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Sub. S. B. No. 165 As Passed by the SenateAs Passed by the Senate
128th General Assembly | Regular Session | 2009-2010 |
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Cosponsors:
Senators Gibbs, Stewart, Carey, Harris, Seitz, Hughes, Schaffer, Wilson, Cates, Wagoner, Coughlin
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,
1509.24, 1509.27, 1509.31, 1509.35, 1509.36,
1565.07, 1565.13, 1571.05, and 5749.06 and to
enact sections 1509.021, 1509.062, 1509.073,
1509.19, 1509.34, 1509.50, 1509.60, and 1509.61 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, 1509.24,
1509.27, 1509.31, 1509.35, 1509.36, 1565.07, 1565.13, 1571.05, and
5749.06 be amended and sections 1509.021, 1509.062, 1509.073,
1509.19, 1509.34, 1509.50, 1509.60, and 1509.61 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) "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.
(CC) "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.
(DD) "Temporarily inactive well" means a well that has been
granted temporary inactive status under section 1509.062 of the
Revised Code.
(EE) "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 and production operations 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, and 1509.50, 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. 1509.021. (A) On and after the effective date of this
section, the surface location of a new well shall not be within
one hundred fifty feet of an occupied dwelling that is located in
an urbanized area unless the owner of the land on which the
occupied dwelling is located consents in writing to the surface
location of the well less than one hundred fifty feet from the
occupied dwelling and the chief of the division of mineral
resources management approves the written consent of that owner.
However, the chief shall not approve the written consent of such
an owner when the surface location of a new well will be within
one hundred feet of an occupied dwelling that is located in an
urbanized area.
(B) On and after the effective date of this section, the
surface location of a new well shall not be less than one hundred
fifty feet from the property line of a parcel of land that is not
in the drilling unit of the well if the parcel of land is located
in an urbanized area and directional drilling will be used to
drill the new well unless the owner of the parcel of land consents
in writing to the surface location of the well less than one
hundred fifty feet from the property line of the parcel of land
and the chief approves the written consent of that owner. However,
the chief shall not approve the written consent of such an owner
when the surface location of a new well will be less than one
hundred feet from the property line of the owner's parcel of land
that is not in the drilling unit of the well if the parcel of land
is located in an urbanized area and directional drilling will be
used.
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 real property all or any portion of which is
included in the drilling unit. In addition, the notice shall
contain a statement that informs an owner of real property who is
required to receive the notice under division (A)(9) of this
section that within five days of receipt of the notice, the owner
is required to provide notice under section 1509.60 of the Revised
Code to each residence in an occupied dwelling that is located on
the owner's parcel of real property. 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. 1509.073. A person that is issued a permit under this
chapter to drill a new well or drill an existing well deeper in an
urbanized area shall establish fluid drilling conditions prior to
penetration of the Onondaga limestone and continue to use fluid
drilling until total depth of the well is achieved unless the
chief of the division of mineral resources management authorizes
such drilling without using fluid.
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 resulting in
annular overpressurization 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)(1) There is levied on the owner of an injection well who
has been issued a permit under division (D) of section 1509.22 of
the Revised Code the following fees:
(a) 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;
(b) 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.
(2) The maximum number of barrels of substance per injection
well in a calendar year on which a fee may be levied under
division (B) of this section is five hundred thousand. If in a
calendar year the owner of an injection well receives more than
five hundred thousand barrels of substance to be injected in the
owner's well and if the owner receives at least one substance that
is produced within the division's regulatory district in which the
well is located or within an adjoining regulatory district and at
least one substance that is not produced within the division's
regulatory district in which the well is located or within an
adjoining regulatory district, the fee shall be calculated first
on all of the barrels of substance that are not produced within
the division's regulatory district in which the well is located or
within an adjoining district at the rate established in division
(B)(2) of this section. The fee then shall be calculated on the
barrels of substance that are produced within the division's
regulatory district in which the well is located or within an
adjoining district at the rate established in division (B)(1) of
this section until the maximum number of barrels established in
division (B)(2) of this section has been attained.
(3) The owner of an injection well who is issued a permit
under division (D) of section 1509.22 of the Revised Code shall
collect the fee levied by division (B) of this section 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.
