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H. B. No. 148 As IntroducedAs Introduced
130th General Assembly | Regular Session | 2013-2014 |
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Representatives Driehaus, Hagan, R.
Cosponsors:
Representatives Antonio, Lundy, Boyd
A BILL
To amend sections 1509.01, 1509.02, 1509.03, 1509.05,
1509.06, 1509.08, 1509.21, 1509.22, 1509.222,
1509.223, and 1509.224, to enact section 1509.051,
and to repeal section 1509.226 of the Revised Code
to prohibit land application and deep well
injection of brine, to prohibit the conversion of
wells, and to eliminate the injection fee that is
levied under the Oil and Gas Law.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 1509.01, 1509.02, 1509.03, 1509.05,
1509.06, 1509.08, 1509.21, 1509.22, 1509.222, 1509.223, and
1509.224 be amended and section 1509.051 of the Revised Code be
enacted to read as follows:
Sec. 1509.01. As used in this chapter:
(A) "Well" means any borehole, whether drilled or bored,
within the state for production, extraction, or injection of any
gas or liquid mineral, excluding potable water to be used as such,
but including natural or artificial brines and oil field waters.
(B) "Oil" means crude petroleum oil and all other
hydrocarbons, regardless of gravity, that are produced in liquid
form by ordinary production methods, but does not include
hydrocarbons that were originally in a gaseous phase in the
reservoir.
(C) "Gas" means all natural gas and all other fluid
hydrocarbons that are not oil, including condensate.
(D) "Condensate" means liquid hydrocarbons separated at or
near the well pad or along the gas production or gathering system
prior to gas processing.
(E) "Pool" means an underground reservoir containing a common
accumulation of oil or gas, or both, but does not include a gas
storage reservoir. Each zone of a geological structure that is
completely separated from any other zone in the same structure may
contain a separate pool.
(F) "Field" means the general area underlaid by one or more
pools.
(G) "Drilling unit" means the minimum acreage on which one
well may be drilled, but does not apply to a well for injecting
gas into or removing gas from a gas storage reservoir.
(H) "Waste" includes all of the following:
(1) Physical waste, as that term generally is understood in
the oil and gas industry;
(2) Inefficient, excessive, or improper use, or the
unnecessary dissipation, of reservoir energy;
(3) Inefficient storing of oil or gas;
(4) Locating, drilling, equipping, operating, or producing an
oil or gas well in a manner that reduces or tends to reduce the
quantity of oil or gas ultimately recoverable under prudent and
proper operations from the pool into which it is drilled or that
causes or tends to cause unnecessary or excessive surface loss or
destruction of oil or gas;
(5) Other underground or surface waste in the production or
storage of oil, gas, or condensate, however caused.
(I) "Correlative rights" means the reasonable opportunity to
every person entitled thereto to recover and receive the oil and
gas in and under the person's tract or tracts, or the equivalent
thereof, without having to drill unnecessary wells or incur other
unnecessary expense.
(J) "Tract" means a single, individually taxed parcel of land
appearing on the tax list.
(K) "Owner," unless referring to a mine, means the person who
has the right to drill on a tract or drilling unit, to drill into
and produce from a pool, and to appropriate the oil or gas
produced therefrom either for the person or for others, except
that a person ceases to be an owner with respect to a well when
the well has been plugged in accordance with applicable rules
adopted and orders issued under this chapter. "Owner" does not
include a person who obtains a lease of the mineral rights for oil
and gas on a parcel of land if the person does not attempt to
produce or produce oil or gas from a well or obtain a permit under
this chapter for a well or if the entire interest of a well is
transferred to the person in accordance with division (B) of
section 1509.31 of the Revised Code.
(L) "Royalty interest" means the fee holder's share in the
production from a well.
(M) "Discovery well" means the first well capable of
producing oil or gas in commercial quantities from a pool.
(N) "Prepared clay" means a clay that is plastic and is
thoroughly saturated with fresh water to a weight and consistency
great enough to settle through saltwater in the well in which it
is to be used, except as otherwise approved by the chief of the
division of oil and gas resources management.
(O) "Rock sediment" means the combined cutting and residue
from drilling sedimentary rocks and formation.
(P) "Excavations and workings," "mine," and "pillar" have the
same meanings as in section 1561.01 of the Revised Code.
(Q) "Coal bearing township" means a township designated as
such by the chief of the division of mineral resources management
under section 1561.06 of the Revised Code.
(R) "Gas storage reservoir" means a continuous area of a
subterranean porous sand or rock stratum or strata into which gas
is or may be injected for the purpose of storing it therein and
removing it therefrom and includes a gas storage reservoir as
defined in section 1571.01 of the Revised Code.
