Section 1. That sections 1509.01, 1509.02, 1509.03, 1509.04, | 11 |
1509.05, 1509.06, 1509.07, 1509.071, 1509.072, 1509.10, 1509.11, | 12 |
1509.12, 1509.13, 1509.14, 1509.17, 1509.18, 1509.20, 1509.21, | 13 |
1509.22, 1509.221, 1509.222, 1509.225, 1509.226, 1509.23, 1509.24, | 14 |
1509.27, 1509.31, 1509.35, 1509.36, 1565.07, 1565.13, 1571.05, and | 15 |
5749.06 be amended and sections 1509.021, 1509.062, 1509.073, | 16 |
1509.19, 1509.34, 1509.50, 1509.60, and 1509.61 of the Revised | 17 |
Code be enacted to read as follows: | 18 |
(K) "Owner," unless referring to a mine, means the person who | 64 |
has the right to drill on a tract or drilling unit, to drill into | 65 |
and produce from a pool, and to appropriate the oil or gas | 66 |
produced therefrom either for the person or for others, except | 67 |
that a person ceases to be an owner with respect to a well when | 68 |
the well has been plugged in accordance with applicable rules | 69 |
adopted and orders issued under this chapter. "Owner" does not | 70 |
include a person who obtains a lease of the mineral rights for oil | 71 |
and gas on a parcel of land if the person does not attempt to | 72 |
produce or produce oil or gas from a well or obtain a permit under | 73 |
this chapter for a well or if the entire interest of a well is | 74 |
transferred to the person in accordance with division (B) of | 75 |
section 1509.31 of the Revised Code. | 76 |
(S) "Safe Drinking Water Act" means the "Safe Drinking Water | 97 |
Act," 88 Stat. 1661 (1974), 42 U.S.C.A. 300(f), as amended by the | 98 |
"Safe Drinking Water Amendments of 1977," 91 Stat. 1393, 42 | 99 |
U.S.C.A. 300(f), the "Safe Drinking Water Act Amendments of 1986," | 100 |
100 Stat. 642, 42 U.S.C.A. 300(f), and the "Safe Drinking Water | 101 |
Act Amendments of 1996," 110 Stat. 1613, 42 U.S.C.A. 300(f), and | 102 |
regulations adopted under those acts. | 103 |
(V) "Waters of the state" means all streams, lakes, ponds, | 112 |
marshes, watercourses, waterways, springs, irrigation systems, | 113 |
drainage systems, and other bodies of water, surface or | 114 |
underground, natural or artificial, that are situated wholly or | 115 |
partially within this state or within its jurisdiction, except | 116 |
those private waters that do not combine or effect a junction with | 117 |
natural surface or underground waters. | 118 |
Sec. 1509.02. There is hereby created in the department of | 194 |
natural resources the division of mineral resources management, | 195 |
which shall be administered by the chief of the division of | 196 |
mineral resources management. The division has sole and exclusive | 197 |
authority to regulate the permitting, location, and spacing of oil | 198 |
and gas wells and production operations within the state. The | 199 |
regulation of oil and gas activities is a matter of general | 200 |
statewide interest that requires uniform statewide regulation, and | 201 |
this chapter and rules adopted under it constitute a comprehensive | 202 |
plan with respect to all aspects of the locating, drilling, and | 203 |
operating of oil and gas wells within this state, including site | 204 |
restoration and disposal of wastes from those wells. Nothing in | 205 |
this section affects the authority granted to the director of | 206 |
transportation and local authorities in section 4513.34 of the | 207 |
Revised Code. | 208 |
All moneys collected by the chief pursuant to sections | 212 |
1509.06, 1509.061, 1509.062, 1509.071, 1509.13, 1509.22, and | 213 |
1509.221, 1509.222, 1509.34, and 1509.50, ninety per cent of | 214 |
moneys received by the treasurer of state from the tax levied in | 215 |
divisions (A)(5) and (6) of section 5749.02, all civil penalties | 216 |
paid under section 1509.33, and, notwithstanding any section of | 217 |
the Revised Code relating to the distribution or crediting of | 218 |
fines for violations of the Revised Code, all fines imposed under | 219 |
divisions (A) and (B) of section 1509.99 of the Revised Code and | 220 |
fines imposed under divisions (C) and (D) of section 1509.99 of | 221 |
the Revised Code for all violations prosecuted by the attorney | 222 |
general and for violations prosecuted by prosecuting attorneys | 223 |
that do not involve the transportation of brine by vehicle shall | 224 |
be deposited into the state treasury to the credit of the oil and | 225 |
gas well fund, which is hereby created. Fines imposed under | 226 |
divisions (C) and (D) of section 1509.99 of the Revised Code for | 227 |
violations prosecuted by prosecuting attorneys that involve the | 228 |
transportation of brine by vehicle and penalties associated with a | 229 |
compliance agreement entered into pursuant to this chapter shall | 230 |
be paid to the county treasury of the county where the violation | 231 |
occurred. | 232 |
The fund shall be used solely and exclusively for the | 233 |
purposes enumerated in division (B) of section 1509.071 of the | 234 |
Revised Code, for the expenses of the division associated with the | 235 |
administration of the "Natural Gas Policy Act of 1978," 92 Stat. | 236 |
3358, 15 U.S.C. 3301, and for the division's other functionsthis | 237 |
chapter and Chapter 1571. of the Revised Code and rules adopted | 238 |
under them, and for expenses that are critical and necessary for | 239 |
the protection of human health and safety and the environment | 240 |
related to oil and gas production in this state. The expenses of | 241 |
the division in excess of the moneys available in the fund shall | 242 |
be paid from general revenue fund appropriations to the | 243 |
department. | 244 |
Sec. 1509.021. (A) On and after the effective date of this | 245 |
section, the surface location of a new well shall not be within | 246 |
one hundred fifty feet of an occupied dwelling that is located in | 247 |
an urbanized area unless the owner of the land on which the | 248 |
occupied dwelling is located consents in writing to the surface | 249 |
location of the well less than one hundred fifty feet from the | 250 |
occupied dwelling and the chief of the division of mineral | 251 |
resources management approves the written consent of that owner. | 252 |
However, the chief shall not approve the written consent of such | 253 |
an owner when the surface location of a new well will be within | 254 |
one hundred feet of an occupied dwelling that is located in an | 255 |
urbanized area. | 256 |
(B) On and after the effective date of this section, the | 257 |
surface location of a new well shall not be less than one hundred | 258 |
fifty feet from the property line of a parcel of land that is not | 259 |
in the drilling unit of the well if the parcel of land is located | 260 |
in an urbanized area and directional drilling will be used to | 261 |
drill the new well unless the owner of the parcel of land consents | 262 |
in writing to the surface location of the well less than one | 263 |
hundred fifty feet from the property line of the parcel of land | 264 |
and the chief approves the written consent of that owner. However, | 265 |
the chief shall not approve the written consent of such an owner | 266 |
when the surface location of a new well will be less than one | 267 |
hundred feet from the property line of the owner's parcel of land | 268 |
that is not in the drilling unit of the well if the parcel of land | 269 |
is located in an urbanized area and directional drilling will be | 270 |
used. | 271 |
The chief or the chief's authorized representative may at any | 309 |
time enter upon lands, public or private, for the purpose of | 310 |
administration or enforcement of this chapter, the rules adopted | 311 |
or orders made thereunder, or terms or conditions of permits or | 312 |
registration certificates issued thereunder and may examine and | 313 |
copy records pertaining to the drilling, conversion, or operation | 314 |
of a well for injection of fluids and logs required by division | 315 |
(C) of section 1509.223 of the Revised Code. No person shall | 316 |
prevent or hinder the chief or the chief's authorized | 317 |
representative in the performance of official duties. If entry is | 318 |
prevented or hindered, the chief or the chief's authorized | 319 |
representative may apply for, and the court of common pleas may | 320 |
issue, an appropriate inspection warrant necessary to achieve the | 321 |
purposes of this chapter within the court's territorial | 322 |
jurisdiction. | 323 |
Orders of the chief denying, suspending, or revoking a | 331 |
registration certificate; approving or denying approval of an | 332 |
application for revision of a registered transporter's plan for | 333 |
disposal; or to implement, administer, or enforce division (A) of | 334 |
section 1509.224 and sections 1509.22, 1509.222, 1509.223, | 335 |
1509.225, and 1509.226 of the Revised Code pertaining to the | 336 |
transportation of brine by vehicle and the disposal of brine so | 337 |
transported are not adjudication orders for purposes of Chapter | 338 |
119. of the Revised Code. The chief shall issue such orders under | 339 |
division (A) or (B) of section 1509.224 of the Revised Code, as | 340 |
appropriate. | 341 |
The chief may order the immediate suspension of drilling, | 367 |
operating, or plugging activities that are related to a material | 368 |
and substantial violation and suspend and revoke an unused permit | 369 |
after finding that an owner is causing, engaging in, or | 370 |
maintaining a condition or activity that the chief determines | 371 |
presents an imminent danger to the health or safety of the public | 372 |
or that results in or is likely to result in immediate substantial | 373 |
damage to the natural resources of this state. The chief may issue | 374 |
such an order without prior notification if reasonable attempts to | 375 |
notify the owner have failed or if the owner is currently in | 376 |
material breach of a prior enforcement action, but in such an | 377 |
event notification shall be given as soon thereafter as practical. | 378 |
Not later than five days after the issuance of a suspension | 379 |
order, the chief shall provide the owner an opportunity to be | 380 |
heard and to present evidence that the condition or activity does | 381 |
not present an imminent danger to the public health or safety or | 382 |
is not likely to result in immediate substantial damage to natural | 383 |
resources. If the chief, after considering evidence presented by | 384 |
the owner, determines that the activities do not present such a | 385 |
threat, the chief shall revoke the suspension order. The owner may | 386 |
appeal a suspension order to the court of common pleas of the | 387 |
county in which the activity that is the subject of the order is | 388 |
located. | 389 |
If the owner fails to comply with a prior enforcement action, | 395 |
the chief may issue a suspension order without prior notification, | 396 |
but in such an event the chief shall give notice as soon | 397 |
thereafter as practical. Not later than five calendar days after | 398 |
the issuance of an order, the chief shall provide the owner an | 399 |
opportunity to be heard and to present evidence that required | 400 |
records, reports, or logs have been submitted. If the chief, after | 401 |
considering the evidence presented by the owner, determines that | 402 |
the reporting requirements have been satisfied, the chief shall | 403 |
revoke the suspension order. The owner may appeal a suspension | 404 |
order to the court of common pleas of the county in which the | 405 |
activity that is the subject of the suspension order is located. | 406 |
Sec. 1509.05. No person shall drill a new well, drill an | 416 |
existing well any deeper, reopen a well, convert a well to any use | 417 |
other than its original purpose, or plug back a well to a source | 418 |
of supply different from the existing pool, without having a | 419 |
permit to do so issued by the chief of the division of mineral | 420 |
resources management, and until the original permit or a | 421 |
photostatic copy thereof is posted or displayed in a conspicuous | 422 |
and easily accessible place at the well site, with the name, | 423 |
current address, and telephone number of the permit holder and the | 424 |
telephone numbers for fire and emergency medical services | 425 |
maintained on the posted permit or copy. The permit or a copy | 426 |
shall be continuously displayed in suchthat manner at all times | 427 |
during the work authorized by the permit. | 428 |
(9) For an application for a permit to drill a new well | 460 |
within an urbanized area, a sworn statement that the applicant has | 461 |
provided notice by regular mail of the application to the owner of | 462 |
each occupied dwelling unitparcel of real property that is | 463 |
located within five hundred feet of the surface location of the | 464 |
well if the surface location will be less than five hundred feet | 465 |
from the boundary of the drilling unit and more than fifteen | 466 |
occupied dwelling units are located less than five hundred feet | 467 |
from the surface location of the well, excluding any dwelling that | 468 |
is located on real property all or any portion of which is | 469 |
included in the drilling unit. In addition, the notice shall | 470 |
contain a statement that informs an owner of real property who is | 471 |
required to receive the notice under division (A)(9) of this | 472 |
section that within five days of receipt of the notice, the owner | 473 |
is required to provide notice under section 1509.60 of the Revised | 474 |
Code to each residence in an occupied dwelling that is located on | 475 |
the owner's parcel of real property. The notice shall contain a | 476 |
statement that an application has been filed with the division of | 477 |
mineral resources management, identify the name of the applicant | 478 |
and the proposed well location, include the name and address of | 479 |
the division, and contain a statement that comments regarding the | 480 |
application may be sent to the division. The notice may be | 481 |
provided by hand delivery or regular mail. The identity of the | 482 |
owners of occupied dwelling unitsparcels of real property shall | 483 |
be determined using the tax records of the municipal corporation | 484 |
or county in which the dwelling unita parcel of real property is | 485 |
located as of the date of the notice. | 486 |
(B) The chief shall cause a copy of the weekly circular | 506 |
prepared by the division to be provided to the county engineer of | 507 |
each county that contains active or proposed drilling activity. | 508 |
The weekly circular shall contain, in the manner prescribed by the | 509 |
chief, the names of all applicants for permits, the location of | 510 |
each well or proposed well, the information required by division | 511 |
(A)(11) of this section, and any additional information the chief | 512 |
prescribes. In addition, the chief promptly shall transfer an | 513 |
electronic copy or facsimile, or if those methods are not | 514 |
available to a municipal corporation or township, a copy via | 515 |
regular mail, of a drilling permit application to the clerk of the | 516 |
legislative authority of the municipal corporation or to the clerk | 517 |
of the township in which the well or proposed well is or is to be | 518 |
located if the legislative authority of the municipal corporation | 519 |
or the board of township trustees has asked to receive copies of | 520 |
such applications and the appropriate clerk has provided the chief | 521 |
an accurate, current electronic mailing address or facsimile | 522 |
number, as applicable. | 523 |
In addition to a complete application for a permit that meets | 549 |
the requirements of this section and the permit fee prescribed by | 550 |
this section, a request for expedited review shall be accompanied | 551 |
by a separate nonrefundable filing fee of fivetwo hundred fifty | 552 |
dollars. Upon the filing of a request for expedited review, the | 553 |
chief shall cause the county engineer of the county in which the | 554 |
well is or is to be located to be notified of the filing of the | 555 |
permit application and the request for expedited review by | 556 |
telephone or other means that in the judgment of the chief will | 557 |
provide timely notice of the application and request. The chief | 558 |
shall issue a permit within seven days of the filing of the | 559 |
request unless the chief denies the application by order. | 560 |
Notwithstanding the provisions of this section governing expedited | 561 |