(4) 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 division (B) of this section.
(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;. Rules
adopted under division (A)(2) of this section shall not conflict
with section 1509.021 of the Revised Code.
(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. 1509.24. (A) The chief of the division of mineral
resources management, with the approval of the technical advisory
council on oil and gas created in section 1509.38 of the Revised
Code, may adopt, amend, or rescind rules relative to minimum
acreage requirements for drilling units and minimum distances from
which a new well may be drilled or an existing well deepened,
plugged back, or reopened to a source of supply different from the
existing pool from boundaries of tracts, drilling units, and other
wells for the purpose of conserving oil and gas reserves.
Rules
The rules relative to minimum acreage requirements for drilling
units shall require a drilling unit to be compact and composed of
contiguous land.
(B) Rules adopted under this section and special orders made
under section 1509.25 of the Revised Code shall apply only to new
wells to be drilled or existing wells to be deepened, plugged
back, or reopened to a source of supply different from the
existing pool for the purpose of extracting oil or gas in their
natural 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. 1509.60. If the owner of a parcel of real property
receives a notice concerning the filing of an application for a
permit to drill a new well within an urbanized area as required by
division (A)(9) of section 1509.06 of the Revised Code, the owner
shall provide to each residence in an occupied dwelling that is
located on the owner's parcel of real property, if any, a copy of
that notice within five days of receipt of the notice.
Sec. 1509.61. (A) The legislative authority of a political
subdivision shall conduct a public meeting concerning a proposed
lease agreement for the development of oil and gas resources on
land that is located in an urbanized area and that is owned by the
political subdivision prior to entering into the lease agreement.
The public meeting shall be conducted in a public venue in the
municipal corporation or township in which the proposed well is to
be located. The public meeting shall not occur at the same meeting
at which the legislative authority of the political subdivision
votes to enter into a proposed lease, if applicable.
The legislative authority of the political subdivision shall
send notice not later than ten days prior to the date of the
public meeting to the owner of each parcel of real property that
is located within five hundred feet of the surface location of the
property that is the subject of the proposed lease agreement. The
notice shall contain a statement that the legislative authority of
the political subdivision is considering entering into an oil or
gas lease agreement, and provide the location, date, and time of
the public meeting. In addition, the statement shall contain a
statement that informs an owner of real property who is required
to receive notice of the public meeting under this division that,
within five days of receipt of the notice, the owner is required
to provide notice under division (C) of this section to each
residence in an occupied dwelling that is located on the owner's
parcel of real property.
(B) The legislative authority of a political subdivision that
is required to provide notice under division (A) of this section
shall provide the notice in accordance with requirements
established by the legislative authority governing public meetings
that are held by the legislative authority.
(C) If the owner of a parcel of real property receives a
notice under division (A) of this section, the owner shall provide
to each residence in an occupied dwelling that is located on the
owner's parcel of real property, if any, a copy of that notice
within five days of receipt of the notice.
Sec. 1565.07. The superintendent in charge of a mine shall
direct the mine foreperson in such manner as is necessary to
secure compliance with this chapter and Chapters 1561., 1563., and
1567. and sections section 1509.18 and 1509.19 of the Revised
Code. The superintendent may act as mine foreperson, but if the
superintendent does so act regularly, the superintendent shall
obtain a certificate from the chief of the division of mineral
resources management in the same manner as the certification of
mine foreperson is obtained.
A person designated as a superintendent of an underground
coal mine after January 1, 1977, shall, within six months after
being so designated, demonstrate to the chief that the person has
knowledge of the mining laws of this state governing the operation
of underground coal mines either by presenting evidence that the
person has passed a mine foreperson examination given by the chief
or an examination given by the chief concerning the laws of this
state governing the operation of underground coal mines.
No person shall refuse or neglect to comply with this
section.