(S) "Safe Drinking Water Act" means the "Safe Drinking Water
Act," 88 Stat. 1661 (1974), 42 U.S.C.A. 300(f), as amended by the
"Safe Drinking Water Amendments of 1977," 91 Stat. 1393, 42
U.S.C.A. 300(f), the "Safe Drinking Water Act Amendments of 1986,"
100 Stat. 642, 42 U.S.C.A. 300(f), and the "Safe Drinking Water
Act Amendments of 1996," 110 Stat. 1613, 42 U.S.C.A. 300(f), and
regulations adopted under those acts.
(T) "Person" includes any political subdivision, department,
agency, or instrumentality of this state; the United States and
any department, agency, or instrumentality thereof; and any legal
entity defined as a person under section 1.59 of the Revised Code.
(U) "Brine" means all saline geological formation water
resulting from, obtained from, or produced in connection with
exploration, drilling, well stimulation, production of oil or gas,
or plugging of a well.
(V) "Waters of the state" means all streams, lakes, ponds,
marshes, watercourses, waterways, springs, irrigation systems,
drainage systems, and other bodies of water, surface or
underground, natural or artificial, that are situated wholly or
partially within this state or within its jurisdiction, except
those private waters that do not combine or effect a junction with
natural surface or underground waters.
(W) "Exempt Mississippian well" means a well that meets all
of the following criteria:
(1) Was drilled and completed before January 1, 1980;
(2) Is located in an unglaciated part of the state;
(3) Was completed in a reservoir no deeper than the
Mississippian Big Injun sandstone in areas underlain by
Pennsylvanian or Permian stratigraphy, or the Mississippian Berea
sandstone in areas directly underlain by Permian stratigraphy;
(4) Is used primarily to provide oil or gas for domestic use.
(X) "Exempt domestic well" means a well that meets all of the
following criteria:
(1) Is owned by the owner of the surface estate of the tract
on which the well is located;
(2) Is used primarily to provide gas for the owner's domestic
use;
(3) Is located more than two hundred feet horizontal distance
from any inhabited private dwelling house other than an inhabited
private dwelling house located on the tract on which the well is
located;
(4) Is located more than two hundred feet horizontal distance
from any public building that may be used as a place of resort,
assembly, education, entertainment, lodging, trade, manufacture,
repair, storage, traffic, or occupancy by the public.
(Y) "Urbanized area" means an area where a well or production
facilities of a well are located within a municipal corporation or
within a township that has an unincorporated population of more
than five thousand in the most recent federal decennial census
prior to the issuance of the permit for the well or production
facilities.
(Z) "Well stimulation" or "stimulation of a well" means the
process of enhancing well productivity, including hydraulic
fracturing operations.
(AA) "Production operation" means all operations and
activities and all related equipment, facilities, and other
structures that may be used in or associated with the exploration
and production of oil, gas, or other mineral resources that are
regulated under this chapter, including operations and activities
associated with site preparation, site construction, access road
construction, well drilling, well completion, well stimulation,
well site activities, reclamation, and plugging. "Production
operation" also includes all of the following:
(1) The piping, equipment, and facilities used for the
production and preparation of hydrocarbon gas or liquids for
transportation or delivery;
(2) The processes of extraction and recovery, lifting,
stabilization, treatment, separation, production processing,
storage, waste disposal, and measurement of hydrocarbon gas and
liquids, including related equipment and facilities;
(3) The processes and related equipment and facilities
associated with production compression, gas lift, gas injection,
fuel gas supply, well drilling, well stimulation, and well
completion activities, including dikes, pits, and earthen and
other impoundments used for the temporary storage of fluids and
waste substances associated with well drilling, well stimulation,
and well completion activities.
(BB) "Annular overpressurization" means the accumulation of
fluids within an annulus with sufficient pressure to allow
migration of annular fluids into underground sources of drinking
water.
(CC) "Idle and orphaned well" means a well for which a bond
has been forfeited or an abandoned well for which no money is
available to plug the well in accordance with this chapter and
rules adopted under it.
(DD) "Temporarily inactive well" means a well that has been
granted temporary inactive status under section 1509.062 of the
Revised Code.
