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S. B. No. 165 As IntroducedAs Introduced
128th General Assembly | Regular Session | 2009-2010 |
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Cosponsors:
Senators Gibbs, Stewart, Carey, Harris, Seitz
A BILL
To amend sections 1509.01, 1509.02, 1509.03, 1509.04,
1509.05,
1509.06, 1509.07, 1509.071, 1509.072,
1509.10,
1509.11, 1509.12, 1509.13, 1509.14,
1509.17, 1509.18,
1509.20, 1509.21, 1509.22,
1509.221, 1509.222,
1509.225, 1509.226, 1509.23,
1509.27, 1509.31, 1509.35,
1509.36, and 5749.06
and to enact sections 1509.062, 1509.19, 1509.34,
1509.50, and 1571.18
of the Revised Code to
revise the Oil and Gas Law.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 1509.01, 1509.02, 1509.03, 1509.04,
1509.05,
1509.06, 1509.07, 1509.071, 1509.072, 1509.10, 1509.11,
1509.12,
1509.13, 1509.14, 1509.17, 1509.18, 1509.20, 1509.21,
1509.22, 1509.221,
1509.222, 1509.225, 1509.226, 1509.23,
1509.27, 1509.31, 1509.35,
1509.36, and 5749.06 be amended and
sections 1509.062, 1509.19, 1509.34, 1509.50, and 1571.18 of the
Revised Code be enacted to read as follows:
Sec. 1509.01. As used in this chapter:
(A) "Well" means any borehole, whether drilled or bored,
within the state for production, extraction, or injection of any
gas or liquid mineral, excluding potable water to be used as
such,
but including natural or artificial brines and oil field
waters.
(B) "Oil" means crude petroleum oil and all other
hydrocarbons, regardless of gravity, that are produced in liquid
form by ordinary production methods, but does not include
hydrocarbons that were originally in a gaseous phase in the
reservoir.
(C) "Gas" means all natural gas and all other fluid
hydrocarbons that are not oil, including
condensate.
(D) "Condensate" means liquid hydrocarbons that were
originally in the gaseous phase in the reservoir.
(E) "Pool" means an underground reservoir containing a
common
accumulation of oil or gas, or both, but does not include
a gas
storage reservoir. Each zone of a geological structure
that is
completely separated from any other zone in the same
structure may
contain a separate pool.
(F) "Field" means the general area underlaid by one or
more
pools.
(G) "Drilling unit" means the minimum acreage on which one
well may be drilled, but does not apply to a well for injecting
gas into or removing gas from a gas storage reservoir.
(H) "Waste" includes all of the following:
(1) Physical waste, as that term generally
is understood
in
the oil and gas industry;
(2) Inefficient, excessive, or improper use, or the
unnecessary dissipation, of reservoir energy;
(3) Inefficient storing of oil or gas;
(4) Locating, drilling, equipping, operating, or producing
an
oil or gas well in a manner that reduces or tends to reduce
the
quantity of oil or gas ultimately recoverable under prudent
and
proper operations from the pool into which it is drilled or
that
causes or tends to cause unnecessary or excessive surface
loss or
destruction of oil or gas;
(5) Other underground or surface waste in the production
or
storage of oil, gas, or condensate, however caused.
(I) "Correlative rights" means the reasonable opportunity
to
every person entitled thereto to recover and receive the oil
and
gas in and under the person's tract or tracts, or the
equivalent
thereof, without having to drill unnecessary wells or incur other
unnecessary expense.
(J) "Tract" means a single, individually taxed parcel of
land
appearing on the tax list.
(K) "Owner," unless referring to a mine, means the person
who
has the right to drill on a tract or drilling unit, to
drill into
and produce from a pool, and to appropriate the oil or
gas
produced therefrom either for
the person or for others,
except
that a person ceases to be an owner with respect to a well when
the
well has been plugged in accordance with applicable rules
adopted and orders
issued under this chapter. "Owner" does not
include a person who obtains a lease of the mineral rights for oil
and gas on a parcel of land if the person does not attempt to
produce or produce oil or gas from a well or obtain a permit under
this chapter for a well or if the entire interest of a well is
transferred to the person in accordance with division (B) of
section 1509.31 of
the Revised Code.
(L) "Royalty interest" means the fee holder's share in
the
production from a well.
(M) "Discovery well" means the first well capable of
producing oil or gas in commercial quantities from a pool.
(N) "Prepared clay" means a clay that is plastic and is
thoroughly saturated with fresh water to a weight and consistency
great enough to settle through saltwater in the well in which it
is to be used, except as otherwise approved by the chief of the
division of mineral resources management.
(O) "Rock sediment" means the combined cutting and residue
from drilling sedimentary rocks and formation.
(P) "Excavations and workings," "mine," and "pillar" have
the
same meanings as in section 1561.01 of the
Revised Code.
(Q) "Coal bearing township" means a township designated as
such by the chief under
section
1561.06 of the Revised Code.
(R) "Gas storage reservoir" means a continuous area of a
subterranean porous sand or rock stratum or strata into which gas
is or may be injected for the purpose of storing it therein and
removing it therefrom and includes a gas storage reservoir as
defined in section 1571.01 of the
Revised Code.
(S) "Safe Drinking Water Act" means the "Safe Drinking
Water
Act," 88 Stat. 1661 (1974), 42 U.S.C.A. 300(f),
as amended by the
"Safe Drinking Water Amendments of 1977," 91
Stat. 1393, 42
U.S.C.A. 300(f), the "Safe Drinking
Water Act Amendments of 1986,"
100
Stat. 642, 42 U.S.C.A. 300(f), and the "Safe Drinking Water
Act Amendments of 1996," 110
Stat. 1613, 42 U.S.C.A. 300(f), and
regulations adopted
under those acts.
(T) "Person" includes any political subdivision,
department,
agency, or instrumentality of this state; the United
States and
any department, agency, or instrumentality thereof;
and any legal
entity defined as a person under section 1.59 of
the Revised Code.
(U) "Brine" means all saline geological formation water
resulting from, obtained from, or produced in connection with
the
exploration, drilling, or well stimulation, production of oil or
gas, or plugging of a well.
(V) "Waters of the state" means all streams, lakes, ponds,
marshes, watercourses, waterways, springs, irrigation systems,
drainage systems, and other bodies of water, surface or
underground, natural or artificial, that are situated wholly or
partially within this state or within its jurisdiction, except
those private waters that do not combine or effect a junction
with
natural surface or underground waters.
(W) "Exempt Mississippian well" means a well that meets
all
of the following criteria:
(1) Was drilled and completed before January 1, 1980;
(2) Is located in an unglaciated part of the state;
(3) Was completed in a reservoir no deeper than the
Mississippian Big Injun sandstone in areas underlain by
Pennsylvanian or Permian stratigraphy, or the Mississippian berea
Berea sandstone in areas directly underlain by Permian
stratigraphy;
(4) Is used primarily to provide oil or gas for domestic
use.
(X) "Exempt domestic well" means a well that meets all of
the
following criteria:
(1) Is owned by the owner of the surface estate of the
tract
on which the well is located;
(2) Is used primarily to provide gas for the owner's
domestic
use;
(3) Is located more than two hundred feet horizontal
distance
from any inhabited private dwelling house other than an
inhabited
private dwelling house located on the tract on which
the well is
located;
(4) Is located more than two hundred feet horizontal
distance
from any public building that may be used as a place of
resort,
assembly, education, entertainment, lodging, trade,
manufacture,
repair, storage, traffic, or occupancy by the
public.
(Y) "Urbanized area" means an area where a well or production
facilities of a well are located within a municipal corporation or
within a township that has an unincorporated population of more
than five thousand in the most recent federal decennial census
prior to the issuance of the permit for the well or production
facilities.
(Z) "Well stimulation" or "stimulation of a well" means the
process of enhancing well productivity, including hydraulic
fracturing operations.
(AA) "Production operation" means site preparation, access
roads, drilling,
well completion, well stimulation, well
operation, site
reclamation, and well plugging. "Production
operation" also
includes all of the following:
(1) The piping and equipment used for the production and
preparation of hydrocarbon gas or liquids for transportation or
delivery;
(2) The processes of extraction and recovery, lifting,
stabilization, treatment, separation, production processing,
storage, and measurement of hydrocarbon gas and liquids;
(3) The processes associated with production compression, gas
lift, gas injection, and fuel gas supply.
(BB) "Gathering" means the use of any pipeline or series of
pipelines to collect and transport natural gas from the
furthermost downstream point in a production operation to the
furthermost downstream point of the series of endpoints identified
as the end of a gathering line under the "Natural Gas Pipeline
Safety Act of 1968," 82 Stat. 720 (1968), 49. U.S.C. App. 1671 et
seq., as amended, and the regulations adopted under it, including,
without limitation, 49 C.F.R. part 192.
(CC) "Annular overpressurization" means the accumulation of
fluids within an annulus with sufficient pressure to allow
migration of annular fluids into underground sources of drinking
water.
(DD) "Idle and orphaned well" means a well for which a bond
has been forfeited or an abandoned well for which no money is
available to plug the well in accordance with this chapter and
rules adopted under it.
(EE) "Temporarily inactive well" means a well that has been
granted temporary inactive status under section 1509.062 of the
Revised Code.
(FF) "Material and substantial violation" means all of the
following:
(1) Failure to obtain a permit to drill, reopen, convert,
plugback, or plug a well under this chapter;
(2) Failure to obtain or maintain insurance coverage that is
required under this chapter;
(3) Failure to obtain or maintain a surety bond that is
required under this chapter;
(4) Failure to plug an abandoned well or idle and orphaned
well unless the well has been granted temporary inactive status
under
section 1509.062 of the Revised Code or the chief has
approved another option concerning
the abandoned well or idle and
orphaned well;
(5) Failure to restore a disturbed land surface as required
by section 1509.072 of the Revised Code;
(6) Failure to reimburse the oil and gas fund pursuant to a
final order issued under section 1509.071 of the Revised Code;
(7) Failure to comply with a final nonappealable order of the
chief issued under
section 1509.04 of the Revised Code.
Sec. 1509.02. There is hereby created in the department of
natural resources the division of mineral resources
management,
which shall be
administered by the chief of the division of
mineral
resources management. The division has sole and exclusive
authority to regulate the permitting, location, and spacing of oil
and gas wells within the state. The regulation of oil and gas
activities is a matter of general statewide interest that requires
uniform statewide regulation, and this chapter and rules adopted
under it constitute a comprehensive plan with respect to all
aspects of the locating, drilling, and operating of oil and gas
wells within this state, including site restoration and disposal
of wastes from those wells. Nothing in this section affects the
authority granted to the director of transportation and local
authorities in section 4513.34 of the Revised Code.
The chief shall not hold any other public office, nor shall
the chief be engaged in any occupation or business that might
interfere with or be inconsistent with the duties as chief.
All moneys collected by the chief pursuant to sections
1509.06, 1509.061, 1509.062, 1509.071, 1509.13, 1509.22, and
1509.221, 1509.222, 1509.34, 1509.50, and 1571.18,
ninety per cent
of moneys received by the treasurer of state from
the tax
levied
in divisions (A)(5) and (6) of section 5749.02,
all
civil
penalties paid
under section 1509.33, and, notwithstanding
any
section of the
Revised Code relating to the distribution or
crediting of fines for
violations of the Revised Code, all fines
imposed under divisions
(A) and (B) of section 1509.99 of the
Revised Code and fines
imposed under divisions (C) and (D) of
section 1509.99 of the
Revised Code for all violations prosecuted
by the attorney
general and for violations prosecuted by
prosecuting attorneys
that do not involve the transportation of
brine by vehicle shall
be deposited into the state treasury to the
credit of the oil and
gas well fund, which is hereby created.
Fines imposed
under divisions (C) and (D) of section 1509.99 of
the Revised Code for
violations prosecuted by prosecuting
attorneys that involve the
transportation of brine by vehicle and
penalties associated with a compliance agreement entered into
pursuant to this chapter shall be paid to the county
treasury of
the county where the violation occurred.
The fund shall be used solely and exclusively for the
purposes enumerated in
division
(B) of section 1509.071 of the
Revised Code, for the
expenses of the
division associated with
the administration of the
"Natural Gas
Policy Act of 1978," 92
Stat. 3358, 15 U.S.C. 3301,
and for the
division's other
functions this chapter and Chapter 1571. of the Revised Code and
rules adopted under them, and for expenses that are critical and
necessary for the protection of human health and safety and the
environment related to oil and gas production in this state. The
expenses of the
division in
excess of the moneys available in the
fund shall be
paid from
general revenue fund appropriations to
the department.
Sec. 1509.03. The chief of the division of mineral
resources
management
shall adopt, rescind, and amend, in accordance
with
Chapter 119. of the
Revised Code, rules for the
administration,
implementation, and enforcement of this chapter. The rules shall
include an identification of the subjects that the chief shall
address when attaching terms and conditions to a permit with
respect to a well and production facilities of a well that are
located within an urbanized area. The subjects shall include all
of the following:
(A) Safety concerning the drilling or operation of a well;
(B) Protection of the public and private water supply;
(C) Location of surface facilities of a well;
(D) Fencing and screening of surface facilities of a well;
(E) Containment and disposal of drilling and production
wastes;
(F) Construction of access roads for purposes of the drilling
and operation of a well;
(G) Noise mitigation for purposes of the drilling of a well.
No
person shall violate any rule
of the
chief adopted under
this chapter.
Prior to the issuance of a permit to drill a proposed well
that will be located within an urbanized area, the division of
mineral resources management shall conduct a site review to
identify and
evaluate any site-specific terms and conditions that
may be
attached to the permit.
Any order issuing, denying, or modifying a permit or
notices
required to be made by the chief pursuant to this chapter shall
be
made in compliance
with Chapter
119. of the Revised Code,
except
that personal service may be used in lieu of service by
mail.
Every order issuing, denying, or modifying a permit under
this
chapter and described as
such shall be
considered an adjudication
order for purposes of Chapter
119. of the Revised Code.
Where notice to the owners is required by this chapter, the
notice shall
be given as
prescribed by a
rule adopted by the chief
to govern the giving of notices. Such The
rule shall provide for
notice by publication except in those
cases where other types of
notice are necessary in order to meet
the requirements of the law.
