As Introduced

130th General Assembly Regular Session 2013-2014

H. B. No. 148

Representatives Driehaus, Hagan, R. 

Cosponsors: Representatives Antonio, Lundy, Boyd 

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A BILL

To amend sections 1509.01, 1509.02, 1509.03, 1509.05,

1

1509.06, 1509.08, 1509.21, 1509.22, 1509.222,

2

1509.223, and 1509.224, to enact section 1509.051,

3

and to repeal section 1509.226 of the Revised Code

4

to prohibit land application and deep well

5

injection of brine, to prohibit the conversion of

6

wells, and to eliminate the injection fee that is

7

levied under the Oil and Gas Law.

8

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

Section 1. That sections 1509.01, 1509.02, 1509.03, 1509.05,	9
1509.06, 1509.08, 1509.21, 1509.22, 1509.222, 1509.223, and	10
1509.224 be amended and section 1509.051 of the Revised Code be	11
enacted to read as follows:	12

Sec. 1509.01.  As used in this chapter:

13

(A) "Well" means any borehole, whether drilled or bored,	14
within the state for production, extraction, or injection of any	15
gas or liquid mineral, excluding potable water to be used as such,	16
but including natural or artificial brines and oil field waters.	17

(B) "Oil" means crude petroleum oil and all other	18
hydrocarbons, regardless of gravity, that are produced in liquid	19
form by ordinary production methods, but does not include	20
hydrocarbons that were originally in a gaseous phase in the	21
reservoir.	22

(C) "Gas" means all natural gas and all other fluid	23
hydrocarbons that are not oil, including condensate.	24

(D) "Condensate" means liquid hydrocarbons separated at or	25
near the well pad or along the gas production or gathering system	26
prior to gas processing.	27

(E) "Pool" means an underground reservoir containing a common	28
accumulation of oil or gas, or both, but does not include a gas	29
storage reservoir. Each zone of a geological structure that is	30
completely separated from any other zone in the same structure may	31
contain a separate pool.	32

(F) "Field" means the general area underlaid by one or more	33
pools.	34

(G) "Drilling unit" means the minimum acreage on which one	35
well may be drilled, but does not apply to a well for injecting	36
gas into or removing gas from a gas storage reservoir.	37

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

38

(1) Physical waste, as that term generally is understood in	39
the oil and gas industry;	40

(2) Inefficient, excessive, or improper use, or the	41
unnecessary dissipation, of reservoir energy;	42

(3) Inefficient storing of oil or gas;

43

(4) Locating, drilling, equipping, operating, or producing an	44
oil or gas well in a manner that reduces or tends to reduce the	45
quantity of oil or gas ultimately recoverable under prudent and	46
proper operations from the pool into which it is drilled or that	47
causes or tends to cause unnecessary or excessive surface loss or	48
destruction of oil or gas;	49

(5) Other underground or surface waste in the production or	50
storage of oil, gas, or condensate, however caused.	51

(I) "Correlative rights" means the reasonable opportunity to	52
every person entitled thereto to recover and receive the oil and	53
gas in and under the person's tract or tracts, or the equivalent	54
thereof, without having to drill unnecessary wells or incur other	55
unnecessary expense.	56

(J) "Tract" means a single, individually taxed parcel of land	57
appearing on the tax list.	58

(K) "Owner," unless referring to a mine, means the person who	59
has the right to drill on a tract or drilling unit, to drill into	60
and produce from a pool, and to appropriate the oil or gas	61
produced therefrom either for the person or for others, except	62
that a person ceases to be an owner with respect to a well when	63
the well has been plugged in accordance with applicable rules	64
adopted and orders issued under this chapter. "Owner" does not	65
include a person who obtains a lease of the mineral rights for oil	66
and gas on a parcel of land if the person does not attempt to	67
produce or produce oil or gas from a well or obtain a permit under	68
this chapter for a well or if the entire interest of a well is	69
transferred to the person in accordance with division (B) of	70
section 1509.31 of the Revised Code.	71

(L) "Royalty interest" means the fee holder's share in the	72
production from a well.	73

(M) "Discovery well" means the first well capable of	74
producing oil or gas in commercial quantities from a pool.	75

(N) "Prepared clay" means a clay that is plastic and is	76
thoroughly saturated with fresh water to a weight and consistency	77
great enough to settle through saltwater in the well in which it	78
is to be used, except as otherwise approved by the chief of the	79
division of oil and gas resources management.	80

(O) "Rock sediment" means the combined cutting and residue	81
from drilling sedimentary rocks and formation.	82

(P) "Excavations and workings," "mine," and "pillar" have the	83
same meanings as in section 1561.01 of the Revised Code.	84

(Q) "Coal bearing township" means a township designated as	85
such by the chief of the division of mineral resources management	86
under section 1561.06 of the Revised Code.	87

(R) "Gas storage reservoir" means a continuous area of a	88
subterranean porous sand or rock stratum or strata into which gas	89
is or may be injected for the purpose of storing it therein and	90
removing it therefrom and includes a gas storage reservoir as	91
defined in section 1571.01 of the Revised Code.	92

(S) "Safe Drinking Water Act" means the "Safe Drinking Water	93
Act," 88 Stat. 1661 (1974), 42 U.S.C.A. 300(f), as amended by the	94
"Safe Drinking Water Amendments of 1977," 91 Stat. 1393, 42	95
U.S.C.A. 300(f), the "Safe Drinking Water Act Amendments of 1986,"	96
100 Stat. 642, 42 U.S.C.A. 300(f), and the "Safe Drinking Water	97
Act Amendments of 1996," 110 Stat. 1613, 42 U.S.C.A. 300(f), and	98
regulations adopted under those acts.	99

(T) "Person" includes any political subdivision, department,	100
agency, or instrumentality of this state; the United States and	101
any department, agency, or instrumentality thereof; and any legal	102
entity defined as a person under section 1.59 of the Revised Code.	103

(U) "Brine" means all saline geological formation water	104
resulting from, obtained from, or produced in connection with	105
exploration, drilling, well stimulation, production of oil or gas,	106
or plugging of a well.	107

(V) "Waters of the state" means all streams, lakes, ponds,	108
marshes, watercourses, waterways, springs, irrigation systems,	109
drainage systems, and other bodies of water, surface or	110
underground, natural or artificial, that are situated wholly or	111
partially within this state or within its jurisdiction, except	112
those private waters that do not combine or effect a junction with	113
natural surface or underground waters.	114

(W) "Exempt Mississippian well" means a well that meets all	115
of the following criteria:	116

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

117

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

118

(3) Was completed in a reservoir no deeper than the	119
Mississippian Big Injun sandstone in areas underlain by	120
Pennsylvanian or Permian stratigraphy, or the Mississippian Berea	121
sandstone in areas directly underlain by Permian stratigraphy;	122

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

123

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

(1) Is owned by the owner of the surface estate of the tract	126
on which the well is located;	127

(2) Is used primarily to provide gas for the owner's domestic	128
use;	129

(3) Is located more than two hundred feet horizontal distance	130
from any inhabited private dwelling house other than an inhabited	131
private dwelling house located on the tract on which the well is	132
located;	133

(4) Is located more than two hundred feet horizontal distance	134
from any public building that may be used as a place of resort,	135
assembly, education, entertainment, lodging, trade, manufacture,	136
repair, storage, traffic, or occupancy by the public.	137

(Y) "Urbanized area" means an area where a well or production	138
facilities of a well are located within a municipal corporation or	139
within a township that has an unincorporated population of more	140
than five thousand in the most recent federal decennial census	141
prior to the issuance of the permit for the well or production	142
facilities.	143

(Z) "Well stimulation" or "stimulation of a well" means the	144
process of enhancing well productivity, including hydraulic	145
fracturing operations.	146