(EE) "Material and substantial violation" means any of the
following:
(1) Failure to obtain a permit to drill, reopen, convert,
plugback, or plug a well under this chapter;
(2) Failure to obtain, maintain, update, or submit proof of
insurance coverage that is required under this chapter;
(3) Failure to obtain, maintain, update, or submit proof of a
surety bond that is required under this chapter;
(4) Failure to plug an abandoned well or idle and orphaned
well unless the well has been granted temporary inactive status
under section 1509.062 of the Revised Code or the chief of the
division of oil and gas resources management has approved another
option concerning the abandoned well or idle and orphaned well;
(5) Failure to restore a disturbed land surface as required
by section 1509.072 of the Revised Code;
(6) Failure to reimburse the oil and gas well fund pursuant
to a final order issued under section 1509.071 of the Revised
Code;
(7) Failure to comply with a final nonappealable order of the
chief issued under section 1509.04 of the Revised Code;
(8) Failure to submit a report, test result, fee, or document
that is required in this chapter or rules adopted under it.
(FF) "Severer" has the same meaning as in section 5749.01 of
the Revised Code.
(GG) "Horizontal well" means a well that is drilled for the
production of oil or gas in which the wellbore reaches a
horizontal or near horizontal position in the Point Pleasant,
Utica, or Marcellus formation and the well is stimulated.
(HH) "Well pad" means the area that is cleared or prepared
for the drilling of one or more horizontal wells.
Sec. 1509.02. There is hereby created in the department of
natural resources the division of oil and gas resources
management, which shall be administered by the chief of the
division of oil and gas resources management. The division has
sole and exclusive authority to regulate the permitting, location,
and spacing of oil and gas wells and production operations within
the state, excepting only those activities regulated under federal
laws for which oversight has been delegated to the environmental
protection agency 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. In order
to assist the division in the furtherance of its sole and
exclusive authority as established in this section, the chief may
enter into cooperative agreements with other state agencies for
advice and consultation, including visitations at the surface
location of a well on behalf of the division. Such cooperative
agreements do not confer on other state agencies any authority to
administer or enforce this chapter and rules adopted under it. In
addition, such cooperative agreements shall not be construed to
dilute or diminish the division's sole and exclusive authority as
established in this section. Nothing in this section affects the
authority granted to the director of transportation and local
authorities in section 723.01 or 4513.34 of the Revised Code,
provided that the authority granted under those sections shall not
be exercised in a manner that discriminates against, unfairly
impedes, or obstructs oil and gas activities and operations
regulated under this chapter.
The chief shall not hold any other public office, nor shall
the chief be engaged in any occupation or business that might
interfere with or be inconsistent with the duties as chief.
All moneys collected by the chief pursuant to sections
1509.06, 1509.061, 1509.062, 1509.071, 1509.13, 1509.22, 1509.222,
1509.28, 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, 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. 1509.03. (A) The chief of the division of oil and gas
resources management shall adopt, rescind, and amend, in
accordance with Chapter 119. of the Revised Code, rules for the
administration, implementation, and enforcement of this chapter.
The rules shall include an identification of the subjects that the
chief shall address when attaching terms and conditions to a
permit with respect to a well and production facilities of a well
that are located within an urbanized area or with respect to a
horizontal well and production facilities associated with a
horizontal well. The subjects shall include all of the following:
(1) Safety concerning the drilling or operation of a well;
(2) Protection of the public and private water supply,
including the amount of water used and the source or sources of
the water;
(3) Fencing and screening of surface facilities of a well;
(4) Containment and disposal of drilling and production
wastes;
(5) Construction of access roads for purposes of the drilling
and operation of a well;
(6) Noise mitigation for purposes of the drilling of a well
and the operation of a well, excluding safety and maintenance
operations.
No person shall violate any rule of the chief adopted under
this chapter.
(B)(1) Any order issuing, denying, or modifying a permit or
notices required to be made by the chief pursuant to this chapter
shall be made in compliance with Chapter 119. of the Revised Code,
except that personal service may be used in lieu of service by
mail. Every order issuing, denying, or modifying a permit under
this chapter and described as such shall be considered an
adjudication order for purposes of Chapter 119. of the Revised
Code. Division (B)(1) of this section does not apply to a permit
issued under section 1509.06 of the Revised Code.
(2) Where notice to the owners is required by this chapter,
the notice shall be given as prescribed by a rule adopted by the
chief to govern the giving of notices. The rule shall provide for
notice by publication except in those cases where other types of
notice are necessary in order to meet the requirements of the law.
(C) The chief or the chief's authorized representative may at
any time enter upon lands, public or private, for the purpose of
administration or enforcement of this chapter, the rules adopted
or orders made thereunder, or terms or conditions of permits or
registration certificates issued thereunder and may examine and
copy records pertaining to the drilling, conversion, or operation
of a well for injection of fluids and logs required by division
(C) of section 1509.223 of the Revised Code. No person shall
prevent or hinder the chief or the chief's authorized
representative in the performance of official duties. If entry is
prevented or hindered, the chief or the chief's authorized
representative may apply for, and the court of common pleas may
issue, an appropriate inspection warrant necessary to achieve the
purposes of this chapter within the court's territorial
jurisdiction.
