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H. B. No. 474 As IntroducedAs Introduced
129th General Assembly | Regular Session | 2011-2012 |
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Cosponsors:
Representatives Hagan, R., Foley, Driehaus, Boyd, O'Brien, Murray, Gerberry, Antonio, Fedor, Heard
A BILL
To amend sections 1509.02, 1509.06, 1509.22,
1509.221, and 1509.31 and to enact sections
1509.074, 1509.227, and 1590.228 of the Revised
Code to require a background check of an applicant
for an injection well, to establish recycling and
treatment requirements for wastewater from oil and
gas drilling and production operations, to revise
the procedures and requirements governing the
application for and issuance of a permit for a
well to inject such wastewater, to establish an
additional fee on that injection, and to establish
requirements governing ground water monitoring
related to that injection.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 1509.02, 1509.06, 1509.22, 1509.221,
and 1509.31 be amended and sections 1509.074, 1509.227, and
1509.228 of the Revised Code be enacted to read as follows:
Sec. 1509.02. There is hereby created in the department of
natural resources the division of oil and gas resources
management, which shall be administered by the chief of the
division of oil and gas resources management. The division has
sole and exclusive authority to regulate the permitting, location,
and spacing of oil and gas wells and production operations within
the state, excepting only those activities regulated under federal
laws for which oversight has been delegated to the environmental
protection agency, the permitting of a well to inject brine or
other waste substances under division (D) of section 1509.22 of
the Revised Code, and activities regulated under sections 6111.02
to 6111.029 of the Revised Code. 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, well stimulation, completing,
and operating of oil and gas wells within this state, including
site construction and restoration, permitting related to those
activities, and the disposal of wastes from those wells. Nothing
in this section affects the authority granted to the director of
transportation and local authorities in section 723.01 or 4513.34
of the Revised Code, provided that the authority granted under
those sections shall not be exercised in a manner that
discriminates against, unfairly impedes, or obstructs oil and gas
activities and operations regulated under this chapter.
The chief shall not hold any other public office, nor shall
the chief be engaged in any occupation or business that might
interfere with or be inconsistent with the duties as chief.
All moneys collected by the chief pursuant to sections
1509.06, 1509.061, 1509.062, 1509.071, 1509.13, 1509.22, 1509.221,
1509.222, 1509.34, and 1509.50 and division (B)(1) of section
1509.221 of the Revised Code, 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 of the Revised Code, all civil
penalties paid under section 1509.33 of the Revised Code, and,
notwithstanding any section of the Revised Code relating to the
distribution or crediting of fines for violations of the Revised
Code, all fines imposed under divisions (A) and (B) of section
1509.99 of the Revised Code and fines imposed under divisions (C)
and (D) of section 1509.99 of the Revised Code for all violations
prosecuted by the attorney general and for violations prosecuted
by prosecuting attorneys that do not involve the transportation of
brine by vehicle shall be deposited into the state treasury to the
credit of the oil and gas well fund, which is hereby created.
Fines imposed under divisions (C) and (D) of section 1509.99 of
the Revised Code for violations prosecuted by prosecuting
attorneys that involve the transportation of brine by vehicle and
penalties associated with a compliance agreement entered into
pursuant to this chapter shall be paid to the county treasury of
the county where the violation occurred.
The fund shall be used solely and exclusively for the
purposes enumerated in division (B) of section 1509.071 of the
Revised Code, for the expenses of the division associated with the
administration of this chapter and Chapter 1571. of the Revised
Code and rules adopted under them, and for expenses that are
critical and necessary for the protection of human health and
safety and the environment related to oil and gas production in
this state. The expenses of the division in excess of the moneys
available in the fund shall be paid from general revenue fund
appropriations to the department.
Sec. 1509.06. (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 oil
and gas resources management upon such form as the chief
prescribes and shall contain each of the following that is
applicable:
(1) The name and address of the owner and, if a corporation,
the name and address of the statutory agent;
(2) The signature of the owner or the owner's authorized
agent. When an authorized agent signs an application, it shall be
accompanied by a certified copy of the appointment as such agent.
