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S. B. No. 318 As IntroducedAs Introduced
129th General Assembly | Regular Session | 2011-2012 |
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Cosponsors:
Senators Brown, Schiavoni, Skindell
A BILL
To amend sections 1345.01, 1345.02, 1345.07, 1509.02,
1509.021, 1509.06, 1509.19, 1509.22, 1509.23, and
1509.29, to enact sections 1509.231 and 1509.80,
and to repeal section 1509.27 of the Revised Code
to require wells in urbanized areas to comply with
zoning requirements, to revise the setback
distances of a well from an occupied dwelling, to
require the disclosure of all chemicals and
substances used in hydraulic fracturing, to
eliminate mandatory pooling, to apply the Consumer
Sales Practices Act to lease agreements for the
exploration for or development of oil and gas on
residential property, to require a surety bond for
an injection well, to make other changes in the
Oil and Gas Law, and to make appropriations to
support oil and gas training programs, including
employee training grants to oil or gas well
owners.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 1345.01, 1345.02, 1345.07, 1509.02,
1509.021, 1509.06, 1509.19, 1509.22, 1509.23, and 1509.29 be
amended and sections 1509.231 and 1509.80 of the Revised Code be
enacted to read as follows:
Sec. 1345.01. As used in sections 1345.01 to 1345.13 of the
Revised Code:
(A) "Consumer transaction" means a sale, lease, assignment,
award by chance, or other transfer of an item of goods, a service,
a franchise, or an intangible, to an individual for purposes that
are primarily personal, family, or household, or solicitation to
supply any of these things. "Consumer transaction" includes a
lease agreement for the exploration for or development of oil or
gas on residential property. "Consumer transaction" does not
include transactions between persons, defined in sections 4905.03
and 5725.01 of the Revised Code, and their customers, except for
transactions involving a loan made pursuant to sections 1321.35 to
1321.48 of the Revised Code and transactions in connection with
residential mortgages between loan officers, mortgage brokers, or
nonbank mortgage lenders and their customers; transactions between
certified public accountants or public accountants and their
clients; transactions between attorneys, physicians, or dentists
and their clients or patients; and transactions between
veterinarians and their patients that pertain to medical treatment
but not ancillary services.
(B) "Person" includes an individual, corporation, government,
governmental subdivision or agency, business trust, estate, trust,
partnership, association, cooperative, or other legal entity.
(C) "Supplier" means a seller, lessor, assignor, franchisor,
or other person engaged in the business of effecting or soliciting
consumer transactions, whether or not the person deals directly
with the consumer. "Supplier" includes any person who negotiates
and enters into a lease agreement as a lessee with an individual
for the exploration for or development of oil or gas on
residential property owned by the individual. If the consumer
transaction is in connection with a residential mortgage,
"supplier" does not include an assignee or purchaser of the loan
for value, except as otherwise provided in section 1345.091 of the
Revised Code. For purposes of this division, in a consumer
transaction in connection with a residential mortgage, "seller"
means a loan officer, mortgage broker, or nonbank mortgage lender.
(D) "Consumer" means a person who engages in a consumer
transaction with a supplier.
"Consumer" includes an individual who
enters into a lease agreement as a lessor with a supplier for the
exploration for or development of oil or gas on residential
property owned by the individual.
(E) "Knowledge" means actual awareness, but such actual
awareness may be inferred where objective manifestations indicate
that the individual involved acted with such awareness.
(F) "Natural gas service" means the sale of natural gas,
exclusive of any distribution or ancillary service.
(G) "Public telecommunications service" means the
transmission by electromagnetic or other means, other than by a
telephone company as defined in section 4927.01 of the Revised
Code, of signs, signals, writings, images, sounds, messages, or
data originating in this state regardless of actual call routing.
"Public telecommunications service" excludes a system, including
its construction, maintenance, or operation, for the provision of
telecommunications service, or any portion of such service, by any
entity for the sole and exclusive use of that entity, its parent,
a subsidiary, or an affiliated entity, and not for resale,
directly or indirectly; the provision of terminal equipment used
to originate telecommunications service; broadcast transmission by
radio, television, or satellite broadcast stations regulated by
the federal government; or cable television service.
(H)(1) "Loan officer" means an individual who for
compensation or gain, or in anticipation of compensation or gain,
takes or offers to take a residential mortgage loan application;
assists or offers to assist a buyer in obtaining or applying to
obtain a residential mortgage loan by, among other things,
advising on loan terms, including rates, fees, and other costs;
offers or negotiates terms of a residential mortgage loan; or
issues or offers to issue a commitment for a residential mortgage
loan. "Loan officer" also includes a loan originator as defined in
division (E)(1) of section 1322.01 of the Revised Code.
