The online versions of legislation provided on this website are not official. Enrolled bills are the final version passed by the Ohio General Assembly and presented to the Governor for signature. The official version of acts signed by the Governor are available from the Secretary of State's Office in the Continental Plaza, 180 East Broad St., Columbus.
|
S. B. No. 196 As IntroducedAs Introduced
128th General Assembly | Regular Session | 2009-2010 |
| |
A BILL
To amend sections 1509.01 to 1509.05, 1509.06,
1509.061, 1509.07, 1509.071, 1509.072, 1509.08,
1509.09 to 1509.15, 1509.17, 1509.18, 1509.20 to
1509.22, 1509.221, 1509.222, 1509.223, 1509.224,
1509.225, 1509.23, 1509.24, 1509.26, 1509.30,
1509.31 to 1509.33, 1509.35, 1509.36, 1509.38,
1509.99, 1565.07, 1565.13, 1571.05, and 5749.06,
to enact sections 1509.051, 1509.062, 1509.073,
1509.074, 1509.075, 1509.076, 1509.081, 1509.19,
1509.191, 1509.34, and 1509.50, and to repeal
sections
1509.226, 1509.25, 1509.27, 1509.29,
1509.40, and
1509.41 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, 1509.061, 1509.07, 1509.071, 1509.072, 1509.08,
1509.09, 1509.10, 1509.11, 1509.12, 1509.13, 1509.14, 1509.15,
1509.17, 1509.18, 1509.20, 1509.21, 1509.22, 1509.221, 1509.222,
1509.223, 1509.224, 1509.225, 1509.23, 1509.24, 1509.26, 1509.30,
1509.31, 1509.32, 1509.33, 1509.35, 1509.36, 1509.38, 1509.99,
1565.07, 1565.13, 1571.05, and 5749.06 be
amended and sections
1509.051, 1509.062, 1509.073, 1509.074,
1509.075, 1509.076,
1509.081, 1509.19, 1509.191, 1509.34, and 1509.50 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, according to the
records of the county in which a parcel of land is located, either
holds fee title to the surface estate of the parcel of land on
which oil or gas drilling operations may occur or holds fee title
to the subsurface mineral rights of the parcel of land.
(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 production of oil or gas.
(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
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 person that owns 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 four 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;
(5) Is in compliance with the environmental and safety
standards established in this chapter and rules adopted under it.
(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 is contiguous to or includes any street or
highway along which are located at intervals of two hundred feet
or less structures that are used for business purposes or
residential dwellings.
(Z) "Well stimulation" or "stimulation of a well" means the
process of enhancing well productivity, including hydraulic
fracturing operations.
(AA) "Production operation" means site preparation, access
roads, drilling,
well completion, well stimulation, well
operation, site
reclamation, and well plugging. "Production
operation" also
includes all of the following:
(1) The piping and equipment used for the production and
preparation of hydrocarbon gas or liquids for transportation or
delivery;
(2) The processes of extraction and recovery, lifting,
stabilization, treatment, separation, production processing,
storage, and measurement of hydrocarbon gas and liquids;
(3) The processes associated with production compression, gas
lift, gas injection, and fuel gas supply.
(BB) "Gathering" means the use of any pipeline or series of
pipelines to collect and transport natural gas from the
furthermost downstream point in a production operation to the
furthermost downstream point of the series of endpoints identified
as the end of a gathering line under the "Natural Gas Pipeline
Safety Act of 1968," 82 Stat. 720 (1968), 49. U.S.C. App. 1671 et
seq., as amended, and the regulations adopted under it, including,
without limitation, 49 C.F.R. part 192.
(CC) "Annular overpressurization" means the accumulation of
fluids within an annulus with sufficient pressure to allow
migration of annular fluids into underground sources of drinking
water.
(DD) "Idle and orphaned well" means a well for which a bond
has been forfeited or an abandoned well for which no money is
available to plug the well in accordance with this chapter and
rules adopted under it.
(EE) "Temporarily inactive well" means a well that has been
granted temporary inactive status under section 1509.062 of the
Revised Code.
(FF) "Material and substantial violation" means all of the
following:
(1) Failure to obtain a permit to drill, reopen, convert,
plugback, or plug a well under this chapter;
(2) Failure to obtain or maintain insurance coverage that is
required under this chapter;
(3) Failure to obtain or maintain a surety bond that is
required under this chapter;
(4) Failure to plug an abandoned well or idle and orphaned
well unless the well has been granted temporary inactive status
under
section 1509.062 of the Revised Code or the chief has
approved another option concerning
the abandoned well or idle and
orphaned well;
(5) Failure to restore a disturbed land surface as required
by section 1509.072 of the Revised Code;
(6) Failure to reimburse the oil and gas well fund pursuant
to a
final order issued under section 1509.071 of the Revised
Code;
(7) Failure to comply with an order of the chief issued under
section 1509.04 of the Revised Code.
(GG) "Permittee" means a person who has been issued a permit
by the division of mineral resources management under this chapter
and who by contract has the right to exploit oil or gas within a
drilling unit.
(HH) "Local zoning authority" means the authority of a
municipal corporation that is charged with enacting zoning
requirements within the municipal corporation or the board of
township trustees, township zoning commission, or board of zoning
appeals of a township, as applicable.
(II) "Local inspector" means an individual who has the
authority in a municipal corporation or a township,
as
applicable, to enforce any of the following:
(2) State and local building codes;
Sec. 1509.02. (A)(1) 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 Except as provided
in divisions (A)(2) and (3) of this section, the division has sole
and exclusive authority to regulate the permitting, location, and
spacing of, installation, operation, maintenance, abandonment,
plugging, and site restoration of, disposal of waste from, and all
other matters related to oil and gas wells within the state that
are necessary to protect the health and safety of the public,
property, and environment. 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
(2) On and after the effective date of this amendment, no
well shall be drilled in an area that is zoned residential or
within one thousand feet of a residential dwelling unless
otherwise authorized by the local zoning authority.
(3) Nothing in this section affects the authority granted to
the director of transportation and local authorities in section
4513.34 of the Revised Code.
(B) 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.
(C) All moneys collected by the chief pursuant to sections
1509.06, 1509.061, 1509.071, 1509.13, 1509.22, and 1509.222,
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
shall be paid to the county
treasury of the county where the
violation occurred.
The fund shall be used 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. The expenses of the
division in
excess of the moneys available in the fund shall be
paid from
general revenue fund appropriations to the department.
Sec. 1509.03. The chief of the division of mineral
resources
management
shall adopt, rescind, and amend, in accordance
with
Chapter 119. of the
Revised Code, rules for the
administration,
implementation, and enforcement of this chapter. The rules shall
establish standards governing the drilling of a new well, the
reopening of an existing well, the drilling of an existing well
deeper regardless of its depth or the geological zone from which
production occurs, and the plugging of an existing well. The rules
shall protect and preserve the health and safety of the public,
property, and the environment. In addition, 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;
that includes, but is not limited to, all of the following:
(1) Implementation of a fail-safe warning system at a new or
existing oil or gas well for the detection of a leak of natural
gas, hydrogen sulfide, or radon, a spill of a toxic chemical, or
an explosion. In addition, the rules shall require the fail-safe
warning system to provide an audible alarm to warn the workers at
the surface location of the well and the public of such a leak,
spill, or explosion. The rules also shall require the fail-safe
warning system to notify the fire department within whose
jurisdiction the well is located of such a leak, spill, or
explosion.
(2) Designation of safe operating distances for a new well
that is located in an urbanized area;
(3) Emergency response and evacuation planning.
(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;
(H) Nighttime lighting mitigation;
(I) Protection and preservation of the environment and
nonmineral natural resources.
The rules adopted by the chief under this section also shall
provide for the application of Chapter 3737. of the Revised Code
and rules adopted under it to the drilling and operation of a well
and to production facilities of a well that are located within an
urbanized area.
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.
No
person shall violate any rule
of the
chief adopted under
this chapter.
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 deemed
adequate if it provides reasonable or actual notice to the person,
owner, resident, applicant, or permittee whose interest will be
affected by an action of the chief to govern the giving of
notices. Such
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, and
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. (A) 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
(B) The chief or the chief's authorized representative shall
issue a citation to a permittee
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,
administrative order, or letter.
(C) 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.
(D)(1) 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 a permittee
is causing,
engaging in, or maintaining a condition or
activity
that the
chief determines presents an immediate danger to
the
health or
safety of the public or that results in or is
likely to
result
in 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 permittee have failed
or if
the permittee has failed to
comply with
prior enforcement
actions, but in such an event
notification
shall be given as
soon thereafter as practical.
(2) Not later than five days after the issuance of a
suspension
order, the chief shall provide the permittee an
opportunity to be heard and to present evidence
that the
condition or activity does not
present an immediate
danger to
the public health or safety or is not likely to result
in
substantial damage to natural resources. If the
chief,
after
considering
evidence presented by the permittee, determines that
the
activities do not
present such a
threat, the chief shall
revoke
the suspension
order.
Notwithstanding any other provision of
this chapter, the
permittee 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. In such an appeal, any person may file a
motion to intervene to uphold a suspension order if the person
demonstrates that the person has an interest that is or may be
adversely affected by the activity for which the chief has issued
a suspension order under this section. If the court upholds the
suspension order, the court may require the appellant permittee to
pay the court costs and reasonable attorney fees of the person
intervening.
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 operator.
(3) If the permittee 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 permittee
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 permittee, determines that the reporting
requirements have been satisfied, the chief shall revoke the
suspension order.
Notwithstanding any other provision of this
chapter, the
permittee 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. In such an appeal, any person
may file a motion to intervene to uphold a suspension order if the
person demonstrates that the person has an interest that is or may
be adversely affected by the activity for which the chief has
issued a suspension order under this section. If the court upholds
the suspension order, the court may require the appellant
permittee to pay the court costs and reasonable attorney's fees of
the person intervening.
The chief also may issue a bond forfeiture order pursuant to
section 1509.071 of the Revised Code.
(E) 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. In such an action, any person may file
a motion to intervene for the issuance of a temporary restraining
order, preliminary injunction, or permanent injunction if the
person demonstrates that the person has an interest that is or may
be adversely affected by the violation for which the prosecuting
attorney or attorney general has commenced the action.
(F) The chief may enter into a compliance agreement by
consent decree if such an agreement will end a violation.
(G) The chief may request a peace officer or a fire
department to respond to the surface location of a well and
temporarily assist the division of mineral resources management in
the enforcement or administration of this chapter until a mineral
resources inspector arrives at the well.
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. However, the chief shall not
issue such a permit to a person unless the terms and conditions of
the permit will not conflict with any zoning, health, and safety
ordinances and resolutions that are in effect in the municipal
corporation or the township where the drilling tract and the well
are to be located.
A permittee shall post or display 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
permittee 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 for a well that is or is to be located in an
urbanized area shall be valid for twelve months, and a permit for
a well that is or is to be located in any other area shall be
valid for twenty-four months.
Sec. 1509.051. A permit or order issued by the chief of the
division of mineral resources management under this chapter shall
not authorize or allow a permittee or any other person to do any
of the following:
(A) Drill an oil or gas well within the boundaries of a
state, municipal, or township park or within a recreational area
or nature preserve;
(B) Drill an oil or gas well within two thousand feet of a
lake, stream, or other body of water that is used as a source of
drinking water;
(C) Drill an oil or gas well without the use of a blow-out
preventer;
(D) Bury hazardous waste, radioactive material, or chemicals
used in fracturing subsurface strata or otherwise dispose of any
toxic substance at the location of a well. As used in this
division:
(1) "Hazardous waste" has the same meaning as in section
3734.01 of the Revised Code.