review of permit applications, the chief may refuse to accept | 562 |
requests for expedited review if, in the chief's judgment, the | 563 |
acceptance of the requests would prevent the issuance, within | 564 |
twenty-one days of their filing, of permits for which applications | 565 |
are pending. | 566 |
(F) The chief shall issue an order denying a permit if the | 570 |
chief finds that there is a substantial risk that the operation | 571 |
will result in violations of this chapter or rules adopted under | 572 |
it that will present an imminent danger to public health or safety | 573 |
or damage to the environment, provided that where the chief finds | 574 |
that terms or conditions to the permit can reasonably be expected | 575 |
to prevent such violations, the chief shall issue the permit | 576 |
subject to those terms or conditions, including, if applicable, | 577 |
terms and conditions regarding subjects identified in rules | 578 |
adopted under section 1509.03 of the Revised Code. The issuance of | 579 |
a permit shall not be considered an order of the chief. | 580 |
(H) The chief may order the immediate suspension of drilling, | 607 |
operating, or plugging activities after finding that any person is | 608 |
causing, engaging in, or maintaining a condition or activity that | 609 |
in the chief's judgment presents an imminent danger to public | 610 |
health or safety or results in or is likely to result in immediate | 611 |
substantial damage to natural resources or for nonpayment of a fee | 612 |
required by this section. The chief may order the immediate | 613 |
suspension of the drilling or reopening of a well in a coal | 614 |
bearing township after determining that the drilling or reopening | 615 |
activities present an imminent and substantial threat to public | 616 |
health or safety or to miners' health or safety. Before issuing | 617 |
any such order, the chief shall notify the owner in such manner as | 618 |
in the chief's judgment would provide reasonable notification that | 619 |
the chief intends to issue a suspension order. The chief may issue | 620 |
such an order without prior notification if reasonable attempts to | 621 |
notify the owner have failed, but in such an event notification | 622 |
shall be given as soon thereafter as practical. Within five | 623 |
calendar days after the issuance of the order, the chief shall | 624 |
provide the owner an opportunity to be heard and to present | 625 |
evidence that the condition or activity is not likely to result in | 626 |
immediate substantial damage to natural resources or does not | 627 |
present an imminent danger to public health or safety or to | 628 |
miners' health or safety, if applicable. In the case of activities | 629 |
in a coal bearing township, if the chief, after considering | 630 |
evidence presented by the owner, determines that the activities do | 631 |
not present such a threat, the chief shall revoke the suspension | 632 |
order. Notwithstanding any provision of this chapter, the owner | 633 |
may appeal a suspension order directly to the court of common | 634 |
pleas of the county in which the activity is located or, if in a | 635 |
coal bearing township, to the reclamation commission under section | 636 |
1513.13 of the Revised CodeA permittee or a permittee's | 637 |
authorized representative shall notify an inspector from the | 638 |
division of mineral resources management at least twenty-four | 639 |
hours, or another time period agreed to by the chief's authorized | 640 |
representative, prior to the commencement of drilling, reopening, | 641 |
converting, well stimulation, or plugback operations. | 642 |
Sec. 1509.062. (A)(1) The owner of a well that has not been | 643 |
completed, a well that has not produced within one year after | 644 |
completion, or an existing well that has no reported production | 645 |
for two consecutive reporting periods as reported in accordance | 646 |
with section 1509.11 of the Revised Code shall plug the well in | 647 |
accordance with section 1509.12 of the Revised Code, obtain | 648 |
temporary inactive well status for the well in accordance with | 649 |
this section, or perform another activity regarding the well that | 650 |
is approved by the chief of the division of mineral resources | 651 |
management. | 652 |
(C) Upon receipt of an application for temporary inactive | 691 |
well status, the chief shall review the application and shall | 692 |
either deny the application by issuing an order or approve the | 693 |
application. The chief shall approve the application only if the | 694 |
chief determines that the well that is the subject of the | 695 |
application poses no threat to the health or safety of persons, | 696 |
property, or the environment. If the chief approves the | 697 |
application, the chief shall notify the applicant of the chief's | 698 |
approval. Upon receipt of the chief's approval, the owner shall | 699 |
shut in the well and empty all liquids and gases from all storage | 700 |
tanks, pipelines, and other equipment associated with the well. In | 701 |
addition, the owner shall maintain the well, other equipment | 702 |
associated with the well, and the surface location of the well in | 703 |
a manner that prevents hazards to the health and safety of people | 704 |
and the environment. The owner shall inspect the well at least | 705 |
every six months and submit to the chief within fourteen days | 706 |
after the inspection a record of inspection on a form prescribed | 707 |
and provided by the chief. | 708 |
(D) Not later than thirty days prior to the expiration of | 709 |
temporary inactive well status or a renewal of temporary inactive | 710 |
well status approved by the chief for a well, the owner of the | 711 |
well may submit to the chief an application for renewal of the | 712 |
temporary inactive well status on a form prescribed and provided | 713 |
by the chief. The application shall include a detailed plan that | 714 |
describes the ultimate disposition of the well, the time frames | 715 |
for that disposition, and any other information that the chief | 716 |
determines is necessary. The chief shall either deny an | 717 |
application by order or approve the application. If the chief | 718 |
approves the application, the chief shall notify the owner of the | 719 |
well of the chief's approval. | 720 |
(G) Temporary inactive well status approved by the chief | 731 |
expires one year after the date of approval of the application for | 732 |
temporary inactive well status or production from the well | 733 |
commences, whichever occurs sooner. In addition, a renewal of a | 734 |
temporary inactive well status expires one year after the | 735 |
expiration date of the initial temporary inactive well status or | 736 |
one year after the expiration date of the previous renewal of the | 737 |
temporary inactive well status, as applicable, or production from | 738 |
the well commences, whichever occurs sooner. | 739 |
Sec. 1509.07. An owner of any well, except an exempt | 749 |
Mississippian well or an exempt domestic well, shall obtain | 750 |
liability insurance coverage from a company authorized to do | 751 |
business in this state in an amount of not less than three hundred | 752 |
thousandone million dollars bodily injury coverage and three | 753 |
hundred thousand dollars property damage coverage to pay damages | 754 |
for injury to persons or damage to property caused by the | 755 |
drilling, operation, or plugging of all the owner's wells in this | 756 |
state. However, if any well is located within an urbanized area, | 757 |
the owner shall obtain liability insurance coverage in an amount | 758 |
of not less than three million dollars for bodily injury coverage | 759 |
and property damage coverage to pay damages for injury to persons | 760 |
or damage to property caused by the drilling, operation, or | 761 |
plugging of all of the owner's wells in this state. The owner | 762 |
shall maintain thatthe coverage until all the owner's wells are | 763 |
plugged and abandoned as required by lawor are transferred to an | 764 |
owner who has obtained insurance as required under this section | 765 |
and who is not under a notice of material and substantial | 766 |
violation or under a suspension order. The owner shall provide | 767 |
proof of liability insurance coverage to the chief of the division | 768 |
of mineral resources management upon request. Upon failure of the | 769 |
owner to provide that proof when requested, the chief may order | 770 |
the suspension of any outstanding permits and operations of the | 771 |
owner until the owner provides proof of the required insurance | 772 |
coverage. | 773 |
Except as otherwise provided in this section, an owner of any | 774 |
well, before being issued a permit under section 1509.06 of the | 775 |
Revised Code or before operating or producing from a well, shall | 776 |
execute and file with the division of mineral resources management | 777 |
a surety bond conditioned on compliance with the restoration | 778 |
requirements of section 1509.072, the plugging requirements of | 779 |
section 1509.12, the permit provisions of section 1509.13 of the | 780 |
Revised Code, and all rules and orders of the chief relating | 781 |
thereto, in an amount set by rule of the chief. | 782 |
The owner may deposit with the chief, instead of a surety | 783 |
bond, cash in an amount equal to the surety bond as prescribed | 784 |
pursuant to this section or negotiable certificates of deposit or | 785 |
irrevocable letters of credit, issued by any bank organized or | 786 |
transacting business in this state or by any savings and loan | 787 |
association as defined in section 1151.01 of the Revised Code, | 788 |
having a cash value equal to or greater than the amount of the | 789 |
surety bond as prescribed pursuant to this section. Cash or | 790 |
certificates of deposit shall be deposited upon the same terms as | 791 |
those upon which surety bonds may be deposited. If certificates of | 792 |
deposit are deposited with the chief instead of a surety bond, the | 793 |
chief shall require the bank or savings and loan association that | 794 |
issued any such certificate to pledge securities of a cash value | 795 |
equal to the amount of the certificate that is in excess of the | 796 |
amount insured by any of the agencies and instrumentalities | 797 |
created under the "Federal Deposit Insurance Act," 64 Stat. 873 | 798 |
(1950), 12 U.S.C. 1811, as amended, and regulations adopted under | 799 |
it, including at least the federal deposit insurance corporation, | 800 |
bank insurance fund, and savings association insurance fund. The | 801 |
securities shall be security for the repayment of the certificate | 802 |
of deposit. | 803 |
Instead of a surety bond, the chief may accept proof of | 808 |
financial responsibility consisting of a sworn financial statement | 809 |
showing a net financial worth within this state equal to twice the | 810 |
amount of the bond for which it substitutes and, as may be | 811 |
required by the chief, a list of producing properties of the owner | 812 |
within this state or other evidence showing ability and intent to | 813 |
comply with the law and rules concerning restoration and plugging | 814 |
that may be required by rule of the chief. The owner of an exempt | 815 |
domestic or exempt Mississippian well is not required to file | 816 |
scheduled updates of the financial documents, but shall file | 817 |
updates of those documents if requested to do so by the chief. The | 818 |
owner of a nonexempt domestic or nonexempt Mississippian well | 819 |
shall file updates of the financial documents in accordance with a | 820 |
schedule established by rule of the chief. The chief, upon | 821 |
determining that an owner for whom the chief has accepted proof of | 822 |
financial responsibility instead of bond cannot demonstrate | 823 |
financial responsibility, shall order that the owner execute and | 824 |
file a bond or deposit cash, certificates of deposit, or | 825 |
irrevocable letters of credit as required by this section for the | 826 |
wells specified in the order within ten days of receipt of the | 827 |
order. If the order is not complied with, all wells of the owner | 828 |
that are specified in the order and for which no bond is filed or | 829 |
cash, certificates of deposit, or letters of credit are deposited | 830 |
shall be plugged. No owner shall fail or refuse to plug such a | 831 |
well. Each day on which such a well remains unplugged thereafter | 832 |
constitutes a separate offense. | 833 |
Sec. 1509.071. (A) When the chief of the division of mineral | 858 |
resources management finds that an owner has failed to comply with | 859 |
the restoration requirements of section 1509.072, plugging | 860 |
requirements of section 1509.12, or permit provisions of section | 861 |
1509.13 of the Revised Code, or rules and orders relating thereto, | 862 |
the chief shall make a finding of that fact and declare any surety | 863 |
bond filed to ensure compliance with those sections and rules | 864 |
forfeited in the amount set by rule of the chief. The chief | 865 |
thereupon shall certify the total forfeiture to the attorney | 866 |
general, who shall proceed to collect the amount of the | 867 |
forfeiture. In addition, the chief may require an owner, operator, | 868 |
producer, or other person who forfeited a surety bond to post a | 869 |
new surety bond in the amount of fifteen thousand dollars for a | 870 |
single well, thirty thousand dollars for two wells, or fifty | 871 |
thousand dollars for three or more wells. | 872 |
(1) The expenditures may be made pursuant to contracts | 940 |
entered into by the chief with persons who agree to furnish all of | 941 |
the materials, equipment, work, and labor as specified and | 942 |
provided in such a contract for activities associated with the | 943 |
restoration or plugging of a well as determined by the chief. The | 944 |
activities may include excavation to uncover a well, geophysical | 945 |
methods to locate a buried well when clear evidence of leakage | 946 |
from the well exists, cleanout of wellbores to remove material | 947 |
from a failed plugging of a well, plugging operations, | 948 |
installation of vault and vent systems, including associated | 949 |
engineering certifications and permits, restoration of property, | 950 |
and repair of damage to property that is caused by such | 951 |
activities. Expenditures shall not be used for salaries, | 952 |
maintenance, equipment, or other administrative purposes, except | 953 |
for costs directly attributed to the plugging of an idle and | 954 |
orphaned well. Agents or employees of persons contracting with the | 955 |
chief for thea restoration,or plugging, and injection projects | 956 |
project may enter upon any land, public or private, on which the | 957 |
well is located for the purpose of performing the work. Prior to | 958 |
such entry, the chief shall give to the following persons written | 959 |
notice of the existence of a contract for a project to restore,or | 960 |
plug, or inject oil or gas production wastes into a well, the | 961 |
names of the persons with whom the contract is made, and the date | 962 |
that the project will commence: the owner of the well, the owner | 963 |
of the land upon which the well is located, the owner or agents of | 964 |
adjoining land, and, if the well is located in the same township | 965 |
as or in a township adjacent to the excavations and workings of a | 966 |
mine and the owner or lessee of that mine has provided written | 967 |
notice identifying those townships to the chief at any time during | 968 |
the immediately preceding three years, the owner or lessee of the | 969 |
mine. | 970 |
(2)(a) The owner of the land on which a well is located who | 971 |
has received notice under division (C)(1)(b) of this section may | 972 |
plug the well and be reimbursed by the division for the reasonable | 973 |
cost of plugging the well. In order to plug the well, the | 974 |
landowner shall submit an application to the chief on a form | 975 |
prescribed by the chief and approved by the technical advisory | 976 |
council on oil and gas created in section 1509.38 of the Revised | 977 |
Code. The application, at a minimum, shall require the landowner | 978 |
to provide the same information as is required to be included in | 979 |
the application for a permit to plug and abandon under section | 980 |
1509.13 of the Revised Code. The application shall be accompanied | 981 |
