As Passed by the Senate

129th General Assembly
Regular Session
2011-2012
Sub. S. B. No. 315


Senator Jones  

(by request)

Cosponsors: Senators Coley, Bacon, Balderson, Beagle, Eklund, Lehner, Niehaus, Peterson, Schaffer 



A BILL
To amend sections 122.075, 123.011, 125.836, 131.50, 1
133.06, 156.01, 156.02, 156.03, 156.04, 303.213, 2
1509.01, 1509.02, 1509.03, 1509.04, 1509.06, 3
1509.07, 1509.10, 1509.11, 1509.22, 1509.221, 4
1509.222, 1509.223, 1509.23, 1509.28, 1509.33, 5
1509.99, 1514.01, 1514.02, 1514.021, 1514.03, 6
1514.05, 3706.27, 4905.03, 4905.90, 4905.91, 7
4905.95, 4906.01, 4906.03, 4906.05, 4906.06, 8
4906.07, 4906.10, 4906.20, 4928.01, 4928.02, 9
4928.61, 4928.62, 4928.64, 4928.65, 4928.66, 10
4935.04, and 5703.21; and to enact sections 11
4905.911, 4905.912, 4928.111, 4928.70, 4928.71, 12
4928.72, 5727.821, and 6301.12 of the Revised 13
Code; and to amend section 245.10 of Am. Sub. H.B. 14
153 of the 129th General Assembly to make changes 15
to the energy and natural resources laws and 16
related programs of the state and to make an 17
appropriation.18


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

       Section 101.01. That sections 122.075, 123.011, 125.836, 19
131.50, 133.06, 156.01, 156.02, 156.03, 156.04, 303.213, 1509.01, 20
1509.02, 1509.03, 1509.04, 1509.06, 1509.07, 1509.10, 1509.11, 21
1509.22, 1509.221, 1509.222, 1509.223, 1509.23, 1509.28, 1509.33, 22
1509.99, 1514.01, 1514.02, 1514.021, 1514.03, 1514.05, 3706.27, 23
4905.03, 4905.90, 4905.91, 4905.95, 4906.01, 4906.03, 4906.05, 24
4906.06, 4906.07, 4906.10, 4906.20, 4928.01, 4928.02, 4928.61, 25
4928.62, 4928.64, 4928.65, 4928.66, 4935.04, and 5703.21 be 26
amended and sections 4905.911, 4905.912, 4928.111, 4928.70, 27
4928.71, 4928.72, 5727.821, and 6301.12 of the Revised Code be 28
enacted to read as follows:29

       Sec. 122.075. (A) As used in this section:30

       (1) "Alternative fuel" has the same meaning as in section 31
125.831 of the Revised Code.32

       (2) "Biodiesel" means a mono-alkyl ester combustible liquid 33
fuel that is derived from vegetable oils or animal fats, or any 34
combination of those reagents, and that meets American society for 35
testing and materials specification D6751-03a for biodiesel fuel 36
(B100) blend stock distillate fuels.37

       (3) "Diesel fuel" and "gasoline" have the same meanings as in 38
section 5735.01 of the Revised Code.39

       (4) "Ethanol" has the same meaning as in section 5733.46 of 40
the Revised Code.41

       (5) "Blended biodiesel" means diesel fuel containing at least 42
twenty per cent biodiesel by volume.43

       (6) "Blended gasoline" means gasoline containing at least 44
eighty-five per cent ethanol by volume.45

       (7) "Incremental cost" means either of the following:46

       (a) The difference in cost between blended gasoline and 47
gasoline containing ten per cent or less ethanol at the time that 48
the blended gasoline is purchased;49

       (b) The difference in cost between blended biodiesel and 50
diesel fuel containing two per cent or less biodiesel at the time 51
that the blended biodiesel is purchased.52

       (B) For the purpose of improving the air quality in this 53
state, the director of development shall establish an alternative 54
fuel transportation grant program under which the director may 55
make grants and loans to businesses, nonprofit organizations, 56
public school systems, or local governments for the purchase and 57
installation of alternative fuel refueling or distribution 58
facilities and terminals, for the purchase and use of alternative 59
fuel, and to pay the costs of educational and promotional 60
materials and activities intended for prospective alternative fuel 61
consumers, fuel marketers, and others in order to increase the 62
availability and use of alternative fuel.63

       (C) The director, in consultation with the director of 64
agriculture, shall adopt rules in accordance with Chapter 119. of 65
the Revised Code that are necessary for the administration of the 66
alternative fuel transportation grant program. The rules shall 67
establish at least all of the following:68

       (1) An application form and procedures governing the 69
application process for a grantreceiving funds under the program;70

       (2) A procedure for prioritizing the award of grants and 71
loans under the program. The procedures shall give preference to 72
all of the following:73

       (a) Publicly accessible refueling facilities;74

       (b) Entities seeking grantsapplying to the program that have 75
secured funding from other sources, including, but not limited to, 76
private or federal grantsincentives;77

       (c) Entities that have presented compelling evidence of 78
demand in the market in which the facilities or terminals will be 79
located;80

       (d) Entities that have committed to utilizing purchased or 81
installed facilities or terminals for the greatest number of 82
years;83

       (e) Entities that will be purchasing or installing facilities 84
or terminals for any type of alternative fuel.85

       (3) A requirement that the maximum grantincentive for the 86
purchase and installation of an alternative fuel refueling or 87
distribution facility or terminal be eighty per cent of the cost 88
of the facility or terminal, except that at least twenty per cent 89
of the total net cost of the facility or terminal shall be 90
incurred by the grant recipient and not compensated for by any 91
other source;92

       (4) A requirement that the maximum grantincentive for the 93
purchase of alternative fuel be eighty per cent of the cost of the 94
fuel or, in the case of blended biodiesel or blended gasoline, 95
eighty per cent of the incremental cost of the blended biodiesel 96
or blended gasoline;97

       (5) Any other criteria, procedures, or guidelines that the 98
director determines are necessary to administer the program, 99
including fees, charges, interest rates, and payment schedules.100

       (D) An applicant for a grant or loan under this section that 101
sells motor vehicle fuel at retail shall agree that if the 102
applicant receives a grantfunding, the applicant will report to 103
the director the gallon or gallon equivalent amounts of 104
alternative fuel the applicant sells at retail in this state for a 105
period of three years after the grant is awardedproject is 106
completed.107

       The director shall enter into a written confidentiality 108
agreement with the applicant regarding the gallon or gallon 109
equivalent amounts sold as described in this division, and upon 110
execution of the agreement this information is not a public 111
record.112

       (E) There is hereby created in the state treasury the 113
alternative fuel transportation grant fund. The fund shall consist 114
of money transferred to the fund under division (C) of section 115
125.836 and under division (B)(2) of section 3706.27 of the 116
Revised Code, money that is appropriated to it by the general 117
assembly, and money as may be specified by the general assembly 118
from the advanced energy fund created by section 4928.61 of the 119
Revised Code. Money in the fund shall be used to make grants and 120
loans under the alternative fuel transportation grant program and 121
by the director in the administration of that program.122

       Sec. 123.011.  (A) As used in this section:123

       (1) "Construct" includes reconstruct, improve, renovate, 124
enlarge, or otherwise alter.125

        (2) "Energy consumption analysis" means the evaluation of all 126
energy consuming systems, components, and equipment by demand and 127
type of energy, including the internal energy load imposed on a 128
facility by its occupants and the external energy load imposed by 129
climatic conditions.130

       (3) "Energy performance index" means a number describing the 131
energy requirements of a facility per square foot of floor space 132
or per cubic foot of occupied volume as appropriate under defined 133
internal and external ambient conditions over an entire seasonal 134
cycle.135

       (4) "Facility" means a building or other structure, or part 136
of a building or other structure, that includes provision for a 137
heating, refrigeration, ventilation, cooling, lighting, hot water, 138
or other major energy consuming system, component, or equipment.139

       (5) "Life-cycle cost analysis" means a general approach to 140
economic evaluation that takes into account all dollar costs 141
related to owning, operating, maintaining, and ultimately 142
disposing of a project over the appropriate study period.143

       (6) "Political subdivision" means a county, township, 144
municipal corporation, board of education of any school district, 145
or any other body corporate and politic that is responsible for 146
government activities in a geographic area smaller than that of 147
the state.148

       (7) "State funded" means funded in whole or in part through 149
appropriation by the general assembly or through the use of any 150
guarantee provided by this state.151

       (8) "State institution of higher education" has the same 152
meaning as in section 3345.011 of the Revised Code.153

       (9) "Cogeneration" means the simultaneous production of 154
thermal energy and electricity for use primarily within a building 155
or complex of buildings.156

        (B) There is hereby created within the department of 157
administrative services the office of energy services. The office 158
shall be under the supervision of a manager, who shall be 159
appointed by the director of administrative services. The director 160
shall assign to the office such number of employees and furnish 161
such equipment and supplies as are necessary for the performance 162
of the office's duties.163

       The office shall develop energy efficiency and conservation 164
programs in each of the following areas:165

       (1) New construction design and review;166

       (2) Existing building audit and retrofit;167

       (3) Energy efficient procurement;168

       (4) Alternative fuel vehicles.169

       The office may accept and administer grants from public and 170
private sources for carrying out any of its duties under this 171
section.172

       (C) No state agency, department, division, bureau, office, 173
unit, board, commission, authority, quasi-governmental entity, or 174
institution, including those agencies otherwise excluded from the 175
jurisdiction of the department under division (A)(3) of section 176
123.01 of the Revised Code, shall lease, construct, or cause to be 177
leased or constructed, within the limits prescribed in this 178
section, a state-funded facility, without a proper life-cycle cost 179
analysis or, in the case of a lease, an energy consumption 180
analysis, as computed or prepared by a qualified architect or 181
engineer in accordance with the rules required by division (D) of 182
this section.183

       Construction shall proceed only upon the disclosure to the 184
office, for the facility chosen, of the life-cycle costs as 185
determined in this section and the capitalization of the initial 186
construction costs of the building. The results of life-cycle cost 187
analysis shall be a primary consideration in the selection of a 188
building design. That analysis shall be required only for 189
construction of buildings with an area of five thousand square 190
feet or greater. For projects with an estimated construction cost 191
exceeding fifty million dollars, the analysis shall include a 192
review of cogeneration as an energy source. An energy consumption 193
analysis for the term of a proposed lease shall be required only 194
for the leasing of an area of twenty thousand square feet or 195
greater within a given building boundary. That analysis shall be a 196
primary consideration in the selection of a facility to be leased.197

       Nothing in this section shall deprive or limit any state 198
agency that has review authority over design, construction, or 199
leasing plans from requiring a life-cycle cost analysis or energy 200
consumption analysis.201

       (D) For the purposes of assisting the department in its 202
responsibility for state-funded facilities pursuant to section 203
123.01 of the Revised Code and of cost-effectively reducing the 204
energy consumption of those and any other state-funded facilities, 205
thereby promoting fiscal, economic, and environmental benefits to 206
this state, the office shall promulgate rules specifying 207
cost-effective, energy efficiency and conservation standards that 208
may govern the lease, design, construction, operation, and 209
maintenance of all state-funded facilities, except facilities of 210
state institutions of higher education or facilities operated by a 211
political subdivision. The office of energy efficiency in the 212
department of development shall cooperate in providing information 213
and technical expertise to the office of energy services to ensure 214
promulgation of rules of maximum effectiveness. The standards 215
prescribed by rules promulgated under this division may draw from 216
or incorporate, by reference or otherwise and in whole or in part, 217
standards already developed or implemented by any competent, 218
public or private standards organization or program. The rules 219
also may include any of the following:220

        (1) Specifications for a life-cycle cost analysis that shall 221
determine, for the economic life of such state-funded facility, 222
the reasonably expected costs of facility ownership, operation, 223
and maintenance including labor and materials. Life-cycle cost may 224
be expressed as an annual cost for each year of the facility's 225
use. 226

        A life-cycle cost analysis additionally may include an energy 227
consumption analysis that conforms to division (D)(2) of this 228
section.229

        (2) Specifications for an energy consumption analysis of the 230
facility's heating, refrigeration, ventilation, cooling, lighting, 231
hot water, and other major energy consuming systems, components, 232
and equipment. 233

        A life-cycle cost analysis and energy consumption analysis 234
shall be based on the best currently available methods of 235
analysis, such as those of the national institute of standards and 236
technology, the United States department of energy or other 237
federal agencies, professional societies, and directions developed 238
by the department.239

        (3) Specifications for energy performance indices, to be used 240
to audit and evaluate competing design proposals submitted to the 241
state.242

        (4) A requirement that, not later than two years after April 243
6, 2007, each state-funded facility, except a facility of a state 244
institution of higher education or a facility operated by a 245
political subdivision, is managed by at least one building 246
operator certified under the building operator certification 247
program or any equivalent program or standards as shall be 248
prescribed in the rules and considered reasonably equivalent.249

       (5) An application process by which a manager of a specified 250
state-funded facility, except a facility of a state institution of 251
higher education or a facility operated by a political 252
subdivision, may apply for a waiver of compliance with any 253
provision of the rules required by divisions (D)(1) to (4) of this 254
section.255

       (E) The office of energy services shall promulgate rules to 256
ensure that energy efficiency and conservation will be considered 257
in the purchase of products and equipment, except motor vehicles, 258
by any state agency, department, division, bureau, office, unit, 259
board, commission, authority, quasi-governmental entity, or 260
institution. Minimum energy efficiency standards for purchased 261
products and equipment may be required, based on federal testing 262
and labeling where available or on standards developed by the 263
office. The rules shall apply to the competitive selection of 264
energy consuming systems, components, and equipment under Chapter 265
125. of the Revised Code where possible.266

        The office also shall ensure energy efficient and energy 267
conserving purchasing practices by doing all of the following:268

       (1) Cooperatively with the office of energy efficiency, 269
identifying available energy efficiency and conservation 270
opportunities;271

       (2) Providing for interchange of information among purchasing 272
agencies;273

       (3) Identifying laws, policies, rules, and procedures that 274
need modification;275

       (4) Monitoring experience with and the cost-effectiveness of 276
this state's purchase and use of motor vehicles and of major 277
energy-consuming systems, components, equipment, and products 278
having a significant impact on energy consumption by government;279

       (5) Cooperatively with the office of energy efficiency, 280
providing technical assistance and training to state employees 281
involved in the purchasing process.282

       The department of development shall make recommendations to 283
the office regarding planning and implementation of purchasing 284
policies and procedures supportive of energy efficiency and 285
conservation.286

       (F)(1) The office of energy services shall require all state 287
agencies, departments, divisions, bureaus, offices, units, 288
commissions, boards, authorities, quasi-governmental entities, 289
institutions, and state institutions of higher education to 290
implement procedures ensuring that all their passenger automobiles 291
acquired in each fiscal year, except for those passenger 292
automobiles acquired for use in law enforcement or emergency 293
rescue work, achieve a fleet average fuel economy of not less than 294
the fleet average fuel economy for that fiscal year as shall be 295
prescribed by the office by rule. The office shall promulgate the 296
rule prior to the beginning of the fiscal year in accordance with 297
the average fuel economy standards established pursuant to federal 298
law for passenger automobiles manufactured during the model year 299
that begins during the fiscal year.300

       (2) Each state agency, department, division, bureau, office, 301
unit, commission, board, authority, quasi-governmental entity, 302
institution, and state institution of higher education shall 303
determine its fleet average fuel economy by dividing:304

       (a) The total number of passenger vehicles acquired during 305
the fiscal year, except for those passenger vehicles acquired for 306
use in law enforcement or emergency rescue work, by307

       (b) A sum of terms, each of which is a fraction created by 308
dividing:309

       (i) The number of passenger vehicles of a given make, model, 310
and year, except for passenger vehicles acquired for use in law 311
enforcement or emergency rescue work, acquired during the fiscal 312
year, by313

       (ii) The fuel economy measured by the administrator of the 314
United States environmental protection agency, for the given make, 315
model, and year of vehicle, that constitutes an average fuel 316
economy for combined city and highway driving.317

        As used in division (F)(2) of this section, "acquired" means 318
leased for a period of sixty continuous days or more, or 319
purchased.320

       (G) Each state agency, department, division, bureau, office, 321
unit, board, commission, authority, quasi-governmental entity, 322
institution, and state institution of higher education shall 323
comply with any applicable provision of this section or of a rule 324
promulgated pursuant to division (D) or (F) of this section.325

       Sec. 125.836.  (A) As used in this section:326

       (1) "Biodiesel," "blended biodiesel," and "diesel fuel" have 327
the same meanings as in section 125.831 of the Revised Code.328

       (2) "Credit" means a credit generated by the acquisition of 329
alternative fueled vehicles in accordance with the "Energy Policy 330
Act of 1992," 106 Stat. 2897, 42 U.S.C. 13257.331

       (3) "Incremental cost" means the difference in cost between 332
blended biodiesel and conventional petroleum-based diesel fuel at 333
the time the blended biodiesel is purchased.334

       (B) The department of administrative services shall establish 335
and administer a credit banking and selling program. The 336
department may sell or trade credits in accordance with procedures 337
established pursuant to the "Energy Policy Act of 1992," 106 Stat. 338
2897, 42 U.S.C. 13258.339

       (C) There is hereby created in the state treasury the 340
"biodiesel revolving fund," to which shall be credited moneys 341
received from the sale of credits under this section, any moneys 342
appropriated to the fund by the general assembly, and any other 343
moneys obtained or accepted by the department for crediting to the 344
fund. Moneys credited to the fund shall be used to pay for the 345
incremental cost of biodiesel for use in vehicles owned or leased 346
by the state that use diesel fuel. The director of administrative 347
services, after consultation with the director of development, may 348
direct the director of budget and management to transfer available 349
moneys in the biodiesel revolving fund to the alternative fuel 350
transportation grant fund created in section 122.075 of the 351
Revised Code to be used by the department of development for the 352
purposes specified in that section.353

        (D) The director of administrative services shall adopt rules 354
under Chapter 119. of the Revised Code that are necessary for the 355
administration of the credit banking and selling program.356

       Sec. 131.50.  (A) There is hereby created in the state 357
treasury the state land royalty fund consisting of money credited 358
to it under section 1509.73 of the Revised Code. Any investment 359
proceeds earned on money in the fund shall be credited to the fund 360
and used as required in division (B) or (C) of this section.361

       (B) MoneyExcept as provided in division (C) of this section, 362
money in the state land royalty fund shall be used by state 363
agencies to acquire land and to pay capital costs of state 364
agencies, including equipment and renovations and repairs of 365
facilities, that have contributed to the fund under section 366
1509.73 of the Revised Code. Such a state agency is entitled to 367
receive from the fund the amount that the state agency contributed 368
and a share of the investment earnings of the fund in an amount 369
that is equivalent to the proportionate share of contributions 370
made by the state agency to the fund.371

       (C) Money in the fund that is allocated to a state college or 372
university may be used to pay for operating expenses associated 373
with any property that is owned by the college or university and 374
that is at least partially used for the exploration, development, 375
and production of oil or gas if both of the following apply:376

       (1) The state college or university is engaged in research at 377
the property or in education or outreach regarding the property.378

       (2) The research, education, or outreach is associated with 379
furthering the public understanding of how oil and gas 380
exploration, development, or production potentially benefits the 381
public and impacts the use of the state's natural resources.382

       (D) As used in this section, "state agency" has the same 383
meaning as in section 1509.70 of the Revised Code.384

       Sec. 133.06.  (A) A school district shall not incur, without 385
a vote of the electors, net indebtedness that exceeds an amount 386
equal to one-tenth of one per cent of its tax valuation, except as 387
provided in divisions (G) and (H) of this section and in division 388
(C) of section 3313.372 of the Revised Code, or as prescribed in 389
section 3318.052 or 3318.44 of the Revised Code, or as provided in 390
division (J) of this section.391

       (B) Except as provided in divisions (E), (F), and (I) of this 392
section, a school district shall not incur net indebtedness that 393
exceeds an amount equal to nine per cent of its tax valuation.394

       (C) A school district shall not submit to a vote of the 395
electors the question of the issuance of securities in an amount 396
that will make the district's net indebtedness after the issuance 397
of the securities exceed an amount equal to four per cent of its 398
tax valuation, unless the superintendent of public instruction, 399
acting under policies adopted by the state board of education, and 400
the tax commissioner, acting under written policies of the 401
commissioner, consent to the submission. A request for the 402
consents shall be made at least one hundred twenty days prior to 403
the election at which the question is to be submitted.404

       The superintendent of public instruction shall certify to the 405
district the superintendent's and the tax commissioner's decisions 406
within thirty days after receipt of the request for consents.407

       If the electors do not approve the issuance of securities at 408
the election for which the superintendent of public instruction 409
and tax commissioner consented to the submission of the question, 410
the school district may submit the same question to the electors 411
on the date that the next special election may be held under 412
section 3501.01 of the Revised Code without submitting a new 413
request for consent. If the school district seeks to submit the 414
same question at any other subsequent election, the district shall 415
first submit a new request for consent in accordance with this 416
division.417

       (D) In calculating the net indebtedness of a school district, 418
none of the following shall be considered:419

       (1) Securities issued to acquire school buses and other 420
equipment used in transporting pupils or issued pursuant to 421
division (D) of section 133.10 of the Revised Code;422

       (2) Securities issued under division (F) of this section, 423
under section 133.301 of the Revised Code, and, to the extent in 424
excess of the limitation stated in division (B) of this section, 425
under division (E) of this section;426

       (3) Indebtedness resulting from the dissolution of a joint 427
vocational school district under section 3311.217 of the Revised 428
Code, evidenced by outstanding securities of that joint vocational 429
school district;430

       (4) Loans, evidenced by any securities, received under 431
sections 3313.483, 3317.0210, 3317.0211, and 3317.64 of the 432
Revised Code;433

       (5) Debt incurred under section 3313.374 of the Revised Code;434

       (6) Debt incurred pursuant to division (B)(5) of section 435
3313.37 of the Revised Code to acquire computers and related 436
hardware;437

       (7) Debt incurred under section 3318.042 of the Revised Code.438

       (E) A school district may become a special needs district as 439
to certain securities as provided in division (E) of this section.440

       (1) A board of education, by resolution, may declare its 441
school district to be a special needs district by determining both 442
of the following:443

       (a) The student population is not being adequately serviced 444
by the existing permanent improvements of the district.445

       (b) The district cannot obtain sufficient funds by the 446
issuance of securities within the limitation of division (B) of 447
this section to provide additional or improved needed permanent 448
improvements in time to meet the needs.449

       (2) The board of education shall certify a copy of that 450
resolution to the superintendent of public instruction with a 451
statistical report showing all of the following:452

       (a) The history of and a projection of the growth of the tax 453
valuation;454

       (b) The projected needs;455

       (c) The estimated cost of permanent improvements proposed to 456
meet such projected needs.457

       (3) The superintendent of public instruction shall certify 458
the district as an approved special needs district if the 459
superintendent finds both of the following:460

       (a) The district does not have available sufficient 461
additional funds from state or federal sources to meet the 462
projected needs.463

       (b) The projection of the potential average growth of tax 464
valuation during the next five years, according to the information 465
certified to the superintendent and any other information the 466
superintendent obtains, indicates a likelihood of potential 467
average growth of tax valuation of the district during the next 468
five years of an average of not less than one and one-half per 469
cent per year. The findings and certification of the 470
superintendent shall be conclusive.471

       (4) An approved special needs district may incur net 472
indebtedness by the issuance of securities in accordance with the 473
provisions of this chapter in an amount that does not exceed an 474
amount equal to the greater of the following:475

       (a) Twelve per cent of the sum of its tax valuation plus an 476
amount that is the product of multiplying that tax valuation by 477
the percentage by which the tax valuation has increased over the 478
tax valuation on the first day of the sixtieth month preceding the 479
month in which its board determines to submit to the electors the 480
question of issuing the proposed securities;481

       (b) Twelve per cent of the sum of its tax valuation plus an 482
amount that is the product of multiplying that tax valuation by 483
the percentage, determined by the superintendent of public 484
instruction, by which that tax valuation is projected to increase 485
during the next ten years.486

       (F) A school district may issue securities for emergency 487
purposes, in a principal amount that does not exceed an amount 488
equal to three per cent of its tax valuation, as provided in this 489
division.490

       (1) A board of education, by resolution, may declare an 491
emergency if it determines both of the following:492

       (a) School buildings or other necessary school facilities in 493
the district have been wholly or partially destroyed, or condemned 494
by a constituted public authority, or that such buildings or 495
facilities are partially constructed, or so constructed or planned 496
as to require additions and improvements to them before the 497
buildings or facilities are usable for their intended purpose, or 498
that corrections to permanent improvements are necessary to remove 499
or prevent health or safety hazards.500

       (b) Existing fiscal and net indebtedness limitations make 501
adequate replacement, additions, or improvements impossible.502

       (2) Upon the declaration of an emergency, the board of 503
education may, by resolution, submit to the electors of the 504
district pursuant to section 133.18 of the Revised Code the 505
question of issuing securities for the purpose of paying the cost, 506
in excess of any insurance or condemnation proceeds received by 507
the district, of permanent improvements to respond to the 508
emergency need.509

       (3) The procedures for the election shall be as provided in 510
section 133.18 of the Revised Code, except that:511

       (a) The form of the ballot shall describe the emergency 512
existing, refer to this division as the authority under which the 513
emergency is declared, and state that the amount of the proposed 514
securities exceeds the limitations prescribed by division (B) of 515
this section;516

       (b) The resolution required by division (B) of section 133.18 517
of the Revised Code shall be certified to the county auditor and 518
the board of elections at least one hundred days prior to the 519
election;520

       (c) The county auditor shall advise and, not later than 521
ninety-five days before the election, confirm that advice by 522
certification to, the board of education of the information 523
required by division (C) of section 133.18 of the Revised Code;524

       (d) The board of education shall then certify its resolution 525
and the information required by division (D) of section 133.18 of 526
the Revised Code to the board of elections not less than ninety 527
days prior to the election.528

       (4) Notwithstanding division (B) of section 133.21 of the 529
Revised Code, the first principal payment of securities issued 530
under this division may be set at any date not later than sixty 531
months after the earliest possible principal payment otherwise 532
provided for in that division.533

       (G) The board of education may contract with an architect, 534
professional engineer, or other person experienced in the design 535
and implementation of energy conservation measures for an analysis 536
and recommendations pertaining to installations, modifications of 537
installations, or remodeling that would significantly reduce 538
energy consumption in buildings owned by the district. The report 539
shall include estimates of all costs of such installations, 540
modifications, or remodeling, including costs of design, 541
engineering, installation, maintenance, repairs, and debt service, 542
forgone residual value of materials or equipment replaced by the 543
energy conservation measure, as defined by the Ohio school 544
facilities commission, a baseline analysis of actual energy 545
consumption data for the preceding fivethree years, and estimates 546
of the amounts by which energy consumption and resultant 547
operational and maintenance costs, as defined by the commission, 548
would be reduced.549

       If the board finds after receiving the report that the amount 550
of money the district would spend on such installations, 551
modifications, or remodeling is not likely to exceed the amount of 552
money it would save in energy and resultant operational and 553
maintenance costs over the ensuing fifteen years, the board may 554
submit to the commission a copy of its findings and a request for 555
approval to incur indebtedness to finance the making or 556
modification of installations or the remodeling of buildings for 557
the purpose of significantly reducing energy consumption.558

       If the commission determines that the board's findings are 559
reasonable, it shall approve the board's request. Upon receipt of 560
the commission's approval, the district may issue securities 561
without a vote of the electors in a principal amount not to exceed 562
nine-tenths of one per cent of its tax valuation for the purpose 563
of making such installations, modifications, or remodeling, but 564
the total net indebtedness of the district without a vote of the 565
electors incurred under this and all other sections of the Revised 566
Code, except section 3318.052 of the Revised Code, shall not 567
exceed one per cent of the district's tax valuation.568

       So long as any securities issued under division (G) of this 569
section remain outstanding, the board of education shall monitor 570
the energy consumption and resultant operational and maintenance 571
costs of buildings in which installations or modifications have 572
been made or remodeling has been done pursuant to division (G) of 573
this section and shall maintain and annually update a report 574
documenting the reductions in energy consumption and resultant 575
operational and maintenance cost savings attributable to such 576
installations, modifications, or remodeling. The report shall be 577
certified by an architect or engineer independent of any person 578
that provided goods or services to the board in connection with 579
the energy conservation measures that are the subject of the 580
report. The resultant operational and maintenance cost savings 581
shall be certified by the school district treasurer. The report 582
shall be submitted annually to the commission.583

       (H) With the consent of the superintendent of public 584
instruction, a school district may incur without a vote of the 585
electors net indebtedness that exceeds the amounts stated in 586
divisions (A) and (G) of this section for the purpose of paying 587
costs of permanent improvements, if and to the extent that both of 588
the following conditions are satisfied:589

       (1) The fiscal officer of the school district estimates that 590
receipts of the school district from payments made under or 591
pursuant to agreements entered into pursuant to section 725.02, 592
1728.10, 3735.671, 5709.081, 5709.082, 5709.40, 5709.41, 5709.62, 593
5709.63, 5709.632, 5709.73, 5709.78, or 5709.82 of the Revised 594
Code, or distributions under division (C) of section 5709.43 of 595
the Revised Code, or any combination thereof, are, after 596
accounting for any appropriate coverage requirements, sufficient 597
in time and amount, and are committed by the proceedings, to pay 598
the debt charges on the securities issued to evidence that 599
indebtedness and payable from those receipts, and the taxing 600
authority of the district confirms the fiscal officer's estimate, 601
which confirmation is approved by the superintendent of public 602
instruction;603

       (2) The fiscal officer of the school district certifies, and 604
the taxing authority of the district confirms, that the district, 605
at the time of the certification and confirmation, reasonably 606
expects to have sufficient revenue available for the purpose of 607
operating such permanent improvements for their intended purpose 608
upon acquisition or completion thereof, and the superintendent of 609
public instruction approves the taxing authority's confirmation.610

       The maximum maturity of securities issued under division (H) 611
of this section shall be the lesser of twenty years or the maximum 612
maturity calculated under section 133.20 of the Revised Code.613

       (I) A school district may incur net indebtedness by the 614
issuance of securities in accordance with the provisions of this 615
chapter in excess of the limit specified in division (B) or (C) of 616
this section when necessary to raise the school district portion 617
of the basic project cost and any additional funds necessary to 618
participate in a project under Chapter 3318. of the Revised Code, 619
including the cost of items designated by the Ohio school 620
facilities commission as required locally funded initiatives, the 621
cost of other locally funded initiatives in an amount that does 622
not exceed fifty per cent of the district's portion of the basic 623
project cost, and the cost for site acquisition. The school 624
facilities commission shall notify the superintendent of public 625
instruction whenever a school district will exceed either limit 626
pursuant to this division.627

       (J) A school district whose portion of the basic project cost 628
of its classroom facilities project under sections 3318.01 to 629
3318.20 of the Revised Code is greater than or equal to one 630
hundred million dollars may incur without a vote of the electors 631
net indebtedness in an amount up to two per cent of its tax 632
valuation through the issuance of general obligation securities in 633
order to generate all or part of the amount of its portion of the 634
basic project cost if the controlling board has approved the 635
school facilities commission's conditional approval of the project 636
under section 3318.04 of the Revised Code. The school district 637
board and the Ohio school facilities commission shall include the 638
dedication of the proceeds of such securities in the agreement 639
entered into under section 3318.08 of the Revised Code. No state 640
moneys shall be released for a project to which this section 641
applies until the proceeds of any bonds issued under this section 642
that are dedicated for the payment of the school district portion 643
of the project are first deposited into the school district's 644
project construction fund.645

       Sec. 156.01.  As used in sections 156.01 to 156.05 of the 646
Revised Code:647

       (A) "Avoided capital costs" means a measured reduction in the 648
cost of future equipment or other capital purchases that results 649
from implementation of one or more energy or water conservation 650
measures, when compared to an established baseline for previous 651
such cost.652

       (B) "Energy conservation measure" means an installation or 653
modification of an installation in, or a remodeling of, an 654
existing building in order to reduce energy consumption and 655
operating costs. The term includes any of the following:656

       (1) Installation or modification of insulation in the 657
building structure and systems within the building;658

       (2) Installation or modification of storm windows and doors, 659
multiglazed windows and doors, and heat absorbing or heat 660
reflective glazed and coated window and door systems; installation 661
of additional glazing; reductions in glass area; and other window 662
and door system modifications that reduce energy consumption and 663
operating costs;664

       (3) Installation or modification of automatic energy control 665
systems;666

       (4) Replacement or modification of heating, ventilating, or 667
air conditioning systems;668

       (5) Application of caulking and weather stripping;669

       (6) Replacement or modification of lighting fixtures to 670
increase the energy efficiency of the lighting system without 671
increasing the overall illumination of a building unless the 672
increase in illumination is necessary to conform to the applicable 673
state or local building code for the proposed lighting system;674

       (7) Installation or modification of energy recovery systems;675

       (8) Installation or modification of cogeneration systems that 676
produce steam or forms of energy such as heat, as well as 677
electricity, for use primarily within a building or complex of 678
buildings;679

       (9) Installation or modification of trigeneration systems 680
that produce heat and cooling, as well as electricity, for use 681
primarily within a building or complex of buildings;682

       (10) Installation or modification of systems that harvest 683
renewable energy from solar, wind, water, biomass, bio-gas, or 684
geothermal sources, for use primarily within a building or complex 685
of buildings; 686

       (11) Retro-commissioning or recommissioning energy-related 687
systems to verify that they are installed and calibrated to 688
optimize energy and operational performance within a building or 689
complex of buildings;690

       (12) Consolidation, virtualization, and optimization of 691
computer servers, data storage devices, or other information 692
technology hardware and infrastructure;693

       (13) Any other modification, installation, or remodeling 694
approved by the director of administrative services as an energy 695
conservation measure for one or more buildings owned by theeither 696
of the following:697

       (a) The state;698

       (b) A state institution of higher education as defined in 699
section 3345.011 of the Revised Code that implements the energy 700
conservation measure in consultation with the director.701

       (C) "Energy saving measure" means the acquisition and 702
installation, by purchase, lease, lease-purchase, lease with an 703
option to buy, or installment purchase, of an energy conservation 704
measure and any attendant architectural and engineering consulting 705
services.706

       (D) "Energy, water, or wastewater cost savings" means a 707
measured reduction in, as applicable, the cost of fuel, energy or 708
water consumption, wastewater production, or stipulated operation 709
or maintenance resulting from the implementation of one or more 710
energy or water conservation measures, when compared to an 711
established baseline for previous such costs, respectively.712

       (E) "Operating cost savings" means a measured reduction in 713
the cost of stipulated operation or maintenance created by the 714
installation of new equipment or implementation of a new service, 715
when compared with an established baseline for previous such 716
stipulated costs.717

       (F) "Water conservation measure" means an installation or 718
modification of an installation in, or a remodeling of, an 719
existing building or the surrounding grounds in order to reduce 720
water consumption. The term includes any of the following:721

       (1) Water-conserving fixture, appliance, or equipment, or the 722
substitution of a nonwater-using fixture, appliance, or equipment;723

       (2) Water-conserving, landscape irrigation equipment;724

       (3) Landscaping measure that reduces storm water runoff 725
demand and capture and hold applied water and rainfall, including 726
landscape contouring such as the use of a berm, swale, or terrace 727
and including the use of a soil amendment, including compost, that 728
increases the water-holding capacity of the soil;729

       (4) Rainwater harvesting equipment or equipment to make use 730
of water collected as part of a storm water system installed for 731
water quality control;732

       (5) Equipment for recycling or reuse of water originating on 733
the premises or from another source, including treated, municipal 734
effluent;735

       (6) Equipment needed to capture water for nonpotable uses 736
from any nonconventional, alternate source, including air 737
conditioning condensate or gray water;738

       (7) Any other modification, installation, or remodeling 739
approved by the board of trustees of a state institution of higher 740
education as defined in section 3345.011 of the Revised Code741
director of administrative services as a water conservation 742
measure for one or more buildings or the surrounding grounds owned 743
by either of the following:744

       (a) The state;745

       (b) A state institution of higher education as defined in 746
section 3345.011 of the Revised Code that implements the water 747
conservation measure in consultation with the director.748

       (G) "Water saving measure" means the acquisition and 749
installation, by the purchase, lease, lease-purchase, lease with 750
an option to buy, or installment purchases of a water conservation 751
measure and any attendant architectural and engineering consulting 752
services.753

       Sec. 156.02. (A) The director of administrative services may 754
contract with an energy services company, contractor, architect, 755
professional engineer, or other person experienced in the design 756
and implementation of energy conservation measures for a report 757
containing an analysis and recommendations pertaining to the 758
implementation of energy conservation measures that would 759
significantly reduce energy consumption and operating costs in any 760
buildings owned by the state. The report shall include estimates 761
of all costs of such measures, including the costs of design, 762
engineering, installation, maintenance, repairs, and debt service, 763
and estimates of the amounts by which energy consumption and 764
operating costs would be reduced.765

       (B) Upon the request of the board of trustees or managing 766
authority of a state institution of higher education as defined in 767
section 3345.011 of the Revised Code, the director may contract 768
withor a water services company, architect, professional 769
engineer, contractor, or other person experienced in the design 770
and implementation of energy or water conservation measures for a 771
report containing an analysis and recommendations pertaining to 772
the implementation of energy or water conservation measures that 773
result in energy, water, or wastewater cost savings, operating 774
cost savings, or avoided capital costs for the institution. The 775
report shall include estimates of all costs of such installations, 776
including the costs of design, engineering, installation, 777
maintenance, repairs, and debt service, and estimates of the 778
energy, water, or wastewater cost savings, operating cost savings, 779
and avoided capital costs created.780

       Sec. 156.03.  (A) If the director of administrative services 781
wishes to enter into an installment payment contract pursuant to 782
section 156.04 of the Revised Code or any other contract to 783
implement one or more energy saving measures or, in the case of a 784
state institution of higher education pursuant to division (B) of 785
section 156.02 of the Revised Code, energy or water saving 786
measures, the director may proceed under Chapter 153. of the 787
Revised Code, or, alternatively, the director may request the 788
controlling board to exempt the contract from Chapter 153. of the 789
Revised Code.790

