As Reported by the House Agriculture and Natural Resources Committee

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 

Representatives Domenick, Boose, Hite, Balderson 

---

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, 5703.052, 5703.21,

7

5749.01, 5749.03, 5749.06, 5749.07, 5749.08,

8

5749.10, 5749.12, 5749.13, 5749.14, 5749.15, and

9

5749.17 and to enact sections 1509.021, 1509.041,

10

1509.062, 1509.073, 1509.181, 1509.19, 1509.34,

11

1509.50, 1509.60, 1509.61, 1571.18, and 4929.041

12

of the Revised Code to revise the Oil and Gas Law.

13

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

Section 1.  That sections 1509.01, 1509.02, 1509.03, 1509.04,	14
1509.05, 1509.06, 1509.07, 1509.071, 1509.072, 1509.10, 1509.11,	15
1509.12, 1509.13, 1509.14, 1509.17, 1509.18, 1509.20, 1509.21,	16
1509.22, 1509.221, 1509.222, 1509.225, 1509.226, 1509.23, 1509.24,	17
1509.27, 1509.31, 1509.35, 1509.36, 1565.07, 1565.13, 1571.05,	18
5703.052, 5703.21, 5749.01, 5749.03, 5749.06, 5749.07, 5749.08,	19
5749.10, 5749.12, 5749.13, 5749.14, 5749.15, and 5749.17 be	20
amended and sections 1509.021, 1509.041, 1509.062, 1509.073,	21
1509.181, 1509.19, 1509.34, 1509.50, 1509.60, 1509.61, 1571.18,	22
and 4929.041 of the Revised Code be enacted to read as follows:	23

Sec. 1509.01.  As used in this chapter:

24

(A) "Well" means any borehole, whether drilled or bored,	25
within the state for production, extraction, or injection of any	26
gas or liquid mineral, excluding potable water to be used as such,	27
but including natural or artificial brines and oil field waters.	28

(B) "Oil" means crude petroleum oil and all other	29
hydrocarbons, regardless of gravity, that are produced in liquid	30
form by ordinary production methods, but does not include	31
hydrocarbons that were originally in a gaseous phase in the	32
reservoir.	33

(C) "Gas" means all natural gas and all other fluid	34
hydrocarbons that are not oil, including condensate.	35

(D) "Condensate" means liquid hydrocarbons that were	36
originally in the gaseous phase in the reservoir.	37

(E) "Pool" means an underground reservoir containing a common	38
accumulation of oil or gas, or both, but does not include a gas	39
storage reservoir. Each zone of a geological structure that is	40
completely separated from any other zone in the same structure may	41
contain a separate pool.	42

(F) "Field" means the general area underlaid by one or more	43
pools.	44

(G) "Drilling unit" means the minimum acreage on which one	45
well may be drilled, but does not apply to a well for injecting	46
gas into or removing gas from a gas storage reservoir.	47

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

48

(1) Physical waste, as that term generally is understood in	49
the oil and gas industry;	50

(2) Inefficient, excessive, or improper use, or the	51
unnecessary dissipation, of reservoir energy;	52

(3) Inefficient storing of oil or gas;

53

(4) Locating, drilling, equipping, operating, or producing an	54
oil or gas well in a manner that reduces or tends to reduce the	55
quantity of oil or gas ultimately recoverable under prudent and	56
proper operations from the pool into which it is drilled or that	57
causes or tends to cause unnecessary or excessive surface loss or	58
destruction of oil or gas;	59

(5) Other underground or surface waste in the production or	60
storage of oil, gas, or condensate, however caused.	61

(I) "Correlative rights" means the reasonable opportunity to	62
every person entitled thereto to recover and receive the oil and	63
gas in and under the person's tract or tracts, or the equivalent	64
thereof, without having to drill unnecessary wells or incur other	65
unnecessary expense.	66

(J) "Tract" means a single, individually taxed parcel of land	67
appearing on the tax list.	68

(K) "Owner," unless referring to a mine, means the person who	69
has the right to drill on a tract or drilling unit, to drill into	70
and produce from a pool, and to appropriate the oil or gas	71
produced therefrom either for the person or for others, except	72
that a person ceases to be an owner with respect to a well when	73
the well has been plugged in accordance with applicable rules	74
adopted and orders issued under this chapter. "Owner" does not	75
include a person who obtains a lease of the mineral rights for oil	76
and gas on a parcel of land if the person does not attempt to	77
produce or produce oil or gas from a well or obtain a permit under	78
this chapter for a well or if the entire interest of a well is	79
transferred to the person in accordance with division (B) of	80
section 1509.31 of the Revised Code.	81

(L) "Royalty interest" means the fee holder's share in the	82
production from a well.	83

(M) "Discovery well" means the first well capable of	84
producing oil or gas in commercial quantities from a pool.	85

(N) "Prepared clay" means a clay that is plastic and is	86
thoroughly saturated with fresh water to a weight and consistency	87
great enough to settle through saltwater in the well in which it	88
is to be used, except as otherwise approved by the chief of the	89
division of mineral resources management.	90

(O) "Rock sediment" means the combined cutting and residue	91
from drilling sedimentary rocks and formation.	92

(P) "Excavations and workings," "mine," and "pillar" have the	93
same meanings as in section 1561.01 of the Revised Code.	94

(Q) "Coal bearing township" means a township designated as	95
such by the chief under section 1561.06 of the Revised Code.	96

(R) "Gas storage reservoir" means a continuous area of a	97
subterranean porous sand or rock stratum or strata into which gas	98
is or may be injected for the purpose of storing it therein and	99
removing it therefrom and includes a gas storage reservoir as	100
defined in section 1571.01 of the Revised Code.	101

(S) "Safe Drinking Water Act" means the "Safe Drinking Water	102
Act," 88 Stat. 1661 (1974), 42 U.S.C.A. 300(f), as amended by the	103
"Safe Drinking Water Amendments of 1977," 91 Stat. 1393, 42	104
U.S.C.A. 300(f), the "Safe Drinking Water Act Amendments of 1986,"	105
100 Stat. 642, 42 U.S.C.A. 300(f), and the "Safe Drinking Water	106
Act Amendments of 1996," 110 Stat. 1613, 42 U.S.C.A. 300(f), and	107
regulations adopted under those acts.	108

(T) "Person" includes any political subdivision, department,	109
agency, or instrumentality of this state; the United States and	110
any department, agency, or instrumentality thereof; and any legal	111
entity defined as a person under section 1.59 of the Revised Code.	112

(U) "Brine" means all saline geological formation water	113
resulting from, obtained from, or produced in connection with the	114
exploration, drilling, orwell stimulation, production of oil or	115
gas, or plugging of a well.	116

(V) "Waters of the state" means all streams, lakes, ponds,	117
marshes, watercourses, waterways, springs, irrigation systems,	118
drainage systems, and other bodies of water, surface or	119
underground, natural or artificial, that are situated wholly or	120
partially within this state or within its jurisdiction, except	121
those private waters that do not combine or effect a junction with	122
natural surface or underground waters.	123

(W) "Exempt Mississippian well" means a well that meets all	124
of the following criteria:	125

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

126

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

127

(3) Was completed in a reservoir no deeper than the	128
Mississippian Big Injun sandstone in areas underlain by	129
Pennsylvanian or Permian stratigraphy, or the Mississippian berea	130
Berea sandstone in areas directly underlain by Permian	131
stratigraphy;	132

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

133

(X) "Exempt domestic well" means a well that meets all of the	134
following criteria:	135

(1) Is owned by the owner of the surface estate of the tract	136
on which the well is located;	137

(2) Is used primarily to provide gas for the owner's domestic	138
use;	139

(3) Is located more than two hundred feet horizontal distance	140
from any inhabited private dwelling house other than an inhabited	141
private dwelling house located on the tract on which the well is	142
located;	143

(4) Is located more than two hundred feet horizontal distance	144
from any public building that may be used as a place of resort,	145
assembly, education, entertainment, lodging, trade, manufacture,	146
repair, storage, traffic, or occupancy by the public.	147

(Y) "Urbanized area" means an area where a well or production	148
facilities of a well are located within a municipal corporation or	149
within a township that has an unincorporated population of more	150
than five thousand in the most recent federal decennial census	151
prior to the issuance of the permit for the well or production	152
facilities.	153

(Z) "Well stimulation" or "stimulation of a well" means the	154
process of enhancing well productivity, including hydraulic	155
fracturing operations.	156

(AA) "Production operation" means site preparation, access	157
roads, drilling, well completion, well stimulation, well	158
operation, site reclamation, and well plugging. "Production	159
operation" also includes all of the following:	160

(1) The piping and equipment used for the production and	161
preparation of hydrocarbon gas or liquids for transportation or	162
delivery;	163

(2) The processes of extraction and recovery, lifting,	164
stabilization, treatment, separation, production processing,	165
storage, and measurement of hydrocarbon gas and liquids;	166

(3) The processes associated with production compression, gas	167
lift, gas injection, and fuel gas supply.	168

(BB) "Annular overpressurization" means the accumulation of	169
fluids within an annulus with sufficient pressure to allow	170
migration of annular fluids into underground sources of drinking	171
water.	172

(CC) "Idle and orphaned well" means a well for which a bond	173
has been forfeited or an abandoned well for which no money is	174
available to plug the well in accordance with this chapter and	175
rules adopted under it.	176

(DD) "Temporarily inactive well" means a well that has been	177
granted temporary inactive status under section 1509.062 of the	178
Revised Code.	179

(EE) "Material and substantial violation" means any of the	180
following:	181

(1) Failure to obtain a permit to drill, reopen, convert,	182
plugback, or plug a well under this chapter;	183

(2) Failure to obtain or maintain insurance coverage that is	184
required under this chapter;	185

(3) Failure to obtain or maintain a surety bond that is	186
required under this chapter;	187

(4) Failure to plug an abandoned well or idle and orphaned	188
well unless the well has been granted temporary inactive status	189
under section 1509.062 of the Revised Code or the chief has	190
approved another option concerning the abandoned well or idle and	191
orphaned well;	192

(5) Failure to restore a disturbed land surface as required	193
by section 1509.072 of the Revised Code;	194

(6) Failure to reimburse the oil and gas fund pursuant to a	195
final order issued under section 1509.071 of the Revised Code;	196

(7) Failure to comply with a final nonappealable order of the	197
chief issued under section 1509.04 of the Revised Code.	198

(FF) "Severer" has the same meaning as in section 5749.01 of	199
the Revised Code.	200

Sec. 1509.02.  There is hereby created in the department of	201
natural resources the division of mineral resources management,	202
which shall be administered by the chief of the division of	203
mineral resources management. The division has sole and exclusive	204
authority to regulate the permitting, location, and spacing of oil	205
and gas wells and production operations within the state. The	206
regulation of oil and gas activities is a matter of general	207
statewide interest that requires uniform statewide regulation, and	208
this chapter and rules adopted under it constitute a comprehensive	209
plan with respect to all aspects of the locating, drilling, and	210
operating of oil and gas wells within this state, including site	211
restoration and disposal of wastes from those wells. Nothing in	212
this section affects the authority granted to the director of	213
transportation and local authorities in section 723.01 or 4513.34	214
of the Revised Code, provided that the authority granted under	215
those sections shall not be exercised in a manner that	216
discriminates against, unfairly impedes, or obstructs oil and gas	217
activities and operations regulated under this chapter.	218

The chief shall not hold any other public office, nor shall	219
the chief be engaged in any occupation or business that might	220
interfere with or be inconsistent with the duties as chief.	221

All moneys collected by the chief pursuant to sections	222
1509.06, 1509.061, 1509.062, 1509.071, 1509.13, 1509.22, and	223
1509.221, 1509.222, 1509.34, and 1509.50, ninety per cent of	224
moneys received by the treasurer of state from the tax levied in	225
divisions (A)(5) and (6) of section 5749.02, all civil penalties	226
paid under section 1509.33, and, notwithstanding any section of	227
the Revised Code relating to the distribution or crediting of	228
fines for violations of the Revised Code, all fines imposed under	229
divisions (A) and (B) of section 1509.99 of the Revised Code and	230
fines imposed under divisions (C) and (D) of section 1509.99 of	231
the Revised Code for all violations prosecuted by the attorney	232
general and for violations prosecuted by prosecuting attorneys	233
that do not involve the transportation of brine by vehicle shall	234
be deposited into the state treasury to the credit of the oil and	235
gas well fund, which is hereby created. Fines imposed under	236
divisions (C) and (D) of section 1509.99 of the Revised Code for	237
violations prosecuted by prosecuting attorneys that involve the	238
transportation of brine by vehicle and penalties associated with a	239
compliance agreement entered into pursuant to this chapter shall	240
be paid to the county treasury of the county where the violation	241
occurred.	242

The fund shall be used solely and exclusively for the	243
purposes enumerated in division (B) of section 1509.071 of the	244
Revised Code, for the expenses of the division associated with the	245
administration of the "Natural Gas Policy Act of 1978," 92 Stat.	246
3358, 15 U.S.C. 3301, and for the division's other functionsthis	247
chapter and Chapter 1571. of the Revised Code and rules adopted	248
under them, and for expenses that are critical and necessary for	249
the protection of human health and safety and the environment	250
related to oil and gas production in this state. The expenses of	251
the division in excess of the moneys available in the fund shall	252
be paid from general revenue fund appropriations to the	253
department.	254

Sec. 1509.021. On and after the effective date of this	255
section, all of the following apply:	256

(A) The surface location of a new well or a tank battery of a	257
well shall not be within one hundred fifty feet of an occupied	258
dwelling that is located in an urbanized area unless the owner of	259
the land on which the occupied dwelling is located consents in	260
writing to the surface location of the well or tank battery of a	261
well less than one hundred fifty feet from the occupied dwelling	262
and the chief of the division of mineral resources management	263
approves the written consent of that owner. However, the chief	264
shall not approve the written consent of such an owner when the	265
surface location of a new well or a tank battery of a well will be	266
within one hundred feet of an occupied dwelling that is located in	267
an urbanized area.	268

(B) The surface location of a new well shall not be within	269
one hundred fifty feet from the property line of a parcel of land	270
that is not in the drilling unit of the well if the parcel of land	271
is located in an urbanized area and directional drilling will be	272
used to drill the new well unless the owner of the parcel of land	273
consents in writing to the surface location of the well less than	274
one hundred fifty feet from the property line of the parcel of	275
land and the chief approves the written consent of that owner.	276
However, the chief shall not approve the written consent of such	277
an owner when the surface location of a new well will be less than	278
one hundred feet from the property line of the owner's parcel of	279
land that is not in the drilling unit of the well if the parcel of	280
land is located in an urbanized area and directional drilling will	281
be used.	282

(C) The surface location of a new well shall not be within	283
two hundred feet of an occupied dwelling that is located in an	284
urbanized area and that is located on land that has become part of	285
the drilling unit of the well pursuant to a mandatory pooling	286
order issued under section 1509.27 of the Revised Code unless the	287
owner of the land on which the occupied dwelling is located	288
consents in writing to the surface location of the well at a	289
distance that is less than two hundred feet from the occupied	290
dwelling. However, if the owner of the land on which the occupied	291
dwelling is located provides such written consent, the surface	292
location of the well shall not be within one hundred feet of the	293
occupied dwelling.	294

If an applicant cannot identify an owner of land or if an	295
owner of land is not responsive to attempts by the applicant to	296
contact the owner, the applicant may submit an affidavit to the	297
chief attesting to such an unidentifiable owner or to such	298
unresponsiveness of an owner and attempts by the applicant to	299
contact the owner and include a written request to reduce the	300
distance of the location of the well from the occupied dwelling to	301
less than two hundred feet. If the chief receives such an	302
affidavit and written request, the chief shall reduce the distance	303
of the location of the well from the occupied dwelling to a	304
distance of not less than one hundred feet.	305

(D) Except as otherwise provided in division (L) of this	306
section, the surface location of a new well shall not be within	307
one hundred fifty feet of the property line of a parcel of land	308
that is located in an urbanized area and that has become part of	309
the drilling unit of the well pursuant to a mandatory pooling	310
order issued under section 1509.27 of the Revised Code unless the	311
owner of the land consents in writing to the surface location of	312
the well at a distance that is less than one hundred fifty feet	313
from the owner's property line. However, if the owner of the land	314
provides such written consent, the surface location of the well	315
shall not be within seventy-five feet of the property line of the	316
owner's parcel of land.	317

If an applicant cannot identify an owner of land or if an	318
owner of land is not responsive to attempts by the applicant to	319
contact the owner, the applicant may submit an affidavit to the	320
chief attesting to such an unidentifiable owner or to such	321
unresponsiveness of an owner and attempts by the applicant to	322
contact the owner and include a written request to reduce the	323
distance of the location of the well from the property line of the	324
owner's parcel of land to less than one hundred fifty feet. If the	325
chief receives such an affidavit and written request, the chief	326
shall reduce the distance of the location of the well from the	327
property line to a distance of not less than seventy-five feet.	328

(E) The surface location of a new tank battery of a well	329
shall not be within one hundred fifty feet of an occupied dwelling	330
that is located in an urbanized area and that is located on land	331
that has become part of the drilling unit of the well pursuant to	332
a mandatory pooling order issued under section 1509.27 of the	333
Revised Code unless the owner of the land on which the occupied	334
dwelling is located consents in writing to the location of the	335
tank battery at a distance that is less than one hundred fifty	336
feet from the occupied dwelling. However, if the owner of the land	337
on which the occupied dwelling is located provides such written	338
consent, the location of the tank battery shall not be within one	339
hundred feet of the occupied dwelling.	340

If an applicant cannot identify an owner of land or if an	341
owner of land is not responsive to attempts by the applicant to	342
contact the owner, the applicant may submit an affidavit to the	343
chief attesting to such an unidentifiable owner or to such	344
unresponsiveness of an owner and attempts by the applicant to	345
contact the owner and include a written request to reduce the	346
distance of the location of the tank battery from the occupied	347
dwelling to less than one hundred fifty feet. If the chief	348
receives such an affidavit and written request, the chief shall	349
reduce the distance of the location of the tank battery from the	350
occupied dwelling to a distance of not less than one hundred feet.	351

(F) Except as otherwise provided in division (L) of this	352
section, the location of a new tank battery of a well shall not be	353
within seventy-five feet of the property line of a parcel of land	354
that is located in an urbanized area and that has become part of	355
the drilling unit of the well pursuant to a mandatory pooling	356
order issued under section 1509.27 of the Revised Code unless the	357
owner of the land consents in writing to the location of the tank	358
battery at a distance that is less than seventy-five feet from the	359
owner's property line. However, if the owner of the land provides	360
such written consent, the location of the tank battery shall not	361
be within the property line of the owner's parcel of land.	362

If an applicant cannot identify an owner of land or if an	363
owner of land is not responsive to attempts by the applicant to	364
contact the owner, the applicant may submit an affidavit to the	365
chief attesting to such an unidentifiable owner or to such	366
unresponsiveness of an owner and attempts by the applicant to	367
contact the owner and include a written request to reduce the	368
distance of the location of the tank battery from the property	369
line of the owner's parcel of land to less than seventy-five feet.	370
If the chief receives such an affidavit and written request, the	371
chief shall reduce the distance of the location of the tank	372
battery from the property line, provided that the tank battery	373
shall not be within the property line of the owner's parcel of	374
land.	375

(G) For purposes of divisions (C) to (F) of this section,	376
written consent of an owner of land may be provided by any of the	377
following:	378

(1) A copy of an original lease agreement as recorded in the	379
office of the county recorder of the county in which the occupied	380
dwelling or property is located that expressly provides for the	381
reduction of the distance of the location of a well or a tank	382
battery, as applicable, from an occupied dwelling or a property	383
line;	384

(2) A copy of a deed severing the oil or gas mineral rights,	385
as applicable, from the owner's parcel of land as recorded in the	386
office of the county recorder of the county in which the property	387
is located that expressly provides for the reduction of the	388
distance of the location of a well or a tank battery, as	389
applicable, from an occupied dwelling or a property line;	390

(3) A written statement that consents to the proposed	391
location of a well or a tank battery, as applicable, and that is	392
approved by the chief. For purposes of division (G)(3) of this	393
section, an applicant shall submit a copy of a written statement	394
to the chief.	395

(H) For areas that are not urbanized areas, the surface	396
location of a new well shall not be within one hundred feet of an	397
occupied private dwelling or of a public building that may be used	398
as a place of assembly, education, entertainment, lodging, trade,	399
manufacture, repair, storage, or occupancy by the public. This	400
division does not apply to a building or other structure that is	401
incidental to agricultural use of the land on which the building	402
or other structure is located unless the building or other	403
structure is used as an occupied private dwelling or for retail	404
trade.	405

(I) The surface location of a new well shall not be within	406
one hundred feet of any other well. However, an applicant may	407
submit a written statement to request the chief to authorize a new	408
well to be located at a distance that is less than one hundred	409
feet from another well. If the chief receives such a written	410
statement, the chief may authorize a new well to be located within	411
one hundred feet of another well if the chief determines that the	412
applicant satisfactorily has demonstrated that the location of the	413
new well at a distance that is less than one hundred feet from	414
another well is necessary to reduce impacts to the owner of the	415
land on which the well is to be located or to the surface of the	416
land on which the well is to be located.	417

(J) For areas that are not urbanized areas, the location of a	418
new tank battery of a well shall not be within one hundred feet of	419
an existing inhabited structure.	420

(K) The location of a new tank battery of a well shall not be	421
within fifty feet of any other well.	422

(L) The surface location of a new well or a new tank battery	423
of a well shall not be within fifty feet of a railroad track or of	424
the traveled portion of a public street, road, or highway. This	425
division applies regardless of whether the public street, road, or	426
highway has become part of the drilling unit of the well pursuant	427
to a mandatory pooling order issued under section 1509.27 of the	428
Revised Code.	429

(M) A new oil tank shall not be within three feet of another	430
oil tank.	431

(N) The surface location of a mechanical separator shall not	432
be within any of the following:	433

(1) Fifty feet of a well;

434

(2) Ten feet of an oil tank;

435

(3) One hundred feet of an existing inhabited structure.