by a copy of a proposed contract to plug the well prepared by a | 982 |
contractor regularly engaged in the business of plugging oil and | 983 |
gas wells. The proposed contract shall require the contractor to | 984 |
furnish all of the materials, equipment, work, and labor necessary | 985 |
to plug the well properly and shall specify the price for doing | 986 |
the work, including a credit for the equipment appurtenant to the | 987 |
well that was forfeited to the state through the operation of | 988 |
division (C)(2) of this section. Expenditures under division | 989 |
(D)(2)(a) of this section shall be consistent with the | 990 |
expenditures for activities described in division (D)(1) of this | 991 |
section. The application also shall be accompanied by the permit | 992 |
fee required by section 1509.13 of the Revised Code unless the | 993 |
chief, in the chief's discretion, waives payment of the permit | 994 |
fee. The application constitutes an application for a permit to | 995 |
plug and abandon the well for the purposes of section 1509.13 of | 996 |
the Revised Code. | 997 |
(b) Within thirty days after receiving an application and | 998 |
accompanying proposed contract under division (D)(2)(a) of this | 999 |
section, the chief shall determine whether the plugging would | 1000 |
comply with the applicable requirements of this chapter and | 1001 |
applicable rules adopted and orders issued under it and whether | 1002 |
the cost of the plugging under the proposed contract is | 1003 |
reasonable. If the chief determines that the proposed plugging | 1004 |
would comply with those requirements and that the proposed cost of | 1005 |
the plugging is reasonable, the chief shall notify the landowner | 1006 |
of that determination and issue to the landowner a permit to plug | 1007 |
and abandon the well under section 1509.13 of the Revised Code. | 1008 |
Upon approval of the application and proposed contract, the chief | 1009 |
shall transfer ownership of the equipment appurtenant to the well | 1010 |
to the landowner. The chief may disapprove an application | 1011 |
submitted under division (D)(2)(a) of this section if the chief | 1012 |
determines that the proposed plugging would not comply with the | 1013 |
applicable requirements of this chapter and applicable rules | 1014 |
adopted and orders issued under it, that the cost of the plugging | 1015 |
under the proposed contract is unreasonable, or that the proposed | 1016 |
contract is not a bona fide, arms length contract. | 1017 |
(d) Upon determining that the plugging has been completed | 1024 |
within the time required by division (D)(2)(c) of this section and | 1025 |
has been completed in compliance with the applicable requirements | 1026 |
of this chapter and applicable rules adopted and orders issued | 1027 |
under it, the chief shall reimburse the landowner for the cost of | 1028 |
the plugging as set forth in the proposed contract approved by the | 1029 |
chief. The reimbursement shall be paid from the oil and gas well | 1030 |
fund. If the chief determines that the plugging was not completed | 1031 |
within the required time or was not completed in accordance with | 1032 |
the applicable requirements, the chief shall not reimburse the | 1033 |
landowner for the cost of the plugging, and the landowner or the | 1034 |
contractor, as applicable, promptly shall transfer back to this | 1035 |
state title to and possession of the equipment appurtenant to the | 1036 |
well that previously was transferred to the landowner under | 1037 |
division (D)(2)(b) of this section. If any such equipment was | 1038 |
removed from the well during the plugging and sold, the landowner | 1039 |
shall pay to the chief the proceeds from the sale of the | 1040 |
equipment, and the chief promptly shall pay the moneys so received | 1041 |
to the treasurer of state for deposit into the oil and gas well | 1042 |
fund. | 1043 |
(E) Expenditures from the oil and gas well fund for the | 1051 |
purpose of division (B)(2) of this section may be made pursuant to | 1052 |
contracts entered into by the chief with persons who agree to | 1053 |
furnish all of the materials, equipment, work, and labor as | 1054 |
specified and provided in such a contract. The competitive bidding | 1055 |
requirements of Chapter 153. of the Revised Code do not apply if | 1056 |
the chief reasonably determines that correction of the applicable | 1057 |
health or safety risk requires immediate action. The chief, | 1058 |
designated representatives of the chief, and agents or employees | 1059 |
of persons contracting with the chief under this division may | 1060 |
enter upon any land, public or private, for the purpose of | 1061 |
performing the work. | 1062 |
(G) The owner of land on which a well is located who has | 1070 |
received notice under division (C)(1)(b) of this section, in lieu | 1071 |
of plugging the well in accordance with division (D)(2) of this | 1072 |
section, may cause ownership of the well to be transferred to an | 1073 |
owner who is lawfully doing business in this state and who has met | 1074 |
the financial responsibility requirements established under | 1075 |
section 1509.07 of the Revised Code, subject to the approval of | 1076 |
the chief. The transfer of ownership also shall be subject to the | 1077 |
landowner's filing the appropriate forms required under
this | 1078 |
chaptersection 1509.31 of the Revised Code and providing to the | 1079 |
chief sufficient information to demonstrate the landowner's or | 1080 |
owner's right to produce a formation or formations. That | 1081 |
information may include a deed, a lease, or other documentation of | 1082 |
ownership or property rights. | 1083 |
(A) Within five monthsfourteen days after the date upon | 1108 |
which the
surface drilling of a well is commencedcompleted to | 1109 |
total depth in an urbanized area and within two months after the | 1110 |
date upon which the drilling of a well is completed in all other | 1111 |
areas, the owner or the owner's agent, in accordance with the | 1112 |
restoration plan filed under division (A)(10) of section 1509.06 | 1113 |
of the Revised Code, shall fill all the pits for containing brine, | 1114 |
and other waste substances resulting, obtained, or produced in | 1115 |
connection with exploration or drilling for, or production of, oil | 1116 |
or gas, or oil that are not required by other state or federal law | 1117 |
or regulation, and remove all concrete bases, drilling supplies, | 1118 |
and drilling equipment. Within nineUnless the chief of the | 1119 |
division of mineral resources management approves a longer time | 1120 |
period, within three months after the date upon which the surface | 1121 |
drilling of a well is commenced in an urbanized area and within | 1122 |
six months after the date upon which the surface drilling of a | 1123 |
well is commenced in all other areas, the owner or the owner's | 1124 |
agent shall grade or terrace and plant, seed, or sod the area | 1125 |
disturbed that is not required in production of the well where | 1126 |
necessary to bind the soil and prevent substantial erosion and | 1127 |
sedimentation. If the chief of the division of mineral resources | 1128 |
management finds that a pit used for containing brine, other waste | 1129 |
substances, or oil is in violation of section 1509.22 of the | 1130 |
Revised Code or rules adopted or orders issued under it, the chief | 1131 |
may require the pit to be emptied and closed before expiration of | 1132 |
the five-monthfourteen-day or three-month restoration period. | 1133 |
(B) Within three months after a well that has produced oil or | 1134 |
gas is plugged in an urbanized area and within six months after a | 1135 |
well that has produced oil or gas is plugged in all other areas, | 1136 |
or after the plugging of a dry hole, unless the chief approves a | 1137 |
longer time period, the owner or the owner's agent shall remove | 1138 |
all production and storage structures, supplies, and equipment, | 1139 |
and any oil, salt water, and debris, and fill any remaining | 1140 |
excavations. Within that period the owner or the owner's agent | 1141 |
shall grade or terrace and plant, seed, or sod the area disturbed | 1142 |
where necessary to bind the soil and prevent substantial erosion | 1143 |
and sedimentation. | 1144 |
The owner shall be released from responsibility to perform | 1145 |
any or all restoration requirements of this section on any part or | 1146 |
all of the area disturbed upon the filing of a request for a | 1147 |
waiver with and obtaining the written approval of the chief, which | 1148 |
request shall be signed by the surface owner to certify the | 1149 |
approval of the surface owner of the release sought. The chief | 1150 |
shall approve the request unless the chief finds upon inspection | 1151 |
that the waiver would be likely to result in substantial damage to | 1152 |
adjoining property, substantial contamination of surface or | 1153 |
underground water, or substantial erosion or sedimentation. | 1154 |
(9) If applicable, the type and volume of fluid used to | 1209 |
stimulate the reservoir of the well, the reservoir breakdown | 1210 |
pressure, the method used for the containment of fluids recovered | 1211 |
from the fracturing of the well, the methods used for the | 1212 |
containment of fluids when pulled from the wellbore from swabbing | 1213 |
the well, the average pumping rate of the well, and the name of | 1214 |
the person that performed the well stimulation. In addition, the | 1215 |
owner shall include a copy of the log from the stimulation of the | 1216 |
well, a copy of the invoice for each of the procedures and methods | 1217 |
described in division (A)(9) of this section that were used on a | 1218 |
well, and a copy of the pumping pressure and rate graphs. However, | 1219 |
the owner may redact from the copy of each invoice that is | 1220 |
required to be included under division (A)(9) of this section the | 1221 |
costs of and charges for the procedures and methods described in | 1222 |
division (A)(9) of this section that were used on a well. | 1223 |
Any(B)(1) Not later than sixty days after the completion of | 1232 |
the drilling operations to the proposed total depth, the owner | 1233 |
shall file all wireline electric log, or radioactivity log, or | 1234 |
other geophysical log, if made in connection with the well shall | 1235 |
be filedlogs with the division of mineral resources management | 1236 |
and the chief shall transmit such logs electronically, if | 1237 |
available, to the division of geological survey. Such logs may be | 1238 |
retained by the owner for a period of not more than six months, or | 1239 |
such additional time as may be granted by the chief in writing, | 1240 |
after the completion of the well substantially to the depth shown | 1241 |
in the application required by section 1509.06 of the Revised | 1242 |
Code. | 1243 |
Sec. 1509.11. The owner of any well producing or capable of | 1260 |
producing oil or gas shall file with the chief of the division of | 1261 |
mineral resources management, on or before the
firstthirty-first | 1262 |
day of March, a statement of production of oil, gas, and brine for | 1263 |
the last preceding calendar year in such form as the chief may | 1264 |
prescribe.
An owner that has more than one hundred wells in this | 1265 |
state shall submit electronically the statement of production in a | 1266 |
format that is approved by the chief. The chief shall include on | 1267 |
the form, at the minimum, a request for the submittal of the | 1268 |
information that a person who is regulated under this chapter is | 1269 |
required to submit under the "Emergency Planning and Community | 1270 |
Right-To-Know Act of 1986," 100 Stat. 1728, 42 U.S.C.A. 11001, and | 1271 |
regulations adopted under it, and that the division does not | 1272 |
obtain through other reporting mechanisms. | 1273 |
Sec. 1509.12. No owner of any well knowingly shall construct | 1274 |
a well, or permit defective casing or tubing in sucha well to | 1275 |
leak fluids or gasgases, that may cause damage to other permeable | 1276 |
strata, underground sources of drinking water, or the surface of | 1277 |
the land or that threatens the public health and safety. Upon | 1278 |
notice fromthe discovery that the casing or tubing in a well is | 1279 |
defective or that a well was not adequately constructed, the owner | 1280 |
of the well shall notify the chief of the division of mineral | 1281 |
resources management within twenty-four hours of the discovery, | 1282 |
suchand the owner shall immediately repair suchthe tubing or | 1283 |
casing, correct the construction inadequacies, or plug and abandon | 1284 |
suchthe well. | 1285 |
Unless written permission is granted by the chief, any well | 1286 |
that is or becomes incapable of producing oil or gas in commercial | 1287 |
quantities shall be plugged, but no well shall be required to be | 1288 |
plugged under this section that is being used to produce oil or | 1289 |
gas for domestic purposes, or that is being lawfully used for a | 1290 |
purpose other than production of oil or gas. When the chief finds | 1291 |
that a well should be plugged, the chief shall notify the owner to | 1292 |
that effect by order in writing and shall specify in suchthe | 1293 |
order a reasonable time within which to comply. No owner shall | 1294 |
fail or refuse to plug a well within the time specified in the | 1295 |
order. Each day on which such a well remains unplugged thereafter | 1296 |
constitutes a separate offense. | 1297 |
In case of oil or gas wells abandoned prior to September 1, | 1304 |
19511978, the board of county commissioners of the county in | 1305 |
which
suchthe wells are located may submit to the electors of the | 1306 |
county the question of establishing a special fund, by special | 1307 |
general levy,
by general bond issue, or out of current funds, | 1308 |
which shall be approved by a majority of the electors voting upon | 1309 |
suchthat question for the purpose of plugging suchthe wells. The | 1310 |
fund shall be administered by the board and the plugging of oil | 1311 |
and gas wells shall be under the supervision of the chief, and the | 1312 |
board shall let contracts for suchthat purpose, provided that | 1313 |
suchthe fund shall not be used for the purpose of plugging oil | 1314 |
and gas wells that were abandoned subsequent to September 1,
1951 | 1315 |
1978. | 1316 |
Sec. 1509.13. (A) No person shall plug and abandon a well | 1317 |
without having a permit to do so issued by the chief of the | 1318 |
division of mineral resources management. The permit shall be | 1319 |
issued by the chief in accordance with this chapter, and the chief | 1320 |
may establish by ruleshall be valid for a period of time | 1321 |
twenty-four months from the date of issue during which permits | 1322 |
will be valid. Application by the owner for a permit to plug and | 1323 |
abandon shall be filed as many days in advance as will be | 1324 |
necessary for a mineral resources inspector or, if the well is | 1325 |
located in a coal bearing township, both a deputy mine inspector | 1326 |
and a mineral resources inspector to be present at the plugging. | 1327 |
The application shall be filed with the chief upon a form that the | 1328 |
chief prescribes and shall contain the following information: | 1329 |
If oil or gas has been produced from the well, the | 1340 |
application shall be accompanied by a fee of two hundred fifty | 1341 |
dollars. If a
new dry well has been drilled in accordance with law | 1342 |
and the permit is still valid, the permit holder may receive | 1343 |
approval to plug the well from a mineral resources inspector or, | 1344 |
if the well is located in a coal bearing township, both a deputy | 1345 |
mine inspector and a mineral resources inspector so that the well | 1346 |
can be plugged and abandoned without undue delay. Unless waived by | 1347 |
a mineral resources inspector, the owner of a well or the owner's | 1348 |
authorized representative shall notify a mineral resources | 1349 |
inspector at least twenty-four hours prior to the commencement of | 1350 |
the plugging of a well. No well shall be plugged and abandoned | 1351 |
without a mineral resources inspector present unless permission | 1352 |
has been granted by the chief. The owner of thea well that has | 1353 |
produced oil or gas shall give written notice at the same time to | 1354 |
the owner of the land upon which the well is located, the owners | 1355 |
or agents of adjoining land, adjoining well owners or agents, and, | 1356 |