(2) "Radioactive material" has the same meaning as in section
3748.01 of the Revised Code.
(3) "Toxic substance" has the same meaning as in section
3716.01 of the Revised Code.
(E) Drill a new well or drill an existing well deeper without
implementing best operating standards and practices that are
recognized by the oil and gas industry.
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 applicant and, if a
corporation,
the name and address of the statutory agent;. In
addition, the application shall include the name and telephone
number of a person that may be contacted in an emergency and who
is located within a twenty-minute travel time from the location of
the proposed well or well.
(2) The signature of the owner applicant or the owner's
applicant's authorized
agent.
When an authorized agent signs an
application, it shall be
accompanied by a certified copy of the
appointment as such
agent.
(3) The names and addresses of all persons holding the
royalty interest in the tract upon which the well is located or
is
to be drilled or within a proposed drilling unit;
(4) The location of the tract or drilling unit on which
the
well is located or is to be drilled identified by section or
lot
number, city, village, township, and county;
(5) Designation of the well by name and number;
(6) The geological formation to be tested or used and the
proposed total depth of the well;
(7) The type of drilling equipment to be used;
(8) If the well is for the injection of a liquid, identity
of
the geological formation to be used as the injection zone and
the
composition of the liquid to be injected;
(9) For an application for a permit to drill a new well, a A
sworn statement that the applicant has provided notice of the
application to the owner of each occupied each person residing in
a dwelling unit that is located within five hundred three thousand
feet of the surface location of the proposed well if the surface
location will be less than five hundred feet from the boundary of
the drilling unit and more than fifteen occupied dwelling units
are located less than five hundred feet from the surface location
of the well, excluding any dwelling that is located on real
property all or any portion of which is included in the drilling
unit or well. The notice shall contain a the following 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:
"PLEASE BE ADVISED. AN APPLICATION HAS BEEN FILED WITH THE
DIVISION OF MINERAL RESOURCES MANAGEMENT IN THE DEPARTMENT OF
NATURAL RESOURCES FOR A PERMIT TO DRILL AN OIL OR GAS WELL ON
PROPERTY LOCATED AT [address of the location of the proposed
surface location or surface location of the well]. A PUBLIC
MEETING WILL BE HELD [location, date, and time of the meeting] AT
WHICH YOU
MAY APPEAR AND COMMENT ON WHETHER THE APPLICATION FOR
THE PERMIT
SHOULD BE APPROVED. If YOU CANNOT ATTEND THE MEETING,
YOU MAY
CONTACT THE DIVISION AT [telephone number of the division
of
mineral resources management] TO PROVIDE YOUR COMMENTS. THE
COMMENT PERIOD CONCERNING THE APPLICATION CLOSES [date that is
seven business days after the date of the scheduled public
meeting]. PLEASE
REFER TO APPLICATION NUMBER [number of the
application] WHEN YOU
PROVIDE YOUR COMMENTS. THE APPLICATION WAS
FILED BY [name and
phone number of the person that filed the
application and the name
of the person's statutory agent, if
applicable]. The"
The notice shall be issued not later than fifteen days prior
to the date of the public meeting that is required under this
section and may be provided by hand delivery or regular mail. In
addition, not later than fifteen days prior to the public meeting,
the notice shall be published in a newspaper of general
circulation in the county in which the well is to be or is
located. The identity of the owners of occupied persons residing
in dwelling units shall be determined using the tax records and
property records of the municipal corporation or county in which
the dwelling unit is located as of the date of the notice.
(10) A description of the qualifications of the person who
will drill, reopen, convert, or plug back the well, including a
description of the drilling procedures and safety procedures that
will be used and if those procedures are consistent with the best
standards and practices that are recognized by the oil and gas
industry. The description also shall include an explanation of the
person's experience concerning oil and gas well operations, the
person's safety record for such operations, and information
concerning the condition and maintenance of the person's equipment
that will be used.
(11) A plan for restoration of the land surface disturbed
by
drilling operations. The plan shall provide for compliance
with
the restoration requirements of division (A) of section
1509.072
of the Revised Code and any rules adopted by the chief
pertaining
to that restoration.
(11)(12) A description by name or number of the county,
township,
and municipal corporation roads, streets, and highways
that the
applicant anticipates will be used for access to and
egress from
the well site;
(12)(13) Such other relevant information as the chief
prescribes
by rule.
Each application shall be accompanied by a map, on a scale
not smaller than four hundred feet to the inch, prepared by an
Ohio registered surveyor, showing the location of the well and
containing such other data as may be prescribed by the chief. If
the well is or is to be located within the excavations and
workings of a mine, the map also shall include the location of
the
mine, the name of the mine, and the name, address, and telephone
number 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(1) Not later than five days after receipt of
an application and the applicable fee, the chief shall provide
written notification that the application has been filed to the
director of environmental protection, the fire chief of the fire
department within whose jurisdiction the well that is the subject
of the application will be or is located, and the local inspector
within whose jurisdiction the well that is the subject of the
application will be or is located. The notice shall be sent
electronically or by regular mail and shall be posted on the
division of mineral resources management's web site. In addition,
the chief shall schedule a date and a time that is mutually
acceptable to all of the persons that the chief has so notified
for an inspection of the site that is the subject of the
application for purposes of division (C)(2) of this section.
(2) The chief shall maintain a database on the division of
mineral resources management's web site that is accessible to and
searchable by the public. The database shall contain all of the
following:
(a) A listing of all wells that are being drilled and of all
wells that are proposed to be drilled in this state;
(b) The names and contact information of all permit holders
and applicants for permits under this chapter;
(c) The location of each well or proposed well in this state;
(d) The information that is required by divisions (A)(1),
(4), (5), (8), and (12) of this section for each permit
application;
(e) The map that is required by division (A) of this section
for each permit application;
(f) Any other information that the chief requires.
(C) The chief shall not
issue a permit for at least ten days
after the date of filing of
the application for the permit unless,
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 Upon receipt of an application and all accompanying
information that is required by this section, but before
determining whether to approve an application, approve an
application with modifications, or deny an application, the chief
shall do all of the following:
(1) Review the application for compliance with division (A)
of this section and rules adopted pursuant to it. If the chief
finds any errors or omissions in an application, the chief
immediately shall notify the applicant of the errors and
omissions. Not later than thirty days after receipt of such a
notice, an applicant shall correct the errors and omissions. If
the applicant does not correct all of the errors and omissions
within thirty days after receipt of the notice, the chief shall
deny the application.
(2) Conduct an inspection of the surface location of the
proposed well or well together with an inspector from the
environmental protection agency, the fire chief of the fire
department within whose jurisdiction the well that is the subject
of the application will be or is located, and the local inspector
within whose jurisdiction the well that is the subject of the
application will be or is located to determine if the location and
operation will comply with state and federal environmental laws,
applicable fire codes, and local zoning, health, and safety
requirements. Any person participating in such an inspection may
submit a written objection to the chief opposing the issuance of a
permit to the applicant. If the chief receives a written objection
prior to approving the application or approving the application
with modifications, the chief shall deny the application.
(3) Review the qualifications of the applicant to determine
if the applicant is qualified to perform the proposed operation in
compliance with the requirements established in this chapter and
rules adopted under it. In reviewing the applicant's
qualifications, the chief may consider the applicant's current
violations or unresolved violations of prior orders as grounds for
denying the application. In addition, the chief shall deny an
application if the applicant has been issued a notice of material
and substantial violation or a suspension order and the applicant
continues to be in substantial noncompliance.
(4) Conduct at a minimum one public meeting concerning the
proposed well or well and provide the applicant and any interested
person an opportunity to be heard and to submit comments. The
public meeting shall be conducted in the municipal corporation or
township in which the well or proposed well is or is to be
located.
Upon satisfaction of the requirements established in
divisions (C)(1) to (4) of this section, the chief shall issue an
order approving the permit, approving the permit with
modifications, or denying the permit in accordance with the time
frames established in divisions (D) and (E) of this section. The
chief shall issue an order denying a permit if the chief
determines that the applicant is not qualified to perform the
proposed drilling, reopening, converting, or plugging in
compliance with the requirements established in this chapter and
rules adopted under it. An applicant who is denied a permit by the
chief may appeal the chief's order denying the permit in
accordance with section 1509.36 of the Revised Code.
(D)(1) The chief shall not issue a permit for a well that is
or is to be located in an urbanized area until all of the
requirements established in division (C) of this section are
satisfied or until thirty days after the receipt of the
application for the permit, whichever time period is longer.
However, the chief shall issue a permit after all of the
requirements established in division (C) of this section are
satisfied or within thirty-five days after receipt of the
application
for the permit, whichever time period is longer,
unless the chief
denies the application by order.
(2) The chief shall not issue a permit for a well that is or
is to be located in an area that is not an urbanized area until
all of the requirements established in division (C) of this
section are satisfied or until thirty-five days after the receipt
of
the application for the permit, whichever time period is
longer,
unless a request for an expedited review is filed under
this
section or the chief denies the application by order.
(E) An applicant may file a request with the chief for
expedited
review of a permit application if the well is not
or
is
not to be
located in an urbanized area, in a gas storage reservoir
or, in a reservoir
protective area,
as "reservoir protective area"
is defined in
section 1571.01 of
the Revised Code or, in a natural
area or nature preserve as defined in section 1517.01 of the
Revised Code. If the well is or is to be
located in a coal
bearing
township, the application shall be
accompanied by the
affidavit of
the landowner prescribed in
section 1509.08 of the
Revised Code.
In addition to a complete application for a permit that meets
the
requirements of this section and the permit fee prescribed by
this section, a
request for expedited review shall be accompanied
by a separate nonrefundable
filing
fee of five hundred dollars.
Upon the filing of a request for
expedited review, the chief shall
cause the county engineer of the county in
which the well
is or is
to be located to be notified of the filing of the permit
application and the request for expedited review by telephone or
other means that in the judgment of the chief
will provide
timely
notice of the application and request. The
If all of the
requirements established in division (C) of this section are
satisfied, the chief shall issue a
permit within seven twenty-five
days of the filing of the
request application 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)(F) A well shall be drilled and operated in exact
accordance with the
plans, sworn statements, and other information
submitted in the
approved application and with all terms and
conditions of the permit. A permittee shall notify the chief or a
mineral resources inspector within twenty-four hours of a
violation of any term or condition of the permit that occurs
during drilling operations.
(F) The chief shall issue an order denying a permit if the
chief
finds that there is a substantial risk that the operation
will
result in violations of this chapter or rules adopted
under
it
that will present an imminent danger to
public health
or safety
or
damage to the environment, provided that where the
chief finds
that terms or conditions to the permit can reasonably
be expected
to prevent such violations, the chief shall issue the
permit
subject to those terms or conditions, including, if applicable,
terms and conditions regarding subjects identified in rules
adopted under section 1509.03 of the Revised Code.