436

(O) A vessel that is equipped in such a manner that the	437
contents of the vessel may be heated shall not be within any of	438
the following:	439

(1) Fifty feet of an oil production tank;

440

(2) Fifty feet of a well;

441

(3) One hundred feet of an existing inhabited structure;

442

(4) If the contents of the vessel are heated by a direct fire	443
heater, fifty feet of a mechanical separator.	444

Sec. 1509.03. (A) The chief of the division of mineral	445
resources management shall adopt, rescind, and amend, in	446
accordance with Chapter 119. of the Revised Code, rules for the	447
administration, implementation, and enforcement of this chapter.	448
The rules shall include an identification of the subjects that the	449
chief shall address when attaching terms and conditions to a	450
permit with respect to a well and production facilities of a well	451
that are located within an urbanized area. The subjects shall	452
include all of the following:	453

(A)(1) Safety concerning the drilling or operation of a well;

454

(B)(2) Protection of the public and private water supply;

455

(C) Location of surface facilities of a well;

456

(D)(3) Fencing and screening of surface facilities of a well;

457

(E)(4) Containment and disposal of drilling and production	458
wastes;	459

(F)(5) Construction of access roads for purposes of the	460
drilling and operation of a well;	461

(6) Noise mitigation for purposes of the drilling of a well	462
and the operation of a well, excluding safety and maintenance	463
operations.	464

No person shall violate any rule of the chief adopted under	465
this chapter.	466

(B) Any order issuing, denying, or modifying a permit or	467
notices required to be made by the chief pursuant to this chapter	468
shall be made in compliance with Chapter 119. of the Revised Code,	469
except that personal service may be used in lieu of service by	470
mail. Every order issuing, denying, or modifying a permit under	471
this chapter and described as such shall be considered an	472
adjudication order for purposes of Chapter 119. of the Revised	473
Code.	474

Where notice to the owners is required by this chapter, the	475
notice shall be given as prescribed by a rule adopted by the chief	476
to govern the giving of notices. SuchThe rule shall provide for	477
notice by publication except in those cases where other types of	478
notice are necessary in order to meet the requirements of the law.	479

(C) The chief or the chief's authorized representative may at	480
any time enter upon lands, public or private, for the purpose of	481
administration or enforcement of this chapter, the rules adopted	482
or orders made thereunder, or terms or conditions of permits or	483
registration certificates issued thereunder and may examine and	484
copy records pertaining to the drilling, conversion, or operation	485
of a well for injection of fluids and logs required by division	486
(C) of section 1509.223 of the Revised Code. No person shall	487
prevent or hinder the chief or the chief's authorized	488
representative in the performance of official duties. If entry is	489
prevented or hindered, the chief or the chief's authorized	490
representative may apply for, and the court of common pleas may	491
issue, an appropriate inspection warrant necessary to achieve the	492
purposes of this chapter within the court's territorial	493
jurisdiction.	494

(D) The chief may issue orders to enforce this chapter, rules	495
adopted thereunder, and terms or conditions of permits issued	496
thereunder. Any such order shall be considered an adjudication	497
order for the purposes of Chapter 119. of the Revised Code. No	498
person shall violate any order of the chief issued under this	499
chapter. No person shall violate a term or condition of a permit	500
or registration certificate issued under this chapter.	501

(E) Orders of the chief denying, suspending, or revoking a	502
registration certificate; approving or denying approval of an	503
application for revision of a registered transporter's plan for	504
disposal; or to implement, administer, or enforce division (A) of	505
section 1509.224 and sections 1509.22, 1509.222, 1509.223,	506
1509.225, and 1509.226 of the Revised Code pertaining to the	507
transportation of brine by vehicle and the disposal of brine so	508
transported are not adjudication orders for purposes of Chapter	509
119. of the Revised Code. The chief shall issue such orders under	510
division (A) or (B) of section 1509.224 of the Revised Code, as	511
appropriate.	512

As used in this section, "urbanized area" means an area where	513
a well or production facilities of a well are located within a	514
municipal corporation or within a township that has an	515
unincorporated population of more than five thousand in the most	516
recent federal decennial census prior to the issuance of the	517
permit for the well or production facilities.	518

Sec. 1509.04. (A) The chief of the division of mineral	519
resources management, or the chief's authorized representatives,	520
shall enforce this chapter and the rules, terms and conditions of	521
permits and registration certificates, and orders adopted or	522
issued pursuant thereto, except that any "peace officer," as	523
defined in section 2935.01 of the Revised Code, may arrest for	524
violations of this chapter involving transportation of brine by	525
vehicle. The enforcement authority of the chief includes the	526
authority to enter into compliance agreements. The	527

(B)(1) The chief or the chief's authorized representative may	528
issue an administrative order to an owner for a violation of this	529
chapter or rules adopted under it, terms and conditions of a	530
permit issued under it, a registration certificate that is	531
required under this chapter, or orders issued under this chapter.	532

(2) The chief may issue an order finding that an owner has	533
committed a material and substantial violation.	534

(C) The chief, by order, immediately may suspend drilling,	535
operating, or plugging activities that are related to a material	536
and substantial violation and suspend and revoke an unused permit	537
after finding either of the following:	538

(1) An owner has failed to comply with an order issued under	539
division (B)(2) of this section that is final and nonappealable.	540

(2) An owner is causing, engaging in, or maintaining a	541
condition or activity that the chief determines presents an	542
imminent danger to the health or safety of the public or that	543
results in or is likely to result in immediate substantial damage	544
to the natural resources of this state.	545

(D)(1) The chief may issue an order under division (C) of	546
this section without prior notification if reasonable attempts to	547
notify the owner have failed or if the owner is currently in	548
material breach of a prior order, but in such an event	549
notification shall be given as soon thereafter as practical.	550

(2) Not later than five days after the issuance of an order	551
under division (C) of this section, the chief shall provide the	552
owner an opportunity to be heard and to present evidence that one	553
of the following applies:	554

(a) The condition or activity does not present an imminent	555
danger to the public health or safety or is not likely to result	556
in immediate substantial damage to natural resources.	557

(b) Required records, reports, or logs have been submitted.

558

(3) If the chief, after considering evidence presented by the	559
owner under division (D)(2)(a) of this section, determines that	560
the activities do not present such a threat or that the required	561
records, reports, or logs have been submitted under division	562
(D)(2)(b) of this section, the chief shall revoke the order. The	563
owner may appeal an order to the court of common pleas of the	564
county in which the activity that is the subject of the order is	565
located.	566

(E) The chief may issue a bond forfeiture order pursuant to	567
section 1509.071 of the Revised Code for failure to comply with a	568
final nonappealable order issued or compliance agreement entered	569
into under this section.	570

(F) The chief may notify drilling contractors, transporters,	571
service companies, or other similar entities of the compliance	572
status of an owner.	573

If the owner fails to comply with a prior enforcement action	574
of the chief, the chief may issue a suspension order without prior	575
notification, but in such an event the chief shall give notice as	576
soon thereafter as practical. Not later than five calendar days	577
after the issuance of an order, the chief shall provide the owner	578
an opportunity to be heard and to present evidence that required	579
records, reports, or logs have been submitted. If the chief, after	580
considering the evidence presented by the owner, determines that	581
the requirements have been satisfied, the chief shall revoke the	582
suspension order. The owner may appeal a suspension order to the	583
court of common pleas of the county in which the activity that is	584
the subject of the suspension order is located.	585

(G) The prosecuting attorney of the county or the attorney	586
general, upon the request of the chief, may apply to the court of	587
common pleas in the county in which any of the provisions of this	588
chapter or any rules, terms or conditions of a permit or	589
registration certificate, or orders adopted or issued pursuant to	590
this chapter are being violated for a temporary restraining order,	591
preliminary injunction, or permanent injunction restraining any	592
person from such violation.	593

Sec. 1509.041.  The chief of the division of mineral	594
resources management shall maintain a database on the division of	595
mineral resources management's web site that is accessible to the	596
public. The database shall list each final nonappealable order	597
issued for a material and substantial violation under this	598
chapter. The list shall identify the violator, the date on which	599
the violation occurred, and the date on which the violation was	600
corrected.	601

Sec. 1509.05.  No person shall drill a new well, drill an	602
existing well any deeper, reopen a well, convert a well to any use	603
other than its original purpose, or plug back a well to a source	604
of supply different from the existing pool, without having a	605
permit to do so issued by the chief of the division of mineral	606
resources management, and until the original permit or a	607
photostatic copy thereof is posted or displayed in a conspicuous	608
and easily accessible place at the well site, with the name,	609
current address, and telephone number of the permit holder and the	610
telephone numbers for fire and emergency medical services	611
maintained on the posted permit or copy. The permit or a copy	612
shall be continuously displayed in suchthat manner at all times	613
during the work authorized by the permit.	614

Such permit shall be issued by the chief in accordance with	615
this chapter and shall be valid for twelve months.	616

Sec. 1509.06. (A) An application for a permit to drill a new	617
well, drill an existing well deeper, reopen a well, convert a well	618
to any use other than its original purpose, or plug back a well to	619
a different source of supply, including associated production	620
operations, shall be filed with the chief of the division of	621
mineral resources management upon such form as the chief	622
prescribes and shall contain each of the following that is	623
applicable:	624

(1) The name and address of the owner and, if a corporation,	625
the name and address of the statutory agent;	626

(2) The signature of the owner or the owner's authorized	627
agent. When an authorized agent signs an application, it shall be	628
accompanied by a certified copy of the appointment as such agent.	629

(3) The names and addresses of all persons holding the	630
royalty interest in the tract upon which the well is located or is	631
to be drilled or within a proposed drilling unit;	632

(4) The location of the tract or drilling unit on which the	633
well is located or is to be drilled identified by section or lot	634
number, city, village, township, and county;	635

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

636

(6) The geological formation to be tested or used and the	637
proposed total depth of the well;	638

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

639

(8) If the well is for the injection of a liquid, identity of	640
the geological formation to be used as the injection zone and the	641
composition of the liquid to be injected;	642

(9) For an application for a permit to drill a new well	643
within an urbanized area, a sworn statement that the applicant has	644
provided notice by regular mail of the application to the owner of	645
each occupied dwelling unitparcel of real property that is	646
located within five hundred feet of the surface location of the	647
well if the surface location will be less than five hundred feet	648
from the boundary of the drilling unit and more than fifteen	649
occupied dwelling units are located less than five hundred feet	650
from the surface location of the well, excluding any dwelling that	651
is located on real property all or any portion of which is	652
included in the drilling unitand to the executive authority of	653
the municipal corporation or the board of township trustees of the	654
township, as applicable, in which the well is to be located. In	655
addition, the notice shall contain a statement that informs an	656
owner of real property who is required to receive the notice under	657
division (A)(9) of this section that within five days of receipt	658
of the notice, the owner is required to provide notice under	659
section 1509.60 of the Revised Code to each residence in an	660
occupied dwelling that is located on the owner's parcel of real	661
property. The notice shall contain a statement that an application	662
has been filed with the division of mineral resources management,	663
identify the name of the applicant and the proposed well location,	664
include the name and address of the division, and contain a	665
statement that comments regarding the application may be sent to	666
the division. The notice may be provided by hand delivery or	667
regular mail. The identity of the owners of occupied dwelling	668
unitsparcels of real property shall be determined using the tax	669
records of the municipal corporation or county in which the	670
dwelling unita parcel of real property is located as of the date	671
of the notice.	672

(10) A plan for restoration of the land surface disturbed by	673
drilling operations. The plan shall provide for compliance with	674
the restoration requirements of division (A) of section 1509.072	675
of the Revised Code and any rules adopted by the chief pertaining	676
to that restoration.	677

(11) A description by name or number of the county, township,	678
and municipal corporation roads, streets, and highways that the	679
applicant anticipates will be used for access to and egress from	680
the well site;	681

(12) Such other relevant information as the chief prescribes	682
by rule.	683

Each application shall be accompanied by a map, on a scale	684
not smaller than four hundred feet to the inch, prepared by an	685
Ohio registered surveyor, showing the location of the well and	686
containing such other data as may be prescribed by the chief. If	687
the well is or is to be located within the excavations and	688
workings of a mine, the map also shall include the location of the	689
mine, the name of the mine, and the name of the person operating	690
the mine.	691

(B) The chief shall cause a copy of the weekly circular	692
prepared by the division to be provided to the county engineer of	693
each county that contains active or proposed drilling activity.	694
The weekly circular shall contain, in the manner prescribed by the	695
chief, the names of all applicants for permits, the location of	696
each well or proposed well, the information required by division	697
(A)(11) of this section, and any additional information the chief	698
prescribes. In addition, the chief promptly shall transfer an	699
electronic copy or facsimile, or if those methods are not	700
available to a municipal corporation or township, a copy via	701
regular mail, of a drilling permit application to the clerk of the	702
legislative authority of the municipal corporation or to the clerk	703
of the township in which the well or proposed well is or is to be	704
located if the legislative authority of the municipal corporation	705
or the board of township trustees has asked to receive copies of	706
such applications and the appropriate clerk has provided the chief	707
an accurate, current electronic mailing address or facsimile	708
number, as applicable.	709

(C) The(1) Except as provided in division (C)(2) of this	710
section, the chief shall not issue a permit for at least ten days	711
after the date of filing of the application for the permit unless,	712
upon reasonable cause shown, the chief waives that period or a	713
request for expedited review is filed under this section. However,	714
the chief shall issue a permit within twenty-one days of the	715
filing of the application unless the chief denies the application	716
by order.	717

(2) If the location of a well or proposed well will be or is	718
within an urbanized area, the chief shall not issue a permit for	719
at least eighteen days after the date of filing of the application	720
for the permit unless, upon reasonable cause shown, the chief	721
waives that period or the chief at the chief's discretion grants a	722
request for an expedited review. However, the chief shall issue a	723
permit for a well or proposed well within an urbanized area within	724
thirty days of the filing of the application unless the chief	725
denies the application by order.	726

(D) An applicant may file a request with the chief for	727
expedited review of a permit application if the well is not or is	728
not to be located in a gas storage reservoir or reservoir	729
protective area, as "reservoir protective area" is defined in	730
section 1571.01 of the Revised Code. If the well is or is to be	731
located in a coal bearing township, the application shall be	732
accompanied by the affidavit of the landowner prescribed in	733
section 1509.08 of the Revised Code.	734

In addition to a complete application for a permit that meets	735
the requirements of this section and the permit fee prescribed by	736
this section, a request for expedited review shall be accompanied	737
by a separate nonrefundable filing fee of fivetwo hundred fifty	738
dollars. Upon the filing of a request for expedited review, the	739
chief shall cause the county engineer of the county in which the	740
well is or is to be located to be notified of the filing of the	741
permit application and the request for expedited review by	742
telephone or other means that in the judgment of the chief will	743
provide timely notice of the application and request. The chief	744
shall issue a permit within seven days of the filing of the	745
request unless the chief denies the application by order.	746
Notwithstanding the provisions of this section governing expedited	747
review of permit applications, the chief may refuse to accept	748
requests for expedited review if, in the chief's judgment, the	749
acceptance of the requests would prevent the issuance, within	750
twenty-one days of their filing, of permits for which applications	751
are pending.	752

(E) A well shall be drilled and operated in accordance with	753
the plans, sworn statements, and other information submitted in	754
the approved application.	755

(F) The chief shall issue an order denying a permit if the	756
chief finds that there is a substantial risk that the operation	757
will result in violations of this chapter or rules adopted under	758
it that will present an imminent danger to public health or safety	759
or damage to the environment, provided that where the chief finds	760
that terms or conditions to the permit can reasonably be expected	761
to prevent such violations, the chief shall issue the permit	762
subject to those terms or conditions, including, if applicable,	763
terms and conditions regarding subjects identified in rules	764
adopted under section 1509.03 of the Revised Code. The issuance of	765
a permit shall not be considered an order of the chief.	766

(G) Each application for a permit required by section 1509.05	767
of the Revised Code, except an application to plug back an	768
existing well that is required by that section and an application	769
for a well drilled or reopened for purposes of section 1509.22 of	770
the Revised Code, also shall be accompanied by a nonrefundable fee	771
as follows:	772

(1) TwoFive hundred fifty dollars for a permit to conduct	773
activities in a township with a population of fewer than fiveten	774
thousand;	775

(2) Five hundred dollars for a permit to conduct activities	776
in a township with a population of five thousand or more, but	777
fewer than ten thousand;	778

(3) Seven hundred fifty dollars for a permit to conduct	779
activities in a township with a population of ten thousand or	780
more, but fewer than fifteen thousand;	781

(4)(3) One thousand dollars for a permit to conduct	782
activities in either of the following:	783

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

784

(b) A municipal corporation regardless of population.

785

(4) If the application is for a permit that requires	786
mandatory pooling, an additional five thousand dollars.	787

For purposes of calculating fee amounts, populations shall be	788
determined using the most recent federal decennial census.	789

Each application for the revision or reissuance of a permit	790
shall be accompanied by a nonrefundable fee of two hundred fifty	791
dollars.	792

(H) The chief may order the immediate suspension of drilling,	793
operating, or plugging activities after finding that any person is	794
causing, engaging in, or maintaining a condition or activity that	795
in the chief's judgment presents an imminent danger to public	796
health or safety or results in or is likely to result in immediate	797
substantial damage to natural resources or for nonpayment of a fee	798
required by this section. The chief may order the immediate	799
suspension of the drilling or reopening of a well in a coal	800
bearing township after determining that the drilling or reopening	801
activities present an imminent and substantial threat to public	802
health or safety or to miners' health or safety. Before issuing	803
any such order, the chief shall notify the owner in such manner as	804
in the chief's judgment would provide reasonable notification that	805
the chief intends to issue a suspension order. The chief may issue	806
such an order without prior notification if reasonable attempts to	807
notify the owner have failed, but in such an event notification	808
shall be given as soon thereafter as practical. Within five	809
calendar days after the issuance of the order, the chief shall	810
provide the owner an opportunity to be heard and to present	811
evidence that the condition or activity is not likely to result in	812
immediate substantial damage to natural resources or does not	813
present an imminent danger to public health or safety or to	814
miners' health or safety, if applicable. In the case of activities	815
in a coal bearing township, if the chief, after considering	816
evidence presented by the owner, determines that the activities do	817
not present such a threat, the chief shall revoke the suspension	818
order. Notwithstanding any provision of this chapter, the owner	819
may appeal a suspension order directly to the court of common	820
pleas of the county in which the activity is located or, if in a	821
coal bearing township, to the reclamation commission under section	822
1513.13 of the Revised CodePrior to the issuance of a permit to	823
drill a proposed well that is to be located in an urbanized area,	824
the division shall conduct a site review to identify and evaluate	825
any site-specific terms and conditions that may be attached to the	826
permit. At the site review, a representative of the division shall	827
consider fencing, screening, and landscaping requirements, if any,	828
for similar structures in the community in which the well is	829
proposed to be located. The terms and conditions that are attached	830
to the permit shall include the establishment of fencing,	831
screening, and landscaping requirements for the surface facilities	832
of the proposed well, including a tank battery of the well.	833

(I) A permit shall be issued by the chief in accordance with	834
this chapter. A permit issued under this section for a well that	835
is or is to be located in an urbanized area shall be valid for	836
twelve months, and all other permits issued under this section	837
shall be valid for twenty-four months.	838

(J) A permittee or a permittee's authorized representative	839
shall notify an inspector from the division of mineral resources	840
management at least twenty-four hours, or another time period	841
agreed to by the chief's authorized representative, prior to the	842
commencement of drilling, reopening, converting, well stimulation,	843
or plugback operations.	844

Sec. 1509.062. (A)(1) The owner of a well that has not been	845
completed, a well that has not produced within one year after	846
completion, or an existing well that has no reported production	847
for two consecutive reporting periods as reported in accordance	848
with section 1509.11 of the Revised Code shall plug the well in	849
accordance with section 1509.12 of the Revised Code, obtain	850
temporary inactive well status for the well in accordance with	851
this section, or perform another activity regarding the well that	852
is approved by the chief of the division of mineral resources	853
management.	854

(2) If a well has a reported annual production that is less	855
than one hundred thousand cubic feet of natural gas or fifteen	856
barrels of crude oil, or a combination thereof, the chief may	857
require the owner of the well to submit an application for	858
temporary inactive well status under this section for the well.	859

(B) In order for the owner of a well to submit an application	860
for temporary inactive well status for the well under this	861
division, the owner and the well shall be in compliance with this	862
chapter and rules adopted under it, any terms and conditions of	863
the permit for the well, and applicable orders issued by the	864
chief. An application for temporary inactive status for a well	865
shall be submitted to the chief on a form prescribed and provided	866
by the chief and shall contain all of the following:	867

(1) The owner's name and address and, if the owner is a	868
corporation, the name and address of the corporation's statutory	869
agent;	870

(2) The signature of the owner or of the owner's authorized	871
agent. When an authorized agent signs an application, the	872
application shall be accompanied by a certified copy of the	873
appointment as such agent.	874

(3) The permit number assigned to the well. If the well has	875
not been assigned a permit number, the chief shall assign a permit	876
number to the well.	877

(4) A map, on a scale not smaller than four hundred feet to	878
the inch, that shows the location of the well and the tank	879
battery, that includes the latitude and longitude of the well, and	880
that contains all other data that are required by the chief;	881

(5) A demonstration that the well is of future utility and	882
that the applicant has a viable plan to utilize the well within a	883
reasonable period of time;	884

(6) A demonstration that the well poses no threat to the	885
health or safety of persons, property, or the environment;	886

(7) Any other relevant information that the chief prescribes	887
by rule.	888

The chief may waive any of the requirements established in	889
divisions (B)(1) to (6) of this section if the division of mineral	890
resources management possesses a current copy of the information	891
or document that is required in the applicable division.	892

(C) Upon receipt of an application for temporary inactive	893
well status, the chief shall review the application and shall	894
either deny the application by issuing an order or approve the	895
application. The chief shall approve the application only if the	896
chief determines that the well that is the subject of the	897
application poses no threat to the health or safety of persons,	898
property, or the environment. If the chief approves the	899
application, the chief shall notify the applicant of the chief's	900
approval. Upon receipt of the chief's approval, the owner shall	901
shut in the well and empty all liquids and gases from all storage	902
tanks, pipelines, and other equipment associated with the well. In	903
addition, the owner shall maintain the well, other equipment	904
associated with the well, and the surface location of the well in	905
a manner that prevents hazards to the health and safety of people	906
and the environment. The owner shall inspect the well at least	907
every six months and submit to the chief within fourteen days	908
after the inspection a record of inspection on a form prescribed	909
and provided by the chief.	910

(D) Not later than thirty days prior to the expiration of	911
temporary inactive well status or a renewal of temporary inactive	912
well status approved by the chief for a well, the owner of the	913
well may submit to the chief an application for renewal of the	914
temporary inactive well status on a form prescribed and provided	915
by the chief. The application shall include a detailed plan that	916
describes the ultimate disposition of the well, the time frames	917
for that disposition, and any other information that the chief	918
determines is necessary. The chief shall either deny an	919
application by order or approve the application. If the chief	920
approves the application, the chief shall notify the owner of the	921
well of the chief's approval.	922

(E) An application for temporary inactive well status shall	923
be accompanied by a nonrefundable fee of one hundred dollars. An	924
application for a renewal of temporary inactive well status shall	925
be accompanied by a nonrefundable fee of two hundred fifty dollars	926
for the first renewal and five hundred dollars for each subsequent	927
renewal.	928

(F) After a third renewal, the chief may require an owner to	929
provide a surety bond in an amount not to exceed ten thousand	930
dollars for each of the owner's wells that has been approved by	931
the chief for temporary inactive well status.	932

(G) Temporary inactive well status approved by the chief	933
expires one year after the date of approval of the application for	934
temporary inactive well status or production from the well	935
commences, whichever occurs sooner. In addition, a renewal of a	936
temporary inactive well status expires one year after the	937
expiration date of the initial temporary inactive well status or	938
one year after the expiration date of the previous renewal of the	939
temporary inactive well status, as applicable, or production from	940
the well commences, whichever occurs sooner.	941

(H) The owner of a well that has been approved by the chief	942
for temporary inactive well status may commence production from	943
the well at any time. Not later than sixty days after the	944
commencement of production from such a well, the owner shall	945
notify the chief of the commencement of production.	946

(I) This chapter and rules adopted under it, any terms and	947
conditions of the permit for a well, and applicable orders issued	948
by the chief apply to a well that has been approved by the chief	949
for temporary inactive well status or renewal of that status.	950

Sec. 1509.07.  An owner of any well, except an exempt	951
Mississippian well or an exempt domestic well, shall obtain	952
liability insurance coverage from a company authorized to do	953
business in this state in an amount of not less than three hundred	954
thousandone million dollars bodily injury coverage and three	955
hundred thousand dollars property damage coverage to pay damages	956
for injury to persons or damage to property caused by the	957
drilling, operation, or plugging of all the owner's wells in this	958
state. However, if any well is located within an urbanized area,	959
the owner shall obtain liability insurance coverage in an amount	960
of not less than three million dollars for bodily injury coverage	961
and property damage coverage to pay damages for injury to persons	962
or damage to property caused by the drilling, operation, or	963
plugging of all of the owner's wells in this state. The owner	964
shall maintain thatthe coverage until all the owner's wells are	965
plugged and abandoned as required by lawor are transferred to an	966
owner who has obtained insurance as required under this section	967
and who is not under a notice of material and substantial	968
violation or under a suspension order. The owner shall provide	969
proof of liability insurance coverage to the chief of the division	970
of mineral resources management upon request. Upon failure of the	971
owner to provide that proof when requested, the chief may order	972
the suspension of any outstanding permits and operations of the	973
owner until the owner provides proof of the required insurance	974
coverage.	975

Except as otherwise provided in this section, an owner of any	976
well, before being issued a permit under section 1509.06 of the	977
Revised Code or before operating or producing from a well, shall	978
execute and file with the division of mineral resources management	979
a surety bond conditioned on compliance with the restoration	980
requirements of section 1509.072, the plugging requirements of	981
section 1509.12, the permit provisions of section 1509.13 of the	982
Revised Code, and all rules and orders of the chief relating	983
thereto, in an amount set by rule of the chief.	984

The owner may deposit with the chief, instead of a surety	985
bond, cash in an amount equal to the surety bond as prescribed	986
pursuant to this section or negotiable certificates of deposit or	987
irrevocable letters of credit, issued by any bank organized or	988
transacting business in this state or by any savings and loan	989
association as defined in section 1151.01 of the Revised Code,	990
having a cash value equal to or greater than the amount of the	991
surety bond as prescribed pursuant to this section. Cash or	992
certificates of deposit shall be deposited upon the same terms as	993
those upon which surety bonds may be deposited. If certificates of	994
deposit are deposited with the chief instead of a surety bond, the	995
chief shall require the bank or savings and loan association that	996
issued any such certificate to pledge securities of a cash value	997
equal to the amount of the certificate that is in excess of the	998
amount insured by any of the agencies and instrumentalities	999
created under the "Federal Deposit Insurance Act," 64 Stat. 873	1000
(1950), 12 U.S.C. 1811, as amended, and regulations adopted under	1001
it, including at least the federal deposit insurance corporation,	1002
bank insurance fund, and savings association insurance fund. The	1003
securities shall be security for the repayment of the certificate	1004
of deposit.	1005

Immediately upon a deposit of cash, certificates of deposit,	1006
or letters of credit with the chief, the chief shall deliver them	1007
to the treasurer of state who shall hold them in trust for the	1008
purposes for which they have been deposited.	1009