The chief or the chief's authorized representative may at
any
time enter upon lands, public or private, for the purpose of
administration or enforcement of this chapter, the rules adopted
or orders made
thereunder, or terms or conditions
of permits or
registration certificates issued thereunder and may
examine and
copy records pertaining to the drilling, conversion,
or operation
of a well for injection of fluids and logs required
by division
(C) of section 1509.223 of the Revised Code. No
person shall
prevent or hinder the chief or the chief's
authorized
representative in the performance of official
duties. If entry is
prevented or hindered, the chief or
the
chief's authorized
representative
may apply for, and the court of common pleas may
issue, an
appropriate inspection warrant necessary to achieve the
purposes
of this chapter within the court's territorial
jurisdiction.
The chief may issue orders to enforce this chapter, rules
adopted thereunder, and terms or conditions of permits issued
thereunder. Any such order shall be considered an adjudication
order for the purposes of Chapter 119. of the Revised Code. No
person shall violate any order of the chief issued under this
chapter. No person shall violate a term or condition of a permit
or registration certificate issued under this chapter.
Orders of the chief denying, suspending, or revoking a
registration certificate; approving or denying approval of an
application for revision of a registered transporter's plan for
disposal; or to implement, administer, or enforce division (A) of
section 1509.224 and sections 1509.22, 1509.222, 1509.223,
1509.225, and 1509.226 of the Revised Code pertaining to the
transportation of brine by vehicle and the disposal of brine so
transported are not adjudication orders for purposes of Chapter
119. of the Revised Code. The chief shall issue such orders
under
division (A) or (B) of section 1509.224 of the Revised
Code, as
appropriate.
As used in this section, "urbanized area" means an area where
a well or production facilities of a well are located within a
municipal corporation or within a township that has an
unincorporated population of more than five thousand in the most
recent federal decennial census prior to the issuance of the
permit for the well or production facilities.
Sec. 1509.04. The chief of the division of
mineral resources
management, or the
chief's authorized representatives, shall
enforce this chapter and
the rules, terms
and
conditions of
permits and registration certificates, and orders adopted
or
issued pursuant thereto, except that any "peace officer," as
defined in section 2935.01 of the Revised Code, may arrest for
violations of this chapter involving transportation of brine by
vehicle. The
The chief or the chief's authorized representative may
issue
a citation to an owner
for a violation of this chapter or rules
adopted under it, terms
and conditions of a permit issued under
it, a registration
certificate that is required under this
chapter, or orders issued
under this chapter. A citation may be
in the form of a compliance
notice or administrative order.
The chief may issue an order to initiate an enforcement
action for a material and substantial violation. In addition, the
chief may issue a suspension order for failure to comply with an
enforcement action for a material and substantial violation or
other violation.
The chief may order the immediate suspension of drilling,
operating, or plugging activities that are related to a material
and substantial violation and suspend and revoke an unused
permit
after finding that an owner
is causing, engaging in, or
maintaining a condition or
activity
that the chief determines
presents an imminent danger to
the
health or safety of the
public or that results in or is
likely to
result in immediate
substantial damage to the natural
resources
of this state. The
chief may issue
such an order without prior
notification if
reasonable attempts to
notify the owner have failed
or if the
owner is currently in material breach of a prior enforcement
action, but in such an event
notification
shall be given as soon
thereafter as practical.
Not later than five days after the issuance of a suspension
order, the chief shall provide the owner an opportunity to be
heard and to present evidence
that the condition or activity does
not
present an imminent
danger to the public health or safety or
is not likely to result
in
immediate substantial damage to
natural resources. 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.
The
owner may
appeal a
suspension order
to the court
of common pleas of the
county in
which the activity
that is the
subject of the order is
located.
The chief also may issue a bond forfeiture order pursuant to
section 1509.071 of the Revised Code.
The chief may notify drilling contractors, transporters,
service companies, or other similar entities of the compliance
status of an owner.
If the owner fails to
comply with a prior enforcement
action, the chief may issue a
suspension order without prior
notification, but in such an event
the chief shall give notice as
soon thereafter as practical. Not
later than five calendar days
after the issuance of an order, the
chief shall provide the owner
an opportunity to be heard and to present evidence that required
records, reports, or logs have been submitted. If the
chief,
after considering the evidence presented by the owner,
determines
that the reporting
requirements have been satisfied, the chief
shall revoke the
suspension order. The owner may appeal
a
suspension order to the court of common pleas of the county in
which the activity that is the subject of the suspension order is
located.
The prosecuting attorney of the county or the attorney
general, upon the request of the chief, may apply to the court of
common pleas in the county in which any of the provisions of
this
chapter or any rules,
terms or
conditions of a permit or
registration certificate, or orders adopted
or
issued pursuant to
this
chapter are being
violated for a temporary restraining order,
preliminary
injunction, or permanent injunction restraining any
person from
such violation.
The chief may enter into compliance agreements.
Sec. 1509.05. No person shall drill a new well, drill an
existing well any
deeper, reopen a well, convert a well to any use
other than its original
purpose, or plug back a well to a source
of supply different from the existing
pool, without having a
permit to do so issued by the chief of the division of
mineral
resources management, and until the original
permit or a
photostatic copy thereof is
posted or displayed in a conspicuous
and easily accessible place at the well
site, with the name,
current address, and telephone number of the permit
holder and the
telephone numbers for fire and emergency medical services
maintained on the posted permit or copy. The permit or a copy
shall be
continuously displayed in such that manner at all times
during the work authorized
by the permit.
Such A permit shall be issued by the chief in accordance with
this chapter
and. A permit issued under this section for a well
that is or is to be located in an urbanized area shall be valid
for twelve months, and all other permits issued under this section
shall be valid for twenty-four months.
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, including associated production
operations, 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
within an urbanized area, a sworn statement that the applicant has
provided notice by regular mail of the application to the owner of
each occupied
dwelling unit parcel of real property 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 parcel of
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 parcels of real property
shall be determined using the tax
records of the municipal
corporation or county in which the
dwelling unit a parcel of real
property 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 (1) Except as provided in division (C)(2)
of this
section, the chief shall not
issue a permit for at least
ten days
after the date of filing of
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
unless the chief denies the
application
by order.
(2) If the location of a well or proposed well will be or is
within an urbanized area, the chief shall not issue a permit for
at least eighteen days after the date of filing of the application
for the permit unless, upon reasonable cause shown, the chief
waives that period or the chief at the chief's discretion grants a
request for an expedited review. However, the chief shall issue a
permit for a well or proposed well within an urbanized area within
thirty days of the filing of the application unless the chief
denies the application by order.
(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 two hundred fifty
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 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, 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. The issuance of
a permit shall not be considered an order of the chief.
(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 Five hundred
fifty
dollars for a permit to conduct
activities in a township with a population of fewer than five ten
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)(3) 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.
(4) If the application is for a permit that requires
mandatory pooling, an additional five thousand dollars.
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 A permittee
or a permittee's authorized representative shall notify an
inspector from the division of mineral resources management at
least twenty-four hours, or another time period agreed to by the
chief's authorized representative, prior to the commencement of
drilling, reopening, converting, well stimulation, or plugback
operations.
Sec. 1509.062. (A)(1) The owner of a well that has not been
completed, a well that has not produced within one year after
completion, or an existing well that has no reported production
for two consecutive reporting periods as reported in accordance
with section 1509.11 of the Revised Code shall plug the well in
accordance with section 1509.12 of the Revised Code, obtain
temporary inactive well status for the well in accordance with
this section, or perform another activity regarding the well that
is approved by the chief of the division of mineral resources
management.
(2) If a well has a reported annual production that is less
than one hundred thousand cubic feet of natural gas or fifteen
barrels of crude oil, or a combination thereof, the chief may
require the owner of the well to submit an application for
temporary inactive well status under this section for the well.
(B) In order for the owner of a well to submit an application
for temporary inactive well status for the well under this
division, the owner and the well shall be in compliance with this
chapter and rules adopted under it, any terms and conditions of
the permit for the well, and applicable orders issued by the
chief. An application for temporary inactive status for a well
shall be submitted to the chief on a form prescribed and provided
by the chief and shall contain all of the following:
(1) The owner's name and address and, if the owner is a
corporation, the name and address of the corporation's statutory
agent;
(2) The signature of the owner or of the owner's authorized
agent. When an authorized agent signs an application, the
application shall be accompanied by a certified copy of the
appointment as such agent.
(3) The permit number assigned to the well. If the well has
not been assigned a permit number, the chief shall assign a permit
number to the well.
(4) A map, on a scale not smaller than four hundred feet to
the inch, that shows the location of the well and the tank
battery, that includes the latitude and longitude of the well, and
that contains all other data that are required by the chief;
(5) A demonstration that the well is of future utility and
that the applicant has a viable plan to utilize the well within a
reasonable period of time;
(6) A demonstration that the well poses no threat to the
health or safety of persons, property, or the environment;
(7) Any other relevant information that the chief prescribes
by rule.
The chief may waive any of the requirements established in
divisions (B)(1) to (6) of this section if the division of mineral
resources management possesses a current copy of the information
or document that is required in the applicable division.
(C) Upon receipt of an application for temporary inactive
well status, the chief shall review the application and shall
either deny the application by issuing an order or approve the
application. The chief shall approve the application only if the
chief determines that the well that is the subject of the
application poses no threat to the health or safety of persons,
property, or the environment. If the chief approves the
application, the chief shall notify the applicant of the chief's
approval. Upon receipt of the chief's approval, the owner shall
shut in the well and empty all liquids and gases from all storage
tanks, pipelines, and other equipment associated with the well. In
addition, the owner shall maintain the well, other equipment
associated with the well, and the surface location of the well in
a manner that prevents hazards to the health and safety of people
and the environment. The owner shall inspect the well at least
every six months and submit to the chief within fourteen days
after the inspection a record of inspection on a form prescribed
and provided by the chief.
(D) Not later than thirty days prior to the expiration of
temporary inactive well status or a renewal of temporary inactive
well status approved by the chief for a well, the owner of the
well may submit to the chief an application for renewal of the
temporary inactive well status on a form prescribed and provided
by the chief. The application shall include a detailed plan that
describes the ultimate disposition of the well, the time frames
for that disposition, and any other information that the chief
determines is necessary. The chief shall either deny an
application by order or approve the application. If the chief
approves the application, the chief shall notify the owner of the
well of the chief's approval.
(E) An application for temporary inactive well status shall
be accompanied by a nonrefundable fee of one hundred dollars. An
application for a renewal of temporary inactive well status shall
be accompanied by a nonrefundable fee of two hundred fifty dollars
for the first renewal and five hundred dollars for each subsequent
renewal.
(F) After a third renewal, the chief may require an owner to
provide a surety bond
in an amount not to exceed ten thousand
dollars for each of the
owner's wells that has been approved by
the chief for temporary
inactive well status.
(G) Temporary inactive well status approved by the chief
expires one year after the date of approval of the application for
temporary inactive well status or production from the well
commences, whichever occurs sooner. In addition, a renewal of a
temporary inactive well status expires one year after the
expiration date of the initial temporary inactive well status or
one year after the expiration date of the previous renewal of the
temporary inactive well status, as applicable, or production from
the well commences, whichever occurs sooner.
(H) The owner of a well that has been approved by the chief
for temporary inactive well status may commence production from
the well at any time. Not later than sixty days after the
commencement of production from such a well, the owner shall
notify the chief of the commencement of production.
(I) This chapter and rules adopted under it, any terms and
conditions of the permit for a well, and applicable orders issued
by the chief apply to a well that has been approved by the chief
for temporary inactive well status or renewal of that status.
Sec. 1509.07. An owner of any well, except an exempt
Mississippian well or an exempt domestic well, shall obtain
liability
insurance coverage from
a company authorized to do
business in this state in an amount
of not less than three hundred
thousand one million dollars bodily injury
coverage and three
hundred thousand dollars property damage
coverage to pay damages
for injury to persons or damage to
property caused by the
drilling, operation, or plugging of all
the owner's wells in this
state. However, if any well is located within an urbanized area,
the owner shall obtain liability insurance coverage in an amount
of not less than three million dollars for bodily injury coverage
and property damage coverage to pay damages for injury to persons
or damage to property caused by the drilling, operation, or
plugging of all of the owner's wells in this state. The owner
shall maintain that
the coverage until all the owner's wells are
plugged and
abandoned as required by law or are transferred to an
owner who has obtained insurance as required under this
section
and who is not under a notice of material and substantial
violation or under a suspension order. The
owner shall provide
proof of liability
insurance coverage to the chief
of the division
of mineral resources management upon
request. Upon failure of the
owner to provide that proof when
requested, the chief may order
the suspension of
any outstanding permits and operations of the
owner until the owner
provides proof of the required insurance
coverage.
Except as otherwise provided in this section, an owner of any
well, before being issued a permit under
section 1509.06 of the
Revised Code or before operating or producing from a well, shall
execute and file with
the division of mineral resources management
a
surety bond conditioned on compliance
with the
restoration
requirements of section 1509.072, the plugging
requirements of
section 1509.12, the permit provisions of section
1509.13 of the
Revised Code, and all rules and orders of the
chief relating
thereto, in an amount set by rule of the chief.
The owner may deposit with the chief, instead of a surety
bond, cash in an amount equal to the surety bond as prescribed
pursuant to this section or negotiable certificates of deposit or
irrevocable letters of
credit, issued by any
bank organized or
transacting business in this state or
by any savings and loan
association as defined in section 1151.01 of the Revised Code,
having a cash value equal to or greater than the amount of the
surety bond as prescribed pursuant to this section. Cash or
certificates
of deposit shall be deposited upon the same terms as
those upon
which surety bonds may be deposited. If certificates of
deposit
are deposited with the chief instead of a surety bond, the
chief shall
require the bank or savings and loan association that
issued any
such certificate to pledge securities of a cash value
equal to
the amount of the certificate that is in excess of the
amount
insured by any of the agencies and instrumentalities
created
under the "Federal Deposit Insurance Act," 64 Stat. 873
(1950), 12 U.S.C.
1811, as amended, and regulations adopted under
it, including at least the
federal
deposit insurance corporation,
bank insurance fund, and savings association
insurance fund. The
securities shall be security for
the repayment of the certificate
of deposit.
