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H. B. No. 591 As IntroducedAs Introduced
127th General Assembly | Regular Session | 2007-2008 |
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Representative Williams, B.
Cosponsors:
Representatives Brown, Skindell, Yuko, Fende
A BILL
To amend sections 1509.06, 1509.072, and 1509.31 of
the Revised Code to establish additional public
notice and public meeting requirements concerning
applications for certain permits for oil or gas
wells.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 1509.06, 1509.072, and 1509.31 of
the Revised Code be amended 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 or
reopen a well, a sworn statement that the applicant has provided
notice of the application to the owner owners of each all occupied
dwelling unit units that is are located within five hundred feet a
one-thousand-foot radius 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 or proposed well and has provided notice of
the application to the clerk of the legislative authority of the
municipal corporation or the clerk of the township in which the
well is or is to be located. The notice shall contain a statement
that an application has been or will be filed with the division of
mineral resources management, identify the name of the applicant
and the proposed well location or proposed location, include the
name and address of the division, and contain a statement that
comments regarding the application may be sent to the division,
and include the date, time, and location of the public meeting to
be held concerning the application that is required in this
section. The notice may shall be provided by hand delivery or
regular certified mail and shall be provided not more than
forty-five nor less than ten days prior to the public meeting that
is required to be held concerning the application. 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) For an application for a permit to drill a new well or
reopen a well, a sworn statement that the applicant has published
notice of the application in a newspaper of general circulation in
the county in which the well is or is to be located. The notice
shall contain the same information that is contained in the notice
provided under division (A)(9) of this section and shall be
published not more than forty-five nor less than ten days prior to
the public meeting that is required to be held concerning the
application.
(11) 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)(12) 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)(13) 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)(12) 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) With respect to an application for a permit to drill a
new well or reopen a well, not more than thirty days nor less than
ten days after the filing of the application, the chief shall
conduct a public meeting concerning the application for the
permit. The meeting shall be conducted in a manner determined
appropriate by the chief. The meeting shall be held within the
county in which the well is or is to be located and shall be held
on the date and at the time and location specified in the notice
provided under division (A)(9) of this section.
(D) The chief shall not
issue a permit for at least ten days
after the date of filing of
the application for the permit or, if
applicable, at least ten days after the public meeting held
concerning the application for the permit unless,
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 or public meeting, as applicable,
unless the chief
denies the
application
by order.
(D)(E) 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, 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 or, if
applicable, within seven days of the public meeting held
concerning the application for the permit unless the
chief denies
the application by order.
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 or a public
meeting, as applicable, of permits for which
applications are
pending.
(E)(F) A well shall be drilled and operated in accordance
with the
plans, sworn statements, and other information submitted
in the
approved application.
(F)(G) 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)(H) 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)(I) 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. 1509.072. No oil or gas well owner or agent of an oil
or
gas well owner shall fail to restore the land surface within
the area
disturbed in siting, drilling, completing, and producing
the well as required
in this section.
(A) Within five months after the date upon which the
surface
drilling of a well is commenced, the owner or the
owner's agent,
in accordance with the
restoration
plan filed under
division
(A)(10)(11) of section 1509.06 of the Revised Code,
shall fill all
the
pits for containing brine, other waste substances resulting,
obtained, or produced in connection with exploration or
drilling
for, or production of, oil or gas, or oil that are
not required
by
other state or federal law or regulation, and remove all concrete
bases, drilling supplies, and drilling equipment. Within nine
months after the date upon which the surface drilling of a well
is
commenced, the owner or the owner's agent shall grade or
terrace
and
plant, seed, or sod the area disturbed that is not required in
production of the well where necessary to bind the soil and
prevent substantial erosion and sedimentation. If the chief of
the
division of mineral resources management finds
that a pit used for
containing
brine, other waste substances, or oil is in violation
of section
1509.22 of the Revised Code or rules adopted or orders
issued
under it, the chief may require the pit to be emptied
and
closed before expiration of the five-month restoration period.