(G) Each application for a permit required by section 1509.05
of
the Revised Code, except an application to plug back an
existing well that is required by that section and an application
for a well drilled or
reopened for purposes of section 1509.22 of
the Revised Code,
also
shall be accompanied by a nonrefundable fee
as follows:
(1) Two Five hundred
fifty
dollars for a permit to conduct
activities in a township with a population of fewer than five
thousand;
(2) Five One thousand 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 Two thousand five hundred dollars for
a permit to conduct activities in a township with a population of
ten thousand or more, but fewer than fifteen thousand;
(4) One Three thousand five hundred dollars for a permit to
conduct activities in either of the following:
(a) A township with a population of fifteen thousand or more;
(b) A municipal corporation regardless of population.
For purposes of calculating fee amounts, populations shall be
determined using the most recent federal decennial census.
Each application for the revision or reissuance of a permit
shall be accompanied by a nonrefundable fee of two hundred fifty
dollars. Each application for the reissuance of a permit shall be
accompanied by a nonrefundable fee of five hundred 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 If the chief
finds that a permittee is drilling or conducting other operations
in violation of a permit, the requirements established in this
chapter, or rules adopted under it and there is substantial risk
that the drilling or operations likely will result in danger to
the health or safety of the public or damage to the environment,
the chief shall issue an order to the permittee to cease or
correct the violation immediately. If the permittee does not cease
or correct the violation and appears to continue the violation,
the chief shall issue an order that revokes the permittee's permit
and that requires the permittee to cease drilling or other
operations immediately.
Sec. 1509.061. An owner of a well who has been issued a
permit under section 1509.06 of the Revised Code A permittee may
submit to
the chief of the division of mineral resources
management, on a form prescribed by
the chief, a request to revise
an existing tract upon which
exists a producing or idle the terms
and conditions of a permit for the drilling of a well. The chief
shall adopt, and may
amend and rescind, rules under section
1509.03 of the Revised
Code that are necessary for the
administration of this section.
The rules at least shall stipulate
the information to be included
on the request form and shall
establish a fee to be paid by the
person submitting the request,
which fee shall not exceed two
hundred fifty dollars
the amount
of the applicable fee established in division (G) of
section
1509.06 of the Revised Code.
The chief shall not approve a request submitted under this
section unless it if approving the request would result in a
violation of this chapter or
rules adopted under it, including
provisions establishing spacing
or minimum acreage requirements.
Sec. 1509.062. (A)(1) The permittee 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 of natural gas or crude oil
in an amount that is determined by the chief, the chief may
require the permittee of the well to submit an application for
temporary inactive well status under this section for the well.
(B) In order for the permittee of a well to submit an
application
for temporary inactive well status for the well under
this
division, the permittee 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 permittee's name and address and, if the permittee
is a
corporation, the name and address of the corporation's
statutory
agent;
(2) The signature of the permittee or of the permittee'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 permittee
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 permittee 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 permittee 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 permittee 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 permittee of
the
well of the chief's approval.
(E) The chief may require a permittee to provide a surety
bond
in an amount not to exceed ten thousand dollars for each of
the
permittee's wells that has been approved by the chief for
temporary
inactive well status.
(F) 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.
(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 permittee 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 permittee 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 (A) A permittee 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 five million dollars bodily injury
coverage and
three hundred thousand ten million 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 permittee's wells in this state. The owner permittee shall
maintain that
coverage until all the owner's permittee's wells are
plugged and
abandoned as required by law and maintained as
required by this chapter and rules adopted under it or are
transferred to a permittee who has obtained insurance as required
by this section and who is not under a notice of material and
substantial violation or under a suspension order. The
owner
permittee shall provide proof of liability
insurance coverage to
the chief
of the division of mineral resources management upon
request. Upon failure of the
owner permittee to provide that proof
when
requested, the chief may order the suspension of
any
outstanding permits and operations of the owner permittee until
the owner
permittee provides proof of the required insurance
coverage.
(B) Except as otherwise provided in this section, an owner a
permittee of any
well that is not an exempt Mississippian well or
an exempt domestic well, before being issued a permit under
section 1509.06 of the Revised Code, shall execute and file with
the division of mineral resources management a
surety bond in an
amount equal to the estimated cost to plug the well and restore
the surface location of the well and 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 permittee of a well that is not an exempt
Mississippian well or an exempt domestic well 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 (C) A permittee of an
exempt Mississippian well or an exempt domestic well shall
demonstrate financial responsibility to the chief by providing one
of the following:
(1) Proof of deposits in a bank organized or transacting
business in this state or in a savings and loan association as
defined in section 1151.01 of the Revised Code in an amount that
is equal to or greater than the amount of the surety bond that is
otherwise required to be executed and filed with the chief by this
section;
(2) Negotiable certificates of deposit or irrevocable letters
of credit issued by such a bank or savings and loan association
having a cash value that is equal to or greater than the amount of
the surety bond that is otherwise required to be executed and
filed with the chief by this section.
If the permittee of an
exempt Mississippian well or an
exempt domestic well cannot
demonstrate financial responsibility
to the satisfaction of the
chief, the chief shall order that the
owner
permittee to execute and
file a surety 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
permittee that are
specified
in the order and for which no surety
bond is filed or
cash,
certificates of deposit, or letters of
credit are deposited
shall be plugged.
No owner permittee shall
fail or
refuse to
plug such a well. Each day on which such a well
remains unplugged
thereafter constitutes a separate offense, and
the chief shall
assess a fine against the permittee in an amount
that is not less
than one thousand dollars per offense as
determined by the chief.
(D) A permittee shall file updates of any financial documents
that are required by this section in accordance with a schedule
established by rule of the chief.
(E) The surety bond provided for in this section shall be
executed by a surety company authorized to do business in this
state that is in good standing.
(F) 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.
(G) 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.
Sec. 1509.071. (A) When the chief of the division of
mineral
resources
management finds that an owner a permittee 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 a permittee,
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, at its 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. The cost of plugging and abandonment of
the well includes the estimated cost of maintaining the well in a
safe condition that complies with rules governing plugging.
(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 shall be
expended by the
chief
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 or for plugging and
maintaining 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 immediate health or safety
risks at an idle and
orphaned
well or a well for which the person responsible for
the
well 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.
(C)(1) Upon determining that
the owner permittee 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 both 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 permittee of the oil or gas lease under
which the well
was drilled
or the identity of each person owning
an interest in
and, if different from the permittee, the present
holder of 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, identified under
division (C)(1)(a) of this section 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 fines, penalties, or
forfeiture
of the equipment to this state.
(2) If none of the persons described in division
(C)(1)(c)(a)
of
this section plugs the well within sixty days after the
mailing
of
the notice required by that division (C)(1)(b) of this
section, 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. However, expenditures shall not be made to purchase
property or to remove a dwelling in order to access a 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, each person identified under
division (C)(1)(a) of this section; if different from the persons
identified under that division, 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. In addition, the chief shall notify the director of
environmental protection of those activities in order to obtain
the director's evaluation of any impact to the environment from
the activities and the director's determination of compliance with
state environmental laws.
(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 sixty 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
(D)(2) of this section.
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. However, expenditures
shall not be authorized to purchase real property or to remove a
dwelling. 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 a permittee 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 and providing to the chief sufficient information
to
demonstrate the landowner's or owner's permittee'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 permittee 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 permittee 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 or permittee;
(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
responsible person 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
fund.
Sec. 1509.072. No oil or gas well owner permittee or agent
of an oil
or
gas well owner permittee shall fail to restore the
land surface within
the area
disturbed in siting, drilling,
completing, and producing, plugging, and abandoning
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 one month after the
date upon which the drilling of a well is completed in all other
areas, the owner permittee or the
owner's permittee's agent, in
accordance with the
restoration
plan filed under
division
(A)(10)(11) of section 1509.06
of the Revised Code,
shall fill
with clean 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 months
In addition, the permittee
or the permittee's agent shall remove all cuttings containing
brine and all other waste substances and dispose of the cuttings
and other waste substances in an appropriate facility licensed
under Chapter 3734. of the Revised Code or dispose of such
cuttings and waste substances in accordance with all applicable
statutes and rules governing environmental protection. Unless the
chief of the
division of mineral resources management approves a
longer time
period, within one month after the date upon which
the surface
drilling of a well
is commenced in an urbanized area
and within
two months after the date upon which the surface
drilling of a
well is commenced in all other areas, the owner
permittee or the owner's permittee's
agent shall begin to 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
applicable restoration period.
(B) Within six months thirty days after a
well that has
produced oil
or gas is plugged,
or after the plugging of a dry
hole, unless the chief approves a
longer time period not to
exceed six months, the owner
permittee or the owner's permittee'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 fourteen days
after removal of such structures, supplies, equipment, oil, salt
water, and debris and filling of such excavations, the
owner
permittee or
the owner's permittee'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 permittee shall not 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
unless the request shall be is signed by the
surface owner to certify that the
approval of the surface owner of
the release sought will undertake all of the responsibilities of
the permittee to perform any or all of the restoration
requirements established in this section. 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 only if
the surface owner executes and files a surety bond with the
division of mineral resources management in an amount equal to the
estimated cost to plug the well and restore the site in accordance
with the requirements established in this chapter and rules
adopted under it.
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 a permittee
or an
owner's
a permittee'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
permittee or the
owner's permittee'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) In addition to the requirements
established in section 1509.04 of the Revised Code, the chief of
the division of mineral resources management shall coordinate with
local inspectors in the enforcement of this chapter and rules
adopted under it. A local inspector may inspect an oil or gas well
and the storage facilities of a well at any time in order to
ensure compliance with local zoning or building codes. In
addition, the chief of the fire department within whose
jurisdiction an oil or gas well is located may inspect the well to
ensure compliance with the fire code of the municipal corporation
or township, as applicable.
(B) If a local inspector or chief of an applicable fire
department discovers a violation of a permit issued under this
chapter, the inspector or chief shall notify the chief of the
division of mineral resources management or a mineral resources
inspector within twenty-four hours of the discovery.
(C) A permittee annually shall pay to a municipal corporation
or township, as applicable, a fee of five hundred dollars for each
of the permittee's wells that is located within the territorial
boundaries of the municipal corporation or township. The fee shall
be deposited in a special fund that is established by the
municipal corporation or township. The money in the fund shall be
used by the municipal corporation or township to pay the costs of
training police, fire, and medical personnel to respond to
well-related emergencies in the municipal corporation or township,
to pay the costs of periodic inspections by a local inspector to
ensure proper maintenance of all well-related facilities, and to
pay the costs of inspections by local inspectors of the site where
the surface facilities of a well are located to ensure compliance
with local zoning or building codes.
Sec. 1509.074. A person that is issued a permit
to drill a
well under this chapter shall do all of the following:
(A) Prior to commencing drilling, meet with the chief of the
fire department within whose jurisdiction the well is located to
explain the drilling operation, including any
potential problems
or concerns and solutions to those problems or
concerns, and to
provide a schedule of the drilling;
(B) Grant a
right of entry to an authorized representative
of the fire
department within whose jurisdiction the well is
located for the purpose of formulating emergency operating
procedures;
(C) Ensure the availability of a gas well technician who has
knowledge of the mitigation of hazardous or emergency conditions
at a well location. The permittee shall ensure that a gas well
technician responds to a hazardous or emergency condition at the
well within thirty minutes of the permittee's receipt of
notification
that a hazardous or emergency condition exists at
the well
location. In addition, the permittee shall provide to
each technician
the necessary tools and testing equipment that
normally are
required to determine the location and nature of a
hazardous or
emergency condition, to complete repairs, or to shut
off a well if
necessary.
