, the surface location of a new well shall not be within	246
one hundred fifty feet of an occupied dwelling that is located in	247
an urbanized area unless the owner of the land on which the	248
occupied dwelling is located consents in writing to the surface	249
location of the well less than one hundred fifty feet from the	250
occupied dwelling and the chief of the division of mineral	251
resources management approves the written consent of that owner.	252
However, the chief shall not approve the written consent of such	253
an owner when the surface location of a new well will be within	254
one hundred feet of an occupied dwelling that is located in an	255
urbanized area.	256

(B) On and after the effective date of this section, the	257
surface location of a new well shall not be less than one hundred	258
fifty feet from the property line of a parcel of land that is not	259
in the drilling unit of the well if the parcel of land is located	260
in an urbanized area and directional drilling will be used to	261
drill the new well unless the owner of the parcel of land consents	262
in writing to the surface location of the well less than one	263
hundred fifty feet from the property line of the parcel of land	264
and the chief approves the written consent of that owner. However,	265
the chief shall not approve the written consent of such an owner	266
when the surface location of a new well will be less than one	267
hundred feet from the property line of the owner's parcel of land	268
that is not in the drilling unit of the well if the parcel of land	269
is located in an urbanized area and directional drilling will be	270
used.	271

Sec. 1509.03.  The chief of the division of mineral resources	272
management shall adopt, rescind, and amend, in accordance with	273
Chapter 119. of the Revised Code, rules for the administration,	274
implementation, and enforcement of this chapter. The rules shall	275
include an identification of the subjects that the chief shall	276
address when attaching terms and conditions to a permit with	277
respect to a well and production facilities of a well that are	278
located within an urbanized area. The subjects shall include all	279
of the following:	280

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

281

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

282

(C) Location of surface facilities of a well;

283

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

284

(E) Containment and disposal of drilling and production	285
wastes;	286

(F) Construction of access roads for purposes of the drilling	287
and operation of a well;	288

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

289

No person shall violate any rule of the chief adopted under	290
this chapter.	291

Prior to the issuance of a permit to drill a proposed well	292
that will be located within an urbanized area, the division of	293
mineral resources management shall conduct a site review to	294
identify and evaluate any site-specific terms and conditions that	295
may be attached to the permit.	296

Any order issuing, denying, or modifying a permit or notices	297
required to be made by the chief pursuant to this chapter shall be	298
made in compliance with Chapter 119. of the Revised Code, except	299
that personal service may be used in lieu of service by mail.	300
Every order issuing, denying, or modifying a permit under this	301
chapter and described as such shall be considered an adjudication	302
order for purposes of Chapter 119. of the Revised Code.	303

Where notice to the owners is required by this chapter, the	304
notice shall be given as prescribed by a rule adopted by the chief	305
to govern the giving of notices. SuchThe rule shall provide for	306
notice by publication except in those cases where other types of	307
notice are necessary in order to meet the requirements of the law.	308

The chief or the chief's authorized representative may at any	309
time enter upon lands, public or private, for the purpose of	310
administration or enforcement of this chapter, the rules adopted	311
or orders made thereunder, or terms or conditions of permits or	312
registration certificates issued thereunder and may examine and	313
copy records pertaining to the drilling, conversion, or operation	314
of a well for injection of fluids and logs required by division	315
(C) of section 1509.223 of the Revised Code. No person shall	316
prevent or hinder the chief or the chief's authorized	317
representative in the performance of official duties. If entry is	318
prevented or hindered, the chief or the chief's authorized	319
representative may apply for, and the court of common pleas may	320
issue, an appropriate inspection warrant necessary to achieve the	321
purposes of this chapter within the court's territorial	322
jurisdiction.	323

The chief may issue orders to enforce this chapter, rules	324
adopted thereunder, and terms or conditions of permits issued	325
thereunder. Any such order shall be considered an adjudication	326
order for the purposes of Chapter 119. of the Revised Code. No	327
person shall violate any order of the chief issued under this	328
chapter. No person shall violate a term or condition of a permit	329
or registration certificate issued under this chapter.	330

Orders of the chief denying, suspending, or revoking a	331
registration certificate; approving or denying approval of an	332
application for revision of a registered transporter's plan for	333
disposal; or to implement, administer, or enforce division (A) of	334
section 1509.224 and sections 1509.22, 1509.222, 1509.223,	335
1509.225, and 1509.226 of the Revised Code pertaining to the	336
transportation of brine by vehicle and the disposal of brine so	337
transported are not adjudication orders for purposes of Chapter	338
119. of the Revised Code. The chief shall issue such orders under	339
division (A) or (B) of section 1509.224 of the Revised Code, as	340
appropriate.	341

As used in this section, "urbanized area" means an area where	342
a well or production facilities of a well are located within a	343
municipal corporation or within a township that has an	344
unincorporated population of more than five thousand in the most	345
recent federal decennial census prior to the issuance of the	346
permit for the well or production facilities.	347

Sec. 1509.04.  The chief of the division of mineral resources	348
management, or the chief's authorized representatives, shall	349
enforce this chapter and the rules, terms and conditions of	350
permits and registration certificates, and orders adopted or	351
issued pursuant thereto, except that any "peace officer," as	352
defined in section 2935.01 of the Revised Code, may arrest for	353
violations of this chapter involving transportation of brine by	354
vehicle. The	355

The chief or the chief's authorized representative may issue	356
a citation to an owner for a violation of this chapter or rules	357
adopted under it, terms and conditions of a permit issued under	358
it, a registration certificate that is required under this	359
chapter, or orders issued under this chapter. A citation may be in	360
the form of a compliance notice or administrative order.	361

The chief may issue an order to initiate an enforcement	362
action for a material and substantial violation. In addition, the	363
chief may issue a suspension order for failure to comply with an	364
enforcement action for a material and substantial violation or	365
other violation.	366

The chief may order the immediate suspension of drilling,	367
operating, or plugging activities that are related to a material	368
and substantial violation and suspend and revoke an unused permit	369
after finding that an owner is causing, engaging in, or	370
maintaining a condition or activity that the chief determines	371
presents an imminent danger to the health or safety of the public	372
or that results in or is likely to result in immediate substantial	373
damage to the natural resources of this state. The chief may issue	374
such an order without prior notification if reasonable attempts to	375
notify the owner have failed or if the owner is currently in	376
material breach of a prior enforcement action, but in such an	377
event notification shall be given as soon thereafter as practical.	378

Not later than five days after the issuance of a suspension	379
order, the chief shall provide the owner an opportunity to be	380
heard and to present evidence that the condition or activity does	381
not present an imminent danger to the public health or safety or	382
is not likely to result in immediate substantial damage to natural	383
resources. If the chief, after considering evidence presented by	384
the owner, determines that the activities do not present such a	385
threat, the chief shall revoke the suspension order. The owner may	386
appeal a suspension order to the court of common pleas of the	387
county in which the activity that is the subject of the order is	388
located.	389

The chief also may issue a bond forfeiture order pursuant to	390
section 1509.071 of the Revised Code.	391

The chief may notify drilling contractors, transporters,	392
service companies, or other similar entities of the compliance	393
status of an owner.	394

If the owner fails to comply with a prior enforcement action,	395
the chief may issue a suspension order without prior notification,	396
but in such an event the chief shall give notice as soon	397
thereafter as practical. Not later than five calendar days after	398
the issuance of an order, the chief shall provide the owner an	399
opportunity to be heard and to present evidence that required	400
records, reports, or logs have been submitted. If the chief, after	401
considering the evidence presented by the owner, determines that	402
the reporting requirements have been satisfied, the chief shall	403
revoke the suspension order. The owner may appeal a suspension	404
order to the court of common pleas of the county in which the	405
activity that is the subject of the suspension order is located.	406

The prosecuting attorney of the county or the attorney	407
general, upon the request of the chief, may apply to the court of	408
common pleas in the county in which any of the provisions of this	409
chapter or any rules, terms or conditions of a permit or	410
registration certificate, or orders adopted or issued pursuant to	411
this chapter are being violated for a temporary restraining order,	412
preliminary injunction, or permanent injunction restraining any	413
person from such violation.	414

The chief may enter into compliance agreements.

415

Sec. 1509.05.  No person shall drill a new well, drill an	416
existing well any deeper, reopen a well, convert a well to any use	417
other than its original purpose, or plug back a well to a source	418
of supply different from the existing pool, without having a	419
permit to do so issued by the chief of the division of mineral	420
resources management, and until the original permit or a	421
photostatic copy thereof is posted or displayed in a conspicuous	422
and easily accessible place at the well site, with the name,	423
current address, and telephone number of the permit holder and the	424
telephone numbers for fire and emergency medical services	425
maintained on the posted permit or copy. The permit or a copy	426
shall be continuously displayed in suchthat manner at all times	427
during the work authorized by the permit.	428

SuchA permit shall be issued by the chief in accordance with	429
this chapter and. A permit issued under this section for a well	430
that is or is to be located in an urbanized area shall be valid	431
for twelve months, and all other permits issued under this section	432
shall be valid for twenty-four months.	433

Sec. 1509.06. (A) An application for a permit to drill a new	434
well, drill an existing well deeper, reopen a well, convert a well	435
to any use other than its original purpose, or plug back a well to	436
a different source of supply, including associated production	437
operations, shall be filed with the chief of the division of	438
mineral resources management upon such form as the chief	439
prescribes and shall contain each of the following that is	440
applicable:	441

(1) The name and address of the owner and, if a corporation,	442
the name and address of the statutory agent;	443

(2) The signature of the owner or the owner's authorized	444
agent. When an authorized agent signs an application, it shall be	445
accompanied by a certified copy of the appointment as such agent.	446

(3) The names and addresses of all persons holding the	447
royalty interest in the tract upon which the well is located or is	448
to be drilled or within a proposed drilling unit;	449

(4) The location of the tract or drilling unit on which the	450
well is located or is to be drilled identified by section or lot	451
number, city, village, township, and county;	452

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

453

(6) The geological formation to be tested or used and the	454
proposed total depth of the well;	455

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

456

(8) If the well is for the injection of a liquid, identity of	457
the geological formation to be used as the injection zone and the	458
composition of the liquid to be injected;	459

(9) For an application for a permit to drill a new well	460
within an urbanized area, a sworn statement that the applicant has	461
provided notice by regular mail of the application to the owner of	462
each occupied dwelling unitparcel of real property that is	463
located within five hundred feet of the surface location of the	464
well if the surface location will be less than five hundred feet	465
from the boundary of the drilling unit and more than fifteen	466
occupied dwelling units are located less than five hundred feet	467
from the surface location of the well, excluding any dwelling that	468
is located on real property all or any portion of which is	469
included in the drilling unit. In addition, the notice shall	470
contain a statement that informs an owner of real property who is	471
required to receive the notice under division (A)(9) of this	472
section that within five days of receipt of the notice, the owner	473
is required to provide notice under section 1509.60 of the Revised	474
Code to each residence in an occupied dwelling that is located on	475
the owner's parcel of real property. The notice shall contain a	476
statement that an application has been filed with the division of	477
mineral resources management, identify the name of the applicant	478
and the proposed well location, include the name and address of	479
the division, and contain a statement that comments regarding the	480
application may be sent to the division. The notice may be	481
provided by hand delivery or regular mail. The identity of the	482
owners of occupied dwelling unitsparcels of real property shall	483
be determined using the tax records of the municipal corporation	484
or county in which the dwelling unita parcel of real property is	485
located as of the date of the notice.	486

(10) A plan for restoration of the land surface disturbed by	487
drilling operations. The plan shall provide for compliance with	488
the restoration requirements of division (A) of section 1509.072	489
of the Revised Code and any rules adopted by the chief pertaining	490
to that restoration.	491

(11) A description by name or number of the county, township,	492
and municipal corporation roads, streets, and highways that the	493
applicant anticipates will be used for access to and egress from	494
the well site;	495

(12) Such other relevant information as the chief prescribes	496
by rule.	497

Each application shall be accompanied by a map, on a scale	498
not smaller than four hundred feet to the inch, prepared by an	499
Ohio registered surveyor, showing the location of the well and	500
containing such other data as may be prescribed by the chief. If	501
the well is or is to be located within the excavations and	502
workings of a mine, the map also shall include the location of the	503
mine, the name of the mine, and the name of the person operating	504
the mine.	505

(B) The chief shall cause a copy of the weekly circular	506
prepared by the division to be provided to the county engineer of	507
each county that contains active or proposed drilling activity.	508
The weekly circular shall contain, in the manner prescribed by the	509
chief, the names of all applicants for permits, the location of	510
each well or proposed well, the information required by division	511
(A)(11) of this section, and any additional information the chief	512
prescribes. In addition, the chief promptly shall transfer an	513
electronic copy or facsimile, or if those methods are not	514
available to a municipal corporation or township, a copy via	515
regular mail, of a drilling permit application to the clerk of the	516
legislative authority of the municipal corporation or to the clerk	517
of the township in which the well or proposed well is or is to be	518
located if the legislative authority of the municipal corporation	519
or the board of township trustees has asked to receive copies of	520
such applications and the appropriate clerk has provided the chief	521
an accurate, current electronic mailing address or facsimile	522
number, as applicable.	523

(C) The(1) Except as provided in division (C)(2) of this	524
section, the chief shall not issue a permit for at least ten days	525
after the date of filing of the application for the permit unless,	526
upon reasonable cause shown, the chief waives that period or a	527
request for expedited review is filed under this section. However,	528
the chief shall issue a permit within twenty-one days of the	529
filing of the application unless the chief denies the application	530
by order.	531

(2) If the location of a well or proposed well will be or is	532
within an urbanized area, the chief shall not issue a permit for	533
at least eighteen days after the date of filing of the application	534
for the permit unless, upon reasonable cause shown, the chief	535
waives that period or the chief at the chief's discretion grants a	536
request for an expedited review. However, the chief shall issue a	537
permit for a well or proposed well within an urbanized area within	538
thirty days of the filing of the application unless the chief	539
denies the application by order.	540

(D) An applicant may file a request with the chief for	541
expedited review of a permit application if the well is not or is	542
not to be located in a gas storage reservoir or reservoir	543
protective area, as "reservoir protective area" is defined in	544
section 1571.01 of the Revised Code. If the well is or is to be	545
located in a coal bearing township, the application shall be	546
accompanied by the affidavit of the landowner prescribed in	547
section 1509.08 of the Revised Code.	548

In addition to a complete application for a permit that meets	549
the requirements of this section and the permit fee prescribed by	550
this section, a request for expedited review shall be accompanied	551
by a separate nonrefundable filing fee of fivetwo hundred fifty	552
dollars. Upon the filing of a request for expedited review, the	553
chief shall cause the county engineer of the county in which the	554
well is or is to be located to be notified of the filing of the	555
permit application and the request for expedited review by	556
telephone or other means that in the judgment of the chief will	557
provide timely notice of the application and request. The chief	558
shall issue a permit within seven days of the filing of the	559
request unless the chief denies the application by order.	560
Notwithstanding the provisions of this section governing expedited	561
review of permit applications, the chief may refuse to accept	562
requests for expedited review if, in the chief's judgment, the	563
acceptance of the requests would prevent the issuance, within	564
twenty-one days of their filing, of permits for which applications	565
are pending.	566

(E) A well shall be drilled and operated in accordance with	567
the plans, sworn statements, and other information submitted in	568
the approved application.	569

(F) The chief shall issue an order denying a permit if the	570
chief finds that there is a substantial risk that the operation	571
will result in violations of this chapter or rules adopted under	572
it that will present an imminent danger to public health or safety	573
or damage to the environment, provided that where the chief finds	574
that terms or conditions to the permit can reasonably be expected	575
to prevent such violations, the chief shall issue the permit	576
subject to those terms or conditions, including, if applicable,	577
terms and conditions regarding subjects identified in rules	578
adopted under section 1509.03 of the Revised Code. The issuance of	579
a permit shall not be considered an order of the chief.	580

(G) Each application for a permit required by section 1509.05	581
of the Revised Code, except an application to plug back an	582
existing well that is required by that section and an application	583
for a well drilled or reopened for purposes of section 1509.22 of	584
the Revised Code, also shall be accompanied by a nonrefundable fee	585
as follows:	586

(1) TwoFive hundred fifty dollars for a permit to conduct	587
activities in a township with a population of fewer than fiveten	588
thousand;	589

(2) Five hundred dollars for a permit to conduct activities	590
in a township with a population of five thousand or more, but	591
fewer than ten thousand;	592

(3) Seven hundred fifty dollars for a permit to conduct	593
activities in a township with a population of ten thousand or	594
more, but fewer than fifteen thousand;	595

(4)(3) One thousand dollars for a permit to conduct	596
activities in either of the following:	597

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

598

(b) A municipal corporation regardless of population.