Immediately upon a
deposit of cash, certificates of deposit,
or letters of credit with the chief,
the chief shall deliver
them
to the treasurer of state who shall hold them in trust for the
purposes for which they have been deposited.
Instead of a surety bond, the chief may accept proof of
financial responsibility consisting of a sworn financial
statement
showing a net financial worth within this state equal
to twice the
amount of the bond for which it substitutes and, as
may be
required by the chief, a list of producing properties of
the owner
within this state or other evidence showing
ability and intent to
comply with the law and rules concerning
restoration and plugging
that may be required by rule of the
chief. The owner of an exempt
domestic or exempt Mississippian
well is not required to file
scheduled updates of the financial documents, but
shall file
updates of those documents if requested to do so by the chief. The
owner of a nonexempt domestic or nonexempt Mississippian well
shall
file updates of the financial documents in accordance with a
schedule
established by rule of the chief. The chief, upon
determining that
an owner for whom the chief has
accepted proof of
financial responsibility instead of bond cannot
demonstrate
financial responsibility, shall order that the owner
execute and
file a bond or deposit cash, certificates of
deposit, or
irrevocable letters of credit as required by this section for the
wells specified in
the order within ten days of receipt of the
order. If the order
is not complied with, all wells of the owner
that are specified
in the order and for which no bond is filed or
cash,
certificates of deposit, or letters of credit are deposited
shall be plugged.
No owner shall fail or
refuse to plug such a
well. Each day on which such a well
remains unplugged thereafter
constitutes a separate offense.
The surety bond provided for in this section shall be
executed by a surety company authorized to do business in this
state.
The chief shall not approve any bond until it is personally
signed and acknowledged by both principal and surety, or as to
either by the principal's or surety's attorney in fact, with
a
certified copy of the
power of attorney attached thereto. The
chief shall not approve
a bond unless there is attached a
certificate of the
superintendent of insurance that the company is
authorized to
transact a fidelity and surety business in this
state.
All bonds shall be given in a form to be prescribed by the
chief and shall run to the state as obligee.
An owner of an exempt
Mississippian well or an exempt
domestic well, in lieu of filing a surety bond, cash in an
amount
equal to the surety bond, certificates of deposit,
irrevocable
letters of credit, or a sworn financial statement,
may file a
one-time fee of fifty dollars, which shall be
deposited in the oil
and gas well plugging fund created in
section 1509.071 of the
Revised
Code.
An owner, operator, producer, or other person shall not
operate a well or produce from a well at any time if the owner,
operator, producer, or other person has not satisfied the
requirements established in this section.
Sec. 1509.071. (A) When the chief of the division of
mineral
resources
management finds that an owner has failed to
comply with
the restoration
requirements of section 1509.072,
plugging
requirements of
section 1509.12, or permit provisions of
section
1509.13 of the
Revised Code, or rules and orders relating
thereto,
the chief shall
make
a finding of that fact and declare
any surety
bond filed to
ensure compliance with those sections and
rules
forfeited in the
amount set by rule of the chief. The chief
thereupon shall
certify the total forfeiture to the attorney
general, who shall
proceed to collect the amount of the
forfeiture. In addition, the chief may require an owner, operator,
producer, or other person who forfeited a surety bond to post a
new surety bond in the amount of fifteen thousand dollars for a
single well, thirty thousand dollars for two wells, or fifty
thousand dollars for three or more wells.
In lieu of total forfeiture, the surety or owner, at its the
surety's or owner's option, may
cause the well to be properly
plugged and abandoned and the area
properly restored or pay to the
treasurer of state the cost
of
plugging and abandonment.
(B) All moneys collected because of forfeitures of
bonds as
provided in this section shall be deposited in the state
treasury
to the credit of the oil and gas well fund created in section
1509.02 of the Revised Code. The fund
The chief annually shall be
expended by the
chief spend not
less than fourteen per cent of the revenue credited to the fund
during the previous fiscal year
for the following purposes in
addition to the other purposes
specified in
that section:
(1) In accordance with division (D) of this section, to
plug
idle and orphaned wells or to
restore the land surface properly as
required
in
section 1509.072 of the Revised Code for which the
bonds
have
been
forfeited, for abandoned wells for which no funds
are
available to
plug the wells in accordance with this
chapter,
or to use
abandoned wells for the injection of oil or gas
production wastes;
(2) In accordance with division (E) of this section, to
correct conditions
that the chief reasonably has determined are
causing imminent health or safety
risks at an idle and orphaned
well or a well for which the owner cannot be contacted in order to
initiate a corrective action within a reasonable period of time as
determined by the chief.
Expenditures from the fund shall be made only for lawful
purposes. In addition, expenditures from the fund shall not be
made to purchase real property or to remove a dwelling in order to
access a well.
(C)(1) Upon determining that
the owner of a well has failed
to properly plug and
abandon it or to properly restore the land
surface at the well
site in compliance with the applicable
requirements of this
chapter and applicable rules adopted and
orders issued under it or that a
well is an abandoned well for
which no funds are available to
plug the well in accordance with
this chapter, the chief shall
do all of the following:
(a) Determine from the records in the office of
the county
recorder of the county in which the well is located
the identity
of the owner of the land on which the well is located, the
identity of the owner of the oil or gas lease under which the well
was drilled
or the identity of each person owning an interest in
the lease, and the
identities of the persons having legal
title
to, or a lien upon, any of the equipment appurtenant to
the well;
(b) Mail notice to the owner of the
land on which the well
is
located informing the landowner that
the well is to be plugged.
If
the owner of the oil or gas lease under which
the well was
drilled
is different from the owner of the well or if any persons
other
than the owner of the well own interests in the lease, the
chief
also
shall mail notice that the well is to be plugged to the
owner
of the lease or
to each person owning an interest in the
lease, as
appropriate.
(c) Mail notice to each person having
legal title to, or a
lien upon, any equipment appurtenant to the
well, informing the
person that the well is to be plugged and
offering the person the
opportunity to plug the well and restore
the land surface at the
well site at the person's own expense in
order to avoid forfeiture
of the equipment to this state.
(2) If none of the persons described in division
(C)(1)(c)
of
this section plugs the well within sixty days after the
mailing
of
the notice required by that division, all equipment
appurtenant
to
the well is hereby declared to be forfeited to
this state
without
compensation and without the necessity for
any action by
the state
for use to defray the cost of plugging
and abandoning
the well and
restoring the land surface at the
well site.
(D) Expenditures from the fund for the purpose of division
(B)(1) of
this
section shall be made in accordance with either of
the following:
(1) The expenditures may be made pursuant to contracts
entered into by
the chief with
persons who agree to furnish all of
the materials, equipment,
work, and labor as specified and
provided in such a contract for activities associated with the
restoration or plugging of a well as determined by the chief. The
activities may include excavation to uncover a well, geophysical
methods to locate a buried well when clear evidence of leakage
from the well exists, cleanout of wellbores to remove material
from a failed plugging of a well, plugging operations,
installation of vault and vent systems, including associated
engineering certifications and permits, restoration of property,
and repair of damage to property that is caused by such
activities. Expenditures shall not be used for salaries,
maintenance, equipment, or other administrative purposes, except
for costs directly attributed to the plugging of an idle and
orphaned well. Agents
or
employees of persons
contracting with
the chief for the
a
restoration, or plugging, and
injection
projects project may enter
upon any
land, public or private,
on
which the well is located for
the purpose of performing the work.
Prior to such entry, the
chief
shall give to the following
persons
written notice of the
existence of a contract for a
project to
restore, or plug, or
inject
oil or gas production
wastes into a well,
the names of the
persons with whom the
contract is made, and the
date that the
project will commence: the
owner of the well, the
owner of the
land upon which the well is
located, the owner or
agents of
adjoining land, and, if the well
is located in the same
township
as or in a
township adjacent to
the excavations and
workings of a
mine and the owner or
lessee of
that mine has
provided written
notice identifying those townships
to
the chief
at any time during
the immediately preceding three
years, the
owner
or lessee of the
mine.
(2)(a) The owner of the land
on which a well is located who
has received notice under
division (C)(1)(b) of this section may
plug
the well and be reimbursed by the division for the reasonable
cost of plugging the well. In order to plug the well, the
landowner
shall submit an application to the chief on a form
prescribed by
the chief and approved by the technical advisory
council on oil
and gas created in section 1509.38 of the
Revised
Code. The application, at a
minimum, shall require the landowner
to provide the same
information as is required to be included in
the application for
a permit to plug and abandon under section
1509.13 of the
Revised Code. The application shall be
accompanied
by a copy of a proposed contract to plug the well
prepared by a
contractor regularly engaged in the business of
plugging oil and
gas wells. The proposed contract shall require
the contractor to
furnish all of the materials, equipment, work,
and labor necessary
to plug the well properly and shall
specify the price for
doing
the work, including a credit for the equipment appurtenant to the
well
that was forfeited to the state through the operation of
division
(C)(2) of this section. Expenditures under division
(D)(2)(a) of this section shall be consistent with the
expenditures for activities described in division (D)(1) of this
section. The application
also shall be
accompanied by the permit
fee required by section
1509.13 of the
Revised Code unless the
chief, in the
chief's discretion, waives
payment of the permit
fee. The application
constitutes an
application for a permit to
plug and abandon the
well for the
purposes of section 1509.13 of
the
Revised Code.
(b) Within thirty days after
receiving an application and
accompanying proposed contract
under division
(D)(2)(a) of this
section, the chief shall determine
whether the plugging would
comply with the applicable requirements of this chapter and
applicable rules adopted and orders issued under it and whether
the cost of the plugging under the proposed contract is
reasonable. If the chief determines that the proposed
plugging
would comply with those requirements and that the
proposed cost of
the plugging is reasonable, the chief shall notify the
landowner
of that determination and issue to the landowner a
permit to plug
and abandon the well under section 1509.13 of the
Revised Code.
Upon approval of the
application and proposed contract, the chief
shall transfer
ownership of the equipment appurtenant to the well
to the
landowner. The chief may disapprove an application
submitted
under division (D)(2)(a)
of this section if the chief
determines that the proposed
plugging would not comply with the
applicable requirements of
this chapter and applicable rules
adopted and orders issued
under it, that the cost of the plugging
under the proposed
contract is unreasonable, or that the proposed
contract is not a
bona fide, arms length contract.
(c) After receiving the chief's
notice of the approval of
the
application and permit to plug and
abandon a well under
division
(D)(2)(b) of this section, the landowner shall
enter into
the
proposed contract to plug the well. The plugging shall be
completed within one hundred eight days after the landowner
receives the notice of approval and permit.
(d) Upon determining that the
plugging has been completed
within the time required by division
(D)(2)(c)
of this section and
has been completed in compliance with
the applicable requirements
of this chapter and applicable rules
adopted and orders issued
under it, the chief shall reimburse
the landowner for the cost of
the plugging as set forth in the
proposed contract approved by the
chief. The reimbursement
shall be paid from the oil and gas well
fund. If the
chief determines that the plugging was not completed
within the
required time or was not completed in accordance with
the applicable
requirements, the chief shall not reimburse the
landowner for
the cost of the plugging, and the landowner or the
contractor, as applicable,
promptly shall
transfer back to this
state title to and possession of the equipment
appurtenant
to the
well that previously was transferred to the landowner
under
division (D)(2)(b)
of this section. If any such equipment was
removed from the
well during the plugging and sold, the landowner
shall pay to
the chief the proceeds from the sale of the
equipment, and the
chief promptly shall pay the moneys so received
to the treasurer
of state for deposit into the oil and gas well
fund.
The chief may establish an annual limit on the number of
wells that may be plugged under division
(D)(2) of this section or
an
annual limit on the expenditures to be made under that
division.
As used in division
(D)(2) of this section,
"plug"
and
"plugging" include the plugging of the well and the
restoration of
the land surface disturbed by the plugging.
(E) Expenditures from the oil and gas well fund for the
purpose of
division (B)(2) of this
section may be made pursuant to
contracts entered into by the chief with
persons who agree to
furnish all of the materials, equipment, work, and labor
as
specified and provided in such a contract. The competitive
bidding
requirements of Chapter 153. of
the Revised Code do not
apply if
the chief
reasonably determines
that correction of the
applicable
health or safety risk
requires
immediate action. The
chief,
designated representatives
of the
chief, and agents or
employees
of persons contracting with the
chief
under this
division
may
enter upon any land, public or
private, for the
purpose of
performing the
work.
(F) Contracts entered into by the
chief under this section
are not subject to either of the
following:
(1) Chapter 4115. of the Revised Code;
(2) Section 153.54 of the
Revised Code, except that the
contractor shall obtain and provide to the chief as a bid
guaranty
a surety bond or letter of credit in an amount equal to
ten per
cent of the amount of the contract.
(G) The owner
of land on which a well is located who has
received notice under
division
(C)(1)(b)
of this section, in lieu
of plugging the well in accordance with
division (D)(2) of this
section, may cause ownership of the well to be transferred to an
owner who is lawfully doing business in this state and who has
met
the financial responsibility requirements established under
section 1509.07 of the Revised
Code, subject to the approval
of
the chief. The transfer of ownership also shall be subject
to the
landowner's filing the appropriate forms required under
this
chapter section 1509.31 of the Revised Code and providing to the
chief sufficient information
to
demonstrate the landowner's or
owner's right to produce a
formation or formations. That
information may include a deed, a
lease, or other documentation of
ownership or property
rights.
The chief shall approve or disapprove the transfer of
ownership of the well. If the chief approves the transfer, the
owner is responsible for operating the well in accordance with
this chapter and rules adopted under it, including, without
limitation, all of the following:
(1) Filing an application with the chief under section
1509.06 of the Revised
Code if the owner intends to
drill deeper
or produce a formation that is not listed in the
records of the
division for that well;
(2) Taking title to and possession of the equipment
appurtenant to the well that has been identified by the chief as
having been abandoned by the former owner;
(3) Complying with all applicable requirements that
are
necessary to drill deeper, plug the well, or plug back the
well.
(H) The chief shall issue an order that requires the owner of
a well to pay the actual documented costs of a corrective action
that is described in division (B)(2) of this section concerning
the well. The chief shall transmit the money so recovered to the
treasurer of state who shall deposit the money in the state
treasury to the credit of the oil and gas well fund.