(3) The names and addresses of all persons holding the
royalty interest in the tract upon which the well is located or is
to be drilled or within a proposed drilling unit;
(4) The location of the tract or drilling unit on which the
well is located or is to be drilled identified by section or lot
number, city, village, township, and county;
(5) Designation of the well by name and number;
(6) The geological formation to be tested or used and the
proposed total depth of the well;
(7) The type of drilling equipment to be used;
(8) If the well is for the injection of a liquid, identity of
the geological formation to be used as the injection zone and the
composition of the liquid to be injected;
(9) For an application for a permit to drill a new well
within an urbanized area, a sworn statement that the applicant has
provided notice by regular mail of the application to the owner of
each parcel of real property that is located within five hundred
feet of the surface location of the well and to the executive
authority of the municipal corporation or the board of township
trustees of the township, as applicable, in which the well is to
be located. In addition, the notice shall contain a statement that
informs an owner of real property who is required to receive the
notice under division (A)(9) of this section that within five days
of receipt of the notice, the owner is required to provide notice
under section 1509.60 of the Revised Code to each residence in an
occupied dwelling that is located on the owner's parcel of real
property. The notice shall contain a statement that an application
has been filed with the division of oil and gas resources
management, identify the name of the applicant and the proposed
well location, include the name and address of the division, and
contain a statement that comments regarding the application may be
sent to the division. The notice may be provided by hand delivery
or regular mail. The identity of the owners of parcels of real
property shall be determined using the tax records of the
municipal corporation or county in which a parcel of real property
is located as of the date of the notice.
(10) A plan for restoration of the land surface disturbed by
drilling operations. The plan shall provide for compliance with
the restoration requirements of division (A) of section 1509.072
of the Revised Code and any rules adopted by the chief pertaining
to that restoration.
(11) A description by name or number of the county, township,
and municipal corporation roads, streets, and highways that the
applicant anticipates will be used for access to and egress from
the well site;
(12) On and after the effective date of the rules adopted
under section 1509.074 of the Revised Code, a plan that complies
with that section and those rules for the recycling and treatment
of wastewater, including brine and other waste substances, that
results from, is obtained from, or is produced in connection with
oil or gas drilling, exploration, or production;
(13) Such other relevant information as the chief prescribes
by rule.
Each application shall be accompanied by a map, on a scale
not smaller than four hundred feet to the inch, prepared by an
Ohio registered surveyor, showing the location of the well and
containing such other data as may be prescribed by the chief. If
the well is or is to be located within the excavations and
workings of a mine, the map also shall include the location of the
mine, the name of the mine, and the name of the person operating
the mine.
(B) The chief shall cause a copy of the weekly circular
prepared by the division to be provided to the county engineer of
each county that contains active or proposed drilling activity.
The weekly circular shall contain, in the manner prescribed by the
chief, the names of all applicants for permits, the location of
each well or proposed well, the information required by division
(A)(11) of this section, and any additional information the chief
prescribes. In addition, the chief promptly shall transfer an
electronic copy or facsimile, or if those methods are not
available to a municipal corporation or township, a copy via
regular mail, of a drilling permit application to the clerk of the
legislative authority of the municipal corporation or to the clerk
of the township in which the well or proposed well is or is to be
located if the legislative authority of the municipal corporation
or the board of township trustees has asked to receive copies of
such applications and the appropriate clerk has provided the chief
an accurate, current electronic mailing address or facsimile
number, as applicable.
(C)(1) Except as provided in division (C)(2) of this section,
the chief shall not issue a permit for at least ten days after the
date of filing of the application for the permit unless, upon
reasonable cause shown, the chief waives that period or a request
for expedited review is filed under this section. However, the
chief shall issue a permit within twenty-one days of the filing of
the application unless the chief denies the application by order.
(2) If the location of a well or proposed well will be or is
within an urbanized area, the chief shall not issue a permit for
at least eighteen days after the date of filing of the application
for the permit unless, upon reasonable cause shown, the chief
waives that period or the chief at the chief's discretion grants a
request for an expedited review. However, the chief shall issue a
permit for a well or proposed well within an urbanized area within
thirty days of the filing of the application unless the chief
denies the application by order.
(D) An applicant may file a request with the chief for
expedited review of a permit application if the well is not or is
not to be located in a gas storage reservoir or reservoir
protective area, as "reservoir protective area" is defined in
section 1571.01 of the Revised Code. If the well is or is to be
located in a coal bearing township, the application shall be
accompanied by the affidavit of the landowner prescribed in
section 1509.08 of the Revised Code.
In addition to a complete application for a permit that meets
the requirements of this section and the permit fee prescribed by
this section, a request for expedited review shall be accompanied
by a separate nonrefundable filing fee of two hundred fifty
dollars. Upon the filing of a request for expedited review, the
chief shall cause the county engineer of the county in which the
well is or is to be located to be notified of the filing of the
permit application and the request for expedited review by
telephone or other means that in the judgment of the chief will
provide timely notice of the application and request. The chief
shall issue a permit within seven days of the filing of the
request unless the chief denies the application by order.
Notwithstanding the provisions of this section governing expedited
review of permit applications, the chief may refuse to accept
requests for expedited review if, in the chief's judgment, the
acceptance of the requests would prevent the issuance, within
twenty-one days of their filing, of permits for which applications
are pending.
(E) A well shall be drilled and operated in accordance with
the plans, sworn statements, and other information submitted in
the approved application.