599

(4) If the application is for a permit that requires	600
mandatory pooling, an additional five thousand dollars.	601

For purposes of calculating fee amounts, populations shall be	602
determined using the most recent federal decennial census.	603

Each application for the revision or reissuance of a permit	604
shall be accompanied by a nonrefundable fee of two hundred fifty	605
dollars.	606

(H) The chief may order the immediate suspension of drilling,	607
operating, or plugging activities after finding that any person is	608
causing, engaging in, or maintaining a condition or activity that	609
in the chief's judgment presents an imminent danger to public	610
health or safety or results in or is likely to result in immediate	611
substantial damage to natural resources or for nonpayment of a fee	612
required by this section. The chief may order the immediate	613
suspension of the drilling or reopening of a well in a coal	614
bearing township after determining that the drilling or reopening	615
activities present an imminent and substantial threat to public	616
health or safety or to miners' health or safety. Before issuing	617
any such order, the chief shall notify the owner in such manner as	618
in the chief's judgment would provide reasonable notification that	619
the chief intends to issue a suspension order. The chief may issue	620
such an order without prior notification if reasonable attempts to	621
notify the owner have failed, but in such an event notification	622
shall be given as soon thereafter as practical. Within five	623
calendar days after the issuance of the order, the chief shall	624
provide the owner an opportunity to be heard and to present	625
evidence that the condition or activity is not likely to result in	626
immediate substantial damage to natural resources or does not	627
present an imminent danger to public health or safety or to	628
miners' health or safety, if applicable. In the case of activities	629
in a coal bearing township, if the chief, after considering	630
evidence presented by the owner, determines that the activities do	631
not present such a threat, the chief shall revoke the suspension	632
order. Notwithstanding any provision of this chapter, the owner	633
may appeal a suspension order directly to the court of common	634
pleas of the county in which the activity is located or, if in a	635
coal bearing township, to the reclamation commission under section	636
1513.13 of the Revised CodeA permittee or a permittee's	637
authorized representative shall notify an inspector from the	638
division of mineral resources management at least twenty-four	639
hours, or another time period agreed to by the chief's authorized	640
representative, prior to the commencement of drilling, reopening,	641
converting, well stimulation, or plugback operations.	642

Sec. 1509.062. (A)(1) The owner of a well that has not been	643
completed, a well that has not produced within one year after	644
completion, or an existing well that has no reported production	645
for two consecutive reporting periods as reported in accordance	646
with section 1509.11 of the Revised Code shall plug the well in	647
accordance with section 1509.12 of the Revised Code, obtain	648
temporary inactive well status for the well in accordance with	649
this section, or perform another activity regarding the well that	650
is approved by the chief of the division of mineral resources	651
management.	652

(2) If a well has a reported annual production that is less	653
than one hundred thousand cubic feet of natural gas or fifteen	654
barrels of crude oil, or a combination thereof, the chief may	655
require the owner of the well to submit an application for	656
temporary inactive well status under this section for the well.	657

(B) In order for the owner of a well to submit an application	658
for temporary inactive well status for the well under this	659
division, the owner and the well shall be in compliance with this	660
chapter and rules adopted under it, any terms and conditions of	661
the permit for the well, and applicable orders issued by the	662
chief. An application for temporary inactive status for a well	663
shall be submitted to the chief on a form prescribed and provided	664
by the chief and shall contain all of the following:	665

(1) The owner's name and address and, if the owner is a	666
corporation, the name and address of the corporation's statutory	667
agent;	668

(2) The signature of the owner or of the owner's authorized	669
agent. When an authorized agent signs an application, the	670
application shall be accompanied by a certified copy of the	671
appointment as such agent.	672

(3) The permit number assigned to the well. If the well has	673
not been assigned a permit number, the chief shall assign a permit	674
number to the well.	675

(4) A map, on a scale not smaller than four hundred feet to	676
the inch, that shows the location of the well and the tank	677
battery, that includes the latitude and longitude of the well, and	678
that contains all other data that are required by the chief;	679

(5) A demonstration that the well is of future utility and	680
that the applicant has a viable plan to utilize the well within a	681
reasonable period of time;	682

(6) A demonstration that the well poses no threat to the	683
health or safety of persons, property, or the environment;	684

(7) Any other relevant information that the chief prescribes	685
by rule.	686

The chief may waive any of the requirements established in	687
divisions (B)(1) to (6) of this section if the division of mineral	688
resources management possesses a current copy of the information	689
or document that is required in the applicable division.	690

(C) Upon receipt of an application for temporary inactive	691
well status, the chief shall review the application and shall	692
either deny the application by issuing an order or approve the	693
application. The chief shall approve the application only if the	694
chief determines that the well that is the subject of the	695
application poses no threat to the health or safety of persons,	696
property, or the environment. If the chief approves the	697
application, the chief shall notify the applicant of the chief's	698
approval. Upon receipt of the chief's approval, the owner shall	699
shut in the well and empty all liquids and gases from all storage	700
tanks, pipelines, and other equipment associated with the well. In	701
addition, the owner shall maintain the well, other equipment	702
associated with the well, and the surface location of the well in	703
a manner that prevents hazards to the health and safety of people	704
and the environment. The owner shall inspect the well at least	705
every six months and submit to the chief within fourteen days	706
after the inspection a record of inspection on a form prescribed	707
and provided by the chief.	708

(D) Not later than thirty days prior to the expiration of	709
temporary inactive well status or a renewal of temporary inactive	710
well status approved by the chief for a well, the owner of the	711
well may submit to the chief an application for renewal of the	712
temporary inactive well status on a form prescribed and provided	713
by the chief. The application shall include a detailed plan that	714
describes the ultimate disposition of the well, the time frames	715
for that disposition, and any other information that the chief	716
determines is necessary. The chief shall either deny an	717
application by order or approve the application. If the chief	718
approves the application, the chief shall notify the owner of the	719
well of the chief's approval.	720

(E) An application for temporary inactive well status shall	721
be accompanied by a nonrefundable fee of one hundred dollars. An	722
application for a renewal of temporary inactive well status shall	723
be accompanied by a nonrefundable fee of two hundred fifty dollars	724
for the first renewal and five hundred dollars for each subsequent	725
renewal.	726

(F) After a third renewal, the chief may require an owner to	727
provide a surety bond in an amount not to exceed ten thousand	728
dollars for each of the owner's wells that has been approved by	729
the chief for temporary inactive well status.	730

(G) Temporary inactive well status approved by the chief	731
expires one year after the date of approval of the application for	732
temporary inactive well status or production from the well	733
commences, whichever occurs sooner. In addition, a renewal of a	734
temporary inactive well status expires one year after the	735
expiration date of the initial temporary inactive well status or	736
one year after the expiration date of the previous renewal of the	737
temporary inactive well status, as applicable, or production from	738
the well commences, whichever occurs sooner.	739

(H) The owner of a well that has been approved by the chief	740
for temporary inactive well status may commence production from	741
the well at any time. Not later than sixty days after the	742
commencement of production from such a well, the owner shall	743
notify the chief of the commencement of production.	744

(I) This chapter and rules adopted under it, any terms and	745
conditions of the permit for a well, and applicable orders issued	746
by the chief apply to a well that has been approved by the chief	747
for temporary inactive well status or renewal of that status.	748

Sec. 1509.07.  An owner of any well, except an exempt	749
Mississippian well or an exempt domestic well, shall obtain	750
liability insurance coverage from a company authorized to do	751
business in this state in an amount of not less than three hundred	752
thousandone million dollars bodily injury coverage and three	753
hundred thousand dollars property damage coverage to pay damages	754
for injury to persons or damage to property caused by the	755
drilling, operation, or plugging of all the owner's wells in this	756
state. However, if any well is located within an urbanized area,	757
the owner shall obtain liability insurance coverage in an amount	758
of not less than three million dollars for bodily injury coverage	759
and property damage coverage to pay damages for injury to persons	760
or damage to property caused by the drilling, operation, or	761
plugging of all of the owner's wells in this state. The owner	762
shall maintain thatthe coverage until all the owner's wells are	763
plugged and abandoned as required by lawor are transferred to an	764
owner who has obtained insurance as required under this section	765
and who is not under a notice of material and substantial	766
violation or under a suspension order. The owner shall provide	767
proof of liability insurance coverage to the chief of the division	768
of mineral resources management upon request. Upon failure of the	769
owner to provide that proof when requested, the chief may order	770
the suspension of any outstanding permits and operations of the	771
owner until the owner provides proof of the required insurance	772
coverage.	773

Except as otherwise provided in this section, an owner of any	774
well, before being issued a permit under section 1509.06 of the	775
Revised Code or before operating or producing from a well, shall	776
execute and file with the division of mineral resources management	777
a surety bond conditioned on compliance with the restoration	778
requirements of section 1509.072, the plugging requirements of	779
section 1509.12, the permit provisions of section 1509.13 of the	780
Revised Code, and all rules and orders of the chief relating	781
thereto, in an amount set by rule of the chief.	782

The owner may deposit with the chief, instead of a surety	783
bond, cash in an amount equal to the surety bond as prescribed	784
pursuant to this section or negotiable certificates of deposit or	785
irrevocable letters of credit, issued by any bank organized or	786
transacting business in this state or by any savings and loan	787
association as defined in section 1151.01 of the Revised Code,	788
having a cash value equal to or greater than the amount of the	789
surety bond as prescribed pursuant to this section. Cash or	790
certificates of deposit shall be deposited upon the same terms as	791
those upon which surety bonds may be deposited. If certificates of	792
deposit are deposited with the chief instead of a surety bond, the	793
chief shall require the bank or savings and loan association that	794
issued any such certificate to pledge securities of a cash value	795
equal to the amount of the certificate that is in excess of the	796
amount insured by any of the agencies and instrumentalities	797
created under the "Federal Deposit Insurance Act," 64 Stat. 873	798
(1950), 12 U.S.C. 1811, as amended, and regulations adopted under	799
it, including at least the federal deposit insurance corporation,	800
bank insurance fund, and savings association insurance fund. The	801
securities shall be security for the repayment of the certificate	802
of deposit.	803

Immediately upon a deposit of cash, certificates of deposit,	804
or letters of credit with the chief, the chief shall deliver them	805
to the treasurer of state who shall hold them in trust for the	806
purposes for which they have been deposited.	807

Instead of a surety bond, the chief may accept proof of	808
financial responsibility consisting of a sworn financial statement	809
showing a net financial worth within this state equal to twice the	810
amount of the bond for which it substitutes and, as may be	811
required by the chief, a list of producing properties of the owner	812
within this state or other evidence showing ability and intent to	813
comply with the law and rules concerning restoration and plugging	814
that may be required by rule of the chief. The owner of an exempt	815
domestic or exempt Mississippian well is not required to file	816
scheduled updates of the financial documents, but shall file	817
updates of those documents if requested to do so by the chief. The	818
owner of a nonexempt domestic or nonexempt Mississippian well	819
shall file updates of the financial documents in accordance with a	820
schedule established by rule of the chief. The chief, upon	821
determining that an owner for whom the chief has accepted proof of	822
financial responsibility instead of bond cannot demonstrate	823
financial responsibility, shall order that the owner execute and	824
file a bond or deposit cash, certificates of deposit, or	825
irrevocable letters of credit as required by this section for the	826
wells specified in the order within ten days of receipt of the	827
order. If the order is not complied with, all wells of the owner	828
that are specified in the order and for which no bond is filed or	829
cash, certificates of deposit, or letters of credit are deposited	830
shall be plugged. No owner shall fail or refuse to plug such a	831
well. Each day on which such a well remains unplugged thereafter	832
constitutes a separate offense.	833

The surety bond provided for in this section shall be	834
executed by a surety company authorized to do business in this	835
state.	836

The chief shall not approve any bond until it is personally	837
signed and acknowledged by both principal and surety, or as to	838
either by the principal's or surety's attorney in fact, with a	839
certified copy of the power of attorney attached thereto. The	840
chief shall not approve a bond unless there is attached a	841
certificate of the superintendent of insurance that the company is	842
authorized to transact a fidelity and surety business in this	843
state.	844

All bonds shall be given in a form to be prescribed by the	845
chief and shall run to the state as obligee.	846

An owner of an exempt Mississippian well or an exempt	847
domestic well, in lieu of filing a surety bond, cash in an amount	848
equal to the surety bond, certificates of deposit, irrevocable	849
letters of credit, or a sworn financial statement, may file a	850
one-time fee of fifty dollars, which shall be deposited in the oil	851
and gas well plugging fund created in section 1509.071 of the	852
Revised Code.	853

An owner, operator, producer, or other person shall not	854
operate a well or produce from a well at any time if the owner,	855
operator, producer, or other person has not satisfied the	856
requirements established in this section.	857

Sec. 1509.071.  (A) When the chief of the division of mineral	858
resources management finds that an owner has failed to comply with	859
the restoration requirements of section 1509.072, plugging	860
requirements of section 1509.12, or permit provisions of section	861
1509.13 of the Revised Code, or rules and orders relating thereto,	862
the chief shall make a finding of that fact and declare any surety	863
bond filed to ensure compliance with those sections and rules	864
forfeited in the amount set by rule of the chief. The chief	865
thereupon shall certify the total forfeiture to the attorney	866
general, who shall proceed to collect the amount of the	867
forfeiture. In addition, the chief may require an owner, operator,	868
producer, or other person who forfeited a surety bond to post a	869
new surety bond in the amount of fifteen thousand dollars for a	870
single well, thirty thousand dollars for two wells, or fifty	871
thousand dollars for three or more wells.	872

In lieu of total forfeiture, the surety or owner, at itsthe	873
surety's or owner's option, may cause the well to be properly	874
plugged and abandoned and the area properly restored or pay to the	875
treasurer of state the cost of plugging and abandonment.	876

(B) All moneys collected because of forfeitures of bonds as	877
provided in this section shall be deposited in the state treasury	878
to the credit of the oil and gas well fund created in section	879
1509.02 of the Revised Code. The fund	880

The chief annually shall be expended by the chiefspend not	881
less than fourteen per cent of the revenue credited to the fund	882
during the previous fiscal year for the following purposes in	883
addition to the other purposes specified in that section:	884

(1) In accordance with division (D) of this section, to plug	885
idle and orphaned wells or to restore the land surface properly as	886
required in section 1509.072 of the Revised Code for which the	887
bonds have been forfeited, for abandoned wells for which no funds	888
are available to plug the wells in accordance with this chapter,	889
or to use abandoned wells for the injection of oil or gas	890
production wastes;	891

(2) In accordance with division (E) of this section, to	892
correct conditions that the chief reasonably has determined are	893
causing imminent health or safety risks at an idle and orphaned	894
well or a well for which the owner cannot be contacted in order to	895
initiate a corrective action within a reasonable period of time as	896
determined by the chief.	897

Expenditures from the fund shall be made only for lawful	898
purposes. In addition, expenditures from the fund shall not be	899
made to purchase real property or to remove a dwelling in order to	900
access a well.	901

(C)(1) Upon determining that the owner of a well has failed	902
to properly plug and abandon it or to properly restore the land	903
surface at the well site in compliance with the applicable	904
requirements of this chapter and applicable rules adopted and	905
orders issued under it or that a well is an abandoned well for	906
which no funds are available to plug the well in accordance with	907
this chapter, the chief shall do all of the following:	908

(a) Determine from the records in the office of the county	909
recorder of the county in which the well is located the identity	910
of the owner of the land on which the well is located, the	911
identity of the owner of the oil or gas lease under which the well	912
was drilled or the identity of each person owning an interest in	913
the lease, and the identities of the persons having legal title	914
to, or a lien upon, any of the equipment appurtenant to the well;	915

(b) Mail notice to the owner of the land on which the well is	916
located informing the landowner that the well is to be plugged. If	917
the owner of the oil or gas lease under which the well was drilled	918
is different from the owner of the well or if any persons other	919
than the owner of the well own interests in the lease, the chief	920
also shall mail notice that the well is to be plugged to the owner	921
of the lease or to each person owning an interest in the lease, as	922
appropriate.	923

(c) Mail notice to each person having legal title to, or a	924
lien upon, any equipment appurtenant to the well, informing the	925
person that the well is to be plugged and offering the person the	926
opportunity to plug the well and restore the land surface at the	927
well site at the person's own expense in order to avoid forfeiture	928
of the equipment to this state.	929

(2) If none of the persons described in division (C)(1)(c) of	930
this section plugs the well within sixty days after the mailing of	931
the notice required by that division, all equipment appurtenant to	932
the well is hereby declared to be forfeited to this state without	933
compensation and without the necessity for any action by the state	934
for use to defray the cost of plugging and abandoning the well and	935
restoring the land surface at the well site.	936

(D) Expenditures from the fund for the purpose of division	937
(B)(1) of this section shall be made in accordance with either of	938
the following:	939

(1) The expenditures may be made pursuant to contracts	940
entered into by the chief with persons who agree to furnish all of	941
the materials, equipment, work, and labor as specified and	942
provided in such a contract for activities associated with the	943
restoration or plugging of a well as determined by the chief. The	944
activities may include excavation to uncover a well, geophysical	945
methods to locate a buried well when clear evidence of leakage	946
from the well exists, cleanout of wellbores to remove material	947
from a failed plugging of a well, plugging operations,	948
installation of vault and vent systems, including associated	949
engineering certifications and permits, restoration of property,	950
and repair of damage to property that is caused by such	951
activities. Expenditures shall not be used for salaries,	952
maintenance, equipment, or other administrative purposes, except	953
for costs directly attributed to the plugging of an idle and	954
orphaned well. Agents or employees of persons contracting with the	955
chief for thea restoration,or plugging, and injection projects	956
project may enter upon any land, public or private, on which the	957
well is located for the purpose of performing the work. Prior to	958
such entry, the chief shall give to the following persons written	959
notice of the existence of a contract for a project to restore,or	960
plug, or inject oil or gas production wastes into a well, the	961
names of the persons with whom the contract is made, and the date	962
that the project will commence: the owner of the well, the owner	963
of the land upon which the well is located, the owner or agents of	964
adjoining land, and, if the well is located in the same township	965
as or in a township adjacent to the excavations and workings of a	966
mine and the owner or lessee of that mine has provided written	967
notice identifying those townships to the chief at any time during	968
the immediately preceding three years, the owner or lessee of the	969
mine.	970

(2)(a) The owner of the land on which a well is located who	971
has received notice under division (C)(1)(b) of this section may	972
plug the well and be reimbursed by the division for the reasonable	973
cost of plugging the well. In order to plug the well, the	974
landowner shall submit an application to the chief on a form	975
prescribed by the chief and approved by the technical advisory	976
council on oil and gas created in section 1509.38 of the Revised	977
Code. The application, at a minimum, shall require the landowner	978
to provide the same information as is required to be included in	979
the application for a permit to plug and abandon under section	980
1509.13 of the Revised Code. The application shall be accompanied	981
by a copy of a proposed contract to plug the well prepared by a	982
contractor regularly engaged in the business of plugging oil and	983
gas wells. The proposed contract shall require the contractor to	984
furnish all of the materials, equipment, work, and labor necessary	985
to plug the well properly and shall specify the price for doing	986
the work, including a credit for the equipment appurtenant to the	987
well that was forfeited to the state through the operation of	988
division (C)(2) of this section. Expenditures under division	989
(D)(2)(a) of this section shall be consistent with the	990
expenditures for activities described in division (D)(1) of this	991
section. The application also shall be accompanied by the permit	992
fee required by section 1509.13 of the Revised Code unless the	993
chief, in the chief's discretion, waives payment of the permit	994
fee. The application constitutes an application for a permit to	995
plug and abandon the well for the purposes of section 1509.13 of	996
the Revised Code.	997

(b) Within thirty days after receiving an application and	998
accompanying proposed contract under division (D)(2)(a) of this	999
section, the chief shall determine whether the plugging would	1000
comply with the applicable requirements of this chapter and	1001
applicable rules adopted and orders issued under it and whether	1002
the cost of the plugging under the proposed contract is	1003
reasonable. If the chief determines that the proposed plugging	1004
would comply with those requirements and that the proposed cost of	1005
the plugging is reasonable, the chief shall notify the landowner	1006
of that determination and issue to the landowner a permit to plug	1007
and abandon the well under section 1509.13 of the Revised Code.	1008
Upon approval of the application and proposed contract, the chief	1009
shall transfer ownership of the equipment appurtenant to the well	1010
to the landowner. The chief may disapprove an application	1011
submitted under division (D)(2)(a) of this section if the chief	1012
determines that the proposed plugging would not comply with the	1013
applicable requirements of this chapter and applicable rules	1014
adopted and orders issued under it, that the cost of the plugging	1015
under the proposed contract is unreasonable, or that the proposed	1016
contract is not a bona fide, arms length contract.	1017

(c) After receiving the chief's notice of the approval of the	1018
application and permit to plug and abandon a well under division	1019
(D)(2)(b) of this section, the landowner shall enter into the	1020
proposed contract to plug the well. The plugging shall be	1021
completed within one hundred eight days after the landowner	1022
receives the notice of approval and permit.	1023