       If the controlling board by a majority vote approves an 791
exemption, that chapter shall not apply to the contract and 792
instead the director shall request proposals from at least three 793
parties for the implementation of the energy or water saving 794
measures. Prior to providing any interested party a copy of any 795
such request, the director shall advertise, in a newspaper of 796
general circulation in the county where the contract is to be 797
performed, and may advertise by electronic means pursuant to rules 798
adopted by the director, the director's intent to request 799
proposals for the implementation of the energy or water saving 800
measures. The notice shall invite interested parties to submit 801
proposals for consideration and shall be published at least thirty 802
days prior to the date for accepting proposals.803

       (B) Upon receiving the proposals, the director shall analyze 804
them and, after considering the cost estimates of each proposal 805
and the availability of funds to pay for each with current 806
appropriations or by financing the cost of each through an 807
installment payment contract under section 156.04 of the Revised 808
Code, may select one or more proposals or reject all proposals. In 809
selecting proposals, the director shall select the one or more 810
proposals most likely to result in the greatest savings when the 811
cost of the proposal is compared to the reduced energy and 812
operating costs that will result from implementing the proposal. 813
However, in the case of a state institution of higher education 814
pursuant to division (B) of section 156.02 of the Revised Code, 815
the director shall select the one or more proposals most likely to 816
result in the greatest energy, water, or wastewater savings, 817
operating costs savings, and avoided capital costs created.818

       (C)(1) No contract shall be awarded to implement energy or 819
water saving measures under this section, other than in the case 820
of a state institution of higher education, unless the director 821
finds that one or both of the following circumstances exists, as 822
applicable:823

       (a) In the case of a contract for a cogeneration system 824
described in division (H) of section 156.01 of the Revised Code, 825
the cost of the contract is not likely to exceed the amount of 826
money that would be saved in energy and operating costs over no 827
more than five years;828

       (b) In the case of any contract for any energy saving measure 829
other than a cogeneration system, the cost of the contract is not 830
likely to exceed the amount of money that would be saved in energy 831
and operating costs over no more than ten years.832

       (2) In the case of a state institution of higher education 833
pursuant to division (B) of section 156.02 of the Revised Code, no 834
contract shall be awarded to implement energy or water saving 835
measures for the institution under this section unless the 836
director finds that both of the following circumstances exists:837

       (a)(1) Not less than one-fifteenth of the costs of the 838
contract shall be paid within two years from the date of purchase;839

       (b) The(2) In the case of a contract for a cogeneration 840
system described in division (B)(8) of section 156.01 of the 841
Revised Code, the remaining balance of the cost of the contract 842
shall be paid within fifteentwenty years from the date of 843
purchase, and, in the case of all other contracts, fifteen years.844

       Sec. 156.04.  (A) In accordance with this section and section 845
156.03 of the Revised Code, the director of administrative 846
services may enter into an installment payment contract for the 847
implementation of one or more energy or water saving measures. If 848
the director wishes an installment payment contract to be exempted 849
from Chapter 153. of the Revised Code, the director shall proceed 850
pursuant to section 156.03 of the Revised Code.851

       (B)(1) Any installment payment contract under this section, 852
other than in the case of a state institution of higher education, 853
for one or more energy saving measures shall provide that all 854
payments, except payments for repairs and obligations on 855
termination of the contract prior to its expiration, are to be a 856
stated percentage of calculated savings of energy and operating 857
costs attributable to the one or more measures over a defined 858
period of time and are to be made only to the extent that those 859
savings actually occur. No such contract shall contain any of the 860
following:861

       (a) A requirement of any additional capital investment or 862
contribution of funds, other than funds available from state or 863
federal grants;864

       (b) In the case of a contract for an energy saving measure 865
that is a cogeneration system described in division (H) of section 866
156.01 of the Revised Code, a payment term longer than five years;867

       (c) In the case of a contract for any energy saving measure 868
that is not a cogeneration system, a payment term longer than ten 869
years.870

       (2) Any installment payment contract under this section for 871
one or more energy or water saving measures for a state 872
institution of higher education pursuant to division (B) of 873
section 156.02 of the Revised Code, shall provide that all 874
payments, except payments for repairs and obligations on 875
termination of the contract prior to its expiration, are to be a 876
stated percentage of calculated energy, water, or wastewater cost 877
savings, operating costs, and avoided capital costs attributable 878
to the one or more measures over a defined period of time and are 879
to be made only to the extent that those calculated amounts 880
actually occur. No such contract shall contain either of the 881
following:882

       (a)(1) A requirement of any additional capital investment or 883
contribution of funds, other than funds available from state or 884
federal grants;885

       (b) A(2) In the case of a contract for a cogeneration system 886
described in division (B)(8) of section 156.01 of the Revised 887
Code, a payment term longer than twenty years, and, in the case of 888
all other contracts, a payment term longer than fifteen years.889

       (C) Any installment payment contract entered into under this 890
section shall terminate no later than the last day of the fiscal 891
biennium for which funds have been appropriated to the department 892
of administrative services by the general assembly and shall be 893
renewed in each succeeding fiscal biennium in which any balance of 894
the contract remains unpaid, provided that both an appropriation 895
for that succeeding fiscal biennium and the certification required 896
by section 126.07 of the Revised Code are made.897

       (D) Any installment payment contract entered into under this 898
section shall be eligible for financing provided through the Ohio 899
air quality development authority under Chapter 3706. of the 900
Revised Code.901

       Sec. 303.213. (A) As used in this section, "small wind farm" 902
means wind turbines and associated facilities with a single 903
interconnection to the electrical grid and designed for, or 904
capable of, operation at an aggregate capacity of less than five 905
megawatts.906

       (B) Notwithstanding division (A) of section 303.211 of the 907
Revised Code, sections 303.01 to 303.25 of the Revised Code confer 908
power on a board of county commissioners or board of zoning 909
appeals to adopt zoning regulations governing the location, 910
erection, construction, reconstruction, change, alteration, 911
maintenance, removal, use, or enlargement of any small wind farm, 912
whether publicly or privately owned, or the use of land for that 913
purpose, which regulations may be more strict than the regulations 914
prescribed in rules adopted under division (C)(B)(2) of section 915
4906.20 of the Revised Code.916

       (C) The designation under this section of a small wind farm 917
as a public utility for purposes of sections 303.01 to 303.25 of 918
the Revised Code shall not affect the classification of a small 919
wind farm for purposes of state or local taxation.920

       (D) Nothing in division (C) of this section shall be 921
construed as affecting the classification of a telecommunications 922
tower as defined in division (B) or (E) of section 303.211 of the 923
Revised Code or any other public utility for purposes of state and 924
local taxation.925

       Sec. 1509.01.  As used in this chapter:926

       (A) "Well" means any borehole, whether drilled or bored, 927
within the state for production, extraction, or injection of any 928
gas or liquid mineral, excluding potable water to be used as such, 929
but including natural or artificial brines and oil field waters.930

       (B) "Oil" means crude petroleum oil and all other 931
hydrocarbons, regardless of gravity, that are produced in liquid 932
form by ordinary production methods, but does not include 933
hydrocarbons that were originally in a gaseous phase in the 934
reservoir.935

       (C) "Gas" means all natural gas and all other fluid 936
hydrocarbons that are not oil, including condensate.937

       (D) "Condensate" means liquid hydrocarbons that were 938
originally in the gaseous phase in the reservoirseparated at or 939
near the well pad or along the gas production or gathering system 940
prior to gas processing.941

       (E) "Pool" means an underground reservoir containing a common 942
accumulation of oil or gas, or both, but does not include a gas 943
storage reservoir. Each zone of a geological structure that is 944
completely separated from any other zone in the same structure may 945
contain a separate pool.946

       (F) "Field" means the general area underlaid by one or more 947
pools.948

       (G) "Drilling unit" means the minimum acreage on which one 949
well may be drilled, but does not apply to a well for injecting 950
gas into or removing gas from a gas storage reservoir.951

       (H) "Waste" includes all of the following:952

       (1) Physical waste, as that term generally is understood in 953
the oil and gas industry;954

       (2) Inefficient, excessive, or improper use, or the 955
unnecessary dissipation, of reservoir energy;956

       (3) Inefficient storing of oil or gas;957

       (4) Locating, drilling, equipping, operating, or producing an 958
oil or gas well in a manner that reduces or tends to reduce the 959
quantity of oil or gas ultimately recoverable under prudent and 960
proper operations from the pool into which it is drilled or that 961
causes or tends to cause unnecessary or excessive surface loss or 962
destruction of oil or gas;963

       (5) Other underground or surface waste in the production or 964
storage of oil, gas, or condensate, however caused.965

       (I) "Correlative rights" means the reasonable opportunity to 966
every person entitled thereto to recover and receive the oil and 967
gas in and under the person's tract or tracts, or the equivalent 968
thereof, without having to drill unnecessary wells or incur other 969
unnecessary expense.970

       (J) "Tract" means a single, individually taxed parcel of land 971
appearing on the tax list.972

       (K) "Owner," unless referring to a mine, means the person who 973
has the right to drill on a tract or drilling unit, to drill into 974
and produce from a pool, and to appropriate the oil or gas 975
produced therefrom either for the person or for others, except 976
that a person ceases to be an owner with respect to a well when 977
the well has been plugged in accordance with applicable rules 978
adopted and orders issued under this chapter. "Owner" does not 979
include a person who obtains a lease of the mineral rights for oil 980
and gas on a parcel of land if the person does not attempt to 981
produce or produce oil or gas from a well or obtain a permit under 982
this chapter for a well or if the entire interest of a well is 983
transferred to the person in accordance with division (B) of 984
section 1509.31 of the Revised Code.985

       (L) "Royalty interest" means the fee holder's share in the 986
production from a well.987

       (M) "Discovery well" means the first well capable of 988
producing oil or gas in commercial quantities from a pool.989

       (N) "Prepared clay" means a clay that is plastic and is 990
thoroughly saturated with fresh water to a weight and consistency 991
great enough to settle through saltwater in the well in which it 992
is to be used, except as otherwise approved by the chief of the 993
division of oil and gas resources management.994

       (O) "Rock sediment" means the combined cutting and residue 995
from drilling sedimentary rocks and formation.996

       (P) "Excavations and workings," "mine," and "pillar" have the 997
same meanings as in section 1561.01 of the Revised Code.998

       (Q) "Coal bearing township" means a township designated as 999
such by the chief of the division of mineral resources management 1000
under section 1561.06 of the Revised Code.1001

       (R) "Gas storage reservoir" means a continuous area of a 1002
subterranean porous sand or rock stratum or strata into which gas 1003
is or may be injected for the purpose of storing it therein and 1004
removing it therefrom and includes a gas storage reservoir as 1005
defined in section 1571.01 of the Revised Code.1006

       (S) "Safe Drinking Water Act" means the "Safe Drinking Water 1007
Act," 88 Stat. 1661 (1974), 42 U.S.C.A. 300(f), as amended by the 1008
"Safe Drinking Water Amendments of 1977," 91 Stat. 1393, 42 1009
U.S.C.A. 300(f), the "Safe Drinking Water Act Amendments of 1986," 1010
100 Stat. 642, 42 U.S.C.A. 300(f), and the "Safe Drinking Water 1011
Act Amendments of 1996," 110 Stat. 1613, 42 U.S.C.A. 300(f), and 1012
regulations adopted under those acts.1013

       (T) "Person" includes any political subdivision, department, 1014
agency, or instrumentality of this state; the United States and 1015
any department, agency, or instrumentality thereof; and any legal 1016
entity defined as a person under section 1.59 of the Revised Code.1017

       (U) "Brine" means all saline geological formation water 1018
resulting from, obtained from, or produced in connection with 1019
exploration, drilling, well stimulation, production of oil or gas, 1020
or plugging of a well.1021

       (V) "Waters of the state" means all streams, lakes, ponds, 1022
marshes, watercourses, waterways, springs, irrigation systems, 1023
drainage systems, and other bodies of water, surface or 1024
underground, natural or artificial, that are situated wholly or 1025
partially within this state or within its jurisdiction, except 1026
those private waters that do not combine or effect a junction with 1027
natural surface or underground waters.1028

       (W) "Exempt Mississippian well" means a well that meets all 1029
of the following criteria:1030

       (1) Was drilled and completed before January 1, 1980;1031

       (2) Is located in an unglaciated part of the state;1032

       (3) Was completed in a reservoir no deeper than the 1033
Mississippian Big Injun sandstone in areas underlain by 1034
Pennsylvanian or Permian stratigraphy, or the Mississippian Berea 1035
sandstone in areas directly underlain by Permian stratigraphy;1036

       (4) Is used primarily to provide oil or gas for domestic use.1037

       (X) "Exempt domestic well" means a well that meets all of the 1038
following criteria:1039

       (1) Is owned by the owner of the surface estate of the tract 1040
on which the well is located;1041

       (2) Is used primarily to provide gas for the owner's domestic 1042
use;1043

       (3) Is located more than two hundred feet horizontal distance 1044
from any inhabited private dwelling house other than an inhabited 1045
private dwelling house located on the tract on which the well is 1046
located;1047

       (4) Is located more than two hundred feet horizontal distance 1048
from any public building that may be used as a place of resort, 1049
assembly, education, entertainment, lodging, trade, manufacture, 1050
repair, storage, traffic, or occupancy by the public.1051

       (Y) "Urbanized area" means an area where a well or production 1052
facilities of a well are located within a municipal corporation or 1053
within a township that has an unincorporated population of more 1054
than five thousand in the most recent federal decennial census 1055
prior to the issuance of the permit for the well or production 1056
facilities.1057

       (Z) "Well stimulation" or "stimulation of a well" means the 1058
process of enhancing well productivity, including hydraulic 1059
fracturing operations.1060

       (AA) "Production operation" means all operations and 1061
activities and all related equipment, facilities, and other 1062
structures that may be used in or associated with the exploration 1063
and production of oil, gas, or other mineral resources that are 1064
regulated under this chapter, including operations and activities 1065
associated with site preparation, site construction, access road 1066
construction, well drilling, well completion, well stimulation, 1067
well site activities, reclamation, and plugging. "Production 1068
operation" also includes all of the following:1069

       (1) The piping, equipment, and facilities used for the 1070
production and preparation of hydrocarbon gas or liquids for 1071
transportation or delivery;1072

       (2) The processes of extraction and recovery, lifting, 1073
stabilization, treatment, separation, production processing, 1074
storage, waste disposal, and measurement of hydrocarbon gas and 1075
liquids, including related equipment and facilities;1076

       (3) The processes and related equipment and facilities 1077
associated with production compression, gas lift, gas injection, 1078
fuel gas supply, well drilling, well stimulation, and well 1079
completion activities, including dikes, pits, and earthen and 1080
other impoundments used for the temporary storage of fluids and 1081
waste substances associated with well drilling, well stimulation, 1082
and well completion activities.1083

       (BB) "Annular overpressurization" means the accumulation of 1084
fluids within an annulus with sufficient pressure to allow 1085
migration of annular fluids into underground sources of drinking 1086
water.1087

       (CC) "Idle and orphaned well" means a well for which a bond 1088
has been forfeited or an abandoned well for which no money is 1089
available to plug the well in accordance with this chapter and 1090
rules adopted under it.1091

       (DD) "Temporarily inactive well" means a well that has been 1092
granted temporary inactive status under section 1509.062 of the 1093
Revised Code.1094

       (EE) "Material and substantial violation" means any of the 1095
following:1096

       (1) Failure to obtain a permit to drill, reopen, convert, 1097
plugback, or plug a well under this chapter;1098

       (2) Failure to obtain or, maintain, update, or submit proof 1099
of insurance coverage that is required under this chapter;1100

       (3) Failure to obtain or, maintain, update, or submit proof 1101
of a surety bond that is required under this chapter;1102

       (4) Failure to plug an abandoned well or idle and orphaned 1103
well unless the well has been granted temporary inactive status 1104
under section 1509.062 of the Revised Code or the chief of the 1105
division of oil and gas resources management has approved another 1106
option concerning the abandoned well or idle and orphaned well;1107

       (5) Failure to restore a disturbed land surface as required 1108
by section 1509.072 of the Revised Code;1109

       (6) Failure to reimburse the oil and gas well fund pursuant 1110
to a final order issued under section 1509.071 of the Revised 1111
Code;1112

       (7) Failure to comply with a final nonappealable order of the 1113
chief issued under section 1509.04 of the Revised Code;1114

       (8) Failure to submit a report, test result, fee, or document 1115
that is required in this chapter or rules adopted under it.1116

       (FF) "Severer" has the same meaning as in section 5749.01 of 1117
the Revised Code.1118

       (GG) "Horizontal well" means a well that is drilled for the 1119
production of oil or gas in which the wellbore reaches a 1120
horizontal or near horizontal position in the Point Pleasant, 1121
Utica, or Marcellus formation and the well is stimulated.1122

       (HH) "Well pad" means the area that is cleared or prepared 1123
for the drilling of one or more horizontal wells.1124

       Sec. 1509.02.  There is hereby created in the department of 1125
natural resources the division of oil and gas resources 1126
management, which shall be administered by the chief of the 1127
division of oil and gas resources management. The division has 1128
sole and exclusive authority to regulate the permitting, location, 1129
and spacing of oil and gas wells and production operations within 1130
the state, excepting only those activities regulated under federal 1131
laws for which oversight has been delegated to the environmental 1132
protection agency and activities regulated under sections 6111.02 1133
to 6111.029 of the Revised Code. The regulation of oil and gas 1134
activities is a matter of general statewide interest that requires 1135
uniform statewide regulation, and this chapter and rules adopted 1136
under it constitute a comprehensive plan with respect to all 1137
aspects of the locating, drilling, well stimulation, completing, 1138
and operating of oil and gas wells within this state, including 1139
site construction and restoration, permitting related to those 1140
activities, and the disposal of wastes from those wells. In order 1141
to assist the division in the furtherance of its sole and 1142
exclusive authority as established in this section, the chief may 1143
enter into cooperative agreements with other state agencies for 1144
advice and consultation, including visitations at the surface 1145
location of a well on behalf of the division. Such cooperative 1146
agreements do not confer on other state agencies any authority to 1147
administer or enforce this chapter and rules adopted under it. In 1148
addition, such cooperative agreements shall not be construed to 1149
dilute or diminish the division's sole and exclusive authority as 1150
established in this section. Nothing in this section affects the 1151
authority granted to the director of transportation and local 1152
authorities in section 723.01 or 4513.34 of the Revised Code, 1153
provided that the authority granted under those sections shall not 1154
be exercised in a manner that discriminates against, unfairly 1155
impedes, or obstructs oil and gas activities and operations 1156
regulated under this chapter.1157

       The chief shall not hold any other public office, nor shall 1158
the chief be engaged in any occupation or business that might 1159
interfere with or be inconsistent with the duties as chief.1160

       All moneys collected by the chief pursuant to sections 1161
1509.06, 1509.061, 1509.062, 1509.071, 1509.13, 1509.22, 1509.221,1162
1509.222, 1509.28, 1509.34, and 1509.50 of the Revised Code, 1163
ninety per cent of moneys received by the treasurer of state from 1164
the tax levied in divisions (A)(5) and (6) of section 5749.02 of 1165
the Revised Code, all civil penalties paid under section 1509.33 1166
of the Revised Code, and, notwithstanding any section of the 1167
Revised Code relating to the distribution or crediting of fines 1168
for violations of the Revised Code, all fines imposed under 1169
divisions (A) and (B) of section 1509.99 of the Revised Code and 1170
fines imposed under divisions (C) and (D) of section 1509.99 of 1171
the Revised Code for all violations prosecuted by the attorney 1172
general and for violations prosecuted by prosecuting attorneys 1173
that do not involve the transportation of brine by vehicle shall 1174
be deposited into the state treasury to the credit of the oil and 1175
gas well fund, which is hereby created. Fines imposed under 1176
divisions (C) and (D) of section 1509.99 of the Revised Code for 1177
violations prosecuted by prosecuting attorneys that involve the 1178
transportation of brine by vehicle and penalties associated with a 1179
compliance agreement entered into pursuant to this chapter shall 1180
be paid to the county treasury of the county where the violation 1181
occurred.1182

       The fund shall be used solely and exclusively for the 1183
purposes enumerated in division (B) of section 1509.071 of the 1184
Revised Code, for the expenses of the division associated with the 1185
administration of this chapter and Chapter 1571. of the Revised 1186
Code and rules adopted under them, and for expenses that are 1187
critical and necessary for the protection of human health and 1188
safety and the environment related to oil and gas production in 1189
this state. The expenses of the division in excess of the moneys 1190
available in the fund shall be paid from general revenue fund 1191
appropriations to the department.1192

       Sec. 1509.03. (A) The chief of the division of oil and gas 1193
resources management shall adopt, rescind, and amend, in 1194
accordance with Chapter 119. of the Revised Code, rules for the 1195
administration, implementation, and enforcement of this chapter. 1196
The rules shall include an identification of the subjects that the 1197
chief shall address when attaching terms and conditions to a 1198
permit with respect to a well and production facilities of a well 1199
that are located within an urbanized area or with respect to a 1200
horizontal well and production facilities associated with a 1201
horizontal well. The subjects shall include all of the following:1202

       (1) Safety concerning the drilling or operation of a well;1203

        (2) Protection of the public and private water supply, 1204
including the amount of water used and the source or sources of 1205
the water;1206

       (3) Fencing and screening of surface facilities of a well;1207

       (4) Containment and disposal of drilling and production 1208
wastes;1209

       (5) Construction of access roads for purposes of the drilling 1210
and operation of a well;1211

       (6) Noise mitigation for purposes of the drilling of a well 1212
and the operation of a well, excluding safety and maintenance 1213
operations.1214

       No person shall violate any rule of the chief adopted under 1215
this chapter.1216

       (B)(1) Any order issuing, denying, or modifying a permit or 1217
notices required to be made by the chief pursuant to this chapter 1218
shall be made in compliance with Chapter 119. of the Revised Code, 1219
except that personal service may be used in lieu of service by 1220
mail. Every order issuing, denying, or modifying a permit under 1221
this chapter and described as such shall be considered an 1222
adjudication order for purposes of Chapter 119. of the Revised 1223
Code. Division (B)(1) of this section does not apply to a permit 1224
issued under section 1509.06 of the Revised Code.1225

       (2) Where notice to the owners is required by this chapter, 1226
the notice shall be given as prescribed by a rule adopted by the 1227
chief to govern the giving of notices. The rule shall provide for 1228
notice by publication except in those cases where other types of 1229
notice are necessary in order to meet the requirements of the law.1230

       (C) The chief or the chief's authorized representative may at 1231
any time enter upon lands, public or private, for the purpose of 1232
administration or enforcement of this chapter, the rules adopted 1233
or orders made thereunder, or terms or conditions of permits or 1234
registration certificates issued thereunder and may examine and 1235
copy records pertaining to the drilling, conversion, or operation 1236
of a well for injection of fluids and logs required by division 1237
(C) of section 1509.223 of the Revised Code. No person shall 1238
prevent or hinder the chief or the chief's authorized 1239
representative in the performance of official duties. If entry is 1240
prevented or hindered, the chief or the chief's authorized 1241
representative may apply for, and the court of common pleas may 1242
issue, an appropriate inspection warrant necessary to achieve the 1243
purposes of this chapter within the court's territorial 1244
jurisdiction.1245

       (D) The chief may issue orders to enforce this chapter, rules 1246
adopted thereunder, and terms or conditions of permits issued 1247
thereunder. Any such order shall be considered an adjudication 1248
order for the purposes of Chapter 119. of the Revised Code. No 1249
person shall violate any order of the chief issued under this 1250
chapter. No person shall violate a term or condition of a permit 1251
or registration certificate issued under this chapter.1252

       (E) Orders of the chief denying, suspending, or revoking a 1253
registration certificate; approving or denying approval of an 1254
application for revision of a registered transporter's plan for 1255
disposal; or to implement, administer, or enforce division (A) of 1256
section 1509.224 and sections 1509.22, 1509.222, 1509.223, 1257
1509.225, and 1509.226 of the Revised Code pertaining to the 1258
transportation of brine by vehicle and the disposal of brine so 1259
transported are not adjudication orders for purposes of Chapter 1260
119. of the Revised Code. The chief shall issue such orders under 1261
division (A) or (B) of section 1509.224 of the Revised Code, as 1262
appropriate.1263

       Sec. 1509.04. (A) The chief of the division of oil and gas 1264
resources management, or the chief's authorized representatives, 1265
shall enforce this chapter and the rules, terms and conditions of 1266
permits and registration certificates, and orders adopted or 1267
issued pursuant thereto, except that any peace officer, as defined 1268
in section 2935.01 of the Revised Code, may arrest for violations 1269
of this chapter involving transportation of brine by vehicle. The 1270
enforcement authority of the chief includes the authority to issue 1271
compliance notices and to enter into compliance agreements. 1272

       (B)(1) The chief or the chief's authorized representative may 1273
issue an administrative order to an owner for a violation of this 1274
chapter or rules adopted under it, terms and conditions of a 1275
permit issued under it, a registration certificate that is 1276
required under this chapter, or orders issued under this chapter.1277

       (2)(a) If an owner or other person who is required to submit 1278
a report, test result, fee, or document by this chapter or rules 1279
adopted under it submits a request for an extension of time to 1280
submit the report, test result, fee, or document to the chief 1281
prior to the date on which the report, test result, fee, or 1282
document is due, the chief may grant an extension of not more than 1283
sixty additional days from the original date on which the report, 1284
test result, fee, or document is due.1285

        (b) If an owner or other person who is required to submit a 1286
report, test result, fee, or document by this chapter or rules 1287
adopted under it fails to submit the report, test result, fee, or 1288
document before or on the date on which it is due and the chief 1289
has not granted an extension of time under division (B)(2)(a) of 1290
this section, the chief shall make reasonable attempts to notify 1291
the owner or other person of the failure to submit the report, 1292
test result, fee, or document. If an owner or other person who 1293
receives such a notification fails to submit the report, test 1294
result, fee, or document on or before thirty days after the date 1295
on which the chief so notified the owner or other person, the 1296
chief may issue an order under division (B)(2)(c) of this section.1297
The1298

       (c) The chief may issue an order finding that an owner has 1299
committed a material and substantial violation.1300

       (C) The chief, by order, immediately may suspend drilling, 1301
operating, or plugging activities that are related to a material 1302
and substantial violation and suspend and revoke an unused permit 1303
after finding either of the following:1304

       (1) An owner has failed to comply with an order issued under 1305
division (B)(2)(c) of this section that is final and 1306
nonappealable.1307

       (2) An owner is causing, engaging in, or maintaining a 1308
condition or activity that the chief determines presents an 1309
imminent danger to the health or safety of the public or that 1310
results in or is likely to result in immediate substantial damage 1311
to the natural resources of this state.1312

       (D)(1) The chief may issue an order under division (C) of 1313
this section without prior notification if reasonable attempts to 1314
notify the owner have failed or if the owner is currently in 1315
material breach of a prior order, but in such an event 1316
notification shall be given as soon thereafter as practical.1317

       (2) Not later than five days after the issuance of an order 1318
under division (C) of this section, the chief shall provide the 1319
owner an opportunity to be heard and to present evidence that one 1320
of the following applies:1321

       (a) The condition or activity does not present an imminent 1322
danger to the public health or safety or is not likely to result 1323
in immediate substantial damage to natural resources.1324

       (b) Required records, reports, or logs have been submitted.1325

       (3) If the chief, after considering evidence presented by the 1326
owner under division (D)(2)(a) of this section, determines that 1327
the activities do not present such a threat or that the required 1328
records, reports, or logs have been submitted under division 1329
(D)(2)(b) of this section, the chief shall revoke the order. The 1330
owner may appeal an order to the court of common pleas of the 1331
county in which the activity that is the subject of the order is 1332
located.1333

       (E) The chief may issue a bond forfeiture order pursuant to 1334
section 1509.071 of the Revised Code for failure to comply with a 1335
final nonappealable order issued or compliance agreement entered 1336
into under this section.1337

       (F) The chief may notify drilling contractors, transporters, 1338
service companies, or other similar entities of the compliance 1339
status of an owner.1340

       If the owner fails to comply with a prior enforcement action 1341
of the chief, the chief may issue a suspension order without prior 1342
notification, but in such an event the chief shall give notice as 1343
soon thereafter as practical. Not later than five calendar days 1344
after the issuance of an order, the chief shall provide the owner 1345
an opportunity to be heard and to present evidence that required 1346
records, reports, or logs have been submitted. If the chief, after 1347
considering the evidence presented by the owner, determines that 1348
the requirements have been satisfied, the chief shall revoke the 1349
suspension order. The owner may appeal a suspension order to the 1350
court of common pleas of the county in which the activity that is 1351
the subject of the suspension order is located.1352

       (G) The prosecuting attorney of the county or the attorney 1353
general, upon the request of the chief, may apply to the court of 1354
common pleas in the county in which any of the provisions of this 1355
chapter or any rules, terms or conditions of a permit or 1356
registration certificate, or orders adopted or issued pursuant to 1357
this chapter are being violated for a temporary restraining order, 1358
preliminary injunction, or permanent injunction restraining any 1359
person from such violation.1360

       Sec. 1509.06. (A) An application for a permit to drill a new 1361
well, drill an existing well deeper, reopen a well, convert a well 1362
to any use other than its original purpose, or plug back a well to 1363
a different source of supply, including associated production 1364
operations, shall be filed with the chief of the division of oil 1365
and gas resources management upon such form as the chief 1366
prescribes and shall contain each of the following that is 1367
applicable:1368

       (1) The name and address of the owner and, if a corporation, 1369
the name and address of the statutory agent;1370

       (2) The signature of the owner or the owner's authorized 1371
agent. When an authorized agent signs an application, it shall be 1372
accompanied by a certified copy of the appointment as such agent.1373

       (3) The names and addresses of all persons holding the 1374
royalty interest in the tract upon which the well is located or is 1375
to be drilled or within a proposed drilling unit;1376

       (4) The location of the tract or drilling unit on which the 1377
well is located or is to be drilled identified by section or lot 1378
number, city, village, township, and county;1379

       (5) Designation of the well by name and number;1380

       (6)(a) The geological formation to be tested or used and the 1381
proposed total depth of the well;1382

       (b) If the well is for the injection of a liquid, identity of 1383
the geological formation to be used as the injection zone and the 1384
composition of the liquid to be injected.1385

       (7) The type of drilling equipment to be used;1386

       (8) If the well is for the injection of a liquid, identity of 1387
the geological formation to be used as the injection zone and the 1388
composition of the liquid to be injected;1389

       (a) An identification, to the best of the owner's knowledge, 1390
of each proposed source of ground water and surface water that 1391
will be used in the production operations of the well. The 1392
identification of each proposed source of water shall indicate if 1393
the water will be withdrawn from the Lake Erie watershed or the 1394
Ohio river watershed. In addition, the owner shall provide, to the 1395
best of the owner's knowledge, the proposed estimated rate and 1396
volume of the water withdrawal for the production operations. If 1397
recycled water will be used in the production operations, the 1398
owner shall provide the estimated volume of recycled water to be 1399
used. The owner shall submit to the chief an update of any of the 1400
information that is required by division (A)(8)(a) of this section 1401
if any of that information changes before the chief issues a 1402
permit for the application.1403

       (b) Except as provided in division (A)(8)(c) of this section, 1404
for an application for a permit to drill a new well within an 1405
urbanized area, the results of sampling of water wells within 1406
three hundred feet of the proposed well prior to commencement of 1407
drilling. In addition, the owner shall include a list that 1408
identifies the location of each water well where the owner of the 1409
property on which the water well is located denied the owner 1410
access to sample the water well. The sampling shall be conducted 1411
in accordance with the guidelines established in "Best Management 1412
Practices For Pre-drilling Water Sampling" in effect at the time 1413
that the application is submitted. The division shall furnish 1414
those guidelines upon request and shall make them available on the 1415
division's web site. If the chief determines that conditions at 1416
the proposed well site warrant a revision, the chief may revise 1417
the distance established in this division for purposes of 1418
pre-drilling water sampling.1419

       (c) For an application for a permit to drill a new horizontal 1420
well, the results of sampling of water wells within one thousand 1421
five hundred feet of the proposed horizontal well prior to 1422
commencement of drilling. In addition, the owner shall include a 1423
list that identifies the location of each water well where the 1424
owner of the property on which the water well is located denied 1425
the owner access to sample the water well. The sampling shall be 1426
conducted in accordance with the guidelines established in "Best 1427
Management Practices For Pre-drilling Water Sampling" in effect at 1428
the time that the application is submitted. The division shall 1429
furnish those guidelines upon request and shall make them 1430
available on the division's web site. If the chief determines that 1431
conditions at the proposed well site warrant a revision, the chief 1432
may revise the distance established in this division for purposes 1433
of pre-drilling water sampling.1434

       (9) For an application for a permit to drill a new well 1435
within an urbanized area, a sworn statement that the applicant has 1436
provided notice by regular mail of the application to the owner of 1437
each parcel of real property that is located within five hundred 1438
feet of the surface location of the well and to the executive 1439
authority of the municipal corporation or the board of township 1440
trustees of the township, as applicable, in which the well is to 1441
be located. In addition, the notice shall contain a statement that 1442
informs an owner of real property who is required to receive the 1443
notice under division (A)(9) of this section that within five days 1444
of receipt of the notice, the owner is required to provide notice 1445
under section 1509.60 of the Revised Code to each residence in an 1446
occupied dwelling that is located on the owner's parcel of real 1447
property. The notice shall contain a statement that an application 1448
has been filed with the division of oil and gas resources 1449
management, identify the name of the applicant and the proposed 1450
well location, include the name and address of the division, and 1451
contain a statement that comments regarding the application may be 1452
sent to the division. The notice may be provided by hand delivery 1453
or regular mail. The identity of the owners of parcels of real 1454
property shall be determined using the tax records of the 1455
municipal corporation or county in which a parcel of real property 1456
is located as of the date of the notice.1457

       (10) A plan for restoration of the land surface disturbed by 1458
drilling operations. The plan shall provide for compliance with 1459
the restoration requirements of division (A) of section 1509.072 1460
of the Revised Code and any rules adopted by the chief pertaining 1461
to that restoration.1462

       (11)(a) A description by name or number of the county, 1463
township, and municipal corporation roads, streets, and highways 1464
that the applicant anticipates will be used for access to and 1465
egress from the well site;1466

       (b) For an application for a permit for a horizontal well, a 1467
copy of an agreement concerning maintenance and safe use of the 1468
roads, streets, and highways described in division (A)(11)(a) of 1469
this section entered into on reasonable terms with the public 1470
official that has the legal authority to enter into such 1471
maintenance and use agreements for each county, township, and 1472
municipal corporation, as applicable, in which any such road, 1473
street, or highway is located or an affidavit on a form prescribed 1474
by the chief attesting that the owner attempted in good faith to 1475
enter into an agreement under division (A)(11)(b) of this section 1476
with the applicable public official of each such county, township, 1477
or municipal corporation, but that no agreement was executed.1478

       (12) Such other relevant information as the chief prescribes 1479
by rule.1480

       Each application shall be accompanied by a map, on a scale 1481
not smaller than four hundred feet to the inch, prepared by an 1482
Ohio registered surveyor, showing the location of the well and 1483
containing such other data as may be prescribed by the chief. If 1484
the well is or is to be located within the excavations and 1485
workings of a mine, the map also shall include the location of the 1486
mine, the name of the mine, and the name of the person operating 1487
the mine.1488

       (B) The chief shall cause a copy of the weekly circular 1489
prepared by the division to be provided to the county engineer of 1490
each county that contains active or proposed drilling activity. 1491
The weekly circular shall contain, in the manner prescribed by the 1492
chief, the names of all applicants for permits, the location of 1493
each well or proposed well, the information required by division 1494
(A)(11) of this section, and any additional information the chief 1495
prescribes. In addition, the chief promptly shall transfer an 1496
electronic copy or facsimile, or if those methods are not 1497
available to a municipal corporation or township, a copy via 1498
regular mail, of a drilling permit application to the clerk of the 1499
legislative authority of the municipal corporation or to the clerk 1500
of the township in which the well or proposed well is or is to be 1501
located if the legislative authority of the municipal corporation 1502
or the board of township trustees has asked to receive copies of 1503
such applications and the appropriate clerk has provided the chief 1504
an accurate, current electronic mailing address or facsimile 1505
number, as applicable.1506

       (C)(1) Except as provided in division (C)(2) of this section, 1507
the chief shall not issue a permit for at least ten days after the 1508
date of filing of the application for the permit unless, upon 1509
reasonable cause shown, the chief waives that period or a request 1510
for expedited review is filed under this section. However, the 1511
chief shall issue a permit within twenty-one days of the filing of 1512
the application unless the chief denies the application by order.1513

       (2) If the location of a well or proposed well will be or is 1514
within an urbanized area, the chief shall not issue a permit for 1515
at least eighteen days after the date of filing of the application 1516
for the permit unless, upon reasonable cause shown, the chief 1517
waives that period or the chief at the chief's discretion grants a 1518
request for an expedited review. However, the chief shall issue a 1519
permit for a well or proposed well within an urbanized area within 1520
thirty days of the filing of the application unless the chief 1521
denies the application by order.1522

       (D) An applicant may file a request with the chief for 1523
expedited review of a permit application if the well is not or is 1524
not to be located in a gas storage reservoir or reservoir 1525
protective area, as "reservoir protective area" is defined in 1526
section 1571.01 of the Revised Code. If the well is or is to be 1527
located in a coal bearing township, the application shall be 1528
accompanied by the affidavit of the landowner prescribed in 1529
section 1509.08 of the Revised Code.1530

       In addition to a complete application for a permit that meets 1531
the requirements of this section and the permit fee prescribed by 1532
this section, a request for expedited review shall be accompanied 1533
by a separate nonrefundable filing fee of two hundred fifty 1534
dollars. Upon the filing of a request for expedited review, the 1535
chief shall cause the county engineer of the county in which the 1536
well is or is to be located to be notified of the filing of the 1537
permit application and the request for expedited review by 1538
telephone or other means that in the judgment of the chief will 1539
provide timely notice of the application and request. The chief 1540
shall issue a permit within seven days of the filing of the 1541
request unless the chief denies the application by order. 1542
Notwithstanding the provisions of this section governing expedited 1543
review of permit applications, the chief may refuse to accept 1544
requests for expedited review if, in the chief's judgment, the 1545
acceptance of the requests would prevent the issuance, within 1546
twenty-one days of their filing, of permits for which applications 1547
are pending.1548

       (E) A well shall be drilled and operated in accordance with 1549
the plans, sworn statements, and other information submitted in 1550
the approved application.1551