(F) The chief shall issue an order denying a permit if the
chief finds that there is a substantial risk that the operation
will result in violations of this chapter or rules adopted under
it that will present an imminent danger to public health or safety
or damage to the environment, provided that where the chief finds
that terms or conditions to the permit can reasonably be expected
to prevent such violations, the chief shall issue the permit
subject to those terms or conditions, including, if applicable,
terms and conditions regarding subjects identified in rules
adopted under section 1509.03 of the Revised Code. The issuance of
a permit shall not be considered an order of the chief.
(G) Each application for a permit required by section 1509.05
of the Revised Code, except an application to plug back an
existing well that is required by that section and an application
for a well drilled or reopened for purposes of section 1509.22 of
the Revised Code, also shall be accompanied by a nonrefundable fee
as follows:
(1) Five hundred dollars for a permit to conduct activities
in a township with a population of fewer than ten thousand;
(2) Seven hundred fifty dollars for a permit to conduct
activities in a township with a population of ten thousand or
more, but fewer than fifteen thousand;
(3) One thousand dollars for a permit to conduct activities
in either of the following:
(a) A township with a population of fifteen thousand or more;
(b) A municipal corporation regardless of population.
(4) If the application is for a permit that requires
mandatory pooling, an additional five thousand dollars.
For purposes of calculating fee amounts, populations shall be
determined using the most recent federal decennial census.
Each application for the revision or reissuance of a permit
shall be accompanied by a nonrefundable fee of two hundred fifty
dollars.
(H) Prior to the issuance of a permit to drill a proposed
well that is to be located in an urbanized area, the division
shall conduct a site review to identify and evaluate any
site-specific terms and conditions that may be attached to the
permit. At the site review, a representative of the division shall
consider fencing, screening, and landscaping requirements, if any,
for similar structures in the community in which the well is
proposed to be located. The terms and conditions that are attached
to the permit shall include the establishment of fencing,
screening, and landscaping requirements for the surface facilities
of the proposed well, including a tank battery of the well.
(I) A permit shall be issued by the chief in accordance with
this chapter. A permit issued under this section for a well that
is or is to be located in an urbanized area shall be valid for
twelve months, and all other permits issued under this section
shall be valid for twenty-four months.
(J) A permittee or a permittee's authorized representative
shall notify an inspector from the division at least twenty-four
hours, or another time period agreed to by the chief's authorized
representative, prior to the commencement of drilling, reopening,
converting, well stimulation, or plugback operations.
Sec. 1509.074. (A) On and after the effective date of the
rules adopted under division (B) of this section, the owner of a
well that has been issued a permit under section 1509.06 of the
Revised Code shall recycle or treat wastewater, including brine
and other waste substances, that results from, is obtained from,
or is produced in connection with oil or gas drilling,
exploration, or production in accordance with the plan submitted
under division (A)(12) of that section.
(B) The chief of the division of oil and gas resources
management shall adopt rules in accordance with Chapter 119. of
the Revised Code establishing all of the following:
(1) Requirements governing the content and implementation of
the plan that must be submitted under division (A)(12) of section
1509.06 of the Revised Code;
(2) Procedures and requirements in accordance with which the
chief may authorize an owner to dispose of wastewater, including
brine and other waste substances, that results from, is obtained
from, or is produced in connection with oil or gas drilling,
exploration, or production in accordance with section 1509.22 of
the Revised Code if the owner demonstrates to the satisfaction of
the chief that such wastewater cannot be recycled or otherwise
treated;
(3) Any other requirement that the chief determines is
necessary to administer this section and division (A)(12) of
section 1509.06 of the Revised Code.
Sec. 1509.22. (A) Except when acting in accordance with
section 1509.226 of the Revised Code, no person shall place or
cause to be placed brine, crude oil, natural gas, or other fluids
associated with the exploration or development of oil and gas
resources in surface or ground water or in or on the land in such
quantities or in such manner as actually causes or could
reasonably be anticipated to cause either of the following:
(1) Water used for consumption by humans or domestic animals
to exceed the standards of the Safe Drinking Water Act;
(2) Damage or injury to public health or safety or the
environment.
(B) No person shall store or dispose of brine in violation of
a plan approved under division (A) of section 1509.222 or section
1509.226 of the Revised Code, in violation of a resolution
submitted under section 1509.226 of the Revised Code, or in
violation of rules or orders applicable to those plans or
resolutions.
(C) The chief of the division of oil and gas resources
management shall adopt rules and issue orders regarding storage
and disposal of brine and other waste substances; however, the
storage and disposal of brine and other waste substances and the
chief's rules relating to storage and disposal are subject to all
of the following standards:
(1) Brine from any well except an exempt Mississippian well
shall be disposed of only by injection into an underground
formation, including annular disposal if approved by rule of the
chief, which injection shall be subject to division (D) of this
section; by surface application in accordance with section
1509.226 of the Revised Code; in association with a method of
enhanced recovery as provided in section 1509.21 of the Revised
Code; or by other methods approved by the chief for testing or
implementing a new technology or method of disposal. Brine from
exempt Mississippian wells shall not be discharged directly into
the waters of the state.