Sec. 1565.13. In case of an injury to person or property,
occasioned by a violation of this chapter and Chapters 1561.,
1563., and 1567., and sections section 1509.18 and 1509.19 of the
Revised Code, or any failure to comply with such those chapters or
sections that section, by any operator of a mine, a right of
action shall accrue to the person injured, for any direct damage
he the person injured has sustained thereby. In case of loss of
life by reason of such failure or neglect, a right of action shall
accrue to the widow, and children, or if there are none, then to
the parents and next of kin, of the person whose death was so
caused, for like recovery of damages for the injury they have
sustained. Any operator of a mine who has complied with Chapter
4123. of the Revised Code, is exempt as provided in section
4123.74 of the Revised Code, and not liable for damages at common
law or by statute for injury or death of any employee.
Sec. 1571.05. (A) Whenever any part of a gas storage
reservoir or any part of its protective area underlies any part of
a coal mine, or is, or within nine months is expected or intended
to be, within two thousand linear feet of the boundary of a coal
mine that is operating in a coal seam any part of which extends
over any part of the storage reservoir or its protective area, the
operator of such the reservoir, if the reservoir operator or some
other reservoir operator has not theretofore done so, shall:
(1) Use every known method that is reasonable under the
circumstance for discovering and locating all wells drilled within
the area of such the reservoir or its protective area that
underlie any part of such the coal mine or its protective area;
(2) Plug or recondition all known wells drilled within the
area of such the reservoir or its protective area that underlie
any part of such the coal mine.
(B) Whenever an operator of a gas storage reservoir is
notified by the operator of a coal mine, as provided in division
(B) of section 1571.03 of the Revised Code, that such
the coal
mine operator believes that part of the boundary of such the mine
is within two thousand linear feet of a well that is drilled
through the horizon of such the coal mine and into or through the
storage stratum or strata of such the reservoir within the
boundary of such the reservoir or within its protective area, such
the reservoir operator shall plug or recondition such the well as
in this section prescribed, unless it is agreed in a conference or
is ordered by the chief of the division of mineral resources
management after a hearing, as provided in section 1571.10 of the
Revised Code, that the well referred to in the notice is not such
a well as is described in division (B) of section 1571.03 of the
Revised Code.
Whenever an operator of a gas storage reservoir is notified
by the operator of a coal mine as provided in division (C) or (D)
of section 1571.03 of the Revised Code, that part of the boundary
of such the mine is, or within nine months is intended or expected
to be, within two thousand linear feet of a well that is drilled
through the horizon of such the mine and into or through the
storage stratum or strata of such the reservoir within the
boundary of such
the reservoir or within its protective area, such
the reservoir operator shall plug or recondition such the well as
in this section prescribed.
Whenever the operator of a coal mine considers that the use
of a well such as in this section described, if used for injecting
gas into, or storing gas in, or removing gas from, a gas storage
reservoir, would be hazardous to the safety of persons or property
on or in the vicinity of the premises of such
the coal mine or
such the reservoir or well, the coal mine operator may file with
the division objections to the use of such the well for such
purposes, and a request that a conference be held as provided in
section 1571.10 of the Revised Code, to discuss and endeavor to
resolve by mutual agreement whether or not such the well shall or
shall not be used for such purposes, and whether or not such the
well shall be reconditioned, inactivated, or plugged. Such The
request shall set forth the mine operator's reasons for such
objections. If no approved agreement is reached in such the
conference, the gas storage well inspector shall within ten days
after the termination of such the conference, file with the chief
a request that the chief hear and determine the matters considered
at the conference as provided in section 1571.10 of the Revised
Code. Upon conclusion of the hearing, the chief shall find and
determine whether or not the safety of persons or of the property
on or in the vicinity of the premises of such the coal mine, or
such the reservoir, or such the well requires that
such the well
be reconditioned, inactivated, or plugged, and shall make an order
consistent with such that determination, provided that the chief
shall not order a well plugged unless the chief first finds that
there is underground leakage of gas therefrom.
