Sec. 1509.02. There is hereby created in the department of | 17 |
natural resources the division of oil and gas resources | 18 |
management, which shall be administered by the chief of the | 19 |
division of oil and gas resources management. The division has | 20 |
sole and exclusive authority to regulate the permitting, location, | 21 |
and spacing of oil and gas wells and production operations within | 22 |
the state, excepting only those activities regulated under federal | 23 |
laws for which oversight has been delegated to the environmental | 24 |
protection agency, the permitting of a well to inject brine or | 25 |
other waste substances under division (D) of section 1509.22 of | 26 |
the Revised Code, and activities regulated under sections 6111.02 | 27 |
to 6111.029 of the Revised Code. The regulation of oil and gas | 28 |
activities is a matter of general statewide interest that requires | 29 |
uniform statewide regulation, and this chapter and rules adopted | 30 |
under it constitute a comprehensive plan with respect to all | 31 |
aspects of the locating, drilling, well stimulation, completing, | 32 |
and operating of oil and gas wells within this state, including | 33 |
site construction and restoration, permitting related to those | 34 |
activities, and the disposal of wastes from those wells. Nothing | 35 |
in this section affects the authority granted to the director of | 36 |
transportation and local authorities in section 723.01 or 4513.34 | 37 |
of the Revised Code, provided that the authority granted under | 38 |
those sections shall not be exercised in a manner that | 39 |
discriminates against, unfairly impedes, or obstructs oil and gas | 40 |
activities and operations regulated under this chapter. | 41 |
All moneys collected by the chief pursuant to sections | 45 |
1509.06, 1509.061, 1509.062, 1509.071, 1509.13, 1509.22, 1509.221, | 46 |
1509.222, 1509.34, and 1509.50 and division (B)(1) of section | 47 |
1509.221 of the Revised Code, ninety per cent of moneys received | 48 |
by the treasurer of state from the tax levied in divisions (A)(5) | 49 |
and (6) of section 5749.02 of the Revised Code, all civil | 50 |
penalties paid under section 1509.33 of the Revised Code, and, | 51 |
notwithstanding any section of the Revised Code relating to the | 52 |
distribution or crediting of fines for violations of the Revised | 53 |
Code, all fines imposed under divisions (A) and (B) of section | 54 |
1509.99 of the Revised Code and fines imposed under divisions (C) | 55 |
and (D) of section 1509.99 of the Revised Code for all violations | 56 |
prosecuted by the attorney general and for violations prosecuted | 57 |
by prosecuting attorneys that do not involve the transportation of | 58 |
brine by vehicle shall be deposited into the state treasury to the | 59 |
credit of the oil and gas well fund, which is hereby created. | 60 |
Fines imposed under divisions (C) and (D) of section 1509.99 of | 61 |
the Revised Code for violations prosecuted by prosecuting | 62 |
attorneys that involve the transportation of brine by vehicle and | 63 |
penalties associated with a compliance agreement entered into | 64 |
pursuant to this chapter shall be paid to the county treasury of | 65 |
the county where the violation occurred. | 66 |
The fund shall be used solely and exclusively for the | 67 |
purposes enumerated in division (B) of section 1509.071 of the | 68 |
Revised Code, for the expenses of the division associated with the | 69 |
administration of this chapter and Chapter 1571. of the Revised | 70 |
Code and rules adopted under them, and for expenses that are | 71 |
critical and necessary for the protection of human health and | 72 |
safety and the environment related to oil and gas production in | 73 |
this state. The expenses of the division in excess of the moneys | 74 |
available in the fund shall be paid from general revenue fund | 75 |
appropriations to the department. | 76 |
(9) For an application for a permit to drill a new well | 103 |
within an urbanized area, a sworn statement that the applicant has | 104 |
provided notice by regular mail of the application to the owner of | 105 |
each parcel of real property that is located within five hundred | 106 |
feet of the surface location of the well and to the executive | 107 |
authority of the municipal corporation or the board of township | 108 |
trustees of the township, as applicable, in which the well is to | 109 |
be located. In addition, the notice shall contain a statement that | 110 |
informs an owner of real property who is required to receive the | 111 |
notice under division (A)(9) of this section that within five days | 112 |
of receipt of the notice, the owner is required to provide notice | 113 |
under section 1509.60 of the Revised Code to each residence in an | 114 |
occupied dwelling that is located on the owner's parcel of real | 115 |