Instead of a surety bond, the chief may accept proof of	1010
financial responsibility consisting of a sworn financial statement	1011
showing a net financial worth within this state equal to twice the	1012
amount of the bond for which it substitutes and, as may be	1013
required by the chief, a list of producing properties of the owner	1014
within this state or other evidence showing ability and intent to	1015
comply with the law and rules concerning restoration and plugging	1016
that may be required by rule of the chief. The owner of an exempt	1017
domestic or exempt Mississippian well is not required to file	1018
scheduled updates of the financial documents, but shall file	1019
updates of those documents if requested to do so by the chief. The	1020
owner of a nonexempt domestic or nonexempt Mississippian well	1021
shall file updates of the financial documents in accordance with a	1022
schedule established by rule of the chief. The chief, upon	1023
determining that an owner for whom the chief has accepted proof of	1024
financial responsibility instead of bond cannot demonstrate	1025
financial responsibility, shall order that the owner execute and	1026
file a bond or deposit cash, certificates of deposit, or	1027
irrevocable letters of credit as required by this section for the	1028
wells specified in the order within ten days of receipt of the	1029
order. If the order is not complied with, all wells of the owner	1030
that are specified in the order and for which no bond is filed or	1031
cash, certificates of deposit, or letters of credit are deposited	1032
shall be plugged. No owner shall fail or refuse to plug such a	1033
well. Each day on which such a well remains unplugged thereafter	1034
constitutes a separate offense.	1035

The surety bond provided for in this section shall be	1036
executed by a surety company authorized to do business in this	1037
state.	1038

The chief shall not approve any bond until it is personally	1039
signed and acknowledged by both principal and surety, or as to	1040
either by the principal's or surety's attorney in fact, with a	1041
certified copy of the power of attorney attached thereto. The	1042
chief shall not approve a bond unless there is attached a	1043
certificate of the superintendent of insurance that the company is	1044
authorized to transact a fidelity and surety business in this	1045
state.	1046

All bonds shall be given in a form to be prescribed by the	1047
chief and shall run to the state as obligee.	1048

An owner of an exempt Mississippian well or an exempt	1049
domestic well, in lieu of filing a surety bond, cash in an amount	1050
equal to the surety bond, certificates of deposit, irrevocable	1051
letters of credit, or a sworn financial statement, may file a	1052
one-time fee of fifty dollars, which shall be deposited in the oil	1053
and gas well plugging fund created in section 1509.071 of the	1054
Revised Code.	1055

An owner, operator, producer, or other person shall not	1056
operate a well or produce from a well at any time if the owner,	1057
operator, producer, or other person has not satisfied the	1058
requirements established in this section.	1059

Sec. 1509.071.  (A) When the chief of the division of mineral	1060
resources management finds that an owner has failed to comply with	1061
a final nonappealable order issued or compliance agreement entered	1062
into under section 1509.04, the restoration requirements of	1063
section 1509.072, plugging requirements of section 1509.12, or	1064
permit provisions of section 1509.13 of the Revised Code, or rules	1065
and orders relating thereto, the chief shall make a finding of	1066
that fact and declare any surety bond filed to ensure compliance	1067
with those sections and rules forfeited in the amount set by rule	1068
of the chief. The chief thereupon shall certify the total	1069
forfeiture to the attorney general, who shall proceed to collect	1070
the amount of the forfeiture. In addition, the chief may require	1071
an owner, operator, producer, or other person who forfeited a	1072
surety bond to post a new surety bond in the amount of fifteen	1073
thousand dollars for a single well, thirty thousand dollars for	1074
two wells, or fifty thousand dollars for three or more wells.	1075

In lieu of total forfeiture, the surety or owner, at itsthe	1076
surety's or owner's option, may cause the well to be properly	1077
plugged and abandoned and the area properly restored or pay to the	1078
treasurer of state the cost of plugging and abandonment.	1079

(B) All moneys collected because of forfeitures of bonds as	1080
provided in this section shall be deposited in the state treasury	1081
to the credit of the oil and gas well fund created in section	1082
1509.02 of the Revised Code. The fund	1083

The chief annually shall be expended by the chiefspend not	1084
less than fourteen per cent of the revenue credited to the fund	1085
during the previous fiscal year for the following purposes in	1086
addition to the other purposes specified in that section:	1087

(1) In accordance with division (D) of this section, to plug	1088
idle and orphaned wells or to restore the land surface properly as	1089
required in section 1509.072 of the Revised Code for which the	1090
bonds have been forfeited, for abandoned wells for which no funds	1091
are available to plug the wells in accordance with this chapter,	1092
or to use abandoned wells for the injection of oil or gas	1093
production wastes;	1094

(2) In accordance with division (E) of this section, to	1095
correct conditions that the chief reasonably has determined are	1096
causing imminent health or safety risks at an idle and orphaned	1097
well or a well for which the owner cannot be contacted in order to	1098
initiate a corrective action within a reasonable period of time as	1099
determined by the chief.	1100

Expenditures from the fund shall be made only for lawful	1101
purposes. In addition, expenditures from the fund shall not be	1102
made to purchase real property or to remove a dwelling in order to	1103
access a well.	1104

(C)(1) Upon determining that the owner of a well has failed	1105
to properly plug and abandon it or to properly restore the land	1106
surface at the well site in compliance with the applicable	1107
requirements of this chapter and applicable rules adopted and	1108
orders issued under it or that a well is an abandoned well for	1109
which no funds are available to plug the well in accordance with	1110
this chapter, the chief shall do all of the following:	1111

(a) Determine from the records in the office of the county	1112
recorder of the county in which the well is located the identity	1113
of the owner of the land on which the well is located, the	1114
identity of the owner of the oil or gas lease under which the well	1115
was drilled or the identity of each person owning an interest in	1116
the lease, and the identities of the persons having legal title	1117
to, or a lien upon, any of the equipment appurtenant to the well;	1118

(b) Mail notice to the owner of the land on which the well is	1119
located informing the landowner that the well is to be plugged. If	1120
the owner of the oil or gas lease under which the well was drilled	1121
is different from the owner of the well or if any persons other	1122
than the owner of the well own interests in the lease, the chief	1123
also shall mail notice that the well is to be plugged to the owner	1124
of the lease or to each person owning an interest in the lease, as	1125
appropriate.	1126

(c) Mail notice to each person having legal title to, or a	1127
lien upon, any equipment appurtenant to the well, informing the	1128
person that the well is to be plugged and offering the person the	1129
opportunity to plug the well and restore the land surface at the	1130
well site at the person's own expense in order to avoid forfeiture	1131
of the equipment to this state.	1132

(2) If none of the persons described in division (C)(1)(c) of	1133
this section plugs the well within sixty days after the mailing of	1134
the notice required by that division, all equipment appurtenant to	1135
the well is hereby declared to be forfeited to this state without	1136
compensation and without the necessity for any action by the state	1137
for use to defray the cost of plugging and abandoning the well and	1138
restoring the land surface at the well site.	1139

(D) Expenditures from the fund for the purpose of division	1140
(B)(1) of this section shall be made in accordance with either of	1141
the following:	1142

(1) The expenditures may be made pursuant to contracts	1143
entered into by the chief with persons who agree to furnish all of	1144
the materials, equipment, work, and labor as specified and	1145
provided in such a contract for activities associated with the	1146
restoration or plugging of a well as determined by the chief. The	1147
activities may include excavation to uncover a well, geophysical	1148
methods to locate a buried well when clear evidence of leakage	1149
from the well exists, cleanout of wellbores to remove material	1150
from a failed plugging of a well, plugging operations,	1151
installation of vault and vent systems, including associated	1152
engineering certifications and permits, restoration of property,	1153
and repair of damage to property that is caused by such	1154
activities. Expenditures shall not be used for salaries,	1155
maintenance, equipment, or other administrative purposes, except	1156
for costs directly attributed to the plugging of an idle and	1157
orphaned well. Agents or employees of persons contracting with the	1158
chief for thea restoration,or plugging, and injection projects	1159
project may enter upon any land, public or private, on which the	1160
well is located for the purpose of performing the work. Prior to	1161
such entry, the chief shall give to the following persons written	1162
notice of the existence of a contract for a project to restore,or	1163
plug, or inject oil or gas production wastes into a well, the	1164
names of the persons with whom the contract is made, and the date	1165
that the project will commence: the owner of the well, the owner	1166
of the land upon which the well is located, the owner or agents of	1167
adjoining land, and, if the well is located in the same township	1168
as or in a township adjacent to the excavations and workings of a	1169
mine and the owner or lessee of that mine has provided written	1170
notice identifying those townships to the chief at any time during	1171
the immediately preceding three years, the owner or lessee of the	1172
mine.	1173

(2)(a) The owner of the land on which a well is located who	1174
has received notice under division (C)(1)(b) of this section may	1175
plug the well and be reimbursed by the division for the reasonable	1176
cost of plugging the well. In order to plug the well, the	1177
landowner shall submit an application to the chief on a form	1178
prescribed by the chief and approved by the technical advisory	1179
council on oil and gas created in section 1509.38 of the Revised	1180
Code. The application, at a minimum, shall require the landowner	1181
to provide the same information as is required to be included in	1182
the application for a permit to plug and abandon under section	1183
1509.13 of the Revised Code. The application shall be accompanied	1184
by a copy of a proposed contract to plug the well prepared by a	1185
contractor regularly engaged in the business of plugging oil and	1186
gas wells. The proposed contract shall require the contractor to	1187
furnish all of the materials, equipment, work, and labor necessary	1188
to plug the well properly and shall specify the price for doing	1189
the work, including a credit for the equipment appurtenant to the	1190
well that was forfeited to the state through the operation of	1191
division (C)(2) of this section. Expenditures under division	1192
(D)(2)(a) of this section shall be consistent with the	1193
expenditures for activities described in division (D)(1) of this	1194
section. The application also shall be accompanied by the permit	1195
fee required by section 1509.13 of the Revised Code unless the	1196
chief, in the chief's discretion, waives payment of the permit	1197
fee. The application constitutes an application for a permit to	1198
plug and abandon the well for the purposes of section 1509.13 of	1199
the Revised Code.	1200

(b) Within thirty days after receiving an application and	1201
accompanying proposed contract under division (D)(2)(a) of this	1202
section, the chief shall determine whether the plugging would	1203
comply with the applicable requirements of this chapter and	1204
applicable rules adopted and orders issued under it and whether	1205
the cost of the plugging under the proposed contract is	1206
reasonable. If the chief determines that the proposed plugging	1207
would comply with those requirements and that the proposed cost of	1208
the plugging is reasonable, the chief shall notify the landowner	1209
of that determination and issue to the landowner a permit to plug	1210
and abandon the well under section 1509.13 of the Revised Code.	1211
Upon approval of the application and proposed contract, the chief	1212
shall transfer ownership of the equipment appurtenant to the well	1213
to the landowner. The chief may disapprove an application	1214
submitted under division (D)(2)(a) of this section if the chief	1215
determines that the proposed plugging would not comply with the	1216
applicable requirements of this chapter and applicable rules	1217
adopted and orders issued under it, that the cost of the plugging	1218
under the proposed contract is unreasonable, or that the proposed	1219
contract is not a bona fide, arms length contract.	1220

(c) After receiving the chief's notice of the approval of the	1221
application and permit to plug and abandon a well under division	1222
(D)(2)(b) of this section, the landowner shall enter into the	1223
proposed contract to plug the well. The plugging shall be	1224
completed within one hundred eight days after the landowner	1225
receives the notice of approval and permit.	1226

(d) Upon determining that the plugging has been completed	1227
within the time required by division (D)(2)(c) of this section and	1228
has been completed in compliance with the applicable requirements	1229
of this chapter and applicable rules adopted and orders issued	1230
under it, the chief shall reimburse the landowner for the cost of	1231
the plugging as set forth in the proposed contract approved by the	1232
chief. The reimbursement shall be paid from the oil and gas well	1233
fund. If the chief determines that the plugging was not completed	1234
within the required time or was not completed in accordance with	1235
the applicable requirements, the chief shall not reimburse the	1236
landowner for the cost of the plugging, and the landowner or the	1237
contractor, as applicable, promptly shall transfer back to this	1238
state title to and possession of the equipment appurtenant to the	1239
well that previously was transferred to the landowner under	1240
division (D)(2)(b) of this section. If any such equipment was	1241
removed from the well during the plugging and sold, the landowner	1242
shall pay to the chief the proceeds from the sale of the	1243
equipment, and the chief promptly shall pay the moneys so received	1244
to the treasurer of state for deposit into the oil and gas well	1245
fund.	1246

The chief may establish an annual limit on the number of	1247
wells that may be plugged under division (D)(2) of this section or	1248
an annual limit on the expenditures to be made under that	1249
division.	1250

As used in division (D)(2) of this section, "plug" and	1251
"plugging" include the plugging of the well and the restoration of	1252
the land surface disturbed by the plugging.	1253

(E) Expenditures from the oil and gas well fund for the	1254
purpose of division (B)(2) of this section may be made pursuant to	1255
contracts entered into by the chief with persons who agree to	1256
furnish all of the materials, equipment, work, and labor as	1257
specified and provided in such a contract. The competitive bidding	1258
requirements of Chapter 153. of the Revised Code do not apply if	1259
the chief reasonably determines that correction of the applicable	1260
health or safety risk requires immediate action. The chief,	1261
designated representatives of the chief, and agents or employees	1262
of persons contracting with the chief under this division may	1263
enter upon any land, public or private, for the purpose of	1264
performing the work.	1265

(F) Contracts entered into by the chief under this section	1266
are not subject to either of the following:	1267

(1) Chapter 4115. of the Revised Code;

1268

(2) Section 153.54 of the Revised Code, except that the	1269
contractor shall obtain and provide to the chief as a bid guaranty	1270
a surety bond or letter of credit in an amount equal to ten per	1271
cent of the amount of the contract.	1272

(G) The owner of land on which a well is located who has	1273
received notice under division (C)(1)(b) of this section, in lieu	1274
of plugging the well in accordance with division (D)(2) of this	1275
section, may cause ownership of the well to be transferred to an	1276
owner who is lawfully doing business in this state and who has met	1277
the financial responsibility requirements established under	1278
section 1509.07 of the Revised Code, subject to the approval of	1279
the chief. The transfer of ownership also shall be subject to the	1280
landowner's filing the appropriate forms required under this	1281
chaptersection 1509.31 of the Revised Code and providing to the	1282
chief sufficient information to demonstrate the landowner's or	1283
owner's right to produce a formation or formations. That	1284
information may include a deed, a lease, or other documentation of	1285
ownership or property rights.	1286

The chief shall approve or disapprove the transfer of	1287
ownership of the well. If the chief approves the transfer, the	1288
owner is responsible for operating the well in accordance with	1289
this chapter and rules adopted under it, including, without	1290
limitation, all of the following:	1291

(1) Filing an application with the chief under section	1292
1509.06 of the Revised Code if the owner intends to drill deeper	1293
or produce a formation that is not listed in the records of the	1294
division for that well;	1295

(2) Taking title to and possession of the equipment	1296
appurtenant to the well that has been identified by the chief as	1297
having been abandoned by the former owner;	1298

(3) Complying with all applicable requirements that are	1299
necessary to drill deeper, plug the well, or plug back the well.	1300

(H) The chief shall issue an order that requires the owner of	1301
a well to pay the actual documented costs of a corrective action	1302
that is described in division (B)(2) of this section concerning	1303
the well. The chief shall transmit the money so recovered to the	1304
treasurer of state who shall deposit the money in the state	1305
treasury to the credit of the oil and gas well fund.	1306

Sec. 1509.072.  No oil or gas well owner or agent of an oil	1307
or gas well owner shall fail to restore the land surface within	1308
the area disturbed in siting, drilling, completing, and producing	1309
the well as required in this section.	1310

(A) Within five monthsfourteen days after the date upon	1311
which the surface drilling of a well is commencedcompleted to	1312
total depth in an urbanized area and within two months after the	1313
date upon which the drilling of a well is completed in all other	1314
areas, the owner or the owner's agent, in accordance with the	1315
restoration plan filed under division (A)(10) of section 1509.06	1316
of the Revised Code, shall fill all the pits for containing brine,	1317
and other waste substances resulting, obtained, or produced in	1318
connection with exploration or drilling for, or production of, oil	1319
or gas, or oil that are not required by other state or federal law	1320
or regulation, and remove all concrete bases, drilling supplies,	1321
and drilling equipment. Within nineUnless the chief of the	1322
division of mineral resources management approves a longer time	1323
period, within three months after the date upon which the surface	1324
drilling of a well is commenced in an urbanized area and within	1325
six months after the date upon which the surface drilling of a	1326
well is commenced in all other areas, the owner or the owner's	1327
agent shall grade or terrace and plant, seed, or sod the area	1328
disturbed that is not required in production of the well where	1329
necessary to bind the soil and prevent substantial erosion and	1330
sedimentation. If the chief of the division of mineral resources	1331
management finds that a pit used for containing brine, other waste	1332
substances, or oil is in violation of section 1509.22 of the	1333
Revised Code or rules adopted or orders issued under it, the chief	1334
may require the pit to be emptied and closed before expiration of	1335
the five-monthfourteen-day or three-month restoration period.	1336

(B) Within three months after a well that has produced oil or	1337
gas is plugged in an urbanized area and within six months after a	1338
well that has produced oil or gas is plugged in all other areas,	1339
or after the plugging of a dry hole, unless the chief approves a	1340
longer time period, the owner or the owner's agent shall remove	1341
all production and storage structures, supplies, and equipment,	1342
and any oil, salt water, and debris, and fill any remaining	1343
excavations. Within that period the owner or the owner's agent	1344
shall grade or terrace and plant, seed, or sod the area disturbed	1345
where necessary to bind the soil and prevent substantial erosion	1346
and sedimentation.	1347

The owner shall be released from responsibility to perform	1348
any or all restoration requirements of this section on any part or	1349
all of the area disturbed upon the filing of a request for a	1350
waiver with and obtaining the written approval of the chief, which	1351
request shall be signed by the surface owner to certify the	1352
approval of the surface owner of the release sought. The chief	1353
shall approve the request unless the chief finds upon inspection	1354
that the waiver would be likely to result in substantial damage to	1355
adjoining property, substantial contamination of surface or	1356
underground water, or substantial erosion or sedimentation.	1357

The chief, by order, may shorten the time periods provided	1358
for under division (A) or (B) of this section if failure to	1359
shorten the periods would be likely to result in damage to public	1360
health or the waters or natural resources of the state.	1361

The chief, upon written application by an owner or an owner's	1362
agent showing reasonable cause, may extend the period within which	1363
restoration shall be completed under divisions (A) and (B) of this	1364
section, but not to exceed a further six-month period, except	1365
under extraordinarily adverse weather conditions or when essential	1366
equipment, fuel, or labor is unavailable to the owner or the	1367
owner's agent.	1368

If the chief refuses to approve a request for waiver or	1369
extension, the chief shall do so by order.	1370

Sec. 1509.073.  A person that is issued a permit under this	1371
chapter to drill a new well or drill an existing well deeper in an	1372
urbanized area shall establish fluid drilling conditions prior to	1373
penetration of the Onondaga limestone and continue to use fluid	1374
drilling until total depth of the well is achieved unless the	1375
chief of the division of mineral resources management authorizes	1376
such drilling without using fluid.	1377

Sec. 1509.10. (A) Any person drilling within the state	1378
shall, within thirtysixty days after the completion of the well	1379
drilling operations to the proposed total depth or after a	1380
determination that a well is a dry or lost hole, file with the	1381
division of mineral resources management all wireline electric	1382
logs and an accurate log designatingwell completion record on a	1383
form that is approved by the chief of the division of mineral	1384
resources management that designates:	1385

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

1386

(B)(2) The character, depth, and thickness of geological	1387
formationsunits encountered, including fresh water, coal seams,	1388
mineral beds, associated fluids such as fresh water, brine, and	1389
crude oil and, natural gas bearing formations, and sour gas, if	1390
such seams, beds, fluids, or gases are known;	1391

(C)(3) The dates on which drilling operations were commenced	1392
and completed;	1393

(4) The types of drilling tools used and the name of the	1394
person that drilled the well;	1395

(5) The length in feet of the various sizes of casing and	1396
tubing used in drilling the well, the amount removed after	1397
completion, the type and setting depth of each packer, and all	1398
other data relating to muddingcementing in the annular space	1399
behind such casing or tubing, and data indicating completion as a	1400
dry, gas, oil, combination oil and gas, brine injection, or	1401
artificial brine well or a stratigraphic test;	1402

(D)(6) The number of perforations in the casing and the	1403
intervals of the perforations;	1404

(7) The elevation above mean sea level of the point from	1405
which the depth measurements were made, stating also the height of	1406
the point above ground level at the well, the total depth of the	1407
well, and the deepest geological unit that was penetrated in the	1408
drilling of the well;	1409

(8) If applicable, the type, volume, and concentration of	1410
acid, and the date on which acid was used in acidizing the well;	1411

(9) If applicable, the type and volume of fluid used to	1412
stimulate the reservoir of the well, the reservoir breakdown	1413
pressure, the method used for the containment of fluids recovered	1414
from the fracturing of the well, the methods used for the	1415
containment of fluids when pulled from the wellbore from swabbing	1416
the well, the average pumping rate of the well, and the name of	1417
the person that performed the well stimulation. In addition, the	1418
owner shall include a copy of the log from the stimulation of the	1419
well, a copy of the invoice for each of the procedures and methods	1420
described in division (A)(9) of this section that were used on a	1421
well, and a copy of the pumping pressure and rate graphs. However,	1422
the owner may redact from the copy of each invoice that is	1423
required to be included under division (A)(9) of this section the	1424
costs of and charges for the procedures and methods described in	1425
division (A)(9) of this section that were used on a well.	1426

(10) The name of the company that performed the logging of	1427
the well and the types of wireline electric logs performed on the	1428
well.	1429

The logwell completion record shall be submitted in	1430
duplicate. The first copy shall be retained as a permanent record	1431
in the files of the division, and the second copy shall be	1432
transmitted by the chief of the division of mineral resources	1433
management to the division of geological survey.	1434

Any(B)(1) Not later than sixty days after the completion of	1435
the drilling operations to the proposed total depth, the owner	1436
shall file all wireline electric log, or radioactivity log, or	1437
other geophysical log, if made in connection with the well shall	1438
be filedlogs with the division of mineral resources management	1439
and the chief shall transmit such logs electronically, if	1440
available, to the division of geological survey. Such logs may be	1441
retained by the owner for a period of not more than six months, or	1442
such additional time as may be granted by the chief in writing,	1443
after the completion of the well substantially to the depth shown	1444
in the application required by section 1509.06 of the Revised	1445
Code.	1446

(2) If a well is not completed within sixty days after the	1447
completion of drilling operations, the owner shall file with the	1448
division a supplemental well completion record that includes all	1449
of the information required under this section within sixty days	1450
after the completion of the well.	1451

(C) Upon request in writing by the chief of the division of	1452
geological survey prior to the beginning of drilling of the well,	1453
the person drilling the well shall make available a complete set	1454
of cuttings accurately identified as to depth.	1455

(D) The form of the logwell completion record required by	1456
this section shall be one that has been approved by the chief of	1457
the division of mineral resources management and the chief of the	1458
division of geological survey. The filing of a log as required by	1459
this section fulfills the requirement of filing a log with the	1460
chief of the division of geological survey in section 1505.04 of	1461
the Revised Code.	1462

(E) If there is a material listed on the invoice that is	1463
required by division (A)(9) of this section for which the division	1464
of mineral resources management does not have a material safety	1465
data sheet, the chief shall obtain a copy of the material safety	1466
data sheet for the material and post a copy of the material safety	1467
data sheet on the division's web site.	1468

Sec. 1509.11.  The owner of any well producing or capable of	1469
producing oil or gas shall file with the chief of the division of	1470
mineral resources management, on or before the firstthirty-first	1471
day of March, a statement of production of oil, gas, and brine for	1472
the last preceding calendar year in such form as the chief may	1473
prescribe. An owner that has more than one hundred wells in this	1474
state shall submit electronically the statement of production in a	1475
format that is approved by the chief. The chief shall include on	1476
the form, at the minimum, a request for the submittal of the	1477
information that a person who is regulated under this chapter is	1478
required to submit under the "Emergency Planning and Community	1479
Right-To-Know Act of 1986," 100 Stat. 1728, 42 U.S.C.A. 11001, and	1480
regulations adopted under it, and that the division does not	1481
obtain through other reporting mechanisms.	1482

Sec. 1509.12. (A) No owner of any well shall construct a	1483
well, or permit defective casing or tubing in sucha well to leak	1484
fluids or gasgases, that may causecauses damage to other	1485
permeable strata, underground sources of drinking water, or the	1486
surface of the land or that threatens the public health and safety	1487
or the environment. Upon notice fromthe discovery that the	1488
casing in a well is defective or that a well was not adequately	1489
constructed, the owner of the well shall notify the chief of the	1490
division of mineral resources management within twenty-four hours	1491
of the discovery, suchand the owner shall immediately repair	1492
such tubing orthe casing, correct the construction inadequacies,	1493
or plug and abandon suchthe well.	1494