(2) "Loan officer" does not include an employee of a bank,
savings bank, savings and loan association, credit union, or
credit union service organization organized under the laws of this
state, another state, or the United States; an employee of a
subsidiary of such a bank, savings bank, savings and loan
association, or credit union; or an employee of an affiliate that
(a) controls, is controlled by, or is under common control with,
such a bank, savings bank, savings and loan association, or credit
union and (b) is subject to examination, supervision, and
regulation, including with respect to the affiliate's compliance
with applicable consumer protection requirements, by the board of
governors of the federal reserve system, the comptroller of the
currency, the office of thrift supervision, the federal deposit
insurance corporation, or the national credit union
administration.
(I) "Residential mortgage" or "mortgage" means an obligation
to pay a sum of money evidenced by a note and secured by a lien
upon real property located within this state containing two or
fewer residential units or on which two or fewer residential units
are to be constructed and includes such an obligation on a
residential condominium or cooperative unit.
(J)(1) "Mortgage broker" means any of the following:
(a) A person that holds that person out as being able to
assist a buyer in obtaining a mortgage and charges or receives
from either the buyer or lender money or other valuable
consideration readily convertible into money for providing this
assistance;
(b) A person that solicits financial and mortgage information
from the public, provides that information to a mortgage broker or
a person that makes residential mortgage loans, and charges or
receives from either of them money or other valuable consideration
readily convertible into money for providing the information;
(c) A person engaged in table-funding or warehouse-lending
mortgage loans that are residential mortgage loans.
(2) "Mortgage broker" does not include a bank, savings bank,
savings and loan association, credit union, or credit union
service organization organized under the laws of this state,
another state, or the United States; a subsidiary of such a bank,
savings bank, savings and loan association, or credit union; an
affiliate that (a) controls, is controlled by, or is under common
control with, such a bank, savings bank, savings and loan
association, or credit union and (b) is subject to examination,
supervision, and regulation, including with respect to the
affiliate's compliance with applicable consumer protection
requirements, by the board of governors of the federal reserve
system, the comptroller of the currency, the office of thrift
supervision, the federal deposit insurance corporation, or the
national credit union administration; or an employee of any such
entity.
(K) "Nonbank mortgage lender" means any person that engages
in a consumer transaction in connection with a residential
mortgage, except for a bank, savings bank, savings and loan
association, credit union, or credit union service organization
organized under the laws of this state, another state, or the
United States; a subsidiary of such a bank, savings bank, savings
and loan association, or credit union; or an affiliate that (1)
controls, is controlled by, or is under common control with, such
a bank, savings bank, savings and loan association, or credit
union and (2) is subject to examination, supervision, and
regulation, including with respect to the affiliate's compliance
with applicable consumer protection requirements, by the board of
governors of the federal reserve system, the comptroller of the
currency, the office of thrift supervision, the federal deposit
insurance corporation, or the national credit union
administration.
(L) For purposes of divisions (H), (J), and (K) of this
section:
(1) "Control" of another entity means ownership, control, or
power to vote twenty-five per cent or more of the outstanding
shares of any class of voting securities of the other entity,
directly or indirectly or acting through one or more other
persons.
(2) "Credit union service organization" means a CUSO as
defined in 12 C.F.R. 702.2.
(M) "Residential property" means a parcel of property to
which all of the following apply:
(1) The personal residence of an individual is located on the
property.
(2) The individual referred to in division (M)(1) of this
section owns the property.
(3) The primary purpose of the property is to provide a
location for the personal residence of the individual referred to
in division (M)(1) of this section.
Sec. 1345.02. (A) No supplier shall commit an unfair or
deceptive act or practice in connection with a consumer
transaction. Such an unfair or deceptive act or practice by a
supplier violates this section whether it occurs before, during,
or after the transaction.
(B) Without limiting the scope of division (A) of this
section, the act or practice of a supplier in representing any of
the following is deceptive:
(1) That the subject of a consumer transaction has
sponsorship, approval, performance characteristics, accessories,
uses, or benefits that it does not have;
(2) That the subject of a consumer transaction is of a
particular standard, quality, grade, style, prescription, or
model, if it is not;
(3) That the subject of a consumer transaction is new, or
unused, if it is not;
(4) That the subject of a consumer transaction is available
to the consumer for a reason that does not exist;
(5) That the subject of a consumer transaction has been
supplied in accordance with a previous representation, if it has
not, except that the act of a supplier in furnishing similar
merchandise of equal or greater value as a good faith substitute
does not violate this section;
(6) That the subject of a consumer transaction will be
supplied in greater quantity than the supplier intends;
(7) That replacement or repair is needed, if it is not;
(8) That a specific price advantage exists, if it does not;
(9) That the supplier has a sponsorship, approval, or
affiliation that the supplier does not have;
(10) That a consumer transaction involves or does not involve
a warranty, a disclaimer of warranties or other rights, remedies,
or obligations if the representation is false.