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 fourteen days after the date upon
which the
surface drilling of a well is commenced completed to
total depth in an urbanized area and within two months after the
date upon which the drilling of a well is completed in all other
areas, the owner or the
owner's agent, in accordance with the
restoration
plan filed under
division (A)(10) of section 1509.06
of the Revised Code,
shall fill all the
pits for containing brine,
and 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
Unless the chief of the
division of mineral resources management approves a longer time
period, within three months after the date upon which the surface
drilling of a well
is commenced in an urbanized area and within
six months after the date upon which the surface drilling of a
well is commenced in all other areas, 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 fourteen-day or three-month restoration period.
(B) Within three months after a well that has produced oil or
gas is plugged in an urbanized area and within six months after a
well that has produced oil
or gas is plugged in all other areas,
or after the plugging of a dry hole, unless the chief approves a
longer time period, 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. 1509.10. (A) Any person drilling within the state
shall,
within thirty sixty days after the completion of the well
drilling operations to the proposed total depth or after a
determination that a well is a dry or lost hole, file with
the
division
of
mineral resources management all wireline electric
logs and an
accurate log
designating well completion record on a
form that is approved by
the chief of the division of mineral
resources management that
designates:
(A)(1) The purpose for which the well was drilled;
(B)(2) The character, depth, and thickness of geological
formations units encountered, including fresh water, coal seams,
mineral beds, associated fluids such as fresh water, brine, and
crude oil and, natural gas bearing formations, and sour gas, if
such seams, beds, or fluids are
known;
(C)(3) The dates on which drilling operations were commenced
and completed;
(4) The types of drilling tools used and the name of the
person that drilled the well;
(5) The length in feet of the various sizes of casing and
tubing used in drilling the well, the amount removed after
completion, the type and setting depth of each packer, and all
other data relating to mudding cementing in the annular space
behind such
casing or tubing, and data indicating completion as a
dry, gas, oil,
combination oil and gas, brine injection, or
artificial brine well or a stratigraphic test;
(D)(6) The number of perforations in the casing and the
intervals of the perforations;
(7) The elevation above mean sea level of the point from
which the depth measurements were made, stating also the height
of
the point above ground level at the well, the total depth of the
well, and the deepest geological unit that was penetrated in the
drilling of the well;
(8) If applicable, the type, volume, and concentration of
acid, and the date on which acid was used in acidizing the well;
(9) If applicable, the type and volume of fluid used to
stimulate the reservoir of the well, the reservoir breakdown
pressure, the method used for the containment of fluids recovered
from the fracturing of the well, the methods used for the
containment of fluids when pulled from the wellbore from swabbing
the well, the average pumping rate of the well, and the name of
the person that performed the well stimulation. In addition, the
owner shall include a copy of the log from the stimulation of the
well, a copy of the invoice for each of the procedures and methods
described in division (A)(9) of this section that were used on a
well, and a copy of the pumping pressure and rate graphs. However,
the owner may redact from the copy of each invoice that is
required
to be included under division (A)(9) of this section the
costs of
and charges for the procedures and methods described in
division
(A)(9) of this section that were used on a well.
(10) The name of the company that performed the logging of
the well and the types of wireline electric logs performed on the
well.
The log well completion record shall be submitted in
duplicate. The first copy
shall be retained as a permanent record
in the files of the
division, and the second copy shall be
transmitted by the chief
of the division of mineral resources
management to
the division of geological
survey.
Any (B)(1) Not later than sixty days after the completion of
the
drilling operations to the proposed total depth, the owner
shall
file all wireline electric log, or radioactivity log, or
other
geophysical
log, if made in connection with the well shall
be
filed logs with
the division of mineral resources management
and
the chief shall
transmit such logs electronically, if
available,
to
the division
of geological survey. Such logs may
be retained
by
the owner for a
period of not more than six
months, or such
additional time as may
be granted by the chief in
writing, after
the completion of the
well substantially to the
depth shown in
the application required
by section 1509.06 of the
Revised Code.
(2) If a well is not completed within sixty days after the
completion of drilling operations, the owner shall file with the
division a supplemental well completion record that includes all
of the information required under this section within sixty days
after the completion of the well.
(C) Upon request in writing by the chief of the division of
geological survey prior to the beginning of drilling of the well,
the person drilling the well shall make available a complete set
of cuttings accurately identified as to depth.
(D) The form of the log well completion record required by
this section shall be one
that has been approved by the chief of
the division of
mineral resources management and the chief of the
division of
geological survey. The
filing of a log as required by
this section fulfills the
requirement of filing a log with the
chief of the division of
geological survey in section 1505.04 of
the Revised Code.
Sec. 1509.11. The owner of any well producing or capable of
producing oil or
gas shall file with the chief of the division of
mineral
resources management, on or before the
first thirty-first
day
of
March, a statement of production of oil, gas, and brine
for
the
last preceding calendar year in such form as the chief may
prescribe.
An owner that has more than one hundred wells in this
state shall submit electronically the statement of production in a
format that is approved by the chief. The chief shall include on
the form, at the minimum, a
request for the submittal of the
information that a person who is
regulated under this chapter is
required to submit under the
"Emergency Planning and Community
Right-To-Know Act of 1986," 100
Stat. 1728, 42 U.S.C.A. 11001, and
regulations adopted under it,
and that the division does not
obtain through other reporting
mechanisms.
Sec. 1509.12. No owner of any well knowingly shall construct
a well, or permit defective
casing or tubing in such a well to
leak fluids or gas gases, that
may
cause damage to other permeable
strata, underground sources of drinking water, or the surface of
the land or that threatens the public health and safety. Upon
notice from the discovery that the casing or tubing in a well is
defective or that a well was not adequately constructed, the owner
of the well shall notify the
chief of the division of mineral
resources
management within twenty-four hours of the discovery,
such and the owner shall
immediately repair such the tubing or
casing,
correct the construction inadequacies, or plug and
abandon such the
well.
Unless written permission is granted by the chief, any well
that is or
becomes incapable of producing oil or gas in
commercial quantities
shall be plugged,
but no well shall be
required to be plugged under this section
that is being
used to
produce oil or gas for domestic
purposes, or
that is being
lawfully used for a purpose other than production of
oil or gas.
When the chief finds that a well should be plugged,
the chief
shall notify the owner to that effect by order in
writing and
shall
specify in such the order a reasonable time within
which to
comply.
No owner shall fail or refuse to plug a well
within the
time
specified in the order. Each day on which such a
well
remains
unplugged thereafter constitutes a separate offense.
Where the plugging method prescribed by rules adopted
pursuant to section 1509.15 of the Revised Code cannot be applied
or if applied would be ineffective in carrying out the protection
that the law is meant to give, the chief, by order, may designate
a
different method of plugging. The abandonment report shall show
the manner in which the well was plugged.
In case of oil or gas wells abandoned prior to September 1,
1951 1978, the board of county commissioners of the county in
which
such the wells are located may submit to the electors of the
county
the question of establishing a special fund, by special
general levy,
by general bond issue, or out of current funds,
which shall be approved by a
majority of the electors voting upon
such that question for the
purpose of plugging such the wells. The
fund
shall be administered
by the board and the plugging of oil
and gas
wells shall be under
the supervision of the chief, and
the board
shall let contracts for such that purpose, provided
that
such the fund
shall not be used for the purpose of plugging
oil and
gas wells
that were abandoned subsequent to September 1,
1951 1978.
Sec. 1509.13. (A) No person shall plug and abandon a well
without having a permit to do so issued by the chief of the
division of mineral resources management. The
permit shall be
issued by the chief
in accordance with this chapter, and the chief
may
establish by rule shall be valid for a period of time
twenty-four months from the date of issue during
which
permits
will be valid. Application by the owner for a permit
to
plug and
abandon shall be filed as many days in advance as will
be
necessary for a mineral resources
inspector or, if the well is
located in a coal bearing township, both a deputy mine inspector
and a
mineral
resources inspector to be
present at the
plugging.
The application shall be filed with the chief upon
a form
that the
chief prescribes
and shall contain the following information:
(A)(1) The name and address of the owner;
(B)(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
that agent.
(C)(3) The location of the well identified by section or lot
number, city, village, township, and county;
(D)(4) Designation of well by name and number;
(E)(5) The total depth of the well to be plugged;
(F)(6) The date and amount of last production from the well;
(G)(7) Other data that the chief may
require.
If oil or gas has been produced from the well, the
application shall be accompanied by a fee of two hundred fifty
dollars. If a
new dry well has been drilled in accordance with law
and the
permit is still valid, the permit holder may receive
approval to
plug the well from a mineral resources
inspector or,
if the well
is located in a coal bearing township, both a deputy
mine inspector
and a mineral
resources inspector so that
the well
can be
plugged and abandoned without undue delay. Unless waived by
a mineral resources inspector, the owner of a well or the owner's
authorized representative shall notify a mineral resources
inspector at least twenty-four hours prior to the commencement of
the plugging of a well. No well shall be plugged and
abandoned
without a mineral resources inspector
present unless permission
has been granted by the chief. The owner of the a well that has
produced oil or gas shall give
written notice at the same time to
the owner of the land upon
which the well is located, the owners
or agents of adjoining
land, adjoining well owners or agents, and,
if and to all lessors that receive gas from the well pursuant to a
lease agreement. If the well
penetrates or passes within one
hundred feet of
the excavations
and workings of a mine, the owner
of the well
shall give written notice to the owner or lessee of
that mine, of
the
well owner's intention to abandon the well and
of the time
when
the well owner will be prepared to commence
plugging it.
(B) An applicant may file a request with the chief for
expedited review of an
application
for a permit to plug and
abandon a well. The chief may
refuse
to accept a request for
expedited review if, in the chief's
judgment, acceptance of the
request will prevent the issuance, within
twenty-one days of
filing, of permits for which applications filed under
section
1509.06 of the Revised Code are pending. In
addition to a complete
application for a permit that meets the
requirements of this
section and the permit fee prescribed by
this section, if
applicable, a request shall be accompanied by a
nonrefundable
filing fee of two five hundred fifty dollars unless the
chief has
ordered the applicant to plug and abandon the well.
When a
request for expedited review is filed, the chief shall
immediately
begin to process the application and shall issue a
permit within
seven days of the filing of the request unless the
chief,
by
order, denies the application.
(C) This section does not apply to a well plugged or
abandoned
in compliance with section 1571.05 of the Revised
Code.
Sec. 1509.14. Any person who abandons a well, when written
permission has been granted by the chief of the division of
mineral resources
management to abandon and
plug
the well without
an inspector being present to supervise
the
plugging, shall make a
written report of the abandonment to
the chief. The
report
shall
be submitted not
later
than thirty days after the date of
abandonment and shall include all
of the
following:
(A) The date of abandonment;
(B) The name of the owner or operator of the well at the
time
of abandonment and the post-office address of the
owner or
operator;
(C) The location of the well as to township and county
and
the name of the owner of the surface upon which the
well is
drilled, with the address thereof;
(D) The date of the permit to drill;
(E) The date when drilled;
(F) The depth of the well;
(G) The depth of the top of the formation to which the
well
was drilled;
(H) The depth of each seam of coal drilled through, if known;
(I) A detailed report as to how the
well was plugged,
giving
in particular the manner in which the coal and various
formations
were plugged, and the date of the plugging of
the
well, including
the names of those who witnessed the
plugging of the well.
The report shall be signed by the owner or operator,
or the
agent of the owner or operator, who
abandons and plugs the well
and
verified by the oath
of the party so signing. For the purposes
of this section, the
mineral resources inspectors may take
acknowledgments
and administer
oaths to the parties signing the
report.
Sec. 1509.17. Any person who drills a well shall, before
drilling into the principal or major producing formation therein,
encase such well with good and sufficient wrought iron or steel
casing so as to exclude all surface, fresh, or salt water from
any
part of such well penetrating the oil or gas bearing sand or
rock
or fresh water strata. The method of placing such casing
shall be
approved by the chief of the division of
mineral resources
management
and shall be in accord with the most approved method
used in the
operation of such type of well. The chief may, in lieu
of the
casing method outlined in this section, accept adequate
mudding
methods with prepared clay in the annular space behind
such
casing in sufficient quantities to shut off all gas or oil
and
that will exclude all surface, fresh, or salt water from
any
part of such well penetrating the oil, gas, or mineral bearing
formation, or fresh water strata.
Written approval from the chief is required in each case.
In
the operation of a gas well, it is permissible, with the
written
consent of the chief, to withdraw all casing in such
well, leaving
only the tubing and the packer therein, provided
that such well is
filled with prepared clay from the top of such
packer to the
surface, as each succeeding string of casing in
such well is
withdrawn.
(A) A well shall be constructed in a manner that is approved
by the chief of the division of mineral resources management as
specified in the permit using
materials that comply with industry
standards for the type and
depth of the well and the anticipated
fluid pressures that are
associated with the well. In addition, a
well shall be constructed
using sufficient steel or conductor
casing in a manner that
supports unconsolidated sediments, that
protects and isolates all
underground sources of drinking water
as defined by the Safe
Drinking Water Act, and that provides a
base for a blowout
preventer or other well control equipment that
is necessary to
control formation pressures and fluids during the
drilling of the
well and other operations to complete the well.
Using steel
production casing with sufficient cement, an oil and
gas reservoir
shall be isolated during well stimulation and
during the
productive life of the well. In addition, sour gas
zones and gas
bearing zones that have sufficient pressure and
volume to
over-pressurize the surface production casing annulus
shall be
isolated using approved cementing, casing, and well
construction
practices. However, isolating an oil and gas
reservoir shall not
exclude open-hole completion. A well shall
not be perforated for
purposes of well stimulation in any zone
that is located around
casing that protects underground sources
of drinking water without
written authorization from the chief in
accordance with division (D) of this section. When
the well
penetrates
the excavations
of a mine, the casing shall
remain
intact as
provided in section
1509.18 of the Revised Code
and be
plugged
and abandoned in
accordance with section 1509.15 of
the
Revised
Code.
(B) The chief may adopt rules in accordance with Chapter 119.
of the Revised Code that are consistent with division (A) of this
section and that establish standards for constructing a
well, for
evaluating the quality of well construction materials,
and for
completing remedial cementing. In addition, the standards
established in the rules shall consider local geology and various
drilling conditions and shall require the use of reasonable
methods that are based on sound engineering principles.