(2) Muds, cuttings, and other waste substances shall not be
disposed of in violation of any rule.
(3) Pits or steel tanks shall be used as authorized by the
chief for containing brine and other waste substances resulting
from, obtained from, or produced in connection with drilling, well
stimulation, reworking, reconditioning, plugging back, or plugging
operations. The pits and steel tanks 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 crude oil, and the reservoir
within such a dike or pit shall be kept reasonably free of brine,
crude oil, and other waste substances.
(5) Earthen impoundments constructed pursuant to the
division's specifications may be used for the temporary storage of
fluids used in the stimulation of a well.
(6) No pit, earthen impoundment, or dike shall be used for
the temporary storage of brine or other substances except in
accordance with divisions (C)(3) to (5) of this section.
(7) No pit or dike shall be used for the ultimate disposal of
brine or other liquid waste substances.
(D)(1) 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 thousand
dollars, the information that is required in section 1509.228 of
the Revised Code, and the waste analysis plan that is required by
division (D)(2) of this section. The
(2)(a) A person that submits an application for a permit to
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 shall
prepare and submit to the chief a waste analysis plan. The plan
shall consist of a written document that will be used as the basis
for analyzing the contents in each container of brine or other
waste substances that will be injected in the well. The waste
analysis plan shall include all of the following:
(i) A detailed description of the physical and chemical tests
that will be used to identify the contents in each container of
brine or other waste substances;
(ii) An explanation of the reasons for the selection of the
physical and chemical tests described pursuant to division
(D)(2)(a)(i) of this section;
(iii) A detailed description of the methods that will be used
to obtain a sample of the contents in each container of brine or
waste substances;
(iv) A detailed description of the quality assurance
procedures that will be used in the analysis of the contents in
each container of brine or other waste substances that will be
injected in the well;
(v) Any other information that the chief determines is
necessary.
(b) The chief shall review a waste analysis plan submitted
under division (D)(2)(a) of this section and approve or disapprove
the plan. The chief shall notify the applicant of the chief's
approval or disapproval of the plan. If the chief disapproves the
waste analysis plan, the applicant may correct any deficiencies
and resubmit the plan for approval.
(c) A person that obtains a permit under this section shall
revise the permittee's waste analysis plan as needed and shall
submit the revised plan to the chief for approval in the same
manner as the original plan. If the chief disapproves the revised
plan, the permittee may correct any deficiencies and resubmit the
revised plan for approval. For the purpose of division (D)(2)(d)
of this section, the permittee may continue to use the waste
analysis plan that was approved immediately prior to the
submission of a revised plan until the revised plan is approved.
The permittee of an injection well may analyze the contents in
each container of brine or other waste substances in accordance
with the revised plan.
(d) A permittee shall analyze the contents in each container
of brine or other waste substances in accordance with an approved
waste analysis plan prior to injecting the brine or other waste
substances into an underground formation.
(3)(a) After the chief determines that an application for a
permit is complete, the chief shall post on the division of oil
and gas resources management's web site a notification that
contains information regarding the application that is the same as
the information that is required to be contained in the weekly
circular of the division in division (B) of section 1509.06 of the
Revised Code. In addition, the chief shall establish the time,
date, and location of the public hearing that is required by
division (D)(3)(b) of this section and provide to the applicant
information regarding the public hearing, the permit application
number, and the location where a copy of the application may be
inspected.
(b) The chief shall hold a public hearing in the township or
municipal corporation, as applicable, where the proposed injection
well is to be located on the application for a permit submitted
under this section. The meeting shall be held not later than sixty
days after the applicant's fourth publication in a newspaper that
is required by division (D)(3)(c) of this section.
(c) Beginning in the week following the week of receipt of
the information provided by the chief under division (D)(3)(a) of
this section, the applicant shall publish a notice, at least once
a week for four consecutive weeks, in a newspaper of general
circulation in the county in which the proposed injection well is
to be located and, if available, in any local weekly news
publication that serves the township or municipal corporation in
which the proposed well is to be located. The font for the notice
shall be of a reasonable size. In addition, the notice shall
contain all of the following information:
(i) The name of the applicant;
(ii) A statement that the applicant intends to drill an
injection well;
(iii) A description of the location at which the proposed
well will be drilled;
(iv) The permit application number;
(v) The time, date, and location of the public hearing that
the chief will hold under division (D)(3)(b) of this section;
(vi) The location where a copy of the permit application may
be inspected.