(D) The chief may issue orders to enforce this chapter, rules
adopted thereunder, and terms or conditions of permits issued
thereunder. Any such order shall be considered an adjudication
order for the purposes of Chapter 119. of the Revised Code. No
person shall violate any order of the chief issued under this
chapter. No person shall violate a term or condition of a permit
or registration certificate issued under this chapter.
(E) Orders of the chief denying, suspending, or revoking a
registration certificate; approving or denying approval of an
application for revision of a registered transporter's plan for
disposal; or to implement, administer, or enforce division (A) of
section 1509.224 and sections 1509.22, 1509.222, 1509.223, and
1509.225, and 1509.226 of the Revised Code pertaining to the
transportation of brine by vehicle and the disposal of brine so
transported are not adjudication orders for purposes of Chapter
119. of the Revised Code. The chief shall issue such orders under
division (A) or (B) of section 1509.224 of the Revised Code, as
appropriate.
Sec. 1509.05. No person shall drill a new well, drill an
existing well any deeper, reopen a well, convert a well to any use
other than its original purpose, or plug back a well to a source
of supply different from the existing pool, without having a
permit to do so issued by the chief of the division of oil and gas
resources management, and until the original permit or a
photostatic copy thereof is posted or displayed in a conspicuous
and easily accessible place at the well site, with the name,
current address, and telephone number of the permit holder and the
telephone numbers for fire and emergency medical services
maintained on the posted permit or copy. The permit or a copy
shall be continuously displayed in that manner at all times during
the work authorized by the permit.
Sec. 1509.051. No person shall convert a well to a use other
than its original purpose.
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) 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) 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. 1509.08. Upon receipt of an application for a permit
required by section 1509.05 of the Revised Code, or upon receipt
of an application for a permit to plug and abandon under section
1509.13 of the Revised Code, the chief of the division of oil and
gas resources management shall determine whether the well is or is
to be located in a coal bearing township.
Whether or not the well is or is to be located in a coal
bearing township, the chief, by order, may refuse to issue a
permit required by section 1509.05 of the Revised Code to any
applicant who at the time of applying for the permit is in
material or substantial violation of this chapter or rules adopted
or orders issued under it. The chief shall refuse to issue a
permit to any applicant who at the time of applying for the permit
has been found liable by a final nonappealable order of a court of
competent jurisdiction for damage to streets, roads, highways,
bridges, culverts, or drainways pursuant to section 4513.34 or
5577.12 of the Revised Code until the applicant provides the chief
with evidence of compliance with the order. No applicant shall
attempt to circumvent this provision by applying for a permit
under a different name or business organization name, by
transferring responsibility to another person or entity, by
abandoning the well or lease, or by any other similar act.
If the well is not or is not to be located in a coal bearing
township, or if it is to be located in a coal bearing township,
but the landowner submits an affidavit attesting to ownership of
the property in fee simple, including the coal, and has no
objection to the well, the chief shall issue the permit.
If the application to drill, or reopen, or convert concerns a
well that is or is to be located in a coal bearing township, the
chief shall transmit to the chief of the division of mineral
resources management two copies of the application and three
copies of the map required in section 1509.06 of the Revised Code,
except that, when the affidavit with the waiver of objection
described above is submitted, the chief of the division of oil and
gas resources management shall not transmit the copies.
The chief of the division of mineral resources management
immediately shall notify the owner or lessee of any affected mine
that the application has been filed and send to the owner or
lessee two copies of the map accompanying the application setting
forth the location of the well.
If the owner or lessee objects to the location of the well or
objects to any location within fifty feet of the original location
as a possible site for relocation of the well, the owner or lessee
shall notify the chief of the division of mineral resources
management of the objection, giving the reasons for the objection
and, if applicable, indicating on a copy of the map the particular
location or locations within fifty feet of the original location
to which the owner or lessee objects as a site for possible
relocation of the well, within six days after the receipt of the
notice. If the chief receives no objections from the owner or
lessee of the mine within ten days after the receipt of the notice
by the owner or lessee, or if in the opinion of the chief the
objections offered by the owner or lessee are not sufficiently
well founded, the chief immediately shall notify the owner or
lessee of those findings. The owner or lessee may appeal the
decision of the chief to the reclamation commission under section
1513.13 of the Revised Code. The appeal shall be filed within
fifteen days, notwithstanding provisions in divisions division
(A)(1) of section 1513.13 of the Revised Code to the contrary,
from the date on which the owner or lessee receives the notice. If
the appeal is not filed within that time, the chief immediately
shall approve the application, retain a copy of the application
and map, and return a copy of the application to the chief of the
division of oil and gas resources management with the approval
noted on it. The chief of the division of oil and gas resources
management then shall issue the permit if the provisions of this
chapter pertaining to the issuance of such a permit have been
complied with.
