Bill Text: IL HB1562 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Illinois Oil and Gas Act and the Hydraulic Fracturing Regulatory Act. Requires as part of the permit application for drilling or hydraulic fracturing operations the written consent of each owner of a mineral interest affected by the removal of minerals in the conduct of the proposed operations and each surface owner affected by the removal of minerals in the conduct of the proposed operations, unless he or she is the mineral interest owner and has provided consent as such. Provides that notwithstanding any other provision of statutory or common law, a person shall not drill, conduct hydraulic fracturing operations, or remove minerals as a result of any means regulated by the Acts including, but not limited to, horizontal drilling, without the express, written consent of each owner of a mineral interest affected by the operations or removal of minerals in the conduct of the operations. Provides for enforcement by the Department of Natural Resources with penalties and cessation of operations for violations, and payment of treble the full market value of the mineral resource extracted in violation to the owner of the mineral interest.

Spectrum: Partisan Bill (Democrat 8-0)

Status: (Introduced - Dead) 2019-03-29 - Rule 19(a) / Re-referred to Rules Committee [HB1562 Detail]

Download: Illinois-2019-HB1562-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB1562 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED:
225 ILCS 725/1 from Ch. 96 1/2, par. 5401
225 ILCS 725/6 from Ch. 96 1/2, par. 5409
225 ILCS 725/8e new
225 ILCS 732/1-5
225 ILCS 732/1-35
225 ILCS 732/1-90 new
Amends the Illinois Oil and Gas Act and the Hydraulic Fracturing Regulatory Act. Requires as part of the permit application for drilling or hydraulic fracturing operations the written consent of each owner of a mineral interest affected by the removal of minerals in the conduct of the proposed operations and each surface owner affected by the removal of minerals in the conduct of the proposed operations, unless he or she is the mineral interest owner and has provided consent as such. Provides that notwithstanding any other provision of statutory or common law, a person shall not drill, conduct hydraulic fracturing operations, or remove minerals as a result of any means regulated by the Acts including, but not limited to, horizontal drilling, without the express, written consent of each owner of a mineral interest affected by the operations or removal of minerals in the conduct of the operations. Provides for enforcement by the Department of Natural Resources with penalties and cessation of operations for violations, and payment of treble the full market value of the mineral resource extracted in violation to the owner of the mineral interest.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Oil and Gas Act is amended by
changing Sections 1 and 6 and by adding Section 8e as follows:
(225 ILCS 725/1) (from Ch. 96 1/2, par. 5401)
Sec. 1. Unless the context otherwise requires, the words
defined in this Section have the following meanings as used in
this Act.
"Person" means any natural person, corporation,
association, partnership, governmental agency or other legal
entity, receiver, trustee, guardian, executor, administrator,
fiduciary or representative of any kind.
"Oil" means natural crude oil or petroleum and other
hydrocarbons, regardless of gravity, which are produced at the
well in liquid form by ordinary production methods or by the
use of an oil and gas separator and which are not the result of
condensation of gas after it leaves the underground reservoir.
"Gas" means all natural gas, including casinghead gas, and
all other natural hydrocarbons not defined above as oil.
"Mineral interest" means the right to extract, modify, and
sell minerals, including underground hydrocarbons, that
underlie a defined parcel of real property.

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"Pool" means a natural, underground reservoir containing
in whole or in part, a natural accumulation of oil or gas, or
both. Each productive zone or stratum of a general structure,
which is completely separated from any other zone or stratum in
the structure, is deemed a separate "pool" as used herein.
"Field" means the same general surface area which is
underlaid or appears to be underlaid by one or more pools.
"Permit" means the Department's written authorization
allowing a well to be drilled, deepened, converted, or operated
by an owner.
"Permittee" means the owner holding or required to hold the
permit, and who is also responsible for paying assessments in
accordance with Section 19.7 of this Act and, where applicable,
executing and filing the bond associated with the well as
principal and who is responsible for compliance with all
statutory and regulatory requirements pertaining to the well.
When the right and responsibility for operating a well is
vested in a receiver or trustee appointed by a court of
competent jurisdiction, the permit shall be issued to the
receiver or trustee.
"Orphan Well" means a well for which: (1) no fee assessment
under Section 19.7 of this Act has been paid or no other bond
coverage has been provided for 2 consecutive years; (2) no oil
or gas has been produced from the well or from the lease or
unit on which the well is located for 2 consecutive years; and
(3) no permittee or owner can be identified or located by the