       (F) The chief shall issue an order denying a permit if the 1552
chief finds that there is a substantial risk that the operation 1553
will result in violations of this chapter or rules adopted under 1554
it that will present an imminent danger to public health or safety 1555
or damage to the environment, provided that where the chief finds 1556
that terms or conditions to the permit can reasonably be expected 1557
to prevent such violations, the chief shall issue the permit 1558
subject to those terms or conditions, including, if applicable, 1559
terms and conditions regarding subjects identified in rules 1560
adopted under section 1509.03 of the Revised Code. The issuance of 1561
a permit shall not be considered an order of the chief.1562

       (G) Each application for a permit required by section 1509.05 1563
of the Revised Code, except an application to plug back an 1564
existing well that is required by that section and an application 1565
for a well drilled or reopened for purposes of section 1509.22 of 1566
the Revised Code, also shall be accompanied by a nonrefundable fee 1567
as follows:1568

       (1) Five hundred dollars for a permit to conduct activities 1569
in a township with a population of fewer than ten thousand;1570

       (2) Seven hundred fifty dollars for a permit to conduct 1571
activities in a township with a population of ten thousand or 1572
more, but fewer than fifteen thousand;1573

       (3) One thousand dollars for a permit to conduct activities 1574
in either of the following:1575

       (a) A township with a population of fifteen thousand or more;1576

       (b) A municipal corporation regardless of population.1577

       (4) If the application is for a permit that requires 1578
mandatory pooling, an additional five thousand dollars.1579

       For purposes of calculating fee amounts, populations shall be 1580
determined using the most recent federal decennial census.1581

       Each application for the revision or reissuance of a permit 1582
shall be accompanied by a nonrefundable fee of two hundred fifty 1583
dollars.1584

       (H)(1) Prior to the commencement of well pad construction and 1585
prior to the issuance of a permit to drill a proposed horizontal 1586
well or a proposed well that is to be located in an urbanized 1587
area, the division shall conduct a site review to identify and 1588
evaluate any site-specific terms and conditions that may be 1589
attached to the permit. At the site review, a representative of 1590
the division shall consider fencing, screening, and landscaping 1591
requirements, if any, for similar structures in the community in 1592
which the well is proposed to be located. The terms and conditions 1593
that are attached to the permit shall include the establishment of 1594
fencing, screening, and landscaping requirements for the surface 1595
facilities of the proposed well, including a tank battery of the 1596
well.1597

       (2) Prior to the issuance of a permit to drill a proposed 1598
well, the division shall conduct a review to identify and evaluate 1599
any site-specific terms and conditions that may be attached to the 1600
permit if the proposed well will be located in a one-hundred-year 1601
floodplain or within the five-year time of travel associated with 1602
a public drinking water supply.1603

       (I) A permit shall be issued by the chief in accordance with 1604
this chapter. A permit issued under this section for a well that 1605
is or is to be located in an urbanized area shall be valid for 1606
twelve months, and all other permits issued under this section 1607
shall be valid for twenty-four months.1608

       (J) An applicant or a permittee, as applicable, shall submit 1609
to the chief an update of the information that is required under 1610
division (A)(8)(a) of this section if any of that information 1611
changes prior to commencement of production operations.1612

       (K) A permittee or a permittee's authorized representative 1613
shall notify an inspector from the division at least twenty-four 1614
hours, or another time period agreed to by the chief's authorized 1615
representative, prior to the commencement of well pad construction 1616
and of drilling, reopening, converting, well stimulation, or 1617
plugback operations.1618

       Sec. 1509.07. An(A)(1) Except as provided in division 1619
(A)(2) of this section, an owner of any well, except an exempt 1620
Mississippian well or an exempt domestic well, shall obtain 1621
liability insurance coverage from a company authorized to do 1622
business in this state in an amount of not less than one million 1623
dollars bodily injury coverage and property damage coverage to pay 1624
damages for injury to persons or damage to property caused by the 1625
drilling, operation, or plugging of all the owner's wells in this 1626
state. However, if any well is located within an urbanized area, 1627
the owner shall obtain liability insurance coverage in an amount 1628
of not less than three million dollars for bodily injury coverage 1629
and property damage coverage to pay damages for injury to persons 1630
or damage to property caused by the drilling, operation, or 1631
plugging of all of the owner's wells in this state. The1632

       (2) An owner of a horizontal well shall obtain liability 1633
insurance coverage from an insurer authorized to write such 1634
insurance in this state or from an insurer approved to write such 1635
insurance in this state under section 3905.33 of the Revised Code 1636
in an amount of not less than five million dollars bodily injury 1637
coverage and property damage coverage to pay damages for injury to 1638
persons or damage to property caused by the production operations 1639
of all the owner's wells in this state. The insurance policy shall 1640
include a reasonable level of coverage available for an 1641
environmental endorsement.1642

       (3) An owner shall maintain the coverage required under 1643
division (A)(1) or (2) of this section until all the owner's wells 1644
are plugged and abandoned or are transferred to an owner who has 1645
obtained insurance as required under this section and who is not 1646
under a notice of material and substantial violation or under a 1647
suspension order. The owner shall provide proof of liability 1648
insurance coverage to the chief of the division of oil and gas 1649
resources management upon request. Upon failure of the owner to 1650
provide that proof when requested, the chief may order the 1651
suspension of any outstanding permits and operations of the owner 1652
until the owner provides proof of the required insurance coverage.1653

       (B)(1) Except as otherwise provided in this section, an owner 1654
of any well, before being issued a permit under section 1509.06 of 1655
the Revised Code or before operating or producing from a well, 1656
shall execute and file with the division of oil and gas resources 1657
management a surety bond conditioned on compliance with the 1658
restoration requirements of section 1509.072, the plugging 1659
requirements of section 1509.12, the permit provisions of section 1660
1509.13 of the Revised Code, and all rules and orders of the chief 1661
relating thereto, in an amount set by rule of the chief.1662

       (2) The owner may deposit with the chief, instead of a surety 1663
bond, cash in an amount equal to the surety bond as prescribed 1664
pursuant to this section or negotiable certificates of deposit or 1665
irrevocable letters of credit, issued by any bank organized or 1666
transacting business in this state or by any savings and loan 1667
association as defined in section 1151.01 of the Revised Code, 1668
having a cash value equal to or greater than the amount of the 1669
surety bond as prescribed pursuant to this section. Cash or 1670
certificates of deposit shall be deposited upon the same terms as 1671
those upon which surety bonds may be deposited. If certificates of 1672
deposit are deposited with the chief instead of a surety bond, the 1673
chief shall require the bank or savings and loan association that 1674
issued any such certificate to pledge securities of a cash value 1675
equal to the amount of the certificate that is in excess of the 1676
amount insured by any of the agencies and instrumentalities 1677
created under the "Federal Deposit Insurance Act," 64 Stat. 873 1678
(1950), 12 U.S.C. 1811, as amended, and regulations adopted under 1679
it, including at least the federal deposit insurance corporation, 1680
bank insurance fund, and savings association insurance fund. The 1681
securities shall be security for the repayment of the certificate 1682
of deposit.1683

       Immediately upon a deposit of cash, certificates of deposit, 1684
or letters of credit with the chief, the chief shall deliver them 1685
to the treasurer of state who shall hold them in trust for the 1686
purposes for which they have been deposited.1687

       (3) Instead of a surety bond, the chief may accept proof of 1688
financial responsibility consisting of a sworn financial statement 1689
showing a net financial worth within this state equal to twice the 1690
amount of the bond for which it substitutes and, as may be 1691
required by the chief, a list of producing properties of the owner 1692
within this state or other evidence showing ability and intent to 1693
comply with the law and rules concerning restoration and plugging 1694
that may be required by rule of the chief. The owner of an exempt 1695
Mississippian well is not required to file scheduled updates of 1696
the financial documents, but shall file updates of those documents 1697
if requested to do so by the chief. The owner of a nonexempt 1698
Mississippian well shall file updates of the financial documents 1699
in accordance with a schedule established by rule of the chief. 1700
The chief, upon determining that an owner for whom the chief has 1701
accepted proof of financial responsibility instead of bond cannot 1702
demonstrate financial responsibility, shall order that the owner 1703
execute and file a bond or deposit cash, certificates of deposit, 1704
or irrevocable letters of credit as required by this section for 1705
the wells specified in the order within ten days of receipt of the 1706
order. If the order is not complied with, all wells of the owner 1707
that are specified in the order and for which no bond is filed or 1708
cash, certificates of deposit, or letters of credit are deposited 1709
shall be plugged. No owner shall fail or refuse to plug such a 1710
well. Each day on which such a well remains unplugged thereafter 1711
constitutes a separate offense.1712

       (4) The surety bond provided for in this section shall be 1713
executed by a surety company authorized to do business in this 1714
state.1715

       The chief shall not approve any bond until it is personally 1716
signed and acknowledged by both principal and surety, or as to 1717
either by the principal's or surety's attorney in fact, with a 1718
certified copy of the power of attorney attached thereto. The 1719
chief shall not approve a bond unless there is attached a 1720
certificate of the superintendent of insurance that the company is 1721
authorized to transact a fidelity and surety business in this 1722
state.1723

       All bonds shall be given in a form to be prescribed by the 1724
chief and shall run to the state as obligee.1725

       (5) An owner of an exempt Mississippian well or an exempt 1726
domestic well, in lieu of filing a surety bond, cash in an amount 1727
equal to the surety bond, certificates of deposit, irrevocable 1728
letters of credit, or a sworn financial statement, may file a 1729
one-time fee of fifty dollars, which shall be deposited in the oil 1730
and gas well plugging fund created in section 1509.071 of the 1731
Revised Code.1732

       (C) An owner, operator, producer, or other person shall not 1733
operate a well or produce from a well at any time if the owner, 1734
operator, producer, or other person has not satisfied the 1735
requirements established in this section.1736

       Sec. 1509.10.  (A) Any person drilling within the state 1737
shall, within sixty days after the completion of drilling 1738
operations to the proposed total depth or after a determination 1739
that a well is a dry or lost hole, file with the division of oil 1740
and gas resources management all wireline electric logs and an 1741
accurate well completion record on a form that is approved1742
prescribed by the chief of the division of oil and gas resources 1743
management that designates:1744

       (1) The purpose for which the well was drilled;1745

       (2) The character, depth, and thickness of geological units 1746
encountered, including coal seams, mineral beds, associated fluids 1747
such as fresh water, brine, and crude oil, natural gas, and sour 1748
gas, if such seams, beds, fluids, or gases are known;1749

       (3) The dates on which drilling operations were commenced and 1750
completed;1751

       (4) The types of drilling tools used and the name of the 1752
person that drilled the well;1753

       (5) The length in feet of the various sizes of casing and 1754
tubing used in drilling the well, the amount removed after 1755
completion, the type and setting depth of each packer, all other 1756
data relating to cementing in the annular space behind such casing 1757
or tubing, and data indicating completion as a dry, gas, oil, 1758
combination oil and gas, brine injection, or artificial brine well 1759
or a stratigraphic test;1760

       (6) The number of perforations in the casing and the 1761
intervals of the perforations;1762

       (7) The elevation above mean sea level of the point from 1763
which the depth measurements were made, stating also the height of 1764
the point above ground level at the well, the total depth of the 1765
well, and the deepest geological unit that was penetrated in the 1766
drilling of the well;1767

       (8) If applicable, the type, volume, and concentration of 1768
acid, and the date on which acid was used in acidizing the well;1769

       (9)(a) If applicable, the trade name and the total amount of 1770
all products, fluids, and substances, and the supplier of each 1771
product, fluid, or substance, not including cement and its 1772
constituents and lost circulation materials, intentionally added 1773
to facilitate the drilling of any portion of the well until the 1774
surface casing is set and properly sealed. The owner shall 1775
identify each additive used and provide a brief description of the 1776
purpose for which the additive is used. In addition, the owner 1777
shall include a list of all chemicals intentionally added to all 1778
products, fluids, or substances and include each chemical's 1779
corresponding chemical abstracts service number and the maximum 1780
concentration of each chemical. The owner shall obtain the 1781
chemical information from the company that drilled the well, 1782
provided service at the well, or supplied the chemicals. If the 1783
company that drilled the well, provided service at the well, or 1784
supplied the chemicals provides incomplete or inaccurate chemical 1785
information, the owner shall make reasonable efforts to obtain the 1786
required information from the company or supplier.1787

       (b) For purposes of division (A)(9)(a) of this section, if 1788
recycled fluid was used, the total volume of recycled fluid and 1789
the well that is the source of the recycled fluid or the 1790
centralized facility that is the source of the recycled fluid.1791

       (10)(a) If applicable, the type and volume of fluid, not 1792
including cement and its constituents, used to stimulate the 1793
reservoir of the well, the reservoir breakdown pressure, the 1794
method used for the containment of fluids recovered from the 1795
fracturing of the well, the methods used for the containment of 1796
fluids when pulled from the wellbore from swabbing the well, the 1797
average pumping rate of the well, and the name of the person that 1798
performed the well stimulation. In addition, the owner shall 1799
include a copy of the log from the stimulation of the well, a copy 1800
of the invoice for each of the procedures and methods described in 1801
division (A)(9)(10) of this section that were used on a well, and 1802
a copy of the pumping pressure and rate graphs. However, the owner 1803
may redact from the copy of each invoice that is required to be 1804
included under division (A)(9)(10) of this section the costs of 1805
and charges for the procedures and methods described in division 1806
(A)(9)(10) of this section that were used on a well.1807

       (10)(b) If applicable, the trade name and the total volume of 1808
all products, fluids, and substances, and the supplier of each 1809
product, fluid, or substance used to stimulate the well. The owner 1810
shall identify each additive used, provide a brief description of 1811
the purpose for which the additive is used, and include the 1812
maximum concentration of the additive used. In addition, the owner 1813
shall include a list of all chemicals intentionally added to all 1814
products, fluids, or substances and include each chemical's 1815
corresponding chemical abstracts service number and the maximum 1816
concentration of each chemical. The owner shall obtain the 1817
chemical information from the company that stimulated the well or 1818
supplied the chemicals. If the company that stimulated the well or 1819
supplied the chemicals provides incomplete or inaccurate chemical 1820
information, the owner shall make reasonable efforts to obtain the 1821
required information from the company or supplier.1822

       (c) For purposes of division (A)(10)(b) of this section, if 1823
recycled fluid was used, the total volume of recycled fluid and 1824
the well that is the source of the recycled fluid or the 1825
centralized facility that is the source of the recycled fluid.1826

       (11) The name of the company that performed the logging of 1827
the well and the types of wireline electric logs performed on the 1828
well.1829

       The well completion record shall be submitted in duplicate. 1830
The first copy shall be retained as a permanent record in the 1831
files of the division, and the second copy shall be transmitted by 1832
the chief to the division of geological survey.1833

        (B)(1) Not later than sixty days after the completion of the 1834
drilling operations to the proposed total depth, the owner shall 1835
file all wireline electric logs with the division of oil and gas 1836
resources management and the chief shall transmit such logs 1837
electronically, if available, to the division of geological 1838
survey. Such logs may be retained by the owner for a period of not 1839
more than six months, or such additional time as may be granted by 1840
the chief in writing, after the completion of the well 1841
substantially to the depth shown in the application required by 1842
section 1509.06 of the Revised Code.1843

       (2) If a well is not completed within sixty days after the 1844
completion of drilling operations, the owner shall file with the 1845
division of oil and gas resources management a supplemental well 1846
completion record that includes all of the information required 1847
under this section within sixty days after the completion of the 1848
well.1849

       (3) After a well is initially completed and stimulated and 1850
until the well is plugged, the owner shall report, on a form 1851
prescribed by the chief, all materials placed into the formation 1852
to rework, refracture, restimulate, or newly complete the well. 1853
The owner shall submit the information within sixty days after 1854
completing the reworking, refracturing, restimulation, or new 1855
completion. In addition, the owner shall report the information 1856
required in divisions (A)(10)(a) to (c) of this section, as 1857
applicable, in a manner consistent with the requirements 1858
established in this section.1859

       (C) Upon request in writing by the chief of the division of 1860
geological survey prior to the beginning of drilling of the well, 1861
the person drilling the well shall make available a complete set 1862
of cuttings accurately identified as to depth.1863

       (D) The form of the well completion record required by this 1864
section shall be one that has been approvedprescribed by the 1865
chief of the division of oil and gas resources management and the 1866
chief of the division of geological survey. The filing of a log as 1867
required by this section fulfills the requirement of filing a log 1868
with the chief of the division of geological survey in section 1869
1505.04 of the Revised Code.1870

       (E) If there is a material listed on the invoice that is 1871
required by division (A)(9) of this sectionor designated under 1872
division (A)(9) or (10) or (B)(3) of this section is a material1873
for which the division of oil and gas resources management does 1874
not have a material safety data sheet, the chiefowner shall 1875
obtainprovide a copy of the material safety data sheet for the 1876
material and post a copy of the material safety data sheet on the 1877
division's web siteto the chief.1878

       (F) An owner shall submit to the chief the information that 1879
is required in divisions (A)(10)(b) and (c) and (B)(3) of this 1880
section consistent with the requirements established in this 1881
section using one of the following methods:1882

       (1) On a form prescribed by the chief;1883

       (2) Through the chemical disclosure registry that is 1884
maintained by the ground water protection council and the 1885
interstate oil and gas compact commission;1886

       (3) Any other means approved by the chief.1887

       (G) The chief shall post on the division's web site each 1888
material safety data sheet obtained under division (E) of this 1889
section. In addition, the chief shall make available through the 1890
division's web site the chemical information that is required by 1891
divisions (A)(9) and (10) and (B)(3) of this section.1892

       (H)(1) If a medical professional, in order to assist in the 1893
diagnosis or treatment of an individual who was affected by an 1894
incident associated with the production operations of a well, 1895
requests the exact chemical composition of each product, fluid, or 1896
substance and of each chemical component in a product, fluid, or 1897
substance that is designated as a trade secret pursuant to 1898
division (I) of this section, the person claiming the trade secret 1899
protection pursuant to that division shall provide to the medical 1900
professional the exact chemical composition of the product, fluid, 1901
or substance and of the chemical component in a product, fluid, or 1902
substance that is requested.1903

       (2) A medical professional who receives information pursuant 1904
to division (H)(1) of this section shall keep the information 1905
confidential and shall not disclose the information for any 1906
purpose that is not related to the diagnosis or treatment of an 1907
individual who was affected by an incident associated with the 1908
production operations of a well.1909

       (I) The owner of a well who is required to submit a well 1910
completion record under division (A) of this section or a report 1911
under division (B)(3) of this section or a person that provides 1912
information to the owner as described in and for purposes of 1913
division (A)(9) or (10) or (B)(3) of this section may designate 1914
and withhold from disclosure, on a form prescribed by the chief, a 1915
product, fluid, or substance or a chemical component in a product, 1916
fluid, or substance as a trade secret. The owner or person may 1917
pursue enforcement of any rights or remedies established in 1918
sections 1333.61 to 1333.69 of the Revised Code for 1919
misappropriation, as defined in section 1333.61 of the Revised 1920
Code, with respect to a product, fluid, or substance or a chemical 1921
component in a product, fluid, or substance designated as a trade 1922
secret pursuant to this division. The division shall not disclose 1923
information regarding any product, fluid, or substance or chemical 1924
component in a product, fluid, or substance designated as a trade 1925
secret pursuant to this division.1926

       (J) The owner of a well shall maintain records of all 1927
chemicals placed in a well for a period of not less than two years 1928
after the date on which each such chemical was placed in the well. 1929
The chief may inspect the records at any time concerning any such 1930
chemical, including records concerning any chemical that is 1931
designated as a trade secret. However, the chief shall not 1932
disclose the identity of any chemical that is designated as a 1933
trade secret.1934

       (K)(1) For purposes of correcting inaccuracies and 1935
incompleteness in chemical information required by divisions 1936
(A)(9) and (10) and (B)(3) of this section, an owner shall be 1937
considered in substantial compliance if the owner has made 1938
reasonable efforts to obtain the required information from the 1939
supplier.1940

       (2) For purposes of reporting under this section, an owner is 1941
not required to report chemicals that occur incidentally or in 1942
trace amounts.1943

       Sec. 1509.11. (A) The owner of any well, including a 1944
horizontal well, producing or capable of producing oil or gas 1945
shall file with the chief of the division of oil and gas resources 1946
management, on or before the thirty-first day of March, a 1947
statement of production of oil, gas, and brine for the last 1948
preceding calendar year in such form as the chief may prescribe. 1949
An owner that has more than one hundred such wells in this state 1950
shall submit electronically the statement of production in a 1951
format that is approved by the chief. The chief shall include on 1952
the form, at the minimum, a request for the submittal of the 1953
information that a person who is regulated under this chapter is 1954
required to submit under the "Emergency Planning and Community 1955
Right-To-Know Act of 1986," 100 Stat. 1728, 42 U.S.C.A. 11001, and 1956
regulations adopted under it, and that the division does not 1957
obtain through other reporting mechanisms.1958

       (B) The chief shall not disclose information received from 1959
the department of taxation under division (C)(12) of section 1960
5703.21 of the Revised Code until the related statement of 1961
production required by division (A) of this section is filed with 1962
the chief.1963

       Sec. 1509.22.  (A) Except when acting in accordance with 1964
section 1509.226 of the Revised Code, no person shall place or 1965
cause to be placed brine, crude oil, natural gas, or other fluids 1966
associated with the exploration or development of oil and gas 1967
resources in surface or ground water or in or on the land in such 1968
quantities or in such manner as actually causes or could 1969
reasonably be anticipated to cause either of the following:1970

       (1) Water used for consumption by humans or domestic animals 1971
to exceed the standards of the Safe Drinking Water Act;1972

       (2) Damage or injury to public health or safety or the 1973
environment.1974

       (B) No person shall store or dispose of brine in violation of 1975
a plan approved under division (A) of section 1509.222 or section 1976
1509.226 of the Revised Code, in violation of a resolution 1977
submitted under section 1509.226 of the Revised Code, or in 1978
violation of rules or orders applicable to those plans or 1979
resolutions.1980

       (C) The chief of the division of oil and gas resources 1981
management shall adopt rules and issue orders regarding storage 1982
and disposal of brine and other waste substances; however, the 1983
storage and disposal of brine and other waste substances and the 1984
chief's rules relating to storage and disposal are subject to all 1985
of the following standards:1986

       (1) Brine from any well except an exempt Mississippian well 1987
shall be disposed of only by injection into an underground 1988
formation, including annular disposal if approved by rule of the 1989
chief, which injection shall be subject to division (D) of this 1990
section; by surface application in accordance with section 1991
1509.226 of the Revised Code; in association with a method of 1992
enhanced recovery as provided in section 1509.21 of the Revised 1993
Code; or by other methods approved by the chief for testing or 1994
implementing a new technology or method of disposal. Brine from 1995
exempt Mississippian wells shall not be discharged directly into 1996
the waters of the state.1997

       (2) Muds, cuttings, and other waste substances shall not be 1998
disposed of in violation of any rule.1999

       (3) Pits or steel tanks shall be used as authorized by the 2000
chief for containing brine and other waste substances resulting 2001
from, obtained from, or produced in connection with drilling, well 2002
stimulation, reworking, reconditioning, plugging back, or plugging 2003
operations. The pits and steel tanks shall be constructed and 2004
maintained to prevent the escape of brine and other waste 2005
substances. 2006

       (4) A dike or pit may be used for spill prevention and 2007
control. A dike or pit so used shall be constructed and maintained 2008
to prevent the escape of brine and crude oil, and the reservoir 2009
within such a dike or pit shall be kept reasonably free of brine, 2010
crude oil, and other waste substances.2011

       (5) Earthen impoundments constructed pursuant to the 2012
division's specifications may be used for the temporary storage of 2013
fluids used in the stimulation of a well.2014

       (6) No pit, earthen impoundment, or dike shall be used for 2015
the temporary storage of brine or other substances except in 2016
accordance with divisions (C)(3) to (5) of this section.2017

       (7) No pit or dike shall be used for the ultimate disposal of 2018
brine or other liquid waste substances.2019

       (D)(1) No person, without first having obtained a permit from 2020
the chief, shall inject brine or other waste substances resulting 2021
from, obtained from, or produced in connection with oil or gas 2022
drilling, exploration, or production into an underground formation 2023
unless a rule of the chief expressly authorizes the injection 2024
without a permit. The permit shall be in addition to any permit 2025
required by section 1509.05 of the Revised Code, and the permit 2026
application shall be accompanied by a permit fee of one thousand 2027
dollars. The chief shall adopt rules in accordance with Chapter 2028
119. of the Revised Code regarding the injection into wells of 2029
brine and other waste substances resulting from, obtained from, or 2030
produced in connection with oil or gas drilling, exploration, or 2031
production. The rules may authorize tests to evaluate whether 2032
fluids or carbon dioxide may be injected in a reservoir and to 2033
determine the maximum allowable injection pressure, which shall be 2034
conducted in accordance with methods prescribed in the rules or in 2035
accordance with conditions of the permit. In addition, the rules 2036
shall include provisions regarding applicationsall of the 2037
following:2038

       (a) Applications for and issuance of the permits required by 2039
this division; entry2040

       (b) Entry to conduct inspections and to examine and copy 2041
records to ascertain compliance with this division and rules, 2042
orders, and terms and conditions of permits adopted or issued 2043
under it; the2044

       (c) The provision and maintenance of information through 2045
monitoring, recordkeeping, and reporting; and. In addition, the 2046
rules shall require the owner of an injection well who has been 2047
issued a permit under division (D) of this section to submit 2048
electronically to the chief information concerning each shipment 2049
of brine or other waste substances received by the owner for 2050
injection into the well.2051

       (d) The provision and electronic reporting of information 2052
concerning brine and other waste substances from a transporter 2053
that is registered under section 1509.222 of the Revised Code 2054
prior to the injection of the transported brine or other waste 2055
substances;2056

       (e) Any other provisions in furtherance of the goals of this 2057
section and the Safe Drinking Water Act. To2058

       (2) The chief may adopt rules in accordance with Chapter 119. 2059
of the Revised Code authorizing tests to evaluate whether fluids 2060
or carbon dioxide may be injected in a reservoir and to determine 2061
the maximum allowable injection pressure, which shall be conducted 2062
in accordance with methods prescribed in the rules or in 2063
accordance with conditions of the permit. In addition, the chief 2064
may adopt rules that do both of the following:2065

        (a) Establish the total depth of a well for which a permit 2066
has been applied for or issued under this division;2067

        (b) Establish requirements and procedures to protect public 2068
health and safety. 2069

       (3) To implement the goals of the Safe Drinking Water Act, 2070
the chief shall not issue a permit for the injection of brine or 2071
other waste substances resulting from, obtained from, or produced 2072
in connection with oil or gas drilling, exploration, or production 2073
unless the chief concludes that the applicant has demonstrated 2074
that the injection will not result in the presence of any 2075
contaminant in ground water that supplies or can reasonably be 2076
expected to supply any public water system, such that the presence 2077
of the contaminant may result in the system's not complying with 2078
any national primary drinking water regulation or may otherwise 2079
adversely affect the health of persons. This2080

       (4) The chief may issue an order to the owner of a well in 2081
existence on the effective date of this amendment to make changes 2082
in the operation of the well in order to correct problems or to 2083
address safety concerns.2084

       (5) This division and rules, orders, and terms and conditions 2085
of permits adopted or issued under it shall be construed to be no 2086
more stringent than required for compliance with the Safe Drinking 2087
Water Act unless essential to ensure that underground sources of 2088
drinking water will not be endangered.2089

       (E) The owner holding a permit, or an assignee or transferee 2090
who has assumed the obligations and liabilities imposed by this 2091
chapter and any rules adopted or orders issued under it pursuant 2092
to section 1509.31 of the Revised Code, and the operator of a well 2093
shall be liable for a violation of this section or any rules 2094
adopted or orders or terms or conditions of a permit issued under 2095
it.2096

       (F) An owner shall replace the water supply of the holder of 2097
an interest in real property who obtains all or part of the 2098
holder's supply of water for domestic, agricultural, industrial, 2099
or other legitimate use from an underground or surface source 2100
where the supply has been substantially disrupted by 2101
contamination, diminution, or interruption proximately resulting 2102
from the owner's oil or gas operation, or the owner may elect to 2103
compensate the holder of the interest in real property for the 2104
difference between the fair market value of the interest before 2105
the damage occurred to the water supply and the fair market value 2106
after the damage occurred if the cost of replacing the water 2107
supply exceeds this difference in fair market values. However, 2108
during the pendency of any order issued under this division, the 2109
owner shall obtain for the holder or shall reimburse the holder 2110
for the reasonable cost of obtaining a water supply from the time 2111
of the contamination, diminution, or interruption by the operation 2112
until the owner has complied with an order of the chief for 2113
compliance with this division or such an order has been revoked or 2114
otherwise becomes not effective. If the owner elects to pay the 2115
difference in fair market values, but the owner and the holder 2116
have not agreed on the difference within thirty days after the 2117
chief issues an order for compliance with this division, within 2118
ten days after the expiration of that thirty-day period, the owner 2119
and the chief each shall appoint an appraiser to determine the 2120
difference in fair market values, except that the holder of the 2121
interest in real property may elect to appoint and compensate the 2122
holder's own appraiser, in which case the chief shall not appoint 2123
an appraiser. The two appraisers appointed shall appoint a third 2124
appraiser, and within thirty days after the appointment of the 2125
third appraiser, the three appraisers shall hold a hearing to 2126
determine the difference in fair market values. Within ten days 2127
after the hearing, the appraisers shall make their determination 2128
by majority vote and issue their final determination of the 2129
difference in fair market values. The chief shall accept a 2130
determination of the difference in fair market values made by 2131
agreement of the owner and holder or by appraisers under this 2132
division and shall make and dissolve orders accordingly. This 2133
division does not affect in any way the right of any person to 2134
enforce or protect, under applicable law, the person's interest in 2135
water resources affected by an oil or gas operation.2136

       (G) In any action brought by the state for a violation of 2137
division (A) of this section involving any well at which annular 2138
disposal is used, there shall be a rebuttable presumption 2139
available to the state that the annular disposal caused the 2140
violation if the well is located within a one-quarter-mile radius 2141
of the site of the violation.2142

       (H)(1) There is levied on the owner of an injection well who 2143
has been issued a permit under division (D) of this section the 2144
following fees:2145

       (a) Five cents per barrel of each substance that is delivered 2146
to a well to be injected in the well when the substance is 2147
produced within the division of oil and gas resources management 2148
regulatory district in which the well is located or within an 2149
adjoining oil and gas resources management regulatory district;2150

       (b) Twenty cents per barrel of each substance that is 2151
delivered to a well to be injected in the well when the substance 2152
is not produced within the division of oil and gas resources 2153
management regulatory district in which the well is located or 2154
within an adjoining oil and gas resources management regulatory 2155
district.2156

       (2) The maximum number of barrels of substance per injection 2157
well in a calendar year on which a fee may be levied under 2158
division (H) of this section is five hundred thousand. If in a 2159
calendar year the owner of an injection well receives more than 2160
five hundred thousand barrels of substance to be injected in the 2161
owner's well and if the owner receives at least one substance that 2162
is produced within the division's regulatory district in which the 2163
well is located or within an adjoining regulatory district and at 2164
least one substance that is not produced within the division's 2165
regulatory district in which the well is located or within an 2166
adjoining regulatory district, the fee shall be calculated first 2167
on all of the barrels of substance that are not produced within 2168
the division's regulatory district in which the well is located or 2169
within an adjoining district at the rate established in division 2170
(H)(2) of this section. The fee then shall be calculated on the 2171
barrels of substance that are produced within the division's 2172
regulatory district in which the well is located or within an 2173
adjoining district at the rate established in division (H)(1) of 2174
this section until the maximum number of barrels established in 2175
division (H)(2) of this section has been attained.2176

       (3) The owner of an injection well who is issued a permit 2177
under division (D) of this section shall collect the fee levied by 2178
division (H) of this section on behalf of the division of oil and 2179
gas resources management and forward the fee to the division. The 2180
chief shall transmit all money received under division (H) of this 2181
section to the treasurer of state who shall deposit the money in 2182
the state treasury to the credit of the oil and gas well fund 2183
created in section 1509.02 of the Revised Code. The owner of an 2184
injection well who collects the fee levied by this division may 2185
retain up to three per cent of the amount that is collected.2186

       (4) The chief shall adopt rules in accordance with Chapter 2187
119. of the Revised Code establishing requirements and procedures 2188
for collection of the fee levied by division (H) of this section.2189

       Sec. 1509.221.  (A) No person, without first having obtained 2190
a permit from the chief of the division of oil and gas resources 2191
management, shall drill a well or inject a substance into a well 2192
for the exploration for or extraction of minerals or energy, other 2193
than oil or natural gas, including, but not limited to, the mining 2194
of sulfur by the Frasch process, the solution mining of minerals, 2195
the in situ combustion of fossil fuel, or the recovery of 2196
geothermal energy to produce electric power, unless a rule of the 2197
chief expressly authorizes the activity without a permit. The 2198
permit shall be in addition to any permit required by section 2199
1509.05 of the Revised Code. The chief shall adopt rules in 2200
accordance with Chapter 119. of the Revised Code governing the 2201
issuance of permits under this section. The rules shall include 2202
provisions regarding the matters the applicant for a permit shall 2203
demonstrate to establish eligibility for a permit; the form and 2204
content of applications for permits; the terms and conditions of 2205
permits; entry to conduct inspections and to examine and copy 2206
records to ascertain compliance with this section and rules, 2207
orders, and terms and conditions of permits adopted or issued 2208
thereunder; provision and maintenance of information through 2209
monitoring, recordkeeping, and reporting; and other provisions in 2210
furtherance of the goals of this section and the Safe Drinking 2211
Water Act. To implement the goals of the Safe Drinking Water Act, 2212
the chief shall not issue a permit under this section, unless the 2213
chief concludes that the applicant has demonstrated that the 2214
drilling, injection of a substance, and extraction of minerals or 2215
energy will not result in the presence of any contaminant in 2216
underground water that supplies or can reasonably be expected to 2217
supply any public water system, such that the presence of the 2218
contaminant may result in the system's not complying with any 2219
national primary drinking water regulation or may otherwise 2220
adversely affect the health of persons. The chief may issue, 2221
without a prior adjudication hearing, orders requiring compliance 2222
with this section and rules, orders, and terms and conditions of 2223
permits adopted or issued thereunder. This section and rules, 2224
orders, and terms and conditions of permits adopted or issued 2225
thereunder shall be construed to be no more stringent than 2226
required for compliance with the Safe Drinking Water Act, unless 2227
essential to ensure that underground sources of drinking water 2228
will not be endangered.2229

       (B)(1) There is levied on the owner of an injection well who 2230
has been issued a permit under division (D) of section 1509.22 of 2231
the Revised Code the following fees:2232

       (a) Five cents per barrel of each substance that is delivered 2233
to a well to be injected in the well when the substance is 2234
produced within the division of oil and gas resources management 2235
regulatory district in which the well is located or within an 2236
adjoining oil and gas resources management regulatory district; 2237

       (b) Twenty cents per barrel of each substance that is 2238
delivered to a well to be injected in the well when the substance 2239
is not produced within the division of oil and gas resources 2240
management regulatory district in which the well is located or 2241
within an adjoining oil and gas resources management regulatory 2242
district.2243

       (2) The maximum number of barrels of substance per injection 2244
well in a calendar year on which a fee may be levied under 2245
division (B) of this section is five hundred thousand. If in a 2246
calendar year the owner of an injection well receives more than 2247
five hundred thousand barrels of substance to be injected in the 2248
owner's well and if the owner receives at least one substance that 2249
is produced within the division's regulatory district in which the 2250
well is located or within an adjoining regulatory district and at 2251
least one substance that is not produced within the division's 2252
regulatory district in which the well is located or within an 2253
adjoining regulatory district, the fee shall be calculated first 2254
on all of the barrels of substance that are not produced within 2255
the division's regulatory district in which the well is located or 2256
within an adjoining district at the rate established in division 2257
(B)(2) of this section. The fee then shall be calculated on the 2258
barrels of substance that are produced within the division's 2259
regulatory district in which the well is located or within an 2260
adjoining district at the rate established in division (B)(1) of 2261
this section until the maximum number of barrels established in 2262
division (B)(2) of this section has been attained.2263

       (3) The owner of an injection well who is issued a permit 2264
under division (D) of section 1509.22 of the Revised Code shall 2265
collect the fee levied by division (B) of this section on behalf 2266
of the division of oil and gas resources management and forward 2267
the fee to the division. The chief shall transmit all money 2268
received under division (B) of this section to the treasurer of 2269
state who shall deposit the money in the state treasury to the 2270
credit of the oil and gas well fund created in section 1509.02 of 2271
the Revised Code. The owner of an injection well who collects the 2272
fee levied by this division may retain up to three per cent of the 2273
amount that is collected.2274

       (4) The chief shall adopt rules in accordance with Chapter 2275
119. of the Revised Code establishing requirements and procedures 2276
for collection of the fee levied by division (B) of this section.2277

       (C) In an action under section 1509.04 or 1509.33 of the 2278
Revised Code to enforce this section, the court shall grant 2279
preliminary and permanent injunctive relief and impose a civil 2280
penalty upon the showing that the person against whom the action 2281
is brought has violated, is violating, or will violate this 2282
section or rules, orders, or terms or conditions of permits 2283
adopted or issued thereunder. The court shall not require, prior 2284
to granting such preliminary and permanent injunctive relief or 2285
imposing a civil penalty, proof that the violation was, is, or 2286
will be the result of intentional conduct or negligence. In any 2287
such action, any person may intervene as a plaintiff upon the 2288
demonstration that the person has an interest that is or may be 2289
adversely affected by the activity for which injunctive relief or 2290
a civil penalty is sought.2291

       Sec. 1509.222.  (A)(1) Except as provided in section 1509.226 2292
of the Revised Code, no person shall transport brine by vehicle in 2293
this state unless the business entity that employs the person 2294
first registers with and obtains a registration certificate and 2295
identification number from the chief of the division of oil and 2296
gas resources management.2297

       (2) No more than one registration certificate shall be 2298
required of any business entity. Registration certificates issued 2299
under this section are not transferable. An applicant shall file 2300
an application with the chief, containing such information in such 2301
form as the chief prescribes, but including a. The application 2302
shall include at least all of the following:2303

       (a) A list that identifies each vehicle, vessel, railcar, and 2304
container that will be used in the transportation of brine;2305