(C) An owner or an owner's authorized representative shall
notify a mineral resources inspector each time that the owner or
the authorized representative notifies a person to perform the
cementing of the conductor casing, the surface casing, or the
production casing. In addition, not later than sixty days after
the completion of the cementing of the production casing, an owner
shall submit to the chief a copy of the cement tickets for each
cemented string of casing and a copy of all logs that were used to
evaluate the quality of the cementing.
(D) The chief shall grant an exemption from this section and
rules adopted under it for a well if the chief determines that
a
cement bond log confirms zonal isolation and there is a minimum
of five hundred feet between the uppermost perforation of the
casing and the lowest depth of an underground source of drinking
water.
Sec. 1509.18. Any person who drills a well within the
limits
of a mining operation shall give consideration for the
safety of
the personnel working in such the mine, and, if
possible, shall
locate
such the well so as to penetrate a pillar.
If a well is to be drilled within the limits of a mining
operation that may penetrate the excavation of a mine, the
hole
shall be reduced approximately fifteen feet above the roof of the
mine. If roof conditions at the mine warrant, the hole shall be
reduced in the rock formation immediately above such the mine, and
a
string of casing placed upon the shoulder so as to shut off all
water, then drilling shall be continued to a point approximately
thirty feet below the floor of the mine and another string of
casing set. Both strings of casing shall be approximately the
same
diameter as the diameter of the hole.
If no water is encountered between the bottom of the drive
pipe and the approximate casing shoulder above the roof of such
the
mine, in lieu of the casing method outlined above, it is
permissible to use the following casing method: the hole shall
be
drilled thirty feet below the floor of the mine and a string
of
casing shall be extended from the surface to a point thirty
feet
below the floor of the mine with a packer of sufficient size
attached to such the string of casing. Such The packer shall be
placed
so
that it will be below all water and will be located in
the
rock
formation immediately above such the mine and shall
prevent
water or
destructive matter from entering therein. Then
the
annular space
above such the packer between the casing and
well wall
shall be filled
with prepared clay a minimum distance
of fifty
feet.
If a well is drilled within the limits of a mining
operation
and does not penetrate the excavations of a mine, the
hole shall
be reduced thirty feet below the coal or mineral
that is being
mined and a string of casing placed at this point. The
annular
space behind such the casing shall be filled with neat cement
from
the
casing seat to a point not less than fifty feet above
such
the seam of
coal or mineral that is being mined. The
packer
method, outlined
in this section, is also permissible in this
type of well.
It is permissible to attach a release coupling or a right
and
left nipple to the string of casing that extends through the
mine,
but such the release coupling or right and left nipple shall be
placed
in such a manner that it is above the packer or at least
twenty
feet above the coal or mineral that is being mined.
In wells penetrating the excavation of a mine, the casing
shall be enclosed, if possible, with a column extending from the
floor to the roof of such the mine, built of brick or other
suitable
material, subject to the approval of the chief
of the
division of
mineral resources
management. If the chief finds the
method
prescribed in this section unsafe, inadequate, or not
suitable,
the chief shall require such the method to be altered in
such a
manner
that it will be safe.
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 a
miner's health or safety. Before issuing such an order, the chief
shall notify the owner in any manner that the chief determines
would provide reasonable notification of the chief's intent to
issue a suspension order. However, the chief may order the
immediate suspension of the drilling or reopening of a well in a
coal bearing township without prior notification if the chief has
made reasonable attempts to notify the owner and the attempts have
failed. If the chief orders the immediate suspension of such
drilling or reopening, the chief shall provide the owner notice of
the order as soon as practical.
Not later than five days after the issuance of an order to
immediately suspend the drilling or reopening of a well in a coal
bearing township, the chief shall provide the owner an opportunity
to be heard and to present evidence that the drilling or reopening
activities will not likely result in an imminent and substantial
threat to public health or safety or to a miner's health or
safety, as applicable. If the chief, after considering all
evidence presented by the owner, determines that the activities do
not present such a threat, the chief shall revoke the suspension
order.
Notwithstanding any other provision of this chapter, an owner
may appeal a suspension order issued under this section to the
reclamation commission in accordance with section 1513.13 of the
Revised Code.
Sec. 1509.19. An owner who elects to stimulate a well shall
stimulate the well in a manner that will not endanger underground
sources of drinking water. Not later than twenty-four hours before
commencing the stimulation of a well, the owner or the owner's
authorized representative shall notify a mineral resources
inspector. If during the stimulation of a well damage to the
production casing or cement occurs and results in the circulation
of fluids from the annulus of the surface production casing, the
owner shall immediately terminate the stimulation of the well and
notify the chief of the division of mineral resources management.
If the chief determines that the casing and the cement may be
remediated in a manner that isolates the oil and gas bearing zones
of the well, the chief may authorize the completion of the
stimulation of the well. If the chief determines that the
stimulation of a well resulted in irreparable damage to the well,
the chief shall order that the well be plugged and abandoned
within thirty days of the issuance of the order.
For purposes of determining the integrity of the remediation
of the casing or cement of a well that was damaged during the
stimulation of the well, the chief may require the owner of the
well to submit cement evaluation logs, temperature
surveys,
pressure tests, or a combination of such logs, surveys, and tests.
Sec. 1509.20. All owners, lessees, or their agents, drilling
for or producing
crude oil or natural gas, shall use every
reasonable precaution in accordance
with the most approved methods
of operation to stop and prevent waste of oil
or gas, or both. Any
well productive of natural gas in quantity sufficient to
justify
utilization shall be utilized or shut in within ten days after
completion.
The owner of any well producing both oil and gas may burn
such
gas in flares when it is necessary to protect the health and
safety of the public or when the gas is lawfully produced and
there is no economic
market at the well for the escaping gas.
Sec. 1509.21. No person shall, without first having
obtained
a permit from the chief of the division of
mineral resources
management,
conduct secondary or additional recovery operations,
including
any underground injection of fluids or carbon dioxide
for the secondary or tertiary
recovery of oil or natural gas or
for the storage of hydrocarbons
that are liquid at standard
temperature or pressure, unless a
rule of the chief expressly
authorizes such operations without a
permit. Such The permit shall
be
in addition to any permit required
by section 1509.05 of the
Revised Code. Secondary or additional
recovery operations shall be
conducted in accordance with rules
and orders of the chief and any
terms or conditions of the permit
authorizing such operations. In
addition, the chief may authorize tests to evaluate whether fluids
or carbon dioxide may be injected in a reservoir and to determine
the maximum allowable injection pressure. The tests shall be
conducted in accordance with methods prescribed in rules of the
chief or conditions of the permit. Rules adopted under this
section
shall include provisions regarding applications for and
the
issuance of permits; the terms and conditions of permits;
entry
to conduct inspections and to examine records to ascertain
compliance with this section and rules, orders, and terms and
conditions of permits adopted or issued thereunder; the provision
and
maintenance of information through monitoring, recordkeeping,
and
reporting; and other provisions in furtherance of the goals of
this section and the Safe Drinking Water Act. To implement
the
goals of the Safe Drinking Water Act, the chief shall not issue a
permit
for the underground injection of fluids for the secondary
or
tertiary recovery of oil or natural gas or for the storage of
hydrocarbons that are liquid at standard temperature and
pressure,
unless the chief concludes that the applicant has
demonstrated
that the injection will not result in the presence
of any
contaminant in underground water that supplies or can be
reasonably expected to supply any public water system, such that
the presence of any such contaminant may result in the system's
not complying with any national primary drinking water regulation
or may otherwise adversely affect the health of persons. Rules,
orders, and terms or conditions of permits adopted or issued under
this
section shall be construed to be no more stringent than
required for compliance with the Safe Drinking Water Act, unless
essential to ensure that underground sources of drinking water
will not be endangered.
Sec. 1509.22. (A) Except when acting in accordance with
section 1509.226 of the Revised Code, no person shall place or
cause to be placed brine, crude oil, natural gas, or other fluids
associated with the exploration or development of oil and gas
resources in surface or ground water or in or on
the land in such
quantities or in such manner as actually causes
or could
reasonably be anticipated to cause either of the following:
(1) Water used for consumption by humans or domestic
animals
to exceed the standards of the Safe Drinking Water
Act;
(2) Damage or injury to public health or safety or the
environment.
(B) No person shall store or dispose of brine in violation
of
a plan approved under division (A) of section 1509.222 or section
1509.226 of
the Revised Code, in violation of a
resolution
submitted under section 1509.226 of the Revised Code,
or in
violation of rules or orders applicable to those
plans or
resolutions.
(C) The chief of the division of mineral resources
management
shall adopt
rules and issue orders regarding storage and disposal
of brine
and other waste substances; however, the storage and
disposal of
brine and other waste substances and the chief's rules
relating to storage and
disposal are subject to all of the
following standards:
(1) Brine from any well except an exempt Mississippian
well
shall be disposed of only by injection into an
underground
formation, including annular disposal if approved by rule of the
chief, which injection shall be subject to division (D) of this
section; by surface application in accordance with section
1509.226 of the Revised Code; in association with a method of
enhanced recovery as provided in section 1509.21 of the Revised
Code; or by other methods approved by the chief for testing or
implementing a new technology or method of disposal. Brine from
exempt Mississippian wells shall not be discharged directly into
the waters of the state.
(2) Muds, cuttings, and other waste substances shall not
be
disposed of in violation of any rule;.
(3) Pits may or steel tanks shall be used as authorized by
the chief for containing brine and other waste
substances
resulting from, obtained from, or produced in
connection with
drilling, fracturing well stimulation, reworking, reconditioning,
plugging back,
or plugging operations, but the. The pits and steel
tanks shall be constructed
and
maintained to prevent the escape of
brine and other waste
substances. A
(4) A
dike or pit may be used for spill prevention and
control. A dike
or pit so used shall be constructed and maintained
to prevent the
escape of brine and crude oil, and the reservoir
within such a dike or pit
shall be kept reasonably free of brine,
crude oil, and other waste
substances.
(4)(5) Earthen impoundments constructed pursuant to the
division's specifications may be used for the temporary storage
of
brine and other waste substances in association with a
saltwater
injection well, an enhanced recovery project, or a
solution mining
project; fluids used in the stimulation of a well.
(5)(6) No pit, earthen impoundment, or dike shall be used for
the temporary storage of brine or other substances except in
accordance with
divisions (C)(3) and (4) to (5) of this section;.
(6)(7) No pit or dike shall be used for the ultimate disposal
of brine or other liquid waste substances.
(D) No person, without first having obtained a
permit from
the chief, shall inject brine or other waste substances
resulting
from, obtained from, or produced in connection with
oil or
gas
drilling, exploration, or production into an underground
formation
unless a rule of the chief expressly authorizes the
injection
without a permit. The permit shall be in addition to
any permit
required by section 1509.05 of the Revised Code, and
the permit
application shall be accompanied by a permit fee of
one hundred
thousand dollars. The chief shall adopt rules in accordance
with
Chapter 119. of the Revised Code regarding the injection
into
wells of brine and other waste substances resulting from,
obtained
from, or produced in connection with oil or gas drilling,
exploration, or production. The rules may authorize tests to
evaluate whether fluids or carbon dioxide may be injected in a
reservoir and to determine the maximum allowable injection
pressure, which shall be conducted in accordance with methods
prescribed in the rules or in accordance with conditions of the
permit. In addition, the rules shall include provisions
regarding
applications for and issuance of the permits required
by this
division; entry to conduct inspections and to examine and
copy
records to ascertain compliance with this division and
rules,
orders, and terms and conditions of permits adopted or issued
under it; the provision and maintenance of
information through
monitoring, recordkeeping, and reporting; and other provisions in
furtherance of the goals of this section and the Safe Drinking
Water Act. To implement the goals of the Safe Drinking Water
Act,
the chief
shall not issue a permit for the injection of brine or
other
waste substances resulting from, obtained from, or produced
in
connection
with oil or gas drilling, exploration, or production
unless the
chief concludes that the applicant has demonstrated
that the
injection will not result in the presence of any
contaminant in
ground water that supplies or can reasonably be
expected to
supply any public water system, such that the presence
of the
contaminant may result in the system's not complying with
any
national primary drinking water regulation or may otherwise
adversely affect the health of persons. This division and rules,
orders, and terms and conditions of permits adopted or issued
under it shall be construed to be no more stringent
than required
for
compliance with the Safe Drinking Water Act unless essential
to
ensure that underground sources of drinking water will not be
endangered.
(E) The owner holding a permit, or an assignee or
transferee
who has assumed the obligations and liabilities
imposed by this
chapter and
any rules adopted or orders issued under it
pursuant
to section 1509.31 of the
Revised Code, and the operator of a well
shall be liable for a
violation of this section or any rules
adopted or orders or terms
or conditions of a permit issued under
it.
(F) An owner shall replace the water supply of the holder
of
an interest in real property who obtains all or part of
the
holder's supply of water for domestic, agricultural,
industrial,
or other
legitimate use from an underground or surface source
where the
supply has been substantially disrupted by
contamination,
diminution, or interruption proximately resulting
from the
owner's oil or gas operation, or the owner may elect to
compensate the holder of the interest in real property for the
difference between the fair market value of the interest before
the damage occurred to the water supply and the fair market value
after the damage occurred if the cost of replacing the water
supply exceeds this difference in fair market values. However,
during the pendency of any order issued under this division, the
owner shall obtain for the holder or shall reimburse the holder
for the reasonable cost of obtaining a water supply from the time
of the contamination, diminution, or interruption by the
operation
until the owner has complied with an order of the chief
for
compliance with this division or such an order has been revoked
or
otherwise becomes not effective. If the owner elects to pay
the
difference in fair market values, but the owner and the
holder
have not agreed on the difference within thirty days after
the
chief issues an order for compliance with this division,
within
ten days after the expiration of that thirty-day
period,
the owner
and the chief each shall appoint an appraiser to
determine the
difference in fair market values, except that the
holder of the
interest in real property may elect to appoint and
compensate the
holder's own appraiser, in which case the
chief shall not
appoint
an appraiser. The two appraisers appointed shall appoint
a third
appraiser, and within thirty days after the appointment
of the
third appraiser, the three appraisers shall hold a hearing
to
determine the difference in fair market values. Within ten
days
after the hearing, the appraisers shall make their
determination
by majority vote and issue their final
determination of the
difference in fair market values. The chief
shall accept a
determination of the difference in fair market
values made by
agreement of the owner and holder or by appraisers
under this
division and shall make and dissolve orders
accordingly. This
division does not affect in any way the right
of any person to
enforce or protect, under applicable law, the
person's interest in
water resources affected by an oil or gas operation.
