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H. B. No. 596 As IntroducedAs Introduced
129th General Assembly | Regular Session | 2011-2012 |
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Cosponsor:
Representative Foley
A BILL
To amend sections 1509.06, 1509.10, and 1509.31 and
to enact section 1509.091 of the Revised Code to
revise the requirements concerning an oil and gas
permit application, an oil and gas well completion
record, designation of trade secret protection for
chemicals used to drill or stimulate an oil and
gas well, and disclosure of chemical information
to a medical professional, to require an owner to
report all chemicals brought to a well site, and
to make other changes in the Oil and Gas Law.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 1509.06, 1509.10, and 1509.31 be
amended and section 1509.091 of the Revised Code be enacted to
read as follows:
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)(a) The geological formation to be tested or used and the
proposed total depth of the well;
(b) 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.
(7) The type of drilling equipment to be used;
(8)(a) An identification, to the best of the owner's
knowledge, of each proposed source of ground water and surface
water that will be used in the production operations of the well.
The identification of each proposed source of water shall indicate
if the water will be withdrawn from the Lake Erie watershed or the
Ohio river watershed. In addition, the owner shall provide, to the
best of the owner's knowledge, the proposed estimated rate and
volume of the water withdrawal for the production operations. If
recycled water will be used in the production operations, the
owner shall provide the estimated volume of recycled water to be
used. The owner shall submit to the chief an update of any of the
information that is required by division (A)(8)(a) of this section
if any of that information changes before the chief issues a
permit for the application.
(b) Except as provided in division (A)(8)(c) of this section,
for an application for a permit to drill a new well within an
urbanized area, the results of sampling of water wells within
three hundred feet of the proposed well prior to commencement of
drilling. In addition, the owner shall include a list that
identifies the location of each water well where the owner of the
property on which the water well is located denied the owner
access to sample the water well. The sampling shall be conducted
in accordance with the guidelines established in "Best Management
Practices For Pre-drilling Water Sampling" in effect at the time
that the application is submitted. The division shall furnish
those guidelines upon request and shall make them available on the
division's web site. If the chief determines that conditions at
the proposed well site warrant a revision, the chief may revise
the distance established in this division for purposes of
pre-drilling water sampling.
(c) For an application for a permit to drill a new horizontal
well, the results of sampling of water wells within one thousand
five hundred feet of the proposed horizontal wellhead prior to
commencement of drilling. In addition, the owner shall include a
list that identifies the location of each water well where the
owner of the property on which the water well is located denied
the owner access to sample the water well. The sampling shall be
conducted in accordance with the guidelines established in "Best
Management Practices For Pre-drilling Water Sampling" in effect at
the time that the application is submitted. The division shall
furnish those guidelines upon request and shall make them
available on the division's web site. If the chief determines that
conditions at the proposed well site warrant a revision, the chief
may revise the distance established in this division for purposes
of pre-drilling water sampling.
(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) 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;
(b) For an application for a permit for a horizontal well, a
copy of an agreement concerning maintenance and safe use of the
roads, streets, and highways described in division (A)(11)(a) of
this section entered into on reasonable terms with the public
official that has the legal authority to enter into such
maintenance and use agreements for each county, township, and
municipal corporation, as applicable, in which any such road,
street, or highway is located or an affidavit on a form prescribed
by the chief attesting that the owner attempted in good faith to
enter into an agreement under division (A)(11)(b) of this section
with the applicable public official of each such county, township,
or municipal corporation, but that no agreement was executed.