ifand to all lessors that receive gas from the well pursuant to a | 1357 |
lease agreement. If the well penetrates or passes within one | 1358 |
hundred feet of the excavations and workings of a mine, the owner | 1359 |
of the well shall give written notice to the owner or lessee of | 1360 |
that mine, of the well owner's intention to abandon the well and | 1361 |
of the time when the well owner will be prepared to commence | 1362 |
plugging it. | 1363 |
(B) An applicant may file a request with the chief for | 1364 |
expedited review of an application for a permit to plug and | 1365 |
abandon a well. The chief may refuse to accept a request for | 1366 |
expedited review if, in the chief's judgment, acceptance of the | 1367 |
request will prevent the issuance, within twenty-one days of | 1368 |
filing, of permits for which applications filed under section | 1369 |
1509.06 of the Revised Code are pending. In addition to a complete | 1370 |
application for a permit that meets the requirements of this | 1371 |
section and the permit fee prescribed by this section, if | 1372 |
applicable, a request shall be accompanied by a nonrefundable | 1373 |
filing fee of twofive hundred fifty dollars unless the chief has | 1374 |
ordered the applicant to plug and abandon the well. When a request | 1375 |
for expedited review is filed, the chief shall immediately begin | 1376 |
to process the application and shall issue a permit within seven | 1377 |
days of the filing of the request unless the chief, by order, | 1378 |
denies the application. | 1379 |
Sec. 1509.17. Any person who drills a well shall, before | 1412 |
drilling into the principal or major producing formation therein, | 1413 |
encase such well with good and sufficient wrought iron or steel | 1414 |
casing so as to exclude all surface, fresh, or salt water from any | 1415 |
part of such well penetrating the oil or gas bearing sand or rock | 1416 |
or fresh water strata. The method of placing such casing shall be | 1417 |
approved by the chief of the division of mineral resources | 1418 |
management and shall be in accord with the most approved method | 1419 |
used in the operation of such type of well. The chief may, in lieu | 1420 |
of the casing method outlined in this section, accept adequate | 1421 |
mudding methods with prepared clay in the annular space behind | 1422 |
such casing in sufficient quantities to shut off all gas or oil | 1423 |
and that will exclude all surface, fresh, or salt water from any | 1424 |
part of such well penetrating the oil, gas, or mineral bearing | 1425 |
formation, or fresh water strata. | 1426 |
(A) A well shall be constructed in a manner that is approved | 1434 |
by the chief of the division of mineral resources management as | 1435 |
specified in the permit using materials that comply with industry | 1436 |
standards for the type and depth of the well and the anticipated | 1437 |
fluid pressures that are associated with the well. In addition, a | 1438 |
well shall be constructed using sufficient steel or conductor | 1439 |
casing in a manner that supports unconsolidated sediments, that | 1440 |
protects and isolates all underground sources of drinking water as | 1441 |
defined by the Safe Drinking Water Act, and that provides a base | 1442 |
for a blowout preventer or other well control equipment that is | 1443 |
necessary to control formation pressures and fluids during the | 1444 |
drilling of the well and other operations to complete the well. | 1445 |
Using steel production casing with sufficient cement, an oil and | 1446 |
gas reservoir shall be isolated during well stimulation and during | 1447 |
the productive life of the well. In addition, sour gas zones and | 1448 |
gas bearing zones that have sufficient pressure and volume to | 1449 |
over-pressurize the surface production casing annulus resulting in | 1450 |
annular overpressurization shall be isolated using approved | 1451 |
cementing, casing, and well construction practices. However, | 1452 |
isolating an oil and gas reservoir shall not exclude open-hole | 1453 |
completion. A well shall not be perforated for purposes of well | 1454 |
stimulation in any zone that is located around casing that | 1455 |
protects underground sources of drinking water without written | 1456 |
authorization from the chief in accordance with division (D) of | 1457 |
this section. When the well penetrates the excavations of a mine, | 1458 |
the casing shall remain intact as provided in section 1509.18 of | 1459 |
the Revised Code and be plugged and abandoned in accordance with | 1460 |
section 1509.15 of the Revised Code. | 1461 |
If a well is to be drilled within the limits of a mining | 1488 |
operation that may penetrate the excavation of a mine, the hole | 1489 |
shall be reduced approximately fifteen feet above the roof of the | 1490 |
mine. If roof conditions at the mine warrant, the hole shall be | 1491 |
reduced in the rock formation immediately above suchthe mine, and | 1492 |
a string of casing placed upon the shoulder so as to shut off all | 1493 |
water, then drilling shall be continued to a point approximately | 1494 |
thirty feet below the floor of the mine and another string of | 1495 |
casing set. Both strings of casing shall be approximately the same | 1496 |
diameter as the diameter of the hole. | 1497 |
If no water is encountered between the bottom of the drive | 1498 |
pipe and the approximate casing shoulder above the roof of such | 1499 |
the mine, in lieu of the casing method outlined above, it is | 1500 |
permissible to use the following casing method: the hole shall be | 1501 |
drilled thirty feet below the floor of the mine and a string of | 1502 |
casing shall be extended from the surface to a point thirty feet | 1503 |
below the floor of the mine with a packer of sufficient size | 1504 |
attached to suchthe string of casing. SuchThe packer shall be | 1505 |
placed so that it will be below all water and will be located in | 1506 |
the rock formation immediately above suchthe mine and shall | 1507 |
prevent water or destructive matter from entering therein. Then | 1508 |
the annular space above suchthe packer between the casing and | 1509 |
well wall shall be filled with prepared clay a minimum distance of | 1510 |
fifty feet. | 1511 |
In wells penetrating the excavation of a mine, the casing | 1526 |
shall be enclosed, if possible, with a column extending from the | 1527 |
floor to the roof of suchthe mine, built of brick or other | 1528 |
suitable material, subject to the approval of the chief of the | 1529 |
division of mineral resources management. If the chief finds the | 1530 |
method prescribed in this section unsafe, inadequate, or not | 1531 |
suitable, the chief shall require suchthe method to be altered in | 1532 |
such a manner that it will be safe. | 1533 |
The chief may order the immediate suspension of the drilling | 1534 |
or reopening of a well in a coal bearing township after | 1535 |
determining that the drilling or reopening activities present an | 1536 |
imminent and substantial threat to public health or safety or to a | 1537 |
miner's health or safety. Before issuing such an order, the chief | 1538 |
shall notify the owner in any manner that the chief determines | 1539 |
would provide reasonable notification of the chief's intent to | 1540 |
issue a suspension order. However, the chief may order the | 1541 |
immediate suspension of the drilling or reopening of a well in a | 1542 |
coal bearing township without prior notification if the chief has | 1543 |
made reasonable attempts to notify the owner and the attempts have | 1544 |
failed. If the chief orders the immediate suspension of such | 1545 |
drilling or reopening, the chief shall provide the owner notice of | 1546 |
the order as soon as practical. | 1547 |
Not later than five days after the issuance of an order to | 1548 |
immediately suspend the drilling or reopening of a well in a coal | 1549 |
bearing township, the chief shall provide the owner an opportunity | 1550 |
to be heard and to present evidence that the drilling or reopening | 1551 |
activities will not likely result in an imminent and substantial | 1552 |
threat to public health or safety or to a miner's health or | 1553 |
safety, as applicable. If the chief, after considering all | 1554 |
evidence presented by the owner, determines that the activities do | 1555 |
not present such a threat, the chief shall revoke the suspension | 1556 |
order. | 1557 |
Sec. 1509.19. An owner who elects to stimulate a well shall | 1562 |
stimulate the well in a manner that will not endanger underground | 1563 |
sources of drinking water. Not later than twenty-four hours before | 1564 |
commencing the stimulation of a well, the owner or the owner's | 1565 |
authorized representative shall notify a mineral resources | 1566 |
inspector. If during the stimulation of a well damage to the | 1567 |
production casing or cement occurs and results in the circulation | 1568 |
of fluids from the annulus of the surface production casing, the | 1569 |
owner shall immediately terminate the stimulation of the well and | 1570 |
notify the chief of the division of mineral resources management. | 1571 |
If the chief determines that the casing and the cement may be | 1572 |
remediated in a manner that isolates the oil and gas bearing zones | 1573 |
of the well, the chief may authorize the completion of the | 1574 |
stimulation of the well. If the chief determines that the | 1575 |
stimulation of a well resulted in irreparable damage to the well, | 1576 |
the chief shall order that the well be plugged and abandoned | 1577 |
within thirty days of the issuance of the order. | 1578 |
Sec. 1509.21. No person shall, without first having obtained | 1595 |
a permit from the chief of the division of mineral resources | 1596 |
management, conduct secondary or additional recovery operations, | 1597 |
including any underground injection of fluids or carbon dioxide | 1598 |
for the secondary or tertiary recovery of oil or natural gas or | 1599 |
for the storage of hydrocarbons that are liquid at standard | 1600 |
temperature or pressure, unless a rule of the chief expressly | 1601 |
authorizes such operations without a permit. SuchThe permit shall | 1602 |
be in addition to any permit required by section 1509.05 of the | 1603 |
Revised Code. Secondary or additional recovery operations shall be | 1604 |
conducted in accordance with rules and orders of the chief and any | 1605 |
terms or conditions of the permit authorizing such operations. In | 1606 |
addition, the chief may authorize tests to evaluate whether fluids | 1607 |
or carbon dioxide may be injected in a reservoir and to determine | 1608 |
the maximum allowable injection pressure. The tests shall be | 1609 |
conducted in accordance with methods prescribed in rules of the | 1610 |
chief or conditions of the permit. Rules adopted under this | 1611 |
section shall include provisions regarding applications for and | 1612 |
the issuance of permits; the terms and conditions of permits; | 1613 |
entry to conduct inspections and to examine records to ascertain | 1614 |
compliance with this section and rules, orders, and terms and | 1615 |
conditions of permits adopted or issued thereunder; the provision | 1616 |
and maintenance of information through monitoring, recordkeeping, | 1617 |
and reporting; and other provisions in furtherance of the goals of | 1618 |
this section and the Safe Drinking Water Act. To implement the | 1619 |
goals of the Safe Drinking Water Act, the chief shall not issue a | 1620 |
permit for the underground injection of fluids for the secondary | 1621 |
or tertiary recovery of oil or natural gas or for the storage of | 1622 |
hydrocarbons that are liquid at standard temperature and pressure, | 1623 |
unless the chief concludes that the applicant has demonstrated | 1624 |
that the injection will not result in the presence of any | 1625 |
contaminant in underground water that supplies or can be | 1626 |
reasonably expected to supply any public water system, such that | 1627 |
the presence of any such contaminant may result in the system's | 1628 |
not complying with any national primary drinking water regulation | 1629 |
or may otherwise adversely affect the health of persons. Rules, | 1630 |
orders, and terms or conditions of permits adopted or issued under | 1631 |
this section shall be construed to be no more stringent than | 1632 |
required for compliance with the Safe Drinking Water Act, unless | 1633 |
essential to ensure that underground sources of drinking water | 1634 |
will not be endangered. | 1635 |
(1) Brine from any well except an exempt Mississippian well | 1659 |
shall be disposed of only by injection into an underground | 1660 |
formation, including annular disposal if approved by rule of the | 1661 |
chief, which injection shall be subject to division (D) of this | 1662 |
section; by surface application in accordance with section | 1663 |
1509.226 of the Revised Code; in association with a method of | 1664 |
enhanced recovery as provided in section 1509.21 of the Revised | 1665 |
Code; or by other methods approved by the chief for testing or | 1666 |
implementing a new technology or method of disposal. Brine from | 1667 |
exempt Mississippian wells shall not be discharged directly into | 1668 |
the waters of the state. | 1669 |
(D) No person, without first having obtained a permit from | 1694 |
the chief, shall inject brine or other waste substances resulting | 1695 |
from, obtained from, or produced in connection with oil or gas | 1696 |
drilling, exploration, or production into an underground formation | 1697 |
unless a rule of the chief expressly authorizes the injection | 1698 |
without a permit. The permit shall be in addition to any permit | 1699 |
required by section 1509.05 of the Revised Code, and the permit | 1700 |
application shall be accompanied by a permit fee of one hundred | 1701 |
thousand dollars. The chief shall adopt rules in accordance with | 1702 |
Chapter 119. of the Revised Code regarding the injection into | 1703 |
wells of brine and other waste substances resulting from, obtained | 1704 |
from, or produced in connection with oil or gas drilling, | 1705 |
exploration, or production. The rules may authorize tests to | 1706 |
evaluate whether fluids or carbon dioxide may be injected in a | 1707 |
reservoir and to determine the maximum allowable injection | 1708 |
pressure, which shall be conducted in accordance with methods | 1709 |
prescribed in the rules or in accordance with conditions of the | 1710 |
permit. In addition, the rules shall include provisions regarding | 1711 |
applications for and issuance of the permits required by this | 1712 |
division; entry to conduct inspections and to examine and copy | 1713 |
records to ascertain compliance with this division and rules, | 1714 |
orders, and terms and conditions of permits adopted or issued | 1715 |
under it; the provision and maintenance of information through | 1716 |
monitoring, recordkeeping, and reporting; and other provisions in | 1717 |
furtherance of the goals of this section and the Safe Drinking | 1718 |
Water Act. To implement the goals of the Safe Drinking Water Act, | 1719 |
the chief shall not issue a permit for the injection of brine or | 1720 |
other waste substances resulting from, obtained from, or produced | 1721 |
in connection with oil or gas drilling, exploration, or production | 1722 |
unless the chief concludes that the applicant has demonstrated | 1723 |
that the injection will not result in the presence of any | 1724 |
contaminant in ground water that supplies or can reasonably be | 1725 |
expected to supply any public water system, such that the presence | 1726 |
of the contaminant may result in the system's not complying with | 1727 |
any national primary drinking water regulation or may otherwise | 1728 |
adversely affect the health of persons. This division and rules, | 1729 |
orders, and terms and conditions of permits adopted or issued | 1730 |
under it shall be construed to be no more stringent than required | 1731 |
for compliance with the Safe Drinking Water Act unless essential | 1732 |
to ensure that underground sources of drinking water will not be | 1733 |
endangered. | 1734 |
(F) An owner shall replace the water supply of the holder of | 1742 |
an interest in real property who obtains all or part of the | 1743 |
holder's supply of water for domestic, agricultural, industrial, | 1744 |
or other legitimate use from an underground or surface source | 1745 |