(G) In any action brought by the state for a violation of
division (A) of this section involving any well at which annular
disposal is used, there shall be a rebuttable presumption
available to the state that the annular disposal caused the
violation if the well is located within a one-quarter-mile radius
of the site of the violation.
Sec. 1509.221. (A) No person, without first having obtained
a
permit from the chief of the division of mineral
resources
management, shall drill
a well or inject a substance into a well
for the exploration for
or extraction of minerals or energy, other
than oil or natural
gas, including, but not limited to, the mining
of sulfur by the
Frasch process, the solution mining of minerals,
the in situ
combustion of fossil fuel, or the recovery of
geothermal energy
to produce electric power, unless a rule of the
chief expressly
authorizes the activity without a permit. The
permit shall be in
addition to any permit required by section
1509.05 of the Revised
Code. The chief shall adopt rules in
accordance with Chapter
119. of the Revised Code governing the
issuance of permits under
this section. The rules shall include
provisions regarding the
matters the applicant for a permit shall
demonstrate to establish
eligibility for a permit; the form and
content of applications
for permits; the terms and conditions of
permits; entry to
conduct inspections and to examine and copy
records to ascertain
compliance with this section and rules,
orders, and terms and
conditions of permits adopted or issued
thereunder; provision and
maintenance of information through
monitoring, recordkeeping, and
reporting; and other provisions in
furtherance of the goals of
this section and the Safe Drinking
Water Act. To implement the goals of the
Safe Drinking Water Act,
the chief shall not issue a permit under
this section, unless the
chief concludes that the applicant
has
demonstrated that the
drilling, injection of a substance, and
extraction of minerals or
energy will not result in the presence
of any contaminant in
underground water that supplies or can
reasonably be expected to
supply any public water system, such
that the presence of the
contaminant may result in the system's
not complying with any
national primary drinking water regulation
or may otherwise
adversely affect the health of persons. The
chief may issue,
without a prior adjudication hearing, orders
requiring compliance
with this section and rules, orders, and
terms and conditions of
permits adopted or issued thereunder.
This
section and rules,
orders, and terms and conditions of permits adopted
or
issued
thereunder shall be construed to be no more stringent than
required for compliance with the Safe Drinking Water Act, unless
essential to ensure that underground sources of drinking water
will not be endangered.
(B) In order to provide money to the division of mineral
resources management for the administration of this section, there
is levied on the owner of an injection well the following fees:
(1) Five cents per barrel of each substance that is delivered
to a well to be injected in the well when the substance is
produced within the division of mineral resources management
regulatory district in which the well is located or within an
adjoining mineral resources management regulatory district;
(2) Twenty cents per barrel of each substance that is
delivered to a well to be injected in the well when the substance
is not produced within the division of mineral resources
management regulatory district in which the well is located or
within an adjoining mineral resources management regulatory
district.
The owner of an injection well who is issued a permit under
this section shall
collect the fee levied by this division on
behalf of the
division
of mineral resources management and
forward the fee to
the
division. The chief shall transmit all
money received under
division (B) of this section to the
treasurer of state who shall
deposit the money in the state
treasury to the credit of the
oil
and gas well fund created in
section 1509.02 of the Revised Code.
The owner of an injection
well who collects the fee levied by this division may retain
up
to three per cent of the amount that is collected.
The chief shall adopt rules in accordance with Chapter 119.
of the Revised Code establishing requirements and procedures for
collection of the fee levied by this division.
(C) In an action under section 1509.04 or 1509.33 of the
Revised Code to enforce this section, the court shall grant
preliminary and permanent injunctive relief and impose a civil
penalty upon the showing that the person against whom the action
is brought has violated, is violating, or will violate this
section or rules, orders, or terms or conditions of permits
adopted or
issued thereunder. The court shall not require, prior
to
granting such preliminary and permanent injunctive relief or
imposing a civil penalty, proof that the violation was, is, or
will be the result of intentional conduct or negligence. In any
such action, any person may intervene as a plaintiff upon the
demonstration that the person has an interest that is or may be
adversely affected by the activity for which injunctive relief or
a civil penalty is sought.
Sec. 1509.222. (A)(1) Except as provided in section
1509.226
of the Revised Code, no person shall transport brine by
vehicle in
this state unless the business entity that employs the
person
first registers with and obtains a registration
certificate and
identification number from the chief of the
division of oil and
gas mineral resources management.
(2) No more than one registration certificate shall be
required of any business entity. Registration certificates
issued
under this section are not transferable. An
applicant
shall file
an application with the chief, containing such
information in such
form as the chief prescribes, but including a
plan for disposal
that provides for compliance with the
requirements of this chapter
and rules of the chief pertaining to
the transportation of brine
by vehicle and the disposal of brine
so transported and that lists
all disposal sites that the
applicant intends to use, the bond
required by section 1509.225
of the Revised Code, and a
certificate issued by an insurance
company authorized to do
business in this state certifying that
the applicant has in force
a liability insurance policy in an
amount not less than three
hundred thousand dollars bodily injury
coverage and three hundred
thousand dollars property damage
coverage to pay damages for
injury to persons or property caused
by the collecting, handling,
transportation, or disposal of
brine. The policy shall be
maintained in effect during the term
of the registration
certificate. The policy or policies
providing the coverage shall
require the insurance company
to
give notice to the chief if the
policy or policies lapse for any
reason. Upon such termination of
the policy, the chief may
suspend the registration certificate
until proper insurance
coverage is obtained. Each application for
a registration
certificate shall be accompanied by a nonrefundable
fee of five
hundred dollars.
(3) If a business entity that has been issued a registration
certificate under this section changes its name due to a business
reorganization or merger, the business entity shall revise the
bond or certificates of deposit required by section 1509.225 of
the Revised Code and obtain a new certificate from an insurance
company in accordance with division (A)(2) of this section to
reflect the change in the name of the business entity.
(B) The chief shall issue an order denying an application
for
a registration certificate if the chief finds that either of the
following applies:
(1) The applicant, at the time of applying for the
registration certificate, has been found liable by a final
nonappealable order of a court of competent jurisdiction for
damage to streets, roads, highways, bridges, culverts, or
drainways pursuant to section 4513.34 or 5577.12 of the Revised
Code until the applicant provides the chief with evidence of
compliance with the order;.
(2) The applicant's plan for disposal does not provide for
compliance with the requirements of this chapter and rules of the
chief pertaining to the transportation of brine by vehicle and
the
disposal of brine so transported.
(C) No applicant shall attempt to circumvent division (B)
of
this section by applying for a registration certificate under
a
different name or business organization name, by transferring
responsibility to another person or entity, or by any similar
act.
(D) A registered transporter shall apply to revise a
disposal
plan under procedures that the chief shall prescribe by
rule.
However, at a minimum, an application for a revision shall
list
all sources and disposal sites of brine currently
transported. The
chief shall deny any application for a revision of
a plan under
this division if the chief finds that the proposed
revised plan
does not provide for compliance with the
requirements of this
chapter and rules of the chief pertaining to
the transportation of
brine by vehicle and the disposal of brine
so transported.
Approvals and denials of revisions shall be by
order of the chief.
(E) The chief may adopt rules, issue orders, and attach
terms
and conditions to registration certificates as may be
necessary to
administer, implement, and enforce sections 1509.222
to 1509.226
of the Revised Code for protection of public health
or safety or
conservation of natural resources.
Sec. 1509.225. (A) Before being issued a registration
certificate under section 1509.222 of the Revised Code, an
applicant shall execute and file with the division of
mineral
resources management
a surety bond for fifteen thousand dollars to
provide
compensation for damage and injury resulting from
transporters'
violations of sections 1509.22, 1509.222, and
1509.223 of the
Revised Code, all rules and orders of the chief of
the division
of mineral resource management relating thereto, and
all terms and conditions of
the registration certificate imposed
thereunder. The applicant
may deposit with the chief, in lieu of a
surety bond, cash in an
amount equal to the surety bond as
prescribed in this section, or
negotiable certificates of deposit
issued by any bank organized
or transacting business in this
state, or certificates of deposit
issued by any building and loan
association as defined in section
1151.01 of the Revised Code,
having a cash value equal to or
greater than the amount of the
surety bond as prescribed in this
section. Cash or certificates of
deposit shall be deposited upon
the same terms as those upon which
surety bonds may be deposited.
If certificates of deposit are
deposited with the chief in lieu
of a surety bond, the chief shall
require the bank or
building and loan
association that issued any
such certificate to pledge securities
of a cash value equal to the
amount of the certificate that is in
excess of the amount insured
by any of the agencies and
instrumentalities created under the
"Federal Deposit Insurance
Act," 64 Stat. 873 (1950), 12 U.S.C.
1811, as amended, and regulations adopted
under it, including at
least the federal deposit insurance corporation, bank
insurance
fund, and savings association insurance fund.
Such securities shall be security for the repayment of the
certificate of deposit. Immediately upon a deposit of cash or
certificates with the chief, the chief shall deliver it to
the
treasurer
of state who shall hold it in trust for the purposes for
which it has been deposited.
(B) The surety bond provided for in this section shall be
executed by a surety company authorized to do business in this
state. The chief shall not approve any bond until it is
personally
signed and acknowledged by both principal and surety,
or as to
either by an attorney in fact, with a certified
copy of the power
of attorney attached thereto. The chief shall not
approve such the
bond unless there is attached a certificate of the
superintendent
of insurance that the company is authorized to
transact a fidelity
and surety business in this state. All bonds
shall be given in a
form to be prescribed by the chief.
(C) If a registered transporter is found liable for a
violation of section 1509.22, 1509.222, or 1509.223 of the
Revised
Code or a rule, order, or term or condition of a
certificate
involving, in any case, damage or injury to persons
or property,
or both, the court may order the forfeiture of any
portion of the
bond, cash, or other securities required by this
section in full
or partial payment of damages to the person to
whom the damages
are due. The treasurer of state and the chief
shall deliver the
bond or any cash or other securities deposited
in lieu of bond, as
specified in the court's order, to the person
to whom the damages
are due; however, execution against the bond,
cash, or other
securities, if necessary, is the responsibility of
the person to
whom the damages are due. The chief shall not
release the bond,
cash, or securities required by this section
except by court order
or until two years after the date on which
a the registration is
terminated.
Sec. 1509.226. (A) If a board of county commissioners, a
board of township trustees, or the legislative authority of a
municipal corporation wishes to permit the surface application of
brine to roads, streets, highways, and other similar land
surfaces
it owns or has the right to control for control of dust
or ice, it
may adopt a resolution permitting such application as
provided in
this section. If a board or legislative authority
does not adopt
such a resolution, then no such surface
application of brine is
permitted on such roads, streets,
highways, and other similar
surfaces. If a board or legislative
authority votes on a proposed
resolution to permit such surface
application of brine, but the
resolution fails to receive the
affirmative vote of a majority of
the board or legislative
authority, the board or legislative
authority shall not adopt
such a resolution for one year following
the date on which the
vote was taken. A board or legislative
authority shall hold at
least one public hearing on any proposal
to permit surface
application of brine under this division and may
hold additional
hearings. The board or legislative authority shall
publish
notice of the time and place of each such public hearing
in a
newspaper of general circulation in the political subdivision
at
least five days before the day on which the hearing is to be
held.
(B) If a board or legislative authority adopts a
resolution
permitting the surface application of brine to roads,
streets,
highways, and other similar land surfaces under division
(A) of
this section, the board or legislative authority shall,
within
thirty days after the adoption of the resolution, prepare
and
submit to the chief of the division of mineral
resources
management a copy of
the resolution. Any department, agency, or
instrumentality of
this state or the United States that wishes to
permit the surface
application of brine to roads, streets,
highways, and other
similar land surfaces it owns or has a right
to control shall
prepare and submit guidelines for such
application, but need not
adopt a resolution under division (A) of
this section permitting
such surface application.
All resolutions and guidelines shall be subject to the
following standards:
(1) Brine shall not be applied:
(a) To a water-saturated surface;
(b) Directly to vegetation near or adjacent to surfaces
being
treated;
(c) Within twelve feet of structures crossing bodies of
water
or crossing drainage ditches;
(d) Between sundown and sunrise, except for ice control.
(2) The discharge of brine through the spreader bar shall
stop when the application stops.
(3) The applicator vehicle shall be moving at least five
miles per hour at all times while the brine is being applied.
(4) The maximum spreader bar nozzle opening shall be
three-quarters of an inch in diameter.
(5) The maximum uniform application rate of brine shall be
three thousand gallons per mile on a twelve-foot-wide road or
three gallons per sixty square feet on unpaved lots.
(6) The applicator vehicle discharge valve shall be closed
between the brine collection point and the specific surfaces that
have been approved for brine application.
(7) Any valves that provide for tank draining other than
through the spreader bar shall be closed during the brine
application and transport.
(8) The angle of discharge from the applicator vehicle
spreader bar shall not be greater than sixty degrees from the
perpendicular to the unpaved surface.
(9) Only the last twenty-five per cent of an applicator
vehicle's contents shall be allowed to have a pressure greater
than atmospheric pressure; therefore, the first seventy-five per
cent of the applicator vehicle's contents shall be discharged
under atmospheric pressure.
(10) Only brine that is produced from a well shall be allowed
to be
spread on a road. Fluids from the drilling of a well,
flowback
from the stimulation of a well, and other fluids used to
treat a
well shall not be spread on a road.
If a resolution or guidelines contain only the standards
listed in division (B)(1) to (9)(10) of this section, without
addition or qualification, the resolution or
guidelines shall be
deemed effective when submitted to the chief
without further
action by the chief. All other resolutions and
guidelines shall
comply with and be no less stringent than this
chapter, rules
concerning surface application that the chief
shall adopt under
division (C) of section 1509.22 of the Revised
Code, and other
rules of the chief. Within fifteen days after
receiving such other
resolutions and guidelines, the chief shall
review them for
compliance with the law and rules and disapprove
them if they do
not comply.