property. The notice shall contain a statement that an application | 116 |
has been filed with the division of oil and gas resources | 117 |
management, identify the name of the applicant and the proposed | 118 |
well location, include the name and address of the division, and | 119 |
contain a statement that comments regarding the application may be | 120 |
sent to the division. The notice may be provided by hand delivery | 121 |
or regular mail. The identity of the owners of parcels of real | 122 |
property shall be determined using the tax records of the | 123 |
municipal corporation or county in which a parcel of real property | 124 |
is located as of the date of the notice. | 125 |
(B) The chief shall cause a copy of the weekly circular | 151 |
prepared by the division to be provided to the county engineer of | 152 |
each county that contains active or proposed drilling activity. | 153 |
The weekly circular shall contain, in the manner prescribed by the | 154 |
chief, the names of all applicants for permits, the location of | 155 |
each well or proposed well, the information required by division | 156 |
(A)(11) of this section, and any additional information the chief | 157 |
prescribes. In addition, the chief promptly shall transfer an | 158 |
electronic copy or facsimile, or if those methods are not | 159 |
available to a municipal corporation or township, a copy via | 160 |
regular mail, of a drilling permit application to the clerk of the | 161 |
legislative authority of the municipal corporation or to the clerk | 162 |
of the township in which the well or proposed well is or is to be | 163 |
located if the legislative authority of the municipal corporation | 164 |
or the board of township trustees has asked to receive copies of | 165 |
such applications and the appropriate clerk has provided the chief | 166 |
an accurate, current electronic mailing address or facsimile | 167 |
number, as applicable. | 168 |
(2) If the location of a well or proposed well will be or is | 176 |
within an urbanized area, the chief shall not issue a permit for | 177 |
at least eighteen days after the date of filing of the application | 178 |
for the permit unless, upon reasonable cause shown, the chief | 179 |
waives that period or the chief at the chief's discretion grants a | 180 |
request for an expedited review. However, the chief shall issue a | 181 |
permit for a well or proposed well within an urbanized area within | 182 |
thirty days of the filing of the application unless the chief | 183 |
denies the application by order. | 184 |
In addition to a complete application for a permit that meets | 193 |
the requirements of this section and the permit fee prescribed by | 194 |
this section, a request for expedited review shall be accompanied | 195 |
by a separate nonrefundable filing fee of two hundred fifty | 196 |
dollars. Upon the filing of a request for expedited review, the | 197 |
chief shall cause the county engineer of the county in which the | 198 |
well is or is to be located to be notified of the filing of the | 199 |
permit application and the request for expedited review by | 200 |
telephone or other means that in the judgment of the chief will | 201 |
provide timely notice of the application and request. The chief | 202 |
shall issue a permit within seven days of the filing of the | 203 |
request unless the chief denies the application by order. | 204 |
Notwithstanding the provisions of this section governing expedited | 205 |
review of permit applications, the chief may refuse to accept | 206 |
requests for expedited review if, in the chief's judgment, the | 207 |
acceptance of the requests would prevent the issuance, within | 208 |
twenty-one days of their filing, of permits for which applications | 209 |
are pending. | 210 |
(F) The chief shall issue an order denying a permit if the | 214 |
chief finds that there is a substantial risk that the operation | 215 |
will result in violations of this chapter or rules adopted under | 216 |
it that will present an imminent danger to public health or safety | 217 |
or damage to the environment, provided that where the chief finds | 218 |
that terms or conditions to the permit can reasonably be expected | 219 |
to prevent such violations, the chief shall issue the permit | 220 |
subject to those terms or conditions, including, if applicable, | 221 |
terms and conditions regarding subjects identified in rules | 222 |
adopted under section 1509.03 of the Revised Code. The issuance of | 223 |
a permit shall not be considered an order of the chief. | 224 |
(H) Prior to the issuance of a permit to drill a proposed | 247 |
well that is to be located in an urbanized area, the division | 248 |
shall conduct a site review to identify and evaluate any | 249 |
site-specific terms and conditions that may be attached to the | 250 |
permit. At the site review, a representative of the division shall | 251 |