Unless written permission is granted by the chief, any well	1495
that is or becomes incapable of producing oil or gas in commercial	1496
quantities shall be plugged, but no well shall be required to be	1497
plugged under this section that is being used to produce oil or	1498
gas for domestic purposes, or that is being lawfully used for a	1499
purpose other than production of oil or gas. When	1500

(B) When the chief finds that a well should be plugged, the	1501
chief shall notify the owner to that effect by order in writing	1502
and shall specify in suchthe order a reasonable time within which	1503
to comply. No owner shall fail or refuse to plug a well within the	1504
time specified in the order. Each day on which such a well remains	1505
unplugged thereafter constitutes a separate offense.	1506

Where the plugging method prescribed by rules adopted	1507
pursuant to section 1509.15 of the Revised Code cannot be applied	1508
or if applied would be ineffective in carrying out the protection	1509
that the law is meant to give, the chief, by order, may designate	1510
a different method of plugging. The abandonment report shall show	1511
the manner in which the well was plugged.	1512

(C) In case of oil or gas wells abandoned prior to September	1513
1, 19511978, the board of county commissioners of the county in	1514
which suchthe wells are located may submit to the electors of the	1515
county the question of establishing a special fund, by special	1516
general levy, by general bond issue, or out of current funds,	1517
which shall be approved by a majority of the electors voting upon	1518
suchthat question for the purpose of plugging suchthe wells. The	1519
fund shall be administered by the board and the plugging of oil	1520
and gas wells shall be under the supervision of the chief, and the	1521
board shall let contracts for suchthat purpose, provided that	1522
suchthe fund shall not be used for the purpose of plugging oil	1523
and gas wells that were abandoned subsequent to September 1, 1951	1524
1978.	1525

Sec. 1509.13. (A) No person shall plug and abandon a well	1526
without having a permit to do so issued by the chief of the	1527
division of mineral resources management. The permit shall be	1528
issued by the chief in accordance with this chapter, and the chief	1529
may establish by ruleshall be valid for a period of time	1530
twenty-four months from the date of issue during which permits	1531
will be valid. Application	1532

(B) Application by the owner for a permit to plug and abandon	1533
shall be filed as many days in advance as will be necessary for a	1534
mineral resources inspector or, if the well is located in a coal	1535
bearing township, both a deputy mine inspector and a mineral	1536
resources inspector to be present at the plugging. The application	1537
shall be filed with the chief upon a form that the chief	1538
prescribes and shall contain the following information:	1539

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

1540

(B)(2) The signature of the owner or the owner's authorized	1541
agent. When an authorized agent signs an application, it shall be	1542
accompanied by a certified copy of the appointment as that agent.	1543

(C)(3) The location of the well identified by section or lot	1544
number, city, village, township, and county;	1545

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

1546

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

1547

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

1548

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

1549

(C) If oil or gas has been produced from the well, the	1550
application shall be accompanied by a fee of two hundred fifty	1551
dollars. If a new dry well has been drilled in accordance with law	1552
and the permit is still valid, the permit holder may receive	1553
approval to plug the well from a mineral resources inspector or,	1554
if the well is located in a coal bearing township, both a deputy	1555
mine inspector and a mineral resources inspector so that the well	1556
can be plugged and abandoned without undue delay. Unless waived by	1557
a mineral resources inspector, the owner of a well or the owner's	1558
authorized representative shall notify a mineral resources	1559
inspector at least twenty-four hours prior to the commencement of	1560
the plugging of a well. No well shall be plugged and abandoned	1561
without a mineral resources inspector present unless permission	1562
has been granted by the chief. The owner of thea well that has	1563
produced oil or gas shall give written notice at the same time to	1564
the owner of the land upon which the well is located, the owners	1565
or agents of adjoining land, adjoining well owners or agents, and,	1566
ifand to all lessors that receive gas from the well pursuant to a	1567
lease agreement. If the well penetrates or passes within one	1568
hundred feet of the excavations and workings of a mine, the owner	1569
of the well shall give written notice to the owner or lessee of	1570
that mine, of the well owner's intention to abandon the well and	1571
of the time when the well owner will be prepared to commence	1572
plugging it.	1573

(D) An applicant may file a request with the chief for	1574
expedited review of an application for a permit to plug and	1575
abandon a well. The chief may refuse to accept a request for	1576
expedited review if, in the chief's judgment, acceptance of the	1577
request will prevent the issuance, within twenty-one days of	1578
filing, of permits for which applications filed under section	1579
1509.06 of the Revised Code are pending. In addition to a complete	1580
application for a permit that meets the requirements of this	1581
section and the permit fee prescribed by this section, if	1582
applicable, a request shall be accompanied by a nonrefundable	1583
filing fee of twofive hundred fifty dollars unless the chief has	1584
ordered the applicant to plug and abandon the well. When a request	1585
for expedited review is filed, the chief shall immediately begin	1586
to process the application and shall issue a permit within seven	1587
days of the filing of the request unless the chief, by order,	1588
denies the application.	1589

(E) This section does not apply to a well plugged or	1590
abandoned in compliance with section 1571.05 of the Revised Code.	1591

Sec. 1509.14.  Any person who abandons a well, when written	1592
permission has been granted by the chief of the division of	1593
mineral resources management to abandon and plug the well without	1594
an inspector being present to supervise the plugging, shall make a	1595
written report of the abandonment to the chief. The report shall	1596
be submitted not later than thirty days after the date of	1597
abandonment and shall include all of the following:	1598

(A) The date of abandonment;

1599

(B) The name of the owner or operator of the well at the time	1600
of abandonment and the post-office address of the owner or	1601
operator;	1602

(C) The location of the well as to township and county and	1603
the name of the owner of the surface upon which the well is	1604
drilled, with the address thereof;	1605

(D) The date of the permit to drill;

1606

(E) The date when drilled;

1607

(F) The depth of the well;

1608

(G) The depth of the top of the formation to which the well	1609
was drilled;	1610

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

1611

(I) A detailed report as to how the well was plugged, giving	1612
in particular the manner in which the coal and various formations	1613
were plugged, and the date of the plugging of the well, including	1614
the names of those who witnessed the plugging of the well.	1615

The report shall be signed by the owner or operator, or the	1616
agent of the owner or operator, who abandons and plugs the well	1617
and verified by the oath of the party so signing. For the purposes	1618
of this section, the mineral resources inspectors may take	1619
acknowledgments and administer oaths to the parties signing the	1620
report.	1621

Sec. 1509.17. Any person who drills a well shall, before	1622
drilling into the principal or major producing formation therein,	1623
encase such well with good and sufficient wrought iron or steel	1624
casing so as to exclude all surface, fresh, or salt water from any	1625
part of such well penetrating the oil or gas bearing sand or rock	1626
or fresh water strata. The method of placing such casing shall be	1627
approved by the chief of the division of mineral resources	1628
management and shall be in accord with the most approved method	1629
used in the operation of such type of well. The chief may, in lieu	1630
of the casing method outlined in this section, accept adequate	1631
mudding methods with prepared clay in the annular space behind	1632
such casing in sufficient quantities to shut off all gas or oil	1633
and that will exclude all surface, fresh, or salt water from any	1634
part of such well penetrating the oil, gas, or mineral bearing	1635
formation, or fresh water strata.	1636

Written approval from the chief is required in each case. In	1637
the operation of a gas well, it is permissible, with the written	1638
consent of the chief, to withdraw all casing in such well, leaving	1639
only the tubing and the packer therein, provided that such well is	1640
filled with prepared clay from the top of such packer to the	1641
surface, as each succeeding string of casing in such well is	1642
withdrawn.	1643

(A) A well shall be constructed in a manner that is approved	1644
by the chief of the division of mineral resources management as	1645
specified in the permit using materials that comply with industry	1646
standards for the type and depth of the well and the anticipated	1647
fluid pressures that are associated with the well. In addition, a	1648
well shall be constructed using sufficient steel or conductor	1649
casing in a manner that supports unconsolidated sediments, that	1650
protects and isolates all underground sources of drinking water as	1651
defined by the Safe Drinking Water Act, and that provides a base	1652
for a blowout preventer or other well control equipment that is	1653
necessary to control formation pressures and fluids during the	1654
drilling of the well and other operations to complete the well.	1655
Using steel production casing with sufficient cement, an oil and	1656
gas reservoir shall be isolated during well stimulation and during	1657
the productive life of the well. In addition, sour gas zones and	1658
gas bearing zones that have sufficient pressure and volume to	1659
over-pressurize the surface production casing annulus resulting in	1660
annular overpressurization shall be isolated using approved	1661
cementing, casing, and well construction practices. However,	1662
isolating an oil and gas reservoir shall not exclude open-hole	1663
completion. A well shall not be perforated for purposes of well	1664
stimulation in any zone that is located around casing that	1665
protects underground sources of drinking water without written	1666
authorization from the chief in accordance with division (D) of	1667
this section. When the well penetrates the excavations of a mine,	1668
the casing shall remain intact as provided in section 1509.18 of	1669
the Revised Code and be plugged and abandoned in accordance with	1670
section 1509.15 of the Revised Code.	1671

(B) The chief may adopt rules in accordance with Chapter 119.	1672
of the Revised Code that are consistent with division (A) of this	1673
section and that establish standards for constructing a well, for	1674
evaluating the quality of well construction materials, and for	1675
completing remedial cementing. In addition, the standards	1676
established in the rules shall consider local geology and various	1677
drilling conditions and shall require the use of reasonable	1678
methods that are based on sound engineering principles.	1679

(C) An owner or an owner's authorized representative shall	1680
notify a mineral resources inspector each time that the owner or	1681
the authorized representative notifies a person to perform the	1682
cementing of the conductor casing, the surface casing, or the	1683
production casing. In addition, not later than sixty days after	1684
the completion of the cementing of the production casing, an owner	1685
shall submit to the chief a copy of the cement tickets for each	1686
cemented string of casing and a copy of all logs that were used to	1687
evaluate the quality of the cementing.	1688

(D) The chief shall grant an exemption from this section and	1689
rules adopted under it for a well if the chief determines that a	1690
cement bond log confirms zonal isolation and there is a minimum of	1691
five hundred feet between the uppermost perforation of the casing	1692
and the lowest depth of an underground source of drinking water.	1693

Sec. 1509.18.  Any person who drills a well within the limits	1694
of a mining operation shall give consideration for the safety of	1695
the personnel working in suchthe mine, and, if possible, shall	1696
locate suchthe well so as to penetrate a pillar.	1697

If a well is to be drilled within the limits of a mining	1698
operation that may penetrate the excavation of a mine, the hole	1699
shall be reduced approximately fifteen feet above the roof of the	1700
mine. If roof conditions at the mine warrant, the hole shall be	1701
reduced in the rock formation immediately above suchthe mine, and	1702
a string of casing placed upon the shoulder so as to shut off all	1703
water, then drilling shall be continued to a point approximately	1704
thirty feet below the floor of the mine and another string of	1705
casing set. Both strings of casing shall be approximately the same	1706
diameter as the diameter of the hole.	1707

If no water is encountered between the bottom of the drive	1708
pipe and the approximate casing shoulder above the roof of such	1709
the mine, in lieu of the casing method outlined above, it is	1710
permissible to use the following casing method: the hole shall be	1711
drilled thirty feet below the floor of the mine and a string of	1712
casing shall be extended from the surface to a point thirty feet	1713
below the floor of the mine with a packer of sufficient size	1714
attached to suchthe string of casing. SuchThe packer shall be	1715
placed so that it will be below all water and will be located in	1716
the rock formation immediately above suchthe mine and shall	1717
prevent water or destructive matter from entering therein. Then	1718
the annular space above suchthe packer between the casing and	1719
well wall shall be filled with prepared clay a minimum distance of	1720
fifty feet.	1721

If a well is drilled within the limits of a mining operation	1722
and does not penetrate the excavations of a mine, the hole shall	1723
be reduced thirty feet below the coal or mineral that is being	1724
mined and a string of casing placed at this point. The annular	1725
space behind suchthe casing shall be filled with neat cement from	1726
the casing seat to a point not less than fifty feet above such	1727
the seam of coal or mineral that is being mined. The packer	1728
method, outlined in this section, is also permissible in this type	1729
of well.	1730

It is permissible to attach a release coupling or a right and	1731
left nipple to the string of casing that extends through the mine,	1732
but suchthe release coupling or right and left nipple shall be	1733
placed in such a manner that it is above the packer or at least	1734
twenty feet above the coal or mineral that is being mined.	1735

In wells penetrating the excavation of a mine, the casing	1736
shall be enclosed, if possible, with a column extending from the	1737
floor to the roof of suchthe mine, built of brick or other	1738
suitable material, subject to the approval of the chief of the	1739
division of mineral resources management. If the chief finds the	1740
method prescribed in this section unsafe, inadequate, or not	1741
suitable, the chief shall require suchthe method to be altered in	1742
such a manner that it will be safe.	1743

Sec. 1509.181. (A) The chief of the division of mineral	1744
resources management may order the immediate suspension of the	1745
drilling or reopening of a well in a coal bearing township after	1746
determining that the drilling or reopening activities present an	1747
imminent and substantial threat to public health or safety or to a	1748
miner's health or safety.	1749

(B) Before issuing an order under division (A) of this	1750
section, the chief shall notify the owner in any manner that the	1751
chief determines would provide reasonable notification of the	1752
chief's intent to issue a suspension order. However, the chief may	1753
order the immediate suspension of the drilling or reopening of a	1754
well in a coal bearing township without prior notification if the	1755
chief has made reasonable attempts to notify the owner and the	1756
attempts have failed. If the chief orders the immediate suspension	1757
of such drilling or reopening, the chief shall provide the owner	1758
notice of the order as soon as practical.	1759

(C) Not later than five days after the issuance of an order	1760
under division (A) of this section to immediately suspend the	1761
drilling or reopening of a well in a coal bearing township, the	1762
chief shall provide the owner an opportunity to be heard and to	1763
present evidence that the drilling or reopening activities will	1764
not likely result in an imminent and substantial threat to public	1765
health or safety or to a miner's health or safety, as applicable.	1766
If the chief, after considering all evidence presented by the	1767
owner, determines that the activities do not present such a	1768
threat, the chief shall revoke the suspension order.	1769

(D) Notwithstanding any other provision of this chapter, an	1770
owner may appeal a suspension order issued under this section to	1771
the reclamation commission in accordance with section 1513.13 of	1772
the Revised Code.	1773

Sec. 1509.19. An owner who elects to stimulate a well shall	1774
stimulate the well in a manner that will not endanger underground	1775
sources of drinking water. Not later than twenty-four hours before	1776
commencing the stimulation of a well, the owner or the owner's	1777
authorized representative shall notify a mineral resources	1778
inspector. If during the stimulation of a well damage to the	1779
production casing or cement occurs and results in the circulation	1780
of fluids from the annulus of the surface production casing, the	1781
owner shall immediately terminate the stimulation of the well and	1782
notify the chief of the division of mineral resources management.	1783
If the chief determines that the casing and the cement may be	1784
remediated in a manner that isolates the oil and gas bearing zones	1785
of the well, the chief may authorize the completion of the	1786
stimulation of the well. If the chief determines that the	1787
stimulation of a well resulted in irreparable damage to the well,	1788
the chief shall order that the well be plugged and abandoned	1789
within thirty days of the issuance of the order.	1790

For purposes of determining the integrity of the remediation	1791
of the casing or cement of a well that was damaged during the	1792
stimulation of the well, the chief may require the owner of the	1793
well to submit cement evaluation logs, temperature surveys,	1794
pressure tests, or a combination of such logs, surveys, and tests.	1795

Sec. 1509.20.  All owners, lessees, or their agents, drilling	1796
for or producing crude oil or natural gas, shall use every	1797
reasonable precaution in accordance with the most approved methods	1798
of operation to stop and prevent waste of oil or gas, or both. Any	1799
well productive of natural gas in quantity sufficient to justify	1800
utilization shall be utilized or shut in within ten days after	1801
completion.	1802

The owner of any well producing both oil and gas may burn	1803
such gas in flares when it is necessary to protect the health and	1804
safety of the public or when the gas is lawfully produced and	1805
there is no economic market at the well for the escaping gas.	1806

Sec. 1509.21.  No person shall, without first having obtained	1807
a permit from the chief of the division of mineral resources	1808
management, conduct secondary or additional recovery operations,	1809
including any underground injection of fluids or carbon dioxide	1810
for the secondary or tertiary recovery of oil or natural gas or	1811
for the storage of hydrocarbons that are liquid at standard	1812
temperature or pressure, unless a rule of the chief expressly	1813
authorizes such operations without a permit. SuchThe permit shall	1814
be in addition to any permit required by section 1509.05 of the	1815
Revised Code. Secondary or additional recovery operations shall be	1816
conducted in accordance with rules and orders of the chief and any	1817
terms or conditions of the permit authorizing such operations. In	1818
addition, the chief may authorize tests to evaluate whether fluids	1819
or carbon dioxide may be injected in a reservoir and to determine	1820
the maximum allowable injection pressure. The tests shall be	1821
conducted in accordance with methods prescribed in rules of the	1822
chief or conditions of the permit. Rules adopted under this	1823
section shall include provisions regarding applications for and	1824
the issuance of permits; the terms and conditions of permits;	1825
entry to conduct inspections and to examine records to ascertain	1826
compliance with this section and rules, orders, and terms and	1827
conditions of permits adopted or issued thereunder; the provision	1828
and maintenance of information through monitoring, recordkeeping,	1829
and reporting; and other provisions in furtherance of the goals of	1830
this section and the Safe Drinking Water Act. To implement the	1831
goals of the Safe Drinking Water Act, the chief shall not issue a	1832
permit for the underground injection of fluids for the secondary	1833
or tertiary recovery of oil or natural gas or for the storage of	1834
hydrocarbons that are liquid at standard temperature and pressure,	1835
unless the chief concludes that the applicant has demonstrated	1836
that the injection will not result in the presence of any	1837
contaminant in underground water that supplies or can be	1838
reasonably expected to supply any public water system, such that	1839
the presence of any such contaminant may result in the system's	1840
not complying with any national primary drinking water regulation	1841
or may otherwise adversely affect the health of persons. Rules,	1842
orders, and terms or conditions of permits adopted or issued under	1843
this section shall be construed to be no more stringent than	1844
required for compliance with the Safe Drinking Water Act, unless	1845
essential to ensure that underground sources of drinking water	1846
will not be endangered.	1847

Sec. 1509.22.  (A) Except when acting in accordance with	1848
section 1509.226 of the Revised Code, no person shall place or	1849
cause to be placed brine, crude oil, natural gas, or other fluids	1850
associated with the exploration or development of oil and gas	1851
resources in surface or ground water or in or on the land in such	1852
quantities or in such manner as actually causes or could	1853
reasonably be anticipated to cause either of the following:	1854

(1) Water used for consumption by humans or domestic animals	1855
to exceed the standards of the Safe Drinking Water Act;	1856

(2) Damage or injury to public health or safety or the	1857
environment.	1858

(B) No person shall store or dispose of brine in violation of	1859
a plan approved under division (A) of section 1509.222 or section	1860
1509.226 of the Revised Code, in violation of a resolution	1861
submitted under section 1509.226 of the Revised Code, or in	1862
violation of rules or orders applicable to those plans or	1863
resolutions.	1864

(C) The chief of the division of mineral resources management	1865
shall adopt rules and issue orders regarding storage and disposal	1866
of brine and other waste substances; however, the storage and	1867
disposal of brine and other waste substances and the chief's rules	1868
relating to storage and disposal are subject to all of the	1869
following standards:	1870

(1) Brine from any well except an exempt Mississippian well	1871
shall be disposed of only by injection into an underground	1872
formation, including annular disposal if approved by rule of the	1873
chief, which injection shall be subject to division (D) of this	1874
section; by surface application in accordance with section	1875
1509.226 of the Revised Code; in association with a method of	1876
enhanced recovery as provided in section 1509.21 of the Revised	1877
Code; or by other methods approved by the chief for testing or	1878
implementing a new technology or method of disposal. Brine from	1879
exempt Mississippian wells shall not be discharged directly into	1880
the waters of the state.	1881

(2) Muds, cuttings, and other waste substances shall not be	1882
disposed of in violation of any rule;.	1883

(3) Pits mayor steel tanks shall be used as authorized by	1884
the chief for containing brine and other waste substances	1885
resulting from, obtained from, or produced in connection with	1886
drilling, fracturingwell stimulation, reworking, reconditioning,	1887
plugging back, or plugging operations, but the. The pits and steel	1888
tanks shall be constructed and maintained to prevent the escape of	1889
brine and other waste substances. A	1890

(4) A dike or pit may be used for spill prevention and	1891
control. A dike or pit so used shall be constructed and maintained	1892
to prevent the escape of brine and crude oil, and the reservoir	1893
within such a dike or pit shall be kept reasonably free of brine,	1894
crude oil, and other waste substances.	1895

(4)(5) Earthen impoundments constructed pursuant to the	1896
division's specifications may be used for the temporary storage of	1897
brine and other waste substances in association with a saltwater	1898
injection well, an enhanced recovery project, or a solution mining	1899
project;fluids used in the stimulation of a well.	1900

(5)(6) No pit, earthen impoundment, or dike shall be used for	1901
the temporary storage of brine or other substances except in	1902
accordance with divisions (C)(3) and (4)to (5) of this section;.	1903

(6)(7) No pit or dike shall be used for the ultimate disposal	1904
of brine or other liquid waste substances.	1905

(D) No person, without first having obtained a permit from	1906
the chief, shall inject brine or other waste substances resulting	1907
from, obtained from, or produced in connection with oil or gas	1908
drilling, exploration, or production into an underground formation	1909
unless a rule of the chief expressly authorizes the injection	1910
without a permit. The permit shall be in addition to any permit	1911
required by section 1509.05 of the Revised Code, and the permit	1912
application shall be accompanied by a permit fee of one hundred	1913
thousand dollars. The chief shall adopt rules in accordance with	1914
Chapter 119. of the Revised Code regarding the injection into	1915
wells of brine and other waste substances resulting from, obtained	1916
from, or produced in connection with oil or gas drilling,	1917
exploration, or production. The rules may authorize tests to	1918
evaluate whether fluids or carbon dioxide may be injected in a	1919
reservoir and to determine the maximum allowable injection	1920
pressure, which shall be conducted in accordance with methods	1921
prescribed in the rules or in accordance with conditions of the	1922
permit. In addition, the rules shall include provisions regarding	1923
applications for and issuance of the permits required by this	1924
division; entry to conduct inspections and to examine and copy	1925
records to ascertain compliance with this division and rules,	1926
orders, and terms and conditions of permits adopted or issued	1927
under it; the provision and maintenance of information through	1928
monitoring, recordkeeping, and reporting; and other provisions in	1929
furtherance of the goals of this section and the Safe Drinking	1930
Water Act. To implement the goals of the Safe Drinking Water Act,	1931
the chief shall not issue a permit for the injection of brine or	1932
other waste substances resulting from, obtained from, or produced	1933
in connection with oil or gas drilling, exploration, or production	1934
unless the chief concludes that the applicant has demonstrated	1935
that the injection will not result in the presence of any	1936
contaminant in ground water that supplies or can reasonably be	1937
expected to supply any public water system, such that the presence	1938
of the contaminant may result in the system's not complying with	1939
any national primary drinking water regulation or may otherwise	1940
adversely affect the health of persons. This division and rules,	1941
orders, and terms and conditions of permits adopted or issued	1942
under it shall be construed to be no more stringent than required	1943
for compliance with the Safe Drinking Water Act unless essential	1944
to ensure that underground sources of drinking water will not be	1945
endangered.	1946

(E) The owner holding a permit, or an assignee or transferee	1947
who has assumed the obligations and liabilities imposed by this	1948
chapter and any rules adopted or orders issued under it pursuant	1949
to section 1509.31 of the Revised Code, and the operator of a well	1950
shall be liable for a violation of this section or any rules	1951
adopted or orders or terms or conditions of a permit issued under	1952
it.	1953