The board, legislative authority, or department, agency, or
instrumentality may revise and resubmit any resolutions or
guidelines that the chief disapproves after each disapproval, and
the chief shall again review and approve or disapprove them
within
fifteen days after receiving them. The board, legislative
authority, or department, agency, or instrumentality may amend
any
resolutions or guidelines previously approved by the chief
and
submit them, as amended, to the chief. The chief shall
receive,
review, and approve or disapprove the amended
resolutions or
guidelines on the same basis and in the same time
as original
resolutions or guidelines. The board, legislative
authority, or
department, agency, or instrumentality shall not
implement amended
resolutions or guidelines until they are
approved by the chief
under this division.
(C) Any person, other than a political subdivision
required
to adopt a resolution under division (A) of this section
or a
department, agency, or instrumentality of this state or the
United
States, who owns or has a legal right or obligation to
maintain a
road, street, highway, or other similar land surface
may file with
the board of county commissioners a written plan
for the
application of brine to the road, street, highway, or
other
surface. The board need not approve any such plans, but if
it
approves a plan, the plan shall comply with this chapter,
rules
adopted thereunder, and the board's resolutions, if any.
Disapproved plans may be revised and resubmitted for the board's
approval. Approved plans may also be revised and submitted to
the
board. A plan or revised plan shall do all of the following:
(1) Identify the sources of brine to be used under the
plan;
(2) Identify by name, address, and registration
certificate,
if applicable, any transporters of the brine;
(3) Specifically identify the places to which the brine
will
be applied;
(4) Specifically describe the method, rate, and frequency
of
application.
(D) The board may attach terms and conditions to approval
of
a plan, or revised plan, and may revoke approval for any
violation
of this chapter, rules adopted thereunder, resolutions
adopted by
the board, or terms or conditions attached by the
board. The board
shall conduct at least one public hearing
before approving a plan
or revised plan, publishing notice of the
time and place of each
such public hearing in a newspaper of
general circulation in the
county at least five days before the
day on which the hearing is
to be held. The board shall record
the filings of all plans and
revised plans in its journal. The
board shall approve, disapprove,
or revoke approval of a plan or
revised plan by the adoption of a
resolution. Upon approval of a
plan or revised plan, the board
shall send a copy of the plan to
the chief. Upon revoking approval
of a plan or revised plan, the
board shall notify the chief of the
revocation.
(1) Apply brine to a water-saturated surface;
(2) Apply brine directly to vegetation adjacent to the
surface of roads, streets, highways, and other surfaces to which
brine may be applied.
(F) Each political subdivision that adopts a resolution
under
divisions (A) and (B) of this section, each department,
agency, or
instrumentality of this state or the United States
that submits
guidelines under division (B) of this section, and
each person who
files a plan under divisions (C) and (D) of this
section shall, on
or before the fifteenth day of April of each
year, file a report
with the chief concerning brine applied
within the person's or
governmental
entity's jurisdiction, including the quantities
transported and the
sources and application points during the last
preceding calendar year and
such other information in such form as
the chief requires.
(G) Any political subdivision or department, agency, or
instrumentality of this state or the United States that applies
brine under this section may do so with its own personnel,
vehicles, and equipment without registration under or compliance
with section 1509.222 or 1509.223 of the Revised Code and without
the necessity for filing the surety bond or other security
required by section 1509.225 of the Revised Code. However, each
such entity shall legibly identify vehicles used to apply brine
with reflective paint in letters no less than four inches in
height, indicating the word "brine" and that the vehicle is a
vehicle of the political subdivision, department, agency, or
instrumentality. Except as stated in this division, such
entities
shall transport brine in accordance with sections
1509.22 to
1509.226 of the Revised Code.
(H) A surface application plan filed for approval under
division (C) of this section shall be accompanied by a
nonrefundable fee of fifty dollars, which shall be credited to
the
general fund of the county. An approved plan is valid for
one year
from the date of its approval unless it is revoked
before that
time. An approved revised plan is valid for the
remainder of the
term of the plan it supersedes unless it is
revoked before that
time. Any person who has filed such a plan
or revised plan and had
it approved may renew it by refiling it
in accordance with
divisions (C) and (D) of this section within
thirty days before
any anniversary of the date on which the
original plan was
approved. The board shall notify the chief of
renewals and
nonrenewals of plans. Even if a renewed plan is
approved under
those divisions, the plan is not effective until
notice is
received by the chief, and until notice is received,
the chief
shall enforce this chapter and rules adopted thereunder
with
regard to the affected roads, streets, highways, and other
similar
land surfaces as if the plan had not been renewed.
(I) A resolution adopted under division (A) of this
section
by a board or legislative authority shall be effective
for one
year following the date of its adoption and from month to
month
thereafter until the board or legislative authority, by
resolution, terminates the authority granted in the original
resolution. The termination shall be effective not less than
seven
days after enactment of the resolution, and a copy of the
resolution shall be sent to the chief.
Sec. 1509.23.
(A) Rules of the chief of the division of
mineral resources management may specify
practices to be followed
in the drilling and treatment of wells and, production of oil and
gas, and plugging of wells for
protection of public health or
safety or to prevent damage to
natural
resources, including
specification of
the following:
(2) Minimum
distances that wells
and other excavations,
structures, and
equipment shall be located from water
wells,
streets, roads,
highways,
rivers, lakes, streams, ponds, other
bodies of water, railroad tracks, public or private recreational
areas, zoning districts, and buildings or other structures;
(3) Other
methods of
operation;
(4) Procedures, methods, and equipment and other
requirements
for equipment to prevent and contain discharges of
oil and brine
from oil
production facilities and oil drilling and workover
facilities consistent with
and equivalent in scope, content, and
coverage to section 311(j)(1)(c) of the
"Federal Water Pollution
Control Act Amendments of 1972," 86 Stat. 886, 33
U.S.C.A. 1251,
as amended, and regulations adopted under it. In addition, the
rules may specify procedures, methods, and equipment and other
requirements for equipment to prevent and contain surface and
subsurface discharges of fluids, condensates, and gases.
(B) The chief, in consultation with the emergency response
commission created in section 3750.02 of the Revised Code, shall
adopt rules in accordance with Chapter 119. of the Revised Code
that specify the information that shall be included in an
electronic database that the chief shall create and host. The
information shall be that which the chief considers to be
appropriate for the purpose of responding to emergency situations
that pose a threat to public health or safety or the environment.
At the minimum, the information shall include that which a person
who is regulated under this chapter is required to submit under
the "Emergency Planning and Community Right-To-Know Act of 1986,"
100 Stat. 1728, 42 U.S.C.A. 11001, and regulations adopted under
it.
In addition, the rules shall specify whether and to what
extent the database and the information that it contains will be
made accessible to the public. The rules shall ensure that the
database will be made available via the internet or a system of
computer disks to the emergency response commission and to every
local emergency planning committee and fire department in this
state.
Sec. 1509.27. If a tract of land is of insufficient size
or
shape to meet the requirements for drilling a well thereon as
provided in section 1509.24 or 1509.25 of the Revised Code,
whichever is applicable, and the owner of the tract who also is
the owner of the mineral interest has been unable to form a
drilling unit under agreement as provided in section 1509.26 of
the
Revised Code, on a just and equitable basis, the such an owner
of such
tract may make application to the division of mineral
resources management for a mandatory pooling order.
Such The application shall include such data and information
as
shall be reasonably required by the chief of the division of
mineral
resources management and shall be accompanied by an
application for a permit as
required by section 1509.05 of the
Revised Code. The chief shall
notify all owners of land within the
area proposed to be included
within the order drilling unit of the
filing of such the application and of their
right to a hearing if
requested. After the hearing or after the
expiration of thirty
days from the date notice of application was
mailed to such
owners, the chief, if satisfied that the
application is proper in
form and that mandatory pooling is
necessary to protect
correlative rights or and to provide effective
development, use,
or and conservation of oil and gas, shall issue a
drilling permit
and a mandatory pooling order complying with the
requirements for
drilling a well as provided in section 1509.24
or 1509.25 of the
Revised Code, whichever is applicable, which. The mandatory
pooling order
shall:
(A) Designate the boundaries of the drilling unit within
which the well shall be drilled;
(B) Designate the proposed drilling production site;
(C) Describe each separately owned tract or part thereof
pooled by the order;
(D) Allocate on a surface acreage basis a pro rata portion
of
the production to the owner of each tract; pooled by the order.
The pro rata portion shall be in the same proportion that the
percentage of the owner's acreage is to the state minimum acreage
requirements established in rules adopted under this chapter for a
drilling unit unless the applicant demonstrates to the chief using
geological evidence that the geologic structure containing the oil
or gas is larger than the minimum acreage requirement in which
case the pro rata portion shall be in the same proportion that the
percentage of the owner's acreage is to the geologic structure.
(E) Specify the basis upon which each owner of a tract pooled
by the order shall share
all reasonable costs and expenses of
drilling and producing if the owner elects to participate in the
drilling and operation of the well;
(F) Designate the person to whom the permit shall be
issued.
A person shall not submit more than five applications for
mandatory pooling orders per year under this section unless
otherwise approved by the chief.
No surface operations or disturbances to the surface of the
land shall occur on a tract pooled by an order without the written
consent of or a written agreement with the owner of the tract that
approves the operations or disturbances. In addition, the chief
shall adopt rules in accordance with Chapter 119. of the Revised
Code that establish setback requirements for surface facilities of
a well that are located near property that is subject to a
mandatory pooling order. Those rules shall not conflict with
spacing requirements for the surface facilities of a well and
shall not prevent the development of the drilling unit.
If an owner of a tract pooled by the order does not elect to
participate in the risk and
cost of the drilling and operation, or
operation, of a well, the
owner may elect to shall be designated
as a nonparticipating owner in the drilling and
operation, or
operation, of the well, on a limited or carried
basis upon and is
subject to terms and conditions determined by the chief to be
just
and reasonable. In addition, if an owner is designated as a
nonparticipating owner, the owner is not liable for actions or
conditions associated with the drilling or operation of the well.
If one or more of the participating owners
bear applicant bears
the costs of drilling, equipping, or and operating a well for
the
benefit of a nonparticipating owner, as provided for in the
pooling order, then such participating owner or owners the
applicant shall be
entitled to the share of production from the
drilling unit
accruing to the interest of such that
nonparticipating
owner,
exclusive of the nonparticipating owner's
proportionate
share of the royalty interest if the fee holder has
leased
the fee
holder's land to others, otherwise, one-eighth of
the fee holder's
share of the
production, until there has been
received the share
of costs
charged to such that nonparticipating
owner plus such
additional
percentage of the share of costs as
the chief shall
determine.
The total amount receivable hereunder
shall in no event
exceed
double two hundred per cent of the share
of costs charged
to such that nonparticipating owner. After
receipt of that share of
costs by such an applicant, a
nonparticipating owner shall receive
a proportionate share of the
working interest in the well in
addition to a proportionate share
of the royalty
interest, if any.
If there is a dispute as to costs of drilling, equipping,
or
operating a well, the chief shall determine such those costs.
In instances where a well is completed prior to the pooling
of interests in a drilling unit under this section, the sharing
of
production and adjustment of the original costs of drilling,
equipping, and completing the well shall be from the effective
date of the mandatory pooling order.
From and after the date of a pooling order, all operation,
including the commencement of drilling or the operating of or
production from a well upon any tract or portion of the drilling
unit, shall be deemed for all purposes the conduct of such
operations upon and production from any lease or contract for
lands any portion of which is included in the drilling unit.
Sec. 1509.31. (A) 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 and shall
be accompanied by a nonrefundable fee of one hundred dollars for
each well. 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.
(B) When the entire interest of a well is proposed to be
assigned
or otherwise transferred to the landowner for use as an
exempt
domestic well, the owner who has been issued a permit
under this
chapter for the well shall submit to the chief an
application for
the assignment or transfer that contains all
documents that the
chief requires and a nonrefundable fee of one
hundred dollars. The
application for such an assignment or
transfer shall be prescribed
and provided by the chief. The chief
may approve the
application
if the application is accompanied by
a release of
all of the oil
and gas leases that are included in
the applicable formation of
the
drilling unit, the release is in
a form such that the well
ownership merges with the fee simple
interest of the surface
tract, and the release is in a form that
may be recorded. However,
if the owner of the well does not
release the oil and gas leases
associated with the well that is
proposed to be assigned or
otherwise transferred or if the fee
simple tract that results from
the merger of the well ownership
with the fee simple interest of
the surface tract is less than
five
acres, the proposed exempt
domestic well owner shall post a
five thousand
dollar bond with
the division of mineral resources
management prior to the
assignment or transfer of the well to
ensure that the well will
be properly plugged. The chief, for
good
cause, may modify the
requirements of this section
governing the
assignment or transfer
of the interests of a well
to the
landowner. Upon the assignment
or transfer of the well,
the owner of an exempt domestic well is
subject to the severance
tax levied under section 5749.02 of the
Revised Code and all
applicable fees established in this chapter.
(C) 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),
and (12) 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.
(D) If a mortgaged property that is being foreclosed is
subject
to an oil or gas lease, pipeline agreement, or other
instrument
related to the production or sale of oil or natural
gas and the
lease, agreement, or other instrument was recorded
subsequent to
the mortgage, and if the lease, agreement, or other
instrument is
not in default, the oil or gas lease, pipeline
agreement, or other
instrument, as applicable, has priority over
all other liens,
claims, or encumbrances on the property so that
the oil
or gas lease, pipeline agreement, or other instrument is
not
terminated or extinguished upon the foreclosure sale of the
mortgaged property. If the owner of the mortgaged property was
entitled to oil and gas royalties before the foreclosure sale, the
oil or gas royalties shall be paid to the purchaser of the
foreclosed property.
Sec. 1509.34. (A) If an owner fails to pay the fees imposed
by
this chapter or the taxes levied on the severance of oil and
gas
under section 5749.02 of the Revised Code, or if the chief of
the
division of mineral resources management incurs costs under
division (E) of section 1509.071 of the Revised Code to correct
conditions associated with the owner's well that the chief
reasonably has determined are causing imminent health or safety
risks, the division of mineral resources management shall have a
priority lien against that owner's interest in the applicable well
in front of all
other creditors for the amount of any such unpaid
fees and taxes
and costs incurred. The chief shall file a
statement in the office
of the county recorder of the county in
which the applicable well is located of the amount of the unpaid
fees and taxes and
costs incurred as described in this division.