(AA) "Production operation" means all operations and	147
activities and all related equipment, facilities, and other	148
structures that may be used in or associated with the exploration	149
and production of oil, gas, or other mineral resources that are	150
regulated under this chapter, including operations and activities	151
associated with site preparation, site construction, access road	152
construction, well drilling, well completion, well stimulation,	153
well site activities, reclamation, and plugging. "Production	154
operation" also includes all of the following:	155

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

(2) The processes of extraction and recovery, lifting,	159
stabilization, treatment, separation, production processing,	160
storage, waste disposal, and measurement of hydrocarbon gas and	161
liquids, including related equipment and facilities;	162

(3) The processes and related equipment and facilities	163
associated with production compression, gas lift, gas injection,	164
fuel gas supply, well drilling, well stimulation, and well	165
completion activities, including dikes, pits, and earthen and	166
other impoundments used for the temporary storage of fluids and	167
waste substances associated with well drilling, well stimulation,	168
and well completion activities.	169

(BB) "Annular overpressurization" means the accumulation of	170
fluids within an annulus with sufficient pressure to allow	171
migration of annular fluids into underground sources of drinking	172
water.	173

(CC) "Idle and orphaned well" means a well for which a bond	174
has been forfeited or an abandoned well for which no money is	175
available to plug the well in accordance with this chapter and	176
rules adopted under it.	177

(DD) "Temporarily inactive well" means a well that has been	178
granted temporary inactive status under section 1509.062 of the	179
Revised Code.	180

(EE) "Material and substantial violation" means any of the	181
following:	182

(1) Failure to obtain a permit to drill, reopen, convert,	183
plugback, or plug a well under this chapter;	184

(2) Failure to obtain, maintain, update, or submit proof of	185
insurance coverage that is required under this chapter;	186

(3) Failure to obtain, maintain, update, or submit proof of a	187
surety bond that is required under this chapter;	188

(4) Failure to plug an abandoned well or idle and orphaned	189
well unless the well has been granted temporary inactive status	190
under section 1509.062 of the Revised Code or the chief of the	191
division of oil and gas resources management has approved another	192
option concerning the abandoned well or idle and orphaned well;	193

(5) Failure to restore a disturbed land surface as required	194
by section 1509.072 of the Revised Code;	195

(6) Failure to reimburse the oil and gas well fund pursuant	196
to a final order issued under section 1509.071 of the Revised	197
Code;	198

(7) Failure to comply with a final nonappealable order of the	199
chief issued under section 1509.04 of the Revised Code;	200

(8) Failure to submit a report, test result, fee, or document	201
that is required in this chapter or rules adopted under it.	202

(FF) "Severer" has the same meaning as in section 5749.01 of	203
the Revised Code.	204

(GG) "Horizontal well" means a well that is drilled for the	205
production of oil or gas in which the wellbore reaches a	206
horizontal or near horizontal position in the Point Pleasant,	207
Utica, or Marcellus formation and the well is stimulated.	208

(HH) "Well pad" means the area that is cleared or prepared	209
for the drilling of one or more horizontal wells.	210

Sec. 1509.02.  There is hereby created in the department of	211
natural resources the division of oil and gas resources	212
management, which shall be administered by the chief of the	213
division of oil and gas resources management. The division has	214
sole and exclusive authority to regulate the permitting, location,	215
and spacing of oil and gas wells and production operations within	216
the state, excepting only those activities regulated under federal	217
laws for which oversight has been delegated to the environmental	218
protection agency and activities regulated under sections 6111.02	219
to 6111.029 of the Revised Code. The regulation of oil and gas	220
activities is a matter of general statewide interest that requires	221
uniform statewide regulation, and this chapter and rules adopted	222
under it constitute a comprehensive plan with respect to all	223
aspects of the locating, drilling, well stimulation, completing,	224
and operating of oil and gas wells within this state, including	225
site construction and restoration, permitting related to those	226
activities, and the disposal of wastes from those wells. In order	227
to assist the division in the furtherance of its sole and	228
exclusive authority as established in this section, the chief may	229
enter into cooperative agreements with other state agencies for	230
advice and consultation, including visitations at the surface	231
location of a well on behalf of the division. Such cooperative	232
agreements do not confer on other state agencies any authority to	233
administer or enforce this chapter and rules adopted under it. In	234
addition, such cooperative agreements shall not be construed to	235
dilute or diminish the division's sole and exclusive authority as	236
established in this section. Nothing in this section affects the	237
authority granted to the director of transportation and local	238
authorities in section 723.01 or 4513.34 of the Revised Code,	239
provided that the authority granted under those sections shall not	240
be exercised in a manner that discriminates against, unfairly	241
impedes, or obstructs oil and gas activities and operations	242
regulated under this chapter.	243

The chief shall not hold any other public office, nor shall	244
the chief be engaged in any occupation or business that might	245
interfere with or be inconsistent with the duties as chief.	246

All moneys collected by the chief pursuant to sections	247
1509.06, 1509.061, 1509.062, 1509.071, 1509.13, 1509.22, 1509.222,	248
1509.28, 1509.34, and 1509.50 of the Revised Code, ninety per cent	249
of moneys received by the treasurer of state from the tax levied	250
in divisions (A)(5) and (6) of section 5749.02 of the Revised	251
Code, all civil penalties paid under section 1509.33 of the	252
Revised Code, and, notwithstanding any section of the Revised Code	253
relating to the distribution or crediting of fines for violations	254
of the Revised Code, all fines imposed under divisions (A) and (B)	255
of section 1509.99 of the Revised Code and fines imposed under	256
divisions (C) and (D) of section 1509.99 of the Revised Code for	257
all violations prosecuted by the attorney general and for	258
violations prosecuted by prosecuting attorneys that do not involve	259
the transportation of brine by vehicle shall be deposited into the	260
state treasury to the credit of the oil and gas well fund, which	261
is hereby created. Fines imposed under divisions (C) and (D) of	262
section 1509.99 of the Revised Code for violations prosecuted by	263
prosecuting attorneys that involve the transportation of brine by	264
vehicle and penalties associated with a compliance agreement	265
entered into pursuant to this chapter shall be paid to the county	266
treasury of the county where the violation occurred.	267

The fund shall be used solely and exclusively for the	268
purposes enumerated in division (B) of section 1509.071 of the	269
Revised Code, for the expenses of the division associated with the	270
administration of this chapter and Chapter 1571. of the Revised	271
Code and rules adopted under them, and for expenses that are	272
critical and necessary for the protection of human health and	273
safety and the environment related to oil and gas production in	274
this state. The expenses of the division in excess of the moneys	275
available in the fund shall be paid from general revenue fund	276
appropriations to the department.	277

Sec. 1509.03. (A) The chief of the division of oil and gas	278
resources management shall adopt, rescind, and amend, in	279
accordance with Chapter 119. of the Revised Code, rules for the	280
administration, implementation, and enforcement of this chapter.	281
The rules shall include an identification of the subjects that the	282
chief shall address when attaching terms and conditions to a	283
permit with respect to a well and production facilities of a well	284
that are located within an urbanized area or with respect to a	285
horizontal well and production facilities associated with a	286
horizontal well. The subjects shall include all of the following:	287

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

288

(2) Protection of the public and private water supply,	289
including the amount of water used and the source or sources of	290
the water;	291

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

292

(4) Containment and disposal of drilling and production	293
wastes;	294

(5) Construction of access roads for purposes of the drilling	295
and operation of a well;	296

(6) Noise mitigation for purposes of the drilling of a well	297
and the operation of a well, excluding safety and maintenance	298
operations.	299

No person shall violate any rule of the chief adopted under	300
this chapter.	301