(d) Upon determining that the plugging has been completed	1024
within the time required by division (D)(2)(c) of this section and	1025
has been completed in compliance with the applicable requirements	1026
of this chapter and applicable rules adopted and orders issued	1027
under it, the chief shall reimburse the landowner for the cost of	1028
the plugging as set forth in the proposed contract approved by the	1029
chief. The reimbursement shall be paid from the oil and gas well	1030
fund. If the chief determines that the plugging was not completed	1031
within the required time or was not completed in accordance with	1032
the applicable requirements, the chief shall not reimburse the	1033
landowner for the cost of the plugging, and the landowner or the	1034
contractor, as applicable, promptly shall transfer back to this	1035
state title to and possession of the equipment appurtenant to the	1036
well that previously was transferred to the landowner under	1037
division (D)(2)(b) of this section. If any such equipment was	1038
removed from the well during the plugging and sold, the landowner	1039
shall pay to the chief the proceeds from the sale of the	1040
equipment, and the chief promptly shall pay the moneys so received	1041
to the treasurer of state for deposit into the oil and gas well	1042
fund.	1043

The chief may establish an annual limit on the number of	1044
wells that may be plugged under division (D)(2) of this section or	1045
an annual limit on the expenditures to be made under that	1046
division.	1047

As used in division (D)(2) of this section, "plug" and	1048
"plugging" include the plugging of the well and the restoration of	1049
the land surface disturbed by the plugging.	1050

(E) Expenditures from the oil and gas well fund for the	1051
purpose of division (B)(2) of this section may be made pursuant to	1052
contracts entered into by the chief with persons who agree to	1053
furnish all of the materials, equipment, work, and labor as	1054
specified and provided in such a contract. The competitive bidding	1055
requirements of Chapter 153. of the Revised Code do not apply if	1056
the chief reasonably determines that correction of the applicable	1057
health or safety risk requires immediate action. The chief,	1058
designated representatives of the chief, and agents or employees	1059
of persons contracting with the chief under this division may	1060
enter upon any land, public or private, for the purpose of	1061
performing the work.	1062

(F) Contracts entered into by the chief under this section	1063
are not subject to either of the following:	1064

(1) Chapter 4115. of the Revised Code;

1065

(2) Section 153.54 of the Revised Code, except that the	1066
contractor shall obtain and provide to the chief as a bid guaranty	1067
a surety bond or letter of credit in an amount equal to ten per	1068
cent of the amount of the contract.	1069

(G) The owner of land on which a well is located who has	1070
received notice under division (C)(1)(b) of this section, in lieu	1071
of plugging the well in accordance with division (D)(2) of this	1072
section, may cause ownership of the well to be transferred to an	1073
owner who is lawfully doing business in this state and who has met	1074
the financial responsibility requirements established under	1075
section 1509.07 of the Revised Code, subject to the approval of	1076
the chief. The transfer of ownership also shall be subject to the	1077
landowner's filing the appropriate forms required under this	1078
chaptersection 1509.31 of the Revised Code and providing to the	1079
chief sufficient information to demonstrate the landowner's or	1080
owner's right to produce a formation or formations. That	1081
information may include a deed, a lease, or other documentation of	1082
ownership or property rights.	1083

The chief shall approve or disapprove the transfer of	1084
ownership of the well. If the chief approves the transfer, the	1085
owner is responsible for operating the well in accordance with	1086
this chapter and rules adopted under it, including, without	1087
limitation, all of the following:	1088

(1) Filing an application with the chief under section	1089
1509.06 of the Revised Code if the owner intends to drill deeper	1090
or produce a formation that is not listed in the records of the	1091
division for that well;	1092

(2) Taking title to and possession of the equipment	1093
appurtenant to the well that has been identified by the chief as	1094
having been abandoned by the former owner;	1095

(3) Complying with all applicable requirements that are	1096
necessary to drill deeper, plug the well, or plug back the well.	1097

(H) The chief shall issue an order that requires the owner of	1098
a well to pay the actual documented costs of a corrective action	1099
that is described in division (B)(2) of this section concerning	1100
the well. The chief shall transmit the money so recovered to the	1101
treasurer of state who shall deposit the money in the state	1102
treasury to the credit of the oil and gas well fund.	1103

Sec. 1509.072.  No oil or gas well owner or agent of an oil	1104
or gas well owner shall fail to restore the land surface within	1105
the area disturbed in siting, drilling, completing, and producing	1106
the well as required in this section.	1107

(A) Within five monthsfourteen days after the date upon	1108
which the surface drilling of a well is commencedcompleted to	1109
total depth in an urbanized area and within two months after the	1110
date upon which the drilling of a well is completed in all other	1111
areas, the owner or the owner's agent, in accordance with the	1112
restoration plan filed under division (A)(10) of section 1509.06	1113
of the Revised Code, shall fill all the pits for containing brine,	1114
and other waste substances resulting, obtained, or produced in	1115
connection with exploration or drilling for, or production of, oil	1116
or gas, or oil that are not required by other state or federal law	1117
or regulation, and remove all concrete bases, drilling supplies,	1118
and drilling equipment. Within nineUnless the chief of the	1119
division of mineral resources management approves a longer time	1120
period, within three months after the date upon which the surface	1121
drilling of a well is commenced in an urbanized area and within	1122
six months after the date upon which the surface drilling of a	1123
well is commenced in all other areas, the owner or the owner's	1124
agent shall grade or terrace and plant, seed, or sod the area	1125
disturbed that is not required in production of the well where	1126
necessary to bind the soil and prevent substantial erosion and	1127
sedimentation. If the chief of the division of mineral resources	1128
management finds that a pit used for containing brine, other waste	1129
substances, or oil is in violation of section 1509.22 of the	1130
Revised Code or rules adopted or orders issued under it, the chief	1131
may require the pit to be emptied and closed before expiration of	1132
the five-monthfourteen-day or three-month restoration period.	1133

(B) Within three months after a well that has produced oil or	1134
gas is plugged in an urbanized area and within six months after a	1135
well that has produced oil or gas is plugged in all other areas,	1136
or after the plugging of a dry hole, unless the chief approves a	1137
longer time period, the owner or the owner's agent shall remove	1138
all production and storage structures, supplies, and equipment,	1139
and any oil, salt water, and debris, and fill any remaining	1140
excavations. Within that period the owner or the owner's agent	1141
shall grade or terrace and plant, seed, or sod the area disturbed	1142
where necessary to bind the soil and prevent substantial erosion	1143
and sedimentation.	1144

The owner shall be released from responsibility to perform	1145
any or all restoration requirements of this section on any part or	1146
all of the area disturbed upon the filing of a request for a	1147
waiver with and obtaining the written approval of the chief, which	1148
request shall be signed by the surface owner to certify the	1149
approval of the surface owner of the release sought. The chief	1150
shall approve the request unless the chief finds upon inspection	1151
that the waiver would be likely to result in substantial damage to	1152
adjoining property, substantial contamination of surface or	1153
underground water, or substantial erosion or sedimentation.	1154

The chief, by order, may shorten the time periods provided	1155
for under division (A) or (B) of this section if failure to	1156
shorten the periods would be likely to result in damage to public	1157
health or the waters or natural resources of the state.	1158

The chief, upon written application by an owner or an owner's	1159
agent showing reasonable cause, may extend the period within which	1160
restoration shall be completed under divisions (A) and (B) of this	1161
section, but not to exceed a further six-month period, except	1162
under extraordinarily adverse weather conditions or when essential	1163
equipment, fuel, or labor is unavailable to the owner or the	1164
owner's agent.	1165

If the chief refuses to approve a request for waiver or	1166
extension, the chief shall do so by order.	1167

Sec. 1509.073.  A person that is issued a permit under this	1168
chapter to drill a new well or drill an existing well deeper in an	1169
urbanized area shall establish fluid drilling conditions prior to	1170
penetration of the Onondaga limestone and continue to use fluid	1171
drilling until total depth of the well is achieved unless the	1172
chief of the division of mineral resources management authorizes	1173
such drilling without using fluid.	1174

Sec. 1509.10. (A) Any person drilling within the state	1175
shall, within thirtysixty days after the completion of the well	1176
drilling operations to the proposed total depth or after a	1177
determination that a well is a dry or lost hole, file with the	1178
division of mineral resources management all wireline electric	1179
logs and an accurate log designatingwell completion record on a	1180
form that is approved by the chief of the division of mineral	1181
resources management that designates:	1182

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

1183

(B)(2) The character, depth, and thickness of geological	1184
formationsunits encountered, including fresh water, coal seams,	1185
mineral beds, associated fluids such as fresh water, brine, and	1186
crude oil and, natural gas bearing formations, and sour gas, if	1187
such seams, beds, or fluids are known;	1188

(C)(3) The dates on which drilling operations were commenced	1189
and completed;	1190

(4) The types of drilling tools used and the name of the	1191
person that drilled the well;	1192

(5) The length in feet of the various sizes of casing and	1193
tubing used in drilling the well, the amount removed after	1194
completion, the type and setting depth of each packer, and all	1195
other data relating to muddingcementing in the annular space	1196
behind such casing or tubing, and data indicating completion as a	1197
dry, gas, oil, combination oil and gas, brine injection, or	1198
artificial brine well or a stratigraphic test;	1199

(D)(6) The number of perforations in the casing and the	1200
intervals of the perforations;	1201

(7) The elevation above mean sea level of the point from	1202
which the depth measurements were made, stating also the height of	1203
the point above ground level at the well, the total depth of the	1204
well, and the deepest geological unit that was penetrated in the	1205
drilling of the well;	1206

(8) If applicable, the type, volume, and concentration of	1207
acid, and the date on which acid was used in acidizing the well;	1208

(9) If applicable, the type and volume of fluid used to	1209
stimulate the reservoir of the well, the reservoir breakdown	1210
pressure, the method used for the containment of fluids recovered	1211
from the fracturing of the well, the methods used for the	1212
containment of fluids when pulled from the wellbore from swabbing	1213
the well, the average pumping rate of the well, and the name of	1214
the person that performed the well stimulation. In addition, the	1215
owner shall include a copy of the log from the stimulation of the	1216
well, a copy of the invoice for each of the procedures and methods	1217
described in division (A)(9) of this section that were used on a	1218
well, and a copy of the pumping pressure and rate graphs. However,	1219
the owner may redact from the copy of each invoice that is	1220
required to be included under division (A)(9) of this section the	1221
costs of and charges for the procedures and methods described in	1222
division (A)(9) of this section that were used on a well.	1223

(10) The name of the company that performed the logging of	1224
the well and the types of wireline electric logs performed on the	1225
well.	1226

The logwell completion record shall be submitted in	1227
duplicate. The first copy shall be retained as a permanent record	1228
in the files of the division, and the second copy shall be	1229
transmitted by the chief of the division of mineral resources	1230
management to the division of geological survey.	1231

Any(B)(1) Not later than sixty days after the completion of	1232
the drilling operations to the proposed total depth, the owner	1233
shall file all wireline electric log, or radioactivity log, or	1234
other geophysical log, if made in connection with the well shall	1235
be filedlogs with the division of mineral resources management	1236
and the chief shall transmit such logs electronically, if	1237
available, to the division of geological survey. Such logs may be	1238
retained by the owner for a period of not more than six months, or	1239
such additional time as may be granted by the chief in writing,	1240
after the completion of the well substantially to the depth shown	1241
in the application required by section 1509.06 of the Revised	1242
Code.	1243

(2) If a well is not completed within sixty days after the	1244
completion of drilling operations, the owner shall file with the	1245
division a supplemental well completion record that includes all	1246
of the information required under this section within sixty days	1247
after the completion of the well.	1248

(C) Upon request in writing by the chief of the division of	1249
geological survey prior to the beginning of drilling of the well,	1250
the person drilling the well shall make available a complete set	1251
of cuttings accurately identified as to depth.	1252

(D) The form of the logwell completion record required by	1253
this section shall be one that has been approved by the chief of	1254
the division of mineral resources management and the chief of the	1255
division of geological survey. The filing of a log as required by	1256
this section fulfills the requirement of filing a log with the	1257
chief of the division of geological survey in section 1505.04 of	1258
the Revised Code.	1259

Sec. 1509.11.  The owner of any well producing or capable of	1260
producing oil or gas shall file with the chief of the division of	1261
mineral resources management, on or before the firstthirty-first	1262
day of March, a statement of production of oil, gas, and brine for	1263
the last preceding calendar year in such form as the chief may	1264
prescribe. An owner that has more than one hundred wells in this	1265
state shall submit electronically the statement of production in a	1266
format that is approved by the chief. The chief shall include on	1267
the form, at the minimum, a request for the submittal of the	1268
information that a person who is regulated under this chapter is	1269
required to submit under the "Emergency Planning and Community	1270
Right-To-Know Act of 1986," 100 Stat. 1728, 42 U.S.C.A. 11001, and	1271
regulations adopted under it, and that the division does not	1272
obtain through other reporting mechanisms.	1273

Sec. 1509.12.  No owner of any well knowingly shall construct	1274
a well, or permit defective casing or tubing in sucha well to	1275
leak fluids or gasgases, that may cause damage to other permeable	1276
strata, underground sources of drinking water, or the surface of	1277
the land or that threatens the public health and safety. Upon	1278
notice fromthe discovery that the casing or tubing in a well is	1279
defective or that a well was not adequately constructed, the owner	1280
of the well shall notify the chief of the division of mineral	1281
resources management within twenty-four hours of the discovery,	1282
suchand the owner shall immediately repair suchthe tubing or	1283
casing, correct the construction inadequacies, or plug and abandon	1284
suchthe well.	1285

Unless written permission is granted by the chief, any well	1286
that is or becomes incapable of producing oil or gas in commercial	1287
quantities shall be plugged, but no well shall be required to be	1288
plugged under this section that is being used to produce oil or	1289
gas for domestic purposes, or that is being lawfully used for a	1290
purpose other than production of oil or gas. When the chief finds	1291
that a well should be plugged, the chief shall notify the owner to	1292
that effect by order in writing and shall specify in suchthe	1293
order a reasonable time within which to comply. No owner shall	1294
fail or refuse to plug a well within the time specified in the	1295
order. Each day on which such a well remains unplugged thereafter	1296
constitutes a separate offense.	1297

Where the plugging method prescribed by rules adopted	1298
pursuant to section 1509.15 of the Revised Code cannot be applied	1299
or if applied would be ineffective in carrying out the protection	1300
that the law is meant to give, the chief, by order, may designate	1301
a different method of plugging. The abandonment report shall show	1302
the manner in which the well was plugged.	1303

In case of oil or gas wells abandoned prior to September 1,	1304
19511978, the board of county commissioners of the county in	1305
which suchthe wells are located may submit to the electors of the	1306
county the question of establishing a special fund, by special	1307
general levy, by general bond issue, or out of current funds,	1308
which shall be approved by a majority of the electors voting upon	1309
suchthat question for the purpose of plugging suchthe wells. The	1310
fund shall be administered by the board and the plugging of oil	1311
and gas wells shall be under the supervision of the chief, and the	1312
board shall let contracts for suchthat purpose, provided that	1313
suchthe fund shall not be used for the purpose of plugging oil	1314
and gas wells that were abandoned subsequent to September 1, 1951	1315
1978.	1316

Sec. 1509.13. (A) No person shall plug and abandon a well	1317
without having a permit to do so issued by the chief of the	1318
division of mineral resources management. The permit shall be	1319
issued by the chief in accordance with this chapter, and the chief	1320
may establish by ruleshall be valid for a period of time	1321
twenty-four months from the date of issue during which permits	1322
will be valid. Application by the owner for a permit to plug and	1323
abandon shall be filed as many days in advance as will be	1324
necessary for a mineral resources inspector or, if the well is	1325
located in a coal bearing township, both a deputy mine inspector	1326
and a mineral resources inspector to be present at the plugging.	1327
The application shall be filed with the chief upon a form that the	1328
chief prescribes and shall contain the following information:	1329

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

1330

(B)(2) The signature of the owner or the owner's authorized	1331
agent. When an authorized agent signs an application, it shall be	1332
accompanied by a certified copy of the appointment as that agent.	1333

(C)(3) The location of the well identified by section or lot	1334
number, city, village, township, and county;	1335

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

1336

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

1337

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

1338

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

1339

If oil or gas has been produced from the well, the	1340
application shall be accompanied by a fee of two hundred fifty	1341
dollars. If a new dry well has been drilled in accordance with law	1342
and the permit is still valid, the permit holder may receive	1343
approval to plug the well from a mineral resources inspector or,	1344
if the well is located in a coal bearing township, both a deputy	1345
mine inspector and a mineral resources inspector so that the well	1346
can be plugged and abandoned without undue delay. Unless waived by	1347
a mineral resources inspector, the owner of a well or the owner's	1348
authorized representative shall notify a mineral resources	1349
inspector at least twenty-four hours prior to the commencement of	1350
the plugging of a well. No well shall be plugged and abandoned	1351
without a mineral resources inspector present unless permission	1352
has been granted by the chief. The owner of thea well that has	1353
produced oil or gas shall give written notice at the same time to	1354
the owner of the land upon which the well is located, the owners	1355
or agents of adjoining land, adjoining well owners or agents, and,	1356
ifand to all lessors that receive gas from the well pursuant to a	1357
lease agreement. If the well penetrates or passes within one	1358
hundred feet of the excavations and workings of a mine, the owner	1359
of the well shall give written notice to the owner or lessee of	1360
that mine, of the well owner's intention to abandon the well and	1361
of the time when the well owner will be prepared to commence	1362
plugging it.	1363

(B) An applicant may file a request with the chief for	1364
expedited review of an application for a permit to plug and	1365
abandon a well. The chief may refuse to accept a request for	1366
expedited review if, in the chief's judgment, acceptance of the	1367
request will prevent the issuance, within twenty-one days of	1368
filing, of permits for which applications filed under section	1369
1509.06 of the Revised Code are pending. In addition to a complete	1370
application for a permit that meets the requirements of this	1371
section and the permit fee prescribed by this section, if	1372
applicable, a request shall be accompanied by a nonrefundable	1373
filing fee of twofive hundred fifty dollars unless the chief has	1374
ordered the applicant to plug and abandon the well. When a request	1375
for expedited review is filed, the chief shall immediately begin	1376
to process the application and shall issue a permit within seven	1377
days of the filing of the request unless the chief, by order,	1378
denies the application.	1379

(C) This section does not apply to a well plugged or	1380
abandoned in compliance with section 1571.05 of the Revised Code.	1381

Sec. 1509.14.  Any person who abandons a well, when written	1382
permission has been granted by the chief of the division of	1383
mineral resources management to abandon and plug the well without	1384
an inspector being present to supervise the plugging, shall make a	1385
written report of the abandonment to the chief. The report shall	1386
be submitted not later than thirty days after the date of	1387
abandonment and shall include all of the following:	1388

(A) The date of abandonment;

1389

(B) The name of the owner or operator of the well at the time	1390
of abandonment and the post-office address of the owner or	1391
operator;	1392

(C) The location of the well as to township and county and	1393
the name of the owner of the surface upon which the well is	1394
drilled, with the address thereof;	1395