(D) Develop a monthly and an annual safety inspection
checklist that shall be used for each monthly and annual
inspection of each well head and tank battery;
(E) Inspect monthly and annually each well head and tank
battery using the applicable checklist that is developed under
division (D) of this section and submit a copy of the checklist
monthly or annually, as applicable, to the chief of the fire
department within whose jurisdiction the well is located;
(F) Provide to the chief of the fire department within whose
jurisdiction the well is located all information
concerning
inspections, investigations, and repairs that are
performed at
the well location after the occurrence of a hazardous
or
emergency condition at the well.
Sec. 1509.075. (A) A person that is issued a permit to drill
a well under this chapter, prior to commencing drilling
operations, shall execute and file with the legislative authority
of a municipal corporation or the board of township trustees of a
township, as applicable, a surety bond for each of the permittee's
wells that is located within the territorial boundaries of the
municipal corporation or township. The surety bond shall be
conditioned on compliance with the terms and conditions of the
permit and with all of the applicable laws and rules enacted or
adopted by the municipal corporation or township and shall provide
coverage for damage to municipal corporation or township roads
caused by vehicles associated with the drilling of the well, the
cleanup of mud and drilling refuse from public property, and the
cost of water testing conducted within six months of the drilling
of the well. The amount of the surety bond shall be established by
the legislative authority of the municipal corporation or the
board
of township trustees of the township, as applicable, but
shall not
be less than one hundred per cent of the estimated cost
of the
screening and landscaping requirements established in this
chapter
and rules adopted under it.
In lieu of a surety bond, the permittee may deposit with the
legislative authority of the municipal corporation or the board of
township trustees of the township cash in an amount equal to the
surety bond established under this section or certificates of
deposit having a cash value equal to or greater than that amount.
(B) Upon completion of the installation of the well, the
permittee shall notify the applicable local inspector. Not later
than five days after receipt of the notification, the local
inspector shall inspect the surface location of the well and
determine if the installation of the well complies with the terms
and conditions of the permit and with laws and rules of the
applicable municipal corporation or township. If the inspector
determines that the well complies with those terms and conditions
and laws and rules, the inspector shall notify the permittee and
the legislative authority of the municipal corporation or the
board of township trustees of the township, as applicable, and the
legislative authority or board shall release the surety bond or
other financial security to the permittee.
If the inspector determines that the well does not comply
with the terms and conditions of the permit or with laws or rules
of the applicable municipal corporation or township, the inspector
shall notify the permittee and the applicable legislative
authority or board and specifically describe the reasons for
noncompliance. The permittee may take actions that are necessary
to bring the installation of the well into compliance. Following
the completion of those actions, the permittee shall notify the
applicable local inspector who shall conduct a second inspection
of the surface location of the well. If the inspector determines
that the well complies with the terms and conditions of the permit
and with laws and rules of the applicable municipal corporation or
township, the inspector shall notify the permittee and the
legislative authority of the municipal corporation or the board of
township trustees of the township, as applicable, and the
legislative authority or board shall release the surety bond or
other financial security to the permittee.
If the inspector again determines that the well does not
comply with the terms and conditions of the permit or with laws or
rules of the applicable municipal corporation or township, the
inspector shall notify the permittee and the applicable
legislative authority or board. The legislative authority or board
shall not release the surety bond or other financial security to
the permittee.
Sec. 1509.076. On and after the effective date of this
section, a person that is issued a permit to drill a well under
this chapter shall do all of the following:
(A) Post a sign prior to the commencement of the drilling of
a well. The sign shall be permanent and weatherproof and
maintained at all times. In addition, the sign shall consist of
letters and numerals that are at least five inches in height and
shall contain all of the following:
(1) The number and name of the road that will be used to
access the well site;
(2) The number of the well and of the permit for the well;
(3) The name, address, and telephone number of the permittee
or a representative of the permittee who may be contacted and
available in the event of an emergency.
(B) Implement a monitoring system at a new or existing oil or
gas well for the detection of a leak of natural gas, hydrogen
sulfide, or radon, a spill of a toxic chemical, or an explosion.
The monitoring system shall have an audible alarm to warn the
workers at the surface location of the well and the public of such
a leak, spill, or explosion. The monitoring system also shall
notify the fire department within whose jurisdiction the well will
be or is located of such a leak, spill, or explosion. In addition,
the monitoring system and alarm shall be operable during power
failures and during the drilling of and production from a well
until the well is abandoned and plugged.
(C) Conduct all operations in a manner that eliminates, as
far as practical, dust, noise, vibrations, and noxious odors. In
addition, a permittee shall not allow the noise from the drilling
operation to exceed eighty decibels if the well is located within
five hundred feet of an occupied dwelling, a multiple unit
dwelling with at least three units, a hospital as defined in
section 3727.01 of the Revised Code, or a home as defined in
section 3721.01 of the Revised Code.
(D) Use only fluid during the drilling of a well that is
located in an area that is zoned residential or is otherwise a
residential area in order to minimize flaring. In addition, if a
permittee drills the well at night in an area that is zoned
residential or is otherwise a residential area, the permittee
shall use only the amount of light that is necessary for
conducting a safe operation.
(E) Operate a drilling rig between the hours of seven-thirty
a.m. and seven p.m. unless all owners of property that is located
within one thousand feet of the location of the well consent in
writing to the drilling of the well during other hours;
(F) Detonate explosives between the hours of seven-thirty
a.m. and seven p.m. unless the chief of the fire department within
whose jurisdiction the well is located authorizes the detonation
of explosives during other hours;
(G) Store all flammable and combustible liquids from a
producing well in underground tanks;
(H) Remove all liquids from a well tank using a tank truck;
(I) Keep the areas within fifteen feet of all permanent
production facilities mowed and cleared of combustible materials.
In addition, those areas shall be enclosed with fencing that is
not less than six feet in height.
(J) Paint shut-off valves in a conspicuous color for ease of
identification in emergencies;
(K) Install latches on well head and tank battery enclosures
to hold the enclosures open;
(L) Lock all gates, storage tank manholes, discharge valves,
fill valves, shut-off valves, and fence gates. All locks at a well
shall use a master key that is marked with the well number. In
addition, a permittee shall provide a copy of the master key for
each well to a local inspector, the chief of the fire department
within whose jurisdiction the well is located, and the applicable
chief of police or sheriff.
(M) Bury all new oil and gas lines a minimum depth of thirty
inches. In addition, a permittee shall indicate the location of
those oil and gas lines on a map and provide a copy of the map to
the local inspector and to the chief of the fire department within
whose jurisdiction the lines are located.
(N) Equip each permanent production structure, including, but
not limited to, a separator unit and a storage tank, with properly
grounded lightning rods;
(O) Provide for a drilling-in control gate in the drilling of
a well or in the cleaning of an abandoned well in preparation for
the plugging of the abandoned well. The drilling-in control gate
shall be constructed in a manner that will cut off the flow of gas
to the top of the well and that will allow the gate to be operated
at a remote location from the well.
(P) Vent a plugged well with a vent pipe that is not less
than two inches in diameter and of a height that is determined by
the chief of the division of mineral resources management in
consultation with the applicable fire chief and local inspector.
In addition, the vent pipe shall have a drilled and tapped
inspection hold with a hole plug that is not less than one-half
inch in diameter and that is not more than four feet above grade.
(Q) Locate a new well head, tank battery, and storage tank in
accordance with all of the following:
(1) At least one thousand feet from a single or multiple
family dwelling, hospital as defined in section 3727.01 of the
Revised Code, clinic, home as defined in section 3721.01 of the
Revised Code, school, day-care, playground, auditorium, theater,
library, shopping center, place of worship, or any other building
used as a place for public assembly;
(2) At least two thousand feet from a lake,
stream, river,
or other large body of water;
(3) At least one thousand feet from a public right-of-way.
(R) Paint a storage tank and other equipment that is located
above ground shades of dark green in order to minimize the visual
obtrusiveness of the equipment. In addition, a permittee shall
identify the contents of a storage tank using eight-inch letters
on the outside of the tank in a color that is distinct from the
tank color.
(S) Use a storage tank if a well is located on a steep slope
or within a floodplain;
(T) Anchor a storage tank in a permanent manner in order to
prevent movement of the tank;
(U) Use only a water-tight storage tank;
(V) Use only an electrically powered pump jack;
(W) Permanently mark all sales lines from a tank battery at
intervals of not more than two hundred feet;
(X) Install a brine tank not higher than eight feet above
grade. A permittee may recess a brine tank below grade in order to
comply with this division.
(Y) Maintain all equipment that is or is to be used at a well
and all equipment at the surface location of a well in good
operating condition according to best management practices that
are recognized by the oil and gas industry;
(Z) Provide access roads to the surface location of a well in
order for emergency responders to be able to access the location
in an emergency. The roads used for ingress and egress to the
surface location of a well shall be made of concrete or asphalt
and shall be of sufficient width to enable emergency vehicles to
turn around. In addition, a permittee shall maintain the roads at
all times, including keeping the roads free of snow. If an access
road crosses a drainage channel, a permittee shall install
culverts, which shall be of a size that is appropriate for the
drainage area and shall be approved by the municipal engineer or
county engineer, as applicable, prior to the installation of the
culverts.
(AA) Locate a truck loading area or parking area in a
location that is not on an access road to the surface location of
a well and that is not on a public right-of-way;
(BB) Remove immediately from a municipal or township road all
debris resulting from the drilling of or production from a well.
Sec. 1509.08. Upon receipt of an application for a permit
required by section 1509.05 of the Revised Code, or upon receipt
of an application for a permit to plug and abandon under section
1509.13 of the Revised Code, the chief of the division of mineral
resources
management shall determine whether the well
is
or is to
be located in a
coal bearing township.
Whether or not the well is or is to be located in a coal
bearing township, the chief, by order, may refuse to issue a
permit required by section 1509.05 of the Revised Code to any
applicant who at the time of applying for the permit is in
material or and substantial violation of this chapter or rules
adopted
or orders issued under it. The chief shall
refuse to
issue
a
permit to any applicant who at the time of applying for
the
permit
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. No
applicant shall
attempt to circumvent this provision
by applying
for a permit
under a different name or business
organization name,
by
transferring responsibility to another
person or entity, by
abandoning the well or lease, or by any
other similar act.
If the well is not or is not to be located in a coal
bearing
township, or if it is to be located in a coal bearing
township,
but the landowner submits an affidavit
attesting to ownership of
the property in fee simple, including the
coal, and has no
objection to the well, the chief shall may issue the permit in
accordance with this chapter and rules adopted under it.
If the application to drill, reopen, or convert concerns a
well that is or is to be located in a coal bearing
township, the
chief immediately
shall notify the owner or lessee of any affected
mine that the
application has
been filed and send to the owner or
lessee two copies of the map
accompanying the application setting
forth the location of the
well. The chief also immediately shall
send notice and a copy of the application to all of the following:
the clerk of the legislative authority of the municipal
corporation or the clerk of the board of the township trustees of
the township, as applicable, in which the well is or is to be
located; the fire chief of the fire department within whose
jurisdiction the well is or is to be located; and the director of
environmental protection. The notice sent to the applicable fire
chief shall request that the fire chief determine if there would
be adverse effects from the well or proposed well to the health
and safety of persons residing in the municipal corporation or
township, as applicable. The notice sent to the director shall
request that the director determine if the well or proposed well
would violate applicable air, soil, or water pollution control
standards.