where the supply has been substantially disrupted by | 1746 |
contamination, diminution, or interruption proximately resulting | 1747 |
from the owner's oil or gas operation, or the owner may elect to | 1748 |
compensate the holder of the interest in real property for the | 1749 |
difference between the fair market value of the interest before | 1750 |
the damage occurred to the water supply and the fair market value | 1751 |
after the damage occurred if the cost of replacing the water | 1752 |
supply exceeds this difference in fair market values. However, | 1753 |
during the pendency of any order issued under this division, the | 1754 |
owner shall obtain for the holder or shall reimburse the holder | 1755 |
for the reasonable cost of obtaining a water supply from the time | 1756 |
of the contamination, diminution, or interruption by the operation | 1757 |
until the owner has complied with an order of the chief for | 1758 |
compliance with this division or such an order has been revoked or | 1759 |
otherwise becomes not effective. If the owner elects to pay the | 1760 |
difference in fair market values, but the owner and the holder | 1761 |
have not agreed on the difference within thirty days after the | 1762 |
chief issues an order for compliance with this division, within | 1763 |
ten days after the expiration of that thirty-day period, the owner | 1764 |
and the chief each shall appoint an appraiser to determine the | 1765 |
difference in fair market values, except that the holder of the | 1766 |
interest in real property may elect to appoint and compensate the | 1767 |
holder's own appraiser, in which case the chief shall not appoint | 1768 |
an appraiser. The two appraisers appointed shall appoint a third | 1769 |
appraiser, and within thirty days after the appointment of the | 1770 |
third appraiser, the three appraisers shall hold a hearing to | 1771 |
determine the difference in fair market values. Within ten days | 1772 |
after the hearing, the appraisers shall make their determination | 1773 |
by majority vote and issue their final determination of the | 1774 |
difference in fair market values. The chief shall accept a | 1775 |
determination of the difference in fair market values made by | 1776 |
agreement of the owner and holder or by appraisers under this | 1777 |
division and shall make and dissolve orders accordingly. This | 1778 |
division does not affect in any way the right of any person to | 1779 |
enforce or protect, under applicable law, the person's interest in | 1780 |
water resources affected by an oil or gas operation. | 1781 |
Sec. 1509.221. (A) No person, without first having obtained | 1788 |
a permit from the chief of the division of mineral resources | 1789 |
management, shall drill a well or inject a substance into a well | 1790 |
for the exploration for or extraction of minerals or energy, other | 1791 |
than oil or natural gas, including, but not limited to, the mining | 1792 |
of sulfur by the Frasch process, the solution mining of minerals, | 1793 |
the in situ combustion of fossil fuel, or the recovery of | 1794 |
geothermal energy to produce electric power, unless a rule of the | 1795 |
chief expressly authorizes the activity without a permit. The | 1796 |
permit shall be in addition to any permit required by section | 1797 |
1509.05 of the Revised Code. The chief shall adopt rules in | 1798 |
accordance with Chapter 119. of the Revised Code governing the | 1799 |
issuance of permits under this section. The rules shall include | 1800 |
provisions regarding the matters the applicant for a permit shall | 1801 |
demonstrate to establish eligibility for a permit; the form and | 1802 |
content of applications for permits; the terms and conditions of | 1803 |
permits; entry to conduct inspections and to examine and copy | 1804 |
records to ascertain compliance with this section and rules, | 1805 |
orders, and terms and conditions of permits adopted or issued | 1806 |
thereunder; provision and maintenance of information through | 1807 |
monitoring, recordkeeping, and reporting; and other provisions in | 1808 |
furtherance of the goals of this section and the Safe Drinking | 1809 |
Water Act. To implement the goals of the Safe Drinking Water Act, | 1810 |
the chief shall not issue a permit under this section, unless the | 1811 |
chief concludes that the applicant has demonstrated that the | 1812 |
drilling, injection of a substance, and extraction of minerals or | 1813 |
energy will not result in the presence of any contaminant in | 1814 |
underground water that supplies or can reasonably be expected to | 1815 |
supply any public water system, such that the presence of the | 1816 |
contaminant may result in the system's not complying with any | 1817 |
national primary drinking water regulation or may otherwise | 1818 |
adversely affect the health of persons. The chief may issue, | 1819 |
without a prior adjudication hearing, orders requiring compliance | 1820 |
with this section and rules, orders, and terms and conditions of | 1821 |
permits adopted or issued thereunder. This section and rules, | 1822 |
orders, and terms and conditions of permits adopted or issued | 1823 |
thereunder shall be construed to be no more stringent than | 1824 |
required for compliance with the Safe Drinking Water Act, unless | 1825 |
essential to ensure that underground sources of drinking water | 1826 |
will not be endangered. | 1827 |
(2) The maximum number of barrels of substance per injection | 1842 |
well in a calendar year on which a fee may be levied under | 1843 |
division (B) of this section is five hundred thousand. If in a | 1844 |
calendar year the owner of an injection well receives more than | 1845 |
five hundred thousand barrels of substance to be injected in the | 1846 |
owner's well and if the owner receives at least one substance that | 1847 |
is produced within the division's regulatory district in which the | 1848 |
well is located or within an adjoining regulatory district and at | 1849 |
least one substance that is not produced within the division's | 1850 |
regulatory district in which the well is located or within an | 1851 |
adjoining regulatory district, the fee shall be calculated first | 1852 |
on all of the barrels of substance that are not produced within | 1853 |
the division's regulatory district in which the well is located or | 1854 |
within an adjoining district at the rate established in division | 1855 |
(B)(2) of this section. The fee then shall be calculated on the | 1856 |
barrels of substance that are produced within the division's | 1857 |
regulatory district in which the well is located or within an | 1858 |
adjoining district at the rate established in division (B)(1) of | 1859 |
this section until the maximum number of barrels established in | 1860 |
division (B)(2) of this section has been attained. | 1861 |
(C) In an action under section 1509.04 or 1509.33 of the | 1876 |
Revised Code to enforce this section, the court shall grant | 1877 |
preliminary and permanent injunctive relief and impose a civil | 1878 |
penalty upon the showing that the person against whom the action | 1879 |
is brought has violated, is violating, or will violate this | 1880 |
section or rules, orders, or terms or conditions of permits | 1881 |
adopted or issued thereunder. The court shall not require, prior | 1882 |
to granting such preliminary and permanent injunctive relief or | 1883 |
imposing a civil penalty, proof that the violation was, is, or | 1884 |
will be the result of intentional conduct or negligence. In any | 1885 |
such action, any person may intervene as a plaintiff upon the | 1886 |
demonstration that the person has an interest that is or may be | 1887 |
adversely affected by the activity for which injunctive relief or | 1888 |
a civil penalty is sought. | 1889 |
(2) No more than one registration certificate shall be | 1896 |
required of any business entity. Registration certificates issued | 1897 |
under this section are not transferable. An applicant shall file | 1898 |
an application with the chief, containing such information in such | 1899 |
form as the chief prescribes, but including a plan for disposal | 1900 |
that provides for compliance with the requirements of this chapter | 1901 |
and rules of the chief pertaining to the transportation of brine | 1902 |
by vehicle and the disposal of brine so transported and that lists | 1903 |
all disposal sites that the applicant intends to use, the bond | 1904 |
required by section 1509.225 of the Revised Code, and a | 1905 |
certificate issued by an insurance company authorized to do | 1906 |
business in this state certifying that the applicant has in force | 1907 |
a liability insurance policy in an amount not less than three | 1908 |
hundred thousand dollars bodily injury coverage and three hundred | 1909 |
thousand dollars property damage coverage to pay damages for | 1910 |
injury to persons or property caused by the collecting, handling, | 1911 |
transportation, or disposal of brine. The policy shall be | 1912 |
maintained in effect during the term of the registration | 1913 |
certificate. The policy or policies providing the coverage shall | 1914 |
require the insurance company to give notice to the chief if the | 1915 |
policy or policies lapse for any reason. Upon such termination of | 1916 |
the policy, the chief may suspend the registration certificate | 1917 |
until proper insurance coverage is obtained. Each application for | 1918 |
a registration certificate shall be accompanied by a nonrefundable | 1919 |
fee of five hundred dollars. | 1920 |
(D) A registered transporter shall apply to revise a disposal | 1946 |
plan under procedures that the chief shall prescribe by rule. | 1947 |
However, at a minimum, an application for a revision shall list | 1948 |
all sources and disposal sites of brine currently transported. The | 1949 |
chief shall deny any application for a revision of a plan under | 1950 |
this division if the chief finds that the proposed revised plan | 1951 |
does not provide for compliance with the requirements of this | 1952 |
chapter and rules of the chief pertaining to the transportation of | 1953 |
brine by vehicle and the disposal of brine so transported. | 1954 |
Approvals and denials of revisions shall be by order of the chief. | 1955 |
Sec. 1509.225. (A) Before being issued a registration | 1961 |
certificate under section 1509.222 of the Revised Code, an | 1962 |
applicant shall execute and file with the division of mineral | 1963 |
resources management a surety bond for fifteen thousand dollars to | 1964 |
provide compensation for damage and injury resulting from | 1965 |
transporters' violations of sections 1509.22, 1509.222, and | 1966 |
1509.223 of the Revised Code, all rules and orders of the chief of | 1967 |
the division of mineral resource management relating thereto, and | 1968 |
all terms and conditions of the registration certificate imposed | 1969 |
thereunder. The applicant may deposit with the chief, in lieu of a | 1970 |
surety bond, cash in an amount equal to the surety bond as | 1971 |
prescribed in this section, or negotiable certificates of deposit | 1972 |
issued by any bank organized or transacting business in this | 1973 |
state, or certificates of deposit issued by any building and loan | 1974 |
association as defined in section 1151.01 of the Revised Code, | 1975 |
having a cash value equal to or greater than the amount of the | 1976 |
surety bond as prescribed in this section. Cash or certificates of | 1977 |
deposit shall be deposited upon the same terms as those upon which | 1978 |
surety bonds may be deposited. If certificates of deposit are | 1979 |
deposited with the chief in lieu of a surety bond, the chief shall | 1980 |
require the bank or building and loan association that issued any | 1981 |
such certificate to pledge securities of a cash value equal to the | 1982 |
amount of the certificate that is in excess of the amount insured | 1983 |
by any of the agencies and instrumentalities created under the | 1984 |
"Federal Deposit Insurance Act," 64 Stat. 873 (1950), 12 U.S.C. | 1985 |
1811, as amended, and regulations adopted under it, including at | 1986 |
least the federal deposit insurance corporation, bank insurance | 1987 |
fund, and savings association insurance fund. | 1988 |
(B) The surety bond provided for in this section shall be | 1994 |
executed by a surety company authorized to do business in this | 1995 |
state. The chief shall not approve any bond until it is personally | 1996 |
signed and acknowledged by both principal and surety, or as to | 1997 |
either by an attorney in fact, with a certified copy of the power | 1998 |
of attorney attached thereto. The chief shall not approve suchthe | 1999 |
bond unless there is attached a certificate of the superintendent | 2000 |
of insurance that the company is authorized to transact a fidelity | 2001 |
and surety business in this state. All bonds shall be given in a | 2002 |
form to be prescribed by the chief. | 2003 |
(C) If a registered transporter is found liable for a | 2004 |
violation of section 1509.22, 1509.222, or 1509.223 of the Revised | 2005 |
Code or a rule, order, or term or condition of a certificate | 2006 |
involving, in any case, damage or injury to persons or property, | 2007 |
or both, the court may order the forfeiture of any portion of the | 2008 |
bond, cash, or other securities required by this section in full | 2009 |
or partial payment of damages to the person to whom the damages | 2010 |
are due. The treasurer of state and the chief shall deliver the | 2011 |
bond or any cash or other securities deposited in lieu of bond, as | 2012 |
specified in the court's order, to the person to whom the damages | 2013 |
are due; however, execution against the bond, cash, or other | 2014 |
securities, if necessary, is the responsibility of the person to | 2015 |
whom the damages are due. The chief shall not release the bond, | 2016 |
cash, or securities required by this section except by court order | 2017 |
or until two years after the date on which athe registration is | 2018 |
terminated. | 2019 |
Sec. 1509.226. (A) If a board of county commissioners, a | 2020 |
board of township trustees, or the legislative authority of a | 2021 |
municipal corporation wishes to permit the surface application of | 2022 |
brine to roads, streets, highways, and other similar land surfaces | 2023 |
it owns or has the right to control for control of dust or ice, it | 2024 |
may adopt a resolution permitting such application as provided in | 2025 |
this section. If a board or legislative authority does not adopt | 2026 |
such a resolution, then no such surface application of brine is | 2027 |
permitted on such roads, streets, highways, and other similar | 2028 |
surfaces. If a board or legislative authority votes on a proposed | 2029 |
resolution to permit such surface application of brine, but the | 2030 |
resolution fails to receive the affirmative vote of a majority of | 2031 |
the board or legislative authority, the board or legislative | 2032 |
authority shall not adopt such a resolution for one year following | 2033 |
the date on which the vote was taken. A board or legislative | 2034 |
authority shall hold at least one public hearing on any proposal | 2035 |
to permit surface application of brine under this division and may | 2036 |
hold additional hearings. The board or legislative authority shall | 2037 |
publish notice of the time and place of each such public hearing | 2038 |
in a newspaper of general circulation in the political subdivision | 2039 |
at least five days before the day on which the hearing is to be | 2040 |
held. | 2041 |
(B) If a board or legislative authority adopts a resolution | 2042 |
permitting the surface application of brine to roads, streets, | 2043 |
highways, and other similar land surfaces under division (A) of | 2044 |
this section, the board or legislative authority shall, within | 2045 |
thirty days after the adoption of the resolution, prepare and | 2046 |
submit to the chief of the division of mineral resources | 2047 |
management a copy of the resolution. Any department, agency, or | 2048 |
instrumentality of this state or the United States that wishes to | 2049 |
permit the surface application of brine to roads, streets, | 2050 |
highways, and other similar land surfaces it owns or has a right | 2051 |
to control shall prepare and submit guidelines for such | 2052 |
application, but need not adopt a resolution under division (A) of | 2053 |
this section permitting such surface application. | 2054 |
