130th Ohio General Assembly
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H. B. No. 584  As Introduced
As Introduced

127th General Assembly
Regular Session
2007-2008
H. B. No. 584


Representative Schindel 



A BILL
To amend section 1509.06 and to enact sections 1509.062, 1509.063, and 1509.073 of the Revised Code to allow the applicable board of township trustees or legislative authority of a municipal corporation where an existing or proposed oil or gas well is or is to be located to submit written comments specifically describing safety issues regarding the well to the Chief of the Division of Mineral Resources Management in the Department of Natural Resources, to require the Chief to review any such comments before determining whether to issue a permit for the well, to establish certain notification and noise requirements for the drilling of an oil or gas well, and to establish other permit requirements.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 1509.06 be amended and sections 1509.062, 1509.063, and 1509.073 of the Revised Code be enacted to read as follows:
Sec. 1509.06. (A) An application for a permit to drill a new well, drill an existing well deeper, reopen a well, convert a well to any use other than its original purpose, or plug back a well to a different source of supply shall be filed with the chief of the division of mineral resources management upon such form as the chief prescribes and shall contain each of the following that is applicable:
(1) The name and address of the owner and, if a corporation, the name and address of the statutory agent;
(2) The signature of the owner or the owner's authorized agent. When an authorized agent signs an application, it shall be accompanied by a certified copy of the appointment as such agent.
(3) The names and addresses of all persons holding the royalty interest in the tract upon which the well is located or is to be drilled or within a proposed drilling unit;
(4) The location of the tract or drilling unit on which the well is located or is to be drilled identified by section or lot number, city, village, township, and county;
(5) Designation of the well by name and number;
(6) The geological formation to be tested or used and the proposed total depth of the well;
(7) The type of drilling equipment to be used;
(8) If the well is for the injection of a liquid, identity of the geological formation to be used as the injection zone and the composition of the liquid to be injected;
(9) For an application for a permit to drill a new well, a sworn statement that the applicant has provided notice of the application to the owner of each occupied dwelling unit that is located within five hundred feet of the surface location of the well if the surface location will be less than five hundred feet from the boundary of the drilling unit and more than fifteen occupied dwelling units are located less than five hundred feet from the surface location of the well, excluding any dwelling that is located on real property all or any portion of which is included in the drilling unit. The notice shall contain a statement that an application has been filed with the division of mineral resources management, identify the name of the applicant and the proposed well location, include the name and address of the division, and contain a statement that comments regarding the application may be sent to the division. The notice may be provided by hand delivery or regular mail. The identity of the owners of occupied dwelling units shall be determined using the tax records of the municipal corporation or county in which the dwelling unit is located as of the date of the notice.
(10) A plan for restoration of the land surface disturbed by drilling operations. The plan shall provide for compliance with the restoration requirements of division (A) of section 1509.072 of the Revised Code and any rules adopted by the chief pertaining to that restoration.
(11) A description by name or number of the county, township, and municipal corporation roads, streets, and highways that the applicant anticipates will be used for access to and egress from the well site;
(12) Such other relevant information as the chief prescribes by rule.
Each application shall be accompanied by a map, on a scale not smaller than four hundred feet to the inch, prepared by an Ohio registered surveyor, showing the location of the well and containing such other data as may be prescribed by the chief. If the well is or is to be located within the excavations and workings of a mine, the map also shall include the location of the mine, the name of the mine, and the name of the person operating the mine.
(B) The chief shall cause a copy of the weekly circular prepared by the division to be provided to the county engineer of each county that contains active or proposed drilling activity. The weekly circular shall contain, in the manner prescribed by the chief, the names of all applicants for permits, the location of each well or proposed well, the information required by division (A)(11) of this section, and any additional information the chief prescribes. In addition, the chief promptly shall transfer an electronic copy or facsimile, or if those methods are not available to a municipal corporation or township, a copy via regular mail, of a drilling permit application to the clerk of the legislative authority of the municipal corporation or to the clerk of the township in which the well or proposed well is or is to be located if the legislative authority of the municipal corporation or the board of township trustees has asked to receive copies of such applications and the appropriate clerk has provided the chief an accurate, current electronic mailing address or facsimile number, as applicable.