(C) In construing division (A) of this section, the court
shall give due consideration and great weight to federal trade
commission orders, trade regulation rules and guides, and the
federal courts' interpretations of subsection 45 (a)(1) of the
"Federal Trade Commission Act," 38 Stat. 717 (1914), 15 U.S.C.A.
41, as amended.
(D) No supplier shall offer to a consumer or represent that a
consumer will receive a rebate, discount, or other benefit as an
inducement for entering into a consumer transaction in return for
giving the supplier the names of prospective consumers, or
otherwise helping the supplier to enter into other consumer
transactions, if earning the benefit is contingent upon an event
occurring after the consumer enters into the transaction.
(E)(1) No supplier, in connection with a consumer transaction
involving natural gas service or public telecommunications service
to a consumer in this state, shall request or submit, or cause to
be requested or submitted, a change in the consumer's provider of
natural gas service or public telecommunications service, without
first obtaining, or causing to be obtained, the verified consent
of the consumer. For the purpose of this division and with respect
to public telecommunications service only, the procedures
necessary for verifying the consent of a consumer shall be those
prescribed by rule by the public utilities commission for public
telecommunications service under division (D) of section 4905.72
of the Revised Code. Also, for the purpose of this division, the
act, omission, or failure of any officer, agent, or other
individual, acting for or employed by another person, while acting
within the scope of that authority or employment, is the act or
failure of that other person.
(2) Consistent with the exclusion, under 47 C.F.R.
64.1100(a)(3), of commercial mobile radio service providers from
the verification requirements adopted in 47 C.F.R. 64.1100,
64.1150, 64.1160, 64.1170, 64.1180, and 64.1190 by the federal
communications commission, division (E)(1) of this section does
not apply to a provider of commercial mobile radio service insofar
as such provider is engaged in the provision of commercial mobile
radio service. However, when that exclusion no longer is in
effect, division (E)(1) of this section shall apply to such a
provider.
(3) The attorney general may initiate criminal proceedings
for a prosecution under division (C) of section 1345.99 of the
Revised Code by presenting evidence of criminal violations to the
prosecuting attorney of any county in which the offense may be
prosecuted. If the prosecuting attorney does not prosecute the
violations, or at the request of the prosecuting attorney, the
attorney general may proceed in the prosecution with all the
rights, privileges, and powers conferred by law on prosecuting
attorneys, including the power to appear before grand juries and
to interrogate witnesses before grand juries.
(F) Concerning a consumer transaction in connection with a
residential mortgage, and without limiting the scope of division
(A) or (B) of this section, the act of a supplier in doing either
of the following is deceptive:
(1) Knowingly failing to provide disclosures required under
state and federal law;
(2) Knowingly providing a disclosure that includes a material
misrepresentation.
(G) Without limiting the scope of division (A) or (B) of this
section, a consumer transaction involving a lease agreement for
the exploration for or development of oil or gas on residential
property is deceptive if the supplier has misrepresented the
financial return that the consumer can expect from the lease, the
supplier has misrepresented the prospect of a well producing oil
or gas, or the supplier has made any other representations that
are not accurate with regard to the lease.
Sec. 1345.07. (A) If the attorney general, by the attorney
general's own inquiries or as a result of complaints, has
reasonable cause to believe that a supplier has engaged or is
engaging in an act or practice that violates this chapter, and
that the action would be in the public interest, the attorney
general may bring any of the following:
(1) An action to obtain a declaratory judgment that the act
or practice violates section 1345.02, 1345.03, or 1345.031 of the
Revised Code;
(2)(a) An action, with notice as required by Civil Rule 65,
to obtain a temporary restraining order, preliminary injunction,
or permanent injunction to restrain the act or practice. If the
attorney general shows by a preponderance of the evidence that the
supplier has violated or is violating section 1345.02, 1345.03, or
1345.031 of the Revised Code, the court may issue a temporary
restraining order, preliminary injunction, or permanent injunction
to restrain and prevent the act or practice.
(b)(i) Except as provided in division (A)(2)(b)(ii) of this
section, on motion of the attorney general, or on its own motion,
the court may impose a civil penalty of not more than five
thousand dollars for each day of violation of a temporary
restraining order, preliminary injunction, or permanent injunction
issued under this section, if the supplier received notice of the
action. The civil penalties shall be paid as provided in division
(G) of this section.
(ii) If the court issues under this section a temporary
restraining order, preliminary injunction, or permanent injunction
to restrain and prevent an act or practice that is a violation of
section 1345.02 and division (A) of section 1349.81 of the Revised
Code, on motion of the attorney general, or on its own motion, the
court may impose a civil penalty of not less than five thousand
dollars and not more than fifteen thousand dollars for each day of
violation of the temporary restraining order, preliminary
injunction, or permanent injunction, if the supplier received
notice of the action. The civil penalties shall be paid as
provided in division (G) of this section.