consider fencing, screening, and landscaping requirements, if any, | 252 |
for similar structures in the community in which the well is | 253 |
proposed to be located. The terms and conditions that are attached | 254 |
to the permit shall include the establishment of fencing, | 255 |
screening, and landscaping requirements for the surface facilities | 256 |
of the proposed well, including a tank battery of the well. | 257 |
Sec. 1509.074. (A) On and after the effective date of the | 268 |
rules adopted under division (B) of this section, the owner of a | 269 |
well that has been issued a permit under section 1509.06 of the | 270 |
Revised Code shall recycle or treat wastewater, including brine | 271 |
and other waste substances, that results from, is obtained from, | 272 |
or is produced in connection with oil or gas drilling, | 273 |
exploration, or production in accordance with the plan submitted | 274 |
under division (A)(12) of that section. | 275 |
(1) Brine from any well except an exempt Mississippian well | 316 |
shall be disposed of only by injection into an underground | 317 |
formation, including annular disposal if approved by rule of the | 318 |
chief, which injection shall be subject to division (D) of this | 319 |
section; by surface application in accordance with section | 320 |
1509.226 of the Revised Code; in association with a method of | 321 |
enhanced recovery as provided in section 1509.21 of the Revised | 322 |
Code; or by other methods approved by the chief for testing or | 323 |
implementing a new technology or method of disposal. Brine from | 324 |
exempt Mississippian wells shall not be discharged directly into | 325 |
the waters of the state. | 326 |
(D)(1) No person, without first having obtained a permit from | 349 |
the chief, shall inject brine or other waste substances resulting | 350 |
from, obtained from, or produced in connection with oil or gas | 351 |
drilling, exploration, or production into an underground formation | 352 |
unless a rule of the chief expressly authorizes the injection | 353 |
without a permit. The permit shall be in addition to any permit | 354 |
required by section 1509.05 of the Revised Code, and the permit | 355 |
application shall be accompanied by a permit fee of one thousand | 356 |
dollars, the information that is required in section 1509.228 of | 357 |
the Revised Code, and the waste analysis plan that is required by | 358 |
division (D)(2) of this section. The | 359 |
(2)(a) A person that submits an application for a permit to | 360 |
inject brine or other waste substances resulting from, obtained | 361 |
from, or produced in connection with oil or gas drilling, | 362 |
exploration, or production into an underground formation shall | 363 |
prepare and submit to the chief a waste analysis plan. The plan | 364 |
shall consist of a written document that will be used as the basis | 365 |
for analyzing the contents in each container of brine or other | 366 |
waste substances that will be injected in the well. The waste | 367 |
analysis plan shall include all of the following: | 368 |
(c) A person that obtains a permit under this section shall | 390 |
revise the permittee's waste analysis plan as needed and shall | 391 |
submit the revised plan to the chief for approval in the same | 392 |
manner as the original plan. If the chief disapproves the revised | 393 |
plan, the permittee may correct any deficiencies and resubmit the | 394 |
revised plan for approval. For the purpose of division (D)(2)(d) | 395 |
of this section, the permittee may continue to use the waste | 396 |
analysis plan that was approved immediately prior to the | 397 |
submission of a revised plan until the revised plan is approved. | 398 |
The permittee of an injection well may analyze the contents in | 399 |
each container of brine or other waste substances in accordance | 400 |
with the revised plan. | 401 |
(3)(a) After the chief determines that an application for a | 406 |
permit is complete, the chief shall post on the division of oil | 407 |
and gas resources management's web site a notification that | 408 |
contains information regarding the application that is the same as | 409 |
the information that is required to be contained in the weekly | 410 |
circular of the division in division (B) of section 1509.06 of the | 411 |
Revised Code. In addition, the chief shall establish the time, | 412 |
date, and location of the public hearing that is required by | 413 |
division (D)(3)(b) of this section and provide to the applicant | 414 |
information regarding the public hearing, the permit application | 415 |
number, and the location where a copy of the application may be | 416 |
inspected. | 417 |
(c) Beginning in the week following the week of receipt of | 424 |
the information provided by the chief under division (D)(3)(a) of | 425 |
this section, the applicant shall publish a notice, at least once | 426 |