(C) The chief shall not issue a permit for at least ten days after the date of filing of the application for the permit unless the chief does not receive notification from a board of township trustees or the legislative authority of a municipal corporation of the board's or the legislative authority's determination to submit written comments concerning safety issues in accordance with section 1509.062 of the Revised Code and, upon reasonable cause shown, the chief waives that period or a request for expedited review is filed under this section. However, the chief shall issue a permit within twenty-one days of the filing of the application unless the chief denies the application by order or the chief receives notification from a board of township trustees or the legislative authority of a municipal corporation of the board's or the legislative authority's determination to submit written comments concerning safety issues in accordance with section 1509.062 of the Revised Code. If the chief receives such written comments, the chief shall issue the permit within twenty-one days of the chief's determination that the applicant resolved the safety issues described in the submitted written comments or that the applicant does not need to resolve any such safety issues.
(D) An applicant may file a request with the chief for expedited review of a permit application if the well is not or is not to be located in a gas storage reservoir or reservoir protective area, as "reservoir protective area" is defined in section 1571.01 of the Revised Code. If the well is or is to be located in a coal bearing township, the application shall be accompanied by the affidavit of the landowner prescribed in section 1509.08 of the Revised Code.
In addition to a complete application for a permit that meets the requirements of this section and the permit fee prescribed by this section, a request for expedited review shall be accompanied by a separate nonrefundable filing fee of five hundred dollars. Upon the filing of a request for expedited review and if the chief does not receive notification from a board of township trustees or the legislative authority of a municipal corporation of the board's or legislative authority's determination to submit written comments concerning safety issues in accordance with section 1509.062 of the Revised Code, the chief shall cause the county engineer of the county in which the well is or is to be located to be notified of the filing of the permit application and the request for expedited review by telephone or other means that in the judgment of the chief will provide timely notice of the application and request. The chief shall issue a permit within seven days of the filing of the request unless the chief denies the application by order or the chief receives notification from a board of township trustees or the legislative authority of a municipal corporation of the board's or the legislative authority's determination to submit written comments concerning safety issues in accordance with section 1509.062 of the Revised Code. If the chief receives such written comments, the chief shall issue the permit within seven days of the chief's determination that the applicant resolved the safety issues described in the submitted written comments or that the applicant does not need to resolve any such safety issues. Notwithstanding the provisions of this section governing expedited review of permit applications, the chief may refuse to accept requests for expedited review if, in the chief's judgment, the acceptance of the requests would prevent the issuance, within twenty-one days of their filing, of permits for which applications are pending.
(E) A well shall be drilled and operated in accordance with the plans, sworn statements, and other information submitted in the approved application.
(F) The chief shall issue an order denying a permit if the chief finds that there is a substantial risk that the operation will result in violations of this chapter or rules adopted under it that will present an imminent danger to public health or safety or damage to the environment, provided that where the chief finds that terms or conditions to the permit can reasonably be expected to prevent such violations, the chief shall issue the permit subject to those terms or conditions, including, if applicable, terms and conditions regarding subjects identified in rules adopted under section 1509.03 of the Revised Code.
(G) Each application for a permit required by section 1509.05 of the Revised Code, except an application to plug back an existing well that is required by that section and an application for a well drilled or reopened for purposes of section 1509.22 of the Revised Code, also shall be accompanied by a nonrefundable fee as follows:
(1) Two hundred fifty dollars for a permit to conduct activities in a township with a population of fewer than five thousand;
(2) Five hundred dollars for a permit to conduct activities in a township with a population of five thousand or more, but fewer than ten thousand;
(3) Seven hundred fifty dollars for a permit to conduct activities in a township with a population of ten thousand or more, but fewer than fifteen thousand;
(4) One thousand dollars for a permit to conduct activities in either of the following:
(a) A township with a population of fifteen thousand or more;
(b) A municipal corporation regardless of population.