(12) For an application for a permit to drill a new
horizontal well, the type, volume, and geochemistry of each fluid
that is proposed to be used to stimulate the reservoir of the
proposed well, the proposed method that will be used for the
containment of fluids recovered from the fracturing of the
proposed well, and the proposed methods that will be used for the
containment of fluids when pulled from the wellbore from swabbing
the proposed well. In addition, the application shall include an
identification of any chemical that is proposed to be added to
each fluid that is proposed to be used to stimulate the reservoir
of the proposed well and shall include the chemical's name, the
chemical abstracts service number, the chemical family name, the
trade name, the vendor, a brief description of the chemical's
intended use or function, and the proposed quantity to be used
that is reported as a percentage, by weight or volume, of the
total fluid. However, the application shall not include
information that is designated as a trade secret pursuant to
division (I)(1) of section 1509.10 of the Revised Code.
(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.
The chief shall post notice of each permit that has been
approved under this section on the division's web site not later
than two business days after the application for a permit has been
approved.
(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)(1) Prior to the commencement of well pad construction and
prior to the issuance of a permit to drill a proposed horizontal
well or 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.
(2) Prior to the issuance of a permit to drill a proposed
well, the division shall conduct a review to identify and evaluate
any site-specific terms and conditions that may be attached to the
permit if the proposed well will be located in a one-hundred-year
floodplain or within the five-year time of travel associated with
a public drinking water supply.
(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) An applicant or a permittee, as applicable, shall submit
to the chief an update of the information that is required under
division (A)(8)(a) of this section if any of that information
changes prior to commencement of production operations.
(K) In addition to a complete application to drill a new
horizontal well, an applicant also shall submit to the chief the
specific chemical identity or chemical name or other specific
information pertaining to each chemical, as applicable, for which
the chief has issued an order under division (I)(1) of section
1509.10 of the Revised Code approving a request for trade secret
designation and that is proposed to be added to each fluid that is
proposed to be used to stimulate the reservoir of the proposed
well. The applicant shall include the chemical's name, the
chemical abstracts service number, the chemical family name, the
trade name, the vendor, a brief description of the chemical's
intended use or function, and the proposed quantity to be used
that is reported as a percentage, by weight or volume, of the
total fluid. The chief shall maintain a database consisting of the
information received pursuant to this division and shall disclose
the information in the database only for the purposes specified in
division (H) of section 1509.10 of the Revised Code. The chief may
adopt rules in accordance with Chapter 119. of the Revised Code
that are necessary for the administration of this division.
(L) 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 well pad construction
and of drilling, reopening, converting, well stimulation, or
plugback operations.
Sec. 1509.091. If a chemical or a fluid containing a chemical
is brought to a well site, the owner of the well immediately shall
submit to the chief of the division of oil and gas resources
management a list that identifies each chemical or each chemical
in the fluid, as applicable, and that includes information that is
designated as a trade secret pursuant to division (I)(1) of
section 1509.10 of the Revised Code, and that identifies the well.
The chief shall maintain a database consisting of the information
received pursuant to this section and shall disclose the
information in the database only for the purposes specified in
division (H) of section 1509.10 of the Revised Code. The chief
shall adopt rules in accordance with Chapter 119. of the Revised
Code that are necessary for the administration of this section and
to preserve the confidentiality of trade secrets.
Sec. 1509.10. (A) Any person drilling within the state
shall, within sixty days after the completion of 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 oil
and gas resources management all wireline electric logs and an
accurate well completion record on a form that is prescribed by
the chief of the division of oil and gas resources management that
designates:
(1) The purpose for which the well was drilled;
(2) The character, depth, and thickness of geological units
encountered, including coal seams, mineral beds, associated fluids
such as fresh water, brine, and crude oil, natural gas, and sour
gas, if such seams, beds, fluids, or gases are known;
(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, all other
data relating to 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;
(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)(a) If applicable, the trade name and the total amount of
all products, fluids, and substances, and the supplier of each
product, fluid, or substance, not including cement and its
constituents and lost circulation materials, intentionally added
to facilitate the drilling of any portion of the well until the
surface casing is set and properly sealed. The owner shall
identify each additive used and provide a brief description of the
purpose for which the additive is used. In addition, the owner
shall include a list of all chemicals, not including any
information that is designated as a trade secret pursuant to
division (I)(1) of this section, intentionally added to all
products, fluids, or substances and include each chemical's
corresponding chemical abstracts service number and the maximum
concentration of each chemical. The owner shall obtain the
chemical information, not including any information that is
designated as a trade secret pursuant to division (I)(1) of this
section, from the company that drilled the well, provided service
at the well, or supplied the chemicals. If the company that
drilled the well, provided service at the well, or supplied the
chemicals provides incomplete or inaccurate chemical information,
the owner shall make reasonable efforts to obtain the required
information from the company or supplier.