(F) An owner shall replace the water supply of the holder of	1954
an interest in real property who obtains all or part of the	1955
holder's supply of water for domestic, agricultural, industrial,	1956
or other legitimate use from an underground or surface source	1957
where the supply has been substantially disrupted by	1958
contamination, diminution, or interruption proximately resulting	1959
from the owner's oil or gas operation, or the owner may elect to	1960
compensate the holder of the interest in real property for the	1961
difference between the fair market value of the interest before	1962
the damage occurred to the water supply and the fair market value	1963
after the damage occurred if the cost of replacing the water	1964
supply exceeds this difference in fair market values. However,	1965
during the pendency of any order issued under this division, the	1966
owner shall obtain for the holder or shall reimburse the holder	1967
for the reasonable cost of obtaining a water supply from the time	1968
of the contamination, diminution, or interruption by the operation	1969
until the owner has complied with an order of the chief for	1970
compliance with this division or such an order has been revoked or	1971
otherwise becomes not effective. If the owner elects to pay the	1972
difference in fair market values, but the owner and the holder	1973
have not agreed on the difference within thirty days after the	1974
chief issues an order for compliance with this division, within	1975
ten days after the expiration of that thirty-day period, the owner	1976
and the chief each shall appoint an appraiser to determine the	1977
difference in fair market values, except that the holder of the	1978
interest in real property may elect to appoint and compensate the	1979
holder's own appraiser, in which case the chief shall not appoint	1980
an appraiser. The two appraisers appointed shall appoint a third	1981
appraiser, and within thirty days after the appointment of the	1982
third appraiser, the three appraisers shall hold a hearing to	1983
determine the difference in fair market values. Within ten days	1984
after the hearing, the appraisers shall make their determination	1985
by majority vote and issue their final determination of the	1986
difference in fair market values. The chief shall accept a	1987
determination of the difference in fair market values made by	1988
agreement of the owner and holder or by appraisers under this	1989
division and shall make and dissolve orders accordingly. This	1990
division does not affect in any way the right of any person to	1991
enforce or protect, under applicable law, the person's interest in	1992
water resources affected by an oil or gas operation.	1993

(G) In any action brought by the state for a violation of	1994
division (A) of this section involving any well at which annular	1995
disposal is used, there shall be a rebuttable presumption	1996
available to the state that the annular disposal caused the	1997
violation if the well is located within a one-quarter-mile radius	1998
of the site of the violation.	1999

Sec. 1509.221. (A) No person, without first having obtained	2000
a permit from the chief of the division of mineral resources	2001
management, shall drill a well or inject a substance into a well	2002
for the exploration for or extraction of minerals or energy, other	2003
than oil or natural gas, including, but not limited to, the mining	2004
of sulfur by the Frasch process, the solution mining of minerals,	2005
the in situ combustion of fossil fuel, or the recovery of	2006
geothermal energy to produce electric power, unless a rule of the	2007
chief expressly authorizes the activity without a permit. The	2008
permit shall be in addition to any permit required by section	2009
1509.05 of the Revised Code. The chief shall adopt rules in	2010
accordance with Chapter 119. of the Revised Code governing the	2011
issuance of permits under this section. The rules shall include	2012
provisions regarding the matters the applicant for a permit shall	2013
demonstrate to establish eligibility for a permit; the form and	2014
content of applications for permits; the terms and conditions of	2015
permits; entry to conduct inspections and to examine and copy	2016
records to ascertain compliance with this section and rules,	2017
orders, and terms and conditions of permits adopted or issued	2018
thereunder; provision and maintenance of information through	2019
monitoring, recordkeeping, and reporting; and other provisions in	2020
furtherance of the goals of this section and the Safe Drinking	2021
Water Act. To implement the goals of the Safe Drinking Water Act,	2022
the chief shall not issue a permit under this section, unless the	2023
chief concludes that the applicant has demonstrated that the	2024
drilling, injection of a substance, and extraction of minerals or	2025
energy will not result in the presence of any contaminant in	2026
underground water that supplies or can reasonably be expected to	2027
supply any public water system, such that the presence of the	2028
contaminant may result in the system's not complying with any	2029
national primary drinking water regulation or may otherwise	2030
adversely affect the health of persons. The chief may issue,	2031
without a prior adjudication hearing, orders requiring compliance	2032
with this section and rules, orders, and terms and conditions of	2033
permits adopted or issued thereunder. This section and rules,	2034
orders, and terms and conditions of permits adopted or issued	2035
thereunder shall be construed to be no more stringent than	2036
required for compliance with the Safe Drinking Water Act, unless	2037
essential to ensure that underground sources of drinking water	2038
will not be endangered.	2039

(B)(1) There is levied on the owner of an injection well who	2040
has been issued a permit under division (D) of section 1509.22 of	2041
the Revised Code the following fees:	2042

(a) Five cents per barrel of each substance that is delivered	2043
to a well to be injected in the well when the substance is	2044
produced within the division of mineral resources management	2045
regulatory district in which the well is located or within an	2046
adjoining mineral resources management regulatory district;	2047

(b) Twenty cents per barrel of each substance that is	2048
delivered to a well to be injected in the well when the substance	2049
is not produced within the division of mineral resources	2050
management regulatory district in which the well is located or	2051
within an adjoining mineral resources management regulatory	2052
district.	2053

(2) The maximum number of barrels of substance per injection	2054
well in a calendar year on which a fee may be levied under	2055
division (B) of this section is five hundred thousand. If in a	2056
calendar year the owner of an injection well receives more than	2057
five hundred thousand barrels of substance to be injected in the	2058
owner's well and if the owner receives at least one substance that	2059
is produced within the division's regulatory district in which the	2060
well is located or within an adjoining regulatory district and at	2061
least one substance that is not produced within the division's	2062
regulatory district in which the well is located or within an	2063
adjoining regulatory district, the fee shall be calculated first	2064
on all of the barrels of substance that are not produced within	2065
the division's regulatory district in which the well is located or	2066
within an adjoining district at the rate established in division	2067
(B)(2) of this section. The fee then shall be calculated on the	2068
barrels of substance that are produced within the division's	2069
regulatory district in which the well is located or within an	2070
adjoining district at the rate established in division (B)(1) of	2071
this section until the maximum number of barrels established in	2072
division (B)(2) of this section has been attained.	2073

(3) The owner of an injection well who is issued a permit	2074
under division (D) of section 1509.22 of the Revised Code shall	2075
collect the fee levied by division (B) of this section on behalf	2076
of the division of mineral resources management and forward the	2077
fee to the division. The chief shall transmit all money received	2078
under division (B) of this section to the treasurer of state who	2079
shall deposit the money in the state treasury to the credit of the	2080
oil and gas well fund created in section 1509.02 of the Revised	2081
Code. The owner of an injection well who collects the fee levied	2082
by this division may retain up to three per cent of the amount	2083
that is collected.	2084

(4) The chief shall adopt rules in accordance with Chapter	2085
119. of the Revised Code establishing requirements and procedures	2086
for collection of the fee levied by division (B) of this section.	2087

(C) In an action under section 1509.04 or 1509.33 of the	2088
Revised Code to enforce this section, the court shall grant	2089
preliminary and permanent injunctive relief and impose a civil	2090
penalty upon the showing that the person against whom the action	2091
is brought has violated, is violating, or will violate this	2092
section or rules, orders, or terms or conditions of permits	2093
adopted or issued thereunder. The court shall not require, prior	2094
to granting such preliminary and permanent injunctive relief or	2095
imposing a civil penalty, proof that the violation was, is, or	2096
will be the result of intentional conduct or negligence. In any	2097
such action, any person may intervene as a plaintiff upon the	2098
demonstration that the person has an interest that is or may be	2099
adversely affected by the activity for which injunctive relief or	2100
a civil penalty is sought.	2101

Sec. 1509.222.  (A)(1) Except as provided in section 1509.226	2102
of the Revised Code, no person shall transport brine by vehicle in	2103
this state unless the business entity that employs the person	2104
first registers with and obtains a registration certificate and	2105
identification number from the chief of the division of oil and	2106
gasmineral resources management.	2107

(2) No more than one registration certificate shall be	2108
required of any business entity. Registration certificates issued	2109
under this section are not transferable. An applicant shall file	2110
an application with the chief, containing such information in such	2111
form as the chief prescribes, but including a plan for disposal	2112
that provides for compliance with the requirements of this chapter	2113
and rules of the chief pertaining to the transportation of brine	2114
by vehicle and the disposal of brine so transported and that lists	2115
all disposal sites that the applicant intends to use, the bond	2116
required by section 1509.225 of the Revised Code, and a	2117
certificate issued by an insurance company authorized to do	2118
business in this state certifying that the applicant has in force	2119
a liability insurance policy in an amount not less than three	2120
hundred thousand dollars bodily injury coverage and three hundred	2121
thousand dollars property damage coverage to pay damages for	2122
injury to persons or property caused by the collecting, handling,	2123
transportation, or disposal of brine. The policy shall be	2124
maintained in effect during the term of the registration	2125
certificate. The policy or policies providing the coverage shall	2126
require the insurance company to give notice to the chief if the	2127
policy or policies lapse for any reason. Upon such termination of	2128
the policy, the chief may suspend the registration certificate	2129
until proper insurance coverage is obtained. Each application for	2130
a registration certificate shall be accompanied by a nonrefundable	2131
fee of five hundred dollars.	2132

(3) If a business entity that has been issued a registration	2133
certificate under this section changes its name due to a business	2134
reorganization or merger, the business entity shall revise the	2135
bond or certificates of deposit required by section 1509.225 of	2136
the Revised Code and obtain a new certificate from an insurance	2137
company in accordance with division (A)(2) of this section to	2138
reflect the change in the name of the business entity.	2139

(B) The chief shall issue an order denying an application for	2140
a registration certificate if the chief finds that either of the	2141
following applies:	2142

(1) The applicant, at the time of applying for the	2143
registration certificate, has been found liable by a final	2144
nonappealable order of a court of competent jurisdiction for	2145
damage to streets, roads, highways, bridges, culverts, or	2146
drainways pursuant to section 4513.34 or 5577.12 of the Revised	2147
Code until the applicant provides the chief with evidence of	2148
compliance with the order;.	2149

(2) The applicant's plan for disposal does not provide for	2150
compliance with the requirements of this chapter and rules of the	2151
chief pertaining to the transportation of brine by vehicle and the	2152
disposal of brine so transported.	2153

(C) No applicant shall attempt to circumvent division (B) of	2154
this section by applying for a registration certificate under a	2155
different name or business organization name, by transferring	2156
responsibility to another person or entity, or by any similar act.	2157

(D) A registered transporter shall apply to revise a disposal	2158
plan under procedures that the chief shall prescribe by rule.	2159
However, at a minimum, an application for a revision shall list	2160
all sources and disposal sites of brine currently transported. The	2161
chief shall deny any application for a revision of a plan under	2162
this division if the chief finds that the proposed revised plan	2163
does not provide for compliance with the requirements of this	2164
chapter and rules of the chief pertaining to the transportation of	2165
brine by vehicle and the disposal of brine so transported.	2166
Approvals and denials of revisions shall be by order of the chief.	2167

(E) The chief may adopt rules, issue orders, and attach terms	2168
and conditions to registration certificates as may be necessary to	2169
administer, implement, and enforce sections 1509.222 to 1509.226	2170
of the Revised Code for protection of public health or safety or	2171
conservation of natural resources.	2172

Sec. 1509.225.  (A) Before being issued a registration	2173
certificate under section 1509.222 of the Revised Code, an	2174
applicant shall execute and file with the division of mineral	2175
resources management a surety bond for fifteen thousand dollars to	2176
provide compensation for damage and injury resulting from	2177
transporters' violations of sections 1509.22, 1509.222, and	2178
1509.223 of the Revised Code, all rules and orders of the chief of	2179
the division of mineral resource management relating thereto, and	2180
all terms and conditions of the registration certificate imposed	2181
thereunder. The applicant may deposit with the chief, in lieu of a	2182
surety bond, cash in an amount equal to the surety bond as	2183
prescribed in this section, or negotiable certificates of deposit	2184
issued by any bank organized or transacting business in this	2185
state, or certificates of deposit issued by any building and loan	2186
association as defined in section 1151.01 of the Revised Code,	2187
having a cash value equal to or greater than the amount of the	2188
surety bond as prescribed in this section. Cash or certificates of	2189
deposit shall be deposited upon the same terms as those upon which	2190
surety bonds may be deposited. If certificates of deposit are	2191
deposited with the chief in lieu of a surety bond, the chief shall	2192
require the bank or building and loan association that issued any	2193
such certificate to pledge securities of a cash value equal to the	2194
amount of the certificate that is in excess of the amount insured	2195
by any of the agencies and instrumentalities created under the	2196
"Federal Deposit Insurance Act," 64 Stat. 873 (1950), 12 U.S.C.	2197
1811, as amended, and regulations adopted under it, including at	2198
least the federal deposit insurance corporation, bank insurance	2199
fund, and savings association insurance fund.	2200

Such securities shall be security for the repayment of the	2201
certificate of deposit. Immediately upon a deposit of cash or	2202
certificates with the chief, the chief shall deliver it to the	2203
treasurer of state who shall hold it in trust for the purposes for	2204
which it has been deposited.	2205

(B) The surety bond provided for in this section shall be	2206
executed by a surety company authorized to do business in this	2207
state. The chief shall not approve any bond until it is personally	2208
signed and acknowledged by both principal and surety, or as to	2209
either by an attorney in fact, with a certified copy of the power	2210
of attorney attached thereto. The chief shall not approve suchthe	2211
bond unless there is attached a certificate of the superintendent	2212
of insurance that the company is authorized to transact a fidelity	2213
and surety business in this state. All bonds shall be given in a	2214
form to be prescribed by the chief.	2215

(C) If a registered transporter is found liable for a	2216
violation of section 1509.22, 1509.222, or 1509.223 of the Revised	2217
Code or a rule, order, or term or condition of a certificate	2218
involving, in any case, damage or injury to persons or property,	2219
or both, the court may order the forfeiture of any portion of the	2220
bond, cash, or other securities required by this section in full	2221
or partial payment of damages to the person to whom the damages	2222
are due. The treasurer of state and the chief shall deliver the	2223
bond or any cash or other securities deposited in lieu of bond, as	2224
specified in the court's order, to the person to whom the damages	2225
are due; however, execution against the bond, cash, or other	2226
securities, if necessary, is the responsibility of the person to	2227
whom the damages are due. The chief shall not release the bond,	2228
cash, or securities required by this section except by court order	2229
or until two years after the date on which athe registration is	2230
terminated.	2231

Sec. 1509.226.  (A) If a board of county commissioners, a	2232
board of township trustees, or the legislative authority of a	2233
municipal corporation wishes to permit the surface application of	2234
brine to roads, streets, highways, and other similar land surfaces	2235
it owns or has the right to control for control of dust or ice, it	2236
may adopt a resolution permitting such application as provided in	2237
this section. If a board or legislative authority does not adopt	2238
such a resolution, then no such surface application of brine is	2239
permitted on such roads, streets, highways, and other similar	2240
surfaces. If a board or legislative authority votes on a proposed	2241
resolution to permit such surface application of brine, but the	2242
resolution fails to receive the affirmative vote of a majority of	2243
the board or legislative authority, the board or legislative	2244
authority shall not adopt such a resolution for one year following	2245
the date on which the vote was taken. A board or legislative	2246
authority shall hold at least one public hearing on any proposal	2247
to permit surface application of brine under this division and may	2248
hold additional hearings. The board or legislative authority shall	2249
publish notice of the time and place of each such public hearing	2250
in a newspaper of general circulation in the political subdivision	2251
at least five days before the day on which the hearing is to be	2252
held.	2253

(B) If a board or legislative authority adopts a resolution	2254
permitting the surface application of brine to roads, streets,	2255
highways, and other similar land surfaces under division (A) of	2256
this section, the board or legislative authority shall, within	2257
thirty days after the adoption of the resolution, prepare and	2258
submit to the chief of the division of mineral resources	2259
management a copy of the resolution. Any department, agency, or	2260
instrumentality of this state or the United States that wishes to	2261
permit the surface application of brine to roads, streets,	2262
highways, and other similar land surfaces it owns or has a right	2263
to control shall prepare and submit guidelines for such	2264
application, but need not adopt a resolution under division (A) of	2265
this section permitting such surface application.	2266

All resolutions and guidelines shall be subject to the	2267
following standards:	2268

(1) Brine shall not be applied:

2269

(a) To a water-saturated surface;

2270

(b) Directly to vegetation near or adjacent to surfaces being	2271
treated;	2272

(c) Within twelve feet of structures crossing bodies of water	2273
or crossing drainage ditches;	2274

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

2275

(2) The discharge of brine through the spreader bar shall	2276
stop when the application stops.	2277

(3) The applicator vehicle shall be moving at least five	2278
miles per hour at all times while the brine is being applied.	2279

(4) The maximum spreader bar nozzle opening shall be	2280
three-quarters of an inch in diameter.	2281

(5) The maximum uniform application rate of brine shall be	2282
three thousand gallons per mile on a twelve-foot-wide road or	2283
three gallons per sixty square feet on unpaved lots.	2284

(6) The applicator vehicle discharge valve shall be closed	2285
between the brine collection point and the specific surfaces that	2286
have been approved for brine application.	2287

(7) Any valves that provide for tank draining other than	2288
through the spreader bar shall be closed during the brine	2289
application and transport.	2290

(8) The angle of discharge from the applicator vehicle	2291
spreader bar shall not be greater than sixty degrees from the	2292
perpendicular to the unpaved surface.	2293

(9) Only the last twenty-five per cent of an applicator	2294
vehicle's contents shall be allowed to have a pressure greater	2295
than atmospheric pressure; therefore, the first seventy-five per	2296
cent of the applicator vehicle's contents shall be discharged	2297
under atmospheric pressure.	2298

(10) Only brine that is produced from a well shall be allowed	2299
to be spread on a road. Fluids from the drilling of a well,	2300
flowback from the stimulation of a well, and other fluids used to	2301
treat a well shall not be spread on a road.	2302

If a resolution or guidelines contain only the standards	2303
listed in division (B)(1) to (9)(10) of this section, without	2304
addition or qualification, the resolution or guidelines shall be	2305
deemed effective when submitted to the chief without further	2306
action by the chief. All other resolutions and guidelines shall	2307
comply with and be no less stringent than this chapter, rules	2308
concerning surface application that the chief shall adopt under	2309
division (C) of section 1509.22 of the Revised Code, and other	2310
rules of the chief. Within fifteen days after receiving such other	2311
resolutions and guidelines, the chief shall review them for	2312
compliance with the law and rules and disapprove them if they do	2313
not comply.	2314

The board, legislative authority, or department, agency, or	2315
instrumentality may revise and resubmit any resolutions or	2316
guidelines that the chief disapproves after each disapproval, and	2317
the chief shall again review and approve or disapprove them within	2318
fifteen days after receiving them. The board, legislative	2319
authority, or department, agency, or instrumentality may amend any	2320
resolutions or guidelines previously approved by the chief and	2321
submit them, as amended, to the chief. The chief shall receive,	2322
review, and approve or disapprove the amended resolutions or	2323
guidelines on the same basis and in the same time as original	2324
resolutions or guidelines. The board, legislative authority, or	2325
department, agency, or instrumentality shall not implement amended	2326
resolutions or guidelines until they are approved by the chief	2327
under this division.	2328

(C) Any person, other than a political subdivision required	2329
to adopt a resolution under division (A) of this section or a	2330
department, agency, or instrumentality of this state or the United	2331
States, who owns or has a legal right or obligation to maintain a	2332
road, street, highway, or other similar land surface may file with	2333
the board of county commissioners a written plan for the	2334
application of brine to the road, street, highway, or other	2335
surface. The board need not approve any such plans, but if it	2336
approves a plan, the plan shall comply with this chapter, rules	2337
adopted thereunder, and the board's resolutions, if any.	2338
Disapproved plans may be revised and resubmitted for the board's	2339
approval. Approved plans may also be revised and submitted to the	2340
board. A plan or revised plan shall do all of the following:	2341

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

2342

(2) Identify by name, address, and registration certificate,	2343
if applicable, any transporters of the brine;	2344

(3) Specifically identify the places to which the brine will	2345
be applied;	2346

(4) Specifically describe the method, rate, and frequency of	2347
application.	2348

(D) The board may attach terms and conditions to approval of	2349
a plan, or revised plan, and may revoke approval for any violation	2350
of this chapter, rules adopted thereunder, resolutions adopted by	2351
the board, or terms or conditions attached by the board. The board	2352
shall conduct at least one public hearing before approving a plan	2353
or revised plan, publishing notice of the time and place of each	2354
such public hearing in a newspaper of general circulation in the	2355
county at least five days before the day on which the hearing is	2356
to be held. The board shall record the filings of all plans and	2357
revised plans in its journal. The board shall approve, disapprove,	2358
or revoke approval of a plan or revised plan by the adoption of a	2359
resolution. Upon approval of a plan or revised plan, the board	2360
shall send a copy of the plan to the chief. Upon revoking approval	2361
of a plan or revised plan, the board shall notify the chief of the	2362
revocation.	2363

(E) No person shall:

2364

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

2365

(2) Apply brine directly to vegetation adjacent to the	2366
surface of roads, streets, highways, and other surfaces to which	2367
brine may be applied.	2368

(F) Each political subdivision that adopts a resolution under	2369
divisions (A) and (B) of this section, each department, agency, or	2370
instrumentality of this state or the United States that submits	2371
guidelines under division (B) of this section, and each person who	2372
files a plan under divisions (C) and (D) of this section shall, on	2373
or before the fifteenth day of April of each year, file a report	2374
with the chief concerning brine applied within the person's or	2375
governmental entity's jurisdiction, including the quantities	2376
transported and the sources and application points during the last	2377
preceding calendar year and such other information in such form as	2378
the chief requires.	2379

(G) Any political subdivision or department, agency, or	2380
instrumentality of this state or the United States that applies	2381
brine under this section may do so with its own personnel,	2382
vehicles, and equipment without registration under or compliance	2383
with section 1509.222 or 1509.223 of the Revised Code and without	2384
the necessity for filing the surety bond or other security	2385
required by section 1509.225 of the Revised Code. However, each	2386
such entity shall legibly identify vehicles used to apply brine	2387
with reflective paint in letters no less than four inches in	2388
height, indicating the word "brine" and that the vehicle is a	2389
vehicle of the political subdivision, department, agency, or	2390
instrumentality. Except as stated in this division, such entities	2391
shall transport brine in accordance with sections 1509.22 to	2392
1509.226 of the Revised Code.	2393

(H) A surface application plan filed for approval under	2394
division (C) of this section shall be accompanied by a	2395
nonrefundable fee of fifty dollars, which shall be credited to the	2396
general fund of the county. An approved plan is valid for one year	2397
from the date of its approval unless it is revoked before that	2398
time. An approved revised plan is valid for the remainder of the	2399
term of the plan it supersedes unless it is revoked before that	2400
time. Any person who has filed such a plan or revised plan and had	2401
it approved may renew it by refiling it in accordance with	2402
divisions (C) and (D) of this section within thirty days before	2403
any anniversary of the date on which the original plan was	2404
approved. The board shall notify the chief of renewals and	2405
nonrenewals of plans. Even if a renewed plan is approved under	2406
those divisions, the plan is not effective until notice is	2407
received by the chief, and until notice is received, the chief	2408
shall enforce this chapter and rules adopted thereunder with	2409
regard to the affected roads, streets, highways, and other similar	2410
land surfaces as if the plan had not been renewed.	2411

(I) A resolution adopted under division (A) of this section	2412
by a board or legislative authority shall be effective for one	2413
year following the date of its adoption and from month to month	2414
thereafter until the board or legislative authority, by	2415
resolution, terminates the authority granted in the original	2416
resolution. The termination shall be effective not less than seven	2417
days after enactment of the resolution, and a copy of the	2418
resolution shall be sent to the chief.	2419

Sec. 1509.23.  (A) Rules of the chief of the division of	2420
mineral resources management may specify practices to be followed	2421
in the drilling and treatment of wells and, production of oil and	2422
gas, and plugging of wells for protection of public health or	2423
safety or to prevent damage to natural resources, including	2424
specification of the following:	2425

(1) Appropriate devices;

2426

(2) Minimum distances that wells and other excavations,	2427
structures, and equipment shall be located from water wells,	2428
streets, roads, highways, rivers, lakes, streams, ponds, other	2429
bodies of water, railroad tracks, public or private recreational	2430
areas, zoning districts, and buildings or other structures;. Rules	2431
adopted under division (A)(2) of this section shall not conflict	2432
with section 1509.021 of the Revised Code.	2433

(3) Other methods of operation;

2434

(4) Procedures, methods, and equipment and other requirements	2435
for equipment to prevent and contain discharges of oil and brine	2436
from oil production facilities and oil drilling and workover	2437
facilities consistent with and equivalent in scope, content, and	2438
coverage to section 311(j)(1)(c) of the "Federal Water Pollution	2439
Control Act Amendments of 1972," 86 Stat. 886, 33 U.S.C.A. 1251,	2440
as amended, and regulations adopted under it. In addition, the	2441
rules may specify procedures, methods, and equipment and other	2442
requirements for equipment to prevent and contain surface and	2443
subsurface discharges of fluids, condensates, and gases.	2444

(5) Notifications.