(B)(1) Any order issuing, denying, or modifying a permit or	302
notices required to be made by the chief pursuant to this chapter	303
shall be made in compliance with Chapter 119. of the Revised Code,	304
except that personal service may be used in lieu of service by	305
mail. Every order issuing, denying, or modifying a permit under	306
this chapter and described as such shall be considered an	307
adjudication order for purposes of Chapter 119. of the Revised	308
Code. Division (B)(1) of this section does not apply to a permit	309
issued under section 1509.06 of the Revised Code.	310

(2) Where notice to the owners is required by this chapter,	311
the notice shall be given as prescribed by a rule adopted by the	312
chief to govern the giving of notices. The rule shall provide for	313
notice by publication except in those cases where other types of	314
notice are necessary in order to meet the requirements of the law.	315

(C) The chief or the chief's authorized representative may at	316
any time enter upon lands, public or private, for the purpose of	317
administration or enforcement of this chapter, the rules adopted	318
or orders made thereunder, or terms or conditions of permits or	319
registration certificates issued thereunder and may examine and	320
copy records pertaining to the drilling, conversion, or operation	321
of a well for injection of fluids and logs required by division	322
(C) of section 1509.223 of the Revised Code. No person shall	323
prevent or hinder the chief or the chief's authorized	324
representative in the performance of official duties. If entry is	325
prevented or hindered, the chief or the chief's authorized	326
representative may apply for, and the court of common pleas may	327
issue, an appropriate inspection warrant necessary to achieve the	328
purposes of this chapter within the court's territorial	329
jurisdiction.	330

(D) The chief may issue orders to enforce this chapter, rules	331
adopted thereunder, and terms or conditions of permits issued	332
thereunder. Any such order shall be considered an adjudication	333
order for the purposes of Chapter 119. of the Revised Code. No	334
person shall violate any order of the chief issued under this	335
chapter. No person shall violate a term or condition of a permit	336
or registration certificate issued under this chapter.	337

(E) Orders of the chief denying, suspending, or revoking a	338
registration certificate; approving or denying approval of an	339
application for revision of a registered transporter's plan for	340
disposal; or to implement, administer, or enforce division (A) of	341
section 1509.224 and sections 1509.22, 1509.222, 1509.223, and	342
1509.225, and 1509.226 of the Revised Code pertaining to the	343
transportation of brine by vehicle and the disposal of brine so	344
transported are not adjudication orders for purposes of Chapter	345
119. of the Revised Code. The chief shall issue such orders under	346
division (A) or (B) of section 1509.224 of the Revised Code, as	347
appropriate.	348

Sec. 1509.05.  No person shall drill a new well, drill an	349
existing well any deeper, reopen a well, convert a well to any use	350
other than its original purpose, or plug back a well to a source	351
of supply different from the existing pool, without having a	352
permit to do so issued by the chief of the division of oil and gas	353
resources management, and until the original permit or a	354
photostatic copy thereof is posted or displayed in a conspicuous	355
and easily accessible place at the well site, with the name,	356
current address, and telephone number of the permit holder and the	357
telephone numbers for fire and emergency medical services	358
maintained on the posted permit or copy. The permit or a copy	359
shall be continuously displayed in that manner at all times during	360
the work authorized by the permit.	361

Sec. 1509.051. No person shall convert a well to a use other	362
than its original purpose.	363

Sec. 1509.06. (A) An application for a permit to drill a new	364
well, drill an existing well deeper, reopen a well, convert a well	365
to any use other than its original purpose, or plug back a well to	366
a different source of supply, including associated production	367
operations, shall be filed with the chief of the division of oil	368
and gas resources management upon such form as the chief	369
prescribes and shall contain each of the following that is	370
applicable:	371

(1) The name and address of the owner and, if a corporation,	372
the name and address of the statutory agent;	373

(2) The signature of the owner or the owner's authorized	374
agent. When an authorized agent signs an application, it shall be	375
accompanied by a certified copy of the appointment as such agent.	376

(3) The names and addresses of all persons holding the	377
royalty interest in the tract upon which the well is located or is	378
to be drilled or within a proposed drilling unit;	379

(4) The location of the tract or drilling unit on which the	380
well is located or is to be drilled identified by section or lot	381
number, city, village, township, and county;	382

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

383

(6)(a) The geological formation to be tested or used and the	384
proposed total depth of the well;	385

(b) If the well is for the injection of a liquid, identity of	386
the geological formation to be used as the injection zone and the	387
composition of the liquid to be injected.	388

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

389

(8)(a) An identification, to the best of the owner's	390
knowledge, of each proposed source of ground water and surface	391
water that will be used in the production operations of the well.	392
The identification of each proposed source of water shall indicate	393
if the water will be withdrawn from the Lake Erie watershed or the	394
Ohio river watershed. In addition, the owner shall provide, to the	395
best of the owner's knowledge, the proposed estimated rate and	396
volume of the water withdrawal for the production operations. If	397
recycled water will be used in the production operations, the	398
owner shall provide the estimated volume of recycled water to be	399
used. The owner shall submit to the chief an update of any of the	400
information that is required by division (A)(8)(a) of this section	401
if any of that information changes before the chief issues a	402
permit for the application.	403

(b) Except as provided in division (A)(8)(c) of this section,	404
for an application for a permit to drill a new well within an	405
urbanized area, the results of sampling of water wells within	406
three hundred feet of the proposed well prior to commencement of	407
drilling. In addition, the owner shall include a list that	408
identifies the location of each water well where the owner of the	409
property on which the water well is located denied the owner	410
access to sample the water well. The sampling shall be conducted	411
in accordance with the guidelines established in "Best Management	412
Practices For Pre-drilling Water Sampling" in effect at the time	413
that the application is submitted. The division shall furnish	414
those guidelines upon request and shall make them available on the	415
division's web site. If the chief determines that conditions at	416
the proposed well site warrant a revision, the chief may revise	417
the distance established in this division for purposes of	418
pre-drilling water sampling.	419

(c) For an application for a permit to drill a new horizontal	420
well, the results of sampling of water wells within one thousand	421
five hundred feet of the proposed horizontal wellhead prior to	422
commencement of drilling. In addition, the owner shall include a	423
list that identifies the location of each water well where the	424
owner of the property on which the water well is located denied	425
the owner access to sample the water well. The sampling shall be	426
conducted in accordance with the guidelines established in "Best	427
Management Practices For Pre-drilling Water Sampling" in effect at	428
the time that the application is submitted. The division shall	429
furnish those guidelines upon request and shall make them	430
available on the division's web site. If the chief determines that	431
conditions at the proposed well site warrant a revision, the chief	432
may revise the distance established in this division for purposes	433
of pre-drilling water sampling.	434

(9) For an application for a permit to drill a new well	435
within an urbanized area, a sworn statement that the applicant has	436
provided notice by regular mail of the application to the owner of	437
each parcel of real property that is located within five hundred	438
feet of the surface location of the well and to the executive	439
authority of the municipal corporation or the board of township	440
trustees of the township, as applicable, in which the well is to	441
be located. In addition, the notice shall contain a statement that	442
informs an owner of real property who is required to receive the	443
notice under division (A)(9) of this section that within five days	444
of receipt of the notice, the owner is required to provide notice	445
under section 1509.60 of the Revised Code to each residence in an	446
occupied dwelling that is located on the owner's parcel of real	447
property. The notice shall contain a statement that an application	448
has been filed with the division of oil and gas resources	449
management, identify the name of the applicant and the proposed	450
well location, include the name and address of the division, and	451
contain a statement that comments regarding the application may be	452
sent to the division. The notice may be provided by hand delivery	453
or regular mail. The identity of the owners of parcels of real	454
property shall be determined using the tax records of the	455
municipal corporation or county in which a parcel of real property	456
is located as of the date of the notice.	457