(d) The chief shall provide a notice containing all of the
information required by division (D)(3)(c) of this section to all
of the following, as applicable:
(i) The board of county commissioners of the county in which
the proposed injection well is to be located;
(ii) The legislative authority of the municipal corporation
or the board of township trustees of the township in which the
proposed well is to be located;
(iii) Each private water company that has a well or a
reservoir that is located within a two-mile radius of the proposed
location of the well;
(iv) The board of directors of each conservancy district
established under Chapter 6101. of the Revised Code with
jurisdiction in the area in which the well is proposed to be
located, if applicable;
(v) Each planning commission with jurisdiction in the area in
which the well is proposed to be located;
(vi) Each state and federal legislator in whose legislative
district the well is proposed to be located.
An individual or entity that received a notice under division
(D)(3)(d) of this section may submit to the chief written comments
concerning the application with respect to the effects of the
operation of the proposed injection well on the environment that
are within the individual's or entity's area of responsibility.
The written comments shall be submitted to the chief not later
than thirty days after the individual's or entity's receipt of the
notice. If the chief receives such written comments concerning an
application, the chief immediately shall transmit a copy of the
comments to the applicant and post a copy of them on the
division's web site.
(e) Any person may submit a written comment or objection to
the chief with respect to an application submitted under division
(D)(1) of this section. A comment or objection shall be submitted
not later than ninety days after the date of the first publication
of the notice by the applicant under division (D)(3)(c) of this
section unless the chief grants an extension.
(4)(a) A person that submits an application for a permit
under division (D)(1) of this section shall conduct reflection
seismology at the location of the proposed injection well in order
to identify geologic features under the surface location of the
proposed injection well. The person shall submit the results of
the reflection seismology to the chief.
(b) As used in division (D)(4)(a) of this section, "geologic
features" means lateral stratigraphic changes, faults, fractures,
or other structural irregularities.
(5) The board of township trustees of the township or the
legislative authority of the municipal corporation, as applicable,
in which an injection well is proposed to be located for which an
application was submitted under division (D)(1) of this section
may adopt a resolution or enact an ordinance, as applicable,
objecting to the issuance of a permit for the well. The board or
the legislative authority may submit the resolution or ordinance
to the chief.
(6) The chief shall not issue a permit for an application
submitted under division (D)(1) of this section if any of the
following applies:
(a) The applicant has not submitted a waste analysis plan
under division (D)(2)(a) of this section.
(b) The chief has not approved the applicant's waste analysis
plan under division (D)(2)(b) of this section.
(c) The applicant has not conducted and submitted the results
of reflection seismology at the location of the proposed injection
well under division (D)(4) of this section.
(d) The chief has received within thirty days after the
public hearing required by division (D)(3)(b) of this section a
resolution or an ordinance under division (D)(5) of this section
objecting to the issuance of a permit for the well from the board
of township trustees of the township or the legislative authority
of the municipal corporation, as applicable, in which the proposed
injection well is to be located.
(7) 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.
(E) 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 require a person who has been issued a
permit under division (D) of this section for such a well to add a
stable benign chemical tracer into the well in an amount and at a
frequency that are determined by the chief for the purposes of
determining if brine and other waste substances that are injected
into the well have migrated and if impacts to ground water have
occurred from the operation of the well. The rules may authorize
tests to evaluate whether fluids or carbon dioxide may be injected
in a reservoir and to determine the maximum allowable injection
pressure, which shall be conducted in accordance with methods
prescribed in the rules or in accordance with conditions of the
permit. In addition, the rules shall include provisions regarding
applications all of the following:
(1) Applications for and issuance of the permits required by
this division (D) of this section; entry
(2) Entry to conduct inspections and to examine and copy
records to ascertain compliance with this division section and
rules, orders, and terms and conditions of permits adopted or
issued under it; the
(3) The provision and maintenance of information through
monitoring, recordkeeping, and reporting; and other
(4) Other provisions in furtherance of the goals of this
section and the Safe Drinking Water Act. To implement the goals of
the Safe Drinking Water Act, the chief shall not issue a permit
for the injection of brine or other waste substances resulting
from, obtained from, or produced in connection with oil or gas
drilling, exploration, or production unless the chief concludes
that the applicant has demonstrated that the injection will not
result in the presence of any contaminant in ground water that
supplies or can reasonably be expected to supply any public water
system, such that the presence of the contaminant may result in
the system's not complying with any national primary drinking
water regulation or may otherwise adversely affect the health of
persons. This division
(F) Divisions (D) and (E) of this section and rules, orders,
and terms and conditions of permits adopted or issued under it
those divisions shall be construed to be no more stringent than
required for compliance with the Safe Drinking Water Act unless
essential to ensure that underground sources of drinking water
will not be endangered.
(E)(G) The owner holding a permit, or an assignee or
transferee who has assumed the obligations and liabilities imposed
by this chapter and any rules adopted or orders issued under it
pursuant to section 1509.31 of the Revised Code, and the operator
of a well shall be liable for a violation of this section or any
rules adopted or orders or terms or conditions of a permit issued
under it.