2445

(B) The chief, in consultation with the emergency response	2446
commission created in section 3750.02 of the Revised Code, shall	2447
adopt rules in accordance with Chapter 119. of the Revised Code	2448
that specify the information that shall be included in an	2449
electronic database that the chief shall create and host. The	2450
information shall be that which the chief considers to be	2451
appropriate for the purpose of responding to emergency situations	2452
that pose a threat to public health or safety or the environment.	2453
At the minimum, the information shall include that which a person	2454
who is regulated under this chapter is required to submit under	2455
the "Emergency Planning and Community Right-To-Know Act of 1986,"	2456
100 Stat. 1728, 42 U.S.C.A. 11001, and regulations adopted under	2457
it.	2458

In addition, the rules shall specify whether and to what	2459
extent the database and the information that it contains will be	2460
made accessible to the public. The rules shall ensure that the	2461
database will be made available via the internet or a system of	2462
computer disks to the emergency response commission and to every	2463
local emergency planning committee and fire department in this	2464
state.	2465

Sec. 1509.24. (A) The chief of the division of mineral	2466
resources management, with the approval of the technical advisory	2467
council on oil and gas created in section 1509.38 of the Revised	2468
Code, may adopt, amend, or rescind rules relative to minimum	2469
acreage requirements for drilling units and minimum distances from	2470
which a new well may be drilled or an existing well deepened,	2471
plugged back, or reopened to a source of supply different from the	2472
existing pool from boundaries of tracts, drilling units, and other	2473
wells for the purpose of conserving oil and gas reserves. Rules	2474
The rules relative to minimum acreage requirements for drilling	2475
units shall require a drilling unit to be compact and composed of	2476
contiguous land.	2477

(B) Rules adopted under this section and special orders made	2478
under section 1509.25 of the Revised Code shall apply only to new	2479
wells to be drilled or existing wells to be deepened, plugged	2480
back, or reopened to a source of supply different from the	2481
existing pool for the purpose of extracting oil or gas in their	2482
natural state.	2483

Sec. 1509.27.  If a tract of land is of insufficient size or	2484
shape to meet the requirements for drilling a well thereon as	2485
provided in section 1509.24 or 1509.25 of the Revised Code,	2486
whichever is applicable, and the owner of the tract who also is	2487
the owner of the mineral interest has been unable to form a	2488
drilling unit under agreement as provided in section 1509.26 of	2489
the Revised Code, on a just and equitable basis, thesuch an owner	2490
of such tract may make application to the division of mineral	2491
resources management for a mandatory pooling order.	2492

SuchThe application shall include such data and information	2493
as shall be reasonably required by the chief of the division of	2494
mineral resources management and shall be accompanied by an	2495
application for a permit as required by section 1509.05 of the	2496
Revised Code. The chief shall notify all owners of land within the	2497
area proposed to be included within the orderdrilling unit of the	2498
filing of suchthe application and of their right to a hearing if	2499
requested. After the hearing or after the expiration of thirty	2500
days from the date notice of application was mailed to such	2501
owners, the chief, if satisfied that the application is proper in	2502
form and that mandatory pooling is necessary to protect	2503
correlative rights orand to provide effective development, use,	2504
orand conservation of oil and gas, shall issue a drilling permit	2505
and a mandatory pooling order complying with the requirements for	2506
drilling a well as provided in section 1509.24 or 1509.25 of the	2507
Revised Code, whichever is applicable, which. The mandatory	2508
pooling order shall:	2509

(A) Designate the boundaries of the drilling unit within	2510
which the well shall be drilled;	2511

(B) Designate the proposed drillingproduction site;

2512

(C) Describe each separately owned tract or part thereof	2513
pooled by the order;	2514

(D) Allocate on a surface acreage basis a pro rata portion of	2515
the production to the owner of each tract;pooled by the order.	2516
The pro rata portion shall be in the same proportion that the	2517
percentage of the owner's acreage is to the state minimum acreage	2518
requirements established in rules adopted under this chapter for a	2519
drilling unit unless the applicant demonstrates to the chief using	2520
geological evidence that the geologic structure containing the oil	2521
or gas is larger than the minimum acreage requirement in which	2522
case the pro rata portion shall be in the same proportion that the	2523
percentage of the owner's acreage is to the geologic structure.	2524

(E) Specify the basis upon which each owner of a tract pooled	2525
by the order shall share all reasonable costs and expenses of	2526
drilling and producing if the owner elects to participate in the	2527
drilling and operation of the well;	2528

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

2529

A person shall not submit more than five applications for	2530
mandatory pooling orders per year under this section unless	2531
otherwise approved by the chief.	2532

No surface operations or disturbances to the surface of the	2533
land shall occur on a tract pooled by an order without the written	2534
consent of or a written agreement with the owner of the tract that	2535
approves the operations or disturbances.	2536

If an owner of a tract pooled by the order does not elect to	2537
participate in the risk and cost of the drilling and operation, or	2538
operation, of a well, the owner may elect toshall be designated	2539
as a nonparticipating owner in the drilling and operation, or	2540
operation, of the well, on a limited or carried basis uponand is	2541
subject to terms and conditions determined by the chief to be just	2542
and reasonable. In addition, if an owner is designated as a	2543
nonparticipating owner, the owner is not liable for actions or	2544
conditions associated with the drilling or operation of the well.	2545
If one or more of the participating owners bearapplicant bears	2546
the costs of drilling, equipping, orand operating a well for the	2547
benefit of a nonparticipating owner, as provided for in the	2548
pooling order, then such participating owner or ownersthe	2549
applicant shall be entitled to the share of production from the	2550
drilling unit accruing to the interest of suchthat	2551
nonparticipating owner, exclusive of the nonparticipating owner's	2552
proportionate share of the royalty interest if the fee holder has	2553
leased the fee holder's land to others, otherwise, one-eighth of	2554
the fee holder's share of the production, until there has been	2555
received the share of costs charged to suchthat nonparticipating	2556
owner plus such additional percentage of the share of costs as the	2557
chief shall determine. The total amount receivable hereunder shall	2558
in no event exceed doubletwo hundred per cent of the share of	2559
costs charged to suchthat nonparticipating owner. After receipt	2560
of that share of costs by such an applicant, a nonparticipating	2561
owner shall receive a proportionate share of the working interest	2562
in the well in addition to a proportionate share of the royalty	2563
interest, if any.	2564

If there is a dispute as to costs of drilling, equipping, or	2565
operating a well, the chief shall determine suchthose costs.	2566

In instances where a well is completed prior to the pooling	2567
of interests in a drilling unit under this section, the sharing of	2568
production and adjustment of the original costs of drilling,	2569
equipping, and completing the well shall be from the effective	2570
date of the mandatory pooling order.	2571

From and after the date of a pooling order, all operation,	2572
including the commencement of drilling or the operating of or	2573
production from a well upon any tract or portion of the drilling	2574
unit, shall be deemed for all purposes the conduct of such	2575
operations upon and production from any lease or contract for	2576
lands any portion of which is included in the drilling unit.	2577

Sec. 1509.31. (A) Whenever the entire interest of an oil and	2578
gas lease is assigned or otherwise transferred, the assignor or	2579
transferor shall notify the holders of the royalty interests, and,	2580
if a well or wells exist on the lease, the division of mineral	2581
resources management, of the name and address of the assignee or	2582
transferee by certified mail, return receipt requested, not later	2583
than thirty days after the date of the assignment or transfer.	2584
When notice of any such assignment or transfer is required to be	2585
provided to the division, it shall be provided on a form	2586
prescribed and provided by the division and verified by both the	2587
assignor or transferor and by the assignee or transferee and shall	2588
be accompanied by a nonrefundable fee of one hundred dollars for	2589
each well. The notice form applicable to assignments or transfers	2590
of a well to the owner of the surface estate of the tract on which	2591
the well is located shall contain a statement informing the	2592
landowner that the well may require periodic servicing to maintain	2593
its productivity; that, upon assignment or transfer of the well to	2594
the landowner, the landowner becomes responsible for compliance	2595
with the requirements of this chapter and rules adopted under it,	2596
including, without limitation, the proper disposal of brine	2597
obtained from the well, the plugging of the well when it becomes	2598
incapable of producing oil or gas, and the restoration of the well	2599
site; and that, upon assignment or transfer of the well to the	2600
landowner, the landowner becomes responsible for the costs of	2601
compliance with the requirements of this chapter and rules adopted	2602
under it and the costs for operating and servicing the well.	2603

(B) When the entire interest of a well is proposed to be	2604
assigned or otherwise transferred to the landowner for use as an	2605
exempt domestic well, the owner who has been issued a permit under	2606
this chapter for the well shall submit to the chief an application	2607
for the assignment or transfer that contains all documents that	2608
the chief requires and a nonrefundable fee of one hundred dollars.	2609
The application for such an assignment or transfer shall be	2610
prescribed and provided by the chief. The chief may approve the	2611
application if the application is accompanied by a release of all	2612
of the oil and gas leases that are included in the applicable	2613
formation of the drilling unit, the release is in a form such that	2614
the well ownership merges with the fee simple interest of the	2615
surface tract, and the release is in a form that may be recorded.	2616
However, if the owner of the well does not release the oil and gas	2617
leases associated with the well that is proposed to be assigned or	2618
otherwise transferred or if the fee simple tract that results from	2619
the merger of the well ownership with the fee simple interest of	2620
the surface tract is less than five acres, the proposed exempt	2621
domestic well owner shall post a five thousand dollar bond with	2622
the division of mineral resources management prior to the	2623
assignment or transfer of the well to ensure that the well will be	2624
properly plugged. The chief, for good cause, may modify the	2625
requirements of this section governing the assignment or transfer	2626
of the interests of a well to the landowner. Upon the assignment	2627
or transfer of the well, the owner of an exempt domestic well is	2628
not subject to the severance tax levied under section 5749.02 of	2629
the Revised Code, but is subject to all applicable fees	2630
established in this chapter.	2631

(C) The owner holding a permit under section 1509.05 of the	2632
Revised Code is responsible for all obligations and liabilities	2633
imposed by this chapter and any rules, orders, and terms and	2634
conditions of a permit adopted or issued under it, and no	2635
assignment or transfer by the owner relieves the owner of the	2636
obligations and liabilities until and unless the assignee or	2637
transferee files with the division the information described in	2638
divisions (A)(1), (2), (3), (4), (5), (10), (11), and (12) of	2639
section 1509.06 of the Revised Code; obtains liability insurance	2640
coverage required by section 1509.07 of the Revised Code, except	2641
when none is required by that section; and executes and files a	2642
surety bond, negotiable certificates of deposit or irrevocable	2643
letters of credit, or cash, as described in that section. Instead	2644
of a bond, but only upon acceptance by the chief of the division	2645
of mineral resources management, the assignee or transferee may	2646
file proof of financial responsibility, described in section	2647
1509.07 of the Revised Code. Section 1509.071 of the Revised Code	2648
applies to the surety bond, cash, and negotiable certificates of	2649
deposit and irrevocable letters of credit described in this	2650
section. Unless the chief approves a modification, each assignee	2651
or transferee shall operate in accordance with the plans and	2652
information filed by the permit holder pursuant to section 1509.06	2653
of the Revised Code.	2654

(D) If a mortgaged property that is being foreclosed is	2655
subject to an oil or gas lease, pipeline agreement, or other	2656
instrument related to the production or sale of oil or natural gas	2657
and the lease, agreement, or other instrument was recorded	2658
subsequent to the mortgage, and if the lease, agreement, or other	2659
instrument is not in default, the oil or gas lease, pipeline	2660
agreement, or other instrument, as applicable, has priority over	2661
all other liens, claims, or encumbrances on the property so that	2662
the oil or gas lease, pipeline agreement, or other instrument is	2663
not terminated or extinguished upon the foreclosure sale of the	2664
mortgaged property. If the owner of the mortgaged property was	2665
entitled to oil and gas royalties before the foreclosure sale, the	2666
oil or gas royalties shall be paid to the purchaser of the	2667
foreclosed property.	2668

Sec. 1509.34. (A)(1) If an owner fails to pay the fees	2669
imposed by this chapter, or if the chief of the division of	2670
mineral resources management incurs costs under division (E) of	2671
section 1509.071 of the Revised Code to correct conditions	2672
associated with the owner's well that the chief reasonably has	2673
determined are causing imminent health or safety risks, the	2674
division of mineral resources management shall have a priority	2675
lien against that owner's interest in the applicable well in front	2676
of all other creditors for the amount of any such unpaid fees and	2677
costs incurred. The chief shall file a statement in the office of	2678
the county recorder of the county in which the applicable well is	2679
located of the amount of the unpaid fees and costs incurred as	2680
described in this division. The statement shall constitute a lien	2681
on the owner's interest in the well as of the date of the filing.	2682
The lien shall remain in force so long as any portion of the lien	2683
remains unpaid or until the chief issues a certificate of release	2684
of the lien. If the chief issues a certificate of release of the	2685
lien, the chief shall file the certificate of release in the	2686
office of the applicable county recorder.	2687

(2) A lien imposed under division (A)(1) of this section	2688
shall be in addition to any lien imposed by the attorney general	2689
for failure to pay the assessment imposed by section 1509.50 of	2690
the Revised Code or the tax levied under division (A)(5) or (6) of	2691
section 5749.02 of the Revised Code, as applicable.	2692

(3) If the attorney general cannot collect from a severer or	2693
an owner for an outstanding balance of amounts due under section	2694
1509.50 of the Revised Code or of unpaid taxes levied under	2695
division (A)(5) or (6) of section 5749.02 of the Revised Code, as	2696
applicable, the tax commissioner may request the chief to impose a	2697
priority lien against the owner's interest in the applicable well.	2698
Such a lien has priority in front of all other creditors.	2699

(B) The chief promptly shall issue a certificate of release	2700
of a lien under either of the following circumstances:	2701

(1) Upon the repayment in full of the amount of unpaid fees	2702
imposed by this chapter or costs incurred by the chief under	2703
division (E) of section 1509.071 of the Revised Code to correct	2704
conditions associated with the owner's well that the chief	2705
reasonably has determined are causing imminent health or safety	2706
risks;	2707

(2) Any other circumstance that the chief determines to be in	2708
the best interests of the state.	2709

(C) The chief may modify the amount of a lien under this	2710
section. If the chief modifies a lien, the chief shall file a	2711
statement in the office of the county recorder of the applicable	2712
county of the new amount of the lien.	2713

(D) An owner regarding which the division has recorded a lien	2714
against the owner's interest in a well in accordance with this	2715
section shall not transfer a well, lease, or mineral rights to	2716
another owner or person until the chief issues a certificate of	2717
release for each lien against the owner's interest in the well.	2718

(E) All money from the collection of liens under this section	2719
shall be deposited in the state treasury to the credit of the oil	2720
and gas well fund created in section 1509.02 of the Revised Code.	2721

Sec. 1509.35. (A) There is hereby created an oil and gas	2722
commission consisting of five members appointed by the governor.	2723
Terms of office shall be for five years, commencing on the	2724
fifteenth day of October and ending on the fourteenth day of	2725
October, except that the terms of the first five members of the	2726
board shall be for one, two, three, four, and five years,	2727
respectively, as designated by the governor at the time of the	2728
appointment. Each member shall hold office from the date of	2729
appointment until the end of the term for which the member was	2730
appointed. Any member appointed to fill a vacancy occurring prior	2731
to the expiration of the term for which the member's predecessor	2732
was appointed shall hold office for the remainder of suchthat	2733
term. Any member shall continue in office subsequent to the	2734
expiration date of the member's term until a successor takes	2735
office, or until a period of sixty days has elapsed, whichever	2736
occurs first. Each vacancy occurring on the commission shall be	2737
filled by appointment within sixty days after the vacancy occurs.	2738
One of the appointees to the commission shall be a person who, by	2739
reason of the person's previous vocation, employment, or	2740
affiliations, can be classed as a representative of a major	2741
petroleum company. One of the appointees to the commission shall	2742
be a person who, by reason of the person's previous vocation,	2743
employment, or affiliations, can be classed as a representative of	2744
the public. One of the appointees to the commission shall be a	2745
person who, by reason of the person's previous training and	2746
experience, can be classed as a representative of independent	2747
petroleum operators. One of the appointees to the commission shall	2748
be a person who, by reason of the person's previous training and	2749
experience, can be classed as one learned and experienced in oil	2750
and gas law. One of the appointees to the commission shall be a	2751
person who, by reason of the person's previous training and	2752
experience, can be classed as one learned and experienced in	2753
geology or petroleum engineering. Not more than three members	2754
shall be members of the same political party. This division does	2755
not apply to temporary members appointed under division (C) of	2756
this section.	2757

(B) Three members constitute a quorum and no action of the	2758
commission is valid unless it has the concurrence of at least a	2759
majority of the members voting on that action. The commission	2760
shall keep a record of its proceedings.	2761

(C) If the chairperson of the commission determines that a	2762
quorum cannot be obtained for the purpose of considering a matter	2763
that will be before the commission because of vacancies or recusal	2764
of its members, the chairperson may contact the technical advisory	2765
council on oil and gas created in section 1509.38 of the Revised	2766
Code and request a list of members of the council who may serve as	2767
temporary members of the commission. Using the list provided by	2768
the council, the chairperson may appoint temporary members to the	2769
commission. The appointment of temporary members shall be for only	2770
the matter for which a quorum cannot be obtained. The number of	2771
temporary members appointed by the chairperson shall not exceed	2772
the number that is necessary to obtain a quorum for the matter. A	2773
temporary member of the commission has the same authority, rights,	2774
and obligations as a member of the commission, including the right	2775
to compensation and other expenses as provided in this section.	2776
The authority, rights, and obligations of a temporary member cease	2777
when the temporary member's service on the commission ends.	2778

(D) Each member shall be paid an amount fixed pursuant to	2779
division (J) of section 124.15 of the Revised Code per diem when	2780
actually engaged in the performance of work as a member and when	2781
engaged in travel necessary in connection with suchthat work. In	2782
addition to such compensation each member shall be reimbursed for	2783
all traveling, hotel, and other expenses necessarily incurred in	2784
the performance of work as a member.	2785

(E) The commission shall select from among its members a	2786
chairperson, a vice-chairperson, and a secretary. These officers	2787
shall serve for terms of one year.	2788

(F) The governor may remove any member of the commission from	2789
office for inefficiency, neglect of duty, malfeasance,	2790
misfeasance, or nonfeasance.	2791

(G) The commission, in accordance with Chapter 119. of the	2792
Revised Code, shall adopt rules to govern its procedure.	2793

Sec. 1509.36.  Any person claiming to be aggrieved or	2794
adversely affected by an order by the chief of the division of	2795
mineral resources management may appeal to the oil and gas	2796
commission for an order vacating or modifying suchthe order.	2797

The person so appealing to the commission shall be known as	2798
appellant and the chief shall be known as appellee. Appellant and	2799
appellee shall be deemed to be parties to the appeal.	2800

The appeal shall be in writing and shall set forth the order	2801
complained of and the grounds upon which the appeal is based. The	2802
appeal shall be filed with the commission within thirty days after	2803
the date upon which the appellant received notice by registered	2804
certified mail of the makingand, for all other persons adversely	2805
affected by the order, within thirty days after the date of the	2806
order complained of. Notice of the filing of the appeal shall be	2807
filed with the chief within three days after the appeal is filed	2808
with the commission.	2809

Upon the filing of the appeal the commission promptly shall	2810
fix the time and place at which the hearing on the appeal will be	2811
held, and shall give the appellant and the chief at least ten	2812
days' written notice thereof by mail. The commission may postpone	2813
or continue any hearing upon its own motion or upon application of	2814
the appellant or of the chief.	2815

The filing of an appeal provided for in this section does not	2816
automatically suspend or stay execution of the order appealed	2817
from, but upon application by the appellant the commission may	2818
suspend or stay suchthe execution pending determination of the	2819
appeal upon such terms as the commission considers proper.	2820

Either party to the appeal or any interested person who,	2821
pursuant to commission rules has been granted permission to	2822
appear, may submit such evidence as the commission considers	2823
admissible.	2824

For the purpose of conducting a hearing on an appeal, the	2825
commission may require the attendance of witnesses and the	2826
production of books, records, and papers, and it may, and at the	2827
request of any party it shall, issue subpoenas for witnesses or	2828
subpoenas duces tecum to compel the production of any books,	2829
records, or papers, directed to the sheriffs of the counties where	2830
suchthe witnesses are found. The subpoenas shall be served and	2831
returned in the same manner as subpoenas in criminal cases are	2832
served and returned. The fees of sheriffs shall be the same as	2833
those allowed by the court of common pleas in criminal cases.	2834
Witnesses shall be paid the fees and mileage provided for under	2835
section 119.094 of the Revised Code. Such fees and mileage	2836
expenses incurred at the request of appellant shall be paid in	2837
advance by the appellant, and the remainder of suchthose expenses	2838
shall be paid out of funds appropriated for the expenses of the	2839
division of mineral resources management.	2840

In case of disobedience or neglect of any subpoena served on	2841
any person, or the refusal of any witness to testify to any matter	2842
regarding which the witness may be lawfully interrogated, the	2843
court of common pleas of the county in which suchthe	2844
disobedience, neglect, or refusal occurs, or any judge thereof, on	2845
application of the commission or any member thereof, shall compel	2846
obedience by attachment proceedings for contempt as in the case of	2847
disobedience of the requirements of a subpoena issued from such	2848
that court or a refusal to testify therein. Witnesses at such	2849
hearings shall testify under oath, and any member of the	2850
commission may administer oaths or affirmations to persons who so	2851
testify.	2852

At the request of any party to the appeal, a stenographic	2853
record of the testimony and other evidence submitted shall be	2854
taken by an official court shorthand reporter at the expense of	2855
the party making the request therefor. SuchThe record shall	2856
include all of the testimony and other evidence and the rulings on	2857
the admissibility thereof presented at the hearing. The commission	2858
shall pass upon the admissibility of evidence, but any party may	2859
at the time object to the admission of any evidence and except to	2860
the rulings of the commission thereon, and if the commission	2861
refuses to admit evidence the party offering same may make a	2862
proffer thereof, and such proffer shall be made a part of the	2863
record of suchthe hearing.	2864

If upon completion of the hearing the commission finds that	2865
the order appealed from was lawful and reasonable, it shall make a	2866
written order affirming the order appealed from; if the commission	2867
finds that the order was unreasonable or unlawful, it shall make a	2868
written order vacating the order appealed from and making the	2869
order that it finds the chief should have made. Every order made	2870
by the commission shall contain a written finding by the	2871
commission of the facts upon which the order is based.	2872

Notice of the making of the order shall be given forthwith to	2873
each party to the appeal by mailing a certified copy thereof to	2874
each such party by certified mail.	2875

The order of the commission is final unless vacated by the	2876
court of common pleas of Franklin county in an appeal as provided	2877
for in section 1509.37 of the Revised Code. Sections 1509.01 to	2878
1509.37 of the Revised Code, providing for appeals relating to	2879
orders by the chief or by the commission, or relating to rules	2880
adopted by the chief, do not constitute the exclusive procedure	2881
that any person who believes the person's rights to be unlawfully	2882
affected by those sections or any official action taken thereunder	2883
must pursue in order to protect and preserve those rights, nor do	2884
those sections constitute a procedure that that person must pursue	2885
before that person may lawfully appeal to the courts to protect	2886
and preserve those rights.	2887

Sec. 1509.50.  (A) An oil and gas regulatory cost recovery	2888
assessment is hereby imposed by this section on an owner. An owner	2889
shall pay the assessment in the same manner as a severer who is	2890
required to file a return under section 5749.06 of the Revised	2891
Code. However, an owner may designate a severer who shall pay the	2892
owner's assessment on behalf of the owner on the return that the	2893
severer is required to file under that section. If a severer so	2894
pays an owner's assessment, the severer may recoup from the owner	2895
the amount of the assessment. Except for an exempt domestic well,	2896
the assessment imposed shall be in addition to the taxes levied on	2897
the severance of oil and gas under section 5749.02 of the Revised	2898
Code.	2899

(B)(1) Except for an exempt domestic well, the oil and gas	2900
regulatory cost recovery assessment shall be calculated on a	2901
quarterly basis and shall be one of the following:	2902

(a) If the sum of ten cents per barrel of oil for all of the	2903
wells of the owner, one-half of one cent per one thousand cubic	2904
feet of natural gas for all of the wells of the owner, and the	2905
amount of the severance tax levied on each severer for all of the	2906
wells of the owner under divisions (A)(5) and (6) of section	2907
5749.02 of the Revised Code, as applicable, is greater than the	2908
sum of fifteen dollars for each well owned by the owner, the	2909
amount of the assessment is the sum of ten cents per barrel of oil	2910
for all of the wells of the owner and one-half of one cent per one	2911
thousand cubic feet of natural gas for all of the wells of the	2912
owner.	2913