If the owner or lessee of the mine, the applicable fire
chief, or the director objects to the location of the well
or
objects to any location within fifty feet of the original
location
as a possible site for relocation of the well, the owner
or
lessee, the applicable fire chief, or the director, not later than
twenty-two days after receipt of the notice of the filing of the
application,
shall notify the chief
of the objection, giving the
reasons for
the objection
and, if applicable, indicating on a copy
of the map
the particular location or
locations within fifty
feet
of the
original location to which the owner or lessee
objects as a
site
for possible relocation of the well, within six days after
the
receipt of the notice. If
If either the applicable fire chief or the director objects
to the application, the chief shall not approve the application
until the fire chief sends a letter to the chief that withdraws
the fire chief's objections or the director issues an opinion that
recommends that the application be approved. The objection to the
application by the applicable fire chief or the director shall
stay the application pending the withdrawal of the objection.
If the chief receives no objections from
the owner
or lessee
of the mine
within ten days after the receipt
of the notice by the
owner or
lessee, or if in the opinion of the
chief the objections
offered by
the owner or
lessee are not
sufficiently
well founded,
the applicable fire chief, or the director, the chief immediately
shall notify
the
owner or lessee of those findings may approve the
application and issue the permit in accordance with this chapter
and rules adopted under it. The If the chief denies the
application, the owner or lessee
of the mine may appeal
the
decision of the chief
to the
reclamation commission under
section
1513.13 of the
Revised
Code. The appeal shall be filed
within
fifteen days,
notwithstanding provisions in divisions
(A)(1) of
section 1513.13
of the Revised Code, to the contrary,
from
the
date on which the
owner or lessee receives the notice.
If
the
appeal is not filed
within that time, the chief immediately
shall
approve the
application and issue the permit if the
provisions of
this chapter
pertaining to the issuance of such a
permit have been
complied
with.
If the chief receives an
objection
from the owner or lessee
of the mine as to the location of the
well within ten days after
receipt of the notice by the owner or
lessee, and if in the
opinion of the chief the objection is well
founded, the chief
shall disapprove the application and
request the owner or lessee
to suggest a new
proposed location for
the well, provided that the
suggested new location
shall not be a
location within fifty feet
of the original
location to which the
owner or lessee has objected
as a site for
possible relocation of
the well if the chief has
determined that
the objection is well
founded. The chief
immediately shall notify
the applicant
for the
permit of
the
disapproval and any suggestion as to a new proposed location
for
the well. The
applicant may withdraw the application or amend
the
application
to drill the well at the location suggested by the
chief, or the applicant
may
appeal the disapproval of the
application by the chief to
the
reclamation
commission.
If the chief receives no
objection
from the owner or lessee
of a mine as to the location of the
well applicable fire chief or
the director or an objection from the applicable fire chief or the
director is withdrawn, but does receive the chief receives an
objection from the owner or lessee of an affected mine as
to one
or more locations
within fifty feet of the original
location as
possible sites for
relocation of the well within ten
days after
receipt of the notice
by the owner or lessee, and if
in the
opinion of the chief the
objection is well founded the location of
the well,
the chief nevertheless shall not approve
the application
and issue a permit if the
provisions of this
chapter
pertaining to
the issuance of such a permit have been
complied
with,
incorporating as a term or condition of the permit
that the
applicant is prohibited from commencing drilling at any
location
within fifty feet of the original location that has been
disapproved by the chief. The
applicant may appeal to the
reclamation commission the terms and conditions
of
the permit
prohibiting the commencement of drilling at any
such
location
disapproved by the chief unless the owner or lessee of the
affected mine withdraws the objection. The chief immediately shall
notify the applicant of the objection. Not later than sixty days
after receipt of the notification, the applicant shall amend or
withdraw the application. The chief shall not approve an
application or amended application unless the objection is
withdrawn.
Any such appeal shall be filed within fifteen days,
notwithstanding provisions in division (A)(1) of section 1513.13
of the Revised Code to the contrary, from the
date the applicant
receives notice of the disapproval of the
application, any other
location within fifty feet of the original
location, or terms or
conditions of the permit, or the owner or
lessee receives notice
of the chief's decision. No approval or
disapproval of an
application shall be delayed by the chief for more than
fifteen
days from the
date
of sending the notice of the application to the
mine owner or lessee
as required by this section.
All appeals provided for in this section shall be treated
as
expedited appeals. The
reclamation
commission shall hear any
such
appeal in accordance with section
1513.13 of the Revised
Code and
issue
a
decision
within thirty days of the filing of the
notice of
appeal.
The chief shall not issue a
permit to drill a new well or
reopen a well that is or is
to be located within three hundred
one
thousand feet of any opening of any mine used
as a means of
ingress,
egress, or ventilation for persons
employed in the mine,
nor
within one hundred thousand feet of any
building or
inflammable structure
connected with the mine and
actually used as
a part of the
operating equipment of the mine, unless the
chief
determines that
life or property
will
not be endangered by
drilling and operating
the well in that
location.
Sec. 1509.081. (A) If a proposed well will be drilled within
a one-mile radius of an existing well that was drilled into or
through the same geologic formation in which the proposed well
will be drilled and if hydrogen sulfide was found in the drilling
of the existing well, the permittee shall install monitoring
equipment in accordance with the American petroleum institute
publication API RP49, "Recommended Practices for Safe Drilling of
Wells Containing Hydrogen Sulfide," to detect the presence of
hydrogen sulfide during the drilling of the proposed well.
(B) If during the drilling of a well a permittee discovers,
detects, or encounters hydrogen sulfide with a concentration of
twenty parts per million or greater, the permittee shall do all of
the following:
(1) Drill the well in accordance with the American petroleum
institute publication API RP49, "Recommended Practices for Safe
Drilling of Wells Containing Hydrogen Sulfide";
(2) Notify the division of mineral resources management of
the location of the well and the concentration of hydrogen
sulfide;
(3) Operate the well in a manner that presents no danger to
the health and safety of the public and the environment.
(C) The division shall maintain a database that contains the
information required in division (B)(2) of this section. The
division shall make the database available to all permittees.
Sec. 1509.09. A well may be drilled under a permit only at
the location designated on the map required in section 1509.06 of
the Revised Code. The Except as provided in this section, the
location of a well may shall not be changed after
the issuance of
a permit only with the approval of the chief of
the division of
mineral resources
management unless the
permit holder requests the
issuance of an emergency drilling
permit under this section due to
a lost hole under such
circumstances that completion of the well
is not feasible at the
original location. If a permit holder
permittee requests a change of
location, the permit holder
permittee shall return the original permit
and file an amended
application with a new map indicating the proposed new location.
Drilling shall not be commenced at a new location until the
original permit bearing a notation of approval by the chief is
posted at the well site. However, a permit holder may commence
drilling at a new location without first receiving the prior
approval required by this section, if all of the following
conditions are met:
(A) Within one working day after spudding the new well,
the
permit holder files a request for an emergency drilling
permit and
submits to the chief an application for a permit that
meets the
requirements of section 1509.06 of the Revised Code,
including the
permit fee required by that section, with an
amended map showing
the new location;
(B) A mineral resources inspector is
present before
spudding
operations are commenced at the location;
(C) The original well is plugged prior to the skidding of
the
drilling rig to the new location, and the plugging is
witnessed or
verified by 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 unless the
chief or the
chief's
authorized representative temporarily waives the requirement, but
in any event the original well shall be plugged before the
drilling rig is
moved from the location;
(D) The new location is within fifty feet of the original
location unless, upon request of the permit holder, the chief
agrees to a new
location farther than fifty feet from
the original
location;
(E) The new location meets all the distance and spacing
requirements prescribed by rules adopted under sections 1509.23
and 1509.24 of the Revised Code;
(F) If the well is located in a coal bearing township, use
of
the new well location has not been disapproved by the chief and
has not been
prohibited as a
term or
condition of the permit under
section 1509.08 of the Revised
Code.
If the chief approves the change of
location,
the chief shall
issue an emergency permit within two working
days after the filing
of the request for the emergency permit. If the chief
disapproves
the change of location, the chief shall, by
order, deny the
request and may issue an appropriate enforcement order under
section 1509.03 of the Revised Code.
Sec. 1509.10. (A) Any person permittee 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
permittee 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 permittee may redact from the copy of each
invoice that is
required
to be included by 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
permittee
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 permittee 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 permittee shall file with
the
division a supplemental well completion record that includes
all
of the information required by 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 permittee 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
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.
A permittee 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 permittee 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 permittee shall notify the
chief of the
division
of mineral
resources
management within twenty-four hours
of the
discovery,
such owner and the permittee shall
immediately repair
such the tubing or
casing,
correct the construction
inadequacies, or plug and
abandon such the
well.
Unless written permission temporary inactive well status is
obtained under section 1509.062 of the Revised Code or another
option 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, 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.
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 permittee 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 permittee;
(B)(2) The signature of the owner permittee or the owner's
permittee'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) A plan for plugging the well that complies with the
rules
adopted under section 1509.15 of the Revised Code;
(8) 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 permittee 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 permittee or
the permittee'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 permittee of
the a well 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 permittees or
agents, and,
if 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
permittee of the well
shall give written notice
to the owner or lessee of
that mine, of
the
well owner's
permittee's intention to abandon the well and
of the time
when
the well owner permittee 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 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) Upon the completion of the proper plugging of a well, the
mineral resources inspector that was present for the plugging
shall notify the chief that the well was plugged in accordance
with the requirements established in this chapter and rules
adopted under it. Upon receipt of the notification, the chief
shall issue an order that releases the permittee or surety from
the obligations under the bond that is required by section 1509.07
of the Revised Code.
(D) 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 (A) No person who abandons shall abandon a
well, when without plugging it in accordance with this chapter and
rules adopted under it. Each day that a well is abandoned and not
plugged is a separate offense.
(B) When written
permission has been granted by the chief of
the division of mineral resources
management to abandon and
plug
the a well without an inspector being present to supervise
the
plugging, the permittee or the permittee's agent 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)(1) The date of abandonment;
(B)(2) The name of the owner or operator permittee of the
well at the
time of abandonment and the post-office address of the
owner or
operator permittee;
(C)(3) 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)(4) The date of the permit to drill;
(E)(5) The date when drilled;
(F)(6) The depth of the well;
(G)(7) The depth of the top of the formation to which the
well was drilled;
(H)(8) The depth of each seam of coal drilled through, if
known;
(I)(9) 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
permittee,
or the agent of the owner or operator permittee, 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. 1509.15. When any well is to be abandoned, it shall
first be plugged in
accordance with a method of plugging adopted
by rule by the chief of the
division of mineral resources
management. The rule shall require the use of best management
practices and standards that are recognized by the oil and gas
industry to attain a durable seal on a plugged well that will
protect the health and safety of the public and that will prevent
damage to the environment. The abandonment
report shall
show the
manner in which the well was plugged.