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Department. Orphaned wells include wells that may have been
drilled for purposes other than those for which a permit is
required under this Act if the well is a conduit for oil or
salt water intrusions into fresh water zones or onto the
surface which may be caused by oil and gas operations.
"Owner" means the person who has the right to drill into
and produce from any pool, and to appropriate the production
either for the person or for the person and another, or others,
or solely for others, excluding the mineral owner's royalty if
the right to drill and produce has been granted under an oil
and gas lease. An owner may also be a person granted the right
to drill and operate an injection (Class II UIC) well
independent of the right to drill for and produce oil or gas.
When the right to drill, produce, and appropriate production is
held by more than one person, then all persons holding these
rights may designate the owner by a written operating agreement
or similar written agreement. In the absence of such an
agreement, and subject to the provisions of Sections 22.2 and
23.1 through 23.16 of this Act, the owner shall be the person
designated in writing by a majority in interest of the persons
holding these rights.
"Department" means the Department of Natural Resources.
"Director" means the Director of Natural Resources.
"Mining Board" means the State Mining Board in the
Department of Natural Resources, Office of Mines and Minerals.
"Mineral Owner's Royalty" means the share of oil and gas

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production reserved in an oil and gas lease free of all costs
by an owner of the minerals whether denominated royalty or
overriding royalty.
"Waste" means "physical waste" as that term is generally
understood in the oil and gas industry, and further includes:
(1) the locating, drilling, and producing of any oil or
gas well or wells drilled contrary to the valid order,
rules and regulations adopted by the Department under the
provisions of this Act;
(2) permitting the migration of oil, gas, or water from
the stratum in which it is found, into other strata,
thereby ultimately resulting in the loss of recoverable
oil, gas or both;
(3) the drowning with water of any stratum or part
thereof capable of producing oil or gas, except for
secondary recovery purposes;
(4) the unreasonable damage to underground, fresh or
mineral water supply, workable coal seams, or other mineral
deposits in the operations for the discovery, development,
production, or handling of oil and gas;
(5) the unnecessary or excessive surface loss or
destruction of oil or gas resulting from evaporation,
seepage, leakage or fire, especially such loss or
destruction incident to or resulting from the escape of gas
into the open air in excessive or unreasonable amounts,
provided, however, it shall not be unlawful for the

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operator or owner of any well producing both oil and gas to
burn such gas in flares when such gas is, under the other
provisions of this Act, lawfully produced, and where there
is no market at the well for such escaping gas; and where
the same is used for the extraction of casinghead gas, it
shall not be unlawful for the operator of the plant after
the process of extraction is completed, to burn such
residue in flares when there is no market at such plant for
such residue gas;
(6) permitting unnecessary fire hazards;
(7) permitting unnecessary damage to or destruction of
the surface, soil, animal, fish or aquatic life or property
from oil or gas operations.
"Drilling Unit" means the surface area allocated by an
order or regulation of the Department to the drilling of a
single well for the production of oil or gas from an individual
pool.
"Enhanced Recovery Method" means any method used in an
effort to recover hydrocarbons from a pool by injection of
fluids, gases or other substances to maintain, restore or
augment natural reservoir energy, or by introducing immiscible
or miscible gases, chemicals, other substances or heat or by
in-situ combustion, or by any combination thereof.
"Surface owner" has the meaning as defined in Section 1 of
the Severed Mineral Interest Act.
"Well-Site Equipment" means any production-related