a week for four consecutive weeks, in a newspaper of general | 427 |
circulation in the county in which the proposed injection well is | 428 |
to be located and, if available, in any local weekly news | 429 |
publication that serves the township or municipal corporation in | 430 |
which the proposed well is to be located. The font for the notice | 431 |
shall be of a reasonable size. In addition, the notice shall | 432 |
contain all of the following information: | 433 |
An individual or entity that received a notice under division | 463 |
(D)(3)(d) of this section may submit to the chief written comments | 464 |
concerning the application with respect to the effects of the | 465 |
operation of the proposed injection well on the environment that | 466 |
are within the individual's or entity's area of responsibility. | 467 |
The written comments shall be submitted to the chief not later | 468 |
than thirty days after the individual's or entity's receipt of the | 469 |
notice. If the chief receives such written comments concerning an | 470 |
application, the chief immediately shall transmit a copy of the | 471 |
comments to the applicant and post a copy of them on the | 472 |
division's web site. | 473 |
(7) To implement the goals of the Safe Drinking Water Act, | 514 |
the chief shall not issue a permit for the injection of brine or | 515 |
other waste substances resulting from, obtained from, or produced | 516 |
in connection with oil or gas drilling, exploration, or production | 517 |
unless the chief concludes that the applicant has demonstrated | 518 |
that the injection will not result in the presence of any | 519 |
contaminant in ground water that supplies or can reasonably be | 520 |
expected to supply any public water system, such that the presence | 521 |
of the contaminant may result in the system's not complying with | 522 |
any national primary drinking water regulation or may otherwise | 523 |
adversely affect the health of persons. | 524 |
(E) The chief shall adopt rules in accordance with Chapter | 525 |
119. of the Revised Code regarding the injection into wells of | 526 |
brine and other waste substances resulting from, obtained from, or | 527 |
produced in connection with oil or gas drilling, exploration, or | 528 |
production. The rules shall require a person who has been issued a | 529 |
permit under division (D) of this section for such a well to add a | 530 |
stable benign chemical tracer into the well in an amount and at a | 531 |
frequency that are determined by the chief for the purposes of | 532 |
determining if brine and other waste substances that are injected | 533 |
into the well have migrated and if impacts to ground water have | 534 |
occurred from the operation of the well. The rules may authorize | 535 |
tests to evaluate whether fluids or carbon dioxide may be injected | 536 |
in a reservoir and to determine the maximum allowable injection | 537 |
pressure, which shall be conducted in accordance with methods | 538 |
prescribed in the rules or in accordance with conditions of the | 539 |
permit. In addition, the rules shall include provisions regarding | 540 |
applicationsall of the following: | 541 |
(4) Other provisions in furtherance of the goals of this | 550 |
section and the Safe Drinking Water Act. To implement the goals of | 551 |
the Safe Drinking Water Act, the chief shall not issue a permit | 552 |
for the injection of brine or other waste substances resulting | 553 |
from, obtained from, or produced in connection with oil or gas | 554 |
drilling, exploration, or production unless the chief concludes | 555 |
that the applicant has demonstrated that the injection will not | 556 |
result in the presence of any contaminant in ground water that | 557 |
supplies or can reasonably be expected to supply any public water | 558 |
system, such that the presence of the contaminant may result in | 559 |
the system's not complying with any national primary drinking | 560 |
water regulation or may otherwise adversely affect the health of | 561 |
persons. This division | 562 |
(F)(H) An owner shall replace the water supply of the holder | 576 |
of an interest in real property who obtains all or part of the | 577 |
holder's supply of water for domestic, agricultural, industrial, | 578 |
or other legitimate use from an underground or surface source | 579 |
where the supply has been substantially disrupted by | 580 |
contamination, diminution, or interruption proximately resulting | 581 |
from the owner's oil or gas operation, or the owner may elect to | 582 |
compensate the holder of the interest in real property for the | 583 |
difference between the fair market value of the interest before | 584 |
the damage occurred to the water supply and the fair market value | 585 |
after the damage occurred if the cost of replacing the water | 586 |
supply exceeds this difference in fair market values. However, | 587 |