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 using
materials that comply with standards that are recognized by the
oil and gas industry for the type and
depth of the well and the
anticipated fluid pressures that are
associated with the well. In
addition, a well shall be constructed
using sufficient steel or
conductor casing in a manner that
supports unconsolidated
sediments, that protects and isolates all
underground sources of
drinking water as defined by the Safe
Drinking Water Act, and
that provides a base for a blowout
preventer or other well
control equipment that is necessary to
control formation
pressures and fluids during the drilling of the
well and other
operations to complete the well. Using steel
production casing
with sufficient cement, an oil and gas reservoir
shall be
isolated during well stimulation and during the
productive life
of the well. In addition, sour gas zones and gas
bearing zones
that have sufficient pressure and volume to
over-pressurize the
surface production casing annulus shall be
isolated using
approved cementing, casing, and well construction
practices.
However, isolating an oil and gas reservoir shall not
exclude
open-hole completion. A well shall not be perforated for
purposes
of well stimulation in any zone that is located around
casing
that protects underground sources of drinking water without
written authorization from the chief. 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) A permittee or a permittee's authorized representative
shall
notify a mineral resources inspector each time that the
permittee 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, a permittee
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 that was constructed prior to
the effective date of this amendment 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 A permittee 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 permittee 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 permittee and the attempts
have
failed. If the chief orders the immediate suspension of such
drilling or reopening, the chief shall provide the permittee
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 permittee 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 permittee, determines that the
activities do
not present such a threat, the chief shall revoke
the suspension
order.
Notwithstanding any other provision of this chapter, a
permittee
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. (A) A permittee 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 five days
before commencing the stimulation of the well, the permittee shall
submit to the chief of the division of mineral resources
management a comprehensive list of each substance and the
concentration of the substance that will be used in the
stimulation of the well. A permittee who elects to stimulate a
well shall comply with the rules adopted under division (C) of
section 1509.22 of the Revised Code. In addition, such a permittee
shall not use hydraulic fracturing fluid that is known to pose a
significant risk to human health.
(B)
Not later than twenty-four
hours before
commencing the
stimulation of a well, the permittee
or the permittee'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
permittee shall immediately terminate the
stimulation of the well
and
notify the chief.
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 permittee of
the
well to submit cement evaluation logs, temperature
surveys,
pressure tests, or a combination of such logs, surveys, and tests.
(C) A permittee shall notify the chief or a mineral resources
inspector within twenty-four hours of a violation of any term or
condition of the permit that occurs during hydraulic fracturing.
Sec. 1509.191. (A) If a person who has experienced a
diminution of the person's water supply or whose water supply is
contaminated believes that the diminution or contamination is the
result of the drilling of a well, conversion of a well to a
different purpose, or operation of a well, the person may send
written notification regarding the person's water supply to the
division of mineral resources management and request the division
to conduct an investigation of the person's water supply. Not
later than ten days after the division's receipt of a written
notification, the chief of the division of mineral resources
management or the chief's authorized representative shall
investigate the water supply that is the subject of the
notification. Not later than forty-five days after receipt of the
notification, the chief shall determine whether a diminution of
the water supply or contamination of the water supply, as
applicable, was caused by the drilling, conversion, or operation
of a well. If the chief determines that a diminution or
contamination of the water supply was caused by the drilling,
conversion, or operation of a well, the chief shall order the
permittee who is responsible for the well to provide a temporary
replacement of the water supply for all of the person's intended
uses. The permittee shall provide the temporary replacement of the
water supply until a permanent replacement of the water supply is
fully implemented. If the chief determines that the diminution or
contamination of the water supply was not caused by the drilling,
conversion, or operation of a well, the chief shall issue an order
stating that the diminution or contamination was not caused by a
well and shall send a copy of the order to the person who
submitted the notification under this section.
If the chief cannot conclusively determine that the
diminution or contamination of the water supply was or was not
caused by the drilling, conversion, or operation of a well, the
chief shall issue an order indicating the chief's inability to
make such a determination. The chief also shall send a notice to
the permittee of each well that may have caused the diminution or
contamination stating that division (B) of this section may apply.
(B)(1) If a water supply that is the subject of a
notification submitted under division (A) of this section is
located within one thousand feet from the surface location of a
well and diminution of the water supply or contamination of the
water supply occurred within six months after completion of
drilling or converting the well or after commencement of operation
of the well, as applicable, there is a rebuttable presumption that
the permittee of the well caused the dimunition or contamination
of the well. A permittee may rebut the presumption by proving at
least one of the following:
(a) The dimunition or contamination of the water supply
existed prior to the drilling, conversion, or operation of the
well.
(b) The person who has experienced the dimunition or
contamination of the water supply refused to allow the permittee
of the well access to the water supply to conduct a survey of the
water supply prior to the drilling, conversion, or operation of
the well.
(c) The dimunition or contamination of the water supply was
caused by something other than the drilling, conversion, or
operation of the well.
(2) Not later than ten days after receipt of an order or
notice from the chief under division (A) of this section, a
permittee of a well to which division (B)(1) of this section
applies shall submit all information that the permittee wishes to
submit in order to rebut the presumption. Not later than thirty
days after receipt of all of the information submitted by a
permittee of a well under division (B)(1) of this section or not
later than thirty days after a permittee of a well received such
an order or notice under division (A) of this section, whichever
is earlier, the chief shall determine if the permittee rebutted
the presumption. If the chief determines that the permittee
rebutted the presumption, the chief shall send notice to the
permittee and to the person that submitted the notification under
division (A) of this section indicating the chief's determination
that the presumption was rebutted. If the chief determines that
the permittee failed to rebut the presumption, the chief shall
order the permittee to provide a temporary replacement of water
supply for all of the person's intended uses. The permittee shall
provide the temporary replacement of water supply until a
permanent replacement of the water supply is fully implemented.
(C) The chief shall adopt rules in accordance with Chapter
119. of the Revised Code that are necessary for the administration
of this section. The rules shall establish all of the following:
(1) Requirements governing and procedures for the
certification of laboratories to conduct water surveys for the
purposes of this section;
(2) Requirements governing and procedures for the collection
of water samples for purposes of such a water survey;
(3) Requirements governing and procedures to be used by a
permittee to demonstrate pursuant to division (B)(1)(b) of this
section that the person who claims to have a dimunition or
contamination of a water supply refused to allow the permittee of
the well access to the water supply to conduct a survey prior to
the drilling, conversion, or operation of the well.
(D) For purposes of rebutting the presumption established in
division (B)(1) of this section, a permittee shall use an
independent laboratory that is certified by the chief to conduct a
survey of a water supply that may be required for purposes of that
division. A certified independent laboratory that conducts a
survey of a water supply shall prepare a report in accordance with
this division and send a copy of the report to the division of
mineral resources management, the permittee, and the person that
submitted the notification under division (A) of this section. A
report of a water survey prepared for purposes of this section
shall contain all of the following:
(1) The location of the water supply and the name of the
surface landowner;
(2) The name of the certified laboratory, the person who
conducted the survey, and the date on which the survey was
conducted;
(3) A description of where and how samples for the survey
were collected;
(4) A description of the type and age, if known, of the water
supply;
(5) A description of any treatment of the water supply;
(6) The name of each applicable permittee;
(7) The results of all laboratory analysis conducted on
samples from the water supply.
(E) Any person may contract with a certified independent
laboratory to survey a water supply in order to support a future
claim that diminution or contamination of the water supply, as
applicable, was or was not caused by the drilling, conversion, or
operation of a well.
Sec. 1509.20. All owners, lessees, permittees 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
shutdown in within ten days after
completion accordance with the
requirements established in this chapter and rules adopted under
it.
The owner permittee of any well producing both oil and gas
may burn
such
gas in flares when the gas is lawfully produced and
there is no economic
market at the well for the escaping gas,
after inspection of the well, the chief of the division of mineral
resources management or a mineral resources inspector, in
consultation with the permittee, determines that it is necessary
to prevent the dangerous accumulation of gas and to protect the
health and
safety of the public or the workers at the well.
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. 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 No person shall place or,
cause to be placed, store, or dispose of 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 A permittee, a person registered to transport brine
under section 1509.222 of the Revised Code, and a person to whom a
permit has been issued under division (D) of this section jointly
and severally shall ensure that brine and other waste substances
associated with the exploration or development of oil and gas
resources from the permittee's well are stored and disposed of in
accordance with this chapter and rules adopted under it and with
orders issued by the chief of the division of mineral resources
management.
(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 the chief's rules relating to storage and
disposal are subject to all of the following standards:
(1) Brine and other waste substances 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; accordance with the
restoration plan that is included with the applicable permit
application as required by division (A)(11) of section 1509.06 of
the Revised Code.
(3) Pits may Steel tanks shall be used 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 pits that are located within two thousand five hundred
feet of a lake, stream, or other body of water that is used as a
source of drinking water. The steel tanks shall be
constructed
and
maintained to prevent the escape of brine and
other waste
substances. A steel tank or pit may be used at a well that is
located more than two thousand five hundred feet from a lake,
stream, or other body of water that is used as a source of
drinking water if the use is authorized by the chief. A steel tank
or pit so used shall be constructed and maintained to prevent the
escape of brine and other waste substances.
(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 the reservoir
within such a dike or pit
shall be kept reasonably free of brine
and other waste
substances.
(4) 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;
(5) No pit, earthen impoundment, or dike shall be used for
the temporary storage of brine except in accordance with
divisions
(C)(3) and (4) division (C) of this section;.
(6) No pit or dike shall be used for the ultimate disposal
of
brine or other 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
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 shall include provisions
regarding
applications for and issuance of the permits required
by this
division, including eligibility requirements for an applicant;
terms and conditions of permits; 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. Any
exception established under the Safe Drinking Water Act for oil
and gas drilling operations does not apply if it conflicts with
this section or rules adopted under it. The chief may issue an
order without a prior adjudication hearing, that requires
compliance with this section and rules adopted under it and the
terms and conditions of a permit issued under it. 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 in order to
ensure that underground sources of drinking
water will not be
endangered.
(E) The owner person 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 The chief may order the current permittee
to 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 permittee'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. Not later than five days after the
chief determines that a holder's water supply has been
substantially disrupted, the permittee shall provide a temporary
replacement of water supply for all of the holder's intended uses.
The permittee shall provide the temporary replacement of water
supply until a permanent replacement of the water supply is fully
implemented. The chief may assess a fine against a permittee for
each day that the permittee fails to replace a holder's water
supply. A permittee's replacement of a holder's water supply shall
not affect the holder's right to bring an action against the
permittee for the permittee's negligence in the substantial
disruption of the holder's water supply.
(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.
(H) In order to provide money to the division of mineral
resources management for the administration of this section, there
is levied on the owner of an injection well the following fees:
(1) Five cents per barrel of each substance that is delivered
to a well to be injected in the well when the substance is
produced within the division of mineral resources management
regulatory district in which the well is located or within an
adjoining mineral resources management regulatory district;
(2) Twenty cents per barrel of each substance that is
delivered to a well to be injected in the well when the substance
is not produced within the division of mineral resources
management regulatory district in which the well is located or
within an adjoining mineral resources management regulatory
district.
The owner of an injection well who is issued a permit under
this section shall
collect the fee levied by this division on
behalf of the
division
of mineral resources management and
forward the fee to
the
division. The chief shall transmit all
money received under
division (H) of this section to the
treasurer of state who shall
deposit the money in the state
treasury to the credit of the
oil
and gas well fund created in
section 1509.02 of the Revised Code.