       (b) A plan for disposal that provides for compliance with the 2306
requirements of this chapter and rules of the chief pertaining to 2307
the transportation of brine by vehicle and the disposal of brine 2308
so transported and that lists all disposal sites that the 2309
applicant intends to use, the;2310

       (c) The bond required by section 1509.225 of the Revised 2311
Code, and a;2312

       (d) A certificate issued by an insurance company authorized 2313
to do business in this state certifying that the applicant has in 2314
force a liability insurance policy in an amount not less than 2315
three hundred thousand dollars bodily injury coverage and three 2316
hundred thousand dollars property damage coverage to pay damages 2317
for injury to persons or property caused by the collecting, 2318
handling, transportation, or disposal of brine. The2319

       The insurance policy required by division (A)(2)(d) of this 2320
section shall be maintained in effect during the term of the 2321
registration certificate. The policy or policies providing the 2322
coverage shall require the insurance company to give notice to the 2323
chief if the policy or policies lapse for any reason. Upon such 2324
termination of the policy, the chief may suspend the registration 2325
certificate until proper insurance coverage is obtained. Each2326

       (3) Each application for a registration certificate shall be 2327
accompanied by a nonrefundable fee of five hundred dollars. 2328

       (3)(4) If a business entity that has been issued a 2329
registration certificate under this section changes its name due 2330
to a business reorganization or merger, the business entity shall 2331
revise the bond or certificates of deposit required by section 2332
1509.225 of the Revised Code and obtain a new certificate from an 2333
insurance company in accordance with division (A)(2)(e) of this 2334
section to reflect the change in the name of the business entity.2335

       (B) The chief shall issue an order denying an application for 2336
a registration certificate if the chief finds that either of the 2337
following applies:2338

       (1) The applicant, at the time of applying for the 2339
registration certificate, has been found liable by a final 2340
nonappealable order of a court of competent jurisdiction for 2341
damage to streets, roads, highways, bridges, culverts, or 2342
drainways pursuant to section 4513.34 or 5577.12 of the Revised 2343
Code until the applicant provides the chief with evidence of 2344
compliance with the order.2345

       (2) The applicant's plan for disposal does not provide for 2346
compliance with the requirements of this chapter and rules of the 2347
chief pertaining to the transportation of brine by vehicle and the 2348
disposal of brine so transported.2349

       (C) No applicant shall attempt to circumvent division (B) of 2350
this section by applying for a registration certificate under a 2351
different name or business organization name, by transferring 2352
responsibility to another person or entity, or by any similar act.2353

       (D) A registered transporter shall apply to revise a disposal 2354
plan under procedures that the chief shall prescribe by rule. 2355
However, at a minimum, an application for a revision shall list 2356
all sources and disposal sites of brine currently transported. The 2357
chief shall deny any application for a revision of a plan under 2358
this division if the chief finds that the proposed revised plan 2359
does not provide for compliance with the requirements of this 2360
chapter and rules of the chief pertaining to the transportation of 2361
brine by vehicle and the disposal of brine so transported. 2362
Approvals and denials of revisions shall be by order of the chief.2363

       (E) The chief may adopt rules, issue orders, and attach terms 2364
and conditions to registration certificates as may be necessary to 2365
administer, implement, and enforce sections 1509.222 to 1509.226 2366
of the Revised Code for protection of public health or safety or 2367
conservation of natural resources.2368

       Sec. 1509.223.  (A) No permit holder or owner of a well shall 2369
enter into an agreement with or permit any person to transport 2370
brine produced from the well who is not registered pursuant to 2371
section 1509.222 of the Revised Code or exempt from registration 2372
under section 1509.226 of the Revised Code.2373

       (B) Each registered transporter shall file with the chief of 2374
the division of oil and gas resources management, on or before the 2375
fifteenth day of April, a statement concerning brine transported, 2376
including quantities transported and source and delivery points, 2377
during the last preceding calendar year, and such other 2378
information in such form as the chief may prescribe.2379

       (C) Each registered transporter shall keep on each vehicle 2380
used to transport brine a daily log and have it available upon the 2381
request of the chief or an authorized representative of the chief 2382
or a peace officer. The log shall, at a minimum, include all of 2383
the following information:2384

       (1) The name of the owner or owners of the well or wells 2385
producing the brine to be transported;2386

       (2) The date and time the brine is loaded;2387

       (3) The name of the driver;2388

       (4) The amount of brine loaded at each collection point;2389

       (5) The disposal location;2390

       (6) The date and time the brine is disposed of and the amount 2391
of brine disposed of at each location.2392

       The chief, by rule, may establish procedures for the 2393
electronic submission to the chief of the information that is 2394
required to be included in the daily log. No registered 2395
transporter shall falsify or fail to keep or submit the log 2396
required by this division.2397

       (D) Each registered transporter shall legibly identify with 2398
reflective paints all vehicles employed in transporting or 2399
disposing of brine. Letters shall be no less than four inches in 2400
height and shall indicate the identification number issued by the 2401
chief, the word "brine," and the name and telephone number of the 2402
transporter.2403

       (E) The chief shall maintain and keep a current list of 2404
persons registered to transport brine under section 1509.222 of 2405
the Revised Code. The list shall be open to public inspection. It 2406
is an affirmative defense to a charge under division (A) of this 2407
section that at the time the permit holder or owner of a well 2408
entered into an agreement with or permitted a person to transport 2409
brine, the person was shown on the list as currently registered to 2410
transport brine.2411

       Sec. 1509.23.  (A) Rules of the chief of the division of oil 2412
and gas resources management may specify practices to be followed 2413
in the drilling and treatment of wells, production of oil and gas, 2414
and plugging of wells for protection of public health or safety or 2415
to prevent damage to natural resources, including specification of 2416
the following:2417

       (1) Appropriate devices;2418

       (2) Minimum distances that wells and other excavations, 2419
structures, and equipment shall be located from water wells, 2420
streets, roads, highways, rivers, lakes, streams, ponds, other 2421
bodies of water, railroad tracks, public or private recreational 2422
areas, zoning districts, and buildings or other structures. Rules 2423
adopted under division (A)(2) of this section shall not conflict 2424
with section 1509.021 of the Revised Code.2425

       (3) Other methods of operation;2426

       (4) Procedures, methods, and equipment and other requirements 2427
for equipment to prevent and contain discharges of oil and brine 2428
from oil production facilities and oil drilling and workover 2429
facilities consistent with and equivalent in scope, content, and 2430
coverage to section 311(j)(1)(c) of the "Federal Water Pollution 2431
Control Act Amendments of 1972," 86 Stat. 886, 33 U.S.C.A. 1251, 2432
as amended, and regulations adopted under it. In addition, the 2433
rules may specify procedures, methods, and equipment and other 2434
requirements for equipment to prevent and contain surface and 2435
subsurface discharges of fluids, condensates, and gases.2436

       (5) Notifications;2437

       (6) Requirements governing the location and construction of 2438
fresh water impoundments that are part of a production operation.2439

       (B) The chief, in consultation with the emergency response 2440
commission created in section 3750.02 of the Revised Code, shall 2441
adopt rules in accordance with Chapter 119. of the Revised Code 2442
that specify the information that shall be included in an 2443
electronic database that the chief shall create and host. The 2444
information shall be that which the chief considers to be 2445
appropriate for the purpose of responding to emergency situations 2446
that pose a threat to public health or safety or the environment. 2447
At the minimum, the information shall include that which a person 2448
who is regulated under this chapter is required to submit under 2449
the "Emergency Planning and Community Right-To-Know Act of 1986," 2450
100 Stat. 1728, 42 U.S.C.A. 11001, and regulations adopted under 2451
it.2452

       In addition, the rules shall specify whether and to what 2453
extent the database and the information that it contains will be 2454
made accessible to the public. The rules shall ensure that the 2455
database will be made available via the internet or a system of 2456
computer disks to the emergency response commission and to every 2457
local emergency planning committee and fire department in this 2458
state.2459

       Sec. 1509.28.  (A) The chief of the division of oil and gas 2460
resources management, upon the chief's own motion or upon 2461
application by the owners of sixty-five per cent of the land area 2462
overlying the pool, shall hold a hearing to consider the need for 2463
the operation as a unit of an entire pool or part thereof. An 2464
application by owners shall be accompanied by a nonrefundable fee 2465
of ten thousand dollars and by such information as the chief may 2466
request.2467

       The chief shall make an order providing for the unit 2468
operation of a pool or part thereof if the chief finds that such 2469
operation is reasonably necessary to increase substantially the 2470
ultimate recovery of oil and gas, and the value of the estimated 2471
additional recovery of oil or gas exceeds the estimated additional 2472
cost incident to conducting the operation. The order shall be upon 2473
terms and conditions that are just and reasonable and shall 2474
prescribe a plan for unit operations that shall include:2475

       (1) A description of the unitized area, termed the unit area;2476

       (2) A statement of the nature of the operations contemplated;2477

       (3) An allocation to the separately owned tracts in the unit 2478
area of all the oil and gas that is produced from the unit area 2479
and is saved, being the production that is not used in the conduct 2480
of operations on the unit area or not unavoidably lost. The 2481
allocation shall be in accord with the agreement, if any, of the 2482
interested parties. If there is no such agreement, the chief shall 2483
determine the value, from the evidence introduced at the hearing, 2484
of each separately owned tract in the unit area, exclusive of 2485
physical equipment, for development of oil and gas by unit 2486
operations, and the production allocated to each tract shall be 2487
the proportion that the value of each tract so determined bears to 2488
the value of all tracts in the unit area.2489

       (4) A provision for the credits and charges to be made in the 2490
adjustment among the owners in the unit area for their respective 2491
investments in wells, tanks, pumps, machinery, materials, and 2492
equipment contributed to the unit operations;2493

       (5) A provision providing how the expenses of unit 2494
operations, including capital investment, shall be determined and 2495
charged to the separately owned tracts and how the expenses shall 2496
be paid;2497

       (6) A provision, if necessary, for carrying or otherwise 2498
financing any person who is unable to meet the person's financial 2499
obligations in connection with the unit, allowing a reasonable 2500
interest charge for such service;2501

       (7) A provision for the supervision and conduct of the unit 2502
operations, in respect to which each person shall have a vote with 2503
a value corresponding to the percentage of the expenses of unit 2504
operations chargeable against the interest of that person;2505

       (8) The time when the unit operations shall commence, and the 2506
manner in which, and the circumstances under which, the unit 2507
operations shall terminate;2508

       (9) Such additional provisions as are found to be appropriate 2509
for carrying on the unit operations, and for the protection or 2510
adjustment of correlative rights.2511

       (B) No order of the chief providing for unit operations shall 2512
become effective unless and until the plan for unit operations 2513
prescribed by the chief has been approved in writing by those 2514
owners who, under the chief's order, will be required to pay at 2515
least sixty-five per cent of the costs of the unit operation, and 2516
also by the royalty or, with respect to unleased acreage, fee 2517
owners of sixty-five per cent of the acreage to be included in the 2518
unit. If the plan for unit operations has not been so approved by 2519
owners and royalty owners at the time the order providing for unit 2520
operations is made, the chief shall upon application and notice 2521
hold such supplemental hearings as may be required to determine if 2522
and when the plan for unit operations has been so approved. If the 2523
owners and royalty owners, or either, owning the required 2524
percentage of interest in the unit area do not approve the plan 2525
for unit operations within a period of six months from the date on 2526
which the order providing for unit operations is made, the order 2527
shall cease to be of force and shall be revoked by the chief.2528

       An order providing for unit operations may be amended by an 2529
order made by the chief, in the same manner and subject to the 2530
same conditions as an original order providing for unit 2531
operations, provided that:2532

       (1) If such an amendment affects only the rights and 2533
interests of the owners, the approval of the amendment by the 2534
royalty owners shall not be required.2535

       (2) No such order of amendment shall change the percentage 2536
for allocation of oil and gas as established for any separately 2537
owned tract by the original order, except with the consent of all 2538
persons owning interest in the tract.2539

       The chief, by an order, may provide for the unit operation of 2540
a pool or a part thereof that embraces a unit area established by 2541
a previous order of the chief. Such an order, in providing for the 2542
allocation of unit production, shall first treat the unit area 2543
previously established as a single tract, and the portion of the 2544
unit production so allocated thereto shall then be allocated among 2545
the separately owned tracts included in the previously established 2546
unit area in the same proportions as those specified in the 2547
previous order.2548

       Oil and gas allocated to a separately owned tract shall be 2549
deemed, for all purposes, to have been actually produced from the 2550
tract, and all operations, including, but not limited to, the 2551
commencement, drilling, operation of, or production from a well 2552
upon any portion of the unit area shall be deemed for all purposes 2553
the conduct of such operations and production from any lease or 2554
contract for lands any portion of which is included in the unit 2555
area. The operations conducted pursuant to the order of the chief 2556
shall constitute a fulfillment of all the express or implied 2557
obligations of each lease or contract covering lands in the unit 2558
area to the extent that compliance with such obligations cannot be 2559
had because of the order of the chief.2560

       Oil and gas allocated to any tract, and the proceeds from the 2561
sale thereof, shall be the property and income of the several 2562
persons to whom, or to whose credit, the same are allocated or 2563
payable under the order providing for unit operations.2564

       No order of the chief or other contract relating to the sale 2565
or purchase of production from a separately owned tract shall be 2566
terminated by the order providing for unit operations, but shall 2567
remain in force and apply to oil and gas allocated to the tract 2568
until terminated in accordance with the provisions thereof.2569

       Except to the extent that the parties affected so agree, no 2570
order providing for unit operations shall be construed to result 2571
in a transfer of all or any part of the title of any person to the 2572
oil and gas rights in any tract in the unit area. All property, 2573
whether real or personal, that may be acquired for the account of 2574
the owners within the unit area shall be the property of such 2575
owners in the proportion that the expenses of unit operations are 2576
charged.2577

       Sec. 1509.33.  (A) Whoever violates sections 1509.01 to 2578
1509.31 of the Revised Code, or any rules adopted or orders or 2579
terms or conditions of a permit or registration certificate issued 2580
pursuant to these sections for which no specific penalty is 2581
provided in this section, shall pay a civil penalty of not more 2582
than four thousand dollars for each offense.2583

       (B) Whoever violates section 1509.221 of the Revised Code or 2584
any rules adopted or orders or terms or conditions of a permit 2585
issued thereunder shall pay a civil penalty of not more than two 2586
thousand five hundred dollars for each violation.2587

       (C) Whoever violates division (D) of section 1509.22 or 2588
division (A)(1) of section 1509.222 of the Revised Code shall pay 2589
a civil penalty of not less than two thousand five hundred dollars 2590
nor more than twenty thousand dollars for each violation.2591

       (D) Whoever violates division (A) of section 1509.22 of the 2592
Revised Code shall pay a civil penalty of not less than two 2593
thousand five hundred dollars nor more than ten thousand dollars 2594
for each violation.2595

       (E) Whoever violates division (A) of section 1509.223 of the 2596
Revised Code shall pay a civil penalty of not more than ten 2597
thousand dollars for each violation.2598

       (F) Whoever violates section 1509.072 of the Revised Code or 2599
any rules adopted or orders issued to administer, implement, or 2600
enforce that section shall pay a civil penalty of not more than 2601
five thousand dollars for each violation.2602

       (G) In addition to any other penalties provided in this 2603
chapter, whoever violates division (B) of section 1509.22 or 2604
division (A)(1) of section 1509.222 or knowingly violates division 2605
(A) of section 1509.223 of the Revised Code is liable for any 2606
damage or injury caused by the violation and for the cost of 2607
rectifying the violation and conditions caused by the violation. 2608
If two or more persons knowingly violate one or more of those 2609
divisions in connection with the same event, activity, or 2610
transaction, they are jointly and severally liable under this 2611
division.2612

       (H) The attorney general, upon the request of the chief of 2613
the division of oil and gas resources management, shall commence 2614
an action under this section against any person who violates 2615
sections 1509.01 to 1509.31 of the Revised Code, or any rules 2616
adopted or orders or terms or conditions of a permit or 2617
registration certificate issued pursuant to these sections. Any 2618
action under this section is a civil action, governed by the Rules 2619
of Civil Procedure and other rules of practice and procedure 2620
applicable to civil actions. The remedy provided in this division 2621
is cumulative and concurrent with any other remedy provided in 2622
this chapter, and the existence or exercise of one remedy does not 2623
prevent the exercise of any other, except that no person shall be 2624
subject to both a civil penalty under division (A), (B), (C), or 2625
(D) of this section and a criminal penalty under section 1509.99 2626
of the Revised Code for the same offense.2627

       (I) For purposes of this section, each day of violation 2628
constitutes a separate offense.2629

       Sec. 1509.99.  (A) Whoever violates sections 1509.01 to 2630
1509.31 of the Revised Code or any rules adopted or orders or 2631
terms or conditions of a permit issued pursuant to these sections 2632
for which no specific penalty is provided in this section shall be 2633
fined not less than one hundred nor more than one thousand dollars 2634
for a first offense; for each subsequent offense suchthe person 2635
shall be fined not less than two hundred nor more than two 2636
thousand dollars.2637

       (B) Whoever violates section 1509.221 of the Revised Code or 2638
any rules adopted or orders or terms or conditions of a permit 2639
issued thereunder shall be fined not more than five thousand 2640
dollars for each day of violation.2641

       (C) Whoever knowingly violates section 1509.072, division 2642
(A), (B), or (D) of section 1509.22, division (A)(1) or (C) of 2643
section 1509.222, or division (A) or (D) of section 1509.223 of 2644
the Revised Code or any rules adopted or orders issued under 2645
division (C) of section 1509.22 or rules adopted or orders or 2646
terms or conditions of a registration certificate issued under 2647
division (E) of section 1509.222 of the Revised Code shall be 2648
fined ten thousand dollars or imprisoned for six months, or both 2649
for a first offense; for each subsequent offense suchthe person 2650
shall be fined twenty thousand dollars or imprisoned for two 2651
years, or both. Whoever negligently violates suchthose divisions, 2652
sections, rules, orders, or terms or conditions of a registration 2653
certificate shall be fined not more than five thousand dollars.2654

       (D) Whoever violates division (C) of section 1509.223 of the 2655
Revised Code shall be fined not more than five hundred dollars for 2656
a first offense norand not more than one thousand dollars for a 2657
subsequent offense.2658

       (E) The prosecuting attorney of the county in which the 2659
offense was committed or the attorney general may prosecute an 2660
action under this section.2661

       (F) For purposes of this section, each day of violation 2662
constitutes a separate offense.2663

       Sec. 1514.01.  As used in this chapter:2664

       (A) "Surface mining" means all or any part of a process 2665
followed in the production of minerals from the earth or from the 2666
surface of the land by surface excavation methods, such as open 2667
pit mining, dredging, placering, or quarrying, and includes the 2668
removal of overburden for the purpose of determining the location, 2669
quantity, or quality of mineral deposits, and the incidental 2670
removal of coal at a rate less than one-sixth the total weight of 2671
minerals and coal removed during the year, but does not include: 2672
test or exploration boring; mining operations carried out beneath 2673
the surface by means of shafts, tunnels, or similar mine openings; 2674
the extraction of minerals, other than coal, by a landowner for 2675
the landowner's own noncommercial use where such material is 2676
extracted and used in an unprocessed form on the same tract of 2677
land; the extraction of minerals, other than coal, from borrow 2678
pits for highway construction purposes, provided that the 2679
extraction is performed under a bond, a contract, and 2680
specifications that substantially provide for and require 2681
reclamation practices consistent with the requirements of this 2682
chapter; the removal of minerals incidental to construction work, 2683
provided that the owner or person having control of the land upon 2684
which the construction occurs, the contractor, or the construction 2685
firm possesses a valid building permit; the removal of minerals to 2686
a depth of not more than five feet, measured from the highest 2687
original surface elevation of the area to be excavated, where not 2688
more than one acre of land is excavated during twelve successive 2689
calendar months; routine dredging of a watercourse for purely 2690
navigational or flood control purposes during which materials are 2691
removed for noncommercial purposes, including activities conducted 2692
by or on behalf of a conservancy district, organized under Chapter 2693
6101. of the Revised Code, for flood control purposes that are 2694
exempt from permitting requirements under section 10 of the 2695
"Rivers and Harbors Act of 1899," 30 Stat. 1151, 33 U.S.C. 403, as 2696
amended; or the extraction or movement of soil or minerals within 2697
a solid waste facility, as defined in section 3734.01 of the 2698
Revised Code, that is a sanitary landfill when the soil or 2699
minerals are used exclusively for the construction, operation, 2700
closure, and post-closure care of the facility or for maintenance 2701
activities at the facility.2702

       (B) "Minerals" means sand, gravel, clay, shale, gypsum, 2703
halite, limestone, dolomite, sandstone, other stone, metalliferous 2704
or nonmetalliferous ore, or other material or substance of 2705
commercial value excavated in a solid state from natural deposits 2706
on or in the earth, but does not include coal or peat.2707

       (C) "Overburden" means all of the earth and other materials 2708
that cover a natural deposit of minerals and also means such earth 2709
and other materials after removal from their natural state in the 2710
process of surface mining.2711

       (D) "Spoil bank" means a pile of removed overburden.2712

       (E) "Area of land affected" means the area of land that has 2713
been excavated, or upon which a spoil bank exists, or both.2714

       (F)(1) "Operation" or "surface mining operation" means all of 2715
the premises, facilities, and equipment used in the process of 2716
removing minerals, or minerals and incidental coal, by surface 2717
mining from a mining area in the creation of which mining area 2718
overburden or minerals, or minerals and incidental coal, are 2719
disturbed or removed, such surface mining area being located upon 2720
a single tract of land or upon two or more contiguous tracts of 2721
land. Separation by a stream or roadway shall not preclude the 2722
tracts from being considered contiguous.2723

       (2) When the context indicates, "operation" or "in-stream 2724
mining operation" means all of the premises, facilities, and 2725
equipment used in the process of removing minerals by in-stream 2726
mining from a mining area.2727

       (G) "Operator" means any person engaged in surface mining who 2728
removes minerals, or minerals and incidental coal, from the earth 2729
by surface mining or who removes overburden for the purpose of 2730
determining the location, quality, or quantity of a mineral 2731
deposit. "Operator" also means any person engaged in in-stream 2732
mining who removes minerals from the bottom of the channel of a 2733
watercourse by in-stream mining.2734

       (H) "Performance bond" means the surety bond required to be 2735
filed under section 1514.04 of the Revised Code and includes cash, 2736
an irrevocable letter of credit, and negotiable certificates of 2737
deposit authorized to be deposited in lieu of the surety bond 2738
under that section.2739

       (I) "Dewatering" means the withdrawal of ground water from an 2740
aquifer or saturated zone that may result in the lowering of the 2741
water level within the aquifer or saturated zone or a decline of 2742
the potentiometric surface within that aquifer or saturated zone.2743

       (J) "Ground water" means all water occurring in an aquifer.2744

       (K) "Cone of depression" means a depression or low point in 2745
the water table or potentiometric surface of a body of ground 2746
water that develops around a location from which ground water is 2747
being withdrawn.2748

       (L) "High water mark" means the line on the shore that is 2749
established by the fluctuations of water and indicated by physical 2750
characteristics such as a natural line impressed on the bank; 2751
shelving; changes in the character of soil; destruction of 2752
terrestrial vegetation; the presence of litter and debris; or 2753
other appropriate means that consider the characteristics of the 2754
surrounding area.2755

       (M) "In-stream mining" means all or any part of a process 2756
followed in the production of minerals from the bottom of the 2757
channel of a watercourse that drains a surface area of more than 2758
one hundred square miles. "In-stream mining" may be accomplished 2759
by using any technique or by using surface excavation methods, 2760
such as open pit mining, dredging, placering, or quarrying, and 2761
includes the removal of overburden for the purpose of determining 2762
the location, quantity, or quality of mineral deposits. "In-stream 2763
mining" does not include either of the following:2764

       (1) Routine dredging for purely navigational or flood control 2765
purposes during which materials are removed for noncommercial 2766
purposes;2767

       (2) The extraction of minerals, other than coal, by a 2768
landowner for the landowner's own noncommercial use when the 2769
material is extracted and used in an unprocessed form on the same 2770
tract of land.2771

       For purposes of division (M) of this section, the number of 2772
square miles of surface area that a watercourse drains shall be 2773
determined by consulting the "gazetteer of Ohio streams," which is 2774
a portion of the Ohio water plan inventory published in 1960 by 2775
the division of water in the department of natural resources, or 2776
its successor, if any.2777

       (N) In provisions concerning in-stream mining, when the 2778
context is appropriate, "land" is deemed to include an area of a 2779
watercourse.2780

       (O) "Watercourse" means any naturally occurring perennial or 2781
intermittent stream, river, or creek flowing within a defined 2782
stream bed and banks.2783

       (P) "Certified mine foreperson" means the person whom the 2784
operator of a surface mining operation places in charge of the 2785
conditions and practices at the mine, who is responsible for 2786
conducting workplace examinations under 30 C.F.R. part 56, as 2787
amended, and who has passed an examination for the position 2788
administered by the division of mineral resources management.2789

       Sec. 1514.02.  (A) After the dates the chief of the division 2790
of mineral resources management prescribes by rule pursuant to 2791
section 1514.08 of the Revised Code, but not later than July 1, 2792
1977, nor earlier than July 1, 1975, no operator shall engage in 2793
surface mining or conduct a surface mining operation without a 2794
surface mining permit issued by the chief.2795

       No person shall engage in in-stream mining or conduct an 2796
in-stream mining operation without an in-stream mining permit 2797
issued by the chief. However, a person who, on the effective date 2798
of this amendmentMarch 15, 2002, holds a valid permit to conduct 2799
in-stream mining that is issued under section 10 of the "Rivers 2800
and Harbors Appropriation Act of 1899," 30 Stat. 1151, 33 U.S.C. 2801
403, as amended, shall not be required to obtain an in-stream 2802
mining permit from the chief under this section until the existing 2803
permit expires.2804

       An application for a surface or in-stream mining permit shall 2805
be upon the form that the chief prescribes and provides and shall 2806
contain all of the following:2807

       (1) The name and address of the applicant, of all partners if 2808
the applicant is a partnership, or of all officers and directors 2809
if the applicant is a corporation, and any other person who has a 2810
right to control or in fact controls the management of the 2811
applicant or the selection of officers, directors, or managers of 2812
the applicant;2813

       (2) A list of the minerals and coal, if any coal, sought to 2814
be extracted, an estimate of the annual production rates for each 2815
mineral and coal, and a description of the land upon which the 2816
applicant proposes to engage in a surface or in-stream mining 2817
operation, which description shall set forth the names of the 2818
counties, townships, and municipal corporations, if any, in which 2819
the land is located; the location of its boundaries; and a 2820
description of the land of sufficient certainty that it may be 2821
located and distinguished from other lands;2822

       (3) The name of each county, township, or municipal 2823
corporation, if any, that has in effect a zoning resolution or 2824
ordinance that would affect the proposed surface or in-stream 2825
mining operation or, if no such zoning resolution or ordinance is 2826
in effect, a statement attesting to that fact. The application 2827
also shall contain an explanation of how the applicant intends to 2828
comply with any applicable provisions of a zoning resolution or 2829
ordinance.2830

       (4) An estimate of the number of acres of land that will 2831
comprise the total area of land to be affected and an estimate of 2832
the number of acres of land to be affected during the first year 2833
of operation under the permit;2834

       (5) The name and address of the owner of surface rights in 2835
the land upon which the applicant proposes to engage in surface or 2836
in-stream mining;2837

       (6) A copy of the deed, lease, or other instrument that 2838
authorizes entry upon the land by the applicant or the applicant's 2839
agents if surface rights in the land are not owned by the 2840
applicant;2841

       (7) A statement of whether any surface or in-stream mining 2842
permits or coal mining and reclamation permits are now held by the 2843
applicant in this state and, if so, the numbers of the permits;2844

       (8) A statement of whether the applicant, any partner if the 2845
applicant is a partnership, any officer or director if the 2846
applicant is a corporation, or any other person who has a right to 2847
control or in fact controls the management of the applicant or the 2848
selection of officers, directors, or managers of the applicant has 2849
ever had a surface or in-stream mining permit or coal mining and 2850
reclamation permit issued by this or any other state suspended or 2851
revoked or has ever forfeited a surface or in-stream mining or 2852
coal mining and reclamation bond or cash, an irrevocable letter of 2853
credit, or a security deposited in lieu of a bond;2854

       (9) A report of the results of test borings that the operator 2855
has conducted on the area or otherwise has readily available, 2856
including, to the extent that the information is readily available 2857
to the operator, the nature and depth of overburden and material 2858
underlying each mineral or coal deposit, and the thickness and 2859
extent of each mineral or coal deposit. In the case of an 2860
application for an in-stream mining permit, the report 2861
additionally shall include sufficient information to show the 2862
approximate depth to bedrock. All information relating to test 2863
boring results submitted to the chief pursuant to this section 2864
shall be kept confidential and not made a matter of public record, 2865
except that the information may be disclosed by the chief in any 2866
legal action in which the truthfulness of the information is 2867
material.2868

       (10) A complete plan for surface or in-stream mining and 2869
reclamation of the area to be affected, which shall include a 2870
statement of the intended future uses of the area and show the 2871
approximate sequence in which mining and reclamation measures are 2872
to occur, the approximate intervals following mining during which 2873
the reclamation of all various parts of the area affected will be 2874
completed, and the measures the operator will perform to prevent 2875
damage to adjoining property and to achieve all of the following 2876
general performance standards for mining and reclamation:2877

       (a) Prepare the site adequately for its intended future uses 2878
upon completion of mining;2879

       (b) Where a plan of zoning or other comprehensive plan has 2880
been adopted that governs land uses or the construction of public 2881
improvements and utilities for an area that includes the area 2882
sought to be mined, ensure that future land uses within the site 2883
will not conflict with the plan. On and after the effective date 2884
of this amendmentMarch 15, 2002, division (A)(10)(b) of this 2885
section does not apply to any surface or in-stream mining permit 2886
or applications for a surface or in-stream mining permit, any 2887
renewal of an existing surface or in-stream mining permit or 2888
application for a renewal of an existing surface or in-stream 2889
mining permit, any amendment or application for an amendment to an 2890
existing surface or in-stream mining permit, or any modification 2891
or application for a modification of a mining and reclamation plan 2892
of an existing surface or in-stream mining permit unless the 2893
application for such a permit, renewal, amendment, or modification 2894
is a resubmission, revision, or reconsideration of an application 2895
that was pending before the chief or was first approved prior to2896
the effective date of this amendmentMarch 15, 2002.2897

       (c) Grade, contour, or terrace final slopes, wherever needed, 2898
sufficient to achieve soil stability and control landslides, 2899
erosion, and sedimentation. Highwalls will be permitted if they 2900
are compatible with the future uses specified in the plan and 2901
measures will be taken to ensure public safety. Where ponds, 2902
impoundments, or other resulting bodies of water are intended for 2903
recreational use, establish banks and slopes that will ensure safe 2904
access to those bodies of water. Where such bodies of water are 2905
not intended for recreation, include measures to ensure public 2906
safety, but access need not be provided.2907

       (d) Resoil the area of land affected, wherever needed, with 2908
topsoil or suitable subsoil, fertilizer, lime, or soil amendments, 2909
as appropriate, in sufficient quantity and depth to raise and 2910
maintain a diverse growth of vegetation adequate to bind the soil 2911
and control soil erosion and sedimentation;2912

       (e) Establish a diverse vegetative cover of grass and legumes 2913
or trees, grasses, and legumes capable of self-regeneration and 2914
plant succession wherever required by the plan;2915

       (f) Remove or bury any metal, lumber, equipment, or other 2916
refuse resulting from mining, and remove or bury any unwanted or 2917
useless structures;2918

       (g) Reestablish boundary, section corner, government, and 2919
other survey monuments that were removed by the operator;2920

       (h) During mining and reclamation, ensure that contamination, 2921
resulting from mining, of underground water supplies is prevented. 2922
Upon completion of reclamation, ensure that any watercourse, lake, 2923
or pond located within the site boundaries is free of substances 2924
resulting from mining in amounts or concentrations that are 2925
harmful to persons, fish, waterfowl, or other beneficial species 2926
of aquatic life.2927

       (i) During mining and reclamation, control drainage so as to 2928
prevent the causing of flooding, landslides, and flood hazards to 2929
adjoining lands resulting from the mining operation. Leave any 2930
ponds in such condition as to avoid their constituting a hazard to 2931
adjoining lands.2932

       (j) During mining and reclamation, ensure that the effect of 2933
any reduction of the quantity of ground water is minimized;2934

       (k) Ensure that mining and reclamation are carried out in the 2935
sequence and manner set forth in the plan and that reclamation 2936
measures are performed in a timely manner. All reclamation of an 2937
area of land affected shall be completed no later than three years 2938
following the mining of the area unless the operator makes a 2939
showing satisfactory to the chief that the future use of the area 2940
requires a longer period for completing reclamation.2941

       (l) During mining, store topsoil or fill in quantities 2942
sufficient to complete the backfilling, grading, contouring, 2943
terracing, and resoiling that are specified in the plan. Stabilize 2944
the slopes of and plant each spoil bank to control soil erosion 2945
and sedimentation wherever substantial damage to adjoining 2946
property might occur.2947

       (m) During mining, promptly remove, store, or cover any coal, 2948
pyritic shale, or other acid producing materials in a manner that 2949
will minimize acid drainage and the accumulation of acid water;2950

       (n) During mining, detonate explosives in a manner that will 2951
prevent damage to adjoining property;2952

       (o) In the case of in-stream mining, do all of the following:2953

       (i) Limit access to the channel of a watercourse to a single 2954
point of entry on one bank of the watercourse;2955

       (ii) Maintain riparian vegetation to the fullest extent 2956
possible;2957

       (iii) Upon cessation of in-stream mining, stabilize and 2958
reclaim to the pre-mined condition the banks of a watercourse 2959
affected by in-stream mining.2960

       (11) For any applicant, except an applicant for an in-stream 2961
mining permit, who intends to extract less than ten thousand tons 2962
of minerals per year and no incidental coal, a current tax map, in 2963
triplicate and notarized, and the appropriate United States 2964
geological survey seven and one-half minute topographic map. Each 2965
copy shall bear the applicant's name and shall identify the area 2966
of land to be affected corresponding to the application.2967

       (12) For any applicant for a surface mining permit who 2968
intends to extract ten thousand tons of minerals or more per year 2969
or who intends to extract any incidental coal irrespective of the 2970
tonnage of minerals intended to be mined, a map, in triplicate, on 2971
a scale of not more than four hundred feet to the inch, or three 2972
copies of an enlarged United States geological survey topographic 2973
map on a scale of not more than four hundred feet to the inch. 2974
Each application for an in-stream mining permit shall include such 2975
a map regardless of the tons of minerals that the applicant 2976
intends to extract.2977

       The map shall comply with all of the following:2978

       (a) Be prepared and certified by a professional engineer or 2979
surveyor registered under Chapter 4733. of the Revised Code;2980

       (b) Identify the area of land to be affected corresponding to 2981
the application;2982

       (c) Show the probable limits of subjacent and adjacent deep, 2983
strip, surface, or in-stream mining operations, whether active, 2984
inactive, or mined out;2985

       (d) Show the boundaries of the area of land to be affected 2986
during the period of the permit and the area of land estimated to 2987
be affected during the first year of operation, and name the 2988
surface and mineral owners of record of the area and the owners of 2989
record of adjoining surface properties;2990

       (e) Show the names and locations of all streams, creeks, or 2991
other bodies of water, roads, railroads, utility lines, buildings, 2992
cemeteries, and oil and gas wells on the area of land to be 2993
affected and within five hundred feet of the perimeter of the 2994
area;2995

       (f) Show the counties, municipal corporations, townships, and 2996
sections in which the area of land to be affected is located;2997

       (g) Show the drainage plan on, above, below, and away from 2998
the area of land to be affected, indicating the directional flow 2999
of water, constructed drainways, natural waterways used for 3000
drainage, and the streams or tributaries receiving or to receive 3001
this discharge;3002

       (h) Show the location of available test boring holes that the 3003
operator has conducted on the area of land to be affected or 3004
otherwise has readily available;3005

       (i) Show the date on which the map was prepared, the north 3006
direction and the quadrangle sketch, and the exact location of the 3007
operation;3008

       (j) Show the type, kind, location, and references of all 3009
existing boundary, section corner, government, and other survey 3010
monuments within the area to be affected and within five hundred 3011
feet of the perimeter of the area.3012

       The certification of the maps shall read: "I, the 3013
undersigned, hereby certify that this map is correct, and shows to 3014
the best of my knowledge and belief all of the information 3015
required by the surface or in-stream mining laws, as applicable, 3016
of the state." The certification shall be signed and attested 3017
before a notary public. The chief may reject any map as incomplete 3018
if its accuracy is not so certified and attested.3019

       (13) A certificate of public liability insurance issued by an 3020
insurance company authorized to do business in this state or 3021
obtained pursuant to sections 3905.30 to 3905.35 of the Revised 3022
Code covering all surface or in-stream mining operations of the 3023
applicant in this state and affording bodily injury and property 3024
damage protection in amounts not less than the following:3025

       (a) One hundred thousand dollars for all damages because of 3026
bodily injury sustained by one person as the result of any one 3027
occurrence, and three hundred thousand dollars for all damages 3028
because of bodily injury sustained by two or more persons as the 3029
result of any one occurrence;3030

       (b) One hundred thousand dollars for all claims arising out 3031
of damage to property as the result of any one occurrence, with an 3032
aggregate limit of three hundred thousand dollars for all property 3033
damage to which the policy applies.3034

       (14) A sworn statement by the applicant that, during the term 3035
of any permit issued under this chapter or of any renewal of such 3036
a permit, the applicant will comply with all applicable zoning 3037
resolutions or ordinances that are in effect at the time the 3038
application is filed unless the resolutions or ordinances 3039
subsequently become invalid during the term of the permit or 3040
renewal;3041

       (15) A copy of the advertisement that the applicant is 3042
required to have published in accordance with section 1514.022 of 3043
the Revised Code, if applicable;3044

       (16) For any applicant whose operation may result in 3045
dewatering, a compilation of data in a form that is prescribed by 3046
the chief and that is suitable to conduct ground water modeling in 3047
order to establish a projected cone of depression for purposes of 3048
section 1514.13 of the Revised Code. The chief shall adopt rules 3049
as provided in section 1514.08 of the Revised Code establishing 3050
the minimum requirements and standards governing the data required 3051
under this division.3052