(F)(H) An owner shall replace the water supply of the holder
of an interest in real property who obtains all or part of the
holder's supply of water for domestic, agricultural, industrial,
or other legitimate use from an underground or surface source
where the supply has been substantially disrupted by
contamination, diminution, or interruption proximately resulting
from the owner's oil or gas operation, or the owner may elect to
compensate the holder of the interest in real property for the
difference between the fair market value of the interest before
the damage occurred to the water supply and the fair market value
after the damage occurred if the cost of replacing the water
supply exceeds this difference in fair market values. However,
during the pendency of any order issued under this division, the
owner shall obtain for the holder or shall reimburse the holder
for the reasonable cost of obtaining a water supply from the time
of the contamination, diminution, or interruption by the operation
until the owner has complied with an order of the chief for
compliance with this division or such an order has been revoked or
otherwise becomes not effective. If the owner elects to pay the
difference in fair market values, but the owner and the holder
have not agreed on the difference within thirty days after the
chief issues an order for compliance with this division, within
ten days after the expiration of that thirty-day period, the owner
and the chief each shall appoint an appraiser to determine the
difference in fair market values, except that the holder of the
interest in real property may elect to appoint and compensate the
holder's own appraiser, in which case the chief shall not appoint
an appraiser. The two appraisers appointed shall appoint a third
appraiser, and within thirty days after the appointment of the
third appraiser, the three appraisers shall hold a hearing to
determine the difference in fair market values. Within ten days
after the hearing, the appraisers shall make their determination
by majority vote and issue their final determination of the
difference in fair market values. The chief shall accept a
determination of the difference in fair market values made by
agreement of the owner and holder or by appraisers under this
division and shall make and dissolve orders accordingly. This
division does not affect in any way the right of any person to
enforce or protect, under applicable law, the person's interest in
water resources affected by an oil or gas operation.
(G)(I) 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.
(J) An owner who has been issued a permit for a well under
division (D) of this section and the operator of the well shall
allow the board of township trustees of the township or the
legislative authority of the municipal corporation, as applicable,
in which the injection well is located to remove a sample for
analysis from any container of brine or other waste substances
that is delivered to the well prior to injecting the brine or
other waste substances into the well.
Sec. 1509.221. (A) No person, without first having obtained
a permit from the chief of the division of oil and gas resources
management, shall drill a well or inject a substance into a well
for the exploration for or extraction of minerals or energy, other
than oil or natural gas, including, but not limited to, the mining
of sulfur by the Frasch process, the solution mining of minerals,
the in situ combustion of fossil fuel, or the recovery of
geothermal energy to produce electric power, unless a rule of the
chief expressly authorizes the activity without a permit. The
permit shall be in addition to any permit required by section
1509.05 of the Revised Code. The chief shall adopt rules in
accordance with Chapter 119. of the Revised Code governing the
issuance of permits under this section. The rules shall include
provisions regarding the matters the applicant for a permit shall
demonstrate to establish eligibility for a permit; the form and
content of applications for permits; the terms and conditions of
permits; entry to conduct inspections and to examine and copy
records to ascertain compliance with this section and rules,
orders, and terms and conditions of permits adopted or issued
thereunder; provision and maintenance of information through
monitoring, recordkeeping, and reporting; and other provisions in
furtherance of the goals of this section and the Safe Drinking
Water Act. To implement the goals of the Safe Drinking Water Act,
the chief shall not issue a permit under this section, unless the
chief concludes that the applicant has demonstrated that the
drilling, injection of a substance, and extraction of minerals or
energy will not result in the presence of any contaminant in
underground water that supplies or can reasonably be expected to
supply any public water system, such that the presence of the
contaminant may result in the system's not complying with any
national primary drinking water regulation or may otherwise
adversely affect the health of persons. The chief may issue,
without a prior adjudication hearing, orders requiring compliance
with this section and rules, orders, and terms and conditions of
permits adopted or issued thereunder. This section and rules,
orders, and terms and conditions of permits adopted or issued
thereunder shall be construed to be no more stringent than
required for compliance with the Safe Drinking Water Act, unless
essential to ensure that underground sources of drinking water
will not be endangered.
(B)(1) There is levied on the owner of an injection well who
has been issued a permit under division (D) of section 1509.22 of
the Revised Code the following fees:
(a) Five cents per barrel of each substance that is delivered
to a well to be injected in the well when the substance is
produced within the division of oil and gas resources management
regulatory district in which the well is located or within an
adjoining oil and gas resources management regulatory district;
(b) Twenty cents per barrel of each substance that is
delivered to a well to be injected in the well when the substance
is not produced within the division of oil and gas resources
management regulatory district in which the well is located or
within an adjoining oil and gas resources management regulatory
district.