The plugging or reconditioning of each well described in a
notice from a coal mine operator to a reservoir operator as
provided in division (B) of section 1571.03 of the Revised Code,
which must be plugged or reconditioned, shall be completed within
such time as the gas storage well inspector may fix in the case of
each such well. The plugging or reconditioning of each well
described in a notice from a coal mine operator to a reservoir
operator as provided in division (C) of section 1571.03 of the
Revised Code, which must be plugged or reconditioned, shall be
completed by the time such the well, by reason of the extension of
the boundary of such the coal mine, is within two thousand linear
feet of any part of the boundary of such the mine. The plugging or
reconditioning of each well described in a notice from a coal mine
operator to a reservoir operator, as provided in division (D) of
section 1571.03 of the Revised Code, which must be plugged or
reconditioned, shall be completed by the time such the well, by
reason of the opening of such the new mine, is within two thousand
linear feet of any part of the boundary of such the new mine. A
reservoir operator who is required to complete the plugging or
reconditioning of a well within a period of time fixed as in this
division prescribed, may prior to the end of such
that period of
time, notify the division and the mine operator from whom the
reservoir operator received a notice as provided in division (B),
(C), or (D) of section 1571.03 of the Revised Code, in writing by
registered mail, that the completion of the plugging or
reconditioning of the well referred to in such the notice will be
delayed beyond the end of the period of time fixed therefor as in
this section provided, and that the reservoir operator requests
that a conference be held for the purpose of endeavoring to reach
an agreement establishing a date subsequent to the end of such
that period of time, on or before which such the reservoir
operator may complete such
the plugging or reconditioning without
incurring any penalties for failure to do so as provided in this
chapter. If such a reservoir operator sends to such a mine
operator and to the division a notice and request for a conference
as in this division provided, such the reservoir operator shall
not incur any penalties for failure to complete the plugging or
reconditioning of such the well within the period of time fixed as
in this division prescribed, unless such the reservoir operator
fails to complete the plugging or reconditioning of such the well
within the period of time fixed by an approved agreement reached
in such
the conference, or fixed by an order by the chief upon a
hearing held in the matter in the event of failure to reach an
approved agreement in the conference.
Whenever, in compliance with this division, a well is to be
plugged by a reservoir operator, such the operator shall give to
the division notice thereof, as many days in advance as will be
necessary for the gas storage well inspector or a deputy mine
inspector to be present at such
the plugging. Such The
notification shall be made on blanks furnished by the division and
shall show the following information:
(1) Name and address of the applicant;
(2) The location of the well identified by section or lot
number, city or village, and township and county;
(3) The well name and number of each well to be plugged.
(C) The operator 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 the adjoining land, and adjoining well owners
or agents of the operator's intention to abandon the well, and of
the time when the operator will be prepared to commence plugging
and filling the same. In addition to giving such notices, such the
reservoir operator shall also at the same time send a copy of such
the notice by registered mail to the coal mine operator, if any,
who sent to the reservoir operator the notice as provided in
division (B), (C), or (D) of section 1571.03 of the Revised Code,
in order that
such the coal mine operator or the coal mine
operator's designated representative, may attend and observe the
manner in which
such the plugging of such the well is done.
If the reservoir operator plugs such the well without an
inspector from the division being present to supervise the
plugging, the reservoir operator shall send to the division and to
the coal mine operator a copy of the report of the plugging of
such the well, including in such the report:
(1) The date of abandonment;
(2) The name of the owner or operator of such the well at the
time of abandonment and the well owner's or operator's post office
address;
(3) The location of such the well as to township and county
and the name of the owner of the surface upon which such the well
is drilled, with the address thereof;
(4) The date of the permit to drill;
(5) The date when drilled;
(6) Whether such the well has been mapped;
(7) The depth of the well;
(8) The depth of the top of the sand to which the well was
drilled;
(9) The depth of each seam of coal drilled through;
(10) A detailed report as to how such the well was plugged,
giving in particular the manner in which the coal and various
sands were plugged, and the date of the plugging of such the well,
including therein the names of those who witnessed the plugging of
the well.
Such The report shall be signed by the operator or the
operator's agent who plugged such the well and verified by the
oath of the party so signing. For the purposes of this section, a
deputy mine inspector may take acknowledgements and administer
oaths to the parties signing such the report.
Whenever, in compliance with this division, a well is to be
reconditioned by a reservoir operator, such
the operator shall
give to the division notice thereof as many days before such the
reconditioning is begun as will be necessary for the gas storage
well inspector, or a deputy mine inspector, to be present at such
the reconditioning. No well shall be reconditioned if an inspector
of the division is not present unless permission to do so has been
granted by the chief. The reservoir operator, at the time of
giving notice to the division as in this section required, also
shall send a copy of such the notice by registered mail to the
coal mine operator, if any, who sent to the reservoir operator the
notice as provided in division (B), (C), or (D) of section 1571.03
of the Revised Code, in order that
such the coal mine operator or
the coal mine operator's designated representative, may attend and
observe the manner in which such the reconditioning of
such the
well is done.