If the chief of the division of mineral resources management
receives an objection from the owner or lessee of the mine as to
the location of the well within ten days after receipt of the
notice by the owner or lessee, and if in the opinion of the chief
the objection is well founded, the chief shall disapprove the
application and immediately return it to the chief of the division
of oil and gas resources management together with the reasons for
disapproval and a suggestion for a new location for the well,
provided that the suggested new location shall not be a location
within fifty feet of the original location to which the owner or
lessee has objected as a site for possible relocation of the well
if the chief of the division of mineral resources management has
determined that the objection is well founded. The chief of the
division of oil and gas resources management immediately shall
notify the applicant for the permit of the disapproval and any
suggestion made by the chief of the division of mineral resources
management as to a new location for the well. The applicant may
withdraw the application or amend the application to drill the
well at the location suggested by the chief, or the applicant may
appeal the disapproval of the application by the chief to the
reclamation commission.
If the chief of the division of mineral resources management
receives no objection from the owner or lessee of a mine as to the
location of the well, but does receive an objection from the owner
or lessee as to one or more locations within fifty feet of the
original location as possible sites for relocation of the well
within ten days after receipt of the notice by the owner or
lessee, and if in the opinion of the chief the objection is well
founded, the chief nevertheless shall approve the application and
shall return it immediately to the chief of the division of oil
and gas resources management together with the reasons for
disapproving any of the locations to which the owner or lessee
objects as possible sites for the relocation of the well. The
chief of the division of oil and gas resources management then
shall issue a permit if the provisions of this chapter pertaining
to the issuance of such a permit have been complied with,
incorporating as a term or condition of the permit that the
applicant is prohibited from commencing drilling at any location
within fifty feet of the original location that has been
disapproved by the chief of the division of mineral resources
management. The applicant may appeal to the reclamation commission
the terms and conditions of the permit prohibiting the
commencement of drilling at any such location disapproved by the
chief of the division of mineral resources management.
Any such appeal shall be filed within fifteen days,
notwithstanding provisions in division (A)(1) of section 1513.13
of the Revised Code to the contrary, from the date the applicant
receives notice of the disapproval of the application, any other
location within fifty feet of the original location, or terms or
conditions of the permit, or the owner or lessee receives notice
of the chief's decision. No approval or disapproval of an
application shall be delayed by the chief of the division of
mineral resources management for more than fifteen days from the
date of sending the notice of the application to the mine owner or
lessee as required by this section.
All appeals provided for in this section shall be treated as
expedited appeals. The reclamation commission shall hear any such
appeal in accordance with section 1513.13 of the Revised Code and
issue a decision within thirty days of the filing of the notice of
appeal.
The chief of the division of oil and gas resources management
shall not issue a permit to drill a new well or reopen a well that
is or is to be located within three hundred feet of any opening of
any mine used as a means of ingress, egress, or ventilation for
persons employed in the mine, nor within one hundred feet of any
building or inflammable structure connected with the mine and
actually used as a part of the operating equipment of the mine,
unless the chief of the division of mineral resources management
determines that life or property will not be endangered by
drilling and operating the well in that location.
The chief of the division of mineral resources management may
suspend the drilling or reopening of a well in a coal bearing
township after determining that the drilling or reopening
activities present an imminent and substantial threat to public
health or safety or to miners' health or safety and having been
unable to contact the chief of the division of oil and gas
resources management to request an order of suspension under
section 1509.06 of the Revised Code. Before issuing a suspension
order for that purpose, the chief of the division of mineral
resources management shall notify the owner in a manner that in
the chief's judgment would provide reasonable notification that
the chief intends to issue a suspension order. The chief may issue
such an order without prior notification if reasonable attempts to
notify the owner have failed, but in that event notification shall
be given as soon thereafter as practical. Within five calendar
days after the issuance of the order, the chief shall provide the
owner an opportunity to be heard and to present evidence that the
activities do not present an imminent and substantial threat to
public health or safety or to miners' health or safety. If, after
considering the evidence presented by the owner, the chief
determines that the activities do not present such a threat, the
chief shall revoke the suspension order. An owner may appeal a
suspension order issued by the chief of the division of mineral
resources management under this section to the reclamation
commission in accordance with section 1513.13 of the Revised Code
or may appeal the order directly to the court of common pleas of
the county in which the well is located.