(D) The date of the permit to drill;

1396

(E) The date when drilled;

1397

(F) The depth of the well;

1398

(G) The depth of the top of the formation to which the well	1399
was drilled;	1400

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

1401

(I) A detailed report as to how the well was plugged, giving	1402
in particular the manner in which the coal and various formations	1403
were plugged, and the date of the plugging of the well, including	1404
the names of those who witnessed the plugging of the well.	1405

The report shall be signed by the owner or operator, or the	1406
agent of the owner or operator, who abandons and plugs the well	1407
and verified by the oath of the party so signing. For the purposes	1408
of this section, the mineral resources inspectors may take	1409
acknowledgments and administer oaths to the parties signing the	1410
report.	1411

Sec. 1509.17. Any person who drills a well shall, before	1412
drilling into the principal or major producing formation therein,	1413
encase such well with good and sufficient wrought iron or steel	1414
casing so as to exclude all surface, fresh, or salt water from any	1415
part of such well penetrating the oil or gas bearing sand or rock	1416
or fresh water strata. The method of placing such casing shall be	1417
approved by the chief of the division of mineral resources	1418
management and shall be in accord with the most approved method	1419
used in the operation of such type of well. The chief may, in lieu	1420
of the casing method outlined in this section, accept adequate	1421
mudding methods with prepared clay in the annular space behind	1422
such casing in sufficient quantities to shut off all gas or oil	1423
and that will exclude all surface, fresh, or salt water from any	1424
part of such well penetrating the oil, gas, or mineral bearing	1425
formation, or fresh water strata.	1426

Written approval from the chief is required in each case. In	1427
the operation of a gas well, it is permissible, with the written	1428
consent of the chief, to withdraw all casing in such well, leaving	1429
only the tubing and the packer therein, provided that such well is	1430
filled with prepared clay from the top of such packer to the	1431
surface, as each succeeding string of casing in such well is	1432
withdrawn.	1433

(A) A well shall be constructed in a manner that is approved	1434
by the chief of the division of mineral resources management as	1435
specified in the permit using materials that comply with industry	1436
standards for the type and depth of the well and the anticipated	1437
fluid pressures that are associated with the well. In addition, a	1438
well shall be constructed using sufficient steel or conductor	1439
casing in a manner that supports unconsolidated sediments, that	1440
protects and isolates all underground sources of drinking water as	1441
defined by the Safe Drinking Water Act, and that provides a base	1442
for a blowout preventer or other well control equipment that is	1443
necessary to control formation pressures and fluids during the	1444
drilling of the well and other operations to complete the well.	1445
Using steel production casing with sufficient cement, an oil and	1446
gas reservoir shall be isolated during well stimulation and during	1447
the productive life of the well. In addition, sour gas zones and	1448
gas bearing zones that have sufficient pressure and volume to	1449
over-pressurize the surface production casing annulus resulting in	1450
annular overpressurization shall be isolated using approved	1451
cementing, casing, and well construction practices. However,	1452
isolating an oil and gas reservoir shall not exclude open-hole	1453
completion. A well shall not be perforated for purposes of well	1454
stimulation in any zone that is located around casing that	1455
protects underground sources of drinking water without written	1456
authorization from the chief in accordance with division (D) of	1457
this section. When the well penetrates the excavations of a mine,	1458
the casing shall remain intact as provided in section 1509.18 of	1459
the Revised Code and be plugged and abandoned in accordance with	1460
section 1509.15 of the Revised Code.	1461

(B) The chief may adopt rules in accordance with Chapter 119.	1462
of the Revised Code that are consistent with division (A) of this	1463
section and that establish standards for constructing a well, for	1464
evaluating the quality of well construction materials, and for	1465
completing remedial cementing. In addition, the standards	1466
established in the rules shall consider local geology and various	1467
drilling conditions and shall require the use of reasonable	1468
methods that are based on sound engineering principles.	1469

(C) An owner or an owner's authorized representative shall	1470
notify a mineral resources inspector each time that the owner or	1471
the authorized representative notifies a person to perform the	1472
cementing of the conductor casing, the surface casing, or the	1473
production casing. In addition, not later than sixty days after	1474
the completion of the cementing of the production casing, an owner	1475
shall submit to the chief a copy of the cement tickets for each	1476
cemented string of casing and a copy of all logs that were used to	1477
evaluate the quality of the cementing.	1478

(D) The chief shall grant an exemption from this section and	1479
rules adopted under it for a well if the chief determines that a	1480
cement bond log confirms zonal isolation and there is a minimum of	1481
five hundred feet between the uppermost perforation of the casing	1482
and the lowest depth of an underground source of drinking water.	1483

Sec. 1509.18.  Any person who drills a well within the limits	1484
of a mining operation shall give consideration for the safety of	1485
the personnel working in suchthe mine, and, if possible, shall	1486
locate suchthe well so as to penetrate a pillar.	1487

If a well is to be drilled within the limits of a mining	1488
operation that may penetrate the excavation of a mine, the hole	1489
shall be reduced approximately fifteen feet above the roof of the	1490
mine. If roof conditions at the mine warrant, the hole shall be	1491
reduced in the rock formation immediately above suchthe mine, and	1492
a string of casing placed upon the shoulder so as to shut off all	1493
water, then drilling shall be continued to a point approximately	1494
thirty feet below the floor of the mine and another string of	1495
casing set. Both strings of casing shall be approximately the same	1496
diameter as the diameter of the hole.	1497

If no water is encountered between the bottom of the drive	1498
pipe and the approximate casing shoulder above the roof of such	1499
the mine, in lieu of the casing method outlined above, it is	1500
permissible to use the following casing method: the hole shall be	1501
drilled thirty feet below the floor of the mine and a string of	1502
casing shall be extended from the surface to a point thirty feet	1503
below the floor of the mine with a packer of sufficient size	1504
attached to suchthe string of casing. SuchThe packer shall be	1505
placed so that it will be below all water and will be located in	1506
the rock formation immediately above suchthe mine and shall	1507
prevent water or destructive matter from entering therein. Then	1508
the annular space above suchthe packer between the casing and	1509
well wall shall be filled with prepared clay a minimum distance of	1510
fifty feet.	1511

If a well is drilled within the limits of a mining operation	1512
and does not penetrate the excavations of a mine, the hole shall	1513
be reduced thirty feet below the coal or mineral that is being	1514
mined and a string of casing placed at this point. The annular	1515
space behind suchthe casing shall be filled with neat cement from	1516
the casing seat to a point not less than fifty feet above such	1517
the seam of coal or mineral that is being mined. The packer	1518
method, outlined in this section, is also permissible in this type	1519
of well.	1520

It is permissible to attach a release coupling or a right and	1521
left nipple to the string of casing that extends through the mine,	1522
but suchthe release coupling or right and left nipple shall be	1523
placed in such a manner that it is above the packer or at least	1524
twenty feet above the coal or mineral that is being mined.	1525

In wells penetrating the excavation of a mine, the casing	1526
shall be enclosed, if possible, with a column extending from the	1527
floor to the roof of suchthe mine, built of brick or other	1528
suitable material, subject to the approval of the chief of the	1529
division of mineral resources management. If the chief finds the	1530
method prescribed in this section unsafe, inadequate, or not	1531
suitable, the chief shall require suchthe method to be altered in	1532
such a manner that it will be safe.	1533

The chief may order the immediate suspension of the drilling	1534
or reopening of a well in a coal bearing township after	1535
determining that the drilling or reopening activities present an	1536
imminent and substantial threat to public health or safety or to a	1537
miner's health or safety. Before issuing such an order, the chief	1538
shall notify the owner in any manner that the chief determines	1539
would provide reasonable notification of the chief's intent to	1540
issue a suspension order. However, the chief may order the	1541
immediate suspension of the drilling or reopening of a well in a	1542
coal bearing township without prior notification if the chief has	1543
made reasonable attempts to notify the owner and the attempts have	1544
failed. If the chief orders the immediate suspension of such	1545
drilling or reopening, the chief shall provide the owner notice of	1546
the order as soon as practical.	1547

Not later than five days after the issuance of an order to	1548
immediately suspend the drilling or reopening of a well in a coal	1549
bearing township, the chief shall provide the owner an opportunity	1550
to be heard and to present evidence that the drilling or reopening	1551
activities will not likely result in an imminent and substantial	1552
threat to public health or safety or to a miner's health or	1553
safety, as applicable. If the chief, after considering all	1554
evidence presented by the owner, determines that the activities do	1555
not present such a threat, the chief shall revoke the suspension	1556
order.	1557

Notwithstanding any other provision of this chapter, an owner	1558
may appeal a suspension order issued under this section to the	1559
reclamation commission in accordance with section 1513.13 of the	1560
Revised Code.	1561

Sec. 1509.19. An owner who elects to stimulate a well shall	1562
stimulate the well in a manner that will not endanger underground	1563
sources of drinking water. Not later than twenty-four hours before	1564
commencing the stimulation of a well, the owner or the owner's	1565
authorized representative shall notify a mineral resources	1566
inspector. If during the stimulation of a well damage to the	1567
production casing or cement occurs and results in the circulation	1568
of fluids from the annulus of the surface production casing, the	1569
owner shall immediately terminate the stimulation of the well and	1570
notify the chief of the division of mineral resources management.	1571
If the chief determines that the casing and the cement may be	1572
remediated in a manner that isolates the oil and gas bearing zones	1573
of the well, the chief may authorize the completion of the	1574
stimulation of the well. If the chief determines that the	1575
stimulation of a well resulted in irreparable damage to the well,	1576
the chief shall order that the well be plugged and abandoned	1577
within thirty days of the issuance of the order.	1578

For purposes of determining the integrity of the remediation	1579
of the casing or cement of a well that was damaged during the	1580
stimulation of the well, the chief may require the owner of the	1581
well to submit cement evaluation logs, temperature surveys,	1582
pressure tests, or a combination of such logs, surveys, and tests.	1583

Sec. 1509.20.  All owners, lessees, or their agents, drilling	1584
for or producing crude oil or natural gas, shall use every	1585
reasonable precaution in accordance with the most approved methods	1586
of operation to stop and prevent waste of oil or gas, or both. Any	1587
well productive of natural gas in quantity sufficient to justify	1588
utilization shall be utilized or shut in within ten days after	1589
completion.	1590

The owner of any well producing both oil and gas may burn	1591
such gas in flares when it is necessary to protect the health and	1592
safety of the public or when the gas is lawfully produced and	1593
there is no economic market at the well for the escaping gas.	1594

Sec. 1509.21.  No person shall, without first having obtained	1595
a permit from the chief of the division of mineral resources	1596
management, conduct secondary or additional recovery operations,	1597
including any underground injection of fluids or carbon dioxide	1598
for the secondary or tertiary recovery of oil or natural gas or	1599
for the storage of hydrocarbons that are liquid at standard	1600
temperature or pressure, unless a rule of the chief expressly	1601
authorizes such operations without a permit. SuchThe permit shall	1602
be in addition to any permit required by section 1509.05 of the	1603
Revised Code. Secondary or additional recovery operations shall be	1604
conducted in accordance with rules and orders of the chief and any	1605
terms or conditions of the permit authorizing such operations. In	1606
addition, the chief may authorize tests to evaluate whether fluids	1607
or carbon dioxide may be injected in a reservoir and to determine	1608
the maximum allowable injection pressure. The tests shall be	1609
conducted in accordance with methods prescribed in rules of the	1610
chief or conditions of the permit. Rules adopted under this	1611
section shall include provisions regarding applications for and	1612
the issuance of permits; the terms and conditions of permits;	1613
entry to conduct inspections and to examine records to ascertain	1614
compliance with this section and rules, orders, and terms and	1615
conditions of permits adopted or issued thereunder; the provision	1616
and maintenance of information through monitoring, recordkeeping,	1617
and reporting; and other provisions in furtherance of the goals of	1618
this section and the Safe Drinking Water Act. To implement the	1619
goals of the Safe Drinking Water Act, the chief shall not issue a	1620
permit for the underground injection of fluids for the secondary	1621
or tertiary recovery of oil or natural gas or for the storage of	1622
hydrocarbons that are liquid at standard temperature and pressure,	1623
unless the chief concludes that the applicant has demonstrated	1624
that the injection will not result in the presence of any	1625
contaminant in underground water that supplies or can be	1626
reasonably expected to supply any public water system, such that	1627
the presence of any such contaminant may result in the system's	1628
not complying with any national primary drinking water regulation	1629
or may otherwise adversely affect the health of persons. Rules,	1630
orders, and terms or conditions of permits adopted or issued under	1631
this section shall be construed to be no more stringent than	1632
required for compliance with the Safe Drinking Water Act, unless	1633
essential to ensure that underground sources of drinking water	1634
will not be endangered.	1635

Sec. 1509.22.  (A) Except when acting in accordance with	1636
section 1509.226 of the Revised Code, no person shall place or	1637
cause to be placed brine, crude oil, natural gas, or other fluids	1638
associated with the exploration or development of oil and gas	1639
resources in surface or ground water or in or on the land in such	1640
quantities or in such manner as actually causes or could	1641
reasonably be anticipated to cause either of the following:	1642

(1) Water used for consumption by humans or domestic animals	1643
to exceed the standards of the Safe Drinking Water Act;	1644

(2) Damage or injury to public health or safety or the	1645
environment.	1646

(B) No person shall store or dispose of brine in violation of	1647
a plan approved under division (A) of section 1509.222 or section	1648
1509.226 of the Revised Code, in violation of a resolution	1649
submitted under section 1509.226 of the Revised Code, or in	1650
violation of rules or orders applicable to those plans or	1651
resolutions.	1652

(C) The chief of the division of mineral resources management	1653
shall adopt rules and issue orders regarding storage and disposal	1654
of brine and other waste substances; however, the storage and	1655
disposal of brine and other waste substances and the chief's rules	1656
relating to storage and disposal are subject to all of the	1657
following standards:	1658

(1) Brine from any well except an exempt Mississippian well	1659
shall be disposed of only by injection into an underground	1660
formation, including annular disposal if approved by rule of the	1661
chief, which injection shall be subject to division (D) of this	1662
section; by surface application in accordance with section	1663
1509.226 of the Revised Code; in association with a method of	1664
enhanced recovery as provided in section 1509.21 of the Revised	1665
Code; or by other methods approved by the chief for testing or	1666
implementing a new technology or method of disposal. Brine from	1667
exempt Mississippian wells shall not be discharged directly into	1668
the waters of the state.	1669

(2) Muds, cuttings, and other waste substances shall not be	1670
disposed of in violation of any rule;.	1671

(3) Pits mayor steel tanks shall be used as authorized by	1672
the chief for containing brine and other waste substances	1673
resulting from, obtained from, or produced in connection with	1674
drilling, fracturingwell stimulation, reworking, reconditioning,	1675
plugging back, or plugging operations, but the. The pits and steel	1676
tanks shall be constructed and maintained to prevent the escape of	1677
brine and other waste substances. A	1678

(4) A dike or pit may be used for spill prevention and	1679
control. A dike or pit so used shall be constructed and maintained	1680
to prevent the escape of brine and crude oil, and the reservoir	1681
within such a dike or pit shall be kept reasonably free of brine,	1682
crude oil, and other waste substances.	1683

(4)(5) Earthen impoundments constructed pursuant to the	1684
division's specifications may be used for the temporary storage of	1685
brine and other waste substances in association with a saltwater	1686
injection well, an enhanced recovery project, or a solution mining	1687
project;fluids used in the stimulation of a well.	1688

(5)(6) No pit, earthen impoundment, or dike shall be used for	1689
the temporary storage of brine or other substances except in	1690
accordance with divisions (C)(3) and (4)to (5) of this section;.	1691

(6)(7) No pit or dike shall be used for the ultimate disposal	1692
of brine or other liquid waste substances.	1693

(D) No person, without first having obtained a permit from	1694
the chief, shall inject brine or other waste substances resulting	1695
from, obtained from, or produced in connection with oil or gas	1696
drilling, exploration, or production into an underground formation	1697
unless a rule of the chief expressly authorizes the injection	1698
without a permit. The permit shall be in addition to any permit	1699
required by section 1509.05 of the Revised Code, and the permit	1700
application shall be accompanied by a permit fee of one hundred	1701
thousand dollars. The chief shall adopt rules in accordance with	1702
Chapter 119. of the Revised Code regarding the injection into	1703
wells of brine and other waste substances resulting from, obtained	1704
from, or produced in connection with oil or gas drilling,	1705
exploration, or production. The rules may authorize tests to	1706
evaluate whether fluids or carbon dioxide may be injected in a	1707
reservoir and to determine the maximum allowable injection	1708
pressure, which shall be conducted in accordance with methods	1709
prescribed in the rules or in accordance with conditions of the	1710
permit. In addition, the rules shall include provisions regarding	1711
applications for and issuance of the permits required by this	1712
division; entry to conduct inspections and to examine and copy	1713
records to ascertain compliance with this division and rules,	1714
orders, and terms and conditions of permits adopted or issued	1715
under it; the provision and maintenance of information through	1716
monitoring, recordkeeping, and reporting; and other provisions in	1717
furtherance of the goals of this section and the Safe Drinking	1718
Water Act. To implement the goals of the Safe Drinking Water Act,	1719
the chief shall not issue a permit for the injection of brine or	1720
other waste substances resulting from, obtained from, or produced	1721
in connection with oil or gas drilling, exploration, or production	1722
unless the chief concludes that the applicant has demonstrated	1723
that the injection will not result in the presence of any	1724
contaminant in ground water that supplies or can reasonably be	1725
expected to supply any public water system, such that the presence	1726
of the contaminant may result in the system's not complying with	1727
any national primary drinking water regulation or may otherwise	1728
adversely affect the health of persons. This division and rules,	1729
orders, and terms and conditions of permits adopted or issued	1730
under it shall be construed to be no more stringent than required	1731
for compliance with the Safe Drinking Water Act unless essential	1732
to ensure that underground sources of drinking water will not be	1733
endangered.	1734

(E) The owner holding a permit, or an assignee or transferee	1735
who has assumed the obligations and liabilities imposed by this	1736
chapter and any rules adopted or orders issued under it pursuant	1737
to section 1509.31 of the Revised Code, and the operator of a well	1738
shall be liable for a violation of this section or any rules	1739
adopted or orders or terms or conditions of a permit issued under	1740
it.	1741