during the pendency of any order issued under this division, the | 588 |
owner shall obtain for the holder or shall reimburse the holder | 589 |
for the reasonable cost of obtaining a water supply from the time | 590 |
of the contamination, diminution, or interruption by the operation | 591 |
until the owner has complied with an order of the chief for | 592 |
compliance with this division or such an order has been revoked or | 593 |
otherwise becomes not effective. If the owner elects to pay the | 594 |
difference in fair market values, but the owner and the holder | 595 |
have not agreed on the difference within thirty days after the | 596 |
chief issues an order for compliance with this division, within | 597 |
ten days after the expiration of that thirty-day period, the owner | 598 |
and the chief each shall appoint an appraiser to determine the | 599 |
difference in fair market values, except that the holder of the | 600 |
interest in real property may elect to appoint and compensate the | 601 |
holder's own appraiser, in which case the chief shall not appoint | 602 |
an appraiser. The two appraisers appointed shall appoint a third | 603 |
appraiser, and within thirty days after the appointment of the | 604 |
third appraiser, the three appraisers shall hold a hearing to | 605 |
determine the difference in fair market values. Within ten days | 606 |
after the hearing, the appraisers shall make their determination | 607 |
by majority vote and issue their final determination of the | 608 |
difference in fair market values. The chief shall accept a | 609 |
determination of the difference in fair market values made by | 610 |
agreement of the owner and holder or by appraisers under this | 611 |
division and shall make and dissolve orders accordingly. This | 612 |
division does not affect in any way the right of any person to | 613 |
enforce or protect, under applicable law, the person's interest in | 614 |
water resources affected by an oil or gas operation. | 615 |
Sec. 1509.221. (A) No person, without first having obtained | 630 |
a permit from the chief of the division of oil and gas resources | 631 |
management, shall drill a well or inject a substance into a well | 632 |
for the exploration for or extraction of minerals or energy, other | 633 |
than oil or natural gas, including, but not limited to, the mining | 634 |
of sulfur by the Frasch process, the solution mining of minerals, | 635 |
the in situ combustion of fossil fuel, or the recovery of | 636 |
geothermal energy to produce electric power, unless a rule of the | 637 |
chief expressly authorizes the activity without a permit. The | 638 |
permit shall be in addition to any permit required by section | 639 |
1509.05 of the Revised Code. The chief shall adopt rules in | 640 |
accordance with Chapter 119. of the Revised Code governing the | 641 |
issuance of permits under this section. The rules shall include | 642 |
provisions regarding the matters the applicant for a permit shall | 643 |
demonstrate to establish eligibility for a permit; the form and | 644 |
content of applications for permits; the terms and conditions of | 645 |
permits; entry to conduct inspections and to examine and copy | 646 |
records to ascertain compliance with this section and rules, | 647 |
orders, and terms and conditions of permits adopted or issued | 648 |
thereunder; provision and maintenance of information through | 649 |
monitoring, recordkeeping, and reporting; and other provisions in | 650 |
furtherance of the goals of this section and the Safe Drinking | 651 |
Water Act. To implement the goals of the Safe Drinking Water Act, | 652 |
the chief shall not issue a permit under this section, unless the | 653 |
chief concludes that the applicant has demonstrated that the | 654 |
drilling, injection of a substance, and extraction of minerals or | 655 |
energy will not result in the presence of any contaminant in | 656 |
underground water that supplies or can reasonably be expected to | 657 |
supply any public water system, such that the presence of the | 658 |
contaminant may result in the system's not complying with any | 659 |
national primary drinking water regulation or may otherwise | 660 |
adversely affect the health of persons. The chief may issue, | 661 |
without a prior adjudication hearing, orders requiring compliance | 662 |
with this section and rules, orders, and terms and conditions of | 663 |
permits adopted or issued thereunder. This section and rules, | 664 |
orders, and terms and conditions of permits adopted or issued | 665 |
thereunder shall be construed to be no more stringent than | 666 |
required for compliance with the Safe Drinking Water Act, unless | 667 |
essential to ensure that underground sources of drinking water | 668 |
will not be endangered. | 669 |
(2) The maximum number of barrels of substance per injection | 684 |