(2) The maximum number of barrels of substance per injection
well in a calendar year on which a fee may be levied under
division (B) of this section is five hundred thousand. If in a
calendar year the owner of an injection well receives more than
five hundred thousand barrels of substance to be injected in the
owner's well and if the owner receives at least one substance that
is produced within the division's regulatory district in which the
well is located or within an adjoining regulatory district and at
least one substance that is not produced within the division's
regulatory district in which the well is located or within an
adjoining regulatory district, the fee shall be calculated first
on all of the barrels of substance that are not produced within
the division's regulatory district in which the well is located or
within an adjoining district at the rate established in division
(B)(2) of this section. The fee then shall be calculated on the
barrels of substance that are produced within the division's
regulatory district in which the well is located or within an
adjoining district at the rate established in division (B)(1) of
this section until the maximum number of barrels established in
division (B)(2) of this section has been attained There is levied
on the owner of an injection well who has been issued a permit
under division (D) of section 1509.22 of the Revised Code an
additional fee of five cents per barrel of each substance that is
delivered to the well to be injected in the well.
(3) The owner of an injection well who is issued a permit
under division (D) of section 1509.22 of the Revised Code shall
collect the fee fees levied by division (B) of this section on
behalf of the division of oil and gas resources management and
forward the fee fees to the division. The chief shall transmit all
money received under division (B)(1) 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 chief shall transmit all
money received under division (B)(2) of this section to the
treasurer of state who shall deposit the money in the state
treasury to the credit of the injection well ground water
monitoring fund created in section 1509.227 of the Revised Code.
The owner of an injection well who collects the
fee fees levied
by this division (B) of this section may retain up to three per
cent of the amount that is collected.
(4) The chief shall adopt rules in accordance with Chapter
119. of the Revised Code establishing requirements and procedures
for collection of the fee fees levied by division (B) of this
section.
(C) In an action under section 1509.04 or 1509.33 of the
Revised Code to enforce this section, the court shall grant
preliminary and permanent injunctive relief and impose a civil
penalty upon the showing that the person against whom the action
is brought has violated, is violating, or will violate this
section or rules, orders, or terms or conditions of permits
adopted or issued thereunder. The court shall not require, prior
to granting such preliminary and permanent injunctive relief or
imposing a civil penalty, proof that the violation was, is, or
will be the result of intentional conduct or negligence. In any
such action, any person may intervene as a plaintiff upon the
demonstration that the person has an interest that is or may be
adversely affected by the activity for which injunctive relief or
a civil penalty is sought.
Sec. 1509.227. (A) There is hereby created in the state
treasury the injection well ground water monitoring fund
consisting of money credited to it under section 1509.221 of the
Revised Code. The chief of the division of oil and gas resources
management shall administer the fund and shall use money credited
to it solely to conduct ground water monitoring in accordance with
rules adopted under division (B) of this section.
(B) The chief shall adopt rules in accordance with Chapter
119. of the Revised Code establishing requirements for the
installation of ground water monitoring wells and the monitoring
of ground water quality and quantity prior to the commencement of
drilling of a well for which a permit is issued under division (D)
of section 1509.22 of the Revised Code and during the injection of
brine or other waste substances into such a well. The rules shall
require that ground water monitoring be capable of determining
impacts resulting from the operation of the injection well. In
addition, the rules shall establish requirements governing ground
water assessment and corrective actions for impacts to ground
water. Further, the rules shall require that the owner of an
injection well submit to the chief a monitoring report that has
been prepared by a qualified ground water scientist and that
includes all of the following:
(1) A determination of any impacts to ground water from the
migration of contaminants from the injection well;
(2) A list of the contaminants from the injection well that
may be causing contamination of ground water;
(3) Recommendations for actions, if any, that should be taken
to investigate or remediate the source of any ground water
contamination.
Sec. 1509.228. (A) An application for a permit for an
injection well that is submitted under section 1509.22 of the
Revised Code shall include all of the following:
(1) A listing of all injection wells that the owner of the
proposed new injection well or a key employee of the owner has
operated or is operating in this state;
(2) A listing of the injection wells that the owner or a key
employee of the owner has operated or is operating elsewhere in
the United States together with a listing of the injection wells
that the owner or a key employee of the owner has operated or is
operating outside the United States;
(3) A listing of all administrative enforcement orders issued
to the owner or a key employee of the owner, all civil actions in
which the owner or a key employee of the owner was determined by
the trier of fact to be liable in damages or was the subject of
injunctive relief or another type of civil relief, and all
criminal actions in which the owner or a key employee of the owner
pleaded guilty or was convicted, during the ten years immediately
preceding the submission of the application, in connection with
any violation by the owner or a key employee of the owner of an
applicable state or federal law pertaining to oil and gas
operations or environmental protection or the laws of another
country pertaining to oil and gas operations or environmental
protection;
(4) A listing of all administrative enforcement orders, civil
actions, or criminal actions pending at the time of the submission
of the application for a permit for an injection well in
connection with a violation of any applicable state or federal law
pertaining to oil and gas operations or environmental protection
that was alleged to have been committed by the owner or a key
employee of the owner.