(F) An owner shall replace the water supply of the holder of	1742
an interest in real property who obtains all or part of the	1743
holder's supply of water for domestic, agricultural, industrial,	1744
or other legitimate use from an underground or surface source	1745
where the supply has been substantially disrupted by	1746
contamination, diminution, or interruption proximately resulting	1747
from the owner's oil or gas operation, or the owner may elect to	1748
compensate the holder of the interest in real property for the	1749
difference between the fair market value of the interest before	1750
the damage occurred to the water supply and the fair market value	1751
after the damage occurred if the cost of replacing the water	1752
supply exceeds this difference in fair market values. However,	1753
during the pendency of any order issued under this division, the	1754
owner shall obtain for the holder or shall reimburse the holder	1755
for the reasonable cost of obtaining a water supply from the time	1756
of the contamination, diminution, or interruption by the operation	1757
until the owner has complied with an order of the chief for	1758
compliance with this division or such an order has been revoked or	1759
otherwise becomes not effective. If the owner elects to pay the	1760
difference in fair market values, but the owner and the holder	1761
have not agreed on the difference within thirty days after the	1762
chief issues an order for compliance with this division, within	1763
ten days after the expiration of that thirty-day period, the owner	1764
and the chief each shall appoint an appraiser to determine the	1765
difference in fair market values, except that the holder of the	1766
interest in real property may elect to appoint and compensate the	1767
holder's own appraiser, in which case the chief shall not appoint	1768
an appraiser. The two appraisers appointed shall appoint a third	1769
appraiser, and within thirty days after the appointment of the	1770
third appraiser, the three appraisers shall hold a hearing to	1771
determine the difference in fair market values. Within ten days	1772
after the hearing, the appraisers shall make their determination	1773
by majority vote and issue their final determination of the	1774
difference in fair market values. The chief shall accept a	1775
determination of the difference in fair market values made by	1776
agreement of the owner and holder or by appraisers under this	1777
division and shall make and dissolve orders accordingly. This	1778
division does not affect in any way the right of any person to	1779
enforce or protect, under applicable law, the person's interest in	1780
water resources affected by an oil or gas operation.	1781

(G) In any action brought by the state for a violation of	1782
division (A) of this section involving any well at which annular	1783
disposal is used, there shall be a rebuttable presumption	1784
available to the state that the annular disposal caused the	1785
violation if the well is located within a one-quarter-mile radius	1786
of the site of the violation.	1787

Sec. 1509.221. (A) No person, without first having obtained	1788
a permit from the chief of the division of mineral resources	1789
management, shall drill a well or inject a substance into a well	1790
for the exploration for or extraction of minerals or energy, other	1791
than oil or natural gas, including, but not limited to, the mining	1792
of sulfur by the Frasch process, the solution mining of minerals,	1793
the in situ combustion of fossil fuel, or the recovery of	1794
geothermal energy to produce electric power, unless a rule of the	1795
chief expressly authorizes the activity without a permit. The	1796
permit shall be in addition to any permit required by section	1797
1509.05 of the Revised Code. The chief shall adopt rules in	1798
accordance with Chapter 119. of the Revised Code governing the	1799
issuance of permits under this section. The rules shall include	1800
provisions regarding the matters the applicant for a permit shall	1801
demonstrate to establish eligibility for a permit; the form and	1802
content of applications for permits; the terms and conditions of	1803
permits; entry to conduct inspections and to examine and copy	1804
records to ascertain compliance with this section and rules,	1805
orders, and terms and conditions of permits adopted or issued	1806
thereunder; provision and maintenance of information through	1807
monitoring, recordkeeping, and reporting; and other provisions in	1808
furtherance of the goals of this section and the Safe Drinking	1809
Water Act. To implement the goals of the Safe Drinking Water Act,	1810
the chief shall not issue a permit under this section, unless the	1811
chief concludes that the applicant has demonstrated that the	1812
drilling, injection of a substance, and extraction of minerals or	1813
energy will not result in the presence of any contaminant in	1814
underground water that supplies or can reasonably be expected to	1815
supply any public water system, such that the presence of the	1816
contaminant may result in the system's not complying with any	1817
national primary drinking water regulation or may otherwise	1818
adversely affect the health of persons. The chief may issue,	1819
without a prior adjudication hearing, orders requiring compliance	1820
with this section and rules, orders, and terms and conditions of	1821
permits adopted or issued thereunder. This section and rules,	1822
orders, and terms and conditions of permits adopted or issued	1823
thereunder shall be construed to be no more stringent than	1824
required for compliance with the Safe Drinking Water Act, unless	1825
essential to ensure that underground sources of drinking water	1826
will not be endangered.	1827

(B)(1) There is levied on the owner of an injection well who	1828
has been issued a permit under division (D) of section 1509.22 of	1829
the Revised Code the following fees:	1830

(a) Five cents per barrel of each substance that is delivered	1831
to a well to be injected in the well when the substance is	1832
produced within the division of mineral resources management	1833
regulatory district in which the well is located or within an	1834
adjoining mineral resources management regulatory district;	1835

(b) Twenty cents per barrel of each substance that is	1836
delivered to a well to be injected in the well when the substance	1837
is not produced within the division of mineral resources	1838
management regulatory district in which the well is located or	1839
within an adjoining mineral resources management regulatory	1840
district.	1841

(2) The maximum number of barrels of substance per injection	1842
well in a calendar year on which a fee may be levied under	1843
division (B) of this section is five hundred thousand. If in a	1844
calendar year the owner of an injection well receives more than	1845
five hundred thousand barrels of substance to be injected in the	1846
owner's well and if the owner receives at least one substance that	1847
is produced within the division's regulatory district in which the	1848
well is located or within an adjoining regulatory district and at	1849
least one substance that is not produced within the division's	1850
regulatory district in which the well is located or within an	1851
adjoining regulatory district, the fee shall be calculated first	1852
on all of the barrels of substance that are not produced within	1853
the division's regulatory district in which the well is located or	1854
within an adjoining district at the rate established in division	1855
(B)(2) of this section. The fee then shall be calculated on the	1856
barrels of substance that are produced within the division's	1857
regulatory district in which the well is located or within an	1858
adjoining district at the rate established in division (B)(1) of	1859
this section until the maximum number of barrels established in	1860
division (B)(2) of this section has been attained.	1861

(3) The owner of an injection well who is issued a permit	1862
under division (D) of section 1509.22 of the Revised Code shall	1863
collect the fee levied by division (B) of this section on behalf	1864
of the division of mineral resources management and forward the	1865
fee to the division. The chief shall transmit all money received	1866
under division (B) of this section to the treasurer of state who	1867
shall deposit the money in the state treasury to the credit of the	1868
oil and gas well fund created in section 1509.02 of the Revised	1869
Code. The owner of an injection well who collects the fee levied	1870
by this division may retain up to three per cent of the amount	1871
that is collected.	1872

(4) The chief shall adopt rules in accordance with Chapter	1873
119. of the Revised Code establishing requirements and procedures	1874
for collection of the fee levied by division (B) of this section.	1875

(C) In an action under section 1509.04 or 1509.33 of the	1876
Revised Code to enforce this section, the court shall grant	1877
preliminary and permanent injunctive relief and impose a civil	1878
penalty upon the showing that the person against whom the action	1879
is brought has violated, is violating, or will violate this	1880
section or rules, orders, or terms or conditions of permits	1881
adopted or issued thereunder. The court shall not require, prior	1882
to granting such preliminary and permanent injunctive relief or	1883
imposing a civil penalty, proof that the violation was, is, or	1884
will be the result of intentional conduct or negligence. In any	1885
such action, any person may intervene as a plaintiff upon the	1886
demonstration that the person has an interest that is or may be	1887
adversely affected by the activity for which injunctive relief or	1888
a civil penalty is sought.	1889

Sec. 1509.222.  (A)(1) Except as provided in section 1509.226	1890
of the Revised Code, no person shall transport brine by vehicle in	1891
this state unless the business entity that employs the person	1892
first registers with and obtains a registration certificate and	1893
identification number from the chief of the division of oil and	1894
gasmineral resources management.	1895

(2) No more than one registration certificate shall be	1896
required of any business entity. Registration certificates issued	1897
under this section are not transferable. An applicant shall file	1898
an application with the chief, containing such information in such	1899
form as the chief prescribes, but including a plan for disposal	1900
that provides for compliance with the requirements of this chapter	1901
and rules of the chief pertaining to the transportation of brine	1902
by vehicle and the disposal of brine so transported and that lists	1903
all disposal sites that the applicant intends to use, the bond	1904
required by section 1509.225 of the Revised Code, and a	1905
certificate issued by an insurance company authorized to do	1906
business in this state certifying that the applicant has in force	1907
a liability insurance policy in an amount not less than three	1908
hundred thousand dollars bodily injury coverage and three hundred	1909
thousand dollars property damage coverage to pay damages for	1910
injury to persons or property caused by the collecting, handling,	1911
transportation, or disposal of brine. The policy shall be	1912
maintained in effect during the term of the registration	1913
certificate. The policy or policies providing the coverage shall	1914
require the insurance company to give notice to the chief if the	1915
policy or policies lapse for any reason. Upon such termination of	1916
the policy, the chief may suspend the registration certificate	1917
until proper insurance coverage is obtained. Each application for	1918
a registration certificate shall be accompanied by a nonrefundable	1919
fee of five hundred dollars.	1920

(3) If a business entity that has been issued a registration	1921
certificate under this section changes its name due to a business	1922
reorganization or merger, the business entity shall revise the	1923
bond or certificates of deposit required by section 1509.225 of	1924
the Revised Code and obtain a new certificate from an insurance	1925
company in accordance with division (A)(2) of this section to	1926
reflect the change in the name of the business entity.	1927

(B) The chief shall issue an order denying an application for	1928
a registration certificate if the chief finds that either of the	1929
following applies:	1930

(1) The applicant, at the time of applying for the	1931
registration certificate, has been found liable by a final	1932
nonappealable order of a court of competent jurisdiction for	1933
damage to streets, roads, highways, bridges, culverts, or	1934
drainways pursuant to section 4513.34 or 5577.12 of the Revised	1935
Code until the applicant provides the chief with evidence of	1936
compliance with the order;.	1937

(2) The applicant's plan for disposal does not provide for	1938
compliance with the requirements of this chapter and rules of the	1939
chief pertaining to the transportation of brine by vehicle and the	1940
disposal of brine so transported.	1941

(C) No applicant shall attempt to circumvent division (B) of	1942
this section by applying for a registration certificate under a	1943
different name or business organization name, by transferring	1944
responsibility to another person or entity, or by any similar act.	1945

(D) A registered transporter shall apply to revise a disposal	1946
plan under procedures that the chief shall prescribe by rule.	1947
However, at a minimum, an application for a revision shall list	1948
all sources and disposal sites of brine currently transported. The	1949
chief shall deny any application for a revision of a plan under	1950
this division if the chief finds that the proposed revised plan	1951
does not provide for compliance with the requirements of this	1952
chapter and rules of the chief pertaining to the transportation of	1953
brine by vehicle and the disposal of brine so transported.	1954
Approvals and denials of revisions shall be by order of the chief.	1955

(E) The chief may adopt rules, issue orders, and attach terms	1956
and conditions to registration certificates as may be necessary to	1957
administer, implement, and enforce sections 1509.222 to 1509.226	1958
of the Revised Code for protection of public health or safety or	1959
conservation of natural resources.	1960

Sec. 1509.225.  (A) Before being issued a registration	1961
certificate under section 1509.222 of the Revised Code, an	1962
applicant shall execute and file with the division of mineral	1963
resources management a surety bond for fifteen thousand dollars to	1964
provide compensation for damage and injury resulting from	1965
transporters' violations of sections 1509.22, 1509.222, and	1966
1509.223 of the Revised Code, all rules and orders of the chief of	1967
the division of mineral resource management relating thereto, and	1968
all terms and conditions of the registration certificate imposed	1969
thereunder. The applicant may deposit with the chief, in lieu of a	1970
surety bond, cash in an amount equal to the surety bond as	1971
prescribed in this section, or negotiable certificates of deposit	1972
issued by any bank organized or transacting business in this	1973
state, or certificates of deposit issued by any building and loan	1974
association as defined in section 1151.01 of the Revised Code,	1975
having a cash value equal to or greater than the amount of the	1976
surety bond as prescribed in this section. Cash or certificates of	1977
deposit shall be deposited upon the same terms as those upon which	1978
surety bonds may be deposited. If certificates of deposit are	1979
deposited with the chief in lieu of a surety bond, the chief shall	1980
require the bank or building and loan association that issued any	1981
such certificate to pledge securities of a cash value equal to the	1982
amount of the certificate that is in excess of the amount insured	1983
by any of the agencies and instrumentalities created under the	1984
"Federal Deposit Insurance Act," 64 Stat. 873 (1950), 12 U.S.C.	1985
1811, as amended, and regulations adopted under it, including at	1986
least the federal deposit insurance corporation, bank insurance	1987
fund, and savings association insurance fund.	1988

Such securities shall be security for the repayment of the	1989
certificate of deposit. Immediately upon a deposit of cash or	1990
certificates with the chief, the chief shall deliver it to the	1991
treasurer of state who shall hold it in trust for the purposes for	1992
which it has been deposited.	1993

(B) The surety bond provided for in this section shall be	1994
executed by a surety company authorized to do business in this	1995
state. The chief shall not approve any bond until it is personally	1996
signed and acknowledged by both principal and surety, or as to	1997
either by an attorney in fact, with a certified copy of the power	1998
of attorney attached thereto. The chief shall not approve suchthe	1999
bond unless there is attached a certificate of the superintendent	2000
of insurance that the company is authorized to transact a fidelity	2001
and surety business in this state. All bonds shall be given in a	2002
form to be prescribed by the chief.	2003

(C) If a registered transporter is found liable for a	2004
violation of section 1509.22, 1509.222, or 1509.223 of the Revised	2005
Code or a rule, order, or term or condition of a certificate	2006
involving, in any case, damage or injury to persons or property,	2007
or both, the court may order the forfeiture of any portion of the	2008
bond, cash, or other securities required by this section in full	2009
or partial payment of damages to the person to whom the damages	2010
are due. The treasurer of state and the chief shall deliver the	2011
bond or any cash or other securities deposited in lieu of bond, as	2012
specified in the court's order, to the person to whom the damages	2013
are due; however, execution against the bond, cash, or other	2014
securities, if necessary, is the responsibility of the person to	2015
whom the damages are due. The chief shall not release the bond,	2016
cash, or securities required by this section except by court order	2017
or until two years after the date on which athe registration is	2018
terminated.	2019

Sec. 1509.226.  (A) If a board of county commissioners, a	2020
board of township trustees, or the legislative authority of a	2021
municipal corporation wishes to permit the surface application of	2022
brine to roads, streets, highways, and other similar land surfaces	2023
it owns or has the right to control for control of dust or ice, it	2024
may adopt a resolution permitting such application as provided in	2025
this section. If a board or legislative authority does not adopt	2026
such a resolution, then no such surface application of brine is	2027
permitted on such roads, streets, highways, and other similar	2028
surfaces. If a board or legislative authority votes on a proposed	2029
resolution to permit such surface application of brine, but the	2030
resolution fails to receive the affirmative vote of a majority of	2031
the board or legislative authority, the board or legislative	2032
authority shall not adopt such a resolution for one year following	2033
the date on which the vote was taken. A board or legislative	2034
authority shall hold at least one public hearing on any proposal	2035
to permit surface application of brine under this division and may	2036
hold additional hearings. The board or legislative authority shall	2037
publish notice of the time and place of each such public hearing	2038
in a newspaper of general circulation in the political subdivision	2039
at least five days before the day on which the hearing is to be	2040
held.	2041

(B) If a board or legislative authority adopts a resolution	2042
permitting the surface application of brine to roads, streets,	2043
highways, and other similar land surfaces under division (A) of	2044
this section, the board or legislative authority shall, within	2045
thirty days after the adoption of the resolution, prepare and	2046
submit to the chief of the division of mineral resources	2047
management a copy of the resolution. Any department, agency, or	2048
instrumentality of this state or the United States that wishes to	2049
permit the surface application of brine to roads, streets,	2050
highways, and other similar land surfaces it owns or has a right	2051
to control shall prepare and submit guidelines for such	2052
application, but need not adopt a resolution under division (A) of	2053
this section permitting such surface application.	2054

All resolutions and guidelines shall be subject to the	2055
following standards:	2056

(1) Brine shall not be applied:

2057

(a) To a water-saturated surface;

2058

(b) Directly to vegetation near or adjacent to surfaces being	2059
treated;	2060

(c) Within twelve feet of structures crossing bodies of water	2061
or crossing drainage ditches;	2062

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

2063

(2) The discharge of brine through the spreader bar shall	2064
stop when the application stops.	2065

(3) The applicator vehicle shall be moving at least five	2066
miles per hour at all times while the brine is being applied.	2067

(4) The maximum spreader bar nozzle opening shall be	2068
three-quarters of an inch in diameter.	2069

(5) The maximum uniform application rate of brine shall be	2070
three thousand gallons per mile on a twelve-foot-wide road or	2071
three gallons per sixty square feet on unpaved lots.	2072

(6) The applicator vehicle discharge valve shall be closed	2073
between the brine collection point and the specific surfaces that	2074
have been approved for brine application.	2075

(7) Any valves that provide for tank draining other than	2076
through the spreader bar shall be closed during the brine	2077
application and transport.	2078

(8) The angle of discharge from the applicator vehicle	2079
spreader bar shall not be greater than sixty degrees from the	2080
perpendicular to the unpaved surface.	2081

(9) Only the last twenty-five per cent of an applicator	2082
vehicle's contents shall be allowed to have a pressure greater	2083
than atmospheric pressure; therefore, the first seventy-five per	2084
cent of the applicator vehicle's contents shall be discharged	2085
under atmospheric pressure.	2086

(10) Only brine that is produced from a well shall be allowed	2087
to be spread on a road. Fluids from the drilling of a well,	2088
flowback from the stimulation of a well, and other fluids used to	2089
treat a well shall not be spread on a road.	2090

If a resolution or guidelines contain only the standards	2091
listed in division (B)(1) to (9)(10) of this section, without	2092
addition or qualification, the resolution or guidelines shall be	2093
deemed effective when submitted to the chief without further	2094
action by the chief. All other resolutions and guidelines shall	2095
comply with and be no less stringent than this chapter, rules	2096
concerning surface application that the chief shall adopt under	2097
division (C) of section 1509.22 of the Revised Code, and other	2098
rules of the chief. Within fifteen days after receiving such other	2099
resolutions and guidelines, the chief shall review them for	2100
compliance with the law and rules and disapprove them if they do	2101
not comply.	2102

The board, legislative authority, or department, agency, or	2103
instrumentality may revise and resubmit any resolutions or	2104
guidelines that the chief disapproves after each disapproval, and	2105
the chief shall again review and approve or disapprove them within	2106
fifteen days after receiving them. The board, legislative	2107
authority, or department, agency, or instrumentality may amend any	2108
resolutions or guidelines previously approved by the chief and	2109
submit them, as amended, to the chief. The chief shall receive,	2110
review, and approve or disapprove the amended resolutions or	2111
guidelines on the same basis and in the same time as original	2112
resolutions or guidelines. The board, legislative authority, or	2113
department, agency, or instrumentality shall not implement amended	2114
resolutions or guidelines until they are approved by the chief	2115
under this division.	2116