The statement shall
constitute a lien on the owner's interest in
the well as of the date of the
filing. The lien shall remain in
force so long as any portion of
the lien remains unpaid or until
the chief issues a certificate of
release of the lien. If the
chief issues a certificate of release
of the lien, the chief
shall file the certificate of release in
the office of the
applicable county recorder.
(B) The chief promptly shall issue a certificate of release
of a lien under either of the following circumstances:
(1) Upon the repayment in full of the amount of unpaid fees
imposed by this chapter or taxes levied on the severance of oil
and gas under section 5749.02 of the Revised Code or costs
incurred by the chief under division (E) of section 1509.071 of
the Revised Code to correct conditions associated with the owner's
well that the chief reasonably has determined are causing imminent
health or safety risks;
(2) Any other circumstance that the chief determines to be in
the best interests of the state.
(C) The chief may modify the amount of a lien under this
section. If the chief modifies a lien, the chief shall file a
statement in the office of the county recorder of the applicable
county of the new amount of the lien.
(D) An owner regarding which the division has recorded a lien
against the owner's interest in a well in accordance with this
section shall
not transfer a well, lease, or mineral rights to
another owner or
person until the chief issues a certificate of
release for each
lien against the owner's interest in the well.
(E) All money from the collection of liens under this section
shall be deposited in the state treasury to the credit of the oil
and gas well fund created in section 1509.02 of the Revised Code.
Sec. 1509.35. (A) There is hereby created an oil and gas
commission
consisting of five members appointed by the
governor.
Terms of office shall be for five years, commencing on the
fifteenth day of October and ending on the fourteenth day of
October, except that the terms of the first five members of
the
board shall be for one, two, three, four, and five years,
respectively, as designated by the governor at the time of the
appointment. Each member shall hold office from the date of
appointment until the end of the term for which the member
was
appointed. Any member appointed to fill a vacancy occurring prior
to the
expiration of the term for which the member's predecessor
was appointed
shall hold office for the remainder of such that
term. Any member
shall continue in office subsequent to the
expiration date of
the member's term until a successor takes
office, or
until a period of sixty
days has elapsed, whichever
occurs first. Each vacancy occurring on the
commission shall be
filled by appointment within sixty
days after the vacancy occurs.
One of the appointees to
the commission shall be a person who, by
reason of
the person's
previous
vocation, employment, or
affiliations, can be classed as a representative
of a major
petroleum company. One of the appointees to the commission
shall
be a person who, by reason of
the person's previous vocation,
employment, or affiliations, can be
classed as a representative
of
the public. One of the appointees to the
commission shall be a
person who, by reason of the
person's previous training and
experience,
can be classed as a representative of independent
petroleum
operators. One of the appointees to the commission
shall
be a person
who, by reason of the person's previous training and
experience, can be
classed as one learned and experienced in oil
and gas law. One
of the appointees to the commission shall be a
person
who, by reason
of the person's previous training and
experience, can be
classed as one
learned and experienced in
geology or petroleum engineering. Not more than three members
shall be members of the same political party. This division does
not apply to temporary members appointed under division (C) of
this section.
(B) Three members constitute a quorum and no action of the
commission is valid unless it has the concurrence of at
least a
majority of the members voting on that action. The commission
shall keep a record
of its proceedings.
(C) If the chairperson of the commission determines that a
quorum cannot be obtained for the purpose of considering a matter
that will be before the commission because of vacancies or recusal
of its members, the chairperson may contact the technical advisory
council on oil and gas created in section 1509.38 of the Revised
Code and request a list of members of the council who may serve as
temporary members of the commission. Using the list provided by
the council, the chairperson may appoint temporary members to the
commission. The appointment of temporary members shall be for only
the matter for which a quorum cannot be obtained. The number of
temporary members appointed by the chairperson shall not exceed
the number that is necessary to obtain a quorum for the matter. A
temporary member of the commission has the same authority, rights,
and obligations as a member of the commission, including the right
to compensation and other expenses as provided in this section.
The authority, rights, and obligations of a temporary member cease
when the temporary member's service on the commission ends.
(D) Each member shall be paid an amount fixed pursuant to
division (J) of section 124.15 of the Revised Code per diem when
actually engaged in the performance of work as a member and
when
engaged in travel necessary in connection with such that work.
In
addition to such compensation each member shall be reimbursed
for
all traveling, hotel, and other expenses necessarily incurred
in
the performance of work as a member.
(E) The commission shall select from among its members a
chairperson, a
vice-chairperson, and a secretary. These officers
shall serve for terms of one year.
(F) The governor may remove any member of the commission from
office for inefficiency, neglect of duty, malfeasance,
misfeasance, or
nonfeasance.
(G) The commission, in accordance with Chapter 119.
of the
Revised
Code, shall adopt rules to govern its procedure.
Sec. 1509.36. Any person claiming to be aggrieved or
adversely directly affected by an order by the chief of the
division of
mineral resources management may appeal to the oil
and
gas
commission for an order vacating or modifying such the order.
The person so appealing to the commission shall be known
as
appellant and the chief shall be known as appellee. Appellant
and
appellee shall be deemed to be parties to the appeal.
The appeal shall be in writing and shall set forth the
order
complained of and the grounds upon which the appeal is
based. The
appeal shall be filed with the
commission within thirty
days after
the date upon which the appellant received notice by
registered
certified
mail
of the making and, for all other persons claiming
to be directly affected by the order, within thirty days after the
date of the order complained of. Notice
of the
filing of
the
appeal shall be filed with the chief
within
three
days after
the
appeal is filed with the commission.
Upon the filing of the appeal the
commission promptly shall
fix the time and place at which the
hearing on the appeal will be
held, and shall give the appellant and the chief at least ten
days' written notice thereof by mail. The commission may
postpone
or
continue any hearing upon its own motion or upon application of
the
appellant or of the chief.
The filing of an appeal provided for in this section does
not
automatically suspend or stay execution of the order appealed
from, but upon application by the appellant the commission
may
suspend or stay such the execution pending determination of the
appeal
upon
such terms as the commission considers proper.
Either party to the appeal or any interested person who,
pursuant to commission rules has been granted
permission to
appear, may submit such evidence as the
commission considers
admissible.
For the purpose of conducting a hearing on an appeal, the
commission may require the attendance of witnesses and the
production of books, records, and papers, and it may, and at the
request of
any party it shall, issue subpoenas for witnesses or
subpoenas
duces tecum to compel the production of any books,
records, or
papers, directed to the sheriffs of the counties where
such the
witnesses are found. The subpoenas shall be
served and
returned
in the same manner as subpoenas in criminal cases are
served and
returned. The fees of sheriffs shall
be the same as
those allowed by the court of
common pleas in
criminal cases.
Witnesses shall be paid the fees
and mileage provided for under
section 119.094 of the Revised
Code. Such fees and mileage
expenses incurred at the
request of
appellant shall be paid in
advance by the appellant,
and the
remainder of such those
expenses
shall be paid out of funds
appropriated
for the
expenses of the
division of mineral
resources management.
In case of disobedience or neglect of any subpoena served
on
any person, or the refusal of any witness to testify to any
matter
regarding which the witness may be lawfully
interrogated, the
court
of common pleas of the county in which such the
disobedience,
neglect,
or refusal occurs, or any judge thereof,
on application
of the
commission or any member thereof, shall
compel obedience
by
attachment
proceedings for contempt as in the
case of disobedience
of the
requirements of a subpoena issued
from such that court or a
refusal to
testify therein. Witnesses
at such hearings shall
testify under
oath, and any member of the
commission may
administer
oaths or
affirmations to persons who so
testify.
At the request of any party to the appeal, a stenographic
record of the testimony and other evidence submitted shall be
taken by an official court shorthand reporter at the expense of
the party making the request therefor. Such The record shall
include
all of the testimony and other evidence and the rulings on
the
admissibility thereof presented at the hearing. The
commission
shall pass upon the admissibility of evidence, but any party
may
at the
time object to the admission of any evidence and except to
the
rulings of the commission thereon, and if the
commission
refuses to admit
evidence the party offering same may make a
proffer thereof, and such proffer
shall be made a part of the
record of such the hearing.
If upon completion of the hearing the commission finds
that
the order appealed from was lawful and reasonable, it shall make a
written order affirming the order appealed from; if the
commission
finds that the order was unreasonable or
unlawful, it shall make
a
written order vacating the order appealed from and making the
order that it finds the chief should have made. Every
order
made
by the commission shall contain a written finding by
the
commission of
the facts upon which the order is based.
Notice of the making of the order shall be given forthwith
to
each party to the appeal by mailing a certified copy thereof
to
each such party by certified mail.
The order of the commission is final unless vacated by the
court
of common pleas of Franklin county in an appeal as provided
for
in section 1509.37 of the Revised Code. Sections 1509.01 to
1509.37 of the Revised Code, providing for appeals
relating to
orders by the chief or by the commission, or
relating to rules
adopted by the
chief, do not constitute the exclusive procedure
that any
person who
believes the person's rights to be unlawfully
affected
by those sections or any official
action taken thereunder
must pursue in order to protect and preserve
those rights, nor do
those sections
constitute a procedure that that person must pursue
before
that person may lawfully appeal to the courts to protect
and
preserve those rights.
Sec. 1509.50. In addition to paying the applicable taxes
levied on the severance of oil and gas under section 5749.02 of
the Revised Code, an owner shall pay an oil and gas regulatory
cost recovery assessment of ten cents per barrel of oil or
one-half cent per one thousand cubic feet of natural gas, as
applicable, that is sold from all of the owner's wells located in
this state. The owner shall collect from each person who has a
revenue interest in a well of the owner that person's pro rata
share of the assessment.
The minimum amount of the assessment for every
quarterly
period, which periods are specified in section 5749.06
of the
Revised Code, shall be either the amount of fifteen dollars
multiplied by the total number of the owner's wells or the amount
of the owner's severance taxes levied under section 5749.02 of the
Revised Code plus the oil and gas regulatory cost recovery
assessment imposed by this section, whichever is greater. An owner
shall pay the assessment at the time and using the procedures that
are established in section 5749.06 of the Revised Code for the
collection of the taxes levied on the severance of oil and gas
under section 5749.02 of the Revised Code. All money collected
pursuant to this section shall be deposited in the state treasury
to the credit of the oil and gas well fund created in section
1509.02 of the Revised Code.
The oil and gas regulatory cost recovery assessment imposed
by this section shall be treated the same and equivalent for all
purposes as the taxes levied on the severance of oil and gas under
section 5749.02 of the Revised Code. However, the assessment
imposed by this section is not a tax under Chapter 5749. of the
Revised Code.
Sec. 1571.18. After the effective date of this section and
not later than March 31 each year, the owner of a well that is
used for gas storage or of a well that is used to monitor a gas
storage reservoir and that is located in a reservoir productive
area shall pay to the chief of the division of mineral resources
management a gas storage well regulatory fee of two hundred
twenty-five dollars for each well for the purposes of
administering this chapter and Chapter 1509. of the Revised Code.
The chief may prescribe and provide a form for the collection of
the fee imposed by this section and may adopt rules in accordance
with Chapter 119. of the Revised Code that are necessary for the
administration of this section.
All money collected under this section shall be deposited in
the state treasury to the credit of the oil and gas well fund
created in section 1509.02 of the Revised Code.
Sec. 5749.06. Each severer liable for the tax imposed by
section 5749.02 of
the Revised Code shall make and file returns
with the tax commissioner in the prescribed form and as of
the
prescribed times, computing and reflecting therein the tax as
required by
this chapter and the oil and gas regulatory cost
recovery assessment imposed by section 1509.50 of the Revised
Code.
The returns shall be filed for every quarterly period,
which
periods shall end on the thirty-first of March, the
thirtieth day
of June, the thirtieth day of September, and the
thirty-first day
of December of each year, as required by this
section, unless a
different return period is prescribed for a
taxpayer by the tax
commissioner.
A separate return shall be filed for each calendar
quarterly
period, or other period, or any part thereof, during
which the
severer holds a license as provided by section 5749.04
of the
Revised Code, or is required to hold such the license, and
such
the return
shall be filed within forty-five days after the last
day of each
such calendar month, or other period, or any part
thereof, for
which such the return is required and shall include
remittance payable
to the treasurer of state of the amount of tax
due. All such
returns shall contain such information as the
commissioner may
require to fairly administer the tax.
All returns shall be signed by the severer, shall contain
the
full and complete information requested, and shall be made
under
penalty of perjury.
If the commissioner believes that quarterly payments of tax
would result in a delay which that might jeopardize the collection
of
such tax payments, the commissioner may order that such
payments
be made weekly, or more frequently if necessary, such
payments to
be
made not later than seven days following the close
of the
period for
which the jeopardy payment is required. Such an
order
shall be
delivered to the taxpayer personally or by
certified mail
and
shall remain in effect until the commissioner
notifies the
taxpayer to the contrary.
Upon good cause the commissioner may extend the period for
filing any notice or return required to be filed under this
section, and may remit all or a part of penalties that may become
due under
this chapter.
Any tax not paid by the day the tax is due shall bear
interest computed at
the rate per annum prescribed by section
5703.47 of the Revised
Code on that amount of tax due from the day
that such the
amount was originally required to be paid to the day
of
actual payment or to the day an assessment was issued under
section 5749.07 or
5749.10 of the
Revised Code, whichever occurs
first.
The severer shall make all payments payable to the treasurer
of state. All Except for the amounts received from the oil and gas
regulatory cost recovery assessment imposed by section 1509.50 of
the Revised Code, all amounts that the tax commissioner receives
under
this section shall be deemed to be revenue from taxes
imposed
under this chapter. The tax commissioner shall immediately
forward
to the treasurer of state all amounts received under this
section.
Section 2. That existing sections 1509.01, 1509.02, 1509.03,
1509.04, 1509.05, 1509.06, 1509.07, 1509.071, 1509.072, 1509.10,
1509.11,
1509.12, 1509.13, 1509.14, 1509.17, 1509.18, 1509.20,
1509.21, 1509.22,
1509.221, 1509.222, 1509.225, 1509.226,
1509.23, 1509.27, 1509.31,
1509.35, 1509.36, and 5749.06 of the
Revised Code are hereby repealed.
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