Sec. 1509.21. No (A) Except as provided in division (B) of
this section, no person shall, without first having obtained a
permit from the chief of the division of oil and gas resources
management, conduct secondary or additional recovery operations,
including any underground injection of fluids or carbon dioxide
for the secondary or tertiary recovery of oil or natural gas or
for the storage of hydrocarbons that are liquid at standard
temperature or pressure, unless a rule of the chief expressly
authorizes such operations without a permit. The permit shall be
in addition to any permit required by section 1509.05 of the
Revised Code. Secondary or additional recovery operations shall be
conducted in accordance with rules and orders of the chief and any
terms or conditions of the permit authorizing such operations. In
addition, the chief may authorize tests to evaluate whether fluids
or carbon dioxide may be injected in a reservoir and to determine
the maximum allowable injection pressure. The tests shall be
conducted in accordance with methods prescribed in rules of the
chief or conditions of the permit. Rules adopted under this
section shall include provisions regarding applications for and
the issuance of permits; the terms and conditions of permits;
entry to conduct inspections and to examine records to ascertain
compliance with this section and rules, orders, and terms and
conditions of permits adopted or issued thereunder; 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 underground injection of fluids for the secondary
or tertiary recovery of oil or natural gas or for the storage of
hydrocarbons that are liquid at standard temperature and pressure,
unless the chief concludes that the applicant has demonstrated
that the injection will not result in the presence of any
contaminant in underground water that supplies or can be
reasonably expected to supply any public water system, such that
the presence of any such 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. Rules,
orders, and terms or conditions of permits adopted or issued under
this section shall be construed to be no more stringent than
required for compliance with the Safe Drinking Water Act, unless
essential to ensure that underground sources of drinking water
will not be endangered.
(B) No person shall dispose of brine in association with a
method of enhanced recovery conducted pursuant to division (A) of
this section.
Sec. 1509.22. (A) Except when acting in accordance with
section 1509.226 of the Revised Code, no (1) No person shall place
or cause to be placed brine in or on the land or in surface or
ground water.
(2) 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)(a) Water used for consumption by humans or domestic
animals to exceed the standards of the Safe Drinking Water Act;
(2)(b) Damage or injury to public health or safety or the
environment.
(3) Divisions (A)(1) and (2) of this section apply regardless
of whether brine, crude oil, natural gas, or other fluids
associated with the exploration or development of oil and gas
resources have been treated in a public water system or other
treatment system or process.
(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 Except as provided in division (D)(2) of this
section, 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 shall include provisions regarding all of
the following:
(a) Applications for and issuance of the permits required by
this division;
(b) 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;
(c) The provision and maintenance of information through
monitoring, recordkeeping, and reporting. In addition, the rules
shall require the owner of an injection well who has been issued a
permit under division (D) of this section to quarterly submit
electronically to the chief information concerning each shipment
of brine or other waste substances received by the owner for
injection into the well.
(d) The provision and electronic reporting quarterly of
information concerning brine and other waste substances from a
transporter that is registered under section 1509.222 of the
Revised Code prior to the injection of the transported brine or
other waste substances;
(e) Any other provisions in furtherance of the goals of this
section and the Safe Drinking Water Act.
(2) The chief may adopt rules in accordance with Chapter 119.
of the Revised Code authorizing tests to evaluate whether fluids
other than brine 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 a permit issued by
the chief for that purpose. In addition, the chief may adopt rules
that do both of the following:
(a) Establish the total depth of a well for which a permit
has been applied for or issued under this division;
(b) Establish requirements and procedures to protect public
health and safety.
(3) To implement the goals of the Safe Drinking Water Act
Except as provided in division (D)(2) of this section, 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.
(4) The chief may issue an order to the owner of a well in
existence on the effective date of this amendment September 10,
2012, to make changes in the operation of the well in order to
correct problems or to address safety concerns.
(5) 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.
(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.
(H)(1) There is levied on the owner of an injection well who
has been issued a permit under division (D) of this section the
following fees:
(a) Five cents per barrel of each substance that is delivered
to a well to be injected in the well when the substance is
produced within the division of oil and gas resources management
regulatory district in which the well is located or within an
adjoining oil and gas resources management regulatory district;
(b) Twenty cents per barrel of each substance that is
delivered to a well to be injected in the well when the substance
is not produced within the division of oil and gas resources
management regulatory district in which the well is located or
within an adjoining oil and gas resources management regulatory
district.
