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H. B. No. 351 As IntroducedAs Introduced
129th General Assembly | Regular Session | 2011-2012 |
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Representatives Antonio, Fedor
Cosponsors:
Representatives Foley, Driehaus, Reece, Hagan, R., Phillips, Heard
A BILL
To enact sections 1509.031, 1509.063, 1509.064,
1509.191, 1509.192, 1509.227, and 6111.70 of the
Revised Code to establish requirements governing
well stimulation, brine disposal, and water that
is used in the drilling and operation of oil and
gas wells, including a requirement that oil and
gas permittees pay a seven per cent overriding
royalty for each well that is stimulated.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 1509.031, 1509.063, 1509.064,
1509.191, 1509.192, 1509.227, and 6111.70 of the Revised Code be
enacted to read as follows:
Sec. 1509.031. The director of environmental protection or
the director's designee and the health commissioner of the health
district in which a well is located or the commissioner's designee
may enter at any time on lands, public or private, to sample and
analyze fluids used to stimulate a well.
Sec. 1509.063. (A) After the issuance of a permit for a new
well under section 1509.06 of the Revised Code, the chief of the
division of oil and gas resources management shall notify the
director of environmental protection of the issuance of the
permit. The notice shall contain all of the information that is
necessary for the director to conduct the activities required by
this section, including the identification of the owner and the
location of the proposed well.
After receipt of the notice and prior to the commencement of
any activity at the site of the proposed well, the director shall
conduct baseline testing of surface water and ground water for
quality and quantity, including annual flow measurements. After
completion of the testing, the director shall notify the chief and
the owner. The owner may commence drilling or other operations at
the site of the proposed well after receipt of the notification
from the director.
(B) Prior to the stimulation of an existing well, an owner
shall notify the director, in a manner that is prescribed by the
director, of the owner's intent to stimulate the well. After
receipt of the notice, the director shall conduct baseline testing
of surface water and ground water for quality and quantity,
including annual flow measurements. After completion of the
testing, the director shall notify the chief and the owner. The
owner may stimulate the well after receipt of the notification
from the director.
Sec. 1509.064. (A) A person that is conducting operations or
activities at a well site shall recycle, capture, or treat all
liquids and solids used in the operations or activities.
(B) The director of environmental protection shall adopt
rules in accordance with Chapter 119. of the Revised Code that
require a person that is conducting operations or activities at a
well site to document the quantity of water used in the operations
or activities. The rules shall require the person to submit
quarterly reports to the environmental protection agency and to
the division of oil and gas resources management that identify all
methods of handling the liquids and solids used in the stimulation
of the well. In addition, the quarterly reports shall identify all
methods of disposal and recycling of all liquids and solids used
in the stimulation of the well.
(C) The agency and the division shall post in their entirety
the quarterly reports received under division (B) of this section
on the agency's and division's publicly accessible web sites. Each
web site shall enable a person to request automatic notification
that a quarterly report has been posted. The agency and the
division jointly shall establish procedures and requirements that
are necessary for the implementation of this division.
Sec. 1509.191. Prior to the commencement of any activity at
the proposed site of a well, the owner shall submit to the
environmental protection agency and to the board of health of the
health district in which the well is or is to be located a
complete listing of all of the chemicals and other substances that
will be used to stimulate the well. The list shall be submitted on
a form or in a manner prescribed by the director of environmental
protection. Not later than five days after receipt of the list,
the director shall post the list on the environmental protection
agency's publicly accessible web site.
Sec. 1509.192. On and after the effective date of this
section, if well stimulation is used in a well, the person who has
been issued a permit under section 1509.06 of the Revised Code for
the well shall pay a seven per cent overriding royalty to the
director of environmental protection who shall deposit the money
from the royalty in the state treasury to the credit of the clean
water restoration fund created in section 6111.70 of the Revised
Code. The director shall adopt rules in accordance with Chapter
119. of the Revised Code establishing procedures and requirements
that are necessary for the implementation of this section.
Sec. 1509.227. Prior to commencing the drilling of a well,
the owner shall submit to the director of environmental
protection, the chief of the division of oil and gas resources
management, and the health commissioner of the health district in
which the well is to be located documentation identifying where
and how the owner will handle brine or other waste substances
resulting from, obtained from, or produced from oil and gas
production at the well. In addition, the documentation shall
identify where and how the owner will dispose of or recycle brine
or other waste substances resulting from, obtained from, or
produced from oil and gas production at the well. The director
shall establish appropriate procedures for the purpose of
implementing this section.
Sec. 6111.70. There is hereby created in the state treasury
the clean water restoration fund consisting of money credited to
the fund under section 1509.192 of the Revised Code. The director
of environmental protection shall use money in the fund to perform
baseline testing of surface water and ground water for quantity
and quality under section 1509.063 of the Revised Code and to
sample and analyze fluids under section 1509.031 of the Revised
Code. In addition, money in the fund shall be used to remediate
and repair any water well or ground water adversely affected by
the drilling or operation of an oil or natural gas well.
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