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equipment or materials specific to the well, including motors,
pumps, pump jacks, tanks, tank batteries, separators,
compressors, casing, tubing, and rods.
(Source: P.A. 99-78, eff. 7-20-15.)
(225 ILCS 725/6) (from Ch. 96 1/2, par. 5409)
Sec. 6. The Department shall have the authority to conduct
hearings and to make such reasonable rules as may be necessary
from time to time in the proper administration and enforcement
of this Act, including the adoption of rules and the holding of
hearings for the following purposes:
(1) To require the drilling, casing and plugging of
wells to be done in such a manner as to prevent the
migration of oil or gas from one stratum to another; to
prevent the intrusion of water into oil, gas or coal
strata; to prevent the pollution of fresh water supplies by
oil, gas or salt water.
(2) To require the person desiring or proposing to
drill, deepen or convert any well for the exploration or
production of oil or gas, for injection or water supply in
connection with enhanced recovery projects, for the
disposal of salt water, brine, or other oil or gas field
wastes, or for input, withdrawal, or observation in
connection with the storage of natural gas or other liquid
or gaseous hydrocarbons before commencing the drilling,
deepening or conversion of any such well, to make

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application to the Department upon such form as the
Department may prescribe and to comply with the provisions
of this Section. The drilling, deepening or conversion of
any well is hereby prohibited until such application is
made and the applicant is issued a permit therefor as
provided by this Act. Each application for a well permit
shall include the following: (A) the The exact location of
the well, (B) the name and address of the manager,
operator, contractor, driller, or any other person
responsible for the conduct of drilling operations, (C) the
proposed depth of the well, (C-3) written consent of each
owner of a mineral interest affected by the removal of
minerals in the conduct of the proposed drilling
operations, (C-5) written consent of each surface owner
affected by the removal of minerals in the conduct of the
proposed drilling operations, unless he or she is the
mineral interest owner and has provided consent under
subparagraph (C-3) of this paragraph (2), (D) lease
ownership information, and (E) such other relevant
information as the Department may deem necessary or
convenient to effectuate the purposes of this Act.
Additionally, each applicant who has not been issued a
permit that is of record on the effective date of this
amendatory Act of 1991, or who has not thereafter made
payments of assessments under Section 19.7 of this Act for
at least 2 consecutive years preceding the application,

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shall execute, as principal, and file with the Department a
bond, executed by a surety authorized to transact business
in this State, in an amount estimated to cover the cost of
plugging the well and restoring the well site, but not to
exceed $5000, as determined by the Department for each
well, or a blanket bond in an amount not to exceed $100,000
for all wells, before drilling, deepening, converting, or
operating any well for which a permit is required that has
not previously been plugged and abandoned in accordance
with the Act. The Department shall release the bond if the
well, or all wells in the case of a blanket bond, is not
completed but is plugged and the well site restored in
accordance with the Department's rules or is completed in
accordance with the Department's rules and the permittee
pays assessments to the Department in accordance with
Section 19.7 of this Act for 2 consecutive years.
In lieu of a surety bond, the applicant may provide
cash, certificates of deposit, or irrevocable letters of
credit under such terms and conditions as the Department
may provide by rule.
The sureties on all bonds in effect on the effective
date of this amendatory Act of 1991 shall remain liable as
sureties in accordance with their undertakings until
released by the Department from further liability under the
Act. The principal on each bond in effect on the effective
date of this amendatory Act of 1991 shall be released from

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the obligation of maintaining the bond if either the well
covered by a surety bond has been plugged and the well site
restored in accordance with the Department's rules or the
principal of the surety has paid the initial assessment in
accordance with Section 19.7 and no well or well site
covered by the surety bond is in violation of the Act.
No permit shall be issued to a corporation incorporated
outside of Illinois until the corporation has been
authorized to do business in Illinois.
No permit shall be issued to an individual,
partnership, or other unincorporated entity that is not a
resident of Illinois until that individual, partnership,
or other unincorporated entity has irrevocably consented
to be sued in Illinois.
(3) To require the person assigning, transferring, or
selling any well for which a permit is required under this
Act to notify the Department of the change of ownership.
The notification shall be on a form prescribed by the
Department, shall be executed by the current permittee and
by the new permittee, or their authorized representatives,
and shall be filed with the Department within 30 days after
the effective date of the assignment, transfer or sale.
Within the 30 day notification period and prior to
operating the well, the new permittee shall pay the
required well transfer fee and, where applicable, file with
the Department the bond required under subsection (2) of