(2) The maximum number of barrels of substance per injection
well in a calendar year on which a fee may be levied under
division (H) of this section is five hundred thousand. If in a
calendar year the owner of an injection well receives more than
five hundred thousand barrels of substance to be injected in the
owner's well and if the owner receives at least one substance that
is produced within the division's regulatory district in which the
well is located or within an adjoining regulatory district and at
least one substance that is not produced within the division's
regulatory district in which the well is located or within an
adjoining regulatory district, the fee shall be calculated first
on all of the barrels of substance that are not produced within
the division's regulatory district in which the well is located or
within an adjoining district at the rate established in division
(H)(2) of this section. The fee then shall be calculated on the
barrels of substance that are produced within the division's
regulatory district in which the well is located or within an
adjoining district at the rate established in division (H)(1) of
this section until the maximum number of barrels established in
division (H)(2) of this section has been attained.
(3) The owner of an injection well who is issued a permit
under division (D) of this section shall collect the fee levied by
division (H) of this section on behalf of the division of oil and
gas resources management and forward the fee to the division. The
chief shall transmit all money received under division (H) of this
section to the treasurer of state who shall deposit the money in
the state treasury to the credit of the oil and gas well fund
created in section 1509.02 of the Revised Code. The owner of an
injection well who collects the fee levied by this division may
retain up to three per cent of the amount that is collected.
(4) The chief shall adopt rules in accordance with Chapter
119. of the Revised Code establishing requirements and procedures
for collection of the fee levied by division (H) of this section.
Sec. 1509.222. (A)(1) Except as provided in section 1509.226
of the Revised Code, no No person shall transport brine by vehicle
in this state unless the business entity that employs the person
first registers with and obtains a registration certificate and
identification number from the chief of the division of oil and
gas resources management.
(2) No more than one registration certificate shall be
required of any business entity. Registration certificates issued
under this section are not transferable. An applicant shall file
an application with the chief, containing such information in such
form as the chief prescribes. The application shall include at
least all of the following:
(a) A list that identifies each vehicle, vessel, railcar, and
container that will be used in the transportation of brine;
(b) A plan for disposal that provides for compliance with the
requirements of this chapter and rules of the chief pertaining to
the transportation of brine by vehicle and the disposal of brine
so transported and that lists all disposal sites that the
applicant intends to use;
(c) The bond required by section 1509.225 of the Revised
Code;
(d) A certificate issued by an insurance company authorized
to do business in this state certifying that the applicant has in
force a liability insurance policy in an amount not less than
three hundred thousand dollars bodily injury coverage and three
hundred thousand dollars property damage coverage to pay damages
for injury to persons or property caused by the collecting,
handling, transportation, or disposal of brine.
The insurance policy required by division (A)(2)(d) of this
section shall be maintained in effect during the term of the
registration certificate. The policy or policies providing the
coverage shall require the insurance company to give notice to the
chief if the policy or policies lapse for any reason. Upon such
termination of the policy, the chief may suspend the registration
certificate until proper insurance coverage is obtained.
(3) Each application for a registration certificate shall be
accompanied by a nonrefundable fee of five hundred dollars.
(4) If a business entity that has been issued a registration
certificate under this section changes its name due to a business
reorganization or merger, the business entity shall revise the
bond or certificates of deposit required by section 1509.225 of
the Revised Code and obtain a new certificate from an insurance
company in accordance with division (A)(2)(e) of this section to
reflect the change in the name of the business entity.
(B) The chief shall issue an order denying an application for
a registration certificate if the chief finds that either of the
following applies:
(1) The applicant, at the time of applying for the
registration certificate, has been found liable by a final
nonappealable order of a court of competent jurisdiction for
damage to streets, roads, highways, bridges, culverts, or
drainways pursuant to section 4513.34 or 5577.12 of the Revised
Code until the applicant provides the chief with evidence of
compliance with the order.
(2) The applicant's plan for disposal does not provide for
compliance with the requirements of this chapter and rules of the
chief pertaining to the transportation of brine by vehicle and the
disposal of brine so transported.
(C) No applicant shall attempt to circumvent division (B) of
this section by applying for a registration certificate under a
different name or business organization name, by transferring
responsibility to another person or entity, or by any similar act.
(D) A registered transporter shall apply to revise a disposal
plan under procedures that the chief shall prescribe by rule.
However, at a minimum, an application for a revision shall list
all sources and disposal sites of brine currently transported. The
chief shall deny any application for a revision of a plan under
this division if the chief finds that the proposed revised plan
does not provide for compliance with the requirements of this
chapter and rules of the chief pertaining to the transportation of
brine by vehicle and the disposal of brine so transported.