(10) A plan for restoration of the land surface disturbed by	458
drilling operations. The plan shall provide for compliance with	459
the restoration requirements of division (A) of section 1509.072	460
of the Revised Code and any rules adopted by the chief pertaining	461
to that restoration.	462

(11)(a) A description by name or number of the county,	463
township, and municipal corporation roads, streets, and highways	464
that the applicant anticipates will be used for access to and	465
egress from the well site;	466

(b) For an application for a permit for a horizontal well, a	467
copy of an agreement concerning maintenance and safe use of the	468
roads, streets, and highways described in division (A)(11)(a) of	469
this section entered into on reasonable terms with the public	470
official that has the legal authority to enter into such	471
maintenance and use agreements for each county, township, and	472
municipal corporation, as applicable, in which any such road,	473
street, or highway is located or an affidavit on a form prescribed	474
by the chief attesting that the owner attempted in good faith to	475
enter into an agreement under division (A)(11)(b) of this section	476
with the applicable public official of each such county, township,	477
or municipal corporation, but that no agreement was executed.	478

(12) Such other relevant information as the chief prescribes	479
by rule.	480

Each application shall be accompanied by a map, on a scale	481
not smaller than four hundred feet to the inch, prepared by an	482
Ohio registered surveyor, showing the location of the well and	483
containing such other data as may be prescribed by the chief. If	484
the well is or is to be located within the excavations and	485
workings of a mine, the map also shall include the location of the	486
mine, the name of the mine, and the name of the person operating	487
the mine.	488

(B) The chief shall cause a copy of the weekly circular	489
prepared by the division to be provided to the county engineer of	490
each county that contains active or proposed drilling activity.	491
The weekly circular shall contain, in the manner prescribed by the	492
chief, the names of all applicants for permits, the location of	493
each well or proposed well, the information required by division	494
(A)(11) of this section, and any additional information the chief	495
prescribes. In addition, the chief promptly shall transfer an	496
electronic copy or facsimile, or if those methods are not	497
available to a municipal corporation or township, a copy via	498
regular mail, of a drilling permit application to the clerk of the	499
legislative authority of the municipal corporation or to the clerk	500
of the township in which the well or proposed well is or is to be	501
located if the legislative authority of the municipal corporation	502
or the board of township trustees has asked to receive copies of	503
such applications and the appropriate clerk has provided the chief	504
an accurate, current electronic mailing address or facsimile	505
number, as applicable.	506

(C)(1) Except as provided in division (C)(2) of this section,	507
the chief shall not issue a permit for at least ten days after the	508
date of filing of the application for the permit unless, upon	509
reasonable cause shown, the chief waives that period or a request	510
for expedited review is filed under this section. However, the	511
chief shall issue a permit within twenty-one days of the filing of	512
the application unless the chief denies the application by order.	513

(2) If the location of a well or proposed well will be or is	514
within an urbanized area, the chief shall not issue a permit for	515
at least eighteen days after the date of filing of the application	516
for the permit unless, upon reasonable cause shown, the chief	517
waives that period or the chief at the chief's discretion grants a	518
request for an expedited review. However, the chief shall issue a	519
permit for a well or proposed well within an urbanized area within	520
thirty days of the filing of the application unless the chief	521
denies the application by order.	522

(D) An applicant may file a request with the chief for	523
expedited review of a permit application if the well is not or is	524
not to be located in a gas storage reservoir or reservoir	525
protective area, as "reservoir protective area" is defined in	526
section 1571.01 of the Revised Code. If the well is or is to be	527
located in a coal bearing township, the application shall be	528
accompanied by the affidavit of the landowner prescribed in	529
section 1509.08 of the Revised Code.	530

In addition to a complete application for a permit that meets	531
the requirements of this section and the permit fee prescribed by	532
this section, a request for expedited review shall be accompanied	533
by a separate nonrefundable filing fee of two hundred fifty	534
dollars. Upon the filing of a request for expedited review, the	535
chief shall cause the county engineer of the county in which the	536
well is or is to be located to be notified of the filing of the	537
permit application and the request for expedited review by	538
telephone or other means that in the judgment of the chief will	539
provide timely notice of the application and request. The chief	540
shall issue a permit within seven days of the filing of the	541
request unless the chief denies the application by order.	542
Notwithstanding the provisions of this section governing expedited	543
review of permit applications, the chief may refuse to accept	544
requests for expedited review if, in the chief's judgment, the	545
acceptance of the requests would prevent the issuance, within	546
twenty-one days of their filing, of permits for which applications	547
are pending.	548

(E) A well shall be drilled and operated in accordance with	549
the plans, sworn statements, and other information submitted in	550
the approved application.	551

(F) The chief shall issue an order denying a permit if the	552
chief finds that there is a substantial risk that the operation	553
will result in violations of this chapter or rules adopted under	554
it that will present an imminent danger to public health or safety	555
or damage to the environment, provided that where the chief finds	556
that terms or conditions to the permit can reasonably be expected	557
to prevent such violations, the chief shall issue the permit	558
subject to those terms or conditions, including, if applicable,	559
terms and conditions regarding subjects identified in rules	560
adopted under section 1509.03 of the Revised Code. The issuance of	561
a permit shall not be considered an order of the chief.	562

The chief shall post notice of each permit that has been	563
approved under this section on the division's web site not later	564
than two business days after the application for a permit has been	565
approved.	566

(G) Each application for a permit required by section 1509.05	567
of the Revised Code, except an application to plug back an	568
existing well that is required by that section and an application	569
for a well drilled or reopened for purposes of section 1509.22 of	570
the Revised Code, also shall be accompanied by a nonrefundable fee	571
as follows:	572

(1) Five hundred dollars for a permit to conduct activities	573
in a township with a population of fewer than ten thousand;	574

(2) Seven hundred fifty dollars for a permit to conduct	575
activities in a township with a population of ten thousand or	576
more, but fewer than fifteen thousand;	577

(3) One thousand dollars for a permit to conduct activities	578
in either of the following:	579

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

580

(b) A municipal corporation regardless of population.

581

(4) If the application is for a permit that requires	582
mandatory pooling, an additional five thousand dollars.	583

For purposes of calculating fee amounts, populations shall be	584
determined using the most recent federal decennial census.	585

Each application for the revision or reissuance of a permit	586
shall be accompanied by a nonrefundable fee of two hundred fifty	587
dollars.	588

(H)(1) Prior to the commencement of well pad construction and	589
prior to the issuance of a permit to drill a proposed horizontal	590
well or a proposed well that is to be located in an urbanized	591
area, the division shall conduct a site review to identify and	592
evaluate any site-specific terms and conditions that may be	593
attached to the permit. At the site review, a representative of	594
the division shall consider fencing, screening, and landscaping	595
requirements, if any, for similar structures in the community in	596
which the well is proposed to be located. The terms and conditions	597
that are attached to the permit shall include the establishment of	598
fencing, screening, and landscaping requirements for the surface	599
facilities of the proposed well, including a tank battery of the	600
well.	601

(2) Prior to the issuance of a permit to drill a proposed	602
well, the division shall conduct a review to identify and evaluate	603
any site-specific terms and conditions that may be attached to the	604
permit if the proposed well will be located in a one-hundred-year	605
floodplain or within the five-year time of travel associated with	606
a public drinking water supply.	607

(I) A permit shall be issued by the chief in accordance with	608
this chapter. A permit issued under this section for a well that	609
is or is to be located in an urbanized area shall be valid for	610
twelve months, and all other permits issued under this section	611
shall be valid for twenty-four months.	612

(J) An applicant or a permittee, as applicable, shall submit	613
to the chief an update of the information that is required under	614
division (A)(8)(a) of this section if any of that information	615
changes prior to commencement of production operations.	616