The lists of injection wells operated by the owner or a key
employee of the owner within or outside this state or outside the
United States shall include all such injection wells operated by
the owner or a key employee of the owner during the ten-year
period immediately preceding the submission of the application.
(B) If the applicant for a permit for an injection well has
been involved in any prior activity involving the operation of an
injection well, the chief of the division of oil and gas resources
management may deny the application if the chief finds from the
application, the information submitted under divisions (A)(1) to
(4) of this section, pertinent information submitted to the chief,
and other pertinent information obtained by the chief at the
chief's discretion that the applicant or any other person listed
on the application, in the operation of injection wells, has a
history of substantial noncompliance with state and federal laws
pertaining to oil and gas operations or environmental protection
or the laws of another country pertaining to oil and gas
operations or environmental protection that indicates that the
applicant lacks sufficient reliability, expertise, and competence
to operate the proposed new injection well in substantial
compliance with this chapter and rules adopted under it.
(C) An owner that has submitted the information required
under division (A) of this section annually shall submit to the
chief all information required to be submitted under division (A)
of this section that has changed or been added in the immediately
preceding year. If, during that period, there have been no changes
in or additions to that information, the owner shall submit to the
chief an affidavit stating that there have been no changes in or
additions to that information during that time period. The chief
may revoke the permit for the injection well if the updated
information indicates any of the reasons specified in division (B)
of this section for the denial of an application for a permit for
an injection well.
(D) When the owner of an injection well employs a new key
employee, the owner shall submit or shall require the new key
employee to submit to the chief information regarding the new key
employee that is required to be submitted under division (A) of
this section by an applicant for a permit for an injection well.
The chief may revoke the permit for the injection well if the
information regarding the new key employee indicates any of the
reasons specified in division (B) of this section for the denial
of an application for a permit for an injection well.
(E) As used in this section:
(1) "Injection well" means a well for which an application
for a permit has been submitted under division (D) of section
1509.22 of the Revised Code.
(2) "Key employee" means an individual employed by an
applicant for a permit for an injection well in a supervisory
capacity or who is empowered to make discretionary decisions with
respect to the injection well operations of the applicant, but
does not include an employee who is exclusively engaged in the
physical or mechanical transportation or disposal of brine or
other waste substances. If the applicant has entered into a
contract with another person to operate the injection well that is
the subject of the application, "key employee" includes an
employee of the contractor who acts in a supervisory capacity or
is empowered to make discretionary decisions with respect to the
operation of the injection well.
Sec. 1509.31. (A) Whenever the entire interest of an oil and
gas lease is assigned or otherwise transferred, the assignor or
transferor shall notify the holders of the royalty interests, and,
if a well or wells exist on the lease, the division of oil and gas
resources management, of the name and address of the assignee or
transferee by certified mail, return receipt requested, not later
than thirty days after the date of the assignment or transfer.
When notice of any such assignment or transfer is required to be
provided to the division, it shall be provided on a form
prescribed and provided by the division and verified by both the
assignor or transferor and by the assignee or transferee and shall
be accompanied by a nonrefundable fee of one hundred dollars for
each well. The notice form applicable to assignments or transfers
of a well to the owner of the surface estate of the tract on which
the well is located shall contain a statement informing the
landowner that the well may require periodic servicing to maintain
its productivity; that, upon assignment or transfer of the well to
the landowner, the landowner becomes responsible for compliance
with the requirements of this chapter and rules adopted under it,
including, without limitation, the proper disposal of brine
obtained from the well, the plugging of the well when it becomes
incapable of producing oil or gas, and the restoration of the well
site; and that, upon assignment or transfer of the well to the
landowner, the landowner becomes responsible for the costs of
compliance with the requirements of this chapter and rules adopted
under it and the costs for operating and servicing the well.
(B) When the entire interest of a well is proposed to be
assigned or otherwise transferred to the landowner for use as an
exempt domestic well, the owner who has been issued a permit under
this chapter for the well shall submit to the chief of the
division of oil and gas resources management 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 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 not subject to the severance tax
levied under section 5749.02 of the Revised Code, but is subject
to all applicable fees established in this chapter.
(C) The owner holding a permit under section 1509.05 of the
Revised Code is responsible for all obligations and liabilities
imposed by this chapter and any rules, orders, and terms and
conditions of a permit adopted or issued under it, and no
assignment or transfer by the owner relieves the owner of the
obligations and liabilities until and unless the assignee or
transferee files with the division the information described in
divisions (A)(1), (2), (3), (4), (5), (10), (11), and (12) (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, 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.
Section 2. That existing sections 1509.02, 1509.06, 1509.22,
1509.221, and 1509.31 of the Revised Code are hereby repealed.
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