       (17) A statement by the applicant certifying that the 3053
applicant has communicated with the county engineer of the county 3054
in which the proposed surface or in-stream mining operation will 3055
be located regarding any streets and roads under the county 3056
engineer's jurisdiction that will be used by vehicles entering and 3057
leaving the proposed surface or in-stream mining operation;3058

       (18) In the case of an application for an in-stream mining 3059
permit, and if required by the division of mineral resources 3060
management after review of an applicant's proposed in-stream 3061
mining plans, a hydraulic evaluation of the watercourse prepared 3062
by a professional engineer registered under Chapter 4733. of the 3063
Revised Code. TheIf the hydraulic evaluation is required, it3064
shall include, without limitation, all of the following:3065

       (a) Soundings that depict the cross-sectional views of the 3066
channel bottom of the watercourse and water elevations for the 3067
watercourse;3068

       (b) A profile of the channel bottom;3069

       (c) An analysis of design flows and water surface profiles 3070
for the watercourse prior to in-stream mining and the proposed 3071
final mining condition;3072

       (d) An analysis of the expected changes in the roughness 3073
coefficient, resistance to water flow velocity, and hydraulic 3074
gradient in the channel bottom due to the proposed mining;3075

       (e) Any additional information that the chief requires in 3076
order to evaluate the potential impact of in-stream mining on the 3077
watercourse and to determine if any additional performance 3078
standards are required to protect the environment and property 3079
outside the limits of the operation as established in the permit.3080

       The chief may allow an applicant to deviate from the 3081
requirements of divisions (A)(18)(a) to (d) of this section if the 3082
chief determines that such a deviation is appropriate.3083

       (B) No permit application or amendment shall be approved by 3084
the chief if the chief finds that the reclamation described in the 3085
application will not be performed in full compliance with this 3086
chapter or that there is not reasonable cause to believe that 3087
reclamation as required by this chapter will be accomplished.3088

       The chief shall issue an order denying an application for an 3089
operating permit or an amendment if the chief determines that the 3090
measures set forth in the plan are likely to be inadequate to 3091
prevent damage to adjoining property or to achieve one or more of 3092
the performance standards required in division (A)(10) of this 3093
section.3094

       No permit application or amendment shall be approved if the 3095
approval would result in a violation of division (E), (F), or (G) 3096
of section 1514.10 of the Revised Code.3097

       No permit application or amendment shall be approved to 3098
surface mine land adjacent to a public road in violation of 3099
section 1563.11 of the Revised Code.3100

       To ensure adequate lateral support, no permit application or 3101
amendment shall be approved to engage in surface or in-stream 3102
mining on land that is closer than fifty feet of horizontal 3103
distance to any adjacent land or waters in which the operator 3104
making application does not own the surface or mineral rights 3105
unless the owners of the surface and mineral rights in and under 3106
the adjacent land or waters consent in writing to surface or 3107
in-stream mining closer than fifty feet of horizontal distance. 3108
The consent, or a certified copy thereof, shall be attached to the 3109
application as a part of the permanent record of the application 3110
for a surface or in-stream mining permit.3111

       The chief shall issue an order granting a permit upon the 3112
chief's approval of an application, as required by this section, 3113
filing of the performance bond required by section 1514.04 of the 3114
Revised Code, payment of an acreage fee in the amount of 3115
seventy-five dollars multiplied by the number of acres estimated 3116
in the application that will comprise the area of land to be 3117
affected within the first year of operation under the permit, and 3118
payment of a permit fee. The amount of the permit fee for a 3119
surface mining permit shall be five hundred dollars, and the 3120
amount of the permit fee for an in-stream mining permit shall be 3121
two hundred fifty dollars.3122

       The chief may issue an order denying a permit if the chief 3123
finds that the applicant, any partner if the applicant is a 3124
partnership, any officer or director if the applicant is a 3125
corporation, or any other person who has a right to control or in 3126
fact controls the management of the applicant or the selection of 3127
officers, directors, or managers of the applicant has 3128
substantially or materially failed to comply or continues to fail 3129
to comply with this chapter, which failure may consist of one or 3130
more violations thereof, a rule adopted thereunder, or an order of 3131
the chief or failure to perform reclamation as required by this 3132
chapter. The chief may deny or revoke the permit of any person who 3133
so violates or fails to comply or who purposely misrepresents or 3134
omits any material fact in the application for the permit or an 3135
amendment to a permit.3136

       If the chief denies the permit, the chief shall state the 3137
reasons for denial in the order denying the permit.3138

       Each permit shall be issued upon condition that the operator 3139
will comply with this chapter and perform the measures set forth 3140
in the operator's plan of mining and reclamation in a timely 3141
manner. The chief, mineral resources inspectors, or other 3142
authorized representatives of the chief may enter upon the 3143
premises of the operator at reasonable times for the purposes of 3144
determining whether or not there is compliance with this chapter.3145

       (C) If the chief approves an application for a surface mining 3146
permit, the order granting the permit shall authorize the person 3147
to whom the permit is issued to engage as the operator of a 3148
surface mining operation upon the land described in the permit 3149
during a period that shall expire fifteen years after the date of 3150
issuance of the permit, or upon the date when the chief, after 3151
inspection, orders the release of any remaining performance bond 3152
deposited to assure satisfactory performance of the reclamation 3153
measures required pursuant to this chapter, whichever occurs 3154
earlier.3155

       If the chief approves an application for an in-stream mining 3156
permit, the order granting the permit shall authorize the person 3157
to whom the permit is issued to engage as the operator of an 3158
in-stream mining operation on the land described in the permit 3159
during a period that shall expire twofive years after the date of 3160
issuance of the permit, or on the date when the chief, after 3161
inspection, orders the release of any remaining bond, cash, 3162
irrevocable letters of credit, or certificates of deposit that 3163
were deposited to ensure satisfactory performance of the 3164
reclamation measures required under this chapter, whichever occurs 3165
earlier.3166

       (D) Before an operator engages in a surface or in-stream 3167
mining operation on land not described in the operator's permit, 3168
but that is contiguous to the land described in the operator's 3169
permit, the operator shall file with the chief an application for 3170
an amendment to the operator's permit. Before approving an 3171
amendment, the chief shall require the information, maps, fees, 3172
and amount, except as otherwise provided by rule, of the 3173
performance bond as required for an original application under 3174
this section and shall apply the same prohibitions and 3175
restrictions applicable to land described in an original 3176
application for a permit. An applicant for a significant amendment 3177
to a permit, as "significant" is defined by rule, shall include a 3178
copy of the advertisement that the applicant is required to have 3179
published in accordance with section 1514.022 of the Revised Code. 3180
If the chief disapproves the amendment, the chief shall state the 3181
reasons for disapproval in the order disapproving the amendment. 3182
Upon the approval of an amendment by the chief, the operator shall 3183
be authorized to engage in surface mining on the land or in-stream 3184
mining in the watercourse described in the operator's original 3185
permit plus the land or area of the watercourse described in the 3186
amendment until the date when the permit expires, or when the 3187
chief, after inspection, orders the release of any remaining 3188
performance bond deposited to assure satisfactory performance of 3189
the reclamation measures required pursuant to this chapter, 3190
whichever occurs earlier.3191

       (E) An operator, at any time and upon application therefor 3192
and approval by the chief, may amend the plan of mining and 3193
reclamation filed with the application for a permit in order to 3194
change the reclamation measures to be performed, modify the 3195
interval after mining within which reclamation measures will be 3196
performed, change the sequence in which mining or reclamation will 3197
occur at specific locations within the area affected, mine acreage 3198
previously mined or reclaimed, or for any other purpose, provided 3199
that the plan, as amended, includes measures that the chief 3200
determines will be adequate to prevent damage to adjoining 3201
property and to achieve the performance standards set forth in 3202
division (A)(10) of this section. An application for a significant 3203
amendment to a plan, as "significant" is defined by rule, shall 3204
include a copy of the advertisement that the applicant is required 3205
to have published in accordance with section 1514.022 of the 3206
Revised Code.3207

       The chief may propose one or more amendments to the plan in 3208
writing within ninety days after the fifth anniversary of the date 3209
of issuance of a surface mining permit or within ninety days after 3210
the first anniversary of the date of issuance of an in-stream 3211
mining permit. The chief's proposal may be made upon a finding of 3212
any of the following conditions after a complete review of the 3213
plan and inspection of the area of land affected, and the plan 3214
shall be so amended upon written concurrence in the findings and 3215
approval of the amendments by the operator:3216

       (1) An alternate measure, in lieu of one previously approved 3217
in the plan, will more economically or effectively achieve one or 3218
more of the performance standards.3219

       (2) Developments in reclamation technology make an alternate 3220
measure to achieve one or more of the performance standards more 3221
economical, feasible, practical, or effective.3222

       (3) Changes in the use or development of adjoining lands 3223
require changes in the intended future uses of the area of land 3224
affected in order to prevent damage to adjoining property.3225

       (F) The holder of a surface or in-stream mining permit who 3226
desires to transfer the rights granted under the permit to another 3227
person at any time during the term of the permit or its renewal 3228
shall file with the chief an application for the transfer of the 3229
permit. The chief shall issue an order approving or disapproving 3230
the transfer of the permit in accordance with criteria and 3231
procedures established by rule.3232

       Sec. 1514.021.  (A) A permit holder who wishes to continue 3233
surface or in-stream mining operations after the expiration date 3234
of the existing permit or renewal permit shall file with the chief 3235
of the division of mineral resources management an applicationa 3236
notice of intent to renew for purposes of the renewal of a surface 3237
or in-stream mining permit or renewal permit at least ninety days 3238
before the expiration date of the existing permit or renewal 3239
permit. The applicationnotice of intent to renew shall be upon 3240
theon a form that the chief prescribes and provides and shall be 3241
accompanied by a permit renewal fee. The amount of the fee for 3242
renewal of a surface mining permit or renewal permit shall be one 3243
thousand dollars, and the amount of the fee for renewal of an 3244
in-stream mining permit or renewal permit shall be five hundred 3245
dollars.3246

       (B) Upon receipt of an application for renewala notice of 3247
intent to renew form and the permit renewal fee under division (A) 3248
of this section, the chief shall notify the applicantpermit 3249
holder to submit a renewal application package. The permit holder 3250
shall submit a complete renewal package to the chief at least 3251
thirty days prior to the expiration of the existing surface or 3252
in-stream mining permit or renewal permit. The renewal application 3253
package shall include all of the following:3254

       (1) A map that is a composite of the information required to 3255
be contained in the most recent annual report map under section 3256
1514.03 of the Revised Code and of all surface or in-stream mining 3257
and reclamation activities conducted under the existing permit or 3258
renewal permit; the3259

       (2) The annual report required under section 1514.03 of the 3260
Revised Code; in3261

       (3) In the case of an applicant proposing a significant 3262
change to the plan of mining and reclamation, as "significant" is 3263
defined by rule, a copy of the advertisement that the applicant is 3264
required to havebe published in accordance with section 1514.022 3265
of the Revised Code; and additional3266

       (4) Additional maps, plans, and revised or updated 3267
information that the chief determines to be necessary for permit 3268
renewal. Within sixty days after receipt of this notification, the 3269
applicant shall submit all the required information to the chief.3270

       For a renewal permit requiring minor or minimal updates to 3271
the existing permit, renewal permit, or accompanying information, 3272
the chief may authorize a permit holder to file updated 3273
information through a surface mining permit modification process 3274
using a surface mining permit modification form. However, the 3275
chief may require such a permit holder to submit a complete 3276
renewal application package.3277

       (C)(1) Upon receipt of the informationcomplete renewal 3278
application package required under division (B) of this section 3279
and except as otherwise provided in division (C)(2) of this 3280
section, the chief shall approve the application for renewal and 3281
issue an order granting a renewal permit unless the chief finds 3282
that any of the following applies:3283

       (a) The permit holder's operation is not in substantial or 3284
material compliance with this chapter, rules adopted and orders 3285
issued under it, and the plan of mining and reclamation under the 3286
existing permit or renewal permit.3287

       (b) The permit holder has not provided evidence that a 3288
performance bond filed under section 1514.04 of the Revised Code 3289
applicable to lands affected under the existing permit or renewal 3290
permit will remain effective until released under section 1514.05 3291
of the Revised Code.3292

       (c) The permit holder, any partner if the applicantpermit 3293
holder is a partnership, any officer or director if the applicant3294
permit holder is a corporation, or any other person who has a 3295
right to control or in fact controls the management of the 3296
applicantpermit holder or the selection of officers, directors, 3297
or managers of the applicantpermit holder has failed 3298
substantially or materially to comply or continues to fail to 3299
comply with this chapter as provided in section 1514.02 of the 3300
Revised Code.3301

       (2) If the application for renewal proposes significant 3302
changes to the plan of mining and reclamation, as "significant" is 3303
defined by rule, the chief may, but is not required to, approve 3304
the application for renewal.3305

       (D) Within sixty days after receiving the information and 3306
permit renewal fees required under divisions (A) and (B) of this 3307
section, the chief shall approve the application for renewal and 3308
issue an order granting a renewal permit, issue an order denying 3309
the application, or notify the applicant that the time limit for 3310
issuing such an order has been extended. This extension of time 3311
shall not exceed sixty days(1) After receiving a complete renewal 3312
application package and permit renewal fees required under 3313
divisions (A) and (B) of this section, the chief shall do one of 3314
the following:3315

       (a) Approve the application for renewal and issue an order 3316
granting a renewal permit;3317

       (b) Issue an order denying a renewal permit;3318

       (c) Notify the applicant in accordance with division (D)(2) 3319
of this section that there are deficiencies in the renewal 3320
application package and that an extension of the time limit for 3321
issuing an order approving or disapproving the renewal permit has 3322
been granted.3323

       In making a decision regarding a renewal application package, 3324
the chief shall review the package for compliance with this 3325
chapter and rules adopted under it.3326

       (2) The chief shall notify a permit holder and, if 3327
applicable, the permit holder's consultant, surveyor, or engineer 3328
of deficiencies or errors in a renewal application package and 3329
shall include in the notification a discussion of the deficiencies 3330
or errors.3331

       A permit holder shall have up to one hundred eighty days 3332
after the expiration of the permit holder's permit or renewal 3333
permit to submit a revised renewal application package. A permit 3334
holder may request, in writing, an extension of the one 3335
hundred-eighty-day period for revisions to the renewal application 3336
package. The chief may approve a sixty-day extension. The chief 3337
shall notify the permit holder of the chief's decision to either 3338
grant or deny the extension.3339

       Upon the submission of a revised renewal application package 3340
that is determined to be complete by the chief, the chief shall 3341
proceed to approve or deny the application in accordance with 3342
division (D)(1)(a) or (b) of this section. If the revised renewal 3343
application package is not submitted within one hundred eighty 3344
days after the permit expiration date or, if an extension has been 3345
granted, within two hundred forty days after the permit expiration 3346
date, the chief shall issue an order denying the renewal permit in 3347
accordance with division (D)(1)(b) of this section.3348

       (E) If an applicant for a renewal permit has complied with 3349
division (A) of this section, the applicant may continue surface 3350
or in-stream mining operations under the existing permit or 3351
renewal permit after its expiration date until the sixty-daytime3352
period for filing the information required by the chief under 3353
division (B) of this sectiona complete renewal application 3354
package has expired under division (D) of this section or until 3355
the chief issues an order under division (D) of this section3356
denying the renewal permit.3357

       (F) A permit holder who fails to submit an applicationa 3358
notice of intent to renew form and required permit renewal fees 3359
within the time prescribed by division (A) of this section and a 3360
renewal application package under division (B) of this section3361
shall cease surface or in-stream mining operations on the 3362
expiration date of the existing permit or renewal permit. If such 3363
a permit holder then submits a notice of intent to renew form, an 3364
application for renewal, and the permit renewal fees otherwise 3365
required by division (A) of this section on or before the 3366
thirtieth day after the expiration date of the expired permit or 3367
renewal permit and provides the information required by the chief 3368
under division (B) of this section within sixty days after being 3369
notified of the information required under that divisionthe 3370
permit expiration date, the permit holder need not submit the 3371
final map and report required by section 1514.03 of the Revised 3372
Code until the later of thirty days after the chief issues an 3373
order denying the application for renewal or thirty days after the 3374
chief's order is affirmed upon appeal under section 1513.13 or 3375
1513.14 of the Revised Code. An applicant under this division who 3376
fails to provide the information required by the chief under 3377
division (B) of this section within the prescribed time period 3378
shall submit the final map and report required by section 1514.03 3379
of the Revised Code within thirty days after the expiration of 3380
that prescribed period.3381

       (G) If the chief issues an order denying an application for 3382
renewal of a permit or renewal permit after the expiration date of 3383
the permit, the permit holder shall cease surface or in-stream 3384
mining operations immediately and, within thirty days after the 3385
issuance of the order, shall submit the final report and map 3386
required under section 1514.03 of the Revised Code. The chief 3387
shall state the reasons for denial in the order denying renewal of 3388
the applicationpermit. An applicantA permit holder may appeal 3389
the chief's order denying the renewal under section 1513.13 of the 3390
Revised Code and may continue surface or in-stream mining and 3391
reclamation operations under the expired permit until the 3392
reclamation commission affirms the chief's order under that 3393
section and, if the applicant elects to appeal the order of the 3394
commission under section 1513.14 of the Revised Code, until the 3395
court of appeals affirms the order.3396

       (H) The approval of an application for renewal under this 3397
section authorizes the continuation of an existing surface mining 3398
permit or renewal permit for a term of fifteen years from the 3399
expiration date of the existing permit.3400

       The approval of an application for renewal under this section 3401
authorizes the continuation of an existing in-stream mining permit 3402
or renewal permit for a term of twofive years from the expiration 3403
date of the existing permit.3404

       (I) Any renewal permit is subject to all the requirements of 3405
this chapter and rules adopted under it.3406

       Sec. 1514.03.  Within thirty days after each anniversary date 3407
of issuance of a surface or in-stream mining permit, the operator 3408
shall file with the chief of the division of mineral resources 3409
management an annual report, on a form prescribed and furnished by 3410
the chief, that, for the period covered by the report, shall state 3411
the amount of and identify the types of minerals and coal, if any 3412
coal, produced and shall state the number of acres affected and 3413
the number of acres estimated to be affected during the next year 3414
of operation. An annual report is not required to be filed if a 3415
final report is filed in lieu thereof.3416

       Each annual report for a surface mining operation shall 3417
include a progress map indicating the location of areas of land 3418
affected during the period of the report and the location of the 3419
area of land estimated to be affected during the next year. The 3420
map shall be prepared in accordance with division (A)(11) or (12) 3421
of section 1514.02 of the Revised Code, as appropriate, except 3422
that a map prepared in accordance with division (A)(12) of that 3423
section may be certified by the operator or authorized agent of 3424
the operator in lieu of certification by a professional engineer 3425
or surveyor registered under Chapter 4733. of the Revised Code. 3426
However, the chief may require that an annual progress map or a 3427
final map be prepared by a registered professional engineer or 3428
registered surveyor if the chief has reason to believe that the 3429
operator exceeded the boundaries of the permit area or, if the 3430
operator filed the map required under division (A)(11) of section 3431
1514.02 of the Revised Code, that the operator extracted ten 3432
thousand tons or more of minerals during the period covered by the 3433
report.3434

       Each annual report for an in-stream mining operation shall 3435
include a statement of the total tonnage removed by in-stream 3436
mining for each month and of the surface acreage and depth of 3437
material removed by in-stream mining and shall include a map that 3438
identifies the area affected by the in-stream mining if the 3439
in-stream mining for the year addressed by the report occurred 3440
beyond the area identified in the most recent approved map, 3441
soundings that depict the cross-sectional views of the channel 3442
bottom of the watercourse if the soundings depict a 3443
cross-sectional view of the channel bottom that is different from 3444
the most recent approved map, and water elevations for the 3445
watercourse if water elevations are different from those indicated 3446
on the most recent approved map.3447

       Each annual report shall be accompanied by a filing fee in 3448
the amount of five hundred dollars, except in the case of an 3449
annual report filed by a small operator or an in-stream mining 3450
operator. A small operator, which is a surface mine operator who 3451
intends to extract fewer than ten thousand tons of minerals and no 3452
coal during the next year of operation under the permit, or an 3453
in-stream mining operator shall include a filing fee in the amount 3454
of two hundred fifty dollars with each annual report. The annual 3455
report of any operator also shall be accompanied by an acreage fee 3456
in the amount of seventy-five dollars multiplied by the number of 3457
acres estimated in the report to be affected during the next year 3458
of operation under the permit. The acreage fee shall be adjusted 3459
by subtracting a credit of seventy-five dollars per excess acre 3460
paid for the preceding year if the acreage paid for the preceding 3461
year exceeds the acreage actually affected or by adding an 3462
additional amount of seventy-five dollars per excess acre affected 3463
if the acreage actually affected exceeds the acreage paid for the 3464
preceding year.3465

       With each annual report the operator shall file a performance 3466
bond in the amount, unless otherwise provided by rule, of five 3467
hundred dollars multiplied by the number of acres estimated to be 3468
affected during the next year of operation under the permit for 3469
which no performance bond previously was filed. Unless otherwise 3470
provided by rule, the bond shall be adjusted by subtracting a 3471
credit of five hundred dollars per excess acre for which bond was 3472
filed for the preceding year if the acreage for which the bond was 3473
filed for the preceding year exceeds the acreage actually 3474
affected, or by adding an amount of five hundred dollars per 3475
excess acre affected if the acreage actually affected exceeds the 3476
acreage for which bond was filed for the preceding year.3477

       Within thirty days after the expiration of the surface or 3478
in-stream mining permit, or completion or abandonment of the 3479
operation, whichever occurs earlier, the operator shall submit a 3480
final report containing the same information required in an annual 3481
report, but covering the time from the last annual report to the 3482
expiration of the permit, or completion or abandonment of the 3483
operation, whichever occurs earlier.3484

       Each final report shall include a map indicating the location 3485
of the area of land affected during the period of the report and 3486
the location of the total area of land affected under the permit. 3487
The map shall be prepared in accordance with division (A)(11) or 3488
(12) of section 1514.02 of the Revised Code, as appropriate.3489

       In the case of a final report for an in-stream mining 3490
operation, the map also shall include the information required 3491
under division (A)(18) of section 1514.02 of the Revised Code, as 3492
applicable.3493

       If the final report and certified map, as verified by the 3494
chief, show that the number of acres affected under the permit is 3495
larger than the number of acres for which the operator has paid an 3496
acreage fee or filed a performance bond, upon notification by the 3497
chief, the operator shall pay an additional acreage fee in the 3498
amount of seventy-five dollars multiplied by the difference 3499
between the number of acres affected under the permit and the 3500
number of acres for which the operator has paid an acreage fee and 3501
shall file an additional performance bond in the amount, unless 3502
otherwise provided by rule, of five hundred dollars multiplied by 3503
the difference between the number of acres affected under the 3504
permit and the number of acres for which the operator has filed 3505
bond.3506

       If the final report and certified map, as verified by the 3507
chief, show that the number of acres affected under the permit is 3508
smaller than the number of acres for which the operator has filed 3509
a performance bond, the chief shall order release of the excess 3510
bond. However, the chief shall retain a performance bond in a 3511
minimum amount of ten thousand dollars irrespective of the number 3512
of acres affected under the permit. The release of the excess bond 3513
shall be in an amount, unless otherwise provided by rule, equal to 3514
five hundred dollars multiplied by the difference between the 3515
number of acres affected under the permit and the number of acres 3516
for which the operator has filed bond.3517

       The fees collected pursuant to this section and section 3518
1514.02 of the Revised Code shall be deposited with the treasurer 3519
of state to the credit of the surface mining fund created under 3520
section 1514.06 of the Revised Code.3521

       If upon inspection the chief finds that any filing fee, 3522
acreage fee, performance bond, or part thereof is not paid when 3523
due or is paid on the basis of false or substantially inaccurate 3524
reports, the chief may request the attorney general to recover the 3525
unpaid amounts that are due the state, and the attorney general 3526
shall commence appropriate legal proceedings to recover the unpaid 3527
amounts.3528

       Sec. 1514.05.  (A) At any time within the period allowed an 3529
operator by section 1514.02 of the Revised Code to reclaim an area 3530
of land affected by surface or in-stream mining, the operator may 3531
file a request, on a form provided by the chief of the division of 3532
mineral resources management, for inspection of the area of land 3533
upon which the reclamation, other than any required planting, is 3534
completed. The request shall include all of the following:3535

       (1) The location of the area and number of acres;3536

       (2) The permit number;3537

       (3) A map showing the location of the acres reclaimed, 3538
prepared and certified in accordance with division (A)(11) or (12) 3539
of section 1514.02 of the Revised Code, as appropriate. In the 3540
case of an in-stream mining operation, the map also shall include, 3541
as applicable, the information required under division (A)(18) of 3542
section 1514.02 of the Revised Code.3543

        The chief shall make an inspection and evaluation of the 3544
reclamation of the area of land for which the request was 3545
submitted within ninety days after receipt of the request or, if 3546
the operator fails to complete the reclamation or file the request 3547
as required, as soon as the chief learns of the default. 3548
Thereupon, if the chief approves the reclamation, other than any 3549
required planting, as meeting the requirements of this chapter, 3550
rules adopted thereunder, any orders issued during the mining or 3551
reclamation, and the specifications of the plan for mining and 3552
reclaiming, the chief shall issue an order to the operator and the 3553
operator's surety releasing them from liability for one-half of 3554
the total amount of their surety bond on deposit to ensure 3555
reclamation for the area upon which reclamation is completed. If 3556
the operator has deposited cash, an irrevocable letter of credit, 3557
or certificates of deposit in lieu of a surety bond to ensure 3558
reclamation, the chief shall issue an order to the operator 3559
releasing one-half of the amount so held and promptly shall 3560
transmit a certified copy of the order to the treasurer of state. 3561
Upon presentation of the order to the treasurer of state by the 3562
operator to whom it was issued, or by the operator's authorized 3563
agent, the treasurer of state shall deliver to the operator or the 3564
operator's authorized agent the cash, irrevocable letter of 3565
credit, or certificates of deposit designated in the order.3566

        If the chief does not approve the reclamation, other than any 3567
required planting, the chief shall notify the operator by 3568
certified mail. The notice shall be an order stating the reasons 3569
for unacceptability, ordering further actions to be taken, and 3570
setting a time limit for compliance. If the operator does not 3571
comply with the order within the time limit specified, the chief 3572
may order an extension of time for compliance after determining 3573
that the operator's noncompliance is for good cause, resulting 3574
from developments partially or wholly beyond the operator's 3575
control. If the operator complies within the time limit or the 3576
extension of time granted for compliance, the chief shall order 3577
release of the performance bond in the same manner as in the case 3578
of approval of reclamation, other than any required planting, by 3579
the chief, and the treasurer of state shall proceed as in that 3580
case. If the operator does not comply within the time limit and 3581
the chief does not order an extension, or if the chief orders an 3582
extension of time and the operator does not comply within the 3583
extension of time granted for compliance, the chief shall issue 3584
another order declaring that the operator has failed to reclaim 3585
and, if the operator's permit has not already expired or been 3586
revoked, revoking the operator's permit. The chief shall thereupon 3587
proceed under division (C) of this section.3588

       (B) At any time within the period allowed an operator by 3589
section 1514.02 of the Revised Code to reclaim an area affected by 3590
surface mining, the operator may file a request, on a form 3591
provided by the chief, for inspection of the area of land on which 3592
all reclamation, including the successful establishment of any 3593
required planting, is completed. The request shall include all of 3594
the following:3595

       (1) The location of the area and number of acres;3596

       (2) The permit number;3597

       (3) The type and date of any required planting of vegetative 3598
cover and the degree of success of growth;3599

       (4) A map showing the location of the acres reclaimed, 3600
prepared and certified in accordance with division (A)(11) or (12) 3601
of section 1514.02 of the Revised Code, as appropriate. In the 3602
case of an in-stream mining operation, the map also shall include 3603
the information required under division (A)(18) of section 1514.02 3604
of the Revised Code.3605

       The chief shall make an inspection and evaluation of the 3606
reclamation of the area of land for which the request was 3607
submitted within ninety days after receipt of the request or, if 3608
the operator fails to complete the reclamation or file the request 3609
as required, as soon as the chief learns of the default. 3610
Thereupon, if the chief finds that the reclamation meets the 3611
requirements of this chapter, rules adopted under it, any orders 3612
issued during the mining and reclamation, and the specifications 3613
of the plan for mining and reclaiming and decides to release any 3614
remaining performance bond on deposit to ensure reclamation of the 3615
area on which reclamation is completed, within ten days of 3616
completing the inspection and evaluation, the chief shall order 3617
release of the remaining performance bond in the same manner as in 3618
the case of approval of reclamation other than required planting, 3619
and the treasurer of state shall proceed as in that case.3620

       If the chief does not approve the reclamation performed by 3621
the operator, the chief shall notify the operator by certified 3622
mail within ninety days of the filing of the application for 3623
inspection or of the date when the chief learns of the default. 3624
The notice shall be an order stating the reasons for 3625
unacceptability, ordering further actions to be taken, and setting 3626
a time limit for compliance. If the operator does not comply with 3627
the order within the time limit specified, the chief may order an 3628
extension of time for compliance after determining that the 3629
operator's noncompliance is for good cause, resulting from 3630
developments partially or wholly beyond the operator's control. If 3631
the operator complies within the time limit or the extension of 3632
time granted for compliance, the chief shall order release of the 3633
remaining performance bond in the same manner as in the case of 3634
approval of reclamation by the chief, and the treasurer of state 3635
shall proceed as in that case. If the operator does not comply 3636
within the time limit and the chief does not order an extension, 3637
or if the chief orders an extension of time and the operator does 3638
not comply within the extension of time granted for compliance, 3639
the chief shall issue another order declaring that the operator 3640
has failed to reclaim and, if the operator's permit has not 3641
already expired or been revoked, revoking the operator's permit. 3642
The chief then shall proceed under division (C) of this section.3643

       (C) Upon issuing an order under division (A) or (B) of this 3644
section declaring that the operator has failed to reclaim, the 3645
chief shall make a finding as to the number and location of the 3646
acres of land that the operator has failed to reclaim in the 3647
manner required by this chapter. The chief shall order the release 3648
of the performance bond in the amount of five hundred dollars per 3649
acre for those acres that the chief finds to have been reclaimed 3650
in the manner required by this chapter. The release shall be 3651
ordered in the same manner as in the case of other approval of 3652
reclamation by the chief, and the treasurer of state shall proceed 3653
as in that case. If the operator has on deposit cash, an 3654
irrevocable letter of credit, or certificates of deposit to ensure 3655
reclamation of the area of the land affected, the chief at the 3656
same time shall issue an order declaring that the remaining cash, 3657
irrevocable letter of credit, or certificates of deposit are the 3658
property of the state and are available for use by the chief in 3659
performing reclamation of the area and shall proceed in accordance 3660
with section 1514.06 of the Revised Code.3661

       If the operator has on deposit a surety bond to ensure 3662
reclamation of the area of land affected, the chief shall notify 3663
the surety in writing of the operator's default and shall request 3664
the surety to perform the surety's obligation and that of the 3665
operator. The surety, within ten days after receipt of the notice, 3666
shall notify the chief as to whether it intends to perform those 3667
obligations.3668

       If the surety chooses to perform, it shall arrange for work 3669
to begin within thirty days of the day on which it notifies the 3670
chief of its decision. If the surety completes the work as 3671
required by this chapter, the chief shall issue an order to the 3672
surety releasing the surety from liability under the bond in the 3673
same manner as if the surety were an operator proceeding under 3674
this section. If, after the surety begins the work, the chief 3675
determines that the surety is not carrying the work forward with 3676
reasonable progress, or that it is improperly performing the work, 3677
or that it has abandoned the work or otherwise failed to perform 3678
its obligation and that of the operator, the chief shall issue an 3679
order terminating the right of the surety to perform the work and 3680
demanding payment of the amount due as required by this chapter.3681

       If the surety chooses not to perform and so notifies the 3682
chief, does not respond to the chief's notice within ten days of 3683
receipt thereof, or fails to begin work within thirty days of the 3684
day it timely notifies the chief of its decision to perform its 3685
obligation and that of the operator, the chief shall issue an 3686
order terminating the right of the surety to perform the work and 3687
demanding payment of the amount due, as required by this chapter.3688

       Upon receipt of an order of the chief demanding payment of 3689
the amount due, the surety immediately shall deposit with the 3690
chief cash in the full amount due under the order for deposit with 3691
the treasurer of state. If the surety fails to make an immediate 3692
deposit, the chief shall certify it to the attorney general for 3693
collection. When the chief has issued an order terminating the 3694
right of the surety and has the cash on deposit, the cash is the 3695
property of the state and is available for use by the chief, who 3696
shall proceed in accordance with section 1514.06 of the Revised 3697
Code.3698

       Sec. 3706.27. (A) There is hereby created in the state 3699
treasury the advanced energy research and development fund to 3700
provide grants for advanced energy projects. There is hereby 3701
created in the state treasury the advanced energy research and 3702
development taxable fund to provide loans for advanced energy 3703
projects.3704

       (B)(1) The advanced energy research and development fund and 3705
the advanced energy research and development taxable fund shall 3706
consist of the proceeds of obligations issued under section 166.08 3707
of the Revised Code. Money shall be credited to the respective 3708
funds in the proportion that the executive director of the Ohio 3709
air quality development authority, with the affirmative vote of a 3710
majority of the members of the authority, determines appropriate.3711

       (2) Any investment earnings from the money in the advanced 3712
energy research and development fund and in the advanced energy 3713
research and development taxable fund shall be credited to those 3714
funds, respectively. Any repayment of loans made from money in the 3715
advanced energy research and development taxable fund shall be 3716
credited to the facilities establishmentalternative fuel 3717
transportation fund created in section 166.03122.075 of the 3718
Revised Code.3719

       (C) The director of budget and management shall establish and 3720
maintain records or accounts for or within these funds in such a 3721
manner as to show the amount credited to the funds pursuant to 3722
section 166.08 of the Revised Code and that the amounts so 3723
credited have been expended for the purposes set forth in Section 3724
2p or 13 of Article VIII, Ohio Constitution, and sections 166.08, 3725
166.30, and 3706.26 of the Revised Code.3726

       Sec. 4905.03.  As used in this chapter:3727

       (A) Any person, firm, copartnership, voluntary association, 3728
joint-stock association, company, or corporation, wherever 3729
organized or incorporated, is:3730

       (1) A telephone company, when engaged in the business of 3731
transmitting telephonic messages to, from, through, or in this 3732
state;3733

       (2) A motor transportation company, when engaged in the 3734
business of carrying and transporting persons or property or the 3735
business of providing or furnishing such transportation service, 3736
for hire, in or by motor-propelled vehicles of any kind, including 3737
trailers, for the public in general, over any public street, road, 3738
or highway in this state, except as provided in section 4921.02 of 3739
the Revised Code;3740

       (3) An electric light company, when engaged in the business 3741
of supplying electricity for light, heat, or power purposes to 3742
consumers within this state, including supplying electric 3743
transmission service for electricity delivered to consumers in 3744
this state, but excluding a regional transmission organization 3745
approved by the federal energy regulatory commission;3746

       (4) A gas company, when engaged in the business of supplying 3747
artificial gas for lighting, power, or heating purposes to 3748
consumers within this state or when engaged in the business of 3749
supplying artificial gas to gas companies or to natural gas 3750
companies within this state, but a producer engaged in supplying 3751
to one or more gas or natural gas companies, only such artificial 3752
gas as is manufactured by that producer as a by-product of some 3753
other process in which the producer is primarily engaged within 3754
this state is not thereby a gas company. All rates, rentals, 3755
tolls, schedules, charges of any kind, or agreements between any 3756
gas company and any other gas company or any natural gas company 3757
providing for the supplying of artificial gas and for compensation 3758
for the same are subject to the jurisdiction of the public 3759
utilities commission.3760

       (5) A natural gas company, when engaged in the business of 3761
supplying natural gas for lighting, power, or heating purposes to 3762
consumers within this state. Notwithstanding the above, neither 3763
the delivery nor sale of Ohio-produced natural gas or 3764
Ohio-produced raw natural gas liquids by a producer or gatherer 3765
under a public utilities commission-ordered exemption, adopted 3766
before, as to producers, or after, as to producers or gatherers, 3767
January 1, 1996, or the delivery or sale of Ohio-produced natural 3768
gas or Ohio-produced raw natural gas liquids by a producer or 3769
gatherer of Ohio-produced natural gas or Ohio-produced raw natural 3770
gas liquids, either to a lessor under an oil and gas lease of the 3771
land on which the producer's drilling unit is located, or the 3772
grantor incident to a right-of-way or easement to the producer or 3773
gatherer, shall cause the producer or gatherer to be a natural gas 3774
company for the purposes of this section.3775

       All rates, rentals, tolls, schedules, charges of any kind, or 3776
agreements between a natural gas company and other natural gas 3777
companies or gas companies providing for the supply of natural gas 3778
and for compensation for the same are subject to the jurisdiction 3779
of the public utilities commission. The commission, upon 3780
application made to it, may relieve any producer or gatherer of 3781
natural gas, defined in this section as a gas company or a natural 3782
gas company, of compliance with the obligations imposed by this 3783
chapter and Chapters 4901., 4903., 4907., 4909., 4921., and 4923. 3784
of the Revised Code, so long as the producer or gatherer is not 3785
affiliated with or under the control of a gas company or a natural 3786
gas company engaged in the transportation or distribution of 3787
natural gas, or so long as the producer or gatherer does not 3788
engage in the distribution of natural gas to consumers.3789

       Nothing in division (A)(5) of this section limits the 3790
authority of the commission to enforce sections 4905.90 to 4905.96 3791
of the Revised Code.3792

       (6) A pipe-line company, when engaged in the business of 3793
transporting natural gas, oil, or coal or its derivatives through 3794
pipes or tubing, either wholly or partly within this state, but 3795
not when engaged in the business of the transport associated with 3796
gathering lines, raw natural gas liquids, or finished product 3797
natural gas liquids;3798

       (7) A water-works company, when engaged in the business of 3799
supplying water through pipes or tubing, or in a similar manner, 3800
to consumers within this state;3801

       (8) A heating or cooling company, when engaged in the 3802
business of supplying water, steam, or air through pipes or tubing 3803
to consumers within this state for heating or cooling purposes;3804