(c) Upon the commencement of an action under division (A)(2)
of this section against a supplier who operates under a license,
permit, certificate, commission, or other authorization issued by
the supreme court or by a board, commission, department, division,
or other agency of this state, the attorney general shall
immediately notify the supreme court or agency that such an action
has been commenced against the supplier.
(3) A class action under Civil Rule 23, as amended, on behalf
of consumers who have engaged in consumer transactions in this
state for damage caused by:
(a) An act or practice enumerated in division (B) or, (D), or
(G) of section 1345.02 of the Revised Code;
(b) Violation of a rule adopted under division (B)(2) of
section 1345.05 of the Revised Code before the consumer
transaction on which the action is based;
(c) An act or practice determined by a court of this state to
violate section 1345.02, 1345.03, or 1345.031 of the Revised Code
and committed after the decision containing the determination has
been made available for public inspection under division (A)(3) of
section 1345.05 of the Revised Code.
(B) On motion of the attorney general and without bond, in
the attorney general's action under this section, the court may
make appropriate orders, including appointment of a referee or a
receiver, for sequestration of assets, to reimburse consumers
found to have been damaged, to carry out a transaction in
accordance with a consumer's reasonable expectations, to strike or
limit the application of unconscionable clauses of contracts so as
to avoid an unconscionable result, or to grant other appropriate
relief. The court may assess the expenses of a referee or receiver
against the supplier.
(C) Any moneys or property recovered by the attorney general
in an action under this section that cannot with due diligence
within five years be restored by a referee to consumers shall be
unclaimed funds reportable under Chapter 169. of the Revised Code.
(D) In addition to the other remedies provided in this
section, if the violation is an act or practice that was declared
to be unfair, deceptive, or unconscionable by rule adopted
pursuant to division (B)(2) of section 1345.05 of the Revised Code
before the consumer transaction on which the action is based
occurred or an act or practice that was determined by a court of
this state to violate section 1345.02, 1345.03, or 1345.031 of the
Revised Code and committed after the decision containing the
court's determination was made available for public inspection
pursuant to division (A)(3) of section 1345.05 of the Revised
Code, the attorney general may request and the court may impose a
civil penalty of not more than twenty-five thousand dollars
against the supplier. The civil penalties shall be paid as
provided in division (G) of this section.
(E) No action may be brought by the attorney general under
this section to recover for a transaction more than two years
after the occurrence of a violation.
(F) If a court determines that provision has been made for
reimbursement or other appropriate corrective action, insofar as
practicable, with respect to all consumers damaged by a violation,
or in any other appropriate case, the attorney general, with court
approval, may terminate enforcement proceedings brought by the
attorney general upon acceptance of an assurance from the supplier
of voluntary compliance with Chapter 1345. of the Revised Code,
with respect to the alleged violation. The assurance shall be
filed with the court and entered as a consent judgment. Except as
provided in division (A) of section 1345.10 of the Revised Code, a
consent judgment is not evidence of prior violation of such
chapter. Disregard of the terms of a consent judgment entered upon
an assurance shall be treated as a violation of an injunction
issued under this section.
(G) Civil penalties ordered pursuant to divisions (A) and (D)
of this section shall be paid as follows: one-fourth of the amount
to the treasurer of the county in which the action is brought and
three-fourths to the consumer protection enforcement fund created
by section 1345.51 of the Revised Code.
(H) The remedies available to the attorney general under this
section are cumulative and concurrent, and the exercise of one
remedy by the attorney general does not preclude or require the
exercise of any other remedy. The attorney general is not required
to use any procedure set forth in section 1345.06 of the Revised
Code prior to the exercise of any remedy set forth in this
section.
Sec. 1509.02. (A)(1) 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 Except as
provided in divisions (A)(2) and (3) of this section, the division
has
sole and exclusive authority to regulate the permitting,
location, and spacing of 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 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
(2) On and after the effective date of this amendment, no
well shall be drilled in an urbanized area unless the well will
comply with the zoning requirements of the municipal corporation
or of the township, as applicable, in which the well will be
located.
(3) 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.
(B) The chief shall not hold any other public office, nor
shall the chief be engaged in any occupation or business that
might interfere with or be inconsistent with the duties as chief.
(C) All moneys collected by the chief pursuant to sections
1509.06, 1509.061, 1509.062, 1509.071, 1509.13, 1509.22, 1509.221,
1509.222, 1509.34, and 1509.50 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, for providing financial
assistance to boards of health for purposes of rules adopted under
division (C)(2) of section 1509.23 and of section 1509.231 of the
Revised Code, 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. 1509.021. On and after June 30, 2010, all of the
following apply:
(A) The surface location of a new well or a tank battery of a
well shall not be within one hundred fifty feet of an occupied
dwelling that is located in an urbanized area unless the owner of
the land on which the occupied dwelling is located consents in
writing to the surface location of the well or tank battery of a
well less than one hundred fifty feet from the occupied dwelling
and the chief of the division of oil and gas resources management
approves the written consent of that owner. However, the chief
shall not approve the written consent of such an owner when the
surface location of a new well or a tank battery of a well will be
within one hundred feet of an occupied dwelling that is located in
an urbanized area On and after the effective date of this
amendment, no well shall be drilled within one thousand feet of an
occupied dwelling. However, a well may be drilled within three
hundred feet of an occupied dwelling if the owner of the land on
which the dwelling is located voluntarily has entered into an oil
and gas lease agreement.