(C) Any person, other than a political subdivision required	2117
to adopt a resolution under division (A) of this section or a	2118
department, agency, or instrumentality of this state or the United	2119
States, who owns or has a legal right or obligation to maintain a	2120
road, street, highway, or other similar land surface may file with	2121
the board of county commissioners a written plan for the	2122
application of brine to the road, street, highway, or other	2123
surface. The board need not approve any such plans, but if it	2124
approves a plan, the plan shall comply with this chapter, rules	2125
adopted thereunder, and the board's resolutions, if any.	2126
Disapproved plans may be revised and resubmitted for the board's	2127
approval. Approved plans may also be revised and submitted to the	2128
board. A plan or revised plan shall do all of the following:	2129

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

2130

(2) Identify by name, address, and registration certificate,	2131
if applicable, any transporters of the brine;	2132

(3) Specifically identify the places to which the brine will	2133
be applied;	2134

(4) Specifically describe the method, rate, and frequency of	2135
application.	2136

(D) The board may attach terms and conditions to approval of	2137
a plan, or revised plan, and may revoke approval for any violation	2138
of this chapter, rules adopted thereunder, resolutions adopted by	2139
the board, or terms or conditions attached by the board. The board	2140
shall conduct at least one public hearing before approving a plan	2141
or revised plan, publishing notice of the time and place of each	2142
such public hearing in a newspaper of general circulation in the	2143
county at least five days before the day on which the hearing is	2144
to be held. The board shall record the filings of all plans and	2145
revised plans in its journal. The board shall approve, disapprove,	2146
or revoke approval of a plan or revised plan by the adoption of a	2147
resolution. Upon approval of a plan or revised plan, the board	2148
shall send a copy of the plan to the chief. Upon revoking approval	2149
of a plan or revised plan, the board shall notify the chief of the	2150
revocation.	2151

(E) No person shall:

2152

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

2153

(2) Apply brine directly to vegetation adjacent to the	2154
surface of roads, streets, highways, and other surfaces to which	2155
brine may be applied.	2156

(F) Each political subdivision that adopts a resolution under	2157
divisions (A) and (B) of this section, each department, agency, or	2158
instrumentality of this state or the United States that submits	2159
guidelines under division (B) of this section, and each person who	2160
files a plan under divisions (C) and (D) of this section shall, on	2161
or before the fifteenth day of April of each year, file a report	2162
with the chief concerning brine applied within the person's or	2163
governmental entity's jurisdiction, including the quantities	2164
transported and the sources and application points during the last	2165
preceding calendar year and such other information in such form as	2166
the chief requires.	2167

(G) Any political subdivision or department, agency, or	2168
instrumentality of this state or the United States that applies	2169
brine under this section may do so with its own personnel,	2170
vehicles, and equipment without registration under or compliance	2171
with section 1509.222 or 1509.223 of the Revised Code and without	2172
the necessity for filing the surety bond or other security	2173
required by section 1509.225 of the Revised Code. However, each	2174
such entity shall legibly identify vehicles used to apply brine	2175
with reflective paint in letters no less than four inches in	2176
height, indicating the word "brine" and that the vehicle is a	2177
vehicle of the political subdivision, department, agency, or	2178
instrumentality. Except as stated in this division, such entities	2179
shall transport brine in accordance with sections 1509.22 to	2180
1509.226 of the Revised Code.	2181

(H) A surface application plan filed for approval under	2182
division (C) of this section shall be accompanied by a	2183
nonrefundable fee of fifty dollars, which shall be credited to the	2184
general fund of the county. An approved plan is valid for one year	2185
from the date of its approval unless it is revoked before that	2186
time. An approved revised plan is valid for the remainder of the	2187
term of the plan it supersedes unless it is revoked before that	2188
time. Any person who has filed such a plan or revised plan and had	2189
it approved may renew it by refiling it in accordance with	2190
divisions (C) and (D) of this section within thirty days before	2191
any anniversary of the date on which the original plan was	2192
approved. The board shall notify the chief of renewals and	2193
nonrenewals of plans. Even if a renewed plan is approved under	2194
those divisions, the plan is not effective until notice is	2195
received by the chief, and until notice is received, the chief	2196
shall enforce this chapter and rules adopted thereunder with	2197
regard to the affected roads, streets, highways, and other similar	2198
land surfaces as if the plan had not been renewed.	2199

(I) A resolution adopted under division (A) of this section	2200
by a board or legislative authority shall be effective for one	2201
year following the date of its adoption and from month to month	2202
thereafter until the board or legislative authority, by	2203
resolution, terminates the authority granted in the original	2204
resolution. The termination shall be effective not less than seven	2205
days after enactment of the resolution, and a copy of the	2206
resolution shall be sent to the chief.	2207

Sec. 1509.23.  (A) Rules of the chief of the division of	2208
mineral resources management may specify practices to be followed	2209
in the drilling and treatment of wells and, production of oil and	2210
gas, and plugging of wells for protection of public health or	2211
safety or to prevent damage to natural resources, including	2212
specification of the following:	2213

(1) Appropriate devices;

2214

(2) Minimum distances that wells and other excavations,	2215
structures, and equipment shall be located from water wells,	2216
streets, roads, highways, rivers, lakes, streams, ponds, other	2217
bodies of water, railroad tracks, public or private recreational	2218
areas, zoning districts, and buildings or other structures;. Rules	2219
adopted under division (A)(2) of this section shall not conflict	2220
with section 1509.021 of the Revised Code.	2221

(3) Other methods of operation;

2222

(4) Procedures, methods, and equipment and other requirements	2223
for equipment to prevent and contain discharges of oil and brine	2224
from oil production facilities and oil drilling and workover	2225
facilities consistent with and equivalent in scope, content, and	2226
coverage to section 311(j)(1)(c) of the "Federal Water Pollution	2227
Control Act Amendments of 1972," 86 Stat. 886, 33 U.S.C.A. 1251,	2228
as amended, and regulations adopted under it. In addition, the	2229
rules may specify procedures, methods, and equipment and other	2230
requirements for equipment to prevent and contain surface and	2231
subsurface discharges of fluids, condensates, and gases.	2232

(5) Notifications.

2233

(B) The chief, in consultation with the emergency response	2234
commission created in section 3750.02 of the Revised Code, shall	2235
adopt rules in accordance with Chapter 119. of the Revised Code	2236
that specify the information that shall be included in an	2237
electronic database that the chief shall create and host. The	2238
information shall be that which the chief considers to be	2239
appropriate for the purpose of responding to emergency situations	2240
that pose a threat to public health or safety or the environment.	2241
At the minimum, the information shall include that which a person	2242
who is regulated under this chapter is required to submit under	2243
the "Emergency Planning and Community Right-To-Know Act of 1986,"	2244
100 Stat. 1728, 42 U.S.C.A. 11001, and regulations adopted under	2245
it.	2246

In addition, the rules shall specify whether and to what	2247
extent the database and the information that it contains will be	2248
made accessible to the public. The rules shall ensure that the	2249
database will be made available via the internet or a system of	2250
computer disks to the emergency response commission and to every	2251
local emergency planning committee and fire department in this	2252
state.	2253

Sec. 1509.24. (A) The chief of the division of mineral	2254
resources management, with the approval of the technical advisory	2255
council on oil and gas created in section 1509.38 of the Revised	2256
Code, may adopt, amend, or rescind rules relative to minimum	2257
acreage requirements for drilling units and minimum distances from	2258
which a new well may be drilled or an existing well deepened,	2259
plugged back, or reopened to a source of supply different from the	2260
existing pool from boundaries of tracts, drilling units, and other	2261
wells for the purpose of conserving oil and gas reserves. Rules	2262
The rules relative to minimum acreage requirements for drilling	2263
units shall require a drilling unit to be compact and composed of	2264
contiguous land.	2265

(B) Rules adopted under this section and special orders made	2266
under section 1509.25 of the Revised Code shall apply only to new	2267
wells to be drilled or existing wells to be deepened, plugged	2268
back, or reopened to a source of supply different from the	2269
existing pool for the purpose of extracting oil or gas in their	2270
natural state.	2271

Sec. 1509.27.  If a tract of land is of insufficient size or	2272
shape to meet the requirements for drilling a well thereon as	2273
provided in section 1509.24 or 1509.25 of the Revised Code,	2274
whichever is applicable, and the owner of the tract who also is	2275
the owner of the mineral interest has been unable to form a	2276
drilling unit under agreement as provided in section 1509.26 of	2277
the Revised Code, on a just and equitable basis, thesuch an owner	2278
of such tract may make application to the division of mineral	2279
resources management for a mandatory pooling order.	2280

SuchThe application shall include such data and information	2281
as shall be reasonably required by the chief of the division of	2282
mineral resources management and shall be accompanied by an	2283
application for a permit as required by section 1509.05 of the	2284
Revised Code. The chief shall notify all owners of land within the	2285
area proposed to be included within the orderdrilling unit of the	2286
filing of suchthe application and of their right to a hearing if	2287
requested. After the hearing or after the expiration of thirty	2288
days from the date notice of application was mailed to such	2289
owners, the chief, if satisfied that the application is proper in	2290
form and that mandatory pooling is necessary to protect	2291
correlative rights orand to provide effective development, use,	2292
orand conservation of oil and gas, shall issue a drilling permit	2293
and a mandatory pooling order complying with the requirements for	2294
drilling a well as provided in section 1509.24 or 1509.25 of the	2295
Revised Code, whichever is applicable, which. The mandatory	2296
pooling order shall:	2297

(A) Designate the boundaries of the drilling unit within	2298
which the well shall be drilled;	2299

(B) Designate the proposed drillingproduction site;

2300

(C) Describe each separately owned tract or part thereof	2301
pooled by the order;	2302

(D) Allocate on a surface acreage basis a pro rata portion of	2303
the production to the owner of each tract;pooled by the order.	2304
The pro rata portion shall be in the same proportion that the	2305
percentage of the owner's acreage is to the state minimum acreage	2306
requirements established in rules adopted under this chapter for a	2307
drilling unit unless the applicant demonstrates to the chief using	2308
geological evidence that the geologic structure containing the oil	2309
or gas is larger than the minimum acreage requirement in which	2310
case the pro rata portion shall be in the same proportion that the	2311
percentage of the owner's acreage is to the geologic structure.	2312

(E) Specify the basis upon which each owner of a tract pooled	2313
by the order shall share all reasonable costs and expenses of	2314
drilling and producing if the owner elects to participate in the	2315
drilling and operation of the well;	2316

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

2317

A person shall not submit more than five applications for	2318
mandatory pooling orders per year under this section unless	2319
otherwise approved by the chief.	2320

No surface operations or disturbances to the surface of the	2321
land shall occur on a tract pooled by an order without the written	2322
consent of or a written agreement with the owner of the tract that	2323
approves the operations or disturbances. In addition, the chief	2324
shall adopt rules in accordance with Chapter 119. of the Revised	2325
Code that establish setback requirements for surface facilities of	2326
a well that are located near property that is subject to a	2327
mandatory pooling order. Those rules shall not conflict with	2328
spacing requirements for the surface facilities of a well and	2329
shall not prevent the development of the drilling unit.	2330

If an owner of a tract pooled by the order does not elect to	2331
participate in the risk and cost of the drilling and operation, or	2332
operation, of a well, the owner may elect toshall be designated	2333
as a nonparticipating owner in the drilling and operation, or	2334
operation, of the well, on a limited or carried basis uponand is	2335
subject to terms and conditions determined by the chief to be just	2336
and reasonable. In addition, if an owner is designated as a	2337
nonparticipating owner, the owner is not liable for actions or	2338
conditions associated with the drilling or operation of the well.	2339
If one or more of the participating owners bearapplicant bears	2340
the costs of drilling, equipping, orand operating a well for the	2341
benefit of a nonparticipating owner, as provided for in the	2342
pooling order, then such participating owner or ownersthe	2343
applicant shall be entitled to the share of production from the	2344
drilling unit accruing to the interest of suchthat	2345
nonparticipating owner, exclusive of the nonparticipating owner's	2346
proportionate share of the royalty interest if the fee holder has	2347
leased the fee holder's land to others, otherwise, one-eighth of	2348
the fee holder's share of the production, until there has been	2349
received the share of costs charged to suchthat nonparticipating	2350
owner plus such additional percentage of the share of costs as the	2351
chief shall determine. The total amount receivable hereunder shall	2352
in no event exceed doubletwo hundred per cent of the share of	2353
costs charged to suchthat nonparticipating owner. After receipt	2354
of that share of costs by such an applicant, a nonparticipating	2355
owner shall receive a proportionate share of the working interest	2356
in the well in addition to a proportionate share of the royalty	2357
interest, if any.	2358

If there is a dispute as to costs of drilling, equipping, or	2359
operating a well, the chief shall determine suchthose costs.	2360

In instances where a well is completed prior to the pooling	2361
of interests in a drilling unit under this section, the sharing of	2362
production and adjustment of the original costs of drilling,	2363
equipping, and completing the well shall be from the effective	2364
date of the mandatory pooling order.	2365

From and after the date of a pooling order, all operation,	2366
including the commencement of drilling or the operating of or	2367
production from a well upon any tract or portion of the drilling	2368
unit, shall be deemed for all purposes the conduct of such	2369
operations upon and production from any lease or contract for	2370
lands any portion of which is included in the drilling unit.	2371

Sec. 1509.31. (A) Whenever the entire interest of an oil and	2372
gas lease is assigned or otherwise transferred, the assignor or	2373
transferor shall notify the holders of the royalty interests, and,	2374
if a well or wells exist on the lease, the division of mineral	2375
resources management, of the name and address of the assignee or	2376
transferee by certified mail, return receipt requested, not later	2377
than thirty days after the date of the assignment or transfer.	2378
When notice of any such assignment or transfer is required to be	2379
provided to the division, it shall be provided on a form	2380
prescribed and provided by the division and verified by both the	2381
assignor or transferor and by the assignee or transferee and shall	2382
be accompanied by a nonrefundable fee of one hundred dollars for	2383
each well. The notice form applicable to assignments or transfers	2384
of a well to the owner of the surface estate of the tract on which	2385
the well is located shall contain a statement informing the	2386
landowner that the well may require periodic servicing to maintain	2387
its productivity; that, upon assignment or transfer of the well to	2388
the landowner, the landowner becomes responsible for compliance	2389
with the requirements of this chapter and rules adopted under it,	2390
including, without limitation, the proper disposal of brine	2391
obtained from the well, the plugging of the well when it becomes	2392
incapable of producing oil or gas, and the restoration of the well	2393
site; and that, upon assignment or transfer of the well to the	2394
landowner, the landowner becomes responsible for the costs of	2395
compliance with the requirements of this chapter and rules adopted	2396
under it and the costs for operating and servicing the well.	2397

(B) When the entire interest of a well is proposed to be	2398
assigned or otherwise transferred to the landowner for use as an	2399
exempt domestic well, the owner who has been issued a permit under	2400
this chapter for the well shall submit to the chief an application	2401
for the assignment or transfer that contains all documents that	2402
the chief requires and a nonrefundable fee of one hundred dollars.	2403
The application for such an assignment or transfer shall be	2404
prescribed and provided by the chief. The chief may approve the	2405
application if the application is accompanied by a release of all	2406
of the oil and gas leases that are included in the applicable	2407
formation of the drilling unit, the release is in a form such that	2408
the well ownership merges with the fee simple interest of the	2409
surface tract, and the release is in a form that may be recorded.	2410
However, if the owner of the well does not release the oil and gas	2411
leases associated with the well that is proposed to be assigned or	2412
otherwise transferred or if the fee simple tract that results from	2413
the merger of the well ownership with the fee simple interest of	2414
the surface tract is less than five acres, the proposed exempt	2415
domestic well owner shall post a five thousand dollar bond with	2416
the division of mineral resources management prior to the	2417
assignment or transfer of the well to ensure that the well will be	2418
properly plugged. The chief, for good cause, may modify the	2419
requirements of this section governing the assignment or transfer	2420
of the interests of a well to the landowner. Upon the assignment	2421
or transfer of the well, the owner of an exempt domestic well is	2422
subject to the severance tax levied under section 5749.02 of the	2423
Revised Code and all applicable fees established in this chapter.	2424

(C) The owner holding a permit under section 1509.05 of the	2425
Revised Code is responsible for all obligations and liabilities	2426
imposed by this chapter and any rules, orders, and terms and	2427
conditions of a permit adopted or issued under it, and no	2428
assignment or transfer by the owner relieves the owner of the	2429
obligations and liabilities until and unless the assignee or	2430
transferee files with the division the information described in	2431
divisions (A)(1), (2), (3), (4), (5), (10), (11), and (12) of	2432
section 1509.06 of the Revised Code; obtains liability insurance	2433
coverage required by section 1509.07 of the Revised Code, except	2434
when none is required by that section; and executes and files a	2435
surety bond, negotiable certificates of deposit or irrevocable	2436
letters of credit, or cash, as described in that section. Instead	2437
of a bond, but only upon acceptance by the chief of the division	2438
of mineral resources management, the assignee or transferee may	2439
file proof of financial responsibility, described in section	2440
1509.07 of the Revised Code. Section 1509.071 of the Revised Code	2441
applies to the surety bond, cash, and negotiable certificates of	2442
deposit and irrevocable letters of credit described in this	2443
section. Unless the chief approves a modification, each assignee	2444
or transferee shall operate in accordance with the plans and	2445
information filed by the permit holder pursuant to section 1509.06	2446
of the Revised Code.	2447

(D) If a mortgaged property that is being foreclosed is	2448
subject to an oil or gas lease, pipeline agreement, or other	2449
instrument related to the production or sale of oil or natural gas	2450
and the lease, agreement, or other instrument was recorded	2451
subsequent to the mortgage, and if the lease, agreement, or other	2452
instrument is not in default, the oil or gas lease, pipeline	2453
agreement, or other instrument, as applicable, has priority over	2454
all other liens, claims, or encumbrances on the property so that	2455
the oil or gas lease, pipeline agreement, or other instrument is	2456
not terminated or extinguished upon the foreclosure sale of the	2457
mortgaged property. If the owner of the mortgaged property was	2458
entitled to oil and gas royalties before the foreclosure sale, the	2459
oil or gas royalties shall be paid to the purchaser of the	2460
foreclosed property.	2461

Sec. 1509.34. (A) If an owner fails to pay the fees imposed	2462
by this chapter or the taxes levied on the severance of oil and	2463
gas under section 5749.02 of the Revised Code, or if the chief of	2464
the division of mineral resources management incurs costs under	2465
division (E) of section 1509.071 of the Revised Code to correct	2466
conditions associated with the owner's well that the chief	2467
reasonably has determined are causing imminent health or safety	2468
risks, the division of mineral resources management shall have a	2469
priority lien against that owner's interest in the applicable well	2470
in front of all other creditors for the amount of any such unpaid	2471
fees and taxes and costs incurred. The chief shall file a	2472
statement in the office of the county recorder of the county in	2473
which the applicable well is located of the amount of the unpaid	2474
fees and taxes and costs incurred as described in this division.	2475
The statement shall constitute a lien on the owner's interest in	2476
the well as of the date of the filing. The lien shall remain in	2477
force so long as any portion of the lien remains unpaid or until	2478
the chief issues a certificate of release of the lien. If the	2479
chief issues a certificate of release of the lien, the chief shall	2480
file the certificate of release in the office of the applicable	2481
county recorder.	2482