If the reservoir operator reconditions such the well when no
inspector of the division is present to supervise the
reconditioning, the reservoir operator shall make written report
to the division describing the manner in which such the
reconditioning was done, and shall send to the coal mine operator
a copy of such the report by registered mail.
(D) Wells that are required by this section to be plugged
shall be plugged in the manner specified in sections 1509.13 to
1509.19 1509.17 of the Revised Code, and the operator shall give
the notifications and reports required by divisions (B) and (C) of
this section. No such well shall be plugged or abandoned without
the written approval of the division, and no such well shall be
mudded, plugged, or abandoned without the gas storage well
inspector or a deputy mine inspector present unless written
permission has been granted by the chief or the gas storage well
inspector. If such a well has been plugged prior to the time
plugging thereof is required by this section, and, on the basis of
the data, information, and other evidence available it is
determined that such the plugging was done in the manner required
by this section, or was done in accordance with statutes
prescribing the manner of plugging wells in effect at the time
such the plugging was done, and that there is no evidence of
leakage of gas from such the well either at or below the surface,
and that such the plugging is sufficiently effective to prevent
the leakage of gas from such the well, the obligations imposed
upon such the reservoir operator by this section as to plugging
the well, shall be considered fully satisfied. The operator of a
coal mine any part of the boundary of which is, or within nine
months is expected or intended to be, within two thousand linear
feet of such the well, may at any time raise a question as to
whether the plugging of such the well is sufficiently effective to
prevent the leakage of gas therefrom, and the issue so made shall
be determined by a conference or hearing as provided in section
1571.10 of the Revised Code.
(E) Wells that are to be reconditioned as required by this
section shall be, or shall be made to be:
(1) Cased in accordance with the statutes of this state in
effect at the time such the wells were drilled, with such the
casing being, or made to be, sufficiently effective in that there
is no evidence of any leakage of gas therefrom;
(2) Equipped with a producing string and well head composed
of new pipe, or pipe as good as new, and fittings designed to
operate with safety and to contain the stored gas at maximum
pressures contemplated.
When a well that is to be reconditioned as required by this
section, has been reconditioned for use in the operation of
such
the reservoir prior to the time prescribed in this section, and on
the basis of the data, information, and other evidence available
it is determined that at the time such the well was so
reconditioned the requirements prescribed in this division were
met, and that there is no evidence of underground leakage of gas
from such the well, and that such the reconditioning is
sufficiently effective to prevent underground leakage from the
well, the obligations imposed upon such the reservoir operator by
this section as to reconditioning such the well shall be
considered fully satisfied. Any operator of a coal mine any part
of the boundary of which is, or within nine months is expected or
intended to be, within two thousand linear feet of such the well,
may at any time raise a question as to whether the reconditioning
of such the well is sufficiently effective to prevent underground
leakage of gas therefrom, and the issue so made shall be
determined by a conference or hearing as provided in section
1571.10 of the Revised Code.
If the gas storage well inspector at any time finds that a
well that is drilled through the horizon of a coal mine and into
or through the storage stratum or strata of a reservoir within the
boundary of such the reservoir or within its protective area, is
located within the boundary of such the coal mine or within two
thousand linear feet of such the mine boundary, and was drilled
prior to the time the statutes of this state required that wells
be cased, and that
such the well fails to meet the casing and
equipping requirements prescribed in this division, the gas
storage well inspector shall promptly notify the operator of such
the reservoir thereof in writing, and such the reservoir operator
upon receipt of
such the notice, shall promptly recondition such
the well in the manner prescribed in this division for
reconditioning wells, unless, in a conference or hearing as
provided in section 1571.10 of the Revised Code, a different
course of action is agreed upon or ordered.