       (9) A messenger company, when engaged in the business of 3805
supplying messengers for any purpose;3806

       (10) A street railway company, when engaged in the business 3807
of operating as a common carrier, a railway, wholly or partly 3808
within this state, with one or more tracks upon, along, above, or 3809
below any public road, street, alleyway, or ground, within any 3810
municipal corporation, operated by any motive power other than 3811
steam and not a part of an interurban railroad, whether the 3812
railway is termed street, inclined-plane, elevated, or underground 3813
railway;3814

       (11) A suburban railroad company, when engaged in the 3815
business of operating as a common carrier, whether wholly or 3816
partially within this state, a part of a street railway 3817
constructed or extended beyond the limits of a municipal 3818
corporation, and not a part of an interurban railroad;3819

       (12) An interurban railroad company, when engaged in the 3820
business of operating a railroad, wholly or partially within this 3821
state, with one or more tracks from one municipal corporation or 3822
point in this state to another municipal corporation or point in 3823
this state, whether constructed upon the public highways or upon 3824
private rights-of-way, outside of municipal corporations, using 3825
electricity or other motive power than steam power for the 3826
transportation of passengers, packages, express matter, United 3827
States mail, baggage, and freight. Such an interurban railroad 3828
company is included in the term "railroad" as used in section 3829
4907.02 of the Revised Code.3830

       (13) A sewage disposal system company, when engaged in the 3831
business of sewage disposal services through pipes or tubing, and 3832
treatment works, or in a similar manner, within this state.3833

       (B) "Motor-propelled vehicle" means any automobile, 3834
automobile truck, motor bus, or any other self-propelled vehicle 3835
not operated or driven upon fixed rails or tracks.3836

       (C) As used in this section:3837

       (1) "Gathering lines" has the same meaning as in section 3838
4905.90 of the Revised Code.3839

       (2) "Raw natural gas liquids" and "finished product natural 3840
gas liquids" have the same meanings as in section 4906.01 of the 3841
Revised Code.3842

       Sec. 4905.90.  As used in sections 4905.90 to 4905.96 of the 3843
Revised Code:3844

       (A) "Contiguous property" includes, but is not limited to, a 3845
manufactured home park as defined in section 3733.01 of the 3846
Revised Code; a public or publicly subsidized housing project; an 3847
apartment complex; a condominium complex; a college or university; 3848
an office complex; a shopping center; a hotel; an industrial park; 3849
and a race track.3850

       (B) "Gas" means natural gas, flammable gas, or gas which is 3851
toxic or corrosive.3852

       (C) "Gathering linesline" and the "gathering of gas" have 3853
the same meaning as in the Natural Gas Pipeline Safety Act and the 3854
rules adopted by the United States department of transportation 3855
pursuant to the Natural Gas Pipeline Safety Act, including 49 3856
C.F.R. part 192, as amended.3857

       (D) "Gas gathering pipeline" means a gathering line that is 3858
not regulated under the Natural Gas Pipeline Safety Act and the 3859
rules adopted by the United States department of transportation 3860
pursuant to the Natural Gas Pipeline Safety Act, including 49 3861
C.F.R. part 192, as amended. "Gas gathering pipeline" includes a 3862
pipeline used to collect and transport wet natural gas or 3863
transmission quality gas to the inlet of a gas processing plant, 3864
the inlet of a distribution system, or to a transmission line.3865

       (E) "Gas processing plant" means a plant that processes wet 3866
natural gas into merchantable products, including transmission 3867
quality gas or natural gas liquids and also may include a plant 3868
that treats raw natural gas to remove impurities such as carbon 3869
dioxide, helium, nitrogen or water. 3870

       (F) "Intrastate pipe-line transportation" has the same 3871
meaning as in 82 Stat. 720 (1968), 49 U.S.C.A. App. 1671, as 3872
amended, but excludes the gathering of gas exempted by the Natural 3873
Gas Pipeline Safety Act.3874

       (E)(G) "MAOP" means the maximum pressure at which a gas 3875
gathering pipeline, a processing plant gas stub pipeline, or any 3876
segment of such a pipeline may be operated under sections 4905.90 3877
to 4905.96 of the Revised Code.3878

       (H) "Master-meter system" means a pipe-line system that 3879
distributes gas within a contiguous property for which the system 3880
operator purchases gas for resale to consumers, including tenants. 3881
Such pipe-line system supplies consumers who purchase the gas 3882
directly through a meter, or by paying rent, or by other means. 3883
The term includes a master-meter system as defined in 49 C.F.R. 3884
191.3, as amended. The term excludes a pipeline within a 3885
manufactured home, mobile home, or a building.3886

       (F)(I) "Natural Gas Pipeline Safety Act" means the "Natural 3887
Gas Pipeline Safety Act of 1968," 82 Stat. 720, 49 U.S.C.A. App. 3888
1671 et seq., as amended.3889

       (G)(J) "Operator" means any of the following:3890

       (1) A gas company or natural gas company as defined in 3891
section 4905.03 of the Revised Code, except that division (A)(5) 3892
of that section does not authorize the public utilities commission 3893
to relieve any producer of gas, as a gas company or natural gas 3894
company, of compliance with sections 4905.90 to 4905.96 of the 3895
Revised Code or the pipe-line safety code created under section 3896
4905.91 of the Revised Code;3897

       (2) A pipe-line company, as defined in section 4905.03 of the 3898
Revised Code, when engaged in the business of transporting gas by 3899
pipeline;3900

       (3) A public utility that is excepted from the definition of 3901
"public utility" under division (B) or (C) of section 4905.02 of 3902
the Revised Code, when engaged in supplying or transporting gas by 3903
pipeline within this state;3904

       (4) Any person that owns, operates, manages, controls, or 3905
leases any of the following:3906

       (a) Intrastate pipe-line transportation facilities within 3907
this state;3908

       (b) Gas gathering lines within this state which are not 3909
exempted by the Natural Gas Pipeline Safety Act;3910

       (c) A master-meter system within this state.3911

       "Operator" does not include an ultimate consumer who owns a 3912
service line, as defined in 49 C.F.R. 192.3, as amended, on the 3913
real property of that ultimate consumer.3914

       (H)(K) "Operator of a master-meter system" means a person 3915
described under division (F)(J)(4)(c) of this section. An operator 3916
of a master-meter system is not a public utility under section 3917
4905.02 or a gas or natural gas company under section 4905.03 of 3918
the Revised Code.3919

       (I)(L) "Person" means:3920

       (1) In addition to those defined in division (C) of section 3921
1.59 of the Revised Code, a joint venture or a municipal 3922
corporation;3923

       (2) Any trustee, receiver, assignee, or personal 3924
representative of persons defined in division (H)(L)(1) of this 3925
section.3926

       (J)(M) "Processing plant gas stub pipeline" means a gas 3927
pipeline that transports transmission quality gas from the 3928
tailgate of a gas processing plant to the inlet of an interstate 3929
or intrastate transmission line and that is considered an 3930
extension of the gas processing plant, is not for public use, and 3931
is not regulated under the Natural Gas Pipeline Safety Act and the 3932
rules adopted by the United States department of transportation 3933
pursuant to the Natural Gas Pipeline Safety Act, including 49 3934
C.F.R. part 92, as amended. 3935

       (N) "Safety audit" means the public utilities commission's 3936
audit of the premises, pipe-line facilities, and the records, 3937
maps, and other relevant documents of a master-meter system to 3938
determine the operator's compliance with sections 4905.90 to 3939
4905.96 of the Revised Code and the pipe-line safety code.3940

       (K)(O) "Safety inspection" means any inspection, survey, or 3941
testing of a master-meter system which is authorized or required 3942
by sections 4905.90 to 4905.96 of the Revised Code and the 3943
pipe-line safety code. The term includes, but is not limited to, 3944
leak surveys, inspection of regulators and critical valves, and 3945
monitoring of cathodic protection systems, where applicable.3946

       (L)(P) "Safety-related condition" means any safety-related 3947
condition defined in 49 C.F.R. 191.23, as amended.3948

       (M)(Q) "Total Mcfs of gas it supplied or delivered" means the 3949
sum of the following volumes of gas that an operator supplied or 3950
delivered, measured in units per one thousand cubic feet:3951

       (1) Residential sales;3952

       (2) Commercial and industrial sales;3953

       (3) Other sales to public authorities;3954

       (4) Interdepartmental sales;3955

       (5) Sales for resale;3956

       (6) Transportation of gas.3957

       (R) "Transmission quality gas" means gas consisting 3958
predominantly of methane that meets all downstream specifications 3959
for transportation in an intrastate or interstate transmission 3960
pipeline and that is suitable for use by public consumers. 3961

       (S) "Wet natural gas" means natural gas with a mixture of 3962
natural gas liquids that normally include ethane, propane, butane, 3963
and other condensates that are liquid if the temperature is 3964
reduced below the hydrocarbon dew point temperature of the natural 3965
gas and which may be processed to remove any or all of the natural 3966
gas liquids.3967

       Sec. 4905.91.  For the purpose of protecting the public 3968
safety with respect to intrastate pipe-line transportation3969
pipe-lines used by any operator:3970

       (A) The public utilities commission shall:3971

       (1) Adopt, and may amend or rescind, rules to carry out 3972
sections 4905.90 to 4905.96 of the Revised Code, including rules 3973
concerning pipe-line safety, drug testing, and enforcement 3974
procedures. The commission shall adopt these rules only after 3975
notice and opportunity for public comment. The rules adopted under 3976
this division and any orders issued under sections 4905.90 to 3977
4905.96 of the Revised Code constitute the pipe-line safety code. 3978
The commission shall administer and enforce that code.3979

       (2) Make certifications and reports to the United States 3980
department of transportation as required under the Natural Gas 3981
Pipeline Safety Act;3982

       (3) Perform all regulatory and enforcement duties required 3983
under sections 4905.90 to 4905.96 of the Revised Code.3984

       (B) The commission may:3985

       (1) Investigate any service, act, practice, policy, or 3986
omission by any operator to determine its compliance with sections 3987
4905.90 to 4905.96 of the Revised Code and the pipe-line safety 3988
code;3989

       (2) Investigate any intrastate pipe-line transportation 3990
facility to determine if it is hazardous to life or property, as 3991
provided in 82 Stat. 720 (1968), 49 U.S.C.A. App. 1679b(b)(2) and 3992
(3);3993

       (3) Investigate the existence or report of any safety-related 3994
condition that involves any intrastate pipe-line transportation 3995
facility;3996

       (4) Enter into and perform contracts or agreements with the 3997
United States department of transportation to inspect interstate 3998
transmission facilities pursuant to the Natural Gas Pipeline 3999
Safety Act;4000

       (5) Accept grants-in-aid, cash, and reimbursements provided 4001
for or made available to this state by the federal government to 4002
carry out the Natural Gas Pipeline Safety Act or to enforce 4003
sections 4905.90 to 4905.96 of the Revised Code and the pipe-line 4004
safety code. All such grants-in-aid, cash, and reimbursements 4005
shall be deposited to the credit of the gas pipe-line safety fund, 4006
which is hereby created in the state treasury, to be used by the 4007
commission for the purpose of carrying out this section.4008

       (6) Enter into a cooperative agreement or a memorandum of 4009
understanding with another state agency for consultation services 4010
and the exchange of advice and technical expertise to assist the 4011
commission in exercising its regulatory authority under section 4012
4905.04 of the Revised Code, provided that no such agreement or 4013
memorandum of understanding shall:4014

        (a) Confer on the state agency any regulatory authority over 4015
the activities subject to sections 4905.90 to 4905.96 of the 4016
Revised Code;4017

        (b) Diminish the sole and exclusive authority of the 4018
commission under section 4905.04 of the Revised Code. 4019

       (C) TheWith the exception of gas gathering pipelines and 4020
processing plant gas stub pipelines, the commission's regulation 4021
of gathering lines shall conform to the regulation of gathering 4022
lines in 49 C.F.R. 192 and 199, as amended, and the commission's 4023
annual certification agreements with the United States department 4024
of transportation, except that rule 4901:1-16-03, paragraph (D) of 4025
rule 4901:1-16-05, and rule 4901:1-16-06 of the Ohio 4026
Administrative Code shall also apply to gathering lines. The 4027
procedural rules under chapter 4901:1-16 of the Ohio 4028
Administrative Code shall also apply to operators of gathering 4029
lines that are not gathering pipelines or processing plant gas 4030
stub pipelines.4031

       Sec. 4905.911.  (A)(1) The public utilities commission shall 4032
require an operator of either of the following types of pipelines 4033
that was completely constructed on or after the effective date of 4034
this section and that transports gas produced by a horizontal well 4035
to comply with the applicable pipe design requirements of 49 4036
C.F.R. 192 subpart C:4037

        (a) A gas gathering pipeline;4038

        (b) A processing plant gas stub pipeline.4039

        (2) The commission shall also require the operator to do all 4040
of the following regarding that pipeline:4041

       (a) Design, install, construct, initially inspect, and 4042
initially test the pipeline in accordance with the requirements of 4043
49 C.F.R. 192 if the pipeline is new, replaced, relocated, or 4044
otherwise changed;4045

       (b) Control corrosion according to requirements of 49 C.F.R. 4046
192 subpart I if the pipeline is metallic;4047

       (c) Establish and carry out a damage prevention program under 4048
49 C.F.R. 192.614;4049

       (d) Establish and carry out a public education program under 4050
49 C.F.R. 192.616;4051

       (e) Establish the MAOP of the pipeline under 49 C.F.R. 4052
192.619;4053

       (f) Install and maintain pipeline markers according to the 4054
requirements for transmission lines under 49 C.F.R. 192.707; 4055

       (g) Perform leakage surveys according to requirements in 49 4056
C.F.R. 192.706;4057

       (h) Retain a record of each required leakage survey conducted 4058
under division (A)(2)(g) of this section and 49 C.F.R. 192.706 for 4059
five years or until the next leakage survey is completed, 4060
whichever time period is longer.4061

       (B)(1) Any person who plans to construct a pipeline subject 4062
to division (A) of this section after the effective date of this 4063
section shall file with the public utilities commission division 4064
of pipeline safety a form approved by the division that includes 4065
all of the following information:4066

        (a) The route of the proposed pipeline;4067

        (b) The MAOP of the pipeline;4068

        (c) The outside diameter of the pipeline;4069

        (d) The wall thickness of the pipeline;4070

        (e) The material that the pipeline will be made of;4071

        (f) The yield strength of the pipeline.4072

        The form shall be filed with the division not later than 4073
twenty-one days prior to the commencement of construction of the 4074
pipeline.4075

        (2) Not later than sixty days after the completion of 4076
construction of a pipeline subject to division (B)(1) of this 4077
section, the operator of the pipeline shall file with the public 4078
utilities commission division of pipeline safety an explanation of 4079
the constructed pipeline's route and operating information. 4080

       (C) For purposes of this section:4081

       (1) "Horizontal well" has the same meaning as in section 4082
1509.01 of the Revised Code.4083

        (2) "Operator" means any person that owns, operates, manages, 4084
controls, or leases a gas gathering pipeline or a processing plant 4085
gas stub pipeline.4086

       Sec. 4905.912. (A) As used in this section, "pipeline 4087
company" means a company engaged in the business of transporting 4088
gas by pipeline.4089

        (B) On the first day of July and the first day of November of 4090
each year, each operator and pipeline company shall file with the 4091
commission a disclosure in quintuplicate that specifies the 4092
country in which each tubular steel product used by the operator 4093
or company in the exploration, gathering, or transportation of gas 4094
or hazardous liquids was manufactured. The public utilities 4095
commission may prescribe a disclosure form, and require its use, 4096
for the purpose of this section. 4097

       Sec. 4905.95.  (A) Except as otherwise provided in division 4098
(C) of this section:4099

       (1) The public utilities commission, regarding any proceeding 4100
under this section, shall provide reasonable notice and the 4101
opportunity for a hearing in accordance with rules adopted under 4102
section 4901.13 of the Revised Code.4103

       (2) Sections 4903.02 to 4903.082, 4903.09 to 4903.16, and 4104
4903.20 to 4903.23 of the Revised Code apply to all proceedings 4105
and orders of the commission under this section and to all 4106
operators subject to those proceedings and orders.4107

       (B) If, pursuant to a proceeding it specially initiates or to 4108
any other proceeding and after the hearing provided for under 4109
division (A) of this section, the commission finds that:4110

       (1) An operator has violated or failed to comply with, or is 4111
violating or failing to comply with, sections 4905.90 to 4905.96 4112
of the Revised Code or the pipe-line safety code, the commission 4113
by order:4114

       (a) Shall require the operator to comply and to undertake 4115
corrective action necessary to protect the public safety;4116

       (b) May assess upon the operator forfeitures of not more than 4117
one hundred thousand dollars for each day of each violation or 4118
noncompliance, except that the aggregate of such forfeitures shall 4119
not exceed five hundred thousandone million dollars for any 4120
related series of violations or noncompliances. In determining the 4121
amount of any such forfeiture, the commission shall consider all 4122
of the following:4123

       (i) The gravity of the violation or noncompliance;4124

       (ii) The operator's history of prior violations or 4125
noncompliances;4126

       (iii) The operator's good faith efforts to comply and 4127
undertake corrective action;4128

       (iv) The operator's ability to pay the forfeiture;4129

       (v) The effect of the forfeiture on the operator's ability to 4130
continue as an operator;4131

       (vi) Such other matters as justice may require.4132

All forfeitures collected under this division or section 4905.96 4133
of the Revised Code shall be deposited in the state treasury to 4134
the credit of the general revenue fund.4135

       (c) May direct the attorney general to seek the remedies 4136
provided in section 4905.96 of the Revised Code.4137

       (2) An intrastate pipe-line transportation facility is 4138
hazardous to life or property, the commission by order:4139

       (a) Shall require the operator of the facility to take 4140
corrective action to remove the hazard. Such corrective action may 4141
include suspended or restricted use of the facility, physical 4142
inspection, testing, repair, replacement, or other action.4143

       (b) May direct the attorney general to seek the remedies 4144
provided in section 4905.96 of the Revised Code.4145

       (C) If, pursuant to a proceeding it specially initiates or to 4146
any other proceeding, the commission finds that an emergency 4147
exists due to a condition on an intrastate pipe-line 4148
transportation facility posing a clear and immediate danger to 4149
life or health or threatening a significant loss of property and 4150
requiring immediate corrective action to protect the public 4151
safety, the commission may issue, without notice or prior hearing, 4152
an order reciting its finding and may direct the attorney general 4153
to seek the remedies provided in section 4905.96 of the Revised 4154
Code. The order shall remain in effect for not more than forty 4155
days after the date of its issuance. The order shall provide for a 4156
hearing as soon as possible, but not later than thirty days after 4157
the date of its issuance. After the hearing the commission shall 4158
continue, revoke, or modify the order and may make findings under 4159
and seek appropriate remedies as provided in division (B) of this 4160
section.4161

       Sec. 4906.01.  As used in Chapter 4906. of the Revised Code:4162

       (A) "Person" means an individual, corporation, business 4163
trust, association, estate, trust, or partnership or any officer, 4164
board, commission, department, division, or bureau of the state or 4165
a political subdivision of the state, or any other entity.4166

       (B)(1) "Major utility facility" means:4167

       (a) Electric generating plant and associated facilities 4168
designed for, or capable of, operation at a capacity of fifty 4169
megawatts or more;4170

       (b) An electric transmission line and associated facilities 4171
of a design capacity of one hundred twenty-five kilovolts or more;4172

       (c) A gas or natural gas transmission line andpipeline that 4173
is greater than five hundred feet in length, and its associated 4174
facilities, is more than nine inches in outside diameter and is4175
designed for, or capable of, transporting gas or natural gas at 4176
pressuresa maximum allowable operating pressure in excess of one 4177
hundred twenty-five pounds per square inch.4178

       (2) "Major utility facility" does not include gas or natural 4179
gasany of the following:4180

       (a) Gas transmission lines over which an agency of the United 4181
States has exclusive jurisdiction, any;4182

       (b) Any solid waste facilities as defined in section 6123.01 4183
of the Revised Code, or either of the following as defined by the 4184
power siting board:;4185

       (a)(c) Electric, gas, natural gas distributing lines and gas 4186
or natural gas gathering lines and associated facilities as 4187
defined by the power siting board;4188

       (b)(d) Any manufacturing facility that creates byproducts 4189
that may be used in the generation of electricity as defined by 4190
the power siting board;4191

       (e) Gathering lines, gas gathering pipelines, and processing 4192
plant gas stub pipelines as those terms are defined in section 4193
4905.90 of the Revised Code;4194

       (f) Any gas processing plant as defined in section 4905.90 of 4195
the Revised Code;4196

       (g) Natural gas liquids finished product pipelines;4197

       (h) Pipelines from a gas processing plant as defined in 4198
section 4905.90 of the Revised Code to a natural gas liquids 4199
fractionation plant, including a raw natural gas liquids pipeline, 4200
or to an interstate or intrastate gas pipeline;4201

       (i) Any natural gas liquids fractionation plant;4202

       (j) A production operation as defined in section 1509.01 of 4203
the Revised Code, including all pipelines upstream of any 4204
gathering lines;4205

        (k) Any compressor stations used by the following: 4206

       (i) A gas gathering pipeline, a processing plant gas stub 4207
pipeline, or a gas processing plant as those terms are defined in 4208
section 4905.90 of the Revised Code;4209

        (ii) A natural gas liquids finished product pipeline, a 4210
natural gas liquids fractionation plant, or any pipeline upstream 4211
of a natural gas liquids fractionation plant; or4212

        (iii) A production operation as defined in section 1509.01 of 4213
the Revised Code.4214

       (C) "Commence to construct" means any clearing of land, 4215
excavation, or other action that would adversely affect the 4216
natural environment of the site or route of a major utility 4217
facility, but does not include surveying changes needed for 4218
temporary use of sites or routes for nonutility purposes, or uses 4219
in securing geological data, including necessary borings to 4220
ascertain foundation conditions.4221

       (D) "Certificate" means a certificate of environmental 4222
compatibility and public need issued by the power siting board 4223
under section 4906.10 of the Revised Code or a construction 4224
certificate issued by the board under rules adopted under division 4225
(E) or (F) of section 4906.03 of the Revised Code.4226

       (E) "Gas" means natural gas, flammable gas, or gas that is 4227
toxic or corrosive.4228

       (F) "Natural gas liquids finished product pipeline" means a 4229
pipeline that carries finished product natural gas liquids to the 4230
inlet of an interstate or intrastate finished product natural gas 4231
liquid transmission pipeline, rail loading facility, or other 4232
petrochemical or refinery facility.4233

       (G) "Natural gas liquids fractionation plant" means a 4234
facility that takes a feed of raw natural gas liquids and produces 4235
finished product natural gas liquids.4236

       (H) "Raw natural gas" means hydrocarbons that are produced in 4237
a gaseous state from gas wells and that generally include methane, 4238
ethane, propane, butanes, pentanes, hexanes, heptanes, octanes, 4239
nonanes, and decanes, plus other naturally occurring impurities 4240
like water, carbon dioxide, hydrogen sulfide, nitrogen, oxygen, 4241
and helium.4242

       (I) "Raw natural gas liquids" means naturally occurring 4243
hydrocarbons contained in raw natural gas that are extracted in a 4244
gas processing plant and liquefied and generally include mixtures 4245
of ethane, propane, butanes, and natural gasoline.4246

       (J) "Finished product natural gas liquids" means an 4247
individual finished product produced by a natural gas liquids 4248
fractionation plant as a liquid that meets the specifications for 4249
commercial products as defined by the gas processors association. 4250
Those products include ethane, propane, iso-butane, normal butane, 4251
and natural gasoline.4252

       Sec. 4906.03.  The power siting board shall:4253

       (A) Require such information from persons subject to its 4254
jurisdiction as it considers necessary to assist in the conduct of 4255
hearings and any investigations or studies it may undertake;4256

       (B) Conduct any studies or investigations that it considers 4257
necessary or appropriate to carry out its responsibilities under 4258
this chapter;4259

       (C) Adopt rules establishing criteria for evaluating the 4260
effects on environmental values of proposed and alternative sites, 4261
and projected needs for electric power, and such other rules as 4262
are necessary and convenient to implement this chapter, including 4263
rules governing application fees, supplemental application fees, 4264
and other reasonable fees to be paid by persons subject to the 4265
board's jurisdiction. The board shall make an annual accounting of 4266
its collection and use of these fees and shall issue an annual 4267
report of its accounting, in the form and manner prescribed by its 4268
rules, not later than the last day of June of the year following 4269
the calendar year to which the report applies.4270

       (D) Approve or, disapprove, or modify and approve4271
applications for certificates;4272

       (E) Notwithstanding sections 4906.06 to 4906.14 of the 4273
Revised Code, the board may adopt rules to provide for an4274
abbreviatedaccelerated review of an application for a 4275
construction certificate for construction of a major utility 4276
facility related to a coal research and development project as 4277
defined in section 1555.01 of the Revised Code, or to a coal 4278
development project as defined in section 1551.30 of the Revised 4279
Code, submitted to the Ohio coal development office for review 4280
under division (B)(7) of section 1551.33 of the Revised Code. 4281
Applications for construction certificates for construction of 4282
major utility facilities for Ohio coal research and development 4283
shall be filed with the board on the same day as the proposed 4284
facility or project is submitted to the Ohio coal development 4285
office for review.4286

       The board shall render a decision on an application for a 4287
construction certificate within ninety days after receipt of the 4288
application and all of the data and information it may require 4289
from the applicant. In rendering a decision on an application for 4290
a construction certificate, the board shall only consider the 4291
criteria and make the findings and determinations set forth in 4292
divisions (A)(2), (3), (5), and (7) and division (B) of section 4293
4906.10 of the Revised Code.4294

       (F) Notwithstanding sections 4906.06 to 4906.14 of the 4295
Revised Code, the board shall adopt rules to provide for an 4296
accelerated review of an application for a construction 4297
certificate for any of the following:4298

       (1) An electric transmission line that is:4299

       (a) Not more than two miles in length;4300

       (b) Primarily needed to meet the requirements of a specific 4301
customer; or4302

        (c) Necessary to maintain reliable electric service as a 4303
result of the retirement or shutdown of an electric generating 4304
facility located within the state, which retirement or shutdown is 4305
due to environmental laws, rules, or requirements.4306

        (2) An electric generating facility that uses waste heat or 4307
natural gas and is primarily within the current boundary of an 4308
existing industrial or electric generating facility;4309

       (3) A gas pipeline that is not more than five miles in length 4310
or is primarily needed to meet the requirements of a specific 4311
customer.4312

        The board shall adopt rules that provide for the automatic 4313
certification to any entity described in this division when an 4314
application by any such entity is not suspended by the board, an 4315
administrative law judge, or the chairperson or executive director 4316
of the board for good cause shown, within ninety days of 4317
submission of the application. If an application is suspended, the 4318
board shall approve, disapprove, or modify and approve the 4319
application not later than ninety days after the date of the 4320
suspension.4321

       Sec. 4906.05.  No certificate is required for a major utility 4322
facility on which construction had already commenced on October 4323
23, 1972, or within two years thereafter. This section does not 4324
exempt such a facility from any other requirements of state and 4325
local laws and regulations.4326

       No certificate is required for any major utility facility 4327
already in operation on October 23, 1972, and the facility shall 4328
not be exempt from any applicable state or local laws or 4329
regulations. A certificate is required for any substantial 4330
addition to a facility already in operation. "Substantial 4331
addition" shall be defined by the power siting board.4332

       Any electric generating plant and associated facilities, 4333
electric transmission line and associated facilities, or gas or 4334
natural gas transmission linepipeline and associated facilities 4335
which is not a major utility facility is not exempt from state or 4336
local laws or regulations.4337

       Sec. 4906.06.  (A) An applicant for a certificate shall file 4338
with the office of the chairperson of the power siting board an 4339
application, in such form as the board prescribes, containing the 4340
following information:4341

       (1) A description of the location and of the major utility 4342
facility;4343

       (2) A summary of any studies that have been made by or for 4344
the applicant of the environmental impact of the facility;4345

       (3) A statement explaining the need for the facility;4346

       (4) A statement of the reasons why the proposed location is 4347
best suited for the facility;4348

       (5) A statement of how the facility fits into the applicant's 4349
forecast contained in the report submitted under section 4935.04 4350
of the Revised Code;4351

       (6) Such other information as the applicant may consider 4352
relevant or as the board by rule or order may require. Copies of 4353
the studies referred to in division (A)(2) of this section shall 4354
be filed with the office of the chairperson, if ordered, and shall 4355
be available for public inspection.4356

       The application shall be filed not less than one year nor4357
more than five years prior to the planned date of commencement of 4358
construction. EitherThe five-year period may be waived by the 4359
board for good cause shown.4360

       (B) Each application shall be accompanied by proof of service 4361
of a copy of such application on the chief executive officer of 4362
each municipal corporation and county, and the head of each public 4363
agency charged with the duty of protecting the environment or of 4364
planning land use, in the area in which any portion of such 4365
facility is to be located.4366

       (C) Each applicant within fifteen days after the date of the 4367
filing of the application shall give public notice to persons 4368
residing in the municipal corporations and counties entitled to 4369
receive notice under division (B) of this section, by the 4370
publication of a summary of the application in newspapers of 4371
general circulation in such area. Proof of such publication shall 4372
be filed with the office of the chairperson.4373

       (D) Inadvertent failure of service on, or notice to, any of 4374
the persons identified in divisions (B) and (C) of this section 4375
may be cured pursuant to orders of the board designed to afford 4376
them adequate notice to enable them to participate effectively in 4377
the proceeding. In addition, the board, after filing, may require 4378
the applicant to serve notice of the application or copies thereof 4379
or both upon such other persons, and file proof thereof, as the 4380
board considers appropriate.4381

       (E) An application for an amendment of a certificate shall be 4382
in such form and contain such information as the board prescribes. 4383
Notice of such an application shall be given as required in 4384
divisions (B) and (C) of this section.4385

       (F) Each application for certificate or an amendment shall be 4386
accompanied by the application fee prescribed by board rule. All 4387
application fees, supplemental application fees, and other fees 4388
collected by the board shall be deposited in the state treasury to 4389
the credit of the power siting board fund, which is hereby 4390
created. The chairperson shall administer and authorize 4391
expenditures from the fund for any of the purposes of this 4392
chapter. If the chairperson determines that moneys credited to the 4393
fund from an applicant's fee are not sufficient to pay the board's 4394
expenses associated with its review of the application, the 4395
chairperson shall request the approval of the controlling board to 4396
assess a supplemental application fee upon an applicant to pay 4397
anticipated additional expenses associated with the board's review 4398
of the application or an amendment to an application. If the 4399
chairperson finds that an application fee exceeds the amount 4400
needed to pay the board's expenses for review of the application, 4401
the chairperson shall cause a refund of the excess amount to be 4402
issued to the applicant from the fund.4403

       Sec. 4906.07.  (A) Upon the receipt of an application 4404
complying with section 4906.06 of the Revised Code, the power 4405
siting board shall promptly fix a date for a public hearing 4406
thereon, not less than sixty nor more than ninety days after such 4407
receipt, and shall conclude the proceeding as expeditiously as 4408
practicable.4409

       (B) On an application for an amendment of a certificate, the 4410
board shall hold a hearing in the same manner as a hearing is held 4411
on an application for a certificate if the proposed change in the 4412
facility would result in any material increase in any 4413
environmental impact of the facility or a substantial change in 4414
the location of all or a portion of such facility other than as 4415
provided in the alternates set forth in the application.4416

       (C) The chairmanchairperson of the power siting board shall 4417
cause each application filed with the board to be investigated and 4418
shall, not less than fifteen days prior to the date any 4419
application is set for hearing submit a written report to the 4420
board and to the applicant. A copy of such report shall be made 4421
available to any person upon request. Such report shall set forth 4422
the nature of the investigation, and shall contain recommended 4423
findings with regard to division (A) of section 4906.10 of the 4424
Revised Code and shall become part of the record and served upon 4425
all parties to the proceeding.4426

       Sec. 4906.10.  (A) The power siting board shall render a 4427
decision upon the record either granting or denying the 4428
application as filed, or granting it upon such terms, conditions, 4429
or modifications of the construction, operation, or maintenance of 4430
the major utility facility as the board considers appropriate. The 4431
certificate shall be conditioned upon the facility being in 4432
compliance with standards and rules adopted under sections 4433
1501.33, 1501.34, and 4561.32 and Chapters 3704., 3734., and 6111. 4434
of the Revised Code. An applicant may withdraw an application if 4435
the board grants a certificate on terms, conditions, or 4436
modifications other than those proposed by the applicant in the 4437
application. The period of initial operation under a certificate 4438
shall expire two years after the date on which electric power is 4439
first generated by the facility. During the period of initial 4440
operation, the facility shall be subject to the enforcement and 4441
monitoring powers of the director of environmental protection 4442
under Chapters 3704., 3734., and 6111. of the Revised Code and to 4443
the emergency provisions under those chapters. If a major utility 4444
facility constructed in accordance with the terms and conditions 4445
of its certificate is unable to operate in compliance with all 4446
applicable requirements of state laws, rules, and standards 4447
pertaining to air pollution, the facility may apply to the 4448
director of environmental protection for a conditional operating 4449
permit under division (G) of section 3704.03 of the Revised Code 4450
and the rules adopted thereunder. The operation of a major utility 4451
facility in compliance with a conditional operating permit is not 4452
in violation of its certificate. After the expiration of the 4453
period of initial operation of a major utility facility, the 4454
facility shall be under the jurisdiction of the environmental 4455
protection agency and shall comply with all laws, rules, and 4456
standards pertaining to air pollution, water pollution, and solid 4457
and hazardous waste disposal.4458

       The board shall not grant a certificate for the construction, 4459
operation, and maintenance of a major utility facility, either as 4460
proposed or as modified by the board, unless it finds and 4461
determines all of the following:4462

       (1) The basis of the need for the facility if the facility is 4463
an electric transmission line or gas or natural gas transmission 4464
linepipeline;4465

       (2) The nature of the probable environmental impact;4466

       (3) That the facility represents the minimum adverse 4467
environmental impact, considering the state of available 4468
technology and the nature and economics of the various 4469
alternatives, and other pertinent considerations;4470

       (4) In the case of an electric transmission line or 4471
generating facility, that the facility is consistent with regional 4472
plans for expansion of the electric power grid of the electric 4473
systems serving this state and interconnected utility systems and 4474
that the facility will serve the interests of electric system 4475
economy and reliability;4476

       (5) That the facility will comply with Chapters 3704., 3734., 4477
and 6111. of the Revised Code and all rules and standards adopted 4478
under those chapters and under sections 1501.33, 1501.34, and 4479
4561.32 of the Revised Code. In determining whether the facility 4480
will comply with all rules and standards adopted under section 4481
4561.32 of the Revised Code, the board shall consult with the 4482
office of aviation of the division of multi-modal planning and 4483
programs of the department of transportation under section 4484
4561.341 of the Revised Code.4485

       (6) That the facility will serve the public interest, 4486
convenience, and necessity;4487

       (7) In addition to the provisions contained in divisions 4488
(A)(1) to (6) of this section and rules adopted under those 4489
divisions, what its impact will be on the viability as 4490
agricultural land of any land in an existing agricultural district 4491
established under Chapter 929. of the Revised Code that is located 4492
within the site and alternative site of the proposed major utility 4493
facility. Rules adopted to evaluate impact under division (A)(7) 4494
of this section shall not require the compilation, creation, 4495
submission, or production of any information, document, or other 4496
data pertaining to land not located within the site and 4497
alternative site.4498

       (8) That the facility incorporates maximum feasible water 4499
conservation practices as determined by the board, considering 4500
available technology and the nature and economics of the various 4501
alternatives.4502

       (B) If the board determines that the location of all or a 4503
part of the proposed facility should be modified, it may condition 4504
its certificate upon that modification, provided that the 4505
municipal corporations and counties, and persons residing therein, 4506
affected by the modification shall have been given reasonable 4507
notice thereof.4508

       (C) A copy of the decision and any opinion issued therewith 4509
shall be served upon each party.4510

       Sec. 4906.20. (A) No person shall commence to construct an 4511
economically significant wind farm in this state without first 4512
having obtained a certificate from the power siting board. An 4513
economically significant wind farm with respect to which such a 4514
certificate is required shall be constructed, operated, and 4515
maintained in conformity with that certificate and any terms, 4516
conditions, and modifications it contains. A certificate shall be 4517
issued only pursuant to this section. The certificate may be 4518
transferred, subject to the approval of the board, to a person 4519
that agrees to comply with those terms, conditions, and 4520
modifications.4521

       (B) The board shall adopt rules governing the certificating 4522
of economically significant wind farms under this section. Initial 4523
rules shall be adopted within one hundred twenty days after this 4524
section's effective dateJune 24, 2008.4525

       (1) The rules shall provide for an application process for 4526
certificating economically significant wind farms that is 4527
identical to the extent practicable to the process applicable to 4528
certificating major utility facilities under sections 4906.06, 4529
4906.07, 4906.08, 4906.09, 4906.10, 4906.11, and 4906.12 of the 4530
Revised Code and shall prescribe a reasonable schedule of 4531
application filing fees structured in the manner of the schedule 4532
of filing fees required for major utility facilities.4533

       (2) Additionally, the rules shall prescribe reasonable 4534
regulations regarding any wind turbines and associated facilities 4535
of an economically significant wind farm, including, but not 4536
limited to, their location, erection, construction, 4537
reconstruction, change, alteration, maintenance, removal, use, or 4538
enlargement and including erosion control, aesthetics, 4539
recreational land use, wildlife protection, interconnection with 4540
power lines and with regional transmission organizations, 4541
independent transmission system operators, or similar 4542
organizations, ice throw, sound and noise levels, blade shear, 4543
shadow flicker, decommissioning, and necessary cooperation for 4544
site visits and enforcement investigations. The rules also shall 4545
prescribe a minimum setback for a wind turbine of an economically 4546
significant wind farm. That minimum shall be equal to a horizontal 4547
distance, from the turbine's base to the property line of the wind 4548
farm property, equal to one and one-tenth times the total height 4549
of the turbine structure as measured from its base to the tip of 4550
its highest blade and be at least seven hundred fifty feet in 4551
horizontal distance from the tip of the turbine's nearest blade at 4552
ninety degrees to the exterior of the nearest, habitable, 4553
residential structure, if any, located on adjacent property at the 4554
time of the certification application. The setback shall apply in 4555
all cases except those in which all owners of property adjacent to 4556
the wind farm property waive application of the setback to that 4557
property pursuant to a procedure the board shall establish by rule 4558
and except in which, in a particular case, the board determines 4559
that a setback greater than the minimum is necessary.4560