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this Section.
(4) To require the filing with the State Geological
Survey of all geophysical logs, a well drilling report and
drill cuttings or cores, if cores are required, within 90
days after drilling ceases; and to file a completion report
with the Department within 30 days after the date of first
production following initial drilling or any reworking, or
after the plugging of the well, if a dry hole. A copy of
each completion report submitted to the Department shall be
delivered to the State Geological Survey. The Department
and the State Geological Survey shall keep the reports
confidential, if requested in writing by the permittee, for
2 years after the date the permit is issued by the
Department. This confidentiality requirement shall not
prohibit the use of the report for research purposes,
provided the State Geological Survey does not publish
specific data or identify the well to which the completion
report pertains.
(5) To prevent "blowouts", "caving" and "seepage" in
the same sense that conditions indicated by such terms are
generally understood in the oil and gas business.
(6) To prevent fires.
(7) To ascertain and identify the ownership of all oil
and gas wells, producing leases, refineries, tanks,
plants, structures, and all storage and transportation
equipment and facilities.

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(8) To regulate the use of any enhanced recovery method
in oil pools and oil fields.
(9) To regulate or prohibit the use of vacuum.
(10) To regulate the spacing of wells, the issuance of
permits, and the establishment of drilling units.
(11) To regulate directional drilling of oil or gas
wells.
(12) To regulate the plugging of wells.
(13) To require that wells for which no logs or
unsatisfactory logs are supplied shall be completely
plugged with cement from bottom to top.
(14) To require a description in such form as is
determined by the Department of the method of well plugging
for each well, indicating the character of material used
and the positions and dimensions of each plug.
(15) To prohibit waste, as defined in this Act.
(16) To require the keeping of such records, the
furnishing of such relevant information and the
performance of such tests as the Department may deem
necessary to carry into effect the purposes of this Act.
(17) To regulate the disposal of salt or
sulphur-bearing water and any oil field waste produced in
the operation of any oil or gas well.
(18) To prescribe rules, conduct inspections and
require compliance with health and safety standards for the
protection of persons working underground in connection

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with any oil and gas operations. For the purposes of this
paragraph, oil and gas operations include drilling or
excavation, production operations, plugging or filling in
and sealing, or any other work requiring the presence of
workers in shafts or excavations beneath the surface of the
earth. Rules promulgated by the Department may include
minimum qualifications of persons performing tasks
affecting the health and safety of workers underground,
minimum standards for the operation and maintenance of
equipment, and safety procedures and precautions, and
shall conform, as nearly as practicable, to corresponding
qualifications, standards and procedures prescribed under
the Coal Mining Act.
(19) To deposit the amount of any forfeited surety bond
or other security in the Plugging and Restoration Fund, a
special fund in the State treasury which is hereby created;
to deposit into the Fund any amounts collected, reimbursed
or recovered by the Department under Sections 19.5, 19.6
and 19.7 of this Act; to accept, receive, and deposit into
the Fund any grants, gifts or other funds which may be made
available from public or private sources and all earnings
received from investment of monies in the Fund; and to make
expenditures from the Fund for the purposes of plugging,
replugging or repairing any well, and restoring the site of
any well, determined by the Department to be abandoned or
ordered by the Department to be plugged, replugged,

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repaired or restored under Sections 8a, 19 or 19.1 of this
Act, including expenses in administering the Fund.
For the purposes of this Act, the State Geological Survey
shall co-operate with the Department in making available its
scientific and technical information on the oil and gas
resources of the State, and the Department shall in turn
furnish a copy to the State Geological Survey of all drilling
permits as issued, and such other drilling and operating data
received or secured by the Department which are pertinent to
scientific research on the State's mineral resources.
(Source: P.A. 86-205; 86-364; 86-1177; 87-744.)
(225 ILCS 725/8e new)
Sec. 8e. Mineral interest owner consent.
(a) Notwithstanding any other provision of statutory or
common law, a person shall not drill or remove minerals as a
result of any means regulated by this Act, including, but not
limited to, horizontal drilling, without the express, written
consent of each owner of a mineral interest affected by the
drilling or removal of minerals in the conduct of the drilling
operations.
(b) Any person who violates or refuses to comply with any
of the provisions of this Section shall be subject to the
provisions of Sections 8a and 19.1 of this Act.
(c) If the Department finds that a person or permittee has
violated this Section, in addition to permanent cessation of