Approvals and denials of revisions shall be by order of the chief.
(E) The chief may adopt rules, issue orders, and attach terms
and conditions to registration certificates as may be necessary to
administer, implement, and enforce sections 1509.222 to 1509.226
1509.225 of the Revised Code for protection of public health or
safety or conservation of natural resources.
Sec. 1509.223. (A) No permit holder or owner of a well shall
enter into an agreement with or permit any person to transport
brine produced from the well who is not registered pursuant to
section 1509.222 of the Revised Code or exempt from registration
under section 1509.226 of the Revised Code.
(B) Each registered transporter shall file with the chief of
the division of oil and gas resources management, on or before the
fifteenth day of April, a statement concerning brine transported,
including quantities transported and source and delivery points,
during the last preceding calendar year, and such other
information in such form as the chief may prescribe.
(C) Each registered transporter shall keep on each vehicle
used to transport brine a daily log and have it available upon the
request of the chief or an authorized representative of the chief
or a peace officer. The log shall, at a minimum, include all of
the following information:
(1) The name of the owner or owners of the well or wells
producing the brine to be transported;
(2) The date and time the brine is loaded;
(3) The name of the driver;
(4) The amount of brine loaded at each collection point;
(5) The disposal location;
(6) The date and time the brine is disposed of and the amount
of brine disposed of at each location.
The chief, by rule, may establish procedures for the
electronic submission to the chief of the information that is
required to be included in the daily log. No registered
transporter shall falsify or fail to keep or submit the log
required by this division.
(D) Each registered transporter shall legibly identify with
reflective paints all vehicles employed in transporting or
disposing of brine. Letters shall be no less than four inches in
height and shall indicate the identification number issued by the
chief, the word "brine," and the name and telephone number of the
transporter.
(E) The chief shall maintain and keep a current list of
persons registered to transport brine under section 1509.222 of
the Revised Code. The list shall be open to public inspection. It
is an affirmative defense to a charge under division (A) of this
section that at the time the permit holder or owner of a well
entered into an agreement with or permitted a person to transport
brine, the person was shown on the list as currently registered to
transport brine.
Sec. 1509.224. (A) In addition to any other remedies
provided in this chapter, if the chief of the division of oil and
gas resources management has reason to believe that a pattern of
the same or similar violations of any requirements of section
1509.22, 1509.222, or 1509.223 of the Revised Code, or any rule
adopted thereunder or term or condition of the registration
certificate issued thereunder exists or has existed, and the
violations are caused by the transporter's indifference, lack of
diligence, or lack of reasonable care, or are willfully caused by
the transporter, the chief shall immediately issue an order to the
transporter to show cause why the certificate should not be
suspended or revoked. After the issuance of the order, the chief
shall provide the transporter an opportunity to be heard and to
present evidence at an informal hearing conducted by the chief.
If, at the conclusion of the hearing, the chief finds that such a
pattern of violations exists or has existed, the chief shall issue
an order suspending or revoking the transporter's registration
certificate. An order suspending or revoking a certificate under
this section may be appealed under sections 1509.36 and 1509.37 of
the Revised Code, or notwithstanding any other provision of this
chapter, may be appealed directly to the court of common pleas of
Franklin county.
(B) Before issuing an order denying a registration
certificate; approving or denying approval of an application for
revision of a registered transporter's plan for disposal; or to
implement, administer, or enforce section 1509.22, 1509.222,
1509.223, or 1509.225, or 1509.226 of the Revised Code and rules
and terms and conditions of registration certificates adopted or
issued thereunder pertaining to the transportation of brine by
vehicle and the disposal of brine so transported, the chief shall
issue a preliminary order indicating the chief's intent to issue a
final order. The preliminary order shall clearly state the nature
of the chief's proposed action and the findings on which it is
based and shall state that the preliminary order becomes a final
order thirty days after its issuance unless the person to whom the
preliminary order is directed submits to the chief a written
request for an informal hearing before the chief within that
thirty-day period. At the hearing the person may present evidence
as to why the preliminary order should be revoked or modified.
Based upon the findings from the informal hearing, the chief shall
revoke, issue, or modify and issue the preliminary order as a
final order. A final order may be appealed under sections 1509.36
and 1509.37 of the Revised Code.
Section 2. That existing sections 1509.01, 1509.02, 1509.03,
1509.05, 1509.06, 1509.08, 1509.21, 1509.22, 1509.222, 1509.223,
and 1509.224 and section 1509.226 of the Revised Code are hereby
repealed.
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