(b) For purposes of division (A)(9)(a) of this section, if
recycled fluid was used, the total volume of recycled fluid and
the well that is the source of the recycled fluid or the
centralized facility that is the source of the recycled fluid.
(10)(a) If applicable, the type and volume of fluid, not
including cement and its constituents or information that is
designated as a trade secret pursuant to division (I)(1) of this
section, used to stimulate the reservoir of the well, the
reservoir breakdown pressure, the method used for the containment
of fluids recovered from the fracturing of the well, the methods
used for the containment of fluids when pulled from the wellbore
from swabbing the well, the average pumping rate of the well, and
the name of the person that performed the well stimulation. In
addition, the owner shall include a copy of the log from the
stimulation of the well, a copy of the invoice for each of the
procedures and methods described in division (A)(10) of this
section that were used on a well, and a copy of the pumping
pressure and rate graphs. However, the owner may redact from the
copy of each invoice that is required to be included under
division (A)(10) of this section the costs of and charges for the
procedures and methods described in division (A)(10) of this
section that were used on a well.
(b) If applicable, the trade name and the total volume of all
products, fluids, and substances, and the supplier of each
product, fluid, or substance used to stimulate the well. The owner
shall identify each additive used, provide a brief description of
the purpose for which the additive is used, and include the
maximum concentration of the additive used. In addition, the owner
shall include a list of all chemicals, not including any
information that is designated as a trade secret pursuant to
division (I)(1) of this section, intentionally added to all
products, fluids, or substances, include the name of each vendor
of each chemical, and include each chemical's corresponding
chemical abstracts service number, the chemical family name, the
trade name, a brief description of each chemical's intended use or
function, and the maximum concentration of each chemical reported
as a percentage. The owner shall obtain the chemical information,
not including any information that is designated as a trade secret
pursuant to division (I)(1) of this section, from the company that
stimulated the well or supplied the chemicals. If the company that
stimulated the well or supplied the chemicals provides incomplete
or inaccurate chemical information, the owner shall make
reasonable efforts to obtain the required information from the
company or supplier.
(c) For purposes of division (A)(10)(b) of this section, if
recycled fluid was used, the total volume of recycled fluid and
the well that is the source of the recycled fluid or the
centralized facility that is the source of the recycled fluid.
(11) The name of the company that performed the logging of
the well and the types of wireline electric logs performed on the
well.
The 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 to the division of geological survey.
(B)(1) Not later than sixty days after the completion of the
drilling operations to the proposed total depth, the owner shall
file all wireline electric logs with the division of oil and gas
resources management and the chief shall transmit such logs
electronically, if available, to the division of geological
survey. Such logs may be retained by the owner for a period of not
more than six months, or such additional time as may be granted by
the chief in writing, after the completion of the well
substantially to the depth shown in the application required by
section 1509.06 of the Revised Code.
(2) If a well is not completed within sixty days after the
completion of drilling operations, the owner shall file with the
division of oil and gas resources management a supplemental well
completion record that includes all of the information required
under this section within sixty days after the completion of the
well.
(3) After a well is initially completed and stimulated and
until the well is plugged, the owner shall report, on a form
prescribed by the chief, all materials placed into the formation
to refracture, restimulate, or newly complete the well. The owner
shall submit the information within sixty days after completing
the refracturing, restimulation, or new completion. In addition,
the owner shall report the information required in divisions
(A)(10)(a) to (c) of this section, as applicable, in a manner
consistent with the requirements established in this section.