(B) The surface location of a new well shall not be within
one hundred fifty feet from the property line of a parcel of land
that is not in the drilling unit of the well if the parcel of land
is located in an urbanized area and directional drilling will be
used to drill the new well unless the owner of the parcel of land
consents in writing to the surface location of the well less than
one hundred fifty feet from the property line of the parcel of
land and the chief approves the written consent of that owner.
However, the chief shall not approve the written consent of such
an owner when the surface location of a new well will be less than
one hundred feet from the property line of the owner's parcel of
land that is not in the drilling unit of the well if the parcel of
land is located in an urbanized area and directional drilling will
be used.
(C) The surface location of a new well shall not be within
two hundred feet of an occupied dwelling that is located in an
urbanized area and that is located on land that has become part of
the drilling unit of the well pursuant to a mandatory pooling
order issued under section 1509.27 of the Revised Code unless the
owner of the land on which the occupied dwelling is located
consents in writing to the surface location of the well at a
distance that is less than two hundred feet from the occupied
dwelling. However, if the owner of the land on which the occupied
dwelling is located provides such written consent, the surface
location of the well shall not be within one hundred feet of the
occupied dwelling.
If an applicant cannot identify an owner of land or if an
owner of land is not responsive to attempts by the applicant to
contact the owner, the applicant may submit an affidavit to the
chief attesting to such an unidentifiable owner or to such
unresponsiveness of an owner and attempts by the applicant to
contact the owner and include a written request to reduce the
distance of the location of the well from the occupied dwelling to
less than two hundred feet. If the chief receives such an
affidavit and written request, the chief shall reduce the distance
of the location of the well from the occupied dwelling to a
distance of not less than one hundred feet.
(D) Except as otherwise provided in division (L)(K) of this
section, the surface location of a new well shall not be within
one hundred fifty feet of the property line of a parcel of land
that is located in an urbanized area and that has become part of
the drilling unit of the well pursuant to a mandatory pooling
order issued under section 1509.27 of the Revised Code unless the
owner of the land consents in writing to the surface location of
the well at a distance that is less than one hundred fifty feet
from the owner's property line. However, if the owner of the land
provides such written consent, the surface location of the well
shall not be within seventy-five feet of the property line of the
owner's parcel of land.
If an applicant cannot identify an owner of land or if an
owner of land is not responsive to attempts by the applicant to
contact the owner, the applicant may submit an affidavit to the
chief attesting to such an unidentifiable owner or to such
unresponsiveness of an owner and attempts by the applicant to
contact the owner and include a written request to reduce the
distance of the location of the well from the property line of the
owner's parcel of land to less than one hundred fifty feet. If the
chief receives such an affidavit and written request, the chief
shall reduce the distance of the location of the well from the
property line to a distance of not less than seventy-five feet.
(E)(D) The surface location of a new tank battery of a well
shall not be within one hundred fifty feet of an occupied dwelling
that is located in an urbanized area and that is located on land
that has become part of the drilling unit of the well pursuant to
a mandatory pooling order issued under section 1509.27 of the
Revised Code unless the owner of the land on which the occupied
dwelling is located consents in writing to the location of the
tank battery at a distance that is less than one hundred fifty
feet from the occupied dwelling. However, if the owner of the land
on which the occupied dwelling is located provides such written
consent, the location of the tank battery shall not be within one
hundred feet of the occupied dwelling.
If an applicant cannot identify an owner of land or if an
owner of land is not responsive to attempts by the applicant to
contact the owner, the applicant may submit an affidavit to the
chief attesting to such an unidentifiable owner or to such
unresponsiveness of an owner and attempts by the applicant to
contact the owner and include a written request to reduce the
distance of the location of the tank battery from the occupied
dwelling to less than one hundred fifty feet. If the chief
receives such an affidavit and written request, the chief shall
reduce the distance of the location of the tank battery from the
occupied dwelling to a distance of not less than one hundred feet.
(F)(E) Except as otherwise provided in division (L)(K) of
this section, the location of a new tank battery of a well shall
not be within seventy-five feet of the property line of a parcel
of land that is located in an urbanized area and that has become
part of the drilling unit of the well pursuant to a mandatory
pooling order issued under section 1509.27 of the Revised Code
unless the owner of the land consents in writing to the location
of the tank battery at a distance that is less than seventy-five
feet from the owner's property line. However, if the owner of the
land provides such written consent, the location of the tank
battery shall not be within the property line of the owner's
parcel of land.