(B) The chief promptly shall issue a certificate of release	2483
of a lien under either of the following circumstances:	2484

(1) Upon the repayment in full of the amount of unpaid fees	2485
imposed by this chapter or taxes levied on the severance of oil	2486
and gas under section 5749.02 of the Revised Code or costs	2487
incurred by the chief under division (E) of section 1509.071 of	2488
the Revised Code to correct conditions associated with the owner's	2489
well that the chief reasonably has determined are causing imminent	2490
health or safety risks;	2491

(2) Any other circumstance that the chief determines to be in	2492
the best interests of the state.	2493

(C) The chief may modify the amount of a lien under this	2494
section. If the chief modifies a lien, the chief shall file a	2495
statement in the office of the county recorder of the applicable	2496
county of the new amount of the lien.	2497

(D) An owner regarding which the division has recorded a lien	2498
against the owner's interest in a well in accordance with this	2499
section shall not transfer a well, lease, or mineral rights to	2500
another owner or person until the chief issues a certificate of	2501
release for each lien against the owner's interest in the well.	2502

(E) All money from the collection of liens under this section	2503
shall be deposited in the state treasury to the credit of the oil	2504
and gas well fund created in section 1509.02 of the Revised Code.	2505

Sec. 1509.35. (A) There is hereby created an oil and gas	2506
commission consisting of five members appointed by the governor.	2507
Terms of office shall be for five years, commencing on the	2508
fifteenth day of October and ending on the fourteenth day of	2509
October, except that the terms of the first five members of the	2510
board shall be for one, two, three, four, and five years,	2511
respectively, as designated by the governor at the time of the	2512
appointment. Each member shall hold office from the date of	2513
appointment until the end of the term for which the member was	2514
appointed. Any member appointed to fill a vacancy occurring prior	2515
to the expiration of the term for which the member's predecessor	2516
was appointed shall hold office for the remainder of suchthat	2517
term. Any member shall continue in office subsequent to the	2518
expiration date of the member's term until a successor takes	2519
office, or until a period of sixty days has elapsed, whichever	2520
occurs first. Each vacancy occurring on the commission shall be	2521
filled by appointment within sixty days after the vacancy occurs.	2522
One of the appointees to the commission shall be a person who, by	2523
reason of the person's previous vocation, employment, or	2524
affiliations, can be classed as a representative of a major	2525
petroleum company. One of the appointees to the commission shall	2526
be a person who, by reason of the person's previous vocation,	2527
employment, or affiliations, can be classed as a representative of	2528
the public. One of the appointees to the commission shall be a	2529
person who, by reason of the person's previous training and	2530
experience, can be classed as a representative of independent	2531
petroleum operators. One of the appointees to the commission shall	2532
be a person who, by reason of the person's previous training and	2533
experience, can be classed as one learned and experienced in oil	2534
and gas law. One of the appointees to the commission shall be a	2535
person who, by reason of the person's previous training and	2536
experience, can be classed as one learned and experienced in	2537
geology or petroleum engineering. Not more than three members	2538
shall be members of the same political party. This division does	2539
not apply to temporary members appointed under division (C) of	2540
this section.	2541

(B) Three members constitute a quorum and no action of the	2542
commission is valid unless it has the concurrence of at least a	2543
majority of the members voting on that action. The commission	2544
shall keep a record of its proceedings.	2545

(C) If the chairperson of the commission determines that a	2546
quorum cannot be obtained for the purpose of considering a matter	2547
that will be before the commission because of vacancies or recusal	2548
of its members, the chairperson may contact the technical advisory	2549
council on oil and gas created in section 1509.38 of the Revised	2550
Code and request a list of members of the council who may serve as	2551
temporary members of the commission. Using the list provided by	2552
the council, the chairperson may appoint temporary members to the	2553
commission. The appointment of temporary members shall be for only	2554
the matter for which a quorum cannot be obtained. The number of	2555
temporary members appointed by the chairperson shall not exceed	2556
the number that is necessary to obtain a quorum for the matter. A	2557
temporary member of the commission has the same authority, rights,	2558
and obligations as a member of the commission, including the right	2559
to compensation and other expenses as provided in this section.	2560
The authority, rights, and obligations of a temporary member cease	2561
when the temporary member's service on the commission ends.	2562

(D) Each member shall be paid an amount fixed pursuant to	2563
division (J) of section 124.15 of the Revised Code per diem when	2564
actually engaged in the performance of work as a member and when	2565
engaged in travel necessary in connection with suchthat work. In	2566
addition to such compensation each member shall be reimbursed for	2567
all traveling, hotel, and other expenses necessarily incurred in	2568
the performance of work as a member.	2569

(E) The commission shall select from among its members a	2570
chairperson, a vice-chairperson, and a secretary. These officers	2571
shall serve for terms of one year.	2572

(F) The governor may remove any member of the commission from	2573
office for inefficiency, neglect of duty, malfeasance,	2574
misfeasance, or nonfeasance.	2575

(G) The commission, in accordance with Chapter 119. of the	2576
Revised Code, shall adopt rules to govern its procedure.	2577

Sec. 1509.36.  Any person claiming to be aggrieved or	2578
adverselydirectly affected by an order by the chief of the	2579
division of mineral resources management may appeal to the oil and	2580
gas commission for an order vacating or modifying suchthe order.	2581

The person so appealing to the commission shall be known as	2582
appellant and the chief shall be known as appellee. Appellant and	2583
appellee shall be deemed to be parties to the appeal.	2584

The appeal shall be in writing and shall set forth the order	2585
complained of and the grounds upon which the appeal is based. The	2586
appeal shall be filed with the commission within thirty days after	2587
the date upon which the appellant received notice by registered	2588
certified mail of the makingand, for all other persons claiming	2589
to be directly affected by the order, within thirty days after the	2590
date of the order complained of. Notice of the filing of the	2591
appeal shall be filed with the chief within three days after the	2592
appeal is filed with the commission.	2593

Upon the filing of the appeal the commission promptly shall	2594
fix the time and place at which the hearing on the appeal will be	2595
held, and shall give the appellant and the chief at least ten	2596
days' written notice thereof by mail. The commission may postpone	2597
or continue any hearing upon its own motion or upon application of	2598
the appellant or of the chief.	2599

The filing of an appeal provided for in this section does not	2600
automatically suspend or stay execution of the order appealed	2601
from, but upon application by the appellant the commission may	2602
suspend or stay suchthe execution pending determination of the	2603
appeal upon such terms as the commission considers proper.	2604

Either party to the appeal or any interested person who,	2605
pursuant to commission rules has been granted permission to	2606
appear, may submit such evidence as the commission considers	2607
admissible.	2608

For the purpose of conducting a hearing on an appeal, the	2609
commission may require the attendance of witnesses and the	2610
production of books, records, and papers, and it may, and at the	2611
request of any party it shall, issue subpoenas for witnesses or	2612
subpoenas duces tecum to compel the production of any books,	2613
records, or papers, directed to the sheriffs of the counties where	2614
suchthe witnesses are found. The subpoenas shall be served and	2615
returned in the same manner as subpoenas in criminal cases are	2616
served and returned. The fees of sheriffs shall be the same as	2617
those allowed by the court of common pleas in criminal cases.	2618
Witnesses shall be paid the fees and mileage provided for under	2619
section 119.094 of the Revised Code. Such fees and mileage	2620
expenses incurred at the request of appellant shall be paid in	2621
advance by the appellant, and the remainder of suchthose expenses	2622
shall be paid out of funds appropriated for the expenses of the	2623
division of mineral resources management.	2624

In case of disobedience or neglect of any subpoena served on	2625
any person, or the refusal of any witness to testify to any matter	2626
regarding which the witness may be lawfully interrogated, the	2627
court of common pleas of the county in which suchthe	2628
disobedience, neglect, or refusal occurs, or any judge thereof, on	2629
application of the commission or any member thereof, shall compel	2630
obedience by attachment proceedings for contempt as in the case of	2631
disobedience of the requirements of a subpoena issued from such	2632
that court or a refusal to testify therein. Witnesses at such	2633
hearings shall testify under oath, and any member of the	2634
commission may administer oaths or affirmations to persons who so	2635
testify.	2636

At the request of any party to the appeal, a stenographic	2637
record of the testimony and other evidence submitted shall be	2638
taken by an official court shorthand reporter at the expense of	2639
the party making the request therefor. SuchThe record shall	2640
include all of the testimony and other evidence and the rulings on	2641
the admissibility thereof presented at the hearing. The commission	2642
shall pass upon the admissibility of evidence, but any party may	2643
at the time object to the admission of any evidence and except to	2644
the rulings of the commission thereon, and if the commission	2645
refuses to admit evidence the party offering same may make a	2646
proffer thereof, and such proffer shall be made a part of the	2647
record of suchthe hearing.	2648

If upon completion of the hearing the commission finds that	2649
the order appealed from was lawful and reasonable, it shall make a	2650
written order affirming the order appealed from; if the commission	2651
finds that the order was unreasonable or unlawful, it shall make a	2652
written order vacating the order appealed from and making the	2653
order that it finds the chief should have made. Every order made	2654
by the commission shall contain a written finding by the	2655
commission of the facts upon which the order is based.	2656

Notice of the making of the order shall be given forthwith to	2657
each party to the appeal by mailing a certified copy thereof to	2658
each such party by certified mail.	2659

The order of the commission is final unless vacated by the	2660
court of common pleas of Franklin county in an appeal as provided	2661
for in section 1509.37 of the Revised Code. Sections 1509.01 to	2662
1509.37 of the Revised Code, providing for appeals relating to	2663
orders by the chief or by the commission, or relating to rules	2664
adopted by the chief, do not constitute the exclusive procedure	2665
that any person who believes the person's rights to be unlawfully	2666
affected by those sections or any official action taken thereunder	2667
must pursue in order to protect and preserve those rights, nor do	2668
those sections constitute a procedure that that person must pursue	2669
before that person may lawfully appeal to the courts to protect	2670
and preserve those rights.	2671

Sec. 1509.50. In addition to paying the applicable taxes	2672
levied on the severance of oil and gas under section 5749.02 of	2673
the Revised Code, an owner shall pay an oil and gas regulatory	2674
cost recovery assessment of ten cents per barrel of oil or	2675
one-half cent per one thousand cubic feet of natural gas, as	2676
applicable, that is sold from all of the owner's wells located in	2677
this state. The owner shall collect from each person who has a	2678
revenue interest in a well of the owner that person's pro rata	2679
share of the assessment.	2680

The minimum amount of the assessment for every quarterly	2681
period, which periods are specified in section 5749.06 of the	2682
Revised Code, shall be either the amount of fifteen dollars	2683
multiplied by the total number of the owner's wells or the amount	2684
of the owner's severance taxes levied under section 5749.02 of the	2685
Revised Code plus the oil and gas regulatory cost recovery	2686
assessment imposed by this section, whichever is greater. An owner	2687
shall pay the assessment at the time and using the procedures that	2688
are established in section 5749.06 of the Revised Code for the	2689
collection of the taxes levied on the severance of oil and gas	2690
under section 5749.02 of the Revised Code. All money collected	2691
pursuant to this section shall be deposited in the state treasury	2692
to the credit of the oil and gas well fund created in section	2693
1509.02 of the Revised Code.	2694

The oil and gas regulatory cost recovery assessment imposed	2695
by this section shall be treated the same and equivalent for all	2696
purposes as the taxes levied on the severance of oil and gas under	2697
section 5749.02 of the Revised Code. However, the assessment	2698
imposed by this section is not a tax under Chapter 5749. of the	2699
Revised Code.	2700

Sec. 1509.60.  If the owner of a parcel of real property	2701
receives a notice concerning the filing of an application for a	2702
permit to drill a new well within an urbanized area as required by	2703
division (A)(9) of section 1509.06 of the Revised Code, the owner	2704
shall provide to each residence in an occupied dwelling that is	2705
located on the owner's parcel of real property, if any, a copy of	2706
that notice within five days of receipt of the notice.	2707

Sec. 1509.61.  (A) The legislative authority of a political	2708
subdivision shall conduct a public meeting concerning a proposed	2709
lease agreement for the development of oil and gas resources on	2710
land that is located in an urbanized area and that is owned by the	2711
political subdivision prior to entering into the lease agreement.	2712
The public meeting shall be conducted in a public venue in the	2713
municipal corporation or township in which the proposed well is to	2714
be located. The public meeting shall not occur at the same meeting	2715
at which the legislative authority of the political subdivision	2716
votes to enter into a proposed lease, if applicable.	2717

The legislative authority of the political subdivision shall	2718
send notice not later than ten days prior to the date of the	2719
public meeting to the owner of each parcel of real property that	2720
is located within five hundred feet of the surface location of the	2721
property that is the subject of the proposed lease agreement. The	2722
notice shall contain a statement that the legislative authority of	2723
the political subdivision is considering entering into an oil or	2724
gas lease agreement, and provide the location, date, and time of	2725
the public meeting. In addition, the statement shall contain a	2726
statement that informs an owner of real property who is required	2727
to receive notice of the public meeting under this division that,	2728
within five days of receipt of the notice, the owner is required	2729
to provide notice under division (C) of this section to each	2730
residence in an occupied dwelling that is located on the owner's	2731
parcel of real property.	2732

(B) The legislative authority of a political subdivision that	2733
is required to provide notice under division (A) of this section	2734
shall provide the notice in accordance with requirements	2735
established by the legislative authority governing public meetings	2736
that are held by the legislative authority.	2737

(C) If the owner of a parcel of real property receives a	2738
notice under division (A) of this section, the owner shall provide	2739
to each residence in an occupied dwelling that is located on the	2740
owner's parcel of real property, if any, a copy of that notice	2741
within five days of receipt of the notice.	2742

Sec. 1565.07.  The superintendent in charge of a mine shall	2743
direct the mine foreperson in such manner as is necessary to	2744
secure compliance with this chapter and Chapters 1561., 1563., and	2745
1567. and sectionssection 1509.18 and 1509.19 of the Revised	2746
Code. The superintendent may act as mine foreperson, but if the	2747
superintendent does so act regularly, the superintendent shall	2748
obtain a certificate from the chief of the division of mineral	2749
resources management in the same manner as the certification of	2750
mine foreperson is obtained.	2751

A person designated as a superintendent of an underground	2752
coal mine after January 1, 1977, shall, within six months after	2753
being so designated, demonstrate to the chief that the person has	2754
knowledge of the mining laws of this state governing the operation	2755
of underground coal mines either by presenting evidence that the	2756
person has passed a mine foreperson examination given by the chief	2757
or an examination given by the chief concerning the laws of this	2758
state governing the operation of underground coal mines.	2759

No person shall refuse or neglect to comply with this	2760
section.	2761

Sec. 1565.13.  In case of an injury to person or property,	2762
occasioned by a violation of this chapter and Chapters 1561.,	2763
1563., and 1567., and sectionssection 1509.18 and 1509.19 of the	2764
Revised Code, or any failure to comply with suchthose chapters or	2765
sectionsthat section, by any operator of a mine, a right of	2766
action shall accrue to the person injured, for any direct damage	2767
hethe person injured has sustained thereby. In case of loss of	2768
life by reason of such failure or neglect, a right of action shall	2769
accrue to the widow, and children, or if there are none, then to	2770
the parents and next of kin, of the person whose death was so	2771
caused, for like recovery of damages for the injury they have	2772
sustained. Any operator of a mine who has complied with Chapter	2773
4123. of the Revised Code, is exempt as provided in section	2774
4123.74 of the Revised Code, and not liable for damages at common	2775
law or by statute for injury or death of any employee.	2776

Sec. 1571.05.  (A) Whenever any part of a gas storage	2777
reservoir or any part of its protective area underlies any part of	2778
a coal mine, or is, or within nine months is expected or intended	2779
to be, within two thousand linear feet of the boundary of a coal	2780
mine that is operating in a coal seam any part of which extends	2781
over any part of the storage reservoir or its protective area, the	2782
operator of suchthe reservoir, if the reservoir operator or some	2783
other reservoir operator has not theretofore done so, shall:	2784

(1) Use every known method that is reasonable under the	2785
circumstance for discovering and locating all wells drilled within	2786
the area of suchthe reservoir or its protective area that	2787
underlie any part of suchthe coal mine or its protective area;	2788

(2) Plug or recondition all known wells drilled within the	2789
area of suchthe reservoir or its protective area that underlie	2790
any part of suchthe coal mine.	2791

(B) Whenever an operator of a gas storage reservoir is	2792
notified by the operator of a coal mine, as provided in division	2793
(B) of section 1571.03 of the Revised Code, that suchthe coal	2794
mine operator believes that part of the boundary of suchthe mine	2795
is within two thousand linear feet of a well that is drilled	2796
through the horizon of suchthe coal mine and into or through the	2797
storage stratum or strata of suchthe reservoir within the	2798
boundary of suchthe reservoir or within its protective area, such	2799
the reservoir operator shall plug or recondition suchthe well as	2800
in this section prescribed, unless it is agreed in a conference or	2801
is ordered by the chief of the division of mineral resources	2802
management after a hearing, as provided in section 1571.10 of the	2803
Revised Code, that the well referred to in the notice is not such	2804
a well as is described in division (B) of section 1571.03 of the	2805
Revised Code.	2806

Whenever an operator of a gas storage reservoir is notified	2807
by the operator of a coal mine as provided in division (C) or (D)	2808
of section 1571.03 of the Revised Code, that part of the boundary	2809
of suchthe mine is, or within nine months is intended or expected	2810
to be, within two thousand linear feet of a well that is drilled	2811
through the horizon of suchthe mine and into or through the	2812
storage stratum or strata of suchthe reservoir within the	2813
boundary of suchthe reservoir or within its protective area, such	2814
the reservoir operator shall plug or recondition suchthe well as	2815
in this section prescribed.	2816

Whenever the operator of a coal mine considers that the use	2817
of a well such as in this section described, if used for injecting	2818
gas into, or storing gas in, or removing gas from, a gas storage	2819
reservoir, would be hazardous to the safety of persons or property	2820
on or in the vicinity of the premises of suchthe coal mine or	2821
suchthe reservoir or well, the coal mine operator may file with	2822
the division objections to the use of suchthe well for such	2823
purposes, and a request that a conference be held as provided in	2824
section 1571.10 of the Revised Code, to discuss and endeavor to	2825
resolve by mutual agreement whether or not suchthe well shall or	2826
shall not be used for such purposes, and whether or not suchthe	2827
well shall be reconditioned, inactivated, or plugged. SuchThe	2828
request shall set forth the mine operator's reasons for such	2829
objections. If no approved agreement is reached in suchthe	2830
conference, the gas storage well inspector shall within ten days	2831
after the termination of suchthe conference, file with the chief	2832
a request that the chief hear and determine the matters considered	2833
at the conference as provided in section 1571.10 of the Revised	2834
Code. Upon conclusion of the hearing, the chief shall find and	2835
determine whether or not the safety of persons or of the property	2836
on or in the vicinity of the premises of suchthe coal mine, or	2837
suchthe reservoir, or suchthe well requires that suchthe well	2838
be reconditioned, inactivated, or plugged, and shall make an order	2839
consistent with suchthat determination, provided that the chief	2840
shall not order a well plugged unless the chief first finds that	2841
there is underground leakage of gas therefrom.	2842