well in a calendar year on which a fee may be levied under | 685 |
division (B) of this section is five hundred thousand. If in a | 686 |
calendar year the owner of an injection well receives more than | 687 |
five hundred thousand barrels of substance to be injected in the | 688 |
owner's well and if the owner receives at least one substance that | 689 |
is produced within the division's regulatory district in which the | 690 |
well is located or within an adjoining regulatory district and at | 691 |
least one substance that is not produced within the division's | 692 |
regulatory district in which the well is located or within an | 693 |
adjoining regulatory district, the fee shall be calculated first | 694 |
on all of the barrels of substance that are not produced within | 695 |
the division's regulatory district in which the well is located or | 696 |
within an adjoining district at the rate established in division | 697 |
(B)(2) of this section. The fee then shall be calculated on the | 698 |
barrels of substance that are produced within the division's | 699 |
regulatory district in which the well is located or within an | 700 |
adjoining district at the rate established in division (B)(1) of | 701 |
this section until the maximum number of barrels established in | 702 |
division (B)(2) of this section has been attainedThere is levied | 703 |
on the owner of an injection well who has been issued a permit | 704 |
under division (D) of section 1509.22 of the Revised Code an | 705 |
additional fee of five cents per barrel of each substance that is | 706 |
delivered to the well to be injected in the well. | 707 |
(3) The owner of an injection well who is issued a permit | 708 |
under division (D) of section 1509.22 of the Revised Code shall | 709 |
collect the feefees levied by division (B) of this section on | 710 |
behalf of the division of oil and gas resources management and | 711 |
forward the feefees to the division. The chief shall transmit all | 712 |
money received under division (B)(1) of this section to the | 713 |
treasurer of state who shall deposit the money in the state | 714 |
treasury to the credit of the oil and gas well fund created in | 715 |
section 1509.02 of the Revised Code. The chief shall transmit all | 716 |
money received under division (B)(2) of this section to the | 717 |
treasurer of state who shall deposit the money in the state | 718 |
treasury to the credit of the injection well ground water | 719 |
monitoring fund created in section 1509.227 of the Revised Code. | 720 |
The owner of an injection well who collects the
feefees levied | 721 |
by this division (B) of this section may retain up to three per | 722 |
cent of the amount that is collected. | 723 |
(C) In an action under section 1509.04 or 1509.33 of the | 728 |
Revised Code to enforce this section, the court shall grant | 729 |
preliminary and permanent injunctive relief and impose a civil | 730 |
penalty upon the showing that the person against whom the action | 731 |
is brought has violated, is violating, or will violate this | 732 |
section or rules, orders, or terms or conditions of permits | 733 |
adopted or issued thereunder. The court shall not require, prior | 734 |
to granting such preliminary and permanent injunctive relief or | 735 |
imposing a civil penalty, proof that the violation was, is, or | 736 |
will be the result of intentional conduct or negligence. In any | 737 |
such action, any person may intervene as a plaintiff upon the | 738 |
demonstration that the person has an interest that is or may be | 739 |
adversely affected by the activity for which injunctive relief or | 740 |
a civil penalty is sought. | 741 |
(B) The chief shall adopt rules in accordance with Chapter | 749 |
119. of the Revised Code establishing requirements for the | 750 |
installation of ground water monitoring wells and the monitoring | 751 |
of ground water quality and quantity prior to the commencement of | 752 |
drilling of a well for which a permit is issued under division (D) | 753 |
of section 1509.22 of the Revised Code and during the injection of | 754 |
brine or other waste substances into such a well. The rules shall | 755 |
require that ground water monitoring be capable of determining | 756 |
impacts resulting from the operation of the injection well. In | 757 |
addition, the rules shall establish requirements governing ground | 758 |
water assessment and corrective actions for impacts to ground | 759 |
water. Further, the rules shall require that the owner of an | 760 |
injection well submit to the chief a monitoring report that has | 761 |
been prepared by a qualified ground water scientist and that | 762 |
includes all of the following: | 763 |
(3) A listing of all administrative enforcement orders issued | 782 |
to the owner or a key employee of the owner, all civil actions in | 783 |
which the owner or a key employee of the owner was determined by | 784 |