If an applicant cannot identify an owner of land or if an
owner of land is not responsive to attempts by the applicant to
contact the owner, the applicant may submit an affidavit to the
chief attesting to such an unidentifiable owner or to such
unresponsiveness of an owner and attempts by the applicant to
contact the owner and include a written request to reduce the
distance of the location of the tank battery from the property
line of the owner's parcel of land to less than seventy-five feet.
If the chief receives such an affidavit and written request, the
chief shall reduce the distance of the location of the tank
battery from the property line, provided that the tank battery
shall not be within the property line of the owner's parcel of
land.
(G)(F) For purposes of divisions (C) to (F)(E) of this
section, written consent of an owner of land may be provided by
any of the following:
(1) A copy of an original lease agreement as recorded in the
office of the county recorder of the county in which the occupied
dwelling or property is located that expressly provides for the
reduction of the distance of the location of a well or a tank
battery, as applicable, from an occupied dwelling or a property
line;
(2) A copy of a deed severing the oil or gas mineral rights,
as applicable, from the owner's parcel of land as recorded in the
office of the county recorder of the county in which the property
is located that expressly provides for the reduction of the
distance of the location of a well or a tank battery, as
applicable, from an occupied dwelling or a property line;
(3) A written statement that consents to the proposed
location of a well or a tank battery, as applicable, and that is
approved by the chief. For purposes of division (G)(F)(3) of this
section, an applicant shall submit a copy of a written statement
to the chief.
(H)(G) For areas that are not urbanized areas, the surface
location of a new well shall not be within one hundred feet of an
occupied private dwelling or of a public building that may be used
as a place of assembly, education, entertainment, lodging, trade,
manufacture, repair, storage, or occupancy by the public. This
division does not apply to a building or other structure that is
incidental to agricultural use of the land on which the building
or other structure is located unless the building or other
structure is used as an occupied private dwelling or for retail
trade.
(I)(H) The surface location of a new well shall not be within
one hundred feet of any other well. However, an applicant may
submit a written statement to request the chief to authorize a new
well to be located at a distance that is less than one hundred
feet from another well. If the chief receives such a written
statement, the chief may authorize a new well to be located within
one hundred feet of another well if the chief determines that the
applicant satisfactorily has demonstrated that the location of the
new well at a distance that is less than one hundred feet from
another well is necessary to reduce impacts to the owner of the
land on which the well is to be located or to the surface of the
land on which the well is to be located.
(J)(I) For areas that are not urbanized areas, the location
of a new tank battery of a well shall not be within one hundred
feet of an existing inhabited structure.
(K)(J) The location of a new tank battery of a well shall not
be within fifty feet of any other well.
(L)(K) The location of a new well or a new tank battery of a
well shall not be within fifty feet of a stream, river,
watercourse, water well, pond, lake, or other body of water.
However, the chief may authorize a new well or a new tank battery
of a well to be located at a distance that is less than fifty feet
from a stream, river, watercourse, water well, pond, lake, or
other body of water if the chief determines that the reduction in
the distance is necessary to reduce impacts to the owner of the
land on which the well or tank battery of a well is to be located
or to protect public safety or the environment.
(M)(L) The surface location of a new well or a new tank
battery of a well shall not be within fifty feet of a railroad
track or of the traveled portion of a public street, road, or
highway. This division applies regardless of whether the public
street, road, or highway has become part of the drilling unit of
the well pursuant to a mandatory pooling order issued under
section 1509.27 of the Revised Code.
(N)(M) A new oil tank shall not be within three feet of
another oil tank.
(O)(N) The surface location of a mechanical separator shall
not be within any of the following:
(1) Fifty feet of a well;
(2) Ten feet of an oil tank;
(3) One hundred feet of an existing inhabited structure.
(P)(O) A vessel that is equipped in such a manner that the
contents of the vessel may be heated shall not be within any of
the following:
(1) Fifty feet of an oil production tank;
(2) Fifty feet of a well;
(3) One hundred feet of an existing inhabited structure;
(4) If the contents of the vessel are heated by a direct fire
heater, fifty feet of a mechanical separator.
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) 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. 1509.19. (A) An owner who elects to stimulate a well
shall stimulate the well in a manner that will not endanger
underground sources of drinking water. Not later than twenty-four
hours before commencing the stimulation of a well, the owner or
the owner's authorized representative shall notify an oil and gas
resources inspector. If during the stimulation of a well damage to
the production casing or cement occurs and results in the
circulation of fluids from the annulus of the surface production
casing, the owner shall immediately terminate the stimulation of
the well and notify the chief of the division of oil and gas
resources management. If the chief determines that the casing and
the cement may be remediated in a manner that isolates the oil and
gas bearing zones of the well, the chief may authorize the
completion of the stimulation of the well. If the chief determines
that the stimulation of a well resulted in irreparable damage to
the well, the chief shall order that the well be plugged and
abandoned within thirty days of the issuance of the order.