(F)(1) When a well within the boundary of a gas storage
reservoir or within such the reservoir's protective area
penetrates the storage stratum or strata of such the reservoir,
but does not penetrate the coal seam within the boundary of a coal
mine, the gas storage well inspector may, upon application of the
operator of such the storage reservoir, exempt such the well from
the requirements of this section. Either party affected by such
the action of the gas storage well inspector may request a
conference and hearing with respect to such the exemption.
(2) When a well located within the boundary of a storage
reservoir or a reservoir's protective area is a producing well in
a stratum above or below the storage stratum, the obligations
imposed by this section shall not begin until such the well ceases
to be a producing well.
(G) When retreat mining reaches a point in a coal mine when
the operator of such the mine expects that within ninety days
retreat work will be at the location of a pillar surrounding an
active storage reservoir well, the operator of such the mine shall
promptly send by registered mail notice to that effect to the
operator of such the reservoir. Thereupon the operators may by
agreement determine whether it is necessary or advisable to
temporarily inactivate the well. If inactivated, the well shall
not be reactivated until a reasonable period of time has elapsed,
such period of time to be determined by agreement by the
operators. In the event that the parties cannot agree upon either
of the foregoing matters, such the question shall be submitted to
the gas storage well inspector for a conference in accordance with
section 1571.10 of the Revised Code.
(H)(1) The provisions of this section that require the
plugging or reconditioning of wells shall not apply to such wells
as are used to inject gas into, store gas in, or remove gas from,
a gas storage reservoir when the sole purpose of such the
injection, storage, or removal, is testing. The operator of a gas
storage reservoir who injects gas into, stores gas in, or removes
gas from, a reservoir for the sole purpose of testing, shall be
subject to all other provisions of this chapter that are
applicable to operators of reservoirs.
(2) If the injection of gas into, or storage of gas in, a gas
storage reservoir any part of which, or of the protective area of
which, is within the boundary of a coal mine, is begun after
September 9, 1957, and if such the injection or storage of gas is
for the sole purpose of testing, the operator of such
the
reservoir shall send by registered mail to the operator of such
the coal mine and to the division at least sixty days' notice of
the date upon which such the testing will be begun.
If at any time within the period of time during which testing
of a reservoir is in progress, any part of such the reservoir or
of its protective area comes within any part of the boundary of a
coal mine, the operator of such the reservoir shall promptly send
notice to that effect by registered mail to the operator of such
the mine and to the division.
(3) Any coal mine operator who receives a notice as provided
for in division (H)(2) of this section, may within thirty days of
the receipt thereof, file with the division objections to such the
testing. The gas storage well inspector also may, within the time
within which a coal mine operator may file
such an objection,
place in the files of the division objections to
such the testing.
The reservoir operator shall comply throughout the period of the
testing operations with all conditions and requirements agreed
upon and approved in the conference on such objections conducted
as provided in section 1571.10 of the Revised Code, or in an order
made by the chief following a hearing in the matter as provided in
section 1571.10 of the Revised Code. If in complying with such the
agreement or order either the reservoir operator or the coal mine
operator encounters or discovers conditions that were not known to
exist at the time of such the conference or hearing and that
materially affect such the agreement or order, or the ability of
the reservoir operator to comply therewith, either operator may
apply for a rehearing or modification of the order.
(I) In addition to complying with all other provisions of
this chapter and any lawful orders issued thereunder, the operator
of each gas storage reservoir shall keep all wells drilled into or
through the storage stratum or strata within the boundary of the
operator's reservoir or within the reservoir's protective area in
such condition, and operate the same in such manner, as to prevent
the escape of gas therefrom into any coal mine, and shall operate
and maintain such the storage reservoir and its facilities in such
manner and at such pressures as will prevent gas from escaping
from such
the reservoir or its facilities into any coal mine.
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,
1509.24, 1509.27, 1509.31, 1509.35, 1509.36, 1565.07, 1565.13,
1571.05, and 5749.06 of the Revised Code are hereby repealed.
Section 3. It is the intent of the General Assembly that the
gas storage well program that is administered by the Division of
Mineral Resources Management in the Department of Natural
Resources and that includes regulatory oversight of gas storage
wells and related facilities and site inspections of gas storage
wells and related facilities will be funded by reasonable fees
assessed on owners of gas storage wells.
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