the trier of fact to be liable in damages or was the subject of | 785 |
injunctive relief or another type of civil relief, and all | 786 |
criminal actions in which the owner or a key employee of the owner | 787 |
pleaded guilty or was convicted, during the ten years immediately | 788 |
preceding the submission of the application, in connection with | 789 |
any violation by the owner or a key employee of the owner of an | 790 |
applicable state or federal law pertaining to oil and gas | 791 |
operations or environmental protection or the laws of another | 792 |
country pertaining to oil and gas operations or environmental | 793 |
protection; | 794 |
(B) If the applicant for a permit for an injection well has | 807 |
been involved in any prior activity involving the operation of an | 808 |
injection well, the chief of the division of oil and gas resources | 809 |
management may deny the application if the chief finds from the | 810 |
application, the information submitted under divisions (A)(1) to | 811 |
(4) of this section, pertinent information submitted to the chief, | 812 |
and other pertinent information obtained by the chief at the | 813 |
chief's discretion that the applicant or any other person listed | 814 |
on the application, in the operation of injection wells, has a | 815 |
history of substantial noncompliance with state and federal laws | 816 |
pertaining to oil and gas operations or environmental protection | 817 |
or the laws of another country pertaining to oil and gas | 818 |
operations or environmental protection that indicates that the | 819 |
applicant lacks sufficient reliability, expertise, and competence | 820 |
to operate the proposed new injection well in substantial | 821 |
compliance with this chapter and rules adopted under it. | 822 |
(C) An owner that has submitted the information required | 823 |
under division (A) of this section annually shall submit to the | 824 |
chief all information required to be submitted under division (A) | 825 |
of this section that has changed or been added in the immediately | 826 |
preceding year. If, during that period, there have been no changes | 827 |
in or additions to that information, the owner shall submit to the | 828 |
chief an affidavit stating that there have been no changes in or | 829 |
additions to that information during that time period. The chief | 830 |
may revoke the permit for the injection well if the updated | 831 |
information indicates any of the reasons specified in division (B) | 832 |
of this section for the denial of an application for a permit for | 833 |
an injection well. | 834 |
(2) "Key employee" means an individual employed by an | 848 |
applicant for a permit for an injection well in a supervisory | 849 |
capacity or who is empowered to make discretionary decisions with | 850 |
respect to the injection well operations of the applicant, but | 851 |
does not include an employee who is exclusively engaged in the | 852 |
physical or mechanical transportation or disposal of brine or | 853 |
other waste substances. If the applicant has entered into a | 854 |
contract with another person to operate the injection well that is | 855 |
the subject of the application, "key employee" includes an | 856 |
employee of the contractor who acts in a supervisory capacity or | 857 |
is empowered to make discretionary decisions with respect to the | 858 |
operation of the injection well. | 859 |
Sec. 1509.31. (A) Whenever the entire interest of an oil and | 860 |
gas lease is assigned or otherwise transferred, the assignor or | 861 |
transferor shall notify the holders of the royalty interests, and, | 862 |
if a well or wells exist on the lease, the division of oil and gas | 863 |
resources management, of the name and address of the assignee or | 864 |
transferee by certified mail, return receipt requested, not later | 865 |
than thirty days after the date of the assignment or transfer. | 866 |
When notice of any such assignment or transfer is required to be | 867 |
provided to the division, it shall be provided on a form | 868 |
prescribed and provided by the division and verified by both the | 869 |
assignor or transferor and by the assignee or transferee and shall | 870 |
be accompanied by a nonrefundable fee of one hundred dollars for | 871 |
each well. The notice form applicable to assignments or transfers | 872 |
of a well to the owner of the surface estate of the tract on which | 873 |
the well is located shall contain a statement informing the | 874 |
landowner that the well may require periodic servicing to maintain | 875 |
its productivity; that, upon assignment or transfer of the well to | 876 |
the landowner, the landowner becomes responsible for compliance | 877 |
with the requirements of this chapter and rules adopted under it, | 878 |
including, without limitation, the proper disposal of brine | 879 |