For purposes of calculating fee amounts, populations shall be determined using the most recent federal decennial census.
Each application for the revision or reissuance of a permit shall be accompanied by a nonrefundable fee of two hundred fifty dollars.
(H) The chief may order the immediate suspension of drilling, operating, or plugging activities after finding that any person is causing, engaging in, or maintaining a condition or activity that in the chief's judgment presents an imminent danger to public health or safety or results in or is likely to result in immediate substantial damage to natural resources or for nonpayment of a fee required by this section. The chief may order the immediate suspension of the drilling or reopening of a well in a coal bearing township after determining that the drilling or reopening activities present an imminent and substantial threat to public health or safety or to miners' health or safety. Before issuing any such order, the chief shall notify the owner in such manner as in the chief's judgment would provide reasonable notification that the chief intends to issue a suspension order. The chief may issue such an order without prior notification if reasonable attempts to notify the owner have failed, but in such an event notification shall be given as soon thereafter as practical. Within five calendar days after the issuance of the order, the chief shall provide the owner an opportunity to be heard and to present evidence that the condition or activity is not likely to result in immediate substantial damage to natural resources or does not present an imminent danger to public health or safety or to miners' health or safety, if applicable. In the case of activities in a coal bearing township, if the chief, after considering evidence presented by the owner, determines that the activities do not present such a threat, the chief shall revoke the suspension order. Notwithstanding any provision of this chapter, the owner may appeal a suspension order directly to the court of common pleas of the county in which the activity is located or, if in a coal bearing township, to the reclamation commission under section 1513.13 of the Revised Code.
Sec. 1509.062.  Upon receipt of a copy of an application for a permit under section 1509.06 of the Revised Code, a board of township trustees or the legislative authority of a municipal corporation, as applicable, may review the application for safety issues concerning the existing or proposed well that is the subject of the application. If the board or legislative authority determines to review the application, not later than five days after receipt of the copy of the application, the board or legislative authority, as applicable, shall notify the chief of the division of mineral resources management of the board's or legislative authority's determination to review the application. Not later than thirty days after receipt of the copy of the application, the board or legislative authority either shall submit to the chief written comments specifically describing any safety issues that the board or legislative authority has identified that the chief should consider before issuing the permit under section 1509.06 of the Revised Code or shall notify the chief that it will not be submitting any such comments.
After receipt of any written comments from a board of township trustees or the legislative authority of a municipal corporation, as applicable, the chief shall review the comments and determine if the applicant needs to resolve any of the safety issues that the board or legislative authority identified that the chief should consider. If the chief determines that the applicant needs to resolve any such safety issues, the chief shall return the application to the applicant and notify the applicant of the safety issues that the applicant must resolve in order for the chief to issue the permit. The applicant may resubmit the application. If the chief determines that the applicant does not need to resolve any such safety issues or if the applicant resolves such safety issues in an application that is resubmitted, the chief may proceed to issue the permit in accordance with the procedures established in this chapter.
Sec. 1509.063. The chief of the division of mineral resources management shall establish as a condition of a permit issued under this chapter a requirement that only the flag of the United States of America may be flown from the equipment that is used to drill a well while the equipment is located at the surface location of the well.
Sec. 1509.073. (A) An owner that is issued a permit to drill a well under this chapter shall provide written notice of the date and time of the proposed drilling to a resident of each dwelling that is located within five hundred feet of the well and to the fire department with territorial jurisdiction over the well's location.
(B) An owner that is issued a permit to drill a well under this chapter shall not allow the noise from the drilling operation to exceed one hundred twenty decibels if the well is located within two hundred feet of a multiple unit dwelling with at least three units, a hospital as defined in section 3727.01 of the Revised Code, or a nursing home as defined in that section.
Section 2. That existing section 1509.06 of the Revised Code is hereby repealed.
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