(b) If the sum of ten cents per barrel of oil for all of the	2914
wells of the owner, one-half of one cent per one thousand cubic	2915
feet of natural gas for all of the wells of the owner, and the	2916
amount of the severance tax levied on each severer for all of the	2917
wells of the owner under divisions (A)(5) and (6) of section	2918
5749.02 of the Revised Code, as applicable, is less than the sum	2919
of fifteen dollars for each well owned by the owner, the amount of	2920
the assessment is the sum of fifteen dollars for each well owned	2921
by the owner less the amount of the tax levied on each severer for	2922
all of the wells of the owner under divisions (A)(5) and (6) of	2923
section 5749.02 of the Revised Code, as applicable.	2924

(2) The oil and gas regulatory cost recovery assessment for a	2925
well that becomes an exempt domestic well on and after the	2926
effective date of this section shall be sixty dollars to be paid	2927
to the division of mineral resources management on the first day	2928
of July of each year.	2929

(C) All money collected pursuant to this section shall be	2930
deposited in the state treasury to the credit of the oil and gas	2931
well fund created in section 1509.02 of the Revised Code.	2932

(D) Except for purposes of revenue distribution as specified	2933
in division (B) of section 5749.02 of the Revised Code, the oil	2934
and gas regulatory cost recovery assessment imposed by this	2935
section shall be treated the same and equivalent for all purposes	2936
as the taxes levied on the severance of oil and gas under that	2937
section. However, the assessment imposed by this section is not a	2938
tax under Chapter 5749. of the Revised Code.	2939

Sec. 1509.60.  If the owner of a parcel of real property	2940
receives a notice concerning the filing of an application for a	2941
permit to drill a new well within an urbanized area as required by	2942
division (A)(9) of section 1509.06 of the Revised Code, the owner	2943
shall provide to each residence in an occupied dwelling that is	2944
located on the owner's parcel of real property, if any, a copy of	2945
that notice within five days of receipt of the notice.	2946

Sec. 1509.61.  (A) The legislative authority of a political	2947
subdivision shall conduct a public meeting concerning a proposed	2948
lease agreement for the development of oil and gas resources on	2949
land that is located in an urbanized area and that is owned by the	2950
political subdivision prior to entering into the lease agreement.	2951
The public meeting shall be conducted in a public venue in the	2952
municipal corporation or township in which the proposed well is to	2953
be located. The public meeting shall not occur at the same meeting	2954
at which the legislative authority of the political subdivision	2955
votes to enter into a proposed lease, if applicable.	2956

The legislative authority of the political subdivision shall	2957
send notice not later than ten days prior to the date of the	2958
public meeting to the owner of each parcel of real property that	2959
is located within five hundred feet of the surface location of the	2960
property that is the subject of the proposed lease agreement. The	2961
notice shall contain a statement that the legislative authority of	2962
the political subdivision is considering entering into an oil or	2963
gas lease agreement, and provide the location, date, and time of	2964
the public meeting. In addition, the statement shall contain a	2965
statement that informs an owner of real property who is required	2966
to receive notice of the public meeting under this division that,	2967
within five days of receipt of the notice, the owner is required	2968
to provide notice under division (C) of this section to each	2969
residence in an occupied dwelling that is located on the owner's	2970
parcel of real property.	2971

(B) The legislative authority of a political subdivision that	2972
is required to provide notice under division (A) of this section	2973
shall provide the notice in accordance with requirements	2974
established by the legislative authority governing public meetings	2975
that are held by the legislative authority.	2976

(C) If the owner of a parcel of real property receives a	2977
notice under division (A) of this section, the owner shall provide	2978
to each residence in an occupied dwelling that is located on the	2979
owner's parcel of real property, if any, a copy of that notice	2980
within five days of receipt of the notice.	2981

Sec. 1565.07.  The superintendent in charge of a mine shall	2982
direct the mine foreperson in such manner as is necessary to	2983
secure compliance with this chapter and Chapters 1561., 1563., and	2984
1567. and sectionssection 1509.18 and 1509.19 of the Revised	2985
Code. The superintendent may act as mine foreperson, but if the	2986
superintendent does so act regularly, the superintendent shall	2987
obtain a certificate from the chief of the division of mineral	2988
resources management in the same manner as the certification of	2989
mine foreperson is obtained.	2990

A person designated as a superintendent of an underground	2991
coal mine after January 1, 1977, shall, within six months after	2992
being so designated, demonstrate to the chief that the person has	2993
knowledge of the mining laws of this state governing the operation	2994
of underground coal mines either by presenting evidence that the	2995
person has passed a mine foreperson examination given by the chief	2996
or an examination given by the chief concerning the laws of this	2997
state governing the operation of underground coal mines.	2998

No person shall refuse or neglect to comply with this	2999
section.	3000

Sec. 1565.13.  In case of an injury to person or property,	3001
occasioned by a violation of this chapter and Chapters 1561.,	3002
1563., and 1567., and sectionssection 1509.18 and 1509.19 of the	3003
Revised Code, or any failure to comply with suchthose chapters or	3004
sectionsthat section, by any operator of a mine, a right of	3005
action shall accrue to the person injured, for any direct damage	3006
hethe person injured has sustained thereby. In case of loss of	3007
life by reason of such failure or neglect, a right of action shall	3008
accrue to the widow, and children, or if there are none, then to	3009
the parents and next of kin, of the person whose death was so	3010
caused, for like recovery of damages for the injury they have	3011
sustained. Any operator of a mine who has complied with Chapter	3012
4123. of the Revised Code, is exempt as provided in section	3013
4123.74 of the Revised Code, and not liable for damages at common	3014
law or by statute for injury or death of any employee.	3015

Sec. 1571.05.  (A) Whenever any part of a gas storage	3016
reservoir or any part of its protective area underlies any part of	3017
a coal mine, or is, or within nine months is expected or intended	3018
to be, within two thousand linear feet of the boundary of a coal	3019
mine that is operating in a coal seam any part of which extends	3020
over any part of the storage reservoir or its protective area, the	3021
operator of suchthe reservoir, if the reservoir operator or some	3022
other reservoir operator has not theretofore done so, shall:	3023

(1) Use every known method that is reasonable under the	3024
circumstance for discovering and locating all wells drilled within	3025
the area of suchthe reservoir or its protective area that	3026
underlie any part of suchthe coal mine or its protective area;	3027

(2) Plug or recondition all known wells drilled within the	3028
area of suchthe reservoir or its protective area that underlie	3029
any part of suchthe coal mine.	3030

(B) Whenever an operator of a gas storage reservoir is	3031
notified by the operator of a coal mine, as provided in division	3032
(B) of section 1571.03 of the Revised Code, that suchthe coal	3033
mine operator believes that part of the boundary of suchthe mine	3034
is within two thousand linear feet of a well that is drilled	3035
through the horizon of suchthe coal mine and into or through the	3036
storage stratum or strata of suchthe reservoir within the	3037
boundary of suchthe reservoir or within its protective area, such	3038
the reservoir operator shall plug or recondition suchthe well as	3039
in this section prescribed, unless it is agreed in a conference or	3040
is ordered by the chief of the division of mineral resources	3041
management after a hearing, as provided in section 1571.10 of the	3042
Revised Code, that the well referred to in the notice is not such	3043
a well as is described in division (B) of section 1571.03 of the	3044
Revised Code.	3045

Whenever an operator of a gas storage reservoir is notified	3046
by the operator of a coal mine as provided in division (C) or (D)	3047
of section 1571.03 of the Revised Code, that part of the boundary	3048
of suchthe mine is, or within nine months is intended or expected	3049
to be, within two thousand linear feet of a well that is drilled	3050
through the horizon of suchthe mine and into or through the	3051
storage stratum or strata of suchthe reservoir within the	3052
boundary of suchthe reservoir or within its protective area, such	3053
the reservoir operator shall plug or recondition suchthe well as	3054
in this section prescribed.	3055

Whenever the operator of a coal mine considers that the use	3056
of a well such as in this section described, if used for injecting	3057
gas into, or storing gas in, or removing gas from, a gas storage	3058
reservoir, would be hazardous to the safety of persons or property	3059
on or in the vicinity of the premises of suchthe coal mine or	3060
suchthe reservoir or well, the coal mine operator may file with	3061
the division objections to the use of suchthe well for such	3062
purposes, and a request that a conference be held as provided in	3063
section 1571.10 of the Revised Code, to discuss and endeavor to	3064
resolve by mutual agreement whether or not suchthe well shall or	3065
shall not be used for such purposes, and whether or not suchthe	3066
well shall be reconditioned, inactivated, or plugged. SuchThe	3067
request shall set forth the mine operator's reasons for such	3068
objections. If no approved agreement is reached in suchthe	3069
conference, the gas storage well inspector shall within ten days	3070
after the termination of suchthe conference, file with the chief	3071
a request that the chief hear and determine the matters considered	3072
at the conference as provided in section 1571.10 of the Revised	3073
Code. Upon conclusion of the hearing, the chief shall find and	3074
determine whether or not the safety of persons or of the property	3075
on or in the vicinity of the premises of suchthe coal mine, or	3076
suchthe reservoir, or suchthe well requires that suchthe well	3077
be reconditioned, inactivated, or plugged, and shall make an order	3078
consistent with suchthat determination, provided that the chief	3079
shall not order a well plugged unless the chief first finds that	3080
there is underground leakage of gas therefrom.	3081

The plugging or reconditioning of each well described in a	3082
notice from a coal mine operator to a reservoir operator as	3083
provided in division (B) of section 1571.03 of the Revised Code,	3084
which must be plugged or reconditioned, shall be completed within	3085
such time as the gas storage well inspector may fix in the case of	3086
each such well. The plugging or reconditioning of each well	3087
described in a notice from a coal mine operator to a reservoir	3088
operator as provided in division (C) of section 1571.03 of the	3089
Revised Code, which must be plugged or reconditioned, shall be	3090
completed by the time suchthe well, by reason of the extension of	3091
the boundary of suchthe coal mine, is within two thousand linear	3092
feet of any part of the boundary of suchthe mine. The plugging or	3093
reconditioning of each well described in a notice from a coal mine	3094
operator to a reservoir operator, as provided in division (D) of	3095
section 1571.03 of the Revised Code, which must be plugged or	3096
reconditioned, shall be completed by the time suchthe well, by	3097
reason of the opening of suchthe new mine, is within two thousand	3098
linear feet of any part of the boundary of suchthe new mine. A	3099
reservoir operator who is required to complete the plugging or	3100
reconditioning of a well within a period of time fixed as in this	3101
division prescribed, may prior to the end of suchthat period of	3102
time, notify the division and the mine operator from whom the	3103
reservoir operator received a notice as provided in division (B),	3104
(C), or (D) of section 1571.03 of the Revised Code, in writing by	3105
registered mail, that the completion of the plugging or	3106
reconditioning of the well referred to in suchthe notice will be	3107
delayed beyond the end of the period of time fixed therefor as in	3108
this section provided, and that the reservoir operator requests	3109
that a conference be held for the purpose of endeavoring to reach	3110
an agreement establishing a date subsequent to the end of such	3111
that period of time, on or before which suchthe reservoir	3112
operator may complete suchthe plugging or reconditioning without	3113
incurring any penalties for failure to do so as provided in this	3114
chapter. If such a reservoir operator sends to such a mine	3115
operator and to the division a notice and request for a conference	3116
as in this division provided, suchthe reservoir operator shall	3117
not incur any penalties for failure to complete the plugging or	3118
reconditioning of suchthe well within the period of time fixed as	3119
in this division prescribed, unless suchthe reservoir operator	3120
fails to complete the plugging or reconditioning of suchthe well	3121
within the period of time fixed by an approved agreement reached	3122
in suchthe conference, or fixed by an order by the chief upon a	3123
hearing held in the matter in the event of failure to reach an	3124
approved agreement in the conference.	3125

Whenever, in compliance with this division, a well is to be	3126
plugged by a reservoir operator, suchthe operator shall give to	3127
the division notice thereof, as many days in advance as will be	3128
necessary for the gas storage well inspector or a deputy mine	3129
inspector to be present at suchthe plugging. SuchThe	3130
notification shall be made on blanks furnished by the division and	3131
shall show the following information:	3132

(1) Name and address of the applicant;

3133

(2) The location of the well identified by section or lot	3134
number, city or village, and township and county;	3135

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

3136

(C) The operator shall give written notice at the same time	3137
to the owner of the land upon which the well is located, the	3138
owners or agents of the adjoining land, and adjoining well owners	3139
or agents of the operator's intention to abandon the well, and of	3140
the time when the operator will be prepared to commence plugging	3141
and filling the same. In addition to giving such notices, suchthe	3142
reservoir operator shall also at the same time send a copy of such	3143
the notice by registered mail to the coal mine operator, if any,	3144
who sent to the reservoir operator the notice as provided in	3145
division (B), (C), or (D) of section 1571.03 of the Revised Code,	3146
in order that suchthe coal mine operator or the coal mine	3147
operator's designated representative, may attend and observe the	3148
manner in which suchthe plugging of suchthe well is done.	3149

If the reservoir operator plugs suchthe well without an	3150
inspector from the division being present to supervise the	3151
plugging, the reservoir operator shall send to the division and to	3152
the coal mine operator a copy of the report of the plugging of	3153
suchthe well, including in suchthe report:	3154

(1) The date of abandonment;

3155

(2) The name of the owner or operator of suchthe well at the	3156
time of abandonment and the well owner's or operator's post office	3157
address;	3158

(3) The location of suchthe well as to township and county	3159
and the name of the owner of the surface upon which suchthe well	3160
is drilled, with the address thereof;	3161

(4) The date of the permit to drill;

3162

(5) The date when drilled;

3163

(6) Whether suchthe well has been mapped;

3164

(7) The depth of the well;

3165

(8) The depth of the top of the sand to which the well was	3166
drilled;	3167

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

3168

(10) A detailed report as to how suchthe well was plugged,	3169
giving in particular the manner in which the coal and various	3170
sands were plugged, and the date of the plugging of suchthe well,	3171
including therein the names of those who witnessed the plugging of	3172
the well.	3173

SuchThe report shall be signed by the operator or the	3174
operator's agent who plugged suchthe well and verified by the	3175
oath of the party so signing. For the purposes of this section, a	3176
deputy mine inspector may take acknowledgements and administer	3177
oaths to the parties signing suchthe report.	3178

Whenever, in compliance with this division, a well is to be	3179
reconditioned by a reservoir operator, suchthe operator shall	3180
give to the division notice thereof as many days before suchthe	3181
reconditioning is begun as will be necessary for the gas storage	3182
well inspector, or a deputy mine inspector, to be present at such	3183
the reconditioning. No well shall be reconditioned if an inspector	3184
of the division is not present unless permission to do so has been	3185
granted by the chief. The reservoir operator, at the time of	3186
giving notice to the division as in this section required, also	3187
shall send a copy of suchthe notice by registered mail to the	3188
coal mine operator, if any, who sent to the reservoir operator the	3189
notice as provided in division (B), (C), or (D) of section 1571.03	3190
of the Revised Code, in order that suchthe coal mine operator or	3191
the coal mine operator's designated representative, may attend and	3192
observe the manner in which suchthe reconditioning of suchthe	3193
well is done.	3194

If the reservoir operator reconditions suchthe well when no	3195
inspector of the division is present to supervise the	3196
reconditioning, the reservoir operator shall make written report	3197
to the division describing the manner in which suchthe	3198
reconditioning was done, and shall send to the coal mine operator	3199
a copy of suchthe report by registered mail.	3200

(D) Wells that are required by this section to be plugged	3201
shall be plugged in the manner specified in sections 1509.13 to	3202
1509.191509.17 of the Revised Code, and the operator shall give	3203
the notifications and reports required by divisions (B) and (C) of	3204
this section. No such well shall be plugged or abandoned without	3205
the written approval of the division, and no such well shall be	3206
mudded, plugged, or abandoned without the gas storage well	3207
inspector or a deputy mine inspector present unless written	3208
permission has been granted by the chief or the gas storage well	3209
inspector. If such a well has been plugged prior to the time	3210
plugging thereof is required by this section, and, on the basis of	3211
the data, information, and other evidence available it is	3212
determined that suchthe plugging was done in the manner required	3213
by this section, or was done in accordance with statutes	3214
prescribing the manner of plugging wells in effect at the time	3215
suchthe plugging was done, and that there is no evidence of	3216
leakage of gas from suchthe well either at or below the surface,	3217
and that suchthe plugging is sufficiently effective to prevent	3218
the leakage of gas from suchthe well, the obligations imposed	3219
upon suchthe reservoir operator by this section as to plugging	3220
the well, shall be considered fully satisfied. The operator of a	3221
coal mine any part of the boundary of which is, or within nine	3222
months is expected or intended to be, within two thousand linear	3223
feet of suchthe well, may at any time raise a question as to	3224
whether the plugging of suchthe well is sufficiently effective to	3225
prevent the leakage of gas therefrom, and the issue so made shall	3226
be determined by a conference or hearing as provided in section	3227
1571.10 of the Revised Code.	3228

(E) Wells that are to be reconditioned as required by this	3229
section shall be, or shall be made to be:	3230

(1) Cased in accordance with the statutes of this state in	3231
effect at the time suchthe wells were drilled, with suchthe	3232
casing being, or made to be, sufficiently effective in that there	3233
is no evidence of any leakage of gas therefrom;	3234

(2) Equipped with a producing string and well head composed	3235
of new pipe, or pipe as good as new, and fittings designed to	3236
operate with safety and to contain the stored gas at maximum	3237
pressures contemplated.	3238

When a well that is to be reconditioned as required by this	3239
section, has been reconditioned for use in the operation of such	3240
the reservoir prior to the time prescribed in this section, and on	3241
the basis of the data, information, and other evidence available	3242
it is determined that at the time suchthe well was so	3243
reconditioned the requirements prescribed in this division were	3244
met, and that there is no evidence of underground leakage of gas	3245
from suchthe well, and that suchthe reconditioning is	3246
sufficiently effective to prevent underground leakage from the	3247
well, the obligations imposed upon suchthe reservoir operator by	3248
this section as to reconditioning suchthe well shall be	3249
considered fully satisfied. Any operator of a coal mine any part	3250
of the boundary of which is, or within nine months is expected or	3251
intended to be, within two thousand linear feet of suchthe well,	3252
may at any time raise a question as to whether the reconditioning	3253
of suchthe well is sufficiently effective to prevent underground	3254
leakage of gas therefrom, and the issue so made shall be	3255
determined by a conference or hearing as provided in section	3256
1571.10 of the Revised Code.	3257

If the gas storage well inspector at any time finds that a	3258
well that is drilled through the horizon of a coal mine and into	3259
or through the storage stratum or strata of a reservoir within the	3260
boundary of suchthe reservoir or within its protective area, is	3261
located within the boundary of suchthe coal mine or within two	3262
thousand linear feet of suchthe mine boundary, and was drilled	3263
prior to the time the statutes of this state required that wells	3264
be cased, and that suchthe well fails to meet the casing and	3265
equipping requirements prescribed in this division, the gas	3266
storage well inspector shall promptly notify the operator of such	3267
the reservoir thereof in writing, and suchthe reservoir operator	3268
upon receipt of suchthe notice, shall promptly recondition such	3269
the well in the manner prescribed in this division for	3270
reconditioning wells, unless, in a conference or hearing as	3271
provided in section 1571.10 of the Revised Code, a different	3272
course of action is agreed upon or ordered.	3273

(F)(1) When a well within the boundary of a gas storage	3274
reservoir or within suchthe reservoir's protective area	3275
penetrates the storage stratum or strata of suchthe reservoir,	3276
but does not penetrate the coal seam within the boundary of a coal	3277
mine, the gas storage well inspector may, upon application of the	3278
operator of suchthe storage reservoir, exempt suchthe well from	3279
the requirements of this section. Either party affected by such	3280
the action of the gas storage well inspector may request a	3281
conference and hearing with respect to suchthe exemption.	3282

(2) When a well located within the boundary of a storage	3283
reservoir or a reservoir's protective area is a producing well in	3284
a stratum above or below the storage stratum, the obligations	3285
imposed by this section shall not begin until suchthe well ceases	3286
to be a producing well.	3287

(G) When retreat mining reaches a point in a coal mine when	3288
the operator of suchthe mine expects that within ninety days	3289
retreat work will be at the location of a pillar surrounding an	3290
active storage reservoir well, the operator of suchthe mine shall	3291
promptly send by registered mail notice to that effect to the	3292
operator of suchthe reservoir. Thereupon the operators may by	3293
agreement determine whether it is necessary or advisable to	3294
temporarily inactivate the well. If inactivated, the well shall	3295
not be reactivated until a reasonable period of time has elapsed,	3296
such period of time to be determined by agreement by the	3297
operators. In the event that the parties cannot agree upon either	3298
of the foregoing matters, suchthe question shall be submitted to	3299
the gas storage well inspector for a conference in accordance with	3300
section 1571.10 of the Revised Code.	3301

(H)(1) The provisions of this section that require the	3302
plugging or reconditioning of wells shall not apply to such wells	3303
as are used to inject gas into, store gas in, or remove gas from,	3304
a gas storage reservoir when the sole purpose of suchthe	3305
injection, storage, or removal, is testing. The operator of a gas	3306
storage reservoir who injects gas into, stores gas in, or removes	3307
gas from, a reservoir for the sole purpose of testing, shall be	3308
subject to all other provisions of this chapter that are	3309
applicable to operators of reservoirs.	3310

(2) If the injection of gas into, or storage of gas in, a gas	3311
storage reservoir any part of which, or of the protective area of	3312
which, is within the boundary of a coal mine, is begun after	3313
September 9, 1957, and if suchthe injection or storage of gas is	3314
for the sole purpose of testing, the operator of suchthe	3315
reservoir shall send by registered mail to the operator of such	3316
the coal mine and to the division at least sixty days' notice of	3317
the date upon which suchthe testing will be begun.	3318

If at any time within the period of time during which testing	3319
of a reservoir is in progress, any part of suchthe reservoir or	3320
of its protective area comes within any part of the boundary of a	3321
coal mine, the operator of suchthe reservoir shall promptly send	3322
notice to that effect by registered mail to the operator of such	3323
the mine and to the division.	3324

(3) Any coal mine operator who receives a notice as provided	3325
for in division (H)(2) of this section, may within thirty days of	3326
the receipt thereof, file with the division objections to suchthe	3327
testing. The gas storage well inspector also may, within the time	3328
within which a coal mine operator may file suchan objection,	3329
place in the files of the division objections to suchthe testing.	3330
The reservoir operator shall comply throughout the period of the	3331
testing operations with all conditions and requirements agreed	3332
upon and approved in the conference on such objections conducted	3333
as provided in section 1571.10 of the Revised Code, or in an order	3334
made by the chief following a hearing in the matter as provided in	3335
section 1571.10 of the Revised Code. If in complying with suchthe	3336
agreement or order either the reservoir operator or the coal mine	3337
operator encounters or discovers conditions that were not known to	3338
exist at the time of suchthe conference or hearing and that	3339
materially affect suchthe agreement or order, or the ability of	3340
the reservoir operator to comply therewith, either operator may	3341
apply for a rehearing or modification of the order.	3342

(I) In addition to complying with all other provisions of	3343
this chapter and any lawful orders issued thereunder, the operator	3344
of each gas storage reservoir shall keep all wells drilled into or	3345
through the storage stratum or strata within the boundary of the	3346
operator's reservoir or within the reservoir's protective area in	3347
such condition, and operate the same in such manner, as to prevent	3348
the escape of gas therefrom into any coal mine, and shall operate	3349
and maintain suchthe storage reservoir and its facilities in such	3350
manner and at such pressures as will prevent gas from escaping	3351
from suchthe reservoir or its facilities into any coal mine.	3352

Sec. 1571.18. After the effective date of this section and	3353
not later than the thirty-first day of March each year, the owner	3354
of a well that is used for gas storage or of a well that is used	3355
to monitor a gas storage reservoir and that is located in a	3356
reservoir protective area shall pay to the chief of the division	3357
of mineral resources management a gas storage well regulatory fee	3358
of one hundred twenty-five dollars for each well that the owner	3359
owned as of the thirty-first day of December of the previous year	3360
for the purposes of administering this chapter and Chapter 1509.	3361
of the Revised Code. The chief may prescribe and provide a form	3362
for the collection of the fee imposed by this section and may	3363
adopt rules in accordance with Chapter 119. of the Revised Code	3364
that are necessary for the administration of this section.	3365

All money collected under this section shall be deposited in	3366
the state treasury to the credit of the oil and gas well fund	3367
created in section 1509.02 of the Revised Code.	3368

Sec. 4929.041.  (A) The public utilities commission, upon the	3369
application of a natural gas company in substantial compliance	3370
with the policy specified in section 4929.02 of the Revised Code,	3371
shall exempt, by order, any investment in gathering lines or	3372
storage facilities placed into service on or after January 1,	3373
2010, and any service of the natural gas company related to those	3374
gathering lines or storage facilities from all provisions of	3375
Chapter 4905. of the Revised Code with the exception of sections	3376
4905.10, 4905.35, and 4905.90 to 4905.96 of the Revised Code,	3377
Chapters 4909., 4933., and 4935. of the Revised Code, with the	3378
exception of section 4935.03 of the Revised Code, and from any	3379
rule or order issued under the exempted provisions of those	3380
chapters.	3381