The plugging or reconditioning of each well described in a	2843
notice from a coal mine operator to a reservoir operator as	2844
provided in division (B) of section 1571.03 of the Revised Code,	2845
which must be plugged or reconditioned, shall be completed within	2846
such time as the gas storage well inspector may fix in the case of	2847
each such well. The plugging or reconditioning of each well	2848
described in a notice from a coal mine operator to a reservoir	2849
operator as provided in division (C) of section 1571.03 of the	2850
Revised Code, which must be plugged or reconditioned, shall be	2851
completed by the time suchthe well, by reason of the extension of	2852
the boundary of suchthe coal mine, is within two thousand linear	2853
feet of any part of the boundary of suchthe mine. The plugging or	2854
reconditioning of each well described in a notice from a coal mine	2855
operator to a reservoir operator, as provided in division (D) of	2856
section 1571.03 of the Revised Code, which must be plugged or	2857
reconditioned, shall be completed by the time suchthe well, by	2858
reason of the opening of suchthe new mine, is within two thousand	2859
linear feet of any part of the boundary of suchthe new mine. A	2860
reservoir operator who is required to complete the plugging or	2861
reconditioning of a well within a period of time fixed as in this	2862
division prescribed, may prior to the end of suchthat period of	2863
time, notify the division and the mine operator from whom the	2864
reservoir operator received a notice as provided in division (B),	2865
(C), or (D) of section 1571.03 of the Revised Code, in writing by	2866
registered mail, that the completion of the plugging or	2867
reconditioning of the well referred to in suchthe notice will be	2868
delayed beyond the end of the period of time fixed therefor as in	2869
this section provided, and that the reservoir operator requests	2870
that a conference be held for the purpose of endeavoring to reach	2871
an agreement establishing a date subsequent to the end of such	2872
that period of time, on or before which suchthe reservoir	2873
operator may complete suchthe plugging or reconditioning without	2874
incurring any penalties for failure to do so as provided in this	2875
chapter. If such a reservoir operator sends to such a mine	2876
operator and to the division a notice and request for a conference	2877
as in this division provided, suchthe reservoir operator shall	2878
not incur any penalties for failure to complete the plugging or	2879
reconditioning of suchthe well within the period of time fixed as	2880
in this division prescribed, unless suchthe reservoir operator	2881
fails to complete the plugging or reconditioning of suchthe well	2882
within the period of time fixed by an approved agreement reached	2883
in suchthe conference, or fixed by an order by the chief upon a	2884
hearing held in the matter in the event of failure to reach an	2885
approved agreement in the conference.	2886

Whenever, in compliance with this division, a well is to be	2887
plugged by a reservoir operator, suchthe operator shall give to	2888
the division notice thereof, as many days in advance as will be	2889
necessary for the gas storage well inspector or a deputy mine	2890
inspector to be present at suchthe plugging. SuchThe	2891
notification shall be made on blanks furnished by the division and	2892
shall show the following information:	2893

(1) Name and address of the applicant;

2894

(2) The location of the well identified by section or lot	2895
number, city or village, and township and county;	2896

(3) The well name and number of each well to be plugged.

2897

(C) The operator shall give written notice at the same time	2898
to the owner of the land upon which the well is located, the	2899
owners or agents of the adjoining land, and adjoining well owners	2900
or agents of the operator's intention to abandon the well, and of	2901
the time when the operator will be prepared to commence plugging	2902
and filling the same. In addition to giving such notices, suchthe	2903
reservoir operator shall also at the same time send a copy of such	2904
the notice by registered mail to the coal mine operator, if any,	2905
who sent to the reservoir operator the notice as provided in	2906
division (B), (C), or (D) of section 1571.03 of the Revised Code,	2907
in order that suchthe coal mine operator or the coal mine	2908
operator's designated representative, may attend and observe the	2909
manner in which suchthe plugging of suchthe well is done.	2910

If the reservoir operator plugs suchthe well without an	2911
inspector from the division being present to supervise the	2912
plugging, the reservoir operator shall send to the division and to	2913
the coal mine operator a copy of the report of the plugging of	2914
suchthe well, including in suchthe report:	2915

(1) The date of abandonment;

2916

(2) The name of the owner or operator of suchthe well at the	2917
time of abandonment and the well owner's or operator's post office	2918
address;	2919

(3) The location of suchthe well as to township and county	2920
and the name of the owner of the surface upon which suchthe well	2921
is drilled, with the address thereof;	2922

(4) The date of the permit to drill;

2923

(5) The date when drilled;

2924

(6) Whether suchthe well has been mapped;

2925

(7) The depth of the well;

2926

(8) The depth of the top of the sand to which the well was	2927
drilled;	2928

(9) The depth of each seam of coal drilled through;

2929

(10) A detailed report as to how suchthe well was plugged,	2930
giving in particular the manner in which the coal and various	2931
sands were plugged, and the date of the plugging of suchthe well,	2932
including therein the names of those who witnessed the plugging of	2933
the well.	2934

SuchThe report shall be signed by the operator or the	2935
operator's agent who plugged suchthe well and verified by the	2936
oath of the party so signing. For the purposes of this section, a	2937
deputy mine inspector may take acknowledgements and administer	2938
oaths to the parties signing suchthe report.	2939

Whenever, in compliance with this division, a well is to be	2940
reconditioned by a reservoir operator, suchthe operator shall	2941
give to the division notice thereof as many days before suchthe	2942
reconditioning is begun as will be necessary for the gas storage	2943
well inspector, or a deputy mine inspector, to be present at such	2944
the reconditioning. No well shall be reconditioned if an inspector	2945
of the division is not present unless permission to do so has been	2946
granted by the chief. The reservoir operator, at the time of	2947
giving notice to the division as in this section required, also	2948
shall send a copy of suchthe notice by registered mail to the	2949
coal mine operator, if any, who sent to the reservoir operator the	2950
notice as provided in division (B), (C), or (D) of section 1571.03	2951
of the Revised Code, in order that suchthe coal mine operator or	2952
the coal mine operator's designated representative, may attend and	2953
observe the manner in which suchthe reconditioning of suchthe	2954
well is done.	2955

If the reservoir operator reconditions suchthe well when no	2956
inspector of the division is present to supervise the	2957
reconditioning, the reservoir operator shall make written report	2958
to the division describing the manner in which suchthe	2959
reconditioning was done, and shall send to the coal mine operator	2960
a copy of suchthe report by registered mail.	2961

(D) Wells that are required by this section to be plugged	2962
shall be plugged in the manner specified in sections 1509.13 to	2963
1509.191509.17 of the Revised Code, and the operator shall give	2964
the notifications and reports required by divisions (B) and (C) of	2965
this section. No such well shall be plugged or abandoned without	2966
the written approval of the division, and no such well shall be	2967
mudded, plugged, or abandoned without the gas storage well	2968
inspector or a deputy mine inspector present unless written	2969
permission has been granted by the chief or the gas storage well	2970
inspector. If such a well has been plugged prior to the time	2971
plugging thereof is required by this section, and, on the basis of	2972
the data, information, and other evidence available it is	2973
determined that suchthe plugging was done in the manner required	2974
by this section, or was done in accordance with statutes	2975
prescribing the manner of plugging wells in effect at the time	2976
suchthe plugging was done, and that there is no evidence of	2977
leakage of gas from suchthe well either at or below the surface,	2978
and that suchthe plugging is sufficiently effective to prevent	2979
the leakage of gas from suchthe well, the obligations imposed	2980
upon suchthe reservoir operator by this section as to plugging	2981
the well, shall be considered fully satisfied. The operator of a	2982
coal mine any part of the boundary of which is, or within nine	2983
months is expected or intended to be, within two thousand linear	2984
feet of suchthe well, may at any time raise a question as to	2985
whether the plugging of suchthe well is sufficiently effective to	2986
prevent the leakage of gas therefrom, and the issue so made shall	2987
be determined by a conference or hearing as provided in section	2988
1571.10 of the Revised Code.	2989

(E) Wells that are to be reconditioned as required by this	2990
section shall be, or shall be made to be:	2991

(1) Cased in accordance with the statutes of this state in	2992
effect at the time suchthe wells were drilled, with suchthe	2993
casing being, or made to be, sufficiently effective in that there	2994
is no evidence of any leakage of gas therefrom;	2995

(2) Equipped with a producing string and well head composed	2996
of new pipe, or pipe as good as new, and fittings designed to	2997
operate with safety and to contain the stored gas at maximum	2998
pressures contemplated.	2999

When a well that is to be reconditioned as required by this	3000
section, has been reconditioned for use in the operation of such	3001
the reservoir prior to the time prescribed in this section, and on	3002
the basis of the data, information, and other evidence available	3003
it is determined that at the time suchthe well was so	3004
reconditioned the requirements prescribed in this division were	3005
met, and that there is no evidence of underground leakage of gas	3006
from suchthe well, and that suchthe reconditioning is	3007
sufficiently effective to prevent underground leakage from the	3008
well, the obligations imposed upon suchthe reservoir operator by	3009
this section as to reconditioning suchthe well shall be	3010
considered fully satisfied. Any operator of a coal mine any part	3011
of the boundary of which is, or within nine months is expected or	3012
intended to be, within two thousand linear feet of suchthe well,	3013
may at any time raise a question as to whether the reconditioning	3014
of suchthe well is sufficiently effective to prevent underground	3015
leakage of gas therefrom, and the issue so made shall be	3016
determined by a conference or hearing as provided in section	3017
1571.10 of the Revised Code.	3018

If the gas storage well inspector at any time finds that a	3019
well that is drilled through the horizon of a coal mine and into	3020
or through the storage stratum or strata of a reservoir within the	3021
boundary of suchthe reservoir or within its protective area, is	3022
located within the boundary of suchthe coal mine or within two	3023
thousand linear feet of suchthe mine boundary, and was drilled	3024
prior to the time the statutes of this state required that wells	3025
be cased, and that suchthe well fails to meet the casing and	3026
equipping requirements prescribed in this division, the gas	3027
storage well inspector shall promptly notify the operator of such	3028
the reservoir thereof in writing, and suchthe reservoir operator	3029
upon receipt of suchthe notice, shall promptly recondition such	3030
the well in the manner prescribed in this division for	3031
reconditioning wells, unless, in a conference or hearing as	3032
provided in section 1571.10 of the Revised Code, a different	3033
course of action is agreed upon or ordered.	3034

(F)(1) When a well within the boundary of a gas storage	3035
reservoir or within suchthe reservoir's protective area	3036
penetrates the storage stratum or strata of suchthe reservoir,	3037
but does not penetrate the coal seam within the boundary of a coal	3038
mine, the gas storage well inspector may, upon application of the	3039
operator of suchthe storage reservoir, exempt suchthe well from	3040
the requirements of this section. Either party affected by such	3041
the action of the gas storage well inspector may request a	3042
conference and hearing with respect to suchthe exemption.	3043

(2) When a well located within the boundary of a storage	3044
reservoir or a reservoir's protective area is a producing well in	3045
a stratum above or below the storage stratum, the obligations	3046
imposed by this section shall not begin until suchthe well ceases	3047
to be a producing well.	3048

(G) When retreat mining reaches a point in a coal mine when	3049
the operator of suchthe mine expects that within ninety days	3050
retreat work will be at the location of a pillar surrounding an	3051
active storage reservoir well, the operator of suchthe mine shall	3052
promptly send by registered mail notice to that effect to the	3053
operator of suchthe reservoir. Thereupon the operators may by	3054
agreement determine whether it is necessary or advisable to	3055
temporarily inactivate the well. If inactivated, the well shall	3056
not be reactivated until a reasonable period of time has elapsed,	3057
such period of time to be determined by agreement by the	3058
operators. In the event that the parties cannot agree upon either	3059
of the foregoing matters, suchthe question shall be submitted to	3060
the gas storage well inspector for a conference in accordance with	3061
section 1571.10 of the Revised Code.	3062

(H)(1) The provisions of this section that require the	3063
plugging or reconditioning of wells shall not apply to such wells	3064
as are used to inject gas into, store gas in, or remove gas from,	3065
a gas storage reservoir when the sole purpose of suchthe	3066
injection, storage, or removal, is testing. The operator of a gas	3067
storage reservoir who injects gas into, stores gas in, or removes	3068
gas from, a reservoir for the sole purpose of testing, shall be	3069
subject to all other provisions of this chapter that are	3070
applicable to operators of reservoirs.	3071

(2) If the injection of gas into, or storage of gas in, a gas	3072
storage reservoir any part of which, or of the protective area of	3073
which, is within the boundary of a coal mine, is begun after	3074
September 9, 1957, and if suchthe injection or storage of gas is	3075
for the sole purpose of testing, the operator of suchthe	3076
reservoir shall send by registered mail to the operator of such	3077
the coal mine and to the division at least sixty days' notice of	3078
the date upon which suchthe testing will be begun.	3079

If at any time within the period of time during which testing	3080
of a reservoir is in progress, any part of suchthe reservoir or	3081
of its protective area comes within any part of the boundary of a	3082
coal mine, the operator of suchthe reservoir shall promptly send	3083
notice to that effect by registered mail to the operator of such	3084
the mine and to the division.	3085

(3) Any coal mine operator who receives a notice as provided	3086
for in division (H)(2) of this section, may within thirty days of	3087
the receipt thereof, file with the division objections to suchthe	3088
testing. The gas storage well inspector also may, within the time	3089
within which a coal mine operator may file suchan objection,	3090
place in the files of the division objections to suchthe testing.	3091
The reservoir operator shall comply throughout the period of the	3092
testing operations with all conditions and requirements agreed	3093
upon and approved in the conference on such objections conducted	3094
as provided in section 1571.10 of the Revised Code, or in an order	3095
made by the chief following a hearing in the matter as provided in	3096
section 1571.10 of the Revised Code. If in complying with suchthe	3097
agreement or order either the reservoir operator or the coal mine	3098
operator encounters or discovers conditions that were not known to	3099
exist at the time of suchthe conference or hearing and that	3100
materially affect suchthe agreement or order, or the ability of	3101
the reservoir operator to comply therewith, either operator may	3102
apply for a rehearing or modification of the order.	3103

(I) In addition to complying with all other provisions of	3104
this chapter and any lawful orders issued thereunder, the operator	3105
of each gas storage reservoir shall keep all wells drilled into or	3106
through the storage stratum or strata within the boundary of the	3107
operator's reservoir or within the reservoir's protective area in	3108
such condition, and operate the same in such manner, as to prevent	3109
the escape of gas therefrom into any coal mine, and shall operate	3110
and maintain suchthe storage reservoir and its facilities in such	3111
manner and at such pressures as will prevent gas from escaping	3112
from suchthe reservoir or its facilities into any coal mine.	3113

Sec. 5749.06.  Each severer liable for the tax imposed by	3114
section 5749.02 of the Revised Code shall make and file returns	3115
with the tax commissioner in the prescribed form and as of the	3116
prescribed times, computing and reflecting therein the tax as	3117
required by this chapter and the oil and gas regulatory cost	3118
recovery assessment imposed by section 1509.50 of the Revised	3119
Code.	3120

The returns shall be filed for every quarterly period, which	3121
periods shall end on the thirty-first of March, the thirtieth day	3122
of June, the thirtieth day of September, and the thirty-first day	3123
of December of each year, as required by this section, unless a	3124
different return period is prescribed for a taxpayer by the tax	3125
commissioner.	3126

A separate return shall be filed for each calendar quarterly	3127
period, or other period, or any part thereof, during which the	3128
severer holds a license as provided by section 5749.04 of the	3129
Revised Code, or is required to hold suchthe license, and such	3130
the return shall be filed within forty-five days after the last	3131
day of each such calendar month, or other period, or any part	3132
thereof, for which suchthe return is required and shall include	3133
remittance payable to the treasurer of state of the amount of tax	3134
due. All such returns shall contain such information as the	3135
commissioner may require to fairly administer the tax.	3136

All returns shall be signed by the severer, shall contain the	3137
full and complete information requested, and shall be made under	3138
penalty of perjury.	3139

If the commissioner believes that quarterly payments of tax	3140
would result in a delay whichthat might jeopardize the collection	3141
of such tax payments, the commissioner may order that such	3142
payments be made weekly, or more frequently if necessary, such	3143
payments to be made not later than seven days following the close	3144
of the period for which the jeopardy payment is required. Such an	3145
order shall be delivered to the taxpayer personally or by	3146
certified mail and shall remain in effect until the commissioner	3147
notifies the taxpayer to the contrary.	3148

Upon good cause the commissioner may extend the period for	3149
filing any notice or return required to be filed under this	3150
section, and may remit all or a part of penalties that may become	3151
due under this chapter.	3152

Any tax not paid by the day the tax is due shall bear	3153
interest computed at the rate per annum prescribed by section	3154
5703.47 of the Revised Code on that amount of tax due from the day	3155
that suchthe amount was originally required to be paid to the day	3156
of actual payment or to the day an assessment was issued under	3157
section 5749.07 or 5749.10 of the Revised Code, whichever occurs	3158
first.	3159

The severer shall make all payments payable to the treasurer	3160
of state. AllExcept for the amounts received from the oil and gas	3161
regulatory cost recovery assessment imposed by section 1509.50 of	3162
the Revised Code, all amounts that the tax commissioner receives	3163
under this section shall be deemed to be revenue from taxes	3164
imposed under this chapter. The tax commissioner shall immediately	3165
forward to the treasurer of state all amounts received under this	3166
section.	3167

Section 2. That existing sections 1509.01, 1509.02, 1509.03,	3168
1509.04, 1509.05, 1509.06, 1509.07, 1509.071, 1509.072, 1509.10,	3169
1509.11, 1509.12, 1509.13, 1509.14, 1509.17, 1509.18, 1509.20,	3170
1509.21, 1509.22, 1509.221, 1509.222, 1509.225, 1509.226, 1509.23,	3171
1509.24, 1509.27, 1509.31, 1509.35, 1509.36, 1565.07, 1565.13,	3172
1571.05, and 5749.06 of the Revised Code are hereby repealed.	3173

Section 3.  It is the intent of the General Assembly that the	3174
gas storage well program that is administered by the Division of	3175
Mineral Resources Management in the Department of Natural	3176
Resources and that includes regulatory oversight of gas storage	3177
wells and related facilities and site inspections of gas storage	3178
wells and related facilities will be funded by reasonable fees	3179
assessed on owners of gas storage wells.	3180