For purposes of determining the integrity of the remediation
of the casing or cement of a well that was damaged during the
stimulation of the well, the chief may require the owner of the
well to submit cement evaluation logs, temperature surveys,
pressure tests, or a combination of such logs, surveys, and tests.
(B) Not later than ten days before an owner commences
drilling a well, the owner shall submit to the chief a complete
list 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.
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 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 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 for and issuance
of the permits required by this division; entry to conduct
inspections and to examine and copy records to ascertain
compliance with this division and rules, orders, and terms and
conditions of permits adopted or issued under it; the provision
and maintenance of information through monitoring, recordkeeping,
and reporting; and other provisions in furtherance of the goals of
this section and the Safe Drinking Water Act. To implement the
goals of the Safe Drinking Water Act, the chief shall not issue a
permit for the injection of brine or other waste substances
resulting from, obtained from, or produced in connection with oil
or gas drilling, exploration, or production unless the chief
concludes that the applicant has demonstrated that the injection
will not result in the presence of any contaminant in ground water
that supplies or can reasonably be expected to supply any public
water system, such that the presence of the contaminant may result
in the system's not complying with any national primary drinking
water regulation or may otherwise adversely affect the health of
persons. This division and rules, orders, and terms and conditions
of permits adopted or issued under it shall be construed to be no
more stringent than required for compliance with the Safe Drinking
Water Act unless essential to ensure that underground sources of
drinking water will not be endangered.
(2) Before being issued a permit under division (D)(1) of
this section, a person shall execute and file with the division of
oil and gas resources management a surety bond conditioned on
compliance with requirements established in this chapter and rules
adopted under it governing the plugging and restoration of the
well for which the permit is issued. The chief shall determine the
amount of the bond for the purposes of this division.
(E) 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) 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) 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.
Sec. 1509.23. (A) Rules of the chief of the division of oil
and gas resources management may specify practices to be followed
in the drilling and treatment of wells, production of oil and gas,
and plugging of wells for protection of public health or safety or
to prevent damage to natural resources, including specification of
the following:
(2) Minimum distances that wells and other excavations,
structures, and equipment shall be located from water wells,
streets, roads, highways, rivers, lakes, streams, ponds, other
bodies of water, railroad tracks, public or private recreational
areas, zoning districts, and buildings or other structures. Rules
adopted under division (A)(2) of this section shall not conflict
with section 1509.021 of the Revised Code.
(3) Other methods of operation;
(4) Procedures, methods, and equipment and other requirements
for equipment to prevent and contain discharges of oil and brine
from oil production facilities and oil drilling and workover
facilities consistent with and equivalent in scope, content, and
coverage to section 311(j)(1)(c) of the "Federal Water Pollution
Control Act Amendments of 1972," 86 Stat. 886, 33 U.S.C.A. 1251,
as amended, and regulations adopted under it. In addition, the
rules may specify procedures, methods, and equipment and other
requirements for equipment to prevent and contain surface and
subsurface discharges of fluids, condensates, and gases.
(B) The chief, in consultation with the emergency response
commission created in section 3750.02 of the Revised Code, shall
adopt rules in accordance with Chapter 119. of the Revised Code
that specify the information that shall be included in an
electronic database that the chief shall create and host. The
information shall be that which the chief considers to be
appropriate for the purpose of responding to emergency situations
that pose a threat to public health or safety or the environment.
At the minimum, the information shall include that which a person
who is regulated under this chapter is required to submit under
the "Emergency Planning and Community Right-To-Know Act of 1986,"
100 Stat. 1728, 42 U.S.C.A. 11001, and regulations adopted under
it.
In addition, the rules shall specify whether and to what
extent the database and the information that it contains will be
made accessible to the public. The rules shall ensure that the
database will be made available via the internet or a system of
computer disks to the emergency response commission and to every
local emergency planning committee and fire department in this
state.
(C) The chief shall adopt rules in accordance with Chapter
119. of the Revised Code doing both of the following:
(1) Establishing requirements governing ground water
monitoring by boards of health under section 1509.231 of the
Revised Code. The rules shall include, but not be limited to,
acceptable monitoring protocols to be used by boards of health in
conducting ground water monitoring and procedures for the
submission of the results of ground water monitoring to the chief
and the director of environmental protection.
(2) Establishing requirements governing the monitoring and
testing of underground or surface sources of drinking water
located in the vicinity of a well, other than an injection well,
for which a permit has been issued under this chapter to detect
negative impacts to water quality that may affect public health or
the environment. The rules shall authorize the chief to enter into
contracts with boards of health to conduct the monitoring required
in rules adopted under division (C)(2) of this section.