(B) Within six months after a well that has produced oil
or
gas is plugged, or after the plugging of a dry hole, the owner
or
the owner's agent shall remove all production and storage
structures,
supplies, and equipment, and any oil, salt water, and
debris, and
fill any remaining excavations. Within that period the
owner or
the owner's agent shall grade or terrace and plant, seed,
or
sod the area
disturbed where necessary to bind the soil and
prevent
substantial erosion and sedimentation.
The owner shall be released from responsibility to perform
any or all restoration requirements of this section on any part
or
all of the area disturbed upon the filing of a request for a
waiver with and obtaining the written approval of the chief,
which
request shall be signed by the surface owner to certify the
approval of the surface owner of the release sought. The chief
shall approve the request unless the chief
finds upon
inspection
that
the waiver would be likely to result in substantial damage to
adjoining property, substantial contamination of surface or
underground water, or substantial erosion or sedimentation.
The chief, by order, may shorten the time periods provided
for under division (A) or (B) of this section if failure to
shorten the periods would be likely to result in damage to public
health or the waters or natural resources of the state.
The chief, upon written application by an owner or an
owner's
agent showing reasonable cause, may extend the period
within which
restoration shall be completed under divisions (A) and (B) of
this
section, but not to exceed a further six-month period,
except
under extraordinarily adverse weather conditions or when
essential
equipment, fuel, or labor is unavailable to the owner
or the
owner's agent.
If the chief refuses to approve a request for waiver or
extension, the chief shall do so by order.
Sec. 1509.31. Whenever the entire interest of an oil and
gas
lease is assigned or otherwise transferred, the assignor or
transferor shall notify the holders of the royalty interests,
and,
if a well or wells exist on the lease, the division of mineral
resources
management, of the name and address of
the assignee or
transferee by
certified mail, return receipt requested, not later
than thirty
days after the date of the assignment or transfer.
When notice
of any such assignment or transfer is required to be
provided to
the division, it shall be provided on a form
prescribed and
provided by the division and verified by both the
assignor or
transferor and by the assignee or transferee. The
notice form
applicable to assignments or transfers of a well to
the owner of
the surface estate of the tract on which the well is
located
shall contain a statement informing the landowner that the
well
may require periodic servicing to maintain its productivity;
that, upon assignment or transfer of the well to the
landowner,
the landowner becomes responsible for compliance with the
requirements of this chapter and rules adopted under it,
including, without limitation, the proper disposal of brine
obtained from the well, the plugging of the well when it becomes
incapable of producing oil or gas, and the restoration of the
well
site; and that, upon assignment or transfer of the well to
the
landowner, the landowner becomes responsible for the
costs of
compliance with the requirements of this chapter and rules
adopted
under it and the costs for operating and servicing the
well.
The owner holding a permit under section 1509.05 of the
Revised Code is responsible for all obligations and liabilities
imposed by this chapter and any rules, orders, and terms and
conditions of a permit adopted or issued under
it, and no
assignment or
transfer by the owner relieves the owner of the
obligations and
liabilities until and unless the assignee or
transferee files
with the division the information described in
divisions (A)(1), (2), (3), (4), (5), (10), (11), (12),
and (12)
(13) of section 1509.06 of the Revised Code;
obtains liability
insurance coverage required
by section 1509.07 of the
Revised
Code, except when none is required by that section; and
executes
and files a surety bond, negotiable certificates of
deposit or
irrevocable letters of credit, or cash, as described in
that
section. Instead of a bond,
but only upon acceptance by the chief
of the division of mineral resources
management,
the assignee or
transferee may file proof of financial
responsibility, described
in section 1509.07 of the Revised Code.
Section 1509.071 of the
Revised Code applies to the surety bond,
cash, and negotiable
certificates of deposit and irrevocable letters of
credit
described in this
section. Unless the chief approves a
modification, each assignee
or transferee shall operate in
accordance with the plans and
information filed by the permit
holder pursuant to section
1509.06 of the Revised Code.
Section 2. That existing sections 1509.06, 1509.072, and
1509.31 of the Revised Code are hereby
repealed.
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