The owner of an injection
well who collects the fee levied by this division may retain
up
to three per cent of the amount that is collected.
The chief shall adopt rules in accordance with Chapter 119.
of the Revised Code establishing requirements and procedures for
collection of the fee levied by this division.
(I) In an action under section 1509.04, 1509.32, 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. 1509.221. (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
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 in order to
ensure that underground sources of drinking water
will not be
endangered.
(B) In order to protect the health and safety of the public,
drinking water sources, and the environment, a person who is
issued a permit under this section shall do all of the following:
(1) Submit to the chief a comprehensive list of each
substance and the corresponding concentration of each substance
that will be used in drilling and in hydraulic fracturing and
recovery processes in order for the chief to establish a water
quality baseline of water supplies that are in close proximity to
the proposed well prior to the commencement of drilling or
hydraulic fracturing. The permittee shall submit the list not
later than six months prior to the start of the drilling or
hydraulic fracturing.
(2) In hydraulic fracturing and recovery processes, use
hydraulic fracturing fluid that is known not to pose a significant
risk to human health;
(3) Use a closed-loop system in drilling operations that
occur within two thousand five hundred feet of a drinking water
source in order to prevent the contamination of surface and ground
water with hydraulic fracturing fluid and to protect drinking
water, the health of the public, and the environment;
(4) Notify the chief or a mineral resources inspector within
twenty-four hours of a violation of any term or condition of the
permit that occurs during drilling operations or hydraulic
fracturing.
(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 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 five
hundred thousand dollars bodily injury
coverage and three hundred
thousand one million 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 the Revised Code pertaining to
the protection of public health and safety and the environment and
the rules adopted under section 1509.22 of the Revised Code.
(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
1509.225
of the Revised Code for protection of public health
or
safety or
conservation of natural resources.
Sec. 1509.223. (A) No permit holder permittee or owner
lessee of a well
shall enter into an agreement with or permit
allow any person to
transport brine produced from the well who is
not registered
pursuant to section 1509.222 of the Revised Code or
exempt from
registration under section 1509.226 of the Revised
Code.
(B) Each registered transporter shall file with the chief
of
the division of mineral resources management, on
or before the
fifteenth day of
April, a statement concerning brine transported,
including
quantities transported and source and delivery points,
during the
last preceding calendar year, and such other
information in such
form as the chief may prescribe.
(C) Each registered transporter shall keep on each vehicle
used to transport brine a daily log and have it available upon
the
request of the chief or an authorized representative of the
chief
or a peace officer. The log shall, at a minimum, include
all of
the following information:
(1) The name of the owner permittee or lessee or owners
permittees or lessees of the well or wells
producing the brine to
be transported;
(2) The date and time the brine is loaded;
(3) The name of the driver;
(4) The amount of brine loaded at each collection point;
(5) The disposal location;
(6) The date and time the brine is disposed of and the
amount
of brine disposed of at each location.
No registered transporter shall falsify or fail to keep or
submit the log required by this division.
(D) Each registered transporter shall legibly identify
with
reflective paints all vehicles employed in transporting or
disposing of brine. Letters shall be no less than four inches in
height and shall indicate the identification number issued by the
chief, the word "brine," and the name and telephone number of the
transporter.
(E) The chief shall maintain and keep a current list of
persons registered to transport brine under section 1509.222 of
the Revised Code. The list shall be open to public inspection.
It
is an affirmative defense to a charge under division (A) of
this
section that at the time the permit holder permittee or owner
lessee of a
well entered into an agreement with or permitted
allowed a person to
transport brine, the person was shown on the
list as currently
registered to transport brine.
Sec. 1509.224. (A) In addition to any other remedies
provided in this chapter, if
the chief of
the division of mineral
resources management has
reason to believe that a pattern
of the
same or similar violations of any requirements of sections
1509.22, 1509.222, or 1509.223 of the Revised Code, or any rule
adopted thereunder or term or condition of the registration
certificate issued thereunder exists or has existed, and the
violations are caused by the transporter's indifference, lack of
diligence, or lack of reasonable care, or are willfully caused by
the transporter, the chief shall immediately issue an order to
the
transporter to show cause why the certificate should not be
suspended or revoked suspending the transporter's registration
certificate. After the issuance of the order, the chief
shall
provide the transporter an opportunity to be heard and to
present
evidence at an informal hearing conducted by the chief.
If, at the
conclusion of the hearing, the chief finds that such a
pattern of
violations exists or has existed, the chief shall
issue an order
suspending or revoking the transporter's registration
certificate.
An order suspending or revoking a certificate under
this section
may be appealed under sections 1509.36 and 1509.37
of the Revised
Code, or notwithstanding any other provision of
this chapter, may
be appealed directly to the court of common
pleas of Franklin
county.
(B) Before issuing an order denying 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 section 1509.22, 1509.221,
1509.222,
1509.223, or 1509.225, or 1509.226 of the Revised Code
and rules and
terms and conditions of registration certificates
adopted or issued
thereunder pertaining to the transportation of
brine by vehicle
and the disposal of brine so transported, the
chief shall issue a
preliminary order indicating the chief's
intent to issue a final
order. The preliminary order shall clearly
state the nature of
the chief's proposed action and the findings
on which it is based
and shall state that the preliminary order
becomes a final order
thirty days after its issuance unless the
person to whom the
preliminary order is directed submits to the
chief a written
request for an informal hearing before the chief
within that
thirty-day period. At the hearing the person may
present
evidence as to why the preliminary order should be revoked
or
modified. Based upon the findings from the informal hearing,
the
chief shall revoke, issue, or modify and issue the preliminary
order as a final order. A final order may be appealed under
sections 1509.36 and 1509.37 of the Revised Code.
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 one
hundred thousand dollars to provide immediate
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 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.
(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 registration is
terminated.
(D) This section does not preclude recourse under an
insurance policy that is required by section 1509.222 of the
Revised Code.
Sec. 1509.23.
(A) Rules of the The chief of the division of
mineral resources management may specify, in consultation with the
technical advisory council on oil and gas created in section
1509.38 of the Revised Code, shall adopt rules that require the
implementation and use of best operating
practices that are
recognized by the oil and gas industry to be followed
in the
drilling of wells and production of oil and
gas for
protection of
public the health or and safety or of persons working at a well
site and of the public and to prevent minimize damage to
natural
resources, including specification the environment. The rules
shall require a permittee and all persons working at a well to
utilize those practices. In addition, the rules shall establish
requirements for all of
the following:
(1) Appropriate drilling and extraction devices and
techniques;
(2) Minimum
distances that wells
and other excavations,
structures, and
equipment shall be located from water
wells,
streets, roads,
highways,
rivers, lakes, streams, ponds, other
bodies of water, railroad tracks, public or private recreational
areas, zoning districts, and buildings or other structures;
(3) Other
methods of
operation;
(4) Procedures, methods, and equipment and other
requirements
for equipment to prevent and contain discharges of
oil 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.
The rules adopted under this division shall not conflict with
any provision of this chapter.
(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 a 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. 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
shall adopt,
amend, or rescind rules relative to minimum acreage
requirements for drilling units and minimum distances from which
between an existing well in a drilling unit and
a new well that
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, in that drilling units, and
other wells
for the purpose of conserving oil and gas reserves.
Rules unit.
In addition, the rules shall address and attempt to accomplish all
of the following:
(A) Prevention of the waste of oil and gas reserves;
(B) Protection of the health and safety of the public,
employees of a permittee or operator, and workers at a well site;
(C) Minimization of the impact on the environment in
furtherance of the requirements established in this chapter and
rules adopted under it and of the goals of the Safe Drinking Water
Act.
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. 1509.26. The Two or more owners of adjoining tracts may
agree to pool such the tracts to
form a drilling unit that
conforms to the minimum acreage
and distance
requirements of the
division of mineral resources
management established in rules
adopted under section 1509.24 or 1509.25
of the Revised Code. Such
The agreement shall be in writing, a copy of which
shall be
submitted to the division with the application
for a
permit
required by section 1509.05 of the Revised Code. Parties to the
agreement shall designate one of their number as the applicant for
such the
permit.
Sec. 1509.30. The holder of a royalty interest in any
natural gas well may request the owner permittee to report to him
the
holder, no more
frequently than the payment period in his the
holder's contract
with the owner permittee, any or all of the
following:
(A) The volume of natural gas for which he the holder was or
is
being paid for the most recent period in his the holder's
contract with the owner permittee, and for any other previous
periods within two years
of the date of production for which the
owner permittee has not already given him
the holder such a report
within the most recent six months;
(B) The price per thousand cubic feet paid to the holder
for
such the gas;
(C) The volume of natural gas which that was shown to have
passed through the owner's permittee's meter for the field
containing the
holder's well.
The owner permittee shall preserve records of such volume for
at
least two three years after the date the record is made
termination of the lease agreement with the holder. Upon receipt
by the owner permittee or his the permittee's agent of a request
by the holder
pursuant to this section, the owner permittee shall
supply the information to the
holder within fifteen days, or the
end of the current payment
period in the contract, whichever is
later fourteen days of receipt of the request.
If the holder's well is metered, the owner permittee shall in
such a
report also inform the holder of the volume of natural gas
which that
was shown to have passed through such the meter during
the period.
The volume of gas required to be reported by this section
shall be indicated on the basis of a standard cubic foot of gas.
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 assignor or transferor
also shall notify 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 or to maintain the structural integrity of its plug;
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 of the well 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 person 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 person relieves the owner
person 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), and (13) of
section 1509.06 of the Revised Code;
obtains
liability insurance
coverage required
by section 1509.07 of the
Revised Code, except
when none is required by that section; and
executes and files a
surety bond, negotiable certificates of
deposit or irrevocable
letters of credit, or cash, as described
in
that section. Instead
of a bond,
but only upon acceptance by
the chief of the division
of mineral resources
management,
the
assignee or transferee may
file proof of financial
responsibility, described in section
1509.07 of the Revised Code.
Section 1509.071 of the Revised Code
applies to the surety bond,
cash, and negotiable certificates of
deposit and irrevocable
letters of
credit described in this
section. Unless the chief
approves a modification, each assignee
or transferee shall operate
in accordance with the plans and
information filed by the permit
holder pursuant to section
1509.06
of the Revised Code.
(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. 1509.32. Any person adversely affected may file with
the chief of the division of mineral resources
management a
written complaint
alleging failure to restore disturbed land
surfaces in violation
of section 1509.072 or 1509.22 of the
Revised Code or a rule
adopted thereunder.
Upon Not later than five days after receipt of a complaint,
the chief shall cause an
investigation to be made of the lands
where the alleged violation
has occurred and. Not later than
thirty days after receipt of the complaint, the chief shall
prepare and complete a report that discusses in detail the chief's
findings and shall make the report available to the public. The
chief shall send copies of the investigation report to the
person
who filed the complaint and to the owner person who, according to
the records of the chief, is responsible for the restoration of
the site. Upon finding a
violation, the chief shall order the
owner
responsible person to eliminate the
violation within a
specified
time immediately. If The responsible person shall
complete the
restoration of the site within thirty days after the
issuance of
the order unless the chief authorizes a longer period
of time
because weather conditions prevented the completion of
the site
restoration within the thirty-day period.