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the operations in violation of this Section and any civil or
other penalty assessed by the Department, the person or
permittee shall be ordered to pay treble the full market value
of the mineral resource extracted in violation of this Act to
the owner of the mineral interest.
(d) Nothing in this Section shall be construed to prohibit
any owner of a mineral interest from initiating a civil cause
of action in any court with jurisdiction for an alleged
violation of this Section for compensatory or punitive damages,
or both.
Section 10. The Hydraulic Fracturing Regulatory Act is
amended by changing Sections 1-5 and 1-35 and by adding Section
1-90 as follows:
(225 ILCS 732/1-5)
Sec. 1-5. Definitions. For the purposes of this Act, unless
the context otherwise requires:
"Agency" means the Illinois Environmental Protection
Agency.
"Aquatic life" means all fish, reptiles, amphibians,
crayfish, and mussels.
"Aquifer" means saturated (with groundwater) soils and
geologic materials that are sufficiently permeable to readily
yield economically useful quantities (at least 70 gallons per
minute) of fresh water to wells, springs, or streams under

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ordinary hydraulic gradients. "Aquifer" is limited to aquifers
identified as major sand and gravel aquifers in the Illinois
State Water Survey's Illinois Community Water Supply Wells map,
Map Series 2006-01.
"Base fluid" means the continuous phase fluid type,
including, but not limited to, water used in a high volume
horizontal hydraulic fracturing operation.
"BTEX" means benzene, toluene, ethylbenzene, and xylene.
"Chemical" means any element, chemical compound, or
mixture of elements or compounds that has its own specific name
or identity, such as a Chemical Abstracts Service number,
regardless of whether the chemical is subject to the
requirements of paragraph (2) of subsection (g) of 29 Code of
Federal Regulations §1910.1200.
"Chemical Abstracts Service" means the division of the
American Chemical Society that is the globally recognized
authority for information on chemical substances.
"Chemical Abstracts Service number" or "CAS number" means
the unique identification number assigned to a chemical by the
Chemical Abstracts Service.
"Completion combustion device" means any ignition device,
installed horizontally or vertically, used in exploration and
production operations to combust otherwise vented emissions.
"Delineation well" means a well drilled in order to
determine the boundary of a field or producing reservoir.
"Department" means the Illinois Department of Natural

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Resources.
"Diesel" means a substance having any one of the following
Chemical Abstracts Service Registry numbers: 68334-30-5;
68476-34-6; 68476-30-2; 68476-31-3; 8008-20-6; or 68410-00-4.
"Diesel" includes any additional substances regulated by the
United States Environmental Protection Agency as diesel fuel
used in hydraulic fracturing activities under the federal Safe
Drinking Water Act.
"Director" means the Director of Natural Resources.
"Enhanced oil recovery operation" means any secondary or
tertiary recovery method used in an effort to recover
hydrocarbons from a pool by injection of fluids, gases or other
substances to maintain, restore, or augment natural reservoir
energy, or by introducing gases, chemicals, other substances,
or heat, or by in-situ combustion, or by any combination
thereof.
"Flare" means a thermal oxidation system using an open,
enclosed, or semi-enclosed flame. "Flare" does not include
completion combustion devices as defined in this Section.
"Flowback period" means the process of allowing fluids to
flow from a well following a treatment, either in preparation
for a subsequent phase of treatment or in preparation for
cleanup and returning the well to production. "Flowback period"
begins when the material the hydraulic fracturing fluid returns
to the surface following hydraulic fracturing or
re-fracturing. "Flowback period" ends with either well shut in