If a resolution or guidelines contain only the standards | 2091 |
listed in division (B)(1) to (9)(10) of this section, without | 2092 |
addition or qualification, the resolution or guidelines shall be | 2093 |
deemed effective when submitted to the chief without further | 2094 |
action by the chief. All other resolutions and guidelines shall | 2095 |
comply with and be no less stringent than this chapter, rules | 2096 |
concerning surface application that the chief shall adopt under | 2097 |
division (C) of section 1509.22 of the Revised Code, and other | 2098 |
rules of the chief. Within fifteen days after receiving such other | 2099 |
resolutions and guidelines, the chief shall review them for | 2100 |
compliance with the law and rules and disapprove them if they do | 2101 |
not comply. | 2102 |
The board, legislative authority, or department, agency, or | 2103 |
instrumentality may revise and resubmit any resolutions or | 2104 |
guidelines that the chief disapproves after each disapproval, and | 2105 |
the chief shall again review and approve or disapprove them within | 2106 |
fifteen days after receiving them. The board, legislative | 2107 |
authority, or department, agency, or instrumentality may amend any | 2108 |
resolutions or guidelines previously approved by the chief and | 2109 |
submit them, as amended, to the chief. The chief shall receive, | 2110 |
review, and approve or disapprove the amended resolutions or | 2111 |
guidelines on the same basis and in the same time as original | 2112 |
resolutions or guidelines. The board, legislative authority, or | 2113 |
department, agency, or instrumentality shall not implement amended | 2114 |
resolutions or guidelines until they are approved by the chief | 2115 |
under this division. | 2116 |
(C) Any person, other than a political subdivision required | 2117 |
to adopt a resolution under division (A) of this section or a | 2118 |
department, agency, or instrumentality of this state or the United | 2119 |
States, who owns or has a legal right or obligation to maintain a | 2120 |
road, street, highway, or other similar land surface may file with | 2121 |
the board of county commissioners a written plan for the | 2122 |
application of brine to the road, street, highway, or other | 2123 |
surface. The board need not approve any such plans, but if it | 2124 |
approves a plan, the plan shall comply with this chapter, rules | 2125 |
adopted thereunder, and the board's resolutions, if any. | 2126 |
Disapproved plans may be revised and resubmitted for the board's | 2127 |
approval. Approved plans may also be revised and submitted to the | 2128 |
board. A plan or revised plan shall do all of the following: | 2129 |
(D) The board may attach terms and conditions to approval of | 2137 |
a plan, or revised plan, and may revoke approval for any violation | 2138 |
of this chapter, rules adopted thereunder, resolutions adopted by | 2139 |
the board, or terms or conditions attached by the board. The board | 2140 |
shall conduct at least one public hearing before approving a plan | 2141 |
or revised plan, publishing notice of the time and place of each | 2142 |
such public hearing in a newspaper of general circulation in the | 2143 |
county at least five days before the day on which the hearing is | 2144 |
to be held. The board shall record the filings of all plans and | 2145 |
revised plans in its journal. The board shall approve, disapprove, | 2146 |
or revoke approval of a plan or revised plan by the adoption of a | 2147 |
resolution. Upon approval of a plan or revised plan, the board | 2148 |
shall send a copy of the plan to the chief. Upon revoking approval | 2149 |
of a plan or revised plan, the board shall notify the chief of the | 2150 |
revocation. | 2151 |
(F) Each political subdivision that adopts a resolution under | 2157 |
divisions (A) and (B) of this section, each department, agency, or | 2158 |
instrumentality of this state or the United States that submits | 2159 |
guidelines under division (B) of this section, and each person who | 2160 |
files a plan under divisions (C) and (D) of this section shall, on | 2161 |
or before the fifteenth day of April of each year, file a report | 2162 |
with the chief concerning brine applied within the person's or | 2163 |
governmental entity's jurisdiction, including the quantities | 2164 |
transported and the sources and application points during the last | 2165 |
preceding calendar year and such other information in such form as | 2166 |
the chief requires. | 2167 |
(G) Any political subdivision or department, agency, or | 2168 |
instrumentality of this state or the United States that applies | 2169 |
brine under this section may do so with its own personnel, | 2170 |
vehicles, and equipment without registration under or compliance | 2171 |
with section 1509.222 or 1509.223 of the Revised Code and without | 2172 |
the necessity for filing the surety bond or other security | 2173 |
required by section 1509.225 of the Revised Code. However, each | 2174 |
such entity shall legibly identify vehicles used to apply brine | 2175 |
with reflective paint in letters no less than four inches in | 2176 |
height, indicating the word "brine" and that the vehicle is a | 2177 |
vehicle of the political subdivision, department, agency, or | 2178 |
instrumentality. Except as stated in this division, such entities | 2179 |
shall transport brine in accordance with sections 1509.22 to | 2180 |
1509.226 of the Revised Code. | 2181 |
(H) A surface application plan filed for approval under | 2182 |
division (C) of this section shall be accompanied by a | 2183 |
nonrefundable fee of fifty dollars, which shall be credited to the | 2184 |
general fund of the county. An approved plan is valid for one year | 2185 |
from the date of its approval unless it is revoked before that | 2186 |
time. An approved revised plan is valid for the remainder of the | 2187 |
term of the plan it supersedes unless it is revoked before that | 2188 |
time. Any person who has filed such a plan or revised plan and had | 2189 |
it approved may renew it by refiling it in accordance with | 2190 |
divisions (C) and (D) of this section within thirty days before | 2191 |
any anniversary of the date on which the original plan was | 2192 |
approved. The board shall notify the chief of renewals and | 2193 |
nonrenewals of plans. Even if a renewed plan is approved under | 2194 |
those divisions, the plan is not effective until notice is | 2195 |
received by the chief, and until notice is received, the chief | 2196 |
shall enforce this chapter and rules adopted thereunder with | 2197 |
regard to the affected roads, streets, highways, and other similar | 2198 |
land surfaces as if the plan had not been renewed. | 2199 |
(2) Minimum distances that wells and other excavations, | 2215 |
structures, and equipment shall be located from water wells, | 2216 |
streets, roads, highways, rivers, lakes, streams, ponds, other | 2217 |
bodies of water, railroad tracks, public or private recreational | 2218 |
areas, zoning districts, and buildings or other structures;. Rules | 2219 |
adopted under division (A)(2) of this section shall not conflict | 2220 |
with section 1509.021 of the Revised Code. | 2221 |
(4) Procedures, methods, and equipment and other requirements | 2223 |
for equipment to prevent and contain discharges of oil and brine | 2224 |
from oil production facilities and oil drilling and workover | 2225 |
facilities consistent with and equivalent in scope, content, and | 2226 |
coverage to section 311(j)(1)(c) of the "Federal Water Pollution | 2227 |
Control Act Amendments of 1972," 86 Stat. 886, 33 U.S.C.A. 1251, | 2228 |
as amended, and regulations adopted under it. In addition, the | 2229 |
rules may specify procedures, methods, and equipment and other | 2230 |
requirements for equipment to prevent and contain surface and | 2231 |
subsurface discharges of fluids, condensates, and gases. | 2232 |
(B) The chief, in consultation with the emergency response | 2234 |
commission created in section 3750.02 of the Revised Code, shall | 2235 |
adopt rules in accordance with Chapter 119. of the Revised Code | 2236 |
that specify the information that shall be included in an | 2237 |
electronic database that the chief shall create and host. The | 2238 |
information shall be that which the chief considers to be | 2239 |
appropriate for the purpose of responding to emergency situations | 2240 |
that pose a threat to public health or safety or the environment. | 2241 |
At the minimum, the information shall include that which a person | 2242 |
who is regulated under this chapter is required to submit under | 2243 |
the "Emergency Planning and Community Right-To-Know Act of 1986," | 2244 |
100 Stat. 1728, 42 U.S.C.A. 11001, and regulations adopted under | 2245 |
it. | 2246 |
Sec. 1509.24. (A) The chief of the division of mineral | 2254 |
resources management, with the approval of the technical advisory | 2255 |
council on oil and gas created in section 1509.38 of the Revised | 2256 |
Code, may adopt, amend, or rescind rules relative to minimum | 2257 |
acreage requirements for drilling units and minimum distances from | 2258 |
which a new well may be drilled or an existing well deepened, | 2259 |
plugged back, or reopened to a source of supply different from the | 2260 |
existing pool from boundaries of tracts, drilling units, and other | 2261 |
wells for the purpose of conserving oil and gas reserves.
Rules | 2262 |
The rules relative to minimum acreage requirements for drilling | 2263 |
units shall require a drilling unit to be compact and composed of | 2264 |
contiguous land. | 2265 |
SuchThe application shall include such data and information | 2281 |
as shall be reasonably required by the chief of the division of | 2282 |
mineral resources management and shall be accompanied by an | 2283 |
application for a permit as required by section 1509.05 of the | 2284 |
Revised Code. The chief shall notify all owners of land within the | 2285 |
area proposed to be included within the orderdrilling unit of the | 2286 |
filing of suchthe application and of their right to a hearing if | 2287 |
requested. After the hearing or after the expiration of thirty | 2288 |
days from the date notice of application was mailed to such | 2289 |
owners, the chief, if satisfied that the application is proper in | 2290 |
form and that mandatory pooling is necessary to protect | 2291 |
correlative rights orand to provide effective development, use, | 2292 |
orand conservation of oil and gas, shall issue a drilling permit | 2293 |
and a mandatory pooling order complying with the requirements for | 2294 |
drilling a well as provided in section 1509.24 or 1509.25 of the | 2295 |
Revised Code, whichever is applicable, which. The mandatory | 2296 |
pooling order shall: | 2297 |
If an owner of a tract pooled by the order does not elect to | 2331 |
participate in the risk and cost of the drilling and operation, or | 2332 |
operation, of a well, the owner may elect toshall be designated | 2333 |
as a nonparticipating owner in the drilling and operation, or | 2334 |
operation, of the well, on a limited or carried basis uponand is | 2335 |
subject to terms and conditions determined by the chief to be just | 2336 |
and reasonable. In addition, if an owner is designated as a | 2337 |
nonparticipating owner, the owner is not liable for actions or | 2338 |
conditions associated with the drilling or operation of the well. | 2339 |
If one or more of the participating owners bearapplicant bears | 2340 |
the costs of drilling, equipping, orand operating a well for the | 2341 |
benefit of a nonparticipating owner, as provided for in the | 2342 |
pooling order, then such participating owner or ownersthe | 2343 |
applicant shall be entitled to the share of production from the | 2344 |
drilling unit accruing to the interest of suchthat | 2345 |
nonparticipating owner, exclusive of the nonparticipating owner's | 2346 |
proportionate share of the royalty interest if the fee holder has | 2347 |
leased the fee holder's land to others, otherwise, one-eighth of | 2348 |
the fee holder's share of the production, until there has been | 2349 |
received the share of costs charged to suchthat nonparticipating | 2350 |
owner plus such additional percentage of the share of costs as the | 2351 |
chief shall determine. The total amount receivable hereunder shall | 2352 |
in no event exceed
doubletwo hundred per cent of the share of | 2353 |
costs charged to suchthat nonparticipating owner. After receipt | 2354 |
of that share of costs by such an applicant, a nonparticipating | 2355 |
owner shall receive a proportionate share of the working interest | 2356 |
in the well in addition to a proportionate share of the royalty | 2357 |
interest, if any. | 2358 |
Sec. 1509.31. (A) Whenever the entire interest of an oil and | 2372 |
gas lease is assigned or otherwise transferred, the assignor or | 2373 |
transferor shall notify the holders of the royalty interests, and, | 2374 |
if a well or wells exist on the lease, the division of mineral | 2375 |
resources management, of the name and address of the assignee or | 2376 |
transferee by certified mail, return receipt requested, not later | 2377 |
than thirty days after the date of the assignment or transfer. | 2378 |
When notice of any such assignment or transfer is required to be | 2379 |
provided to the division, it shall be provided on a form | 2380 |
prescribed and provided by the division and verified by both the | 2381 |
assignor or transferor and by the assignee or transferee and shall | 2382 |
be accompanied by a nonrefundable fee of one hundred dollars for | 2383 |
each well. The notice form applicable to assignments or transfers | 2384 |
of a well to the owner of the surface estate of the tract on which | 2385 |
the well is located shall contain a statement informing the | 2386 |
landowner that the well may require periodic servicing to maintain | 2387 |
its productivity; that, upon assignment or transfer of the well to | 2388 |
the landowner, the landowner becomes responsible for compliance | 2389 |
with the requirements of this chapter and rules adopted under it, | 2390 |
including, without limitation, the proper disposal of brine | 2391 |
obtained from the well, the plugging of the well when it becomes | 2392 |
incapable of producing oil or gas, and the restoration of the well | 2393 |
site; and that, upon assignment or transfer of the well to the | 2394 |
landowner, the landowner becomes responsible for the costs of | 2395 |
compliance with the requirements of this chapter and rules adopted | 2396 |
under it and the costs for operating and servicing the well. | 2397 |
(B) When the entire interest of a well is proposed to be | 2398 |
assigned or otherwise transferred to the landowner for use as an | 2399 |
exempt domestic well, the owner who has been issued a permit under | 2400 |
this chapter for the well shall submit to the chief an application | 2401 |
for the assignment or transfer that contains all documents that | 2402 |
the chief requires and a nonrefundable fee of one hundred dollars. | 2403 |
The application for such an assignment or transfer shall be | 2404 |
prescribed and provided by the chief. The chief may approve the | 2405 |
application if the application is accompanied by a release of all | 2406 |
of the oil and gas leases that are included in the applicable | 2407 |
formation of the drilling unit, the release is in a form such that | 2408 |
the well ownership merges with the fee simple interest of the | 2409 |
surface tract, and the release is in a form that may be recorded. | 2410 |
However, if the owner of the well does not release the oil and gas | 2411 |
leases associated with the well that is proposed to be assigned or | 2412 |
otherwise transferred or if the fee simple tract that results from | 2413 |
the merger of the well ownership with the fee simple interest of | 2414 |
the surface tract is less than five acres, the proposed exempt | 2415 |
domestic well owner shall post a five thousand dollar bond with | 2416 |
the division of mineral resources management prior to the | 2417 |
assignment or transfer of the well to ensure that the well will be | 2418 |
properly plugged. The chief, for good cause, may modify the | 2419 |
requirements of this section governing the assignment or transfer | 2420 |
of the interests of a well to the landowner. Upon the assignment | 2421 |
or transfer of the well, the owner of an exempt domestic well is | 2422 |
subject to the severance tax levied under section 5749.02 of the | 2423 |