(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 well completion record required by this
section shall be one that has been prescribed by the chief of the
division of oil and gas 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.
(E) If a material listed or designated under division (A)(9)
or (10) or (B)(3) of this section is a material for which the
division of oil and gas resources management does not have a
material safety data sheet, the owner shall provide a copy of the
material safety data sheet for the material to the chief.
(F) An owner shall submit to the chief the information that
is required in divisions (A)(10)(b) and (c) and (B)(3) of this
section consistent with the requirements established in this
section using one of the following methods:
(1) On a form prescribed by the chief;
(2) Through the chemical disclosure registry that is
maintained by the ground water protection council and the
interstate oil and gas compact commission;
(3) Any other means approved by the chief.
(G) The chief shall post on the division's web site each
material safety data sheet obtained under division (E) of this
section. In addition, the chief shall make available through the
division's web site the chemical information that is required by
divisions (A)(9) and (10) and (B)(3) of this section. If the chief
issues an order pursuant to division (I)(1) of this section
denying a request for trade secret designation and if the owner or
person requesting the trade secret designation does not appeal the
chief's order or if a court determines that the chemical identity,
the chemical name, or other specific information pertaining to the
chemical is not entitled to trade secret protection, the chief
shall make available through the division's web site the chemical
information.
(H)(1) If a medical professional, in order to assist in the
diagnosis or treatment of an individual who was may have been
affected by an incident associated with the production operations
of a well construction, drilling, stimulation, completion,
production, or other production operations at a well or by
chemical transportation accidents related to the production
operations of a well, requests the exact chemical composition of
each product, fluid, or substance and of each chemical component
in a product, fluid, or substance identity or chemical name or
other specific information pertaining to a chemical that is
designated as a trade secret pursuant to division (I) of this
section, the person claiming the trade secret protection pursuant
to that division chief shall provide to the medical professional,
as expeditiously as possible, the exact chemical composition of
the product, fluid, or substance and of the chemical component in
a product, fluid, or substance identity or chemical name or other
specified information pertaining to the chemical that is
requested.
(2) A medical professional who receives information pursuant
to division (H)(1) of this section shall keep the information
confidential and shall not disclose the information for any
purpose that is not related to the diagnosis or treatment of an
individual who was affected by an incident associated with the
production operations of a well. Nothing in division (H)(2) of
this section precludes a medical professional from making any
report required by law or professional ethical standards.
(I)(1) The owner of a well who is required to submit a well
completion record under division (A) of this section or a report
under division (B)(3) of this section or a person that provides
information to the owner as described in and for purposes of
division (A)(9) or (10) or (B)(3) of this section may designate
without disclosing request on a form prescribed by the chief and
withhold from disclosure to the chief the identity, amount,
concentration, or purpose of a product, fluid, or substance or of
a chemical component in a product, fluid, or substance as a trade
secret. The that the specific chemical identity, including the
chemical name and other specific information pertaining to the
chemical, be designated as a trade secret and withheld from
disclosure. The owner or person shall demonstrate on the form that
the information sought to be designated as a trade secret is a
trade secret as defined in section 1333.61 of the Revised Code.
After receipt and review of a form requesting trade secret
designation, the chief may request the owner or person to provide
additional information concerning the request. Not later than
sixty days after receipt of a form requesting trade secret
designation, the chief shall issue an order either approving or
denying the request for trade secret designation. The chief shall
send a copy of the order to the owner or person. The owner or
person may appeal the chief's order denying the request for trade
secret designation pursuant to section 1509.36 of the Revised
Code. The chief may adopt rules in accordance with Chapter 119. of
the Revised Code that are necessary and appropriate to administer
this division or to preserve the confidentiality of trade secrets.
