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S. B. No. 212 As IntroducedAs Introduced
129th General Assembly | Regular Session | 2011-2012 |
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Cosponsors:
Senators Grendell, Tavares, Brown
A BILL
To amend section 1509.74 and to enact sections
1509.031, 1509.191, 1509.192, 1509.227, and
6111.70 of the Revised Code to establish
requirements governing well stimulation, brine
disposal, and water that is used in the drilling
and operation of oil and gas wells on state land,
including a requirement that oil and gas
permittees pay a five per cent overriding royalty
for each well that is stimulated.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That section 1509.74 be amended and sections
1509.031, 1509.191, 1509.192, 1509.227, and 6111.70 of the Revised
Code be enacted to read as follows:
Sec. 1509.031. The director of environmental protection or
the director's designee and the health commissioner of the health
district in which a well is located or the commissioner's designee
may enter at any time on lands, public or private, to sample and
analyze fluids used to stimulate a well.
Sec. 1509.191. Not later than ten days before an owner
commences drilling a well, the owner shall submit to the
environmental protection agency and to the board of health of the
health district in which the well is or is to be located a
complete listing of all of the chemicals and other substances that
will be used to stimulate the well. The list shall be submitted on
a form or in a manner prescribed by the chief of the division of
oil and gas resources management.
Sec. 1509.192. On and after the effective date of this
section, if well stimulation is used in a well, the person who has
been issued a permit under section 1509.05 of the Revised Code for
the well shall pay a five per cent overriding royalty to the
director of environmental protection who shall deposit the money
from the royalty in the state treasury to the credit of the clean
water restoration fund created in section 6111.70 of the Revised
Code. The director shall adopt rules in accordance with Chapter
119. of the Revised Code establishing procedures and requirements
that are necessary for the implementation of this section.
Sec. 1509.227. An owner that commences drilling of a well
shall submit to the chief of the division of oil and gas resources
management documentation identifying where and how the owner will
dispose of brine or other waste substances resulting from,
obtained from, or produced from oil and gas production at the
well. The chief shall establish appropriate procedures for the
purpose of implementing this section.
Sec. 1509.74. Not later than two hundred seventy days after
the effective date of this section September 30, 2011, the oil and
gas leasing commission shall adopt rules in accordance with
Chapter 119. of the Revised Code establishing all of the
following:
(A) The form of and the information to be included in
nominations that are submitted under section 1509.73 of the
Revised Code;
(B) Procedures for the submission of nominations to the
commission and the amount of nomination fees to be charged. The
rules shall require that if a person who has paid a nomination fee
does not enter into a lease regarding the parcel of land that the
person nominated, the fee shall be refunded to the person, and, if
applicable, the person that enters into the lease shall pay the
nomination fee. In addition, the rules shall provide that a state
agency is exempt from nomination fees and that a person who enters
into a lease regarding a parcel of land nominated by a state
agency shall pay the nomination fee.
(C) Factors that the commission may consider when determining
whether to approve or disapprove a nomination submitted under
section 1509.73 of the Revised Code;
(D) Procedures and requirements for the submission of bids
for a lease under section 1509.73 of the Revised Code;
(E) The amount of bid fees to be charged for the submission
of bids to enter into leases under section 1509.73 of the Revised
Code;
(F) A standard lease form that is consistent with the
practices of the oil and natural gas industries and that contains
at least a one-eighth landowner royalty, which standard lease form
shall be used by a state agency for leases entered into under
section 1509.73 of the Revised Code;
(G) A requirement that, prior to drilling a well in
accordance with a lease entered into under section 1509.73 of the
Revised Code and prior to conducting well stimulation of such a
well, the person who has entered into the lease conduct baseline
testing of surface water and ground water for quantity and quality
in the leased area;
(H) A requirement that a person who has entered into a lease
under section 1509.73 of the Revised Code recycle, capture, or
treat all water used by the person when drilling and operating a
well under the lease. The rules shall require the person to
document the quantity of water used and to submit periodic reports
identifying all chemicals used in well stimulation fluid during
the term of the lease.
(I) Any other procedures and requirements that the commission
determines necessary to implement sections 1509.70 to 1509.77 of
the Revised Code.
Sec. 6111.70. There is hereby created in the state treasury
the clean water restoration fund consisting of money credited to
the fund under section 1509.192 of the Revised Code. The director
of environmental protection shall use money in the fund to
remediate and repair any water well or ground water adversely
affected by hydraulic fracturing used in an oil or natural gas
well.
Section 2. That existing section 1509.74 of the Revised Code
is hereby repealed.
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