Revised Code and all applicable fees established in this chapter. | 2424 |
(C) The owner holding a permit under section 1509.05 of the | 2425 |
Revised Code is responsible for all obligations and liabilities | 2426 |
imposed by this chapter and any rules, orders, and terms and | 2427 |
conditions of a permit adopted or issued under it, and no | 2428 |
assignment or transfer by the owner relieves the owner of the | 2429 |
obligations and liabilities until and unless the assignee or | 2430 |
transferee files with the division the information described in | 2431 |
divisions (A)(1), (2), (3), (4), (5), (10), (11), and (12) of | 2432 |
section 1509.06 of the Revised Code; obtains liability insurance | 2433 |
coverage required by section 1509.07 of the Revised Code, except | 2434 |
when none is required by that section; and executes and files a | 2435 |
surety bond, negotiable certificates of deposit or irrevocable | 2436 |
letters of credit, or cash, as described in that section. Instead | 2437 |
of a bond, but only upon acceptance by the chief of the division | 2438 |
of mineral resources management, the assignee or transferee may | 2439 |
file proof of financial responsibility, described in section | 2440 |
1509.07 of the Revised Code. Section 1509.071 of the Revised Code | 2441 |
applies to the surety bond, cash, and negotiable certificates of | 2442 |
deposit and irrevocable letters of credit described in this | 2443 |
section. Unless the chief approves a modification, each assignee | 2444 |
or transferee shall operate in accordance with the plans and | 2445 |
information filed by the permit holder pursuant to section 1509.06 | 2446 |
of the Revised Code. | 2447 |
(D) If a mortgaged property that is being foreclosed is | 2448 |
subject to an oil or gas lease, pipeline agreement, or other | 2449 |
instrument related to the production or sale of oil or natural gas | 2450 |
and the lease, agreement, or other instrument was recorded | 2451 |
subsequent to the mortgage, and if the lease, agreement, or other | 2452 |
instrument is not in default, the oil or gas lease, pipeline | 2453 |
agreement, or other instrument, as applicable, has priority over | 2454 |
all other liens, claims, or encumbrances on the property so that | 2455 |
the oil or gas lease, pipeline agreement, or other instrument is | 2456 |
not terminated or extinguished upon the foreclosure sale of the | 2457 |
mortgaged property. If the owner of the mortgaged property was | 2458 |
entitled to oil and gas royalties before the foreclosure sale, the | 2459 |
oil or gas royalties shall be paid to the purchaser of the | 2460 |
foreclosed property. | 2461 |
Sec. 1509.34. (A) If an owner fails to pay the fees imposed | 2462 |
by this chapter or the taxes levied on the severance of oil and | 2463 |
gas under section 5749.02 of the Revised Code, or if the chief of | 2464 |
the division of mineral resources management incurs costs under | 2465 |
division (E) of section 1509.071 of the Revised Code to correct | 2466 |
conditions associated with the owner's well that the chief | 2467 |
reasonably has determined are causing imminent health or safety | 2468 |
risks, the division of mineral resources management shall have a | 2469 |
priority lien against that owner's interest in the applicable well | 2470 |
in front of all other creditors for the amount of any such unpaid | 2471 |
fees and taxes and costs incurred. The chief shall file a | 2472 |
statement in the office of the county recorder of the county in | 2473 |
which the applicable well is located of the amount of the unpaid | 2474 |
fees and taxes and costs incurred as described in this division. | 2475 |
The statement shall constitute a lien on the owner's interest in | 2476 |
the well as of the date of the filing. The lien shall remain in | 2477 |
force so long as any portion of the lien remains unpaid or until | 2478 |
the chief issues a certificate of release of the lien. If the | 2479 |
chief issues a certificate of release of the lien, the chief shall | 2480 |
file the certificate of release in the office of the applicable | 2481 |
county recorder. | 2482 |
Sec. 1509.35. (A) There is hereby created an oil and gas | 2506 |
commission consisting of five members appointed by the governor. | 2507 |
Terms of office shall be for five years, commencing on the | 2508 |
fifteenth day of October and ending on the fourteenth day of | 2509 |
October, except that the terms of the first five members of the | 2510 |
board shall be for one, two, three, four, and five years, | 2511 |
respectively, as designated by the governor at the time of the | 2512 |
appointment. Each member shall hold office from the date of | 2513 |
appointment until the end of the term for which the member was | 2514 |
appointed. Any member appointed to fill a vacancy occurring prior | 2515 |
to the expiration of the term for which the member's predecessor | 2516 |
was appointed shall hold office for the remainder of suchthat | 2517 |
term. Any member shall continue in office subsequent to the | 2518 |
expiration date of the member's term until a successor takes | 2519 |
office, or until a period of sixty days has elapsed, whichever | 2520 |
occurs first. Each vacancy occurring on the commission shall be | 2521 |
filled by appointment within sixty days after the vacancy occurs. | 2522 |
One of the appointees to the commission shall be a person who, by | 2523 |
reason of the person's previous vocation, employment, or | 2524 |
affiliations, can be classed as a representative of a major | 2525 |
petroleum company. One of the appointees to the commission shall | 2526 |
be a person who, by reason of the person's previous vocation, | 2527 |
employment, or affiliations, can be classed as a representative of | 2528 |
the public. One of the appointees to the commission shall be a | 2529 |
person who, by reason of the person's previous training and | 2530 |
experience, can be classed as a representative of independent | 2531 |
petroleum operators. One of the appointees to the commission shall | 2532 |
be a person who, by reason of the person's previous training and | 2533 |
experience, can be classed as one learned and experienced in oil | 2534 |
and gas law. One of the appointees to the commission shall be a | 2535 |
person who, by reason of the person's previous training and | 2536 |
experience, can be classed as one learned and experienced in | 2537 |
geology or petroleum engineering. Not more than three members | 2538 |
shall be members of the same political party. This division does | 2539 |
not apply to temporary members appointed under division (C) of | 2540 |
this section. | 2541 |
(C) If the chairperson of the commission determines that a | 2546 |
quorum cannot be obtained for the purpose of considering a matter | 2547 |
that will be before the commission because of vacancies or recusal | 2548 |
of its members, the chairperson may contact the technical advisory | 2549 |
council on oil and gas created in section 1509.38 of the Revised | 2550 |
Code and request a list of members of the council who may serve as | 2551 |
temporary members of the commission. Using the list provided by | 2552 |
the council, the chairperson may appoint temporary members to the | 2553 |
commission. The appointment of temporary members shall be for only | 2554 |
the matter for which a quorum cannot be obtained. The number of | 2555 |
temporary members appointed by the chairperson shall not exceed | 2556 |
the number that is necessary to obtain a quorum for the matter. A | 2557 |
temporary member of the commission has the same authority, rights, | 2558 |
and obligations as a member of the commission, including the right | 2559 |
to compensation and other expenses as provided in this section. | 2560 |
The authority, rights, and obligations of a temporary member cease | 2561 |
when the temporary member's service on the commission ends. | 2562 |
For the purpose of conducting a hearing on an appeal, the | 2609 |
commission may require the attendance of witnesses and the | 2610 |
production of books, records, and papers, and it may, and at the | 2611 |
request of any party it shall, issue subpoenas for witnesses or | 2612 |
subpoenas duces tecum to compel the production of any books, | 2613 |
records, or papers, directed to the sheriffs of the counties where | 2614 |
suchthe witnesses are found. The subpoenas shall be served and | 2615 |
returned in the same manner as subpoenas in criminal cases are | 2616 |
served and returned. The fees of sheriffs shall be the same as | 2617 |
those allowed by the court of common pleas in criminal cases. | 2618 |
Witnesses shall be paid the fees and mileage provided for under | 2619 |
section 119.094 of the Revised Code. Such fees and mileage | 2620 |
expenses incurred at the request of appellant shall be paid in | 2621 |
advance by the appellant, and the remainder of suchthose expenses | 2622 |
shall be paid out of funds appropriated for the expenses of the | 2623 |
division of mineral resources management. | 2624 |
In case of disobedience or neglect of any subpoena served on | 2625 |
any person, or the refusal of any witness to testify to any matter | 2626 |
regarding which the witness may be lawfully interrogated, the | 2627 |
court of common pleas of the county in which suchthe | 2628 |
disobedience, neglect, or refusal occurs, or any judge thereof, on | 2629 |
application of the commission or any member thereof, shall compel | 2630 |
obedience by attachment proceedings for contempt as in the case of | 2631 |
disobedience of the requirements of a subpoena issued from such | 2632 |
that court or a refusal to testify therein. Witnesses at such | 2633 |
hearings shall testify under oath, and any member of the | 2634 |
commission may administer oaths or affirmations to persons who so | 2635 |
testify. | 2636 |
At the request of any party to the appeal, a stenographic | 2637 |
record of the testimony and other evidence submitted shall be | 2638 |
taken by an official court shorthand reporter at the expense of | 2639 |
the party making the request therefor. SuchThe record shall | 2640 |
include all of the testimony and other evidence and the rulings on | 2641 |
the admissibility thereof presented at the hearing. The commission | 2642 |
shall pass upon the admissibility of evidence, but any party may | 2643 |
at the time object to the admission of any evidence and except to | 2644 |
the rulings of the commission thereon, and if the commission | 2645 |
refuses to admit evidence the party offering same may make a | 2646 |
proffer thereof, and such proffer shall be made a part of the | 2647 |
record of suchthe hearing. | 2648 |
The order of the commission is final unless vacated by the | 2660 |
court of common pleas of Franklin county in an appeal as provided | 2661 |
for in section 1509.37 of the Revised Code. Sections 1509.01 to | 2662 |
1509.37 of the Revised Code, providing for appeals relating to | 2663 |
orders by the chief or by the commission, or relating to rules | 2664 |
adopted by the chief, do not constitute the exclusive procedure | 2665 |
that any person who believes the person's rights to be unlawfully | 2666 |
affected by those sections or any official action taken thereunder | 2667 |
must pursue in order to protect and preserve those rights, nor do | 2668 |
those sections constitute a procedure that that person must pursue | 2669 |
before that person may lawfully appeal to the courts to protect | 2670 |
and preserve those rights. | 2671 |
The minimum amount of the assessment for every quarterly | 2681 |
period, which periods are specified in section 5749.06 of the | 2682 |
Revised Code, shall be either the amount of fifteen dollars | 2683 |
multiplied by the total number of the owner's wells or the amount | 2684 |
of the owner's severance taxes levied under section 5749.02 of the | 2685 |
Revised Code plus the oil and gas regulatory cost recovery | 2686 |
assessment imposed by this section, whichever is greater. An owner | 2687 |
shall pay the assessment at the time and using the procedures that | 2688 |
are established in section 5749.06 of the Revised Code for the | 2689 |
collection of the taxes levied on the severance of oil and gas | 2690 |
under section 5749.02 of the Revised Code. All money collected | 2691 |
pursuant to this section shall be deposited in the state treasury | 2692 |
to the credit of the oil and gas well fund created in section | 2693 |
1509.02 of the Revised Code. | 2694 |
The legislative authority of the political subdivision shall | 2718 |
send notice not later than ten days prior to the date of the | 2719 |
public meeting to the owner of each parcel of real property that | 2720 |
is located within five hundred feet of the surface location of the | 2721 |
property that is the subject of the proposed lease agreement. The | 2722 |
notice shall contain a statement that the legislative authority of | 2723 |
the political subdivision is considering entering into an oil or | 2724 |
gas lease agreement, and provide the location, date, and time of | 2725 |
the public meeting. In addition, the statement shall contain a | 2726 |
statement that informs an owner of real property who is required | 2727 |
to receive notice of the public meeting under this division that, | 2728 |
within five days of receipt of the notice, the owner is required | 2729 |
to provide notice under division (C) of this section to each | 2730 |
residence in an occupied dwelling that is located on the owner's | 2731 |
parcel of real property. | 2732 |
Sec. 1565.13. In case of an injury to person or property, | 2762 |
occasioned by a violation of this chapter and Chapters 1561., | 2763 |
1563., and 1567., and sectionssection 1509.18 and 1509.19 of the | 2764 |
Revised Code, or any failure to comply with suchthose chapters or | 2765 |
sectionsthat section, by any operator of a mine, a right of | 2766 |
action shall accrue to the person injured, for any direct damage | 2767 |
hethe person injured has sustained thereby. In case of loss of | 2768 |
life by reason of such failure or neglect, a right of action shall | 2769 |
accrue to the widow, and children, or if there are none, then to | 2770 |
the parents and next of kin, of the person whose death was so | 2771 |
caused, for like recovery of damages for the injury they have | 2772 |
sustained. Any operator of a mine who has complied with Chapter | 2773 |
4123. of the Revised Code, is exempt as provided in section | 2774 |
4123.74 of the Revised Code, and not liable for damages at common | 2775 |
law or by statute for injury or death of any employee. | 2776 |
(B) Whenever an operator of a gas storage reservoir is | 2792 |
notified by the operator of a coal mine, as provided in division | 2793 |
(B) of section 1571.03 of the Revised Code, that suchthe coal | 2794 |
mine operator believes that part of the boundary of suchthe mine | 2795 |
is within two thousand linear feet of a well that is drilled | 2796 |
through the horizon of suchthe coal mine and into or through the | 2797 |
storage stratum or strata of suchthe reservoir within the | 2798 |
boundary of suchthe reservoir or within its protective area, such | 2799 |
the reservoir operator shall plug or recondition suchthe well as | 2800 |
in this section prescribed, unless it is agreed in a conference or | 2801 |
is ordered by the chief of the division of mineral resources | 2802 |
management after a hearing, as provided in section 1571.10 of the | 2803 |
Revised Code, that the well referred to in the notice is not such | 2804 |
a well as is described in division (B) of section 1571.03 of the | 2805 |
Revised Code. | 2806 |
Whenever an operator of a gas storage reservoir is notified | 2807 |
by the operator of a coal mine as provided in division (C) or (D) | 2808 |
of section 1571.03 of the Revised Code, that part of the boundary | 2809 |
of suchthe mine is, or within nine months is intended or expected | 2810 |
to be, within two thousand linear feet of a well that is drilled | 2811 |
through the horizon of suchthe mine and into or through the | 2812 |
storage stratum or strata of suchthe reservoir within the | 2813 |
boundary of suchthe reservoir or within its protective area, such | 2814 |
the reservoir operator shall plug or recondition suchthe well as | 2815 |
in this section prescribed. | 2816 |
Whenever the operator of a coal mine considers that the use | 2817 |
of a well such as in this section described, if used for injecting | 2818 |
gas into, or storing gas in, or removing gas from, a gas storage | 2819 |