obtained from the well, the plugging of the well when it becomes | 880 |
incapable of producing oil or gas, and the restoration of the well | 881 |
site; and that, upon assignment or transfer of the well to the | 882 |
landowner, the landowner becomes responsible for the costs of | 883 |
compliance with the requirements of this chapter and rules adopted | 884 |
under it and the costs for operating and servicing the well. | 885 |
(B) When the entire interest of a well is proposed to be | 886 |
assigned or otherwise transferred to the landowner for use as an | 887 |
exempt domestic well, the owner who has been issued a permit under | 888 |
this chapter for the well shall submit to the chief of the | 889 |
division of oil and gas resources management an application for | 890 |
the assignment or transfer that contains all documents that the | 891 |
chief requires and a nonrefundable fee of one hundred dollars. The | 892 |
application for such an assignment or transfer shall be prescribed | 893 |
and provided by the chief. The chief may approve the application | 894 |
if the application is accompanied by a release of all of the oil | 895 |
and gas leases that are included in the applicable formation of | 896 |
the drilling unit, the release is in a form such that the well | 897 |
ownership merges with the fee simple interest of the surface | 898 |
tract, and the release is in a form that may be recorded. However, | 899 |
if the owner of the well does not release the oil and gas leases | 900 |
associated with the well that is proposed to be assigned or | 901 |
otherwise transferred or if the fee simple tract that results from | 902 |
the merger of the well ownership with the fee simple interest of | 903 |
the surface tract is less than five acres, the proposed exempt | 904 |
domestic well owner shall post a five thousand dollar bond with | 905 |
the division prior to the assignment or transfer of the well to | 906 |
ensure that the well will be properly plugged. The chief, for good | 907 |
cause, may modify the requirements of this section governing the | 908 |
assignment or transfer of the interests of a well to the | 909 |
landowner. Upon the assignment or transfer of the well, the owner | 910 |
of an exempt domestic well is not subject to the severance tax | 911 |
levied under section 5749.02 of the Revised Code, but is subject | 912 |
to all applicable fees established in this chapter. | 913 |
(C) The owner holding a permit under section 1509.05 of the | 914 |
Revised Code is responsible for all obligations and liabilities | 915 |
imposed by this chapter and any rules, orders, and terms and | 916 |
conditions of a permit adopted or issued under it, and no | 917 |
assignment or transfer by the owner relieves the owner of the | 918 |
obligations and liabilities until and unless the assignee or | 919 |
transferee files with the division the information described in | 920 |
divisions (A)(1), (2), (3), (4), (5), (10), (11), and (12)(13) of | 921 |
section 1509.06 of the Revised Code; obtains liability insurance | 922 |
coverage required by section 1509.07 of the Revised Code, except | 923 |
when none is required by that section; and executes and files a | 924 |
surety bond, negotiable certificates of deposit or irrevocable | 925 |
letters of credit, or cash, as described in that section. Instead | 926 |
of a bond, but only upon acceptance by the chief, the assignee or | 927 |
transferee may file proof of financial responsibility, described | 928 |
in section 1509.07 of the Revised Code. Section 1509.071 of the | 929 |
Revised Code applies to the surety bond, cash, and negotiable | 930 |
certificates of deposit and irrevocable letters of credit | 931 |
described in this section. Unless the chief approves a | 932 |
modification, each assignee or transferee shall operate in | 933 |
accordance with the plans and information filed by the permit | 934 |
holder pursuant to section 1509.06 of the Revised Code. | 935 |
(D) If a mortgaged property that is being foreclosed is | 936 |
subject to an oil or gas lease, pipeline agreement, or other | 937 |
instrument related to the production or sale of oil or natural gas | 938 |
and the lease, agreement, or other instrument was recorded | 939 |
subsequent to the mortgage, and if the lease, agreement, or other | 940 |
instrument is not in default, the oil or gas lease, pipeline | 941 |
agreement, or other instrument, as applicable, has priority over | 942 |
all other liens, claims, or encumbrances on the property so that | 943 |
the oil or gas lease, pipeline agreement, or other instrument is | 944 |
not terminated or extinguished upon the foreclosure sale of the | 945 |
mortgaged property. If the owner of the mortgaged property was | 946 |
entitled to oil and gas royalties before the foreclosure sale, the | 947 |
oil or gas royalties shall be paid to the purchaser of the | 948 |
foreclosed property. | 949 |