       (C) The board shall approve, or may modify and approve, an 4561
application for economically significant wind farm certification 4562
if it finds that the construction, operation, and maintenance of 4563
the economically significant wind farm will comply with the rules 4564
adopted under division (B) of this section. The certificate shall 4565
be conditioned upon the economically significant wind farm 4566
complying with rules adopted under section 4561.32 of the Revised 4567
Code.4568

       Sec. 4928.01.  (A) As used in this chapter:4569

       (1) "Ancillary service" means any function necessary to the 4570
provision of electric transmission or distribution service to a 4571
retail customer and includes, but is not limited to, scheduling, 4572
system control, and dispatch services; reactive supply from 4573
generation resources and voltage control service; reactive supply 4574
from transmission resources service; regulation service; frequency 4575
response service; energy imbalance service; operating 4576
reserve-spinning reserve service; operating reserve-supplemental 4577
reserve service; load following; back-up supply service; 4578
real-power loss replacement service; dynamic scheduling; system 4579
black start capability; and network stability service.4580

       (2) "Billing and collection agent" means a fully independent 4581
agent, not affiliated with or otherwise controlled by an electric 4582
utility, electric services company, electric cooperative, or 4583
governmental aggregator subject to certification under section 4584
4928.08 of the Revised Code, to the extent that the agent is under 4585
contract with such utility, company, cooperative, or aggregator 4586
solely to provide billing and collection for retail electric 4587
service on behalf of the utility company, cooperative, or 4588
aggregator.4589

       (3) "Certified territory" means the certified territory 4590
established for an electric supplier under sections 4933.81 to 4591
4933.90 of the Revised Code.4592

       (4) "Competitive retail electric service" means a component 4593
of retail electric service that is competitive as provided under 4594
division (B) of this section.4595

       (5) "Electric cooperative" means a not-for-profit electric 4596
light company that both is or has been financed in whole or in 4597
part under the "Rural Electrification Act of 1936," 49 Stat. 1363, 4598
7 U.S.C. 901, and owns or operates facilities in this state to 4599
generate, transmit, or distribute electricity, or a not-for-profit 4600
successor of such company.4601

       (6) "Electric distribution utility" means an electric utility 4602
that supplies at least retail electric distribution service.4603

       (7) "Electric light company" has the same meaning as in 4604
section 4905.03 of the Revised Code and includes an electric 4605
services company, but excludes any self-generator to the extent 4606
that it consumes electricity it so produces, sells that 4607
electricity for resale, or obtains electricity from a generating 4608
facility it hosts on its premises.4609

       (8) "Electric load center" has the same meaning as in section 4610
4933.81 of the Revised Code.4611

       (9) "Electric services company" means an electric light 4612
company that is engaged on a for-profit or not-for-profit basis in 4613
the business of supplying or arranging for the supply of only a 4614
competitive retail electric service in this state. "Electric 4615
services company" includes a power marketer, power broker, 4616
aggregator, or independent power producer but excludes an electric 4617
cooperative, municipal electric utility, governmental aggregator, 4618
or billing and collection agent.4619

       (10) "Electric supplier" has the same meaning as in section 4620
4933.81 of the Revised Code.4621

       (11) "Electric utility" means an electric light company that 4622
has a certified territory and is engaged on a for-profit basis 4623
either in the business of supplying a noncompetitive retail 4624
electric service in this state or in the businesses of supplying 4625
both a noncompetitive and a competitive retail electric service in 4626
this state. "Electric utility" excludes a municipal electric 4627
utility or a billing and collection agent.4628

       (12) "Firm electric service" means electric service other 4629
than nonfirm electric service.4630

       (13) "Governmental aggregator" means a legislative authority 4631
of a municipal corporation, a board of township trustees, or a 4632
board of county commissioners acting as an aggregator for the 4633
provision of a competitive retail electric service under authority 4634
conferred under section 4928.20 of the Revised Code.4635

       (14) A person acts "knowingly," regardless of the person's 4636
purpose, when the person is aware that the person's conduct will 4637
probably cause a certain result or will probably be of a certain 4638
nature. A person has knowledge of circumstances when the person is 4639
aware that such circumstances probably exist.4640

       (15) "Level of funding for low-income customer energy 4641
efficiency programs provided through electric utility rates" means 4642
the level of funds specifically included in an electric utility's 4643
rates on October 5, 1999, pursuant to an order of the public 4644
utilities commission issued under Chapter 4905. or 4909. of the 4645
Revised Code and in effect on October 4, 1999, for the purpose of 4646
improving the energy efficiency of housing for the utility's 4647
low-income customers. The term excludes the level of any such 4648
funds committed to a specific nonprofit organization or 4649
organizations pursuant to a stipulation or contract.4650

       (16) "Low-income customer assistance programs" means the 4651
percentage of income payment plan program, the home energy 4652
assistance program, the home weatherization assistance program, 4653
and the targeted energy efficiency and weatherization program.4654

       (17) "Market development period" for an electric utility 4655
means the period of time beginning on the starting date of 4656
competitive retail electric service and ending on the applicable 4657
date for that utility as specified in section 4928.40 of the 4658
Revised Code, irrespective of whether the utility applies to 4659
receive transition revenues under this chapter.4660

       (18) "Market power" means the ability to impose on customers 4661
a sustained price for a product or service above the price that 4662
would prevail in a competitive market.4663

       (19) "Mercantile customer" means a commercial or industrial 4664
customer if the electricity consumed is for nonresidential use and 4665
the customer consumes more than seven hundred thousand kilowatt 4666
hours per year or is part of a national account involving multiple 4667
facilities in one or more states.4668

       (20) "Municipal electric utility" means a municipal 4669
corporation that owns or operates facilities to generate, 4670
transmit, or distribute electricity.4671

       (21) "Noncompetitive retail electric service" means a 4672
component of retail electric service that is noncompetitive as 4673
provided under division (B) of this section.4674

       (22) "Nonfirm electric service" means electric service 4675
provided pursuant to a schedule filed under section 4905.30 of the 4676
Revised Code or pursuant to an arrangement under section 4905.31 4677
of the Revised Code, which schedule or arrangement includes 4678
conditions that may require the customer to curtail or interrupt 4679
electric usage during nonemergency circumstances upon notification 4680
by an electric utility.4681

       (23) "Percentage of income payment plan arrears" means funds 4682
eligible for collection through the percentage of income payment 4683
plan rider, but uncollected as of July 1, 2000.4684

       (24) "Person" has the same meaning as in section 1.59 of the 4685
Revised Code.4686

       (25) "Advanced energy project" means any technologies, 4687
products, activities, or management practices or strategies that 4688
facilitate the generation or use of electricity or energy and that 4689
reduce or support the reduction of energy consumption or support 4690
the production of clean, renewable energy for industrial, 4691
distribution, commercial, institutional, governmental, research, 4692
not-for-profit, or residential energy users, including, but not 4693
limited to, advanced energy resources and renewable energy 4694
resources. "Advanced energy project" also includes any project 4695
described in division (A), (B), or (C) of section 4928.621 of the 4696
Revised Code.4697

       (26) "Regulatory assets" means the unamortized net regulatory 4698
assets that are capitalized or deferred on the regulatory books of 4699
the electric utility, pursuant to an order or practice of the 4700
public utilities commission or pursuant to generally accepted 4701
accounting principles as a result of a prior commission 4702
rate-making decision, and that would otherwise have been charged 4703
to expense as incurred or would not have been capitalized or 4704
otherwise deferred for future regulatory consideration absent 4705
commission action. "Regulatory assets" includes, but is not 4706
limited to, all deferred demand-side management costs; all 4707
deferred percentage of income payment plan arrears; 4708
post-in-service capitalized charges and assets recognized in 4709
connection with statement of financial accounting standards no. 4710
109 (receivables from customers for income taxes); future nuclear 4711
decommissioning costs and fuel disposal costs as those costs have 4712
been determined by the commission in the electric utility's most 4713
recent rate or accounting application proceeding addressing such 4714
costs; the undepreciated costs of safety and radiation control 4715
equipment on nuclear generating plants owned or leased by an 4716
electric utility; and fuel costs currently deferred pursuant to 4717
the terms of one or more settlement agreements approved by the 4718
commission.4719

       (27) "Retail electric service" means any service involved in 4720
supplying or arranging for the supply of electricity to ultimate 4721
consumers in this state, from the point of generation to the point 4722
of consumption. For the purposes of this chapter, retail electric 4723
service includes one or more of the following "service 4724
components": generation service, aggregation service, power 4725
marketing service, power brokerage service, transmission service, 4726
distribution service, ancillary service, metering service, and 4727
billing and collection service.4728

       (28) "Starting date of competitive retail electric service" 4729
means January 1, 2001.4730

       (29) "Customer-generator" means a user of a net metering 4731
system.4732

       (30) "Net metering" means measuring the difference in an 4733
applicable billing period between the electricity supplied by an 4734
electric service provider and the electricity generated by a 4735
customer-generator that is fed back to the electric service 4736
provider.4737

       (31) "Net metering system" means a facility for the 4738
production of electrical energy that does all of the following:4739

       (a) Uses as its fuel either solar, wind, biomass, landfill 4740
gas, or hydropower, or uses a microturbine or a fuel cell;4741

       (b) Is located on a customer-generator's premises;4742

       (c) Operates in parallel with the electric utility's 4743
transmission and distribution facilities;4744

       (d) Is intended primarily to offset part or all of the 4745
customer-generator's requirements for electricity.4746

       (32) "Self-generator" means an entity in this state that owns 4747
or hosts on its premises an electric generation facility that 4748
produces electricity primarily for the owner's consumption and 4749
that may provide any such excess electricity to another entity, 4750
whether the facility is installed or operated by the owner or by 4751
an agent under a contract.4752

       (33) "Rate plan" means the standard service offer in effect 4753
on the effective date of the amendment of this section by S.B. 221 4754
of the 127th general assembly, July 31, 2008.4755

       (34) "Advanced energy resource" means any of the following:4756

       (a) Any method or any modification or replacement of any 4757
property, process, device, structure, or equipment that increases 4758
the generation output of an electric generating facility to the 4759
extent such efficiency is achieved without additional carbon 4760
dioxide emissions by that facility;4761

       (b) Any distributed generation system consisting of customer 4762
cogeneration of electricity and thermal output simultaneously;4763

       (c) Clean coal technology that includes a carbon-based 4764
product that is chemically altered before combustion to 4765
demonstrate a reduction, as expressed as ash, in emissions of 4766
nitrous oxide, mercury, arsenic, chlorine, sulfur dioxide, or 4767
sulfur trioxide in accordance with the American society of testing 4768
and materials standard D1757A or a reduction of metal oxide 4769
emissions in accordance with standard D5142 of that society, or 4770
clean coal technology that includes the design capability to 4771
control or prevent the emission of carbon dioxide, which design 4772
capability the commission shall adopt by rule and shall be based 4773
on economically feasible best available technology or, in the 4774
absence of a determined best available technology, shall be of the 4775
highest level of economically feasible design capability for which 4776
there exists generally accepted scientific opinion;4777

       (d) Advanced nuclear energy technology consisting of 4778
generation III technology as defined by the nuclear regulatory 4779
commission; other, later technology; or significant improvements 4780
to existing facilities;4781

       (e) Any fuel cell used in the generation of electricity, 4782
including, but not limited to, a proton exchange membrane fuel 4783
cell, phosphoric acid fuel cell, molten carbonate fuel cell, or 4784
solid oxide fuel cell;4785

       (f) Advanced solid waste or construction and demolition 4786
debris conversion technology, including, but not limited to, 4787
advanced stoker technology, and advanced fluidized bed 4788
gasification technology, that results in measurable greenhouse gas 4789
emissions reductions as calculated pursuant to the United States 4790
environmental protection agency's waste reduction model (WARM).;4791

       (g) Demand-side management and any energy efficiency 4792
improvement;4793

       (h) Any new or repowered generating facility located in Ohio, 4794
including a simple or combined-cycle natural gas facility or a 4795
facility that uses biomass, coal, nuclear energy, or any other 4796
fuel as its input.4797

       "Advanced energy resource" does not include a waste energy 4798
recovery system that is, or has been, included in an energy 4799
efficiency program of an electric distribution utility pursuant to 4800
requirements under section 4928.66 of the Revised Code.4801

       (35) "Renewable energy resource" means solar photovoltaic or 4802
solar thermal energy, wind energy, power produced by a 4803
hydroelectric facility, geothermal energy, fuel derived from solid 4804
wastes, as defined in section 3734.01 of the Revised Code, through 4805
fractionation, biological decomposition, or other process that 4806
does not principally involve combustion, biomass energy, 4807
biologically derived methane gas, or energy derived from 4808
nontreated by-products of the pulping process or wood 4809
manufacturing process, including bark, wood chips, sawdust, and 4810
lignin in spent pulping liquors. "Renewable energy resource" 4811
includes, but is not limited to, any fuel cell used in the 4812
generation of electricity, including, but not limited to, a proton 4813
exchange membrane fuel cell, phosphoric acid fuel cell, molten 4814
carbonate fuel cell, or solid oxide fuel cell; wind turbine 4815
located in the state's territorial waters of Lake Erie; methane 4816
gas emitted from an abandoned coal mine; waste energy recovery 4817
system placed into service or retrofitted on or after the 4818
effective date of the amendment of this section by S.B. 315 of the 4819
129th general assembly, except that a waste energy recovery system 4820
described in division (A)(36)(b) of this section may have been 4821
placed into service or retrofitted before that date; storage 4822
facility that will promote the better utilization of a renewable 4823
energy resource that primarily generates off peak; or distributed 4824
generation system used by a customer to generate electricity from 4825
any such energy. "Renewable energy resource" does not include a 4826
waste energy recovery system that is, or was, on or after January 4827
1, 2012, included in an energy efficiency program of an electric 4828
distribution utility pursuant to requirements under section 4829
4928.66 of the Revised Code. As used in division (A)(35) of this 4830
section, "hydroelectric facility" means a hydroelectric generating 4831
facility that is located at a dam on a river, or on any water 4832
discharged to a river, that is within or bordering this state or 4833
within or bordering an adjoining state and meets all of the 4834
following standards:4835

       (a) The facility provides for river flows that are not 4836
detrimental for fish, wildlife, and water quality, including 4837
seasonal flow fluctuations as defined by the applicable licensing 4838
agency for the facility.4839

       (b) The facility demonstrates that it complies with the water 4840
quality standards of this state, which compliance may consist of 4841
certification under Section 401 of the "Clean Water Act of 1977," 4842
91 Stat. 1598, 1599, 33 U.S.C. 1341, and demonstrates that it has 4843
not contributed to a finding by this state that the river has 4844
impaired water quality under Section 303(d) of the "Clean Water 4845
Act of 1977," 114 Stat. 870, 33 U.S.C. 1313.4846

       (c) The facility complies with mandatory prescriptions 4847
regarding fish passage as required by the federal energy 4848
regulatory commission license issued for the project, regarding 4849
fish protection for riverine, anadromous, and catadromous fish.4850

       (d) The facility complies with the recommendations of the 4851
Ohio environmental protection agency and with the terms of its 4852
federal energy regulatory commission license regarding watershed 4853
protection, mitigation, or enhancement, to the extent of each 4854
agency's respective jurisdiction over the facility.4855

       (e) The facility complies with provisions of the "Endangered 4856
Species Act of 1973," 87 Stat. 884, 16 U.S.C. 1531 to 1544, as 4857
amended.4858

       (f) The facility does not harm cultural resources of the 4859
area. This can be shown through compliance with the terms of its 4860
federal energy regulatory commission license or, if the facility 4861
is not regulated by that commission, through development of a plan 4862
approved by the Ohio historic preservation office, to the extent 4863
it has jurisdiction over the facility.4864

       (g) The facility complies with the terms of its federal 4865
energy regulatory commission license or exemption that are related 4866
to recreational access, accommodation, and facilities or, if the 4867
facility is not regulated by that commission, the facility 4868
complies with similar requirements as are recommended by resource 4869
agencies, to the extent they have jurisdiction over the facility; 4870
and the facility provides access to water to the public without 4871
fee or charge.4872

       (h) The facility is not recommended for removal by any 4873
federal agency or agency of any state, to the extent the 4874
particular agency has jurisdiction over the facility.4875

       (36) "Waste energy recovery system" means either of the 4876
following:4877

       (a) A facility that generates electricity through the 4878
conversion of energy from either of the following:4879

       (i) Exhaust heat from engines or manufacturing, industrial, 4880
commercial, or institutional sites, except for exhaust heat from a 4881
facility whose primary purpose is the generation of electricity;4882

       (ii) Reduction of pressure in gas pipelines before gas is 4883
distributed through the pipeline, provided that the conversion of 4884
energy to electricity is achieved without using additional fossil 4885
fuels.4886

       (b) A facility at a state institution of higher education as 4887
defined in section 3345.011 of the Revised Code that recovers 4888
waste heat from electricity-producing engines or combustion 4889
turbines and that simultaneously uses the recovered heat to 4890
produce steam.4891

       (37) "Smart grid" means capital improvements to an electric 4892
distribution utility's distribution infrastructure that improve 4893
reliability, efficiency, resiliency, or reduce energy demand or 4894
use, including, but not limited to, advanced metering and 4895
automation of system functions.4896

       (38) "Combined heat and power system" means the coproduction 4897
of electricity and useful thermal energy from the same fuel source 4898
designed to achieve thermal-efficiency levels of at least sixty 4899
per cent, with at least twenty per cent of the system's total 4900
useful energy in the form of thermal energy.4901

       (B) For the purposes of this chapter, a retail electric 4902
service component shall be deemed a competitive retail electric 4903
service if the service component is competitive pursuant to a 4904
declaration by a provision of the Revised Code or pursuant to an 4905
order of the public utilities commission authorized under division 4906
(A) of section 4928.04 of the Revised Code. Otherwise, the service 4907
component shall be deemed a noncompetitive retail electric 4908
service.4909

       Sec. 4928.02.  It is the policy of this state to do the 4910
following throughout this state:4911

       (A) Ensure the availability to consumers of adequate, 4912
reliable, safe, efficient, nondiscriminatory, and reasonably 4913
priced retail electric service;4914

       (B) Ensure the availability of unbundled and comparable 4915
retail electric service that provides consumers with the supplier, 4916
price, terms, conditions, and quality options they elect to meet 4917
their respective needs;4918

       (C) Ensure diversity of electricity supplies and suppliers, 4919
by giving consumers effective choices over the selection of those 4920
supplies and suppliers and by encouraging the development of 4921
distributed and small generation facilities;4922

       (D) Encourage innovation and market access for cost-effective 4923
supply- and demand-side retail electric service including, but not 4924
limited to, demand-side management, time-differentiated pricing, 4925
waste energy recovery systems, smart grid programs, and 4926
implementation of advanced metering infrastructure;4927

       (E) Encourage cost-effective and efficient access to 4928
information regarding the operation of the transmission and 4929
distribution systems of electric utilities in order to promote 4930
both effective customer choice of retail electric service and the 4931
development of performance standards and targets for service 4932
quality for all consumers, including annual achievement reports 4933
written in plain language;4934

       (F) Ensure that an electric utility's transmission and 4935
distribution systems are available to a customer-generator or 4936
owner of distributed generation, so that the customer-generator or 4937
owner can market and deliver the electricity it produces;4938

       (G) Recognize the continuing emergence of competitive 4939
electricity markets through the development and implementation of 4940
flexible regulatory treatment;4941

       (H) Ensure effective competition in the provision of retail 4942
electric service by avoiding anticompetitive subsidies flowing 4943
from a noncompetitive retail electric service to a competitive 4944
retail electric service or to a product or service other than 4945
retail electric service, and vice versa, including by prohibiting 4946
the recovery of any generation-related costs through distribution 4947
or transmission rates;4948

       (I) Ensure retail electric service consumers protection 4949
against unreasonable sales practices, market deficiencies, and 4950
market power;4951

       (J) Provide coherent, transparent means of giving appropriate 4952
incentives to technologies that can adapt successfully to 4953
potential environmental mandates;4954

       (K) Encourage implementation of distributed generation across 4955
customer classes through regular review and updating of 4956
administrative rules governing critical issues such as, but not 4957
limited to, interconnection standards, standby charges, and net 4958
metering;4959

       (L) Protect at-risk populations, including, but not limited 4960
to, when considering the implementation of any new advanced energy 4961
or renewable energy resource;4962

       (M) Encourage the education of small business owners in this 4963
state regarding the use of, and encourage the use of, energy 4964
efficiency programs and alternative energy resources in their 4965
businesses;4966

       (N) Facilitate the state's effectiveness in the global 4967
economy.4968

       In carrying out this policy, the commission shall consider 4969
rules as they apply to the costs of electric distribution 4970
infrastructure, including, but not limited to, line extensions, 4971
for the purpose of development in this state.4972

       Sec. 4928.111.  The public utilities commission shall consult 4973
with electric distribution utilities to review the distribution 4974
infrastructure in this state and shall consult with regional 4975
transmission organizations and entities that own or control 4976
transmission facilities to review the transmission infrastructure 4977
in this state.4978

       Sec. 4928.61.  (A) There is hereby established in the state 4979
treasury the advanced energy fund, into which shall be deposited 4980
all advanced energy revenues remitted to the director of 4981
development under division (B) of this section, for the exclusive 4982
purposes of funding the advanced energy program created under 4983
section 4928.62 of the Revised Code and paying the program's 4984
administrative costs. Interest on the fund shall be credited to 4985
the fund.4986

       (B) Advanced energy revenues shall include all of the 4987
following:4988

       (1) Revenues remitted to the director after collection by 4989
each electric distribution utility in this state of a temporary 4990
rider on retail electric distribution service rates as such rates 4991
are determined by the public utilities commission pursuant to this 4992
chapter. The rider shall be a uniform amount statewide, determined 4993
by the director of development, after consultation with the public 4994
benefits advisory board created by section 4928.58 of the Revised 4995
Code. The amount shall be determined by dividing an aggregate 4996
revenue target for a given year as determined by the director, 4997
after consultation with the advisory board, by the number of 4998
customers of electric distribution utilities in this state in the 4999
prior year. Such aggregate revenue target shall not exceed more 5000
than fifteen million dollars in any year through 2005 and shall 5001
not exceed more than five million dollars in any year after 2005. 5002
The rider shall be imposed beginning on the effective date of the 5003
amendment of this section by Sub. H.B. 251 of the 126th general 5004
assembly, January 4, 2007, and shall terminate at the end of ten 5005
years following the starting date of competitive retail electric 5006
service or until the advanced energy fund, including interest, 5007
reaches one hundred million dollars, whichever is first.5008

       (2) Revenues from payments, repayments, and collections under 5009
the advanced energy program and from program income;5010

       (3) Revenues remitted to the director after collection by a 5011
municipal electric utility or electric cooperative in this state 5012
upon the utility's or cooperative's decision to participate in the 5013
advanced energy fund;5014

        (4) Revenues from renewable energy compliance payments as 5015
provided under division (C)(2) of section 4928.64 of the Revised 5016
Code;5017

       (5) Revenue from forfeitures under division (C) of section 5018
4928.66 of the Revised Code;5019

       (6) Funds transferred pursuant to division (B) of Section 5020
512.10 of S.B. 315 of the 129th general assembly;5021

       (7) Interest earnings on the advanced energy fund.5022

       (C)(1) Each electric distribution utility in this state shall 5023
remit to the director on a quarterly basis the revenues described 5024
in divisions (B)(1) and (2) of this section. Such remittances 5025
shall occur within thirty days after the end of each calendar 5026
quarter.5027

       (2) Each participating electric cooperative and participating 5028
municipal electric utility shall remit to the director on a 5029
quarterly basis the revenues described in division (B)(3) of this 5030
section. Such remittances shall occur within thirty days after the 5031
end of each calendar quarter. For the purpose of division (B)(3) 5032
of this section, the participation of an electric cooperative or 5033
municipal electric utility in the energy efficiency revolving loan 5034
program as it existed immediately prior to the effective date of 5035
the amendment of this section by Sub. H.B. 251 of the 126th 5036
general assembly, January 4, 2007, does not constitute a decision 5037
to participate in the advanced energy fund under this section as 5038
so amended.5039

       (3) All remittances under divisions (C)(1) and (2) of this 5040
section shall continue only until the end of ten years following 5041
the starting date of competitive retail electric service or until 5042
the advanced energy fund, including interest, reaches one hundred 5043
million dollars, whichever is first.5044

       (D) Any moneys collected in rates for non-low-income customer 5045
energy efficiency programs, as of October 5, 1999, and not 5046
contributed to the energy efficiency revolving loan fund 5047
authorized under this section prior to the effective date of its 5048
amendment by Sub. H.B. 251 of the 126th general assembly, January 5049
4, 2007, shall be used to continue to fund cost-effective, 5050
residential energy efficiency programs, be contributed into the 5051
universal service fund as a supplement to that required under 5052
section 4928.53 of the Revised Code, or be returned to ratepayers 5053
in the form of a rate reduction at the option of the affected 5054
electric distribution utility.5055

       Sec. 4928.62.  (A) There is hereby created the advanced 5056
energy program, which shall be administered by the director of 5057
development. Under the program, the director may authorize the use 5058
of moneys in the advanced energy fund for financial, technical, 5059
and related assistance for advanced energy projects in this state 5060
or for economic development assistance, in furtherance of the 5061
purposes set forth in section 4928.63 of the Revised Code. To5062

       (1) To the extent feasible given approved applications for 5063
assistance, the assistance shall be distributed among the 5064
certified territories of electric distribution utilities and 5065
participating electric cooperatives, and among the service areas 5066
of participating municipal electric utilities, in amounts 5067
proportionate to the remittances of each utility and cooperative 5068
under divisions (B)(1) and (3) of section 4928.61 of the Revised 5069
Code.5070

       (2) The funds described in division (B)(6) of section 4928.61 5071
of the Revised Code shall not be subject to the territorial 5072
requirements of division (A)(1) of this section.5073

       (3) The director shall not authorize financial assistance for 5074
an advanced energy project under the program unless the director 5075
first determines that the project will create new jobs or preserve 5076
existing jobs in this state or use innovative technologies or 5077
materials.5078

       (B) In carrying out sections 4928.61 to 4928.63 of the 5079
Revised Code, the director may do all of the following to further 5080
the public interest in advanced energy projects and economic 5081
development:5082

       (1) Award grants, contracts, loans, loan participation 5083
agreements, linked deposits, and energy production incentives;5084

       (2) Acquire in the name of the director any property of any 5085
kind or character in accordance with this section, by purchase, 5086
purchase at foreclosure, or exchange, on such terms and in such 5087
manner as the director considers proper;5088

       (3) Make and enter into all contracts and agreements 5089
necessary or incidental to the performance of the director's 5090
duties and the exercise of the director's powers under sections 5091
4928.61 to 4928.63 of the Revised Code;5092

       (4) Employ or enter into contracts with financial 5093
consultants, marketing consultants, consulting engineers, 5094
architects, managers, construction experts, attorneys, technical 5095
monitors, energy evaluators, or other employees or agents as the 5096
director considers necessary, and fix their compensation;5097

       (5) Adopt rules prescribing the application procedures for 5098
financial assistance under the advanced energy program; the fees, 5099
charges, interest rates, payment schedules, local match 5100
requirements, and other terms and conditions of any grants, 5101
contracts, loans, loan participation agreements, linked deposits, 5102
and energy production incentives; criteria pertaining to the 5103
eligibility of participating lending institutions; and any other 5104
matters necessary for the implementation of the program;5105

       (6) Do all things necessary and appropriate for the operation 5106
of the program.5107

       (C) The department of development may hold ownership to any 5108
unclaimed energy efficiency and renewable energy emission 5109
allowances provided for in Chapter 3745-14 of the Administrative 5110
Code or otherwise, that result from advanced energy projects that 5111
receive funding from the advanced energy fund, and it may use the 5112
allowances to further the public interest in advanced energy 5113
projects or for economic development.5114

        (D) Financial statements, financial data, and trade secrets 5115
submitted to or received by the director from an applicant or 5116
recipient of financial assistance under sections 4928.61 to 5117
4928.63 of the Revised Code, or any information taken from those 5118
statements, data, or trade secrets for any purpose, are not public 5119
records for the purpose of section 149.43 of the Revised Code.5120

       (E) Nothing in the amendments of sections 4928.61, 4928.62, 5121
and 4928.63 of the Revised Code by Sub. H.B. 251 of the 126th 5122
general assembly shall affect any pending or effected assistance, 5123
pending or effected purchases or exchanges of property made, or 5124
pending or effected contracts or agreements entered into pursuant 5125
to division (A) or (B) of this section as the section existed 5126
prior to the effective date of those amendments, January 4, 2007,5127
or shall affect the exemption provided under division (C) of this 5128
section as the section existed prior to that effective date.5129

       (F) Any assistance a school district receives for an advanced 5130
energy project, including a geothermal heating, ventilating, and 5131
air conditioning system, shall be in addition to any assistance 5132
provided under Chapter 3318. of the Revised Code and shall not be 5133
included as part of the district or state portion of the basic 5134
project cost under that chapter.5135

       Sec. 4928.64. (A)(1) As used in sections 4928.64 and 4928.65 5136
of the Revised Code, "alternative energy resource" means an 5137
advanced energy resource or renewable energy resource, as defined 5138
in section 4928.01 of the Revised Code that has a 5139
placed-in-service date of January 1, 1998, or after; a renewable 5140
energy resource created on or after January 1, 1998, by the 5141
modification or retrofit of any facility placed in service prior 5142
to January 1, 1998; or a mercantile customer-sited advanced energy 5143
resource or renewable energy resource, whether new or existing, 5144
that the mercantile customer commits for integration into the 5145
electric distribution utility's demand-response, energy 5146
efficiency, or peak demand reduction programs as provided under 5147
division (A)(2)(c) of section 4928.66 of the Revised Code, 5148
including, but not limited to, any of the following: 5149

       (a) A resource that has the effect of improving the 5150
relationship between real and reactive power; 5151

       (b) A resource that makes efficient use of waste heat or 5152
other thermal capabilities owned or controlled by a mercantile 5153
customer; 5154

       (c) Storage technology that allows a mercantile customer more 5155
flexibility to modify its demand or load and usage 5156
characteristics; 5157

       (d) Electric generation equipment owned or controlled by a 5158
mercantile customer that uses an advanced energy resource or 5159
renewable energy resource; 5160

       (e) Any advanced energy resource or renewable energy resource 5161
of the mercantile customer that can be utilized effectively as 5162
part of any advanced energy resource plan of an electric 5163
distribution utility and would otherwise qualify as an alternative 5164
energy resource if it were utilized directly by an electric 5165
distribution utility. 5166

       (2) For the purpose of this section and as it considers 5167
appropriate, the public utilities commission may classify any new 5168
technology as such an advanced energy resource or a renewable 5169
energy resource. 5170

       (B) By 2025 and thereafter, an electric distribution utility 5171
shall provide from alternative energy resources, including, at its 5172
discretion, alternative energy resources obtained pursuant to an 5173
electricity supply contract, a portion of the electricity supply 5174
required for its standard service offer under section 4928.141 of 5175
the Revised Code, and an electric services company shall provide a 5176
portion of its electricity supply for retail consumers in this 5177
state from alternative energy resources, including, at its 5178
discretion, alternative energy resources obtained pursuant to an 5179
electricity supply contract. That portion shall equal twenty-five 5180
per cent of the total number of kilowatt hours of electricity sold 5181
by the subject utility or company to any and all retail electric 5182
consumers whose electric load centers are served by that utility 5183
and are located within the utility's certified territory or, in 5184
the case of an electric services company, are served by the 5185
company and are located within this state. However, nothing in 5186
this section precludes a utility or company from providing a 5187
greater percentage. The baseline for a utility's or company's 5188
compliance with the alternative energy resource requirements of 5189
this section shall be the average of such total kilowatt hours it 5190
sold in the preceding three calendar years, except that the 5191
commission may reduce a utility's or company's baseline to adjust 5192
for new economic growth in the utility's certified territory or, 5193
in the case of an electric services company, in the company's 5194
service area in this state. 5195

       Of the alternative energy resources implemented by the 5196
subject utility or company by 2025 and thereafter: 5197

       (1) Half may be generated from advanced energy resources; 5198

       (2) At least half shall be generated from renewable energy 5199
resources, including one-half per cent from solar energy 5200
resources, in accordance with the following benchmarks: 5201

By end of year Renewable energy resources Solar energy resources 5202
2009 0.25% 0.004% 5203
2010 0.50% 0.010% 5204
2011 1% 0.030% 5205
2012 1.5% 0.060% 5206
2013 2% 0.090% 5207
2014 2.5% 0.12% 5208
2015 3.5% 0.15% 5209
2016 4.5% 0.18% 5210
2017 5.5% 0.22% 5211
2018 6.5% 0.26% 5212
2019 7.5% 0.3% 5213
2020 8.5% 0.34% 5214
2021 9.5% 0.38% 5215
2022 10.5% 0.42% 5216
2023 11.5% 0.46% 5217
2024 and each calendar year thereafter 12.5% 0.5% 5218

       (3) At least one-half of the renewable energy resources 5219
implemented by the utility or company shall be met through 5220
facilities located in this state; the remainder shall be met with 5221
resources that can be shown to be deliverable into this state. 5222

       (C)(1) The commission annually shall review an electric 5223
distribution utility's or electric services company's compliance 5224
with the most recent applicable benchmark under division (B)(2) of 5225
this section and, in the course of that review, shall identify any 5226
undercompliance or noncompliance of the utility or company that it 5227
determines is weather-related, related to equipment or resource 5228
shortages for advanced energy or renewable energy resources as 5229
applicable, or is otherwise outside the utility's or company's 5230
control. 5231

       (2) Subject to the cost cap provisions of division (C)(3) of 5232
this section, if the commission determines, after notice and 5233
opportunity for hearing, and based upon its findings in that 5234
review regarding avoidable undercompliance or noncompliance, but 5235
subject to division (C)(4) of this section, that the utility or 5236
company has failed to comply with any such benchmark, the 5237
commission shall impose a renewable energy compliance payment on 5238
the utility or company. 5239

       (a) The compliance payment pertaining to the solar energy 5240
resource benchmarks under division (B)(2) of this section shall be 5241
an amount per megawatt hour of undercompliance or noncompliance in 5242
the period under review, starting at four hundred fifty dollars 5243
for 2009, four hundred dollars for 2010 and 2011, and similarly 5244
reduced every two years thereafter through 2024 by fifty dollars, 5245
to a minimum of fifty dollars. 5246

       (b) The compliance payment pertaining to the renewable energy 5247
resource benchmarks under division (B)(2) of this section shall 5248
equal the number of additional renewable energy credits that the 5249
electric distribution utility or electric services company would 5250
have needed to comply with the applicable benchmark in the period 5251
under review times an amount that shall begin at forty-five 5252
dollars and shall be adjusted annually by the commission to 5253
reflect any change in the consumer price index as defined in 5254
section 101.27 of the Revised Code, but shall not be less than 5255
forty-five dollars. 5256

       (c) The compliance payment shall not be passed through by the 5257
electric distribution utility or electric services company to 5258
consumers. The compliance payment shall be remitted to the 5259
commission, for deposit to the credit of the advanced energy fund 5260
created under section 4928.61 of the Revised Code. Payment of the 5261
compliance payment shall be subject to such collection and 5262
enforcement procedures as apply to the collection of a forfeiture 5263
under sections 4905.55 to 4905.60 and 4905.64 of the Revised Code. 5264

       (3) An electric distribution utility or an electric services 5265
company need not comply with a benchmark under division (B)(1) or 5266
(2) of this section to the extent that its reasonably expected 5267
cost of that compliance exceeds its reasonably expected cost of 5268
otherwise producing or acquiring the requisite electricity by 5269
three per cent or more. The cost of compliance shall be calculated 5270
as though any exemption from taxes and assessments had not been 5271
granted under section 5727.75 of the Revised Code. 5272

       (4)(a) An electric distribution utility or electric services 5273
company may request the commission to make a force majeure 5274
determination pursuant to this division regarding all or part of 5275
the utility's or company's compliance with any minimum benchmark 5276
under division (B)(2) of this section during the period of review 5277
occurring pursuant to division (C)(2) of this section. The 5278
commission may require the electric distribution utility or 5279
electric services company to make solicitations for renewable 5280
energy resource credits as part of its default service before the 5281
utility's or company's request of force majeure under this 5282
division can be made. 5283

       (b) Within ninety days after the filing of a request by an 5284
electric distribution utility or electric services company under 5285
division (C)(4)(a) of this section, the commission shall determine 5286
if renewable energy resources are reasonably available in the 5287
marketplace in sufficient quantities for the utility or company to 5288
comply with the subject minimum benchmark during the review 5289
period. In making this determination, the commission shall 5290
consider whether the electric distribution utility or electric 5291
services company has made a good faith effort to acquire 5292
sufficient renewable energy or, as applicable, solar energy 5293
resources to so comply, including, but not limited to, by banking 5294
or seeking renewable energy resource credits or by seeking the 5295
resources through long-term contracts. Additionally, the 5296
commission shall consider the availability of renewable energy or 5297
solar energy resources in this state and other jurisdictions in 5298
the PJM interconnection regional transmission organization or its 5299
successor and the midwest system operator or its successor. 5300

       (c) If, pursuant to division (C)(4)(b) of this section, the 5301
commission determines that renewable energy or solar energy 5302
resources are not reasonably available to permit the electric 5303
distribution utility or electric services company to comply, 5304
during the period of review, with the subject minimum benchmark 5305
prescribed under division (B)(2) of this section, the commission 5306
shall modify that compliance obligation of the utility or company 5307
as it determines appropriate to accommodate the finding. 5308
Commission modification shall not automatically reduce the 5309
obligation for the electric distribution utility's or electric 5310
services company's compliance in subsequent years. If it modifies 5311
the electric distribution utility or electric services company 5312
obligation under division (C)(4)(c) of this section, the 5313
commission may require the utility or company, if sufficient 5314
renewable energy resource credits exist in the marketplace, to 5315
acquire additional renewable energy resource credits in subsequent 5316
years equivalent to the utility's or company's modified obligation 5317
under division (C)(4)(c) of this section. 5318