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or when the well is producing continuously to the flow line or
to a storage vessel for collection, whichever occurs first.
"Fresh water" means surface and subsurface water in its
natural state that is suitable for drinking water for human
consumption, domestic livestock, irrigation, industrial,
municipal and recreational purposes, that is capable of
supporting aquatic life, and contains less than 10,000 ppm
total dissolved solids.
"Gas" means all natural gas, including casinghead gas, and
all other natural hydrocarbons not defined as oil.
"Groundwater" means any water below the land surface that
is within the saturated zone or geologic materials where the
fluid pressure in the pore space is equal to or greater than
atmospheric pressure.
"Health professional" means a physician, physician
assistant, nurse practitioner, a registered professional
nurse, emergency medical technician, or other individual
appropriately licensed or registered to provide health care
services.
"High volume horizontal hydraulic fracturing operations"
means all stages of a stimulation treatment of a horizontal
well as defined by this Act by the pressurized application of
more than 80,000 gallons per stage or more than 300,000 gallons
total of hydraulic fracturing fluid and proppant to initiate or
propagate fractures in a geologic formation to enhance
extraction or production of oil or gas.

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"High volume horizontal hydraulic fracturing permit" means
the permit issued by the Department under this Act allowing
high volume horizontal hydraulic fracturing operations to
occur at a well site.
"High volume horizontal hydraulic fracturing treatment"
shall have the same definition as "High volume horizontal
hydraulic fracturing operations".
"Horizontal well" means a well with a wellbore drilled
laterally at an angle of at least 80 degrees to the vertical
and with a horizontal projection exceeding 100 feet measured
from the initial point of penetration into the productive
formation through the terminus of the lateral in the same
common source of hydrocarbon supply.
"Hydraulic fracturing additive" means any chemical
substance or combination of chemicals, including, but not
limited to, any chemical or proppant that is added to a base
fluid for the purposes of preparing a hydraulic fracturing
fluid for a high volume horizontal hydraulic fracturing
operation.
"Hydraulic fracturing flowback" means all hydraulic
fracturing fluid and other fluids that return to the surface
after a stage of high volume horizontal hydraulic fracturing
operations has been completed and prior to the well being
placed in production.
"Hydraulic fracturing fluid" means the mixture of the base
fluid and all the hydraulic fracturing additives, used to

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perform high volume horizontal hydraulic fracturing.
"Hydraulic fracturing string" means any pipe or casing
string used for the transport of hydraulic fracturing fluids
during the conduct of the high volume horizontal hydraulic
fracturing operations.
"Intake" means a pipe or other means to withdraw raw water
from a water source.
"Landowner" means the legal title holder or owner of real
property and includes an owner of an undivided interest, a life
tenant, a remainderman, a public or private corporation, a
trustee under an active trust, and the holder of the beneficial
interest under a land trust. "Landowner" does not include a
mortgagee, a trustee under a trust deed in the nature of a
mortgage, a lien holder, or a lessee.
"Low pressure well" means a well with reservoir pressure
and vertical well depth such that 0.445 times the reservoir
pressure (in psia) minus 0.038 times the vertical well depth
(in feet) minus 67.578 psia is less than the flow line pressure
at the sales meter.
"Mineral interest" means the right to extract, modify, and
sell minerals, including underground hydrocarbons, that
underlie a defined parcel of real property.
"Nature preserve" shall have the same meaning as provided
in Section 3.11 of the Illinois Natural Areas Preservation Act.
"Oil" means natural crude oil or petroleum and other
hydrocarbons, regardless of gravity, which are produced at the

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well in liquid form by ordinary production methods or by the
use of an oil and gas separator and which are not the result of
condensation of gas after it leaves the underground reservoir.
"Operator" means the individual or entity controlling the
right to drill or produce a horizontal well in accordance with
the requirements of the Illinois Oil and Gas Act.
"Owner" shall have the same meaning as provided in Section
1 of the Illinois Oil and Gas Act.
"Perennial stream" means a stream that has continuous flow
in its stream bed during all of the calendar year.
"Permit" means a high volume horizontal hydraulic
fracturing permit.
"Permittee" means a person holding a high volume horizontal
hydraulic fracturing permit under this Act.
"Person" means any individual, partnership,
co-partnership, firm, company, limited liability company,
corporation, association, joint stock company, trust, estate,
political subdivision, state agency, or any other