(2) The owner or person may pursue enforcement of any rights
or remedies established in sections 1333.61 to 1333.69 of the
Revised Code for misappropriation, as defined in section 1333.61
of the Revised Code, with respect to the chemical identity,
amount, concentration, or purpose of a product, fluid, or
substance or a chemical component in a product, fluid, or
substance or chemical name or other specific information
pertaining to the chemical designated as a trade secret pursuant
to division (I)(1) of this section. The division shall not
disclose information regarding the chemical identity, amount,
concentration, or purpose of any product, fluid, or substance or
of any chemical component in a product, fluid, or substance or
chemical name or other specific information pertaining to the
chemical designated as a trade secret pursuant to division (I)(1)
of this section.
(2)(3) A property owner, an adjacent property owner, or any
person or agency of this state having an interest that is or may
be adversely affected by a product, fluid, or substance or by a
chemical component in a product, fluid, or substance may commence
a civil action in the court of common pleas of Franklin county
against an owner or person described in division (I)(1) of this
section challenging the owner's or person's claim to entitlement
to trade secret protection for the specific chemical identity,
amount, concentration, or purpose of a product, fluid, or
substance or of a chemical component in a product, fluid, or
substance or chemical name or other specific information
pertaining to the chemical pursuant to division (I)(1) of this
section. A person who commences a civil action pursuant to
division (I)(2)(3) of this section shall provide notice to the
chief in a manner prescribed by the chief. In the civil action,
the court shall conduct an in camera review of information
submitted by an owner or person described in division (I)(1) of
this section to determine if the chemical identity, amount,
concentration, or purpose of a product, fluid, or substance or of
a chemical component in a product, fluid, or substance or chemical
name or other specific information pertaining to the chemical
pursuant to division (I)(1) of this section is entitled to trade
secret protection.
(J)(1) Except for any information that is designated as a
trade secret pursuant to division (I)(1) of this section and
except as provided in division (J)(2) of this section, the owner
of a well shall maintain records of all chemicals placed in a well
for a period of not less than two years after the date on which
each such chemical was placed in the well. The chief may inspect
the records at any time concerning any such chemical.
(2) An owner or person who to whom the chief has designated
issued an order designating the chemical identity, amount,
concentration, or purpose of a product, fluid, or substance or of
a chemical component in a product, fluid, or substance or chemical
name or other specific information pertaining to a chemical as a
trade secret pursuant to division (I)(1) of this section shall
maintain the records for such a product, fluid, or substance or
for a chemical component in a product, fluid, or substance
chemical for a period of not less than two years after the date on
which each such product, fluid, or substance or each such chemical
component in a product, fluid, or substance chemical was placed in
the well. Upon the request of the chief, the owner or person, as
applicable, shall disclose the records to the chief if the
information is necessary to respond to a spill, release, or
investigation. However, the chief shall not disclose the
information that is designated as a trade secret.
(K)(1) For purposes of correcting inaccuracies and
incompleteness in chemical information required by divisions
(A)(9) and (10) and (B)(3) of this section, an owner shall be
considered in substantial compliance if the owner has made
reasonable efforts to obtain the required information from the
supplier.
(2) For purposes of reporting under this section, an owner is
not required to report chemicals that occur incidentally or in
trace amounts.
(L) At the same time that a well completion record is
submitted in accordance with division (A) of this section and at
the same time that a report is submitted under division (B)(3) of
this section, the owner separately shall submit to the chief the
information that is required in division (A)(9) or (10) or (B)(3)
of this section, as applicable. However, the information also
shall include the specific chemical identity or chemical name or
other specific information pertaining to a chemical, as
applicable, for which the chief has issued an order under division
(I)(1) of this section approving a request for trade secret
designation. The chief shall maintain a database consisting of the
information received pursuant to this division and shall disclose
the information in the database only for the purposes specified in
division (H) of this section. The chief may adopt rules in
accordance with Chapter 119. of the Revised Code that are
necessary for the administration of this division.
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 1509.06, 1509.10, and
1509.31 of the Revised Code are hereby repealed.
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