If the owner person fails to
eliminate the violation within
the time specified authorized, the chief may shall
request the
prosecuting attorney of the county in which the
violation occurs
or the attorney general to bring appropriate
action to secure
compliance with such sections the applicable section or rule. If
the chief
fails to bring an appropriate action to secure
compliance with
such sections within twenty days after the time
specified Notwithstanding an order issued under this section or
any other action or inaction by the chief, the
person filing the
complaint may request the prosecuting attorney
of the county in
which the violation occurs to bring an
appropriate action to
secure compliance with such sections the applicable section or
rule. The
division of mineral resources management may shall
cooperate with any state or local
agency to provide technical
advice or minimum standards for the
restoration of various soils
and land surfaces or to assist in
any investigation.
Sec. 1509.33. (A) Whoever violates sections 1509.01 to
1509.31 of the Revised Code, or any rules adopted or orders or
terms or conditions of a permit or registration certificate
issued
pursuant to these sections for which no specific penalty
is
provided in this section, shall pay a civil penalty of not less
than two hundred fifty dollars nor
more than four thousand one
million dollars for each offense.
(B) Whoever violates section 1509.221 of the Revised Code
or
any rules adopted or orders or terms or conditions of a permit
issued thereunder shall pay a civil penalty of not more less than
two
thousand five hundred dollars nor more than one million
dollars for each violation.
(C) Whoever violates division (D) of section 1509.22 or
division (A)(1) of section 1509.222 of the Revised Code shall pay
a civil penalty of not less than two ten thousand five hundred
dollars nor more than twenty thousand one million dollars for each
violation.
(D) Whoever violates division (C)(2) of section 1509.071 or
division (A) or (B) of section 1509.22 of
the Revised Code shall
pay a civil penalty of not less than two
thousand five hundred
dollars nor more than ten thousand one million dollars
for each
violation.
(E) Whoever violates division (A) of section 1509.223 of
the
Revised Code shall pay a civil penalty of not less than five
hundred dollars nor more than ten
thousand dollars for each
violation.
(F) Whoever violates section 1509.072 of the Revised Code
or
any rules adopted or orders issued to administer, implement,
or
enforce that section shall pay a civil penalty of not less than
five hundred dollars nor more
than five thousand dollars for each
violation.
(G) Whoever violates division (A) of section 1509.14 of the
Revised Code shall pay a civil penalty of not less than one
thousand dollars for each violation.
(H) In addition to any other penalties provided in this
chapter, whoever violates division (B) of section 1509.22 or
division (A)(1) of section 1509.222 or knowingly violates
division
(A) of section 1509.223 of the Revised Code is liable
for any
damage or injury caused by the violation and for the cost
of
rectifying the violation and conditions caused by the
violation.
If two or more persons knowingly violate one or more
of such those
divisions in connection with the same event, activity, or
transaction, they are jointly and severally liable under this
division.
(H)(I) The attorney general, upon the request of the chief of
the division of mineral resources management, shall
commence an
action under this
section against any person who violates sections
1509.01 to
1509.31 of the Revised Code, or any rules adopted or
orders or
terms or conditions of a permit or registration
certificate
issued pursuant to these sections. Any action under
this section
is a civil action, governed by the Rules of Civil
Procedure and
other rules of practice and procedure applicable to
civil
actions. The remedy provided in this division is cumulative
and
concurrent with any other remedy provided in this chapter, and
the existence or exercise of one remedy does not prevent the
exercise of any other, except that no. A person shall may be
subject to
both a civil penalty under division (A), (B), (C), or
(D) of this
section and a criminal penalty under section 1509.99
of the
Revised Code for the same offense.
Sec. 1509.34. (A) If a permittee 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 permittee'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
permittee'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
permittee'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) A permittee regarding which the division has recorded a
lien
against the permittee's interest in a well in accordance
with this
section shall
not transfer a well, a lease, or mineral
rights to
another permittee or
person until the chief issues a
certificate of
release for each
lien against the permittee'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 nine members appointed by the
governor.
Terms of office shall be for five three 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 Five of the appointees to the commission
shall be a person persons who, by reason of
the person's their
previous vocation vocations, employment, or affiliations, can be
classed as a representative representatives
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. Not more than three five
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 Five 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 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
mail
of the making 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
thirty
days' written notice thereof by mail. The commission may
postpone
or
continue any hearing upon its own motion or upon
application of
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 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
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 the
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 the 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. 1509.38. There is hereby created in the division of
mineral resources management a
technical advisory council on oil
and gas, which shall consist of eight
members to be appointed by
the governor with the advice and consent of the
senate. Three
members shall be independent oil or gas producers, operators,
or
their representatives, operating and producing primarily in this
state,
three members shall be oil or gas producers, operators, or
their
representatives having substantial oil and gas producing
operations in this
state and at least one other state, one member
shall represent the public, and
one member shall represent persons
having landowners' royalty interests in oil
and gas production.
All members shall be residents of this state, and all
members,
except the members representing the public and persons having
landowners' royalty interests, shall have at least five years of
practical or
technical experience in oil or gas drilling and
production. Not more than one
member may represent any one
company, producer, or operator.
Terms of office shall be for three years, commencing on the
first day of
February and ending on the thirty-first day of
January. Each member shall
hold office from the date of
appointment until the end of the term for which
the member was
appointed. A vacancy in the office of a member shall be filled
by
the governor, with the advice and consent of the senate. 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 that term. Any
member shall continue in office subsequent to the
expiration date
of the member's term until the member's successor
takes office, or
until a period of sixty days has elapsed, whichever occurs
first
There is hereby created in the division of mineral resources
management a technical advisory council on oil and gas, which
shall consist of the five members to be appointed by the governor
with the advice and consent of the senate. One of the members
shall be a person who, by reason of the person's previous training
and experience, is a representative of independent petroleum
operators. One of the members shall be a person who, by reason of
the person's previous training and experience, is a person learned
and experienced in oil and gas law. One of the members shall be a
person who, by reason of the person's previous training and
experience, is a person learned and experienced in geology. Two of
the members shall be persons who, by reason of their previous
vocations, employment, or affiliations, are representatives of the
public. All members shall be residents of this state, and all
members, except the members representing the public, shall have at
least five years of practical or technical experience in oil or
gas drilling and production.
Terms of office shall be for three years, commencing on the
first day of February and ending on the thirty-first day of
January. A member shall hold office from the date of appointment
until the end of the term for which the member was appointed. A
vacancy in the office of a member shall be filled by the governor,
with the advice and consent of the senate. A 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 that term. A member shall continue in office
subsequent to the expiration date of the member's term until the
member's successor takes office or until a period of sixty days
has elapsed, whichever occurs first.
The council shall select from among its members a
chairperson, a
vice-chairperson, and a secretary. All members are
entitled to their actual
and necessary expenses incurred in the
performance of their duties as members,
payable from the
appropriations for the division.
The governor may remove any member for inefficiency, neglect
of duty, or
malfeasance in office.
The council shall hold at least one regular meeting in each
quarter of a
calendar year and shall keep a record of its
proceedings. Special meetings
may be called by the chairperson and
shall be called by the chairperson upon
receipt of a written
request signed by two or more members of the council. A
written
notice of the time and place of each meeting shall be sent to each
member of the council. Five members constitute a quorum, and no
action of the
council is valid unless five members concur.
The council, when requested by the chief of the division of
mineral resources management, shall
consult with and advise the
chief and perform other duties that may be
lawfully delegated to
it by the chief. The council may participate in
hearings held by
the chief under this chapter and has powers of approval as
provided in sections section 1509.24 and 1509.25 of the Revised
Code. The council
shall conduct the activities required, and
exercise the authority granted,
under Chapter 1510. of the Revised
Code.
The council, upon receiving a request from the chairperson of
the oil and gas commission under division (C) of section 1509.35
of the Revised Code, immediately shall prepare and provide to the
chairperson a list of its members who may serve as temporary
members of the oil and gas commission as provided in that
division.
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. 1509.99. (A) Whoever violates sections 1509.01 to
1509.31 of the Revised Code or any rules adopted or orders or
terms or conditions of a permit issued pursuant to these sections
for which no specific penalty is provided in this section shall
be
fined not less than one hundred nor more than one thousand
dollars
for a first offense; for each subsequent offense such
the person
shall be fined not less than two hundred nor more than two
thousand dollars.
(B) Whoever violates section 1509.221 of the Revised Code
or
any rules adopted or orders or terms or conditions of a permit
issued thereunder shall be fined not more than five thousand
dollars for each day of violation.
(C) Whoever knowingly violates section 1509.072, division
(A), (B), or (D) of section 1509.22, division (A)(1) or (C) of
section 1509.222, or division (A) or (D) of section 1509.223 of
the Revised Code or any rules adopted or orders issued under
division (C) of section 1509.22 or rules adopted or orders or
terms or conditions of a registration certificate issued under
division (E) of section 1509.222 of the Revised Code shall be
fined ten thousand dollars or imprisoned for six months, or both
for a first offense; for each subsequent offense such the person
shall be fined twenty thousand dollars or imprisoned for two
years, or both. Whoever negligently violates such those divisions,
sections, rules, orders, or terms or conditions of a registration
certificate shall be fined not more than five thousand dollars.
(D) Whoever violates division (C) of section 1509.223 of
the
Revised Code shall be fined not more than five hundred
dollars for
a first offense nor more than one thousand dollars
for a
subsequent offense.
(E) The prosecuting attorney of the county in which the
offense was committed or the attorney general may prosecute an
action under this section.
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, 1509.061, 1509.07, 1509.071, 1509.072,
1509.08, 1509.09, 1509.10, 1509.11, 1509.12, 1509.13, 1509.14,
1509.15, 1509.17, 1509.18, 1509.20, 1509.21, 1509.22, 1509.221,
1509.222, 1509.223, 1509.224, 1509.225, 1509.23, 1509.24, 1509.26,
1509.30, 1509.31, 1509.32, 1509.33, 1509.35, 1509.36, 1509.38,
1509.99, 1565.07, 1565.13, 1571.05, and 5749.06
and sections
1509.226, 1509.25, 1509.27, 1509.29, 1509.40, and
1509.41 of the
Revised Code are hereby repealed.
Section 3. (A) The Technical advisory Council on Oil and Gas
created in section 1509.38 of the Revised Code as that section
existed prior to its amendment by this act is abolished.
(B) Not later than ninety days after the effective date of
this section, the Governor, with the advice and consent of the
Senate, shall appoint the initial members of the Technical
Advisory Council on Oil and Gas that is created in section 1509.38
of the Revised Code as amended by this act. In doing so, the
Governor shall provide for staggered terms of office for members
of the Council.
Section 4. (A) The members who are serving on the Oil and Gas
Commission created in section 1509.35 of the Revised Code on the
effective date of the amendment by this act to that section shall
hold office until their terms expire unless they are removed under
division (F) of that section. Any person appointed to the
Commission after the effective date of the amendment to that
section shall be appointed for a term of three years as specified
in that amendment.
(B) Not later than ninety days after the effective date of
this section, the Governor shall appoint four additional members
to the Oil and Gas Commission in accordance with the amendment by
this act to section 1509.35 of the Revised Code. Of the additional
members appointed by the Governor, one member's term shall expire
in 2011, one member's term shall expire in 2012, and two members'
terms shall expire in 2013.
|
|