Sec. 1509.231. The board of health of a health district in
which is located an injection well for which a permit has been
issued under division (D) of section 1522.22 of the Revised Code
shall conduct ground water monitoring at the site and in the
vicinity of the injection well to detect negative impacts to
ground water quality that may affect public health or the
environment. The board shall report the results of the ground
water monitoring to the chief of the division of oil and gas
resources management and the director of environmental protection
each calendar quarter in accordance with rules adopted under
section 1509.23 of the Revised Code.
Sec. 1509.29. Upon application by an owner of a tract for
which a drilling permit may not be issued, and a showing by the
owner that the owner is unable to enter a voluntary pooling
agreement and that the owner would be unable to participate under
a mandatory pooling order, the chief of the division of oil and
gas resources management shall issue a permit and order
establishing the tract as an exception tract if the chief finds
that the owner would otherwise be precluded from producing oil or
gas from the owner's tract because of minimum acreage or distance
requirements. The order shall set a percentage of the maximum
daily potential production at which the well may be produced. The
percentage shall be the same as the percentage that the number of
acres in the tract bears to the number of acres in the minimum
acreage requirement that has been established under section
1509.24 or 1509.25 of the Revised Code, whichever is applicable,
but if the well drilled on the tract is located nearer to the
boundary of the tract than the required minimum distance, the
percentage may not exceed the percentage determined by dividing
the distance from the well to the boundary by the minimum distance
requirement. Within ten days after completion of the well, the
maximum daily potential production of the well shall be determined
by such drill stem, open flow, or other tests as may be required
by the chief. The chief shall require such tests, at least once
every three months, as are necessary to determine the maximum
daily potential production at that time.
Sec. 1509.80. (A)(1) If an owner hires an individual who is a
graduate of an oil and gas training program and who is a resident
of this state at the time of the hiring, the owner shall employ
the individual for not less than three years beginning on the date
on which the individual is hired by the owner.
(2) As used in division (A)(1) of this section, "oil and gas
training program" means a program that provides training in
production operations and that is developed by a community or
technical college in this state in collaboration with an
association that represents the oil and gas industry.
(B) An owner that trains employees of the owner regarding
production operations qualifies for grants from the casino
operator fund established in section 3772.34 of the Revised Code
if both of the following apply:
(1) The owner certifies to the chief of the division of oil
and gas resources management that each such employee will be
retained for not less than three years beginning on the date on
which the employee is hired by the owner.
(2) At least twenty-five per cent of the employees who are
trained by the owner are residents of this state.
(C) The chief shall adopt rules in accordance with Chapter
119. of the Revised Code to administer and enforce this section.
Section 2. That existing sections 1345.01, 1345.02, 1345.07,
1509.02, 1509.021, 1509.06, 1509.19, 1509.22, 1509.23, and 1509.29
and section 1509.27 of the Revised Code are hereby repealed.
Section 3. All items in this act are hereby appropriated as
designated out of any moneys in the state treasury to the credit
of the General Services Fund Group. For all appropriations made in
this act, those in the first column are for fiscal year 2012 and
those in the second column are for fiscal year 2013. The
appropriations made in this act are in addition to any other
appropriations made for the FY 2012-FY 2013 biennium.
BOR BOARD OF REGENTS
General Services Fund Group
5KT0 |
235681 |
|
Oil and Gas Job Training Program |
|
$ |
0 |
|
$ |
10,000,000 |
|
|
TOTAL GSF General Services Fund Group
| |
$ |
0 |
|
$ |
10,000,000 |
|
|
TOTAL ALL BUDGET FUND GROUPS
| |
$ |
0 |
|
$ |
10,000,000 |
|
|
OIL AND GAS JOB TRAINING PROGRAM
The foregoing appropriation item 235681, Oil and Gas Job
Training Program, shall be used to support oil and gas training
programs at community or technical colleges and to provide
employee training grants to oil or gas well owners pursuant to
section 1509.80 of the Revised Code as enacted by this act.
Section 4. Within the limits set forth in this act, the
Director of Budget and Management shall establish accounts
indicating the source and amount of funds for each appropriation
made in this act and shall determine the form and manner in which
appropriation accounts shall be maintained. Expenditures from
appropriations contained in this act shall be accounted for as
though made in Am. Sub. H.B. 153 of the 129th General Assembly.
The appropriations made in this act are subject to all
provisions of Am. Sub. H.B. 153 of the 129th General Assembly that
are generally applicable to such appropriations.
Section 5. Sections 3 and 4 of this act and the items of law
of which they are composed are not subject to the referendum
because they are or relate to an appropriation for current
expenses within the meaning of Ohio Constitution, Article II,
Section 1d and, therefore, go into immediate effect when this act
becomes law.
|
|