       (5) The commission shall establish a process to provide for 5319
at least an annual review of the alternative energy resource 5320
market in this state and in the service territories of the 5321
regional transmission organizations that manage transmission 5322
systems located in this state. The commission shall use the 5323
results of this study to identify any needed changes to the amount 5324
of the renewable energy compliance payment specified under 5325
divisions (C)(2)(a) and (b) of this section. Specifically, the 5326
commission may increase the amount to ensure that payment of 5327
compliance payments is not used to achieve compliance with this 5328
section in lieu of actually acquiring or realizing energy derived 5329
from renewable energy resources. However, if the commission finds 5330
that the amount of the compliance payment should be otherwise 5331
changed, the commission shall present this finding to the general 5332
assembly for legislative enactment. 5333

       (D)(1) The commission annually shall submit to the general 5334
assembly in accordance with section 101.68 of the Revised Code a 5335
report describing theall of the following:5336

       (a) The compliance of electric distribution utilities and 5337
electric services companies with division (B) of this section and 5338
any;5339

       (b) The average annual cost of renewable energy credits 5340
purchased by utilities and companies for the year covered in the 5341
report;5342

       (c) Any strategy for utility and company compliance or for 5343
encouraging the use of alternative energy resources in supplying 5344
this state's electricity needs in a manner that considers 5345
available technology, costs, job creation, and economic impacts. 5346
The5347

       The commission shall begin providing the information 5348
described in division (D)(1)(b) of this section in each report 5349
submitted after the effective date of the amendment of this 5350
section by S.B. 315 of the 129th general assembly. The commission 5351
shall allow and consider public comments on the report prior to 5352
its submission to the general assembly. Nothing in the report 5353
shall be binding on any person, including any utility or company 5354
for the purpose of its compliance with any benchmark under 5355
division (B) of this section, or the enforcement of that provision 5356
under division (C) of this section. 5357

       (2) The governor, in consultation with the commission 5358
chairperson, shall appoint an alternative energy advisory 5359
committee. The committee shall examine available technology for 5360
and related timetables, goals, and costs of the alternative energy 5361
resource requirements under division (B) of this section and shall 5362
submit to the commission a semiannual report of its 5363
recommendations. 5364

       (E) All costs incurred by an electric distribution utility in 5365
complying with the requirements of this section shall be 5366
bypassable by any consumer that has exercised choice of supplier 5367
under section 4928.03 of the Revised Code. 5368

       Sec. 4928.65. (A) An electric distribution utility or 5369
electric services company may use renewable energy credits any 5370
time in the five calendar years following the date of their 5371
purchase or acquisition from any entity, including, but not 5372
limited to, a mercantile customer or an owner or operator of a 5373
hydroelectric generating facility that is located at a dam on a 5374
river, or on any water discharged to a river, that is within or 5375
bordering this state or within or bordering an adjoining state, 5376
for the purpose of complying with the renewable energy and solar 5377
energy resource requirements of division (B)(2) of section 4928.64 5378
of the Revised Code. The public utilities commission shall adopt 5379
rules specifying that one unit of credit shall equal one megawatt 5380
hour of electricity derived from renewable energy resources, 5381
except that, for a generating facility of seventy-five megawatts 5382
or greater that is situated within this state and has committed by 5383
December 31, 2009, to modify or retrofit its generating unit or 5384
units to enable the facility to generate principally from biomass 5385
energy by June 30, 2013, each megawatt hour of electricity 5386
generated principally from that biomass energy shall equal, in 5387
units of credit, the product obtained by multiplying the actual 5388
percentage of biomass feedstock heat input used to generate such 5389
megawatt hour by the quotient obtained by dividing the then 5390
existing unit dollar amount used to determine a renewable energy 5391
compliance payment as provided under division (C)(2)(b) of section 5392
4928.64 of the Revised Code by the then existing market value of 5393
one renewable energy credit, but such megawatt hour shall not 5394
equal less than one unit of credit. The5395

       (B) Biologically derived methane gas and methane gas emitted 5396
from an abandoned coal mine shall not be required to be converted 5397
directly to electricity for purposes of creating or qualifying for 5398
renewable energy credits provided that the gas meets all of the 5399
following requirements:5400

        (1) The gas is gathered or produced in Ohio.5401

        (2) The facility that gathers or produces the gas:5402

       (a) Was placed in service on or after January 1, 1998; and5403

        (b) Is certified pursuant to commission rule as an eligible 5404
renewable energy resource generating facility.5405

       (C) The rules required by this section shall specify that the 5406
quantity of energy derived from the gas described in division (B) 5407
of this section that is equal to 3,412,142 British thermal units 5408
shall equal one unit of credit. The rules also shall provide for 5409
this state a system of registering renewable energy credits by 5410
specifying which of any generally available registries shall be 5411
used for that purpose and not by creating a registry. That 5412
selected system of registering renewable energy credits shall 5413
allow a hydroelectric generating facility to be eligible for 5414
obtaining renewable energy credits and shall allow customer-sited 5415
projects or actions the broadest opportunities to be eligible for 5416
obtaining renewable energy credits.5417

       Sec. 4928.66. (A)(1)(a) Beginning in 2009, an electric 5418
distribution utility shall implement energy efficiency programs 5419
that achieve energy savings equivalent to at least three-tenths of 5420
one per cent of the total, annual average, and normalized 5421
kilowatt-hour sales of the electric distribution utility during 5422
the preceding three calendar years to customers in this state. An 5423
energy efficiency program may include a combined heat and power 5424
system placed into service or retrofitted on or after the 5425
effective date of the amendment of this section by S.B. 315 of the 5426
129th general assembly, or a waste energy recovery system placed 5427
into service or retrofitted on or after the same date, except that 5428
a waste energy recovery system described in division (A)(36)(b) of 5429
this section may have been placed into service or retrofitted 5430
before that date. For a waste energy recovery or combined heat and 5431
power system, the savings shall be as estimated by the public 5432
utilities commission. The savings requirement, using such a 5433
three-year average, shall increase to an additional five-tenths of 5434
one per cent in 2010, seven-tenths of one per cent in 2011, 5435
eight-tenths of one per cent in 2012, nine-tenths of one per cent 5436
in 2013, one per cent from 2014 to 2018, and two per cent each 5437
year thereafter, achieving a cumulative, annual energy savings in 5438
excess of twenty-two per cent by the end of 2025. For purposes of 5439
a waste energy recovery or combined heat and power system, an 5440
electric distribution utility shall not apply more than the total 5441
annual percentage of the electric distribution utility's 5442
industrial-customer load, relative to the electric distribution 5443
utility's total load, to the annual energy savings requirement.5444

       (b) Beginning in 2009, an electric distribution utility shall 5445
implement peak demand reduction programs designed to achieve a one 5446
per cent reduction in peak demand in 2009 and an additional 5447
seventy-five hundredths of one per cent reduction each year 5448
through 2018. In 2018, the standing committees in the house of 5449
representatives and the senate primarily dealing with energy 5450
issues shall make recommendations to the general assembly 5451
regarding future peak demand reduction targets.5452

       (2) For the purposes of divisions (A)(1)(a) and (b) of this 5453
section:5454

       (a) The baseline for energy savings under division (A)(1)(a) 5455
of this section shall be the average of the total kilowatt hours 5456
the electric distribution utility sold in the preceding three 5457
calendar years, and the baseline for a peak demand reduction under 5458
division (A)(1)(b) of this section shall be the average peak 5459
demand on the utility in the preceding three calendar years, 5460
except that the commission may reduce either baseline to adjust 5461
for new economic growth in the utility's certified territory.5462

       (b) The commission may amend the benchmarks set forth in 5463
division (A)(1)(a) or (b) of this section if, after application by 5464
the electric distribution utility, the commission determines that 5465
the amendment is necessary because the utility cannot reasonably 5466
achieve the benchmarks due to regulatory, economic, or 5467
technological reasons beyond its reasonable control.5468

       (c) Compliance with divisions (A)(1)(a) and (b) of this 5469
section shall be measured by including the effects of all 5470
demand-response programs for mercantile customers of the subject 5471
electric distribution utility, all waste energy recovery systems 5472
and all combined heat and power systems, and all such mercantile 5473
customer-sited energy efficiency, including waste energy recovery 5474
and combined heat and power, and peak demand reduction programs, 5475
adjusted upward by the appropriate loss factors. Any mechanism 5476
designed to recover the cost of energy efficiency, including waste 5477
energy recovery and combined heat and power, and peak demand 5478
reduction programs under divisions (A)(1)(a) and (b) of this 5479
section may exempt mercantile customers that commit their 5480
demand-response or other customer-sited capabilities, whether 5481
existing or new, for integration into the electric distribution 5482
utility's demand-response, energy efficiency, including waste 5483
energy recovery and combined heat and power, or peak demand 5484
reduction programs, if the commission determines that that 5485
exemption reasonably encourages such customers to commit those 5486
capabilities to those programs. If a mercantile customer makes 5487
such existing or new demand-response, energy efficiency, including 5488
waste energy recovery and combined heat and power, or peak demand 5489
reduction capability available to an electric distribution utility 5490
pursuant to division (A)(2)(c) of this section, the electric 5491
utility's baseline under division (A)(2)(a) of this section shall 5492
be adjusted to exclude the effects of all such demand-response, 5493
energy efficiency, including waste energy recovery and combined 5494
heat and power, or peak demand reduction programs that may have 5495
existed during the period used to establish the baseline. The 5496
baseline also shall be normalized for changes in numbers of 5497
customers, sales, weather, peak demand, and other appropriate 5498
factors so that the compliance measurement is not unduly 5499
influenced by factors outside the control of the electric 5500
distribution utility.5501

       (d) Programs implemented by a utility may include 5502
demand-response programs, smart grid investment programs, provided 5503
that such programs are demonstrated to be cost-beneficial,5504
customer-sited programs, including waste energy recovery and 5505
combined heat and power systems, and transmission and distribution 5506
infrastructure improvements that reduce line losses. Division 5507
(A)(2)(c) of this section shall be applied to include facilitating 5508
efforts by a mercantile customer or group of those customers to 5509
offer customer-sited demand-response, energy efficiency, including 5510
waste energy recovery and combined heat and power, or peak demand 5511
reduction capabilities to the electric distribution utility as 5512
part of a reasonable arrangement submitted to the commission 5513
pursuant to section 4905.31 of the Revised Code.5514

       (e) No programs or improvements described in division 5515
(A)(2)(d) of this section shall conflict with any statewide 5516
building code adopted by the board of building standards.5517

       (B) In accordance with rules it shall adopt, the public 5518
utilities commission shall produce and docket at the commission an 5519
annual report containing the results of its verification of the 5520
annual levels of energy efficiency and of peak demand reductions 5521
achieved by each electric distribution utility pursuant to 5522
division (A) of this section. A copy of the report shall be 5523
provided to the consumers' counsel.5524

       (C) If the commission determines, after notice and 5525
opportunity for hearing and based upon its report under division 5526
(B) of this section, that an electric distribution utility has 5527
failed to comply with an energy efficiency or peak demand 5528
reduction requirement of division (A) of this section, the 5529
commission shall assess a forfeiture on the utility as provided 5530
under sections 4905.55 to 4905.60 and 4905.64 of the Revised Code, 5531
either in the amount, per day per undercompliance or 5532
noncompliance, relative to the period of the report, equal to that 5533
prescribed for noncompliances under section 4905.54 of the Revised 5534
Code, or in an amount equal to the then existing market value of 5535
one renewable energy credit per megawatt hour of undercompliance 5536
or noncompliance. Revenue from any forfeiture assessed under this 5537
division shall be deposited to the credit of the advanced energy 5538
fund created under section 4928.61 of the Revised Code.5539

       (D) The commission may establish rules regarding the content 5540
of an application by an electric distribution utility for 5541
commission approval of a revenue decoupling mechanism under this 5542
division. Such an application shall not be considered an 5543
application to increase rates and may be included as part of a 5544
proposal to establish, continue, or expand energy efficiency or 5545
conservation programs. The commission by order may approve an 5546
application under this division if it determines both that the 5547
revenue decoupling mechanism provides for the recovery of revenue 5548
that otherwise may be foregoneforgone by the utility as a result 5549
of or in connection with the implementation by the electric 5550
distribution utility of any energy efficiency or energy 5551
conservation programs and reasonably aligns the interests of the 5552
utility and of its customers in favor of those programs.5553

       (E) The commission additionally shall adopt rules that 5554
require an electric distribution utility to provide a customer 5555
upon request with two years' consumption data in an accessible 5556
form.5557

       Sec. 4928.70.  (A) The public utilities commission may 5558
periodically review any green pricing program offered in this 5559
state as part of competitive retail electric service. At the 5560
conclusion of a review, the commission may make recommendations to 5561
improve or expand the program subject of the review. 5562

       (B) The commission shall adopt rules necessary to carry out 5563
purposes of this section.5564

       Sec. 4928.71.  The public utilities commission shall study 5565
whether increased energy efficiency, demand response, generation, 5566
and transmission provide increased opportunities for customer 5567
choice. The commission shall include in the study an evaluation of 5568
emerging technologies. The commission shall commence the study not 5569
later than eighteen months after the effective date of this 5570
section. At the conclusion of the study, the commission shall 5571
prepare a report of its findings and make the report available on 5572
its web site.5573

       Sec. 4928.72. The public utilities commission may, in 5574
cooperation with the department of transportation, work with other 5575
states to develop a multi-state study on the development of 5576
compressed natural gas infrastructures for transportation.5577

       Sec. 4935.04.  (A) As used in this chapter:5578

       (1) "Major utility facility" means:5579

       (a) An electric transmission line and associated facilities 5580
of a design capacity of one hundred twenty-five kilovolts or more;5581

       (b) A gas or natural gas transmission line and associated 5582
facilities designed for, or capable of, transporting gas or 5583
natural gas at pressures in excess of one hundred twenty-five 5584
pounds per square inch.5585

       "Major utility facility" does not include electric, gas, or 5586
natural gas distributing lines and gas or natural gas gathering 5587
lines and associated facilities as defined by the public utilities 5588
commission; facilities owned or operated by industrial firms, 5589
persons, or institutions that produce or transmit gas or natural 5590
gas, or electricity primarily for their own use or as a byproduct 5591
of their operations; gas or natural gas transmission lines and 5592
associated facilities over which an agency of the United States 5593
has certificate jurisdiction; facilities owned or operated by a 5594
person furnishing gas or natural gas directly to fifteen thousand 5595
or fewer customers within this state.5596

       (2) "Person" has the meaning set forth in section 4906.01 of 5597
the Revised Code.5598

       (B) Each person owning or operating a gas or natural gas 5599
transmission line and associated facilities within this state over 5600
which an agency of the United States has certificate jurisdiction 5601
shall furnish to the commission a copy of the energy information 5602
filed by the person with that agency of the United States.5603

       (C) Each person owning or operating a major utility facility 5604
within this state, or furnishing gas, natural gas, or electricity 5605
directly to more than fifteen thousand customers within this state 5606
shall furnish a report to the commission for its review. The 5607
report shall be furnished annually, except that for a gas or 5608
natural gas company the report shall be furnished every three 5609
years. The report shall be termed the long-term forecast report 5610
and shall contain:5611

       (1) A year-by-year, ten-year forecast of annual energy 5612
demand, peak load, reserves, and a general description of the 5613
resource planplanning projections to meet demand;5614

       (2) A range of projected loads during the period;5615

       (3) A description of major utility facilities planned to be 5616
added or taken out of service in the next ten years, including, to 5617
the extent the information is available, prospective sites for 5618
transmission line locations;5619

       (4) For gas and natural gas, a projection of anticipated 5620
supply, supply prices, and sources of supply over the forecast 5621
period;5622

       (5) A description of proposed changes in the transmission 5623
system planned for the next five years;5624

       (6) A month-by-month forecast of both energy demand and peak 5625
load for electric utilities, and gas sendout for gas and natural 5626
gas utilities, for the next two years. The report shall describe 5627
the major utility facilities that, in the judgment of such person, 5628
will be required to supply system demands during the forecast 5629
period. The report from a gas or natural gas utility shall cover 5630
the ten- and five-year periods next succeeding the date of the 5631
report, and the report from an electric utility shall cover the 5632
twenty-, ten-, and five-year periods next succeeding the date of 5633
the report. Each report shall be made available to the public and 5634
furnished upon request to municipal corporations and governmental 5635
agencies charged with the duty of protecting the environment or of 5636
planning land use. The report shall be in such form and shall 5637
contain such information as may be prescribed by the commission.5638

       Each person not owning or operating a major utility facility 5639
within this state and serving fifteen thousand or fewer gas or 5640
natural gas, or electric customers within this state shall furnish 5641
such information as the commission requires.5642

       (D) The commission shall:5643

       (1) Review and comment on the reports filed under division 5644
(C) of this section, and make the information contained in the 5645
reports readily available to the public and other interested 5646
government agencies;5647

       (2) Compile and publish each year the general locations of 5648
proposed and existing transmission line routes within its 5649
jurisdiction as identified in the reports filed under division (C) 5650
of this section, identifying the general location of such sites 5651
and routes and the approximate year when construction is expected 5652
to commence, and to make such information readily available to the 5653
public, to each newspaper of daily or weekly circulation within 5654
the area affected by the proposed site and route, and to 5655
interested federal, state, and local agencies;5656

       (3) Hold a public hearing upon the showing of good cause to 5657
the commission by an interested party.5658

        If a hearing is held, the commission shall fix a time for the 5659
hearing, which shall be not later than ninety days after the 5660
report is filed, and publish notice of the date, time of day, and 5661
location of the hearing in a newspaper of general circulation in 5662
each county in which the person furnishing the report has or 5663
intends to locate a major utility facility and will provide 5664
service during the period covered by the report. The notice shall 5665
be published not less than fifteen nor more than thirty days 5666
before the hearing and shall state the matters to be considered.5667

       (4) Require such information from persons subject to its 5668
jurisdiction as necessary to assist in the conduct of hearings and 5669
any investigation or studies it may undertake;5670

       (5) Conduct any studies or investigations that are necessary 5671
or appropriate to carry out its responsibilities under this 5672
section.5673

       (E)(1) The scope of the hearing held under division (D)(3) of 5674
this section shall be limited to issues relating to forecasting. 5675
The power siting board, the office of consumers' counsel, and all 5676
other persons having an interest in the proceedings shall be 5677
afforded the opportunity to be heard and to be represented by 5678
counsel. The commission may adjourn the hearing from time to time.5679

       (2) The hearing shall include, but not be limited to, a 5680
review of:5681

       (a) The projected loads and energy requirements for each year 5682
of the period;5683

       (b) The estimated installed capacity and supplies to meet the 5684
projected load requirements.5685

       (F) Based upon the report furnished pursuant to division (C) 5686
of this section and the hearing record, the commission, within 5687
ninety days from the close of the record in the hearing, shall 5688
determine if:5689

       (1) All information relating to current activities, 5690
facilities agreements, and published energy policies of the state 5691
has been completely and accurately represented;5692

       (2) The load requirements are based on substantially accurate 5693
historical information and adequate methodology;5694

       (3) The forecasting methods consider the relationships 5695
between price and energy consumption;5696

       (4) The report identifies and projects reductions in energy 5697
demands due to energy conservation measures in the industrial, 5698
commercial, residential, transportation, and energy production 5699
sectors in the service area;5700

       (5) Utility company forecasts of loads and resources are 5701
reasonable in relation to population growth estimates made by 5702
state and federal agencies, transportation, and economic 5703
development plans and forecasts, and make recommendations where 5704
possible for necessary and reasonable alternatives to meet 5705
forecasted electric power demand;5706

       (6) The report considers plans for expansion of the regional 5707
power grid and the planned facilities of other utilities in the 5708
state;5709

       (7) All assumptions made in the forecast are reasonable and 5710
adequately documented.5711

       (G) The commission shall adopt rules under section 111.15 of 5712
the Revised Code to establish criteria for evaluating the 5713
long-term forecasts of needs for gas and electric transmission 5714
service, to conduct hearings held under this section, to establish 5715
reasonable fees to defray the direct cost of the hearings and the 5716
review process, and such other rules as are necessary and 5717
convenient to implement this section.5718

       (H) The hearing record produced under this section and the 5719
determinations of the commission shall be introduced into evidence 5720
and shall be considered in determining the basis of need for power 5721
siting board deliberations under division (A)(1) of section 5722
4906.10 of the Revised Code. The hearing record produced under 5723
this section shall be introduced into evidence and shall be 5724
considered by the public utilities commission in its initiation of 5725
programs, examinations, and findings under section 4905.70 of the 5726
Revised Code, and shall be considered in the commission's 5727
determinations with respect to the establishment of just and 5728
reasonable rates under section 4909.15 of the Revised Code and 5729
financing utility facilities and authorizing issuance of all 5730
securities under sections 4905.40, 4905.401, 4905.41, and 4905.42 5731
of the Revised Code. The forecast findings also shall serve as the 5732
basis for all other energy planning and development activities of 5733
the state government where electric and gas data are required.5734

       (I)(1) No court other than the supreme court shall have power 5735
to review, suspend, or delay any determination made by the 5736
commission under this section, or enjoin, restrain, or interfere 5737
with the commission in the performance of official duties. A writ 5738
of mandamus shall not be issued against the commission by any 5739
court other than the supreme court.5740

       (2) A final determination made by the commission shall be 5741
reversed, vacated, or modified by the supreme court on appeal, if, 5742
upon consideration of the record, such court is of the opinion 5743
that such determination was unreasonable or unlawful.5744

       The proceeding to obtain such reversal, vacation, or 5745
modification shall be by notice of appeal, filed with the 5746
commission by any party to the proceeding before it, against the 5747
commission, setting forth the determination appealed from and 5748
errors complained of. The notice of appeal shall be served, unless 5749
waived, upon the commission by leaving a copy at the office of the 5750
chairperson of the commission at Columbus. The court may permit an 5751
interested party to intervene by cross-appeal.5752

       (3) No proceeding to reverse, vacate, or modify a 5753
determination of the commission is commenced unless the notice of 5754
appeal is filed within sixty days after the date of the 5755
determination.5756

       Sec. 5703.21.  (A) Except as provided in divisions (B) and 5757
(C) of this section, no agent of the department of taxation, 5758
except in the agent's report to the department or when called on 5759
to testify in any court or proceeding, shall divulge any 5760
information acquired by the agent as to the transactions, 5761
property, or business of any person while acting or claiming to 5762
act under orders of the department. Whoever violates this 5763
provision shall thereafter be disqualified from acting as an 5764
officer or employee or in any other capacity under appointment or 5765
employment of the department.5766

       (B)(1) For purposes of an audit pursuant to section 117.15 of 5767
the Revised Code, or an audit of the department pursuant to 5768
Chapter 117. of the Revised Code, or an audit, pursuant to that 5769
chapter, the objective of which is to express an opinion on a 5770
financial report or statement prepared or issued pursuant to 5771
division (A)(7) or (9) of section 126.21 of the Revised Code, the 5772
officers and employees of the auditor of state charged with 5773
conducting the audit shall have access to and the right to examine 5774
any state tax returns and state tax return information in the 5775
possession of the department to the extent that the access and 5776
examination are necessary for purposes of the audit. Any 5777
information acquired as the result of that access and examination 5778
shall not be divulged for any purpose other than as required for 5779
the audit or unless the officers and employees are required to 5780
testify in a court or proceeding under compulsion of legal 5781
process. Whoever violates this provision shall thereafter be 5782
disqualified from acting as an officer or employee or in any other 5783
capacity under appointment or employment of the auditor of state.5784

       (2) For purposes of an internal audit pursuant to section 5785
126.45 of the Revised Code, the officers and employees of the 5786
office of internal auditing in the office of budget and management 5787
charged with conducting the internal audit shall have access to 5788
and the right to examine any state tax returns and state tax 5789
return information in the possession of the department to the 5790
extent that the access and examination are necessary for purposes 5791
of the internal audit. Any information acquired as the result of 5792
that access and examination shall not be divulged for any purpose 5793
other than as required for the internal audit or unless the 5794
officers and employees are required to testify in a court or 5795
proceeding under compulsion of legal process. Whoever violates 5796
this provision shall thereafter be disqualified from acting as an 5797
officer or employee or in any other capacity under appointment or 5798
employment of the office of internal auditing.5799

        (3) As provided by section 6103(d)(2) of the Internal Revenue 5800
Code, any federal tax returns or federal tax information that the 5801
department has acquired from the internal revenue service, through 5802
federal and state statutory authority, may be disclosed to the 5803
auditor of state or the office of internal auditing solely for 5804
purposes of an audit of the department.5805

       (4) For purposes of Chapter 3739. of the Revised Code, an 5806
agent of the department of taxation may share information with the 5807
division of state fire marshal that the agent finds during the 5808
course of an investigation.5809

       (C) Division (A) of this section does not prohibit any of the 5810
following:5811

       (1) Divulging information contained in applications, 5812
complaints, and related documents filed with the department under 5813
section 5715.27 of the Revised Code or in applications filed with 5814
the department under section 5715.39 of the Revised Code;5815

       (2) Providing information to the office of child support 5816
within the department of job and family services pursuant to 5817
section 3125.43 of the Revised Code;5818

       (3) Disclosing to the board of motor vehicle collision repair 5819
registration any information in the possession of the department 5820
that is necessary for the board to verify the existence of an 5821
applicant's valid vendor's license and current state tax 5822
identification number under section 4775.07 of the Revised Code;5823

       (4) Providing information to the administrator of workers' 5824
compensation pursuant to sections 4123.271 and 4123.591 of the 5825
Revised Code;5826

       (5) Providing to the attorney general information the 5827
department obtains under division (J) of section 1346.01 of the 5828
Revised Code;5829

       (6) Permitting properly authorized officers, employees, or 5830
agents of a municipal corporation from inspecting reports or 5831
information pursuant to rules adopted under section 5745.16 of the 5832
Revised Code;5833

       (7) Providing information regarding the name, account number, 5834
or business address of a holder of a vendor's license issued 5835
pursuant to section 5739.17 of the Revised Code, a holder of a 5836
direct payment permit issued pursuant to section 5739.031 of the 5837
Revised Code, or a seller having a use tax account maintained 5838
pursuant to section 5741.17 of the Revised Code, or information 5839
regarding the active or inactive status of a vendor's license, 5840
direct payment permit, or seller's use tax account;5841

       (8) Releasing invoices or invoice information furnished under 5842
section 4301.433 of the Revised Code pursuant to that section;5843

       (9) Providing to a county auditor notices or documents 5844
concerning or affecting the taxable value of property in the 5845
county auditor's county. Unless authorized by law to disclose 5846
documents so provided, the county auditor shall not disclose such 5847
documents;5848

       (10) Providing to a county auditor sales or use tax return or 5849
audit information under section 333.06 of the Revised Code;5850

       (11) Subject to section 4301.441 of the Revised Code, 5851
disclosing to the appropriate state agency information in the 5852
possession of the department of taxation that is necessary to 5853
verify a permit holder's gallonage or noncompliance with taxes 5854
levied under Chapter 4301. or 4305. of the Revised Code;5855

       (12) Disclosing to the department of natural resources 5856
information in the possession of the department that is necessary 5857
to verify the taxpayer's compliance with division (A)(1), (5), 5858
(6), (8), or (9) of section 5749.02 of the Revised Code and 5859
information received pursuant to section 1509.50 of the Revised 5860
Code concerning the amount due under that section;5861

       (13) Disclosing to the department of job and family services, 5862
industrial commission, and bureau of workers' compensation 5863
information in the possession of the department of taxation solely 5864
for the purpose of identifying employers that misclassify 5865
employees as independent contractors or that fail to properly 5866
report and pay employer tax liabilities. The department of 5867
taxation shall disclose only such information that is necessary to 5868
verify employer compliance with law administered by those 5869
agencies.5870

       (14) Disclosing to the Ohio casino control commission 5871
information in the possession of the department of taxation that 5872
is necessary to verify a taxpayer's compliance with section 5873
5753.02 of the Revised Code and sections related thereto.5874

       Sec. 5727.821.  (A) As used in this section, "energy 5875
education organization" means a nonprofit corporation formed under 5876
the laws of this state that meets all of the following 5877
requirements:5878

       (1) As certified by the secretary of state, the nonprofit 5879
corporation is authorized to do business in the state and is in 5880
good standing in the state;5881

       (2) The membership of the nonprofit corporation includes 5882
commercial and industrial consumers of electricity that have 5883
facilities located in the state;5884

       (3) The articles of incorporation of the nonprofit 5885
corporation, as accepted by the secretary of state, establish a 5886
system of governance that allows the votes of members to control 5887
the budgeting and scope of organization activities related to the 5888
price and availability of energy;5889

       (4) The nonprofit corporation has displayed a continuous 5890
commitment to energy education activities. 5891

       (B) A nonrefundable credit is hereby allowed against the tax 5892
levied under section 5727.81 of the Revised Code for the dues, 5893
assessments, or other contributions paid by or on behalf of a 5894
self-assessing purchaser to an energy education organization on or 5895
after January 1, 2013, and before January 1, 2026. 5896

       (C) A self-assessing purchaser that wishes to claim the 5897
credit allowed under this section for a registration year shall 5898
submit, with the self-assessing purchaser's annual application for 5899
registration required under section (C)(6) of section 5727.81 of 5900
the Revised Code, a request to claim the credit during the 5901
registration year covered by the application. The request shall 5902
state the energy education organizations to which the 5903
self-assessing purchaser, or an entity acting on behalf of the 5904
self-assessing purchaser, intends to pay dues, assessments, or 5905
other contributions during the registration year. The tax 5906
commissioner shall review each request and shall certify a 5907
self-assessing purchaser as eligible to claim the credit during a 5908
registration year with regard to each organization specified in 5909
the request that qualifies as an energy education organization 5910
under division (A) of this section. 5911

       (D)(1) A self-assessing purchaser may claim the credit 5912
allowed under this section on returns filed under section 5727.82 5913
the Revised Code during each registration year for which the 5914
self-assessing purchaser receives certification under division (C) 5915
of this section. Except as provided in divisions (D)(2) and (3) of 5916
this section, the amount of the credit shall equal the amount of 5917
dues, assessments, or other contributions paid by or on behalf of 5918
the self-assessing purchaser to energy education organizations in 5919
the preceding month. The self-assessing purchaser may carry 5920
forward any credit amount in excess of the amount of tax due under 5921
section 5727.81 of the Revised Code for a return period and shall 5922
deduct the amount of the excess credit allowed in such return 5923
period from the balance carried forward to the next return period. 5924

       (2) Not more than three million dollars of credits shall be 5925
allowed under this section in a registration year. In any month, 5926
if the amount of credits claimed on returns filed under section 5927
5727.82 of the Revised Code would cause the total amount of 5928
credits allowed for a registration year to exceed three million 5929
dollars, the tax commissioner shall reduce the amount allowed to 5930
be claimed on such returns in proportion to the ratio of the 5931
amount claimed by each taxpayer in that month to the total amount 5932
claimed by all taxpayers in that month. A taxpayer shall pay any 5933
increased tax liability resulting from the partial allowance of a 5934
credit under this division with the taxpayer's next succeeding tax 5935
return. 5936

       (3) A self-assessing purchaser shall not claim a credit under 5937
this section for dues, assessments, or other contributions paid 5938
before January 1, 2013, or after December 31, 2025.5939

       Sec. 6301.12.  (A) The office of workforce development within 5940
the department of job and family services shall comprehensively 5941
review the direct and indirect economic impact of businesses 5942
engaged in the production of horizontal wells in this state and, 5943
based on its findings, prepare an annual Ohio workforce report. 5944
The report shall include at least all of the following with 5945
respect to the industry:5946

       (1) The total number of jobs created or retained during the 5947
previous year, along with a separate breakdown of jobs created or 5948
retained for minorities based on race, ethnicity, and gender;5949

       (2) The total number of Ohio-based contractors that employ 5950
skilled construction trades;5951

       (3) The number of employees who are residents of this state;5952

       (4) The total economic impact;5953

       (5) A review of the department of development's 5954
recommendations for the establishment of an overall workforce 5955
investment public education agenda with goals and benchmarks 5956
toward maximizing job creation opportunities in the state. 5957

       (B) The office shall submit its annual Ohio workforce report 5958
to the members of the general assembly and post it on the office's 5959
internet web site.5960

       Section 101.02. That existing sections 122.075, 123.011, 5961
125.836, 131.50, 133.06, 156.01, 156.02, 156.03, 156.04, 303.213, 5962
1509.01, 1509.02, 1509.03, 1509.04, 1509.06, 1509.07, 1509.10, 5963
1509.11, 1509.22, 1509.221, 1509.222, 1509.223, 1509.23, 1509.28, 5964
1509.33, 1509.99, 1514.01, 1514.02, 1514.021, 1514.03, 1514.05, 5965
3706.27, 4905.03, 4905.90, 4905.91, 4905.95, 4906.01, 4906.03, 5966
4906.05, 4906.06, 4906.07, 4906.10, 4906.20, 4928.01, 4928.02, 5967
4928.61, 4928.62, 4928.64, 4928.65, 4928.66, 4935.04, and 5703.21 5968
of the Revised Code are hereby repealed.5969

       Section 512.10. As soon as possible after the effective date 5970
of this section, the Director of Budget and Management shall do 5971
both of the following:5972

       (A) Transfer any unexpended and unencumbered amounts received 5973
from the repayment of loans made from money in the Advanced Energy 5974
Research and Development Taxable Fund (Fund 7004), except for such 5975
amounts in the Facilities Establishment Fund (Fund 7037), to the 5976
Alternative Fuel Transportation Fund (Fund 5CG0); and5977

       (B) Transfer any unexpended and unencumbered amounts in the 5978
Advanced Energy Research and Development Taxable Fund (Fund 7004) 5979
and the Advanced Energy Research and Development Fund (Fund 7005) 5980
to the Advanced Energy Fund (Fund 5M50).5981

       Section 601.10. That Section 245.10 of Am. Sub. H.B. 153 of 5982
the 129th General Assembly be amended to read as follows:5983

       Sec. 245.10. OCC OFFICE OF CONSUMERS' COUNSEL5984

General Services Fund Group5985

5F50 053601 Operating Expenses $ 5,641,093 $ 4,142,070 5,641,093 5986
TOTAL GSF General Services Fund Group $ 5,641,093 $ 4,142,070 5,641,093 5987
TOTAL ALL BUDGET FUND GROUPS $ 5,641,093 $ 4,142,070 5,641,093 5988


       Section 610.11. That existing Section 245.10 of Am. Sub. H.B. 5990
153 of the 129th General Assembly is hereby repealed.5991

       Section 701.10. The Department of Administrative Services and 5992
the Department of Transportation cooperatively shall analyze their 5993
respective motor vehicle fleets to determine whether it is 5994
beneficial to establish standards for vehicle replacement in order 5995
to increase the overall efficiency of the state motor vehicle 5996
fleet. Not later than September 1, 2012, the Department of 5997
Administrative Services and the Department of Transportation shall 5998
produce a joint report with their findings and shall deliver the 5999
report to the Speaker of the House of Representatives, the 6000
Minority Leader of the House of Representatives, the President of 6001
the Senate, the Minority Leader of the Senate, and the Governor.6002

       Section 715.10. The injection well disposal fees levied by 6003
section 1509.22 of the Revised Code, as amended by this act, are a 6004
continuation of the injection well disposal fees levied by section 6005
1509.221 of the Revised Code as that section existed prior to its 6006
amendment by this act.6007

       Section 715.20. (A) Not later than eighteen months after the 6008
effective date of this section, the Directors of Natural Resources 6009
and Transportation jointly shall prepare a report analyzing the 6010
effectiveness of agreements executed pursuant to division 6011
(A)(11)(b) of section 1509.06 of the Revised Code, as amended by 6012
this act.6013

        (B) The Directors shall prepare the report with input from 6014
all of the following:6015

        (1) A statewide organization representing county 6016
commissioners;6017

        (2) A statewide organization representing county engineers;6018

        (3) A statewide organization representing municipal 6019
corporations;6020

        (4) A statewide organization representing township trustees;6021

        (5) A statewide organization representing the oil and gas 6022
industry.6023

        (C) The Directors shall provide the report to each member of 6024
the General Assembly and to the Governor.6025

       Section 737.10. (A) The Director of Environmental Protection, 6026
in coordination with the Department of Natural Resources, the 6027
United States Environmental Protection Agency, and other entities 6028
as determined appropriate by the Director, shall coordinate the 6029
evaluation of emerging wastewater treatment and recycling 6030
technologies that may reduce reliance on underground injection 6031
wells and may assist in the advancement of industry in this state, 6032
including the exploration and production of oil and gas. As part 6033
of the evaluation, the Director may initiate, participate in, 6034
oversee, or consult on pilot projects regarding wastewater 6035
treatment and recycling technologies.6036

       (B) The Director of Environmental Protection, in coordination 6037
with the Public Utilities Commission of Ohio, the United States 6038
Environmental Protection Agency, and other entities as determined 6039
appropriate by the Director, shall conduct a study that identifies 6040
current and future environmental regulatory requirements and how 6041
those requirements may impact current and future power generation 6042
and transmission in this state.6043

       Section 755.10. The Department of Transportation and the 6044
Public Utilities Commission cooperatively shall analyze the cost 6045
effectiveness of purchasing vehicles that operate on compressed 6046
natural gas and the conversion of certain state motor vehicles to 6047
operate on compressed natural gas. Not later than January 30, 6048
2013, the Department and the Commission shall produce a joint 6049
report with their findings and shall deliver the report to the 6050
Speaker of the House of Representatives, the Minority Leader of 6051
the House of Representatives, the President of the Senate, the 6052
Minority Leader of the Senate, and the Governor.6053

       Section 812.20. Section exempt from referendum: general 6054
effective date. The amendment by this act of section 133.06 of the 6055
Revised Code and Sections 601.10, 601.11, and 701.10 of this act 6056
are exempt from the referendum under Ohio Constitution, Article 6057
II, Section 1d and section 1.471 of the Revised Code and therefore 6058
take effect immediately when this act becomes law.6059

       Section 815.10.  The General Assembly, applying the principle 6060
stated in division (B) of section 1.52 of the Revised Code that 6061
amendments are to be harmonized if reasonably capable of 6062
simultaneous operation, finds that the following section, 6063
presented in this act as a composite of the section as amended by 6064
the acts indicated, is the resulting version of the section in 6065
effect prior to the effective date of the section as presented in 6066
this act:6067

       Section 4928.01 of the Revised Code as amended by Am. Sub. 6068
S.B. 181 and Am. Sub. S.B. 232 of the 128th General Assembly.6069