reservoir, would be hazardous to the safety of persons or property | 2820 |
on or in the vicinity of the premises of suchthe coal mine or | 2821 |
suchthe reservoir or well, the coal mine operator may file with | 2822 |
the division objections to the use of suchthe well for such | 2823 |
purposes, and a request that a conference be held as provided in | 2824 |
section 1571.10 of the Revised Code, to discuss and endeavor to | 2825 |
resolve by mutual agreement whether or not suchthe well shall or | 2826 |
shall not be used for such purposes, and whether or not suchthe | 2827 |
well shall be reconditioned, inactivated, or plugged. SuchThe | 2828 |
request shall set forth the mine operator's reasons for such | 2829 |
objections. If no approved agreement is reached in suchthe | 2830 |
conference, the gas storage well inspector shall within ten days | 2831 |
after the termination of suchthe conference, file with the chief | 2832 |
a request that the chief hear and determine the matters considered | 2833 |
at the conference as provided in section 1571.10 of the Revised | 2834 |
Code. Upon conclusion of the hearing, the chief shall find and | 2835 |
determine whether or not the safety of persons or of the property | 2836 |
on or in the vicinity of the premises of suchthe coal mine, or | 2837 |
suchthe reservoir, or suchthe well requires that
suchthe well | 2838 |
be reconditioned, inactivated, or plugged, and shall make an order | 2839 |
consistent with suchthat determination, provided that the chief | 2840 |
shall not order a well plugged unless the chief first finds that | 2841 |
there is underground leakage of gas therefrom. | 2842 |
The plugging or reconditioning of each well described in a | 2843 |
notice from a coal mine operator to a reservoir operator as | 2844 |
provided in division (B) of section 1571.03 of the Revised Code, | 2845 |
which must be plugged or reconditioned, shall be completed within | 2846 |
such time as the gas storage well inspector may fix in the case of | 2847 |
each such well. The plugging or reconditioning of each well | 2848 |
described in a notice from a coal mine operator to a reservoir | 2849 |
operator as provided in division (C) of section 1571.03 of the | 2850 |
Revised Code, which must be plugged or reconditioned, shall be | 2851 |
completed by the time suchthe well, by reason of the extension of | 2852 |
the boundary of suchthe coal mine, is within two thousand linear | 2853 |
feet of any part of the boundary of suchthe mine. The plugging or | 2854 |
reconditioning of each well described in a notice from a coal mine | 2855 |
operator to a reservoir operator, as provided in division (D) of | 2856 |
section 1571.03 of the Revised Code, which must be plugged or | 2857 |
reconditioned, shall be completed by the time suchthe well, by | 2858 |
reason of the opening of suchthe new mine, is within two thousand | 2859 |
linear feet of any part of the boundary of suchthe new mine. A | 2860 |
reservoir operator who is required to complete the plugging or | 2861 |
reconditioning of a well within a period of time fixed as in this | 2862 |
division prescribed, may prior to the end of suchthat period of | 2863 |
time, notify the division and the mine operator from whom the | 2864 |
reservoir operator received a notice as provided in division (B), | 2865 |
(C), or (D) of section 1571.03 of the Revised Code, in writing by | 2866 |
registered mail, that the completion of the plugging or | 2867 |
reconditioning of the well referred to in suchthe notice will be | 2868 |
delayed beyond the end of the period of time fixed therefor as in | 2869 |
this section provided, and that the reservoir operator requests | 2870 |
that a conference be held for the purpose of endeavoring to reach | 2871 |
an agreement establishing a date subsequent to the end of such | 2872 |
that period of time, on or before which suchthe reservoir | 2873 |
operator may complete suchthe plugging or reconditioning without | 2874 |
incurring any penalties for failure to do so as provided in this | 2875 |
chapter. If such a reservoir operator sends to such a mine | 2876 |
operator and to the division a notice and request for a conference | 2877 |
as in this division provided, suchthe reservoir operator shall | 2878 |
not incur any penalties for failure to complete the plugging or | 2879 |
reconditioning of suchthe well within the period of time fixed as | 2880 |
in this division prescribed, unless suchthe reservoir operator | 2881 |
fails to complete the plugging or reconditioning of suchthe well | 2882 |
within the period of time fixed by an approved agreement reached | 2883 |
in suchthe conference, or fixed by an order by the chief upon a | 2884 |
hearing held in the matter in the event of failure to reach an | 2885 |
approved agreement in the conference. | 2886 |
(C) The operator shall give written notice at the same time | 2898 |
to the owner of the land upon which the well is located, the | 2899 |
owners or agents of the adjoining land, and adjoining well owners | 2900 |
or agents of the operator's intention to abandon the well, and of | 2901 |
the time when the operator will be prepared to commence plugging | 2902 |
and filling the same. In addition to giving such notices, suchthe | 2903 |
reservoir operator shall also at the same time send a copy of such | 2904 |
the notice by registered mail to the coal mine operator, if any, | 2905 |
who sent to the reservoir operator the notice as provided in | 2906 |
division (B), (C), or (D) of section 1571.03 of the Revised Code, | 2907 |
in order that
suchthe coal mine operator or the coal mine | 2908 |
operator's designated representative, may attend and observe the | 2909 |
manner in which
suchthe plugging of suchthe well is done. | 2910 |
Whenever, in compliance with this division, a well is to be | 2940 |
reconditioned by a reservoir operator, suchthe operator shall | 2941 |
give to the division notice thereof as many days before suchthe | 2942 |
reconditioning is begun as will be necessary for the gas storage | 2943 |
well inspector, or a deputy mine inspector, to be present at such | 2944 |
the reconditioning. No well shall be reconditioned if an inspector | 2945 |
of the division is not present unless permission to do so has been | 2946 |
granted by the chief. The reservoir operator, at the time of | 2947 |
giving notice to the division as in this section required, also | 2948 |
shall send a copy of suchthe notice by registered mail to the | 2949 |
coal mine operator, if any, who sent to the reservoir operator the | 2950 |
notice as provided in division (B), (C), or (D) of section 1571.03 | 2951 |
of the Revised Code, in order that
suchthe coal mine operator or | 2952 |
the coal mine operator's designated representative, may attend and | 2953 |
observe the manner in which suchthe reconditioning of
suchthe | 2954 |
well is done. | 2955 |
(D) Wells that are required by this section to be plugged | 2962 |
shall be plugged in the manner specified in sections 1509.13 to | 2963 |
1509.191509.17 of the Revised Code, and the operator shall give | 2964 |
the notifications and reports required by divisions (B) and (C) of | 2965 |
this section. No such well shall be plugged or abandoned without | 2966 |
the written approval of the division, and no such well shall be | 2967 |
mudded, plugged, or abandoned without the gas storage well | 2968 |
inspector or a deputy mine inspector present unless written | 2969 |
permission has been granted by the chief or the gas storage well | 2970 |
inspector. If such a well has been plugged prior to the time | 2971 |
plugging thereof is required by this section, and, on the basis of | 2972 |
the data, information, and other evidence available it is | 2973 |
determined that suchthe plugging was done in the manner required | 2974 |
by this section, or was done in accordance with statutes | 2975 |
prescribing the manner of plugging wells in effect at the time | 2976 |
suchthe plugging was done, and that there is no evidence of | 2977 |
leakage of gas from suchthe well either at or below the surface, | 2978 |
and that suchthe plugging is sufficiently effective to prevent | 2979 |
the leakage of gas from suchthe well, the obligations imposed | 2980 |
upon suchthe reservoir operator by this section as to plugging | 2981 |
the well, shall be considered fully satisfied. The operator of a | 2982 |
coal mine any part of the boundary of which is, or within nine | 2983 |
months is expected or intended to be, within two thousand linear | 2984 |
feet of suchthe well, may at any time raise a question as to | 2985 |
whether the plugging of suchthe well is sufficiently effective to | 2986 |
prevent the leakage of gas therefrom, and the issue so made shall | 2987 |
be determined by a conference or hearing as provided in section | 2988 |
1571.10 of the Revised Code. | 2989 |
When a well that is to be reconditioned as required by this | 3000 |
section, has been reconditioned for use in the operation of
such | 3001 |
the reservoir prior to the time prescribed in this section, and on | 3002 |
the basis of the data, information, and other evidence available | 3003 |
it is determined that at the time suchthe well was so | 3004 |
reconditioned the requirements prescribed in this division were | 3005 |
met, and that there is no evidence of underground leakage of gas | 3006 |
from suchthe well, and that suchthe reconditioning is | 3007 |
sufficiently effective to prevent underground leakage from the | 3008 |
well, the obligations imposed upon suchthe reservoir operator by | 3009 |
this section as to reconditioning suchthe well shall be | 3010 |
considered fully satisfied. Any operator of a coal mine any part | 3011 |
of the boundary of which is, or within nine months is expected or | 3012 |
intended to be, within two thousand linear feet of suchthe well, | 3013 |
may at any time raise a question as to whether the reconditioning | 3014 |
of suchthe well is sufficiently effective to prevent underground | 3015 |
leakage of gas therefrom, and the issue so made shall be | 3016 |
determined by a conference or hearing as provided in section | 3017 |
1571.10 of the Revised Code. | 3018 |
If the gas storage well inspector at any time finds that a | 3019 |
well that is drilled through the horizon of a coal mine and into | 3020 |
or through the storage stratum or strata of a reservoir within the | 3021 |
boundary of suchthe reservoir or within its protective area, is | 3022 |
located within the boundary of suchthe coal mine or within two | 3023 |
thousand linear feet of suchthe mine boundary, and was drilled | 3024 |
prior to the time the statutes of this state required that wells | 3025 |
be cased, and that
suchthe well fails to meet the casing and | 3026 |
equipping requirements prescribed in this division, the gas | 3027 |
storage well inspector shall promptly notify the operator of such | 3028 |
the reservoir thereof in writing, and suchthe reservoir operator | 3029 |
upon receipt of
suchthe notice, shall promptly recondition such | 3030 |
the well in the manner prescribed in this division for | 3031 |
reconditioning wells, unless, in a conference or hearing as | 3032 |
provided in section 1571.10 of the Revised Code, a different | 3033 |
course of action is agreed upon or ordered. | 3034 |
(G) When retreat mining reaches a point in a coal mine when | 3049 |
the operator of suchthe mine expects that within ninety days | 3050 |
retreat work will be at the location of a pillar surrounding an | 3051 |
active storage reservoir well, the operator of suchthe mine shall | 3052 |
promptly send by registered mail notice to that effect to the | 3053 |
operator of suchthe reservoir. Thereupon the operators may by | 3054 |
agreement determine whether it is necessary or advisable to | 3055 |
temporarily inactivate the well. If inactivated, the well shall | 3056 |
not be reactivated until a reasonable period of time has elapsed, | 3057 |
such period of time to be determined by agreement by the | 3058 |
operators. In the event that the parties cannot agree upon either | 3059 |
of the foregoing matters, suchthe question shall be submitted to | 3060 |
the gas storage well inspector for a conference in accordance with | 3061 |
section 1571.10 of the Revised Code. | 3062 |
(H)(1) The provisions of this section that require the | 3063 |
plugging or reconditioning of wells shall not apply to such wells | 3064 |
as are used to inject gas into, store gas in, or remove gas from, | 3065 |
a gas storage reservoir when the sole purpose of suchthe | 3066 |
injection, storage, or removal, is testing. The operator of a gas | 3067 |
storage reservoir who injects gas into, stores gas in, or removes | 3068 |
gas from, a reservoir for the sole purpose of testing, shall be | 3069 |
subject to all other provisions of this chapter that are | 3070 |
applicable to operators of reservoirs. | 3071 |
(2) If the injection of gas into, or storage of gas in, a gas | 3072 |
storage reservoir any part of which, or of the protective area of | 3073 |
which, is within the boundary of a coal mine, is begun after | 3074 |
September 9, 1957, and if suchthe injection or storage of gas is | 3075 |
for the sole purpose of testing, the operator of suchthe | 3076 |
reservoir shall send by registered mail to the operator of such | 3077 |
the coal mine and to the division at least sixty days' notice of | 3078 |
the date upon which suchthe testing will be begun. | 3079 |
(3) Any coal mine operator who receives a notice as provided | 3086 |
for in division (H)(2) of this section, may within thirty days of | 3087 |
the receipt thereof, file with the division objections to suchthe | 3088 |
testing. The gas storage well inspector also may, within the time | 3089 |
within which a coal mine operator may file
suchan objection, | 3090 |
place in the files of the division objections to
suchthe testing. | 3091 |
The reservoir operator shall comply throughout the period of the | 3092 |
testing operations with all conditions and requirements agreed | 3093 |
upon and approved in the conference on such objections conducted | 3094 |
as provided in section 1571.10 of the Revised Code, or in an order | 3095 |
made by the chief following a hearing in the matter as provided in | 3096 |
section 1571.10 of the Revised Code. If in complying with suchthe | 3097 |
agreement or order either the reservoir operator or the coal mine | 3098 |
operator encounters or discovers conditions that were not known to | 3099 |
exist at the time of suchthe conference or hearing and that | 3100 |
materially affect suchthe agreement or order, or the ability of | 3101 |
the reservoir operator to comply therewith, either operator may | 3102 |
apply for a rehearing or modification of the order. | 3103 |
(I) In addition to complying with all other provisions of | 3104 |
this chapter and any lawful orders issued thereunder, the operator | 3105 |
of each gas storage reservoir shall keep all wells drilled into or | 3106 |
through the storage stratum or strata within the boundary of the | 3107 |
operator's reservoir or within the reservoir's protective area in | 3108 |
such condition, and operate the same in such manner, as to prevent | 3109 |
the escape of gas therefrom into any coal mine, and shall operate | 3110 |
and maintain suchthe storage reservoir and its facilities in such | 3111 |
manner and at such pressures as will prevent gas from escaping | 3112 |
from suchthe reservoir or its facilities into any coal mine. | 3113 |
A separate return shall be filed for each calendar quarterly | 3127 |
period, or other period, or any part thereof, during which the | 3128 |
severer holds a license as provided by section 5749.04 of the | 3129 |
Revised Code, or is required to hold suchthe license, and
such | 3130 |
the return shall be filed within forty-five days after the last | 3131 |
day of each such calendar month, or other period, or any part | 3132 |
thereof, for which suchthe return is required and shall include | 3133 |
remittance payable to the treasurer of state of the amount of tax | 3134 |
due. All such returns shall contain such information as the | 3135 |
commissioner may require to fairly administer the tax. | 3136 |
Section 2. That existing sections 1509.01, 1509.02, 1509.03, | 3168 |
1509.04, 1509.05, 1509.06, 1509.07, 1509.071, 1509.072, 1509.10, | 3169 |
1509.11, 1509.12, 1509.13, 1509.14, 1509.17, 1509.18, 1509.20, | 3170 |
1509.21, 1509.22, 1509.221, 1509.222, 1509.225, 1509.226, 1509.23, | 3171 |
1509.24, 1509.27, 1509.31, 1509.35, 1509.36, 1565.07, 1565.13, | 3172 |
1571.05, and 5749.06 of the Revised Code are hereby repealed. | 3173 |