(B)(1) Subject to division (C) of this section, a natural gas	3382
company subject to an exemption order issued under division (A) of	3383
this section shall, to the maximum extent practicable, keep	3384
separate the company's operations, resources, and employees, and	3385
the associated books and records, involved in the provision or	3386
marketing of a company-provided service related to an investment	3387
exempted under the exemption order from the operations, resources,	3388
and employees, and the associated books and records, involved in	3389
the provision or marketing of any company-provided service not	3390
exempted under the exemption order or any other section of the	3391
Revised Code.	3392

(2) An exemption order issued under division (A) of this	3393
section shall prescribe a functional separation plan for	3394
compliance with division (B)(1) of this section.	3395

(C)(1) No natural gas company subject to an exemption order	3396
issued under division (A) of this section may use the company's	3397
storage facilities and gathering lines associated with the	3398
exemption order to provide a commodity sales service that is	3399
unregulated or subject to an exemption order issued under section	3400
4929.04 of the Revised Code.	3401

(2) Upon application to the commission by a natural gas	3402
company and upon a finding of good cause shown, the commission	3403
may, by order, waive the prohibition described in division (C)(1)	3404
of this section. The natural gas company shall bear the burden of	3405
proof that the waiver is just and reasonable, which shall	3406
constitute good cause.	3407

(D) The commission shall have continuous jurisdiction to	3408
enforce any terms that it imposes in an exemption order issued	3409
under division (A) of this section. Whenever the commission is of	3410
the opinion, after hearing had upon complaint or upon its own	3411
initiative or complaint, served as provided in section 4905.26 of	3412
the Revised Code, that an exemption order issued under division	3413
(A) of this section has adversely affected the quality, adequacy,	3414
or sufficiency of service provided by the company subject to the	3415
exemption order, the commission may alter, amend, or suspend the	3416
exemption order.	3417

Sec. 5703.052.  (A) There is hereby created in the state	3418
treasury the tax refund fund, from which refunds shall be paid for	3419
taxes illegally or erroneously assessed or collected, or for any	3420
other reason overpaid, that are levied by Chapter 4301., 4305.,	3421
5728., 5729., 5733., 5735., 5739., 5741., 5743., 5747., 5748.,	3422
5749., or 5751., and sections 3737.71, 3905.35, 3905.36, 4303.33,	3423
5707.03, 5725.18, 5727.28, 5727.38, 5727.81, and 5727.811 of the	3424
Revised Code. Refunds for fees illegally or erroneously assessed	3425
or collected, or for any other reason overpaid, that are levied by	3426
sections 3734.90 to 3734.9014 of the Revised Code also shall be	3427
paid from the fund. Refunds for amounts illegally or erroneously	3428
assessed or collected by the tax commissioner, or for any other	3429
reason overpaid, that are due under section 1509.50 of the Revised	3430
Code shall be paid from the fund. However, refunds for taxes	3431
levied under section 5739.101 of the Revised Code shall not be	3432
paid from the tax refund fund, but shall be paid as provided in	3433
section 5739.104 of the Revised Code.	3434

(B)(1) Upon certification by the tax commissioner to the	3435
treasurer of state of a tax refund or, a fee refund, or an other	3436
amount refunded, or by the superintendent of insurance of a	3437
domestic or foreign insurance tax refund, the treasurer of state	3438
shall place the amount certified to the credit of the fund. The	3439
certified amount transferred shall be derived from current	3440
receipts of the same tax or the, fee, or other amount from which	3441
the refund arose. If current receipts from the tax or, fee, or	3442
other amount from which the refund arose are inadequate to make	3443
the transfer of the amount so certified, the treasurer of state	3444
shall transfer such certified amount from current receipts of the	3445
sales tax levied by section 5739.02 of the Revised Code.	3446

(2) When the treasurer of state provides for the payment of a	3447
refund of a tax or, fee, or other amount from the current receipts	3448
of the sales tax, and the refund is for a tax or, fee, or other	3449
amount that is not levied by the state, the tax commissioner shall	3450
recover the amount of that refund from the next distribution of	3451
that tax or, fee, or other amount that otherwise would be made to	3452
the taxing jurisdiction. If the amount to be recovered would	3453
exceed twenty-five per cent of the next distribution of that tax	3454
or, fee, or other amount, the commissioner may spread the recovery	3455
over more than one future distribution, taking into account the	3456
amount to be recovered and the amount of the anticipated future	3457
distributions. In no event may the commissioner spread the	3458
recovery over a period to exceed twenty-four months.	3459

Sec. 5703.21.  (A) Except as provided in divisions (B) and	3460
(C) of this section, no agent of the department of taxation,	3461
except in the agent's report to the department or when called on	3462
to testify in any court or proceeding, shall divulge any	3463
information acquired by the agent as to the transactions,	3464
property, or business of any person while acting or claiming to	3465
act under orders of the department. Whoever violates this	3466
provision shall thereafter be disqualified from acting as an	3467
officer or employee or in any other capacity under appointment or	3468
employment of the department.	3469

(B)(1) For purposes of an audit pursuant to section 117.15 of	3470
the Revised Code, or an audit of the department pursuant to	3471
Chapter 117. of the Revised Code, or an audit, pursuant to that	3472
chapter, the objective of which is to express an opinion on a	3473
financial report or statement prepared or issued pursuant to	3474
division (A)(7) or (9) of section 126.21 of the Revised Code, the	3475
officers and employees of the auditor of state charged with	3476
conducting the audit shall have access to and the right to examine	3477
any state tax returns and state tax return information in the	3478
possession of the department to the extent that the access and	3479
examination are necessary for purposes of the audit. Any	3480
information acquired as the result of that access and examination	3481
shall not be divulged for any purpose other than as required for	3482
the audit or unless the officers and employees are required to	3483
testify in a court or proceeding under compulsion of legal	3484
process. Whoever violates this provision shall thereafter be	3485
disqualified from acting as an officer or employee or in any other	3486
capacity under appointment or employment of the auditor of state.	3487

(2) For purposes of an internal audit pursuant to section	3488
126.45 of the Revised Code, the officers and employees of the	3489
office of internal auditing in the office of budget and management	3490
charged with conducting the internal audit shall have access to	3491
and the right to examine any state tax returns and state tax	3492
return information in the possession of the department to the	3493
extent that the access and examination are necessary for purposes	3494
of the internal audit. Any information acquired as the result of	3495
that access and examination shall not be divulged for any purpose	3496
other than as required for the internal audit or unless the	3497
officers and employees are required to testify in a court or	3498
proceeding under compulsion of legal process. Whoever violates	3499
this provision shall thereafter be disqualified from acting as an	3500
officer or employee or in any other capacity under appointment or	3501
employment of the office of internal auditing.	3502

(3) As provided by section 6103(d)(2) of the Internal Revenue	3503
Code, any federal tax returns or federal tax information that the	3504
department has acquired from the internal revenue service, through	3505
federal and state statutory authority, may be disclosed to the	3506
auditor of state or the office of internal auditing solely for	3507
purposes of an audit of the department.	3508

(4) For purposes of Chapter 3739. of the Revised Code, an	3509
agent of the department of taxation may share information with the	3510
division of state fire marshal that the agent finds during the	3511
course of an investigation.	3512

(C) Division (A) of this section does not prohibit any of the	3513
following:	3514

(1) Divulging information contained in applications,	3515
complaints, and related documents filed with the department under	3516
section 5715.27 of the Revised Code or in applications filed with	3517
the department under section 5715.39 of the Revised Code;	3518

(2) Providing information to the office of child support	3519
within the department of job and family services pursuant to	3520
section 3125.43 of the Revised Code;	3521

(3) Disclosing to the board of motor vehicle collision repair	3522
registration any information in the possession of the department	3523
that is necessary for the board to verify the existence of an	3524
applicant's valid vendor's license and current state tax	3525
identification number under section 4775.07 of the Revised Code;	3526

(4) Providing information to the administrator of workers'	3527
compensation pursuant to sections 4123.271 and 4123.591 of the	3528
Revised Code;	3529

(5) Providing to the attorney general information the	3530
department obtains under division (J) of section 1346.01 of the	3531
Revised Code;	3532

(6) Permitting properly authorized officers, employees, or	3533
agents of a municipal corporation from inspecting reports or	3534
information pursuant to rules adopted under section 5745.16 of the	3535
Revised Code;	3536

(7) Providing information regarding the name, account number,	3537
or business address of a holder of a vendor's license issued	3538
pursuant to section 5739.17 of the Revised Code, a holder of a	3539
direct payment permit issued pursuant to section 5739.031 of the	3540
Revised Code, or a seller having a use tax account maintained	3541
pursuant to section 5741.17 of the Revised Code, or information	3542
regarding the active or inactive status of a vendor's license,	3543
direct payment permit, or seller's use tax account;	3544

(8) Releasing invoices or invoice information furnished under	3545
section 4301.433 of the Revised Code pursuant to that section;	3546

(9) Providing to a county auditor notices or documents	3547
concerning or affecting the taxable value of property in the	3548
county auditor's county. Unless authorized by law to disclose	3549
documents so provided, the county auditor shall not disclose such	3550
documents;	3551

(10) Providing to a county auditor sales or use tax return or	3552
audit information under section 333.06 of the Revised Code;	3553

(11) Subject to section 4301.441 of the Revised Code,	3554
disclosing to the appropriate state agency information in the	3555
possession of the department of taxation that is necessary to	3556
verify a permit holder's gallonage or noncompliance with taxes	3557
levied under Chapter 4301. or 4305. of the Revised Code;	3558

(12) Disclosing to the department of natural resources	3559
information in the possession of the department that is necessary	3560
to verify the taxpayer's compliance with division (A)(1), (8), or	3561
(9) of section 5749.02 of the Revised Code and information	3562
received pursuant to section 1509.50 of the Revised Code	3563
concerning the amount due under that section;	3564

(13) Disclosing to the department of job and family services,	3565
industrial commission, and bureau of workers' compensation	3566
information in the possession of the department of taxation solely	3567
for the purpose of identifying employers that misclassify	3568
employees as independent contractors or that fail to properly	3569
report and pay employer tax liabilities. The department of	3570
taxation shall disclose only such information that is necessary to	3571
verify employer compliance with law administered by those	3572
agencies.	3573

Sec. 5749.01.  As used in this chapter:

3574

(A) "Ton" shall mean two thousand pounds as measured at the	3575
point and time of severance, after the removal of any impurities,	3576
under such rules and regulations as the tax commissioner may	3577
prescribe.	3578

(B) "Taxpayer" means any person required to pay the tax	3579
levied by Chapter 5749. of the Revised Code.	3580

(C) "Natural resource" means all forms of coal, salt,	3581
limestone, dolomite, sand, gravel, natural gas, and oil.	3582

(D) "Owner" has the same meaning as in section 1509.01 of the	3583
Revised Code.	3584

(E) "Person" means any individual, firm, partnership,	3585
association, joint stock company, corporation, or estate, or	3586
combination thereof.	3587

(E)(F) "Return" means any report or statement required to be	3588
filed pursuant to Chapter 5749. of the Revised Code used to	3589
determine the tax due.	3590

(F)(G) "Severance" means the extraction or other removal of a	3591
natural resource from the soil or water of this state.	3592

(G)(H) "Severed" means the point at which the natural	3593
resource has been separated from the soil or water in this state.	3594

(H)(I) "Severer" means any person who actually removes the	3595
natural resources from the soil or water in this state.	3596

Sec. 5749.03.  The following shall be exempt from the tax	3597
imposed by section 5749.02 of the Revised Code and the amount due	3598
under section 1509.50 of the Revised Code:	3599

The severance of natural resources from land or water in this	3600
state owned legally or beneficially by the severer, which natural	3601
resources will be used on the land from which they are taken by	3602
the severer as part of the improvement of or use in histhe	3603
severer's homestead and which have a yearly cumulative market	3604
value of not greater than one thousand dollars. When severed	3605
natural resources so used exceed a cumulative market value of one	3606
thousand dollars during any year, the further severance of natural	3607
resources shall be subject to the tax imposed by section 5749.02	3608
of the Revised Code.	3609

Sec. 5749.06. (A)(1) Each severer liable for the tax imposed	3610
by section 5749.02 of the Revised Code and each severer or owner	3611
liable for the amounts due under section 1509.50 of the Revised	3612
Code shall make and file returns with the tax commissioner in the	3613
prescribed form and as of the prescribed times, computing and	3614
reflecting therein the tax as required by this chapter and amounts	3615
due under section 1509.50 of the Revised Code.	3616

(2) The returns shall be filed for every quarterly period,	3617
which periods shall end on the thirty-first of March, the	3618
thirtieth day of June, the thirtieth day of September, and the	3619
thirty-first day of December of each year, as required by this	3620
section, unless a different return period is prescribed for a	3621
taxpayer by the tax commissioner.	3622

(B)(1) A separate return shall be filed for each calendar	3623
quarterly period, or other period, or any part thereof, during	3624
which the severer holds a license as provided by section 5749.04	3625
of the Revised Code, or is required to hold suchthe license, or	3626
during which an owner is required to file a return, and suchthe	3627
return shall be filed within forty-five days after the last day of	3628
each such calendar month, or other period, or any part thereof,	3629
for which suchthe return is required and shall include remittance	3630
payable to the treasurer of state of the amount of tax due. All	3631
such returns shall contain such information as the commissioner	3632
may require to fairly administer the tax.	3633

(2) All returns shall be signed by the severer or owner, as	3634
applicable, shall contain the full and complete information	3635
requested, and shall be made under penalty of perjury.	3636

(C) If the commissioner believes that quarterly payments of	3637
tax would result in a delay whichthat might jeopardize the	3638
collection of such tax payments, the commissioner may order that	3639
such payments be made weekly, or more frequently if necessary,	3640
such payments to be made not later than seven days following the	3641
close of the period for which the jeopardy payment is required.	3642
Such an order shall be delivered to the taxpayer personally or by	3643
certified mail and shall remain in effect until the commissioner	3644
notifies the taxpayer to the contrary.	3645

(D) Upon good cause the commissioner may extend the period	3646
for filing any notice or return required to be filed under this	3647
section, and may remit all or a part of penalties that may become	3648
due under this chapter.	3649

(E) Any tax and any amount due under section 1509.50 of the	3650
Revised Code not paid by the day the tax or amount is due shall	3651
bear interest computed at the rate per annum prescribed by section	3652
5703.47 of the Revised Code on that amount of tax due from the day	3653
that suchthe amount was originally required to be paid to the day	3654
of actual payment or to the day an assessment was issued under	3655
section 5749.07 or 5749.10 of the Revised Code, whichever occurs	3656
first.	3657

(F) The severer shall make all payments payable to the	3658
treasurer of state. AllExcept for the amounts due under section	3659
1509.50 of the Revised Code, all amounts that the tax commissioner	3660
receives under this section shall be deemed to be revenue from	3661
taxes imposed under this chapter. The tax commissioner shall	3662
immediately forward to the treasurer of state all amounts received	3663
under this section.	3664

Sec. 5749.07.  (A) If any severer required by this chapter to	3665
make and file returns and pay the tax levied by section 5749.02 of	3666
the Revised Code, or any severer or owner liable for the amounts	3667
due under section 1509.50 of the Revised Code, fails to make such	3668
return or pay such tax or amounts, the tax commissioner may make	3669
an assessment against the severer or owner based upon any	3670
information in the commissioner's possession.	3671

No assessment shall be made or issued against any severer for	3672
any tax imposed by section 5749.02 of the Revised Code or against	3673
any severer or owner for any amount due under section 1509.50 of	3674
the Revised Code more than four years after the return was due or	3675
was filed, whichever is later. This section does not bar an	3676
assessment against a severer or owner who fails to file a return	3677
as required by this chapter, or who files a fraudulent return.	3678

The commissioner shall give the party assessed written notice	3679
of such assessment in the manner provided in section 5703.37 of	3680
the Revised Code. With the notice, the commissioner shall provide	3681
instructions on how to petition for reassessment and request a	3682
hearing on the petition.	3683

(B) Unless the party assessed files with the commissioner	3684
within sixty days after service of the notice of assessment,	3685
either personally or by certified mail, a written petition for	3686
reassessment signed by the party assessed or that party's	3687
authorized agent having knowledge of the facts, the assessment	3688
becomes final and the amount of the assessment is due and payable	3689
from the party assessed to the treasurer of state. The petition	3690
shall indicate the objections of the party assessed, but	3691
additional objections may be raised in writing if received by the	3692
commissioner prior to the date shown on the final determination.	3693
If the petition has been properly filed, the commissioner shall	3694
proceed under section 5703.60 of the Revised Code.	3695

(C) After an assessment becomes final, if any portion of the	3696
assessment remains unpaid, including accrued interest, a certified	3697
copy of the tax commissioner's entry making the assessment final	3698
may be filed in the office of the clerk of the court of common	3699
pleas in the county in which the party assessed resides or in	3700
which the party's business is conducted. If the party assessed	3701
maintains no place of business in this state and is not a resident	3702
of this state, the certified copy of the entry may be filed in the	3703
office of the clerk of the court of common pleas of Franklin	3704
county.	3705

Immediately upon the filing of such entry, the clerk shall	3706
enter a judgment for the state against the party assessed in the	3707
amount shown on the entry. The judgment may be filed by the clerk	3708
in a loose-leaf book entitled "special judgments for state	3709
severance tax," and shall have the same effect as other judgments.	3710
Execution shall issue upon the judgment upon the request of the	3711
commissioner, and all laws applicable to sales on execution shall	3712
apply to sales made under the judgment.	3713

The portion of the assessment not paid within sixty days	3714
after the day the assessment is issued shall bear interest at the	3715
rate per annum prescribed by section 5703.47 of the Revised Code	3716
from the day the commissioner issues the assessment until it is	3717
paid. Interest shall be paid in the same manner as the tax and may	3718
be collected by the issuance of an assessment under this section.	3719

(D) All money collected by the tax commissioner under this	3720
section shall be paid to the treasurer of state, and when paid	3721
shall be considered as revenue arising from the tax imposed by	3722
section 5749.02 of the Revised Code and the amount due under	3723
section 1509.50 of the Revised Code, as applicable.	3724

Sec. 5749.08.  The tax commissioner shall refund to taxpayers	3725
the amount of taxes levied by section 5749.02 of the Revised Code	3726
and amounts due under section 1509.50 of the Revised Code that	3727
were paid illegally or erroneously or paid on an illegal or	3728
erroneous assessment. Applications for refund shall be filed with	3729
the tax commissioner, on the form prescribed by the commissioner,	3730
within four years from the date of the illegal or erroneous	3731
payment of the tax. On the filing of the application, the	3732
commissioner shall determine the amount of refund to which the	3733
applicant is entitled, plus interest computed in accordance with	3734
section 5703.47 of the Revised Code from the date of the payment	3735
of an erroneous or illegal assessment until the date the refund is	3736
paid. If the amount is not less than that claimed, the	3737
commissioner shall certify the amount to the director of budget	3738
and management and treasurer of state for payment from the tax	3739
refund fund created by section 5703.052 of the Revised Code. If	3740
the amount is less than that claimed, the commissioner shall	3741
proceed in accordance with section 5703.70 of the Revised Code.	3742

Sec. 5749.10.  If the tax commissioner finds that a taxpayer,	3743
liable for tax under this chapter or for any amount due under	3744
section 1509.50 of the Revised Code is about to depart from the	3745
state, or remove the taxpayer's property therefrom, or conceal the	3746
taxpayer's person or property, or do any other act tending to	3747
prejudice or to render wholly or partly ineffectual proceedings to	3748
collect such tax or other amount due unless such proceedings are	3749
brought without delay, or if the commissioner believes that the	3750
collection of the tax or amount due from any taxpayer will be	3751
jeopardized by delay, the commissioner shall give notice of such	3752
findings to such taxpayer together with the demand for an	3753
immediate return and immediate payment of such tax or other amount	3754
due, with penalty as provided in section 5749.15 of the Revised	3755
Code, whereupon such tax or other amount due shall become	3756
immediately due and payable. In such cases the commissioner may	3757
immediately file an entry with the clerk of the court of common	3758
pleas in the same manner and with the same effect as provided in	3759
section 5749.07 of the Revised Code, provided, that if such	3760
taxpayer, within five days from notice of the assessment,	3761
furnishes evidence satisfactory to the commissioner, under the	3762
regulations prescribed by the commissioner, that the taxpayer is	3763
not in default in making returns or paying any tax prescribed by	3764
this chapter or amount due under section 1509.50 of the Revised	3765
Code, or that the taxpayer will duly return and pay, or post bond	3766
satisfactory to the commissioner conditioned upon payment of the	3767
tax or other amount finally determined to be due, then such tax or	3768
other amount due shall not be payable prior to the time and manner	3769
otherwise fixed for payment under section 5749.07 of the Revised	3770
Code, and the person assessed shall be restored the rights granted	3771
under such section. Upon satisfaction of the assessment the	3772
commissioner shall order the bond cancelled, securities released,	3773
and judgment vacated.	3774

Any assessment issued under this section shall bear interest	3775
as prescribed under section 5749.07 of the Revised Code.	3776

Sec. 5749.12.  Any nonresident of this state who accepts the	3777
privilege extended by the laws of this state to nonresidents	3778
severing natural resources in this state, and any resident of this	3779
state who subsequently becomes a nonresident or conceals the	3780
resident's whereabouts, makes the secretary of state of Ohio the	3781
person's agent for the service of process or notice in any	3782
assessment, action, or proceedings instituted in this state	3783
against such person under this chapter or for purposes of amounts	3784
due under section 1509.50 of the Revised Code.	3785

Such process or notice shall be served as provided under	3786
section 5703.37 of the Revised Code.	3787

Sec. 5749.13.  The tax commissioner may prescribe	3788
requirements as to the keeping of records and other pertinent	3789
documents and the filing of copies of federal income tax returns	3790
and determinations. The commissioner may require any person, by	3791
rule or by notice served on that person, to keep such records as	3792
the commissioner considers necessary to show whether that person	3793
is liable, and the extent of liability, for the tax imposed under	3794
this chapter and the amount due under section 1509.50 of the	3795
Revised Code. Such records and other documents shall be open	3796
during business hours to the inspection of the commissioner, and	3797
shall be preserved for a period of four years after the date the	3798
return was required to be filed or actually was filed, whichever	3799
is later, unless the commissioner, in writing, consents to their	3800
destruction within that period, or by order requires that they be	3801
kept longer.	3802

Sec. 5749.14.  The tax commissioner shall enforce and	3803
administer this chapter and applicable provisions of section	3804
1509.50 of the Revised Code. In addition to any other powers	3805
conferred upon himthe commissioner by law, the commissioner may:	3806

(A) Prescribe all forms required to be filed pursuant to this	3807
chapter;	3808

(B) Promulgate such rules and regulations as hethe	3809
commissioner finds necessary to carry out this chapter and	3810
applicable provisions of section 1509.50 of the Revised Code;	3811

(C) Appoint and employ such personnel as may be necessary to	3812
carry out the duties imposed upon himthe commissioner by this	3813
chapter.	3814

Sec. 5749.15.  Any person who fails to file a return or pay	3815
the tax as required under this chapter or other amount due under	3816
section 1509.50 of the Revised Code who is assessed such taxes or	3817
other amount due pursuant to section 5749.07 or 5749.10 of the	3818
Revised Code may be liable for a penalty of up to twenty-five per	3819
cent of the amount assessed. The tax commissioner may adopt rules	3820
relating to the imposition and remission of penalties imposed	3821
under this section.	3822

Sec. 5749.17. Any information provided to the department of	3823
natural resources by the department of taxation in accordance with	3824
division (C)(11)(12) of section 5703.21 of the Revised Code shall	3825
not be disclosed publicly by the department of natural resources,	3826
but the department of natural resources may provide such	3827
information to the attorney general for purposes of enforcement of	3828
the law.	3829

Section 2. That existing sections 1509.01, 1509.02, 1509.03,	3830
1509.04, 1509.05, 1509.06, 1509.07, 1509.071, 1509.072, 1509.10,	3831
1509.11, 1509.12, 1509.13, 1509.14, 1509.17, 1509.18, 1509.20,	3832
1509.21, 1509.22, 1509.221, 1509.222, 1509.225, 1509.226, 1509.23,	3833
1509.24, 1509.27, 1509.31, 1509.35, 1509.36, 1565.07, 1565.13,	3834
1571.05, 5703.052, 5703.21, 5749.01, 5749.03, 5749.06, 5749.07,	3835
5749.08, 5749.10, 5749.12, 5749.13, 5749.14, 5749.15, and 5749.17	3836
of the Revised Code are hereby repealed.	3837

Section 3. Section 1509.50 of the Revised Code as enacted by	3838
this act becomes operative on July 1, 2010.	3839