(K) A permittee or a permittee's authorized representative	617
shall notify an inspector from the division at least twenty-four	618
hours, or another time period agreed to by the chief's authorized	619
representative, prior to the commencement of well pad construction	620
and of drilling, reopening, converting, well stimulation, or	621
plugback operations.	622

Sec. 1509.08.  Upon receipt of an application for a permit	623
required by section 1509.05 of the Revised Code, or upon receipt	624
of an application for a permit to plug and abandon under section	625
1509.13 of the Revised Code, the chief of the division of oil and	626
gas resources management shall determine whether the well is or is	627
to be located in a coal bearing township.	628

Whether or not the well is or is to be located in a coal	629
bearing township, the chief, by order, may refuse to issue a	630
permit required by section 1509.05 of the Revised Code to any	631
applicant who at the time of applying for the permit is in	632
material or substantial violation of this chapter or rules adopted	633
or orders issued under it. The chief shall refuse to issue a	634
permit to any applicant who at the time of applying for the permit	635
has been found liable by a final nonappealable order of a court of	636
competent jurisdiction for damage to streets, roads, highways,	637
bridges, culverts, or drainways pursuant to section 4513.34 or	638
5577.12 of the Revised Code until the applicant provides the chief	639
with evidence of compliance with the order. No applicant shall	640
attempt to circumvent this provision by applying for a permit	641
under a different name or business organization name, by	642
transferring responsibility to another person or entity, by	643
abandoning the well or lease, or by any other similar act.	644

If the well is not or is not to be located in a coal bearing	645
township, or if it is to be located in a coal bearing township,	646
but the landowner submits an affidavit attesting to ownership of	647
the property in fee simple, including the coal, and has no	648
objection to the well, the chief shall issue the permit.	649

If the application to drill,or reopen, or convert concerns a	650
well that is or is to be located in a coal bearing township, the	651
chief shall transmit to the chief of the division of mineral	652
resources management two copies of the application and three	653
copies of the map required in section 1509.06 of the Revised Code,	654
except that, when the affidavit with the waiver of objection	655
described above is submitted, the chief of the division of oil and	656
gas resources management shall not transmit the copies.	657

The chief of the division of mineral resources management	658
immediately shall notify the owner or lessee of any affected mine	659
that the application has been filed and send to the owner or	660
lessee two copies of the map accompanying the application setting	661
forth the location of the well.	662

If the owner or lessee objects to the location of the well or	663
objects to any location within fifty feet of the original location	664
as a possible site for relocation of the well, the owner or lessee	665
shall notify the chief of the division of mineral resources	666
management of the objection, giving the reasons for the objection	667
and, if applicable, indicating on a copy of the map the particular	668
location or locations within fifty feet of the original location	669
to which the owner or lessee objects as a site for possible	670
relocation of the well, within six days after the receipt of the	671
notice. If the chief receives no objections from the owner or	672
lessee of the mine within ten days after the receipt of the notice	673
by the owner or lessee, or if in the opinion of the chief the	674
objections offered by the owner or lessee are not sufficiently	675
well founded, the chief immediately shall notify the owner or	676
lessee of those findings. The owner or lessee may appeal the	677
decision of the chief to the reclamation commission under section	678
1513.13 of the Revised Code. The appeal shall be filed within	679
fifteen days, notwithstanding provisions in divisionsdivision	680
(A)(1) of section 1513.13 of the Revised Code to the contrary,	681
from the date on which the owner or lessee receives the notice. If	682
the appeal is not filed within that time, the chief immediately	683
shall approve the application, retain a copy of the application	684
and map, and return a copy of the application to the chief of the	685
division of oil and gas resources management with the approval	686
noted on it. The chief of the division of oil and gas resources	687
management then shall issue the permit if the provisions of this	688
chapter pertaining to the issuance of such a permit have been	689
complied with.	690

If the chief of the division of mineral resources management	691
receives an objection from the owner or lessee of the mine as to	692
the location of the well within ten days after receipt of the	693
notice by the owner or lessee, and if in the opinion of the chief	694
the objection is well founded, the chief shall disapprove the	695
application and immediately return it to the chief of the division	696
of oil and gas resources management together with the reasons for	697
disapproval and a suggestion for a new location for the well,	698
provided that the suggested new location shall not be a location	699
within fifty feet of the original location to which the owner or	700
lessee has objected as a site for possible relocation of the well	701
if the chief of the division of mineral resources management has	702
determined that the objection is well founded. The chief of the	703
division of oil and gas resources management immediately shall	704
notify the applicant for the permit of the disapproval and any	705
suggestion made by the chief of the division of mineral resources	706
management as to a new location for the well. The applicant may	707
withdraw the application or amend the application to drill the	708
well at the location suggested by the chief, or the applicant may	709
appeal the disapproval of the application by the chief to the	710
reclamation commission.	711

If the chief of the division of mineral resources management	712
receives no objection from the owner or lessee of a mine as to the	713
location of the well, but does receive an objection from the owner	714
or lessee as to one or more locations within fifty feet of the	715
original location as possible sites for relocation of the well	716
within ten days after receipt of the notice by the owner or	717
lessee, and if in the opinion of the chief the objection is well	718
founded, the chief nevertheless shall approve the application and	719
shall return it immediately to the chief of the division of oil	720
and gas resources management together with the reasons for	721
disapproving any of the locations to which the owner or lessee	722
objects as possible sites for the relocation of the well. The	723
chief of the division of oil and gas resources management then	724
shall issue a permit if the provisions of this chapter pertaining	725
to the issuance of such a permit have been complied with,	726
incorporating as a term or condition of the permit that the	727
applicant is prohibited from commencing drilling at any location	728
within fifty feet of the original location that has been	729
disapproved by the chief of the division of mineral resources	730
management. The applicant may appeal to the reclamation commission	731
the terms and conditions of the permit prohibiting the	732
commencement of drilling at any such location disapproved by the	733
chief of the division of mineral resources management.	734

Any such appeal shall be filed within fifteen days,	735
notwithstanding provisions in division (A)(1) of section 1513.13	736
of the Revised Code to the contrary, from the date the applicant	737
receives notice of the disapproval of the application, any other	738
location within fifty feet of the original location, or terms or	739
conditions of the permit, or the owner or lessee receives notice	740
of the chief's decision. No approval or disapproval of an	741
application shall be delayed by the chief of the division of	742
mineral resources management for more than fifteen days from the	743
date of sending the notice of the application to the mine owner or	744
lessee as required by this section.	745

All appeals provided for in this section shall be treated as	746
expedited appeals. The reclamation commission shall hear any such	747
appeal in accordance with section 1513.13 of the Revised Code and	748
issue a decision within thirty days of the filing of the notice of	749
appeal.	750

The chief of the division of oil and gas resources management	751
shall not issue a permit to drill a new well or reopen a well that	752
is or is to be located within three hundred feet of any opening of	753
any mine used as a means of ingress, egress, or ventilation for	754
persons employed in the mine, nor within one hundred feet of any	755
building or inflammable structure connected with the mine and	756
actually used as a part of the operating equipment of the mine,	757
unless the chief of the division of mineral resources management	758
determines that life or property will not be endangered by	759
drilling and operating the well in that location.	760

The chief of the division of mineral resources management may	761
suspend the drilling or reopening of a well in a coal bearing	762
township after determining that the drilling or reopening	763
activities present an imminent and substantial threat to public	764
health or safety or to miners' health or safety and having been	765
unable to contact the chief of the division of oil and gas	766
resources management to request an order of suspension under	767
section 1509.06 of the Revised Code. Before issuing a suspension	768
order for that purpose, the chief of the division of mineral	769
resources management shall notify the owner in a manner that in	770
the chief's judgment would provide reasonable notification that	771
the chief intends to issue a suspension order. The chief may issue	772
such an order without prior notification if reasonable attempts to	773
notify the owner have failed, but in that event notification shall	774
be given as soon thereafter as practical. Within five calendar	775
days after the issuance of the order, the chief shall provide the	776
owner an opportunity to be heard and to present evidence that the	777
activities do not present an imminent and substantial threat to	778
public health or safety or to miners' health or safety. If, after	779
considering the evidence presented by the owner, the chief	780
determines that the activities do not present such a threat, the	781
chief shall revoke the suspension order. An owner may appeal a	782
suspension order issued by the chief of the division of mineral	783
resources management under this section to the reclamation	784
commission in accordance with section 1513.13 of the Revised Code	785
or may appeal the order directly to the court of common pleas of	786
the county in which the well is located.	787

Sec. 1509.21. No(A) Except as provided in division (B) of	788
this section, no person shall, without first having obtained a	789
permit from the chief of the division of oil and gas resources	790
management, conduct secondary or additional recovery operations,	791
including any underground injection of fluids or carbon dioxide	792
for the secondary or tertiary recovery of oil or natural gas or	793
for the storage of hydrocarbons that are liquid at standard	794
temperature or pressure, unless a rule of the chief expressly	795
authorizes such operations without a permit. The permit shall be	796
in addition to any permit required by section 1509.05 of the	797
Revised Code. Secondary or additional recovery operations shall be	798
conducted in accordance with rules and orders of the chief and any	799
terms or conditions of the permit authorizing such operations. In	800
addition, the chief may authorize tests to evaluate whether fluids	801
or carbon dioxide may be injected in a reservoir and to determine	802
the maximum allowable injection pressure. The tests shall be	803
conducted in accordance with methods prescribed in rules of the	804
chief or conditions of the permit. Rules adopted under this	805
section shall include provisions regarding applications for and	806
the issuance of permits; the terms and conditions of permits;	807
entry to conduct inspections and to examine records to ascertain	808
compliance with this section and rules, orders, and terms and	809
conditions of permits adopted or issued thereunder; the provision	810
and maintenance of information through monitoring, recordkeeping,	811
and reporting; and other provisions in furtherance of the goals of	812
this section and the Safe Drinking Water Act. To implement the	813
goals of the Safe Drinking Water Act, the chief shall not issue a	814
permit for the underground injection of fluids for the secondary	815
or tertiary recovery of oil or natural gas or for the storage of	816
hydrocarbons that are liquid at standard temperature and pressure,	817
unless the chief concludes that the applicant has demonstrated	818
that the injection will not result in the presence of any	819
contaminant in underground water that supplies or can be	820
reasonably expected to supply any public water system, such that	821
the presence of any such contaminant may result in the system's	822
not complying with any national primary drinking water regulation	823
or may otherwise adversely affect the health of persons. Rules,	824
orders, and terms or conditions of permits adopted or issued under	825
this section shall be construed to be no more stringent than	826
required for compliance with the Safe Drinking Water Act, unless	827
essential to ensure that underground sources of drinking water	828
will not be endangered.	829

(B) No person shall dispose of brine in association with a	830
method of enhanced recovery conducted pursuant to division (A) of	831
this section.	832

Sec. 1509.22.  (A) Except when acting in accordance with	833
section 1509.226 of the Revised Code, no(1) No person shall place	834
or cause to be placed brine in or on the land or in surface or	835
ground water.	836

(2) No person shall place or cause to be placed brine, crude	837
oil, natural gas, or other fluids associated with the exploration	838
or development of oil and gas resources in surface or ground water	839
or in or on the land in such quantities or in such manner as	840
actually causes or could reasonably be anticipated to cause either	841
of the following:	842

(1)(a) Water used for consumption by humans or domestic	843
animals to exceed the standards of the Safe Drinking Water Act;	844

(2)(b) Damage or injury to public health or safety or the	845
environment.	846

(3) Divisions (A)(1) and (2) of this section apply regardless	847
of whether brine, crude oil, natural gas, or other fluids	848
associated with the exploration or development of oil and gas	849
resources have been treated in a public water system or other	850
treatment system or process.	851

(B) No person shall store or dispose of brine in violation of	852
a plan approved under division (A) of section 1509.222 or section	853
1509.226 of the Revised Code, in violation of a resolution	854
submitted under section 1509.226 of the Revised Code, or in	855
violation of rules or orders applicable to those plans or	856
resolutions.	857

(C) The chief of the division of oil and gas resources	858
management shall adopt rules and issue orders regarding storage	859
and disposal of brine and other waste substances; however, the	860
storage and disposal of brine and other waste substances and the	861
chief's rules relating to storage and disposal are subject to all	862
of the following standards:	863

(1) Brine from any well except an exempt Mississippian well	864
shall be disposed of only by injection into an underground	865
formation, including annular disposal if approved by rule of the	866
chief, which injection shall be subject to division (D) of this	867
section; by surface application in accordance with section	868
1509.226 of the Revised Code; in association with a method of	869
enhanced recovery as provided in section 1509.21 of the Revised	870
Code; or by other methods approved by the chief for testing or	871
implementing a new technology or method of disposal. Brine from	872
exempt Mississippian wells shall not be discharged directly into	873
the waters of the state.	874

(2) Muds, cuttings, and other waste substances shall not be	875
disposed of in violation of any rule.	876

(3) Pits or steel tanks shall be used as authorized by the	877
chief for containing brine and other waste substances resulting	878
from, obtained from, or produced in connection with drilling, well	879
stimulation, reworking, reconditioning, plugging back, or plugging	880
operations. The pits and steel tanks shall be constructed and	881
maintained to prevent the escape of brine and other waste	882
substances.	883

(4) A dike or pit may be used for spill prevention and	884
control. A dike or pit so used shall be constructed and maintained	885
to prevent the escape of brine and crude oil, and the reservoir	886
within such a dike or pit shall be kept reasonably free of brine,	887
crude oil, and other waste substances.	888

(5) Earthen impoundments constructed pursuant to the	889
division's specifications may be used for the temporary storage of	890
fluids used in the stimulation of a well.	891

(6) No pit, earthen impoundment, or dike shall be used for	892
the temporary storage of brine or other substances except in	893
accordance with divisions (C)(3) to (5) of this section.	894

(7) No pit or dike shall be used for the ultimate disposal of	895
brine or other liquid waste substances.	896

(D)(1) NoExcept as provided in division (D)(2) of this	897
section, no person, without first having obtained a permit from	898
the chief, shall inject brine or other waste substances resulting	899
from, obtained from, or produced in connection with oil or gas	900
drilling, exploration, or production into an underground formation	901
unless a rule of the chief expressly authorizes the injection	902
without a permit. The permit shall be in addition to any permit	903
required by section 1509.05 of the Revised Code, and the permit	904
application shall be accompanied by a permit fee of one thousand	905
dollars. The chief shall adopt rules in accordance with Chapter	906
119. of the Revised Code regarding the injection into wells of	907
brine and other waste substances resulting from, obtained from, or	908
produced in connection with oil or gas drilling, exploration, or	909
production. The rules shall include provisions regarding all of	910
the following:	911

(a) Applications for and issuance of the permits required by	912
this division;	913

(b) Entry to conduct inspections and to examine and copy	914
records to ascertain compliance with this division and rules,	915
orders, and terms and conditions of permits adopted or issued	916
under it;	917

(c) The provision and maintenance of information through	918
monitoring, recordkeeping, and reporting. In addition, the rules	919
shall require the owner of an injection well who has been issued a	920
permit under division (D) of this section to quarterly submit	921
electronically to the chief information concerning each shipment	922
of brine or other waste substances received by the owner for	923
injection into the well.	924

(d) The provision and electronic reporting quarterly of	925
information concerning brine and other waste substances from a	926
transporter that is registered under section 1509.222 of the	927
Revised Code prior to the injection of the transported brine or	928
other waste substances;	929

(e) Any other provisions in furtherance of the goals of this	930
section and the Safe Drinking Water Act.	931

(2) The chief may adopt rules in accordance with Chapter 119.	932
of the Revised Code authorizing tests to evaluate whether fluids	933
other than brine or carbon dioxide may be injected in a reservoir	934
and to determine the maximum allowable injection pressure, which	935
shall be conducted in accordance with methods prescribed in the	936
rules or in accordance with conditions of thea permit issued by	937
the chief for that purpose. In addition, the chief may adopt rules	938
that do both of the following:	939

(a) Establish the total depth of a well for which a permit	940
has been applied for or issued under this division;	941

(b) Establish requirements and procedures to protect public	942
health and safety.	943

(3) To implement the goals of the Safe Drinking Water Act	944
Except as provided in division (D)(2) of this section, the chief	945
shall not issue a permit for the injection of brine or other waste	946
substances resulting from, obtained from, or produced in	947
connection with oil or gas drilling, exploration, or production	948
unless the chief concludes that the applicant has demonstrated	949
that the injection will not result in the presence of any	950
contaminant in ground water that supplies or can reasonably be	951
expected to supply any public water system, such that the presence	952
of the contaminant may result in the system's not complying with	953
any national primary drinking water regulation or may otherwise	954
adversely affect the health of persons.	955

(4) The chief may issue an order to the owner of a well in	956
existence on the effective date of this amendmentSeptember 10,	957
2012, to make changes in the operation of the well in order to	958
correct problems or to address safety concerns.	959

(5) This division and rules, orders, and terms and conditions	960
of permits adopted or issued under it shall be construed to be no	961
more stringent than required for compliance with the Safe Drinking	962
Water Act unless essential to ensure that underground sources of	963
drinking water will not be endangered.	964

(E) The owner holding a permit, or an assignee or transferee	965
who has assumed the obligations and liabilities imposed by this	966
chapter and any rules adopted or orders issued under it pursuant	967
to section 1509.31 of the Revised Code, and the operator of a well	968
shall be liable for a violation of this section or any rules	969
adopted or orders or terms or conditions of a permit issued under	970
it.	971

(F) An owner shall replace the water supply of the holder of	972
an interest in real property who obtains all or part of the	973
holder's supply of water for domestic, agricultural, industrial,	974
or other legitimate use from an underground or surface source	975
where the supply has been substantially disrupted by	976
contamination, diminution, or interruption proximately resulting	977
from the owner's oil or gas operation, or the owner may elect to	978
compensate the holder of the interest in real property for the	979
difference between the fair market value of the interest before	980
the damage occurred to the water supply and the fair market value	981
after the damage occurred if the cost of replacing the water	982
supply exceeds this difference in fair market values. However,	983
during the pendency of any order issued under this division, the	984
owner shall obtain for the holder or shall reimburse the holder	985
for the reasonable cost of obtaining a water supply from the time	986
of the contamination, diminution, or interruption by the operation	987
until the owner has complied with an order of the chief for	988
compliance with this division or such an order has been revoked or	989
otherwise becomes not effective. If the owner elects to pay the	990
difference in fair market values, but the owner and the holder	991
have not agreed on the difference within thirty days after the	992
chief issues an order for compliance with this division, within	993
ten days after the expiration of that thirty-day period, the owner	994
and the chief each shall appoint an appraiser to determine the	995
difference in fair market values, except that the holder of the	996
interest in real property may elect to appoint and compensate the	997
holder's own appraiser, in which case the chief shall not appoint	998
an appraiser. The two appraisers appointed shall appoint a third	999
appraiser, and within thirty days after the appointment of the	1000
third appraiser, the three appraisers shall hold a hearing to	1001
determine the difference in fair market values. Within ten days	1002
after the hearing, the appraisers shall make their determination	1003
by majority vote and issue their final determination of the	1004
difference in fair market values. The chief shall accept a	1005
determination of the difference in fair market values made by	1006
agreement of the owner and holder or by appraisers under this	1007
division and shall make and dissolve orders accordingly. This	1008
division does not affect in any way the right of any person to	1009
enforce or protect, under applicable law, the person's interest in	1010
water resources affected by an oil or gas operation.	1011

(G) In any action brought by the state for a violation of	1012
division (A) of this section involving any well at which annular	1013
disposal is used, there shall be a rebuttable presumption	1014
available to the state that the annular disposal caused the	1015
violation if the well is located within a one-quarter-mile radius	1016
of the site of the violation.	1017

(H)(1) There is levied on the owner of an injection well who	1018
has been issued a permit under division (D) of this section the	1019
following fees:	1020

(a) Five cents per barrel of each substance that is delivered	1021
to a well to be injected in the well when the substance is	1022
produced within the division of oil and gas resources management	1023
regulatory district in which the well is located or within an	1024
adjoining oil and gas resources management regulatory district;	1025

(b) Twenty cents per barrel of each substance that is	1026
delivered to a well to be injected in the well when the substance	1027
is not produced within the division of oil and gas resources	1028
management regulatory district in which the well is located or	1029
within an adjoining oil and gas resources management regulatory	1030
district.	1031

(2) The maximum number of barrels of substance per injection	1032
well in a calendar year on which a fee may be levied under	1033
division (H) of this section is five hundred thousand. If in a	1034
calendar year the owner of an injection well receives more than	1035
five hundred thousand barrels of substance to be injected in the	1036
owner's well and if the owner receives at least one substance that	1037
is produced within the division's regulatory district in which the	1038
well is located or within an adjoining regulatory district and at	1039
least one substance that is not produced within the division's	1040
regulatory district in which the well is located or within an	1041
adjoining regulatory district, the fee shall be calculated first	1042
on all of the barrels of substance that are not produced within	1043
the division's regulatory district in which the well is located or	1044
within an adjoining district at the rate established in division	1045
(H)(2) of this section. The fee then shall be calculated on the	1046
barrels of substance that are produced within the division's	1047
regulatory district in which the well is located or within an	1048
adjoining district at the rate established in division (H)(1) of	1049
this section until the maximum number of barrels established in	1050
division (H)(2) of this section has been attained.	1051

(3) The owner of an injection well who is issued a permit	1052
under division (D) of this section shall collect the fee levied by	1053
division (H) of this section on behalf of the division of oil and	1054
gas resources management and forward the fee to the division. The	1055
chief shall transmit all money received under division (H) of this	1056
section to the treasurer of state who shall deposit the money in	1057
the state treasury to the credit of the oil and gas well fund	1058
created in section 1509.02 of the Revised Code. The owner of an	1059
injection well who collects the fee levied by this division may	1060
retain up to three per cent of the amount that is collected.	1061

(4) The chief shall adopt rules in accordance with Chapter	1062
119. of the Revised Code establishing requirements and procedures	1063
for collection of the fee levied by division (H) of this section.	1064

Sec. 1509.222.  (A)(1) Except as provided in section 1509.226	1065
of the Revised Code, noNo person shall transport brine by vehicle	1066
in this state unless the business entity that employs the person	1067
first registers with and obtains a registration certificate and	1068
identification number from the chief of the division of oil and	1069
gas resources management.	1070

(2) No more than one registration certificate shall be	1071
required of any business entity. Registration certificates issued	1072
under this section are not transferable. An applicant shall file	1073
an application with the chief, containing such information in such	1074
form as the chief prescribes. The application shall include at	1075
least all of the following:	1076

(a) A list that identifies each vehicle, vessel, railcar, and	1077
container that will be used in the transportation of brine;	1078

(b) A plan for disposal that provides for compliance with the	1079
requirements of this chapter and rules of the chief pertaining to	1080
the transportation of brine by vehicle and the disposal of brine	1081
so transported and that lists all disposal sites that the	1082
applicant intends to use;	1083

(c) The bond required by section 1509.225 of the Revised	1084
Code;	1085

(d) A certificate issued by an insurance company authorized	1086
to do business in this state certifying that the applicant has in	1087
force a liability insurance policy in an amount not less than	1088
three hundred thousand dollars bodily injury coverage and three	1089
hundred thousand dollars property damage coverage to pay damages	1090
for injury to persons or property caused by the collecting,	1091
handling, transportation, or disposal of brine.	1092

The insurance policy required by division (A)(2)(d) of this	1093
section shall be maintained in effect during the term of the	1094
registration certificate. The policy or policies providing the	1095
coverage shall require the insurance company to give notice to the	1096
chief if the policy or policies lapse for any reason. Upon such	1097
termination of the policy, the chief may suspend the registration	1098
certificate until proper insurance coverage is obtained.	1099

(3) Each application for a registration certificate shall be	1100
accompanied by a nonrefundable fee of five hundred dollars.	1101

(4) If a business entity that has been issued a registration	1102
certificate under this section changes its name due to a business	1103
reorganization or merger, the business entity shall revise the	1104
bond or certificates of deposit required by section 1509.225 of	1105
the Revised Code and obtain a new certificate from an insurance	1106
company in accordance with division (A)(2)(e) of this section to	1107
reflect the change in the name of the business entity.	1108

(B) The chief shall issue an order denying an application for	1109
a registration certificate if the chief finds that either of the	1110
following applies:	1111

(1) The applicant, at the time of applying for the	1112
registration certificate, has been found liable by a final	1113
nonappealable order of a court of competent jurisdiction for	1114
damage to streets, roads, highways, bridges, culverts, or	1115
drainways pursuant to section 4513.34 or 5577.12 of the Revised	1116
Code until the applicant provides the chief with evidence of	1117
compliance with the order.	1118

(2) The applicant's plan for disposal does not provide for	1119
compliance with the requirements of this chapter and rules of the	1120
chief pertaining to the transportation of brine by vehicle and the	1121
disposal of brine so transported.	1122

(C) No applicant shall attempt to circumvent division (B) of	1123
this section by applying for a registration certificate under a	1124
different name or business organization name, by transferring	1125
responsibility to another person or entity, or by any similar act.	1126

(D) A registered transporter shall apply to revise a disposal	1127
plan under procedures that the chief shall prescribe by rule.	1128
However, at a minimum, an application for a revision shall list	1129
all sources and disposal sites of brine currently transported. The	1130
chief shall deny any application for a revision of a plan under	1131
this division if the chief finds that the proposed revised plan	1132
does not provide for compliance with the requirements of this	1133
chapter and rules of the chief pertaining to the transportation of	1134
brine by vehicle and the disposal of brine so transported.	1135
Approvals and denials of revisions shall be by order of the chief.	1136

(E) The chief may adopt rules, issue orders, and attach terms	1137
and conditions to registration certificates as may be necessary to	1138
administer, implement, and enforce sections 1509.222 to 1509.226	1139
1509.225 of the Revised Code for protection of public health or	1140
safety or conservation of natural resources.	1141

Sec. 1509.223.  (A) No permit holder or owner of a well shall	1142
enter into an agreement with or permit any person to transport	1143
brine produced from the well who is not registered pursuant to	1144
section 1509.222 of the Revised Code or exempt from registration	1145
under section 1509.226 of the Revised Code.	1146

(B) Each registered transporter shall file with the chief of	1147
the division of oil and gas resources management, on or before the	1148
fifteenth day of April, a statement concerning brine transported,	1149
including quantities transported and source and delivery points,	1150
during the last preceding calendar year, and such other	1151
information in such form as the chief may prescribe.	1152

(C) Each registered transporter shall keep on each vehicle	1153
used to transport brine a daily log and have it available upon the	1154
request of the chief or an authorized representative of the chief	1155
or a peace officer. The log shall, at a minimum, include all of	1156
the following information:	1157

(1) The name of the owner or owners of the well or wells	1158
producing the brine to be transported;	1159

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

1160

(3) The name of the driver;

1161

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

1162

(5) The disposal location;

1163

(6) The date and time the brine is disposed of and the amount	1164
of brine disposed of at each location.	1165

The chief, by rule, may establish procedures for the	1166
electronic submission to the chief of the information that is	1167
required to be included in the daily log. No registered	1168
transporter shall falsify or fail to keep or submit the log	1169
required by this division.	1170

(D) Each registered transporter shall legibly identify with	1171
reflective paints all vehicles employed in transporting or	1172
disposing of brine. Letters shall be no less than four inches in	1173
height and shall indicate the identification number issued by the	1174
chief, the word "brine," and the name and telephone number of the	1175
transporter.	1176

(E) The chief shall maintain and keep a current list of	1177
persons registered to transport brine under section 1509.222 of	1178
the Revised Code. The list shall be open to public inspection. It	1179
is an affirmative defense to a charge under division (A) of this	1180
section that at the time the permit holder or owner of a well	1181
entered into an agreement with or permitted a person to transport	1182
brine, the person was shown on the list as currently registered to	1183
transport brine.	1184

Sec. 1509.224.  (A) In addition to any other remedies	1185
provided in this chapter, if the chief of the division of oil and	1186
gas resources management has reason to believe that a pattern of	1187
the same or similar violations of any requirements of section	1188
1509.22, 1509.222, or 1509.223 of the Revised Code, or any rule	1189
adopted thereunder or term or condition of the registration	1190
certificate issued thereunder exists or has existed, and the	1191
violations are caused by the transporter's indifference, lack of	1192
diligence, or lack of reasonable care, or are willfully caused by	1193
the transporter, the chief shall immediately issue an order to the	1194
transporter to show cause why the certificate should not be	1195
suspended or revoked. After the issuance of the order, the chief	1196
shall provide the transporter an opportunity to be heard and to	1197
present evidence at an informal hearing conducted by the chief.	1198
If, at the conclusion of the hearing, the chief finds that such a	1199
pattern of violations exists or has existed, the chief shall issue	1200
an order suspending or revoking the transporter's registration	1201
certificate. An order suspending or revoking a certificate under	1202
this section may be appealed under sections 1509.36 and 1509.37 of	1203
the Revised Code, or notwithstanding any other provision of this	1204
chapter, may be appealed directly to the court of common pleas of	1205
Franklin county.	1206

(B) Before issuing an order denying a registration	1207
certificate; approving or denying approval of an application for	1208
revision of a registered transporter's plan for disposal; or to	1209
implement, administer, or enforce section 1509.22, 1509.222,	1210
1509.223, or 1509.225, or 1509.226 of the Revised Code and rules	1211
and terms and conditions of registration certificates adopted or	1212
issued thereunder pertaining to the transportation of brine by	1213
vehicle and the disposal of brine so transported, the chief shall	1214
issue a preliminary order indicating the chief's intent to issue a	1215
final order. The preliminary order shall clearly state the nature	1216
of the chief's proposed action and the findings on which it is	1217
based and shall state that the preliminary order becomes a final	1218
order thirty days after its issuance unless the person to whom the	1219
preliminary order is directed submits to the chief a written	1220
request for an informal hearing before the chief within that	1221
thirty-day period. At the hearing the person may present evidence	1222
as to why the preliminary order should be revoked or modified.	1223
Based upon the findings from the informal hearing, the chief shall	1224
revoke, issue, or modify and issue the preliminary order as a	1225
final order. A final order may be appealed under sections 1509.36	1226
and 1509.37 of the Revised Code.	1227

Section 2. That existing sections 1509.01, 1509.02, 1509.03,	1228
1509.05, 1509.06, 1509.08, 1509.21, 1509.22, 1509.222, 1509.223,	1229
and 1509.224 and section 1509.226 of the Revised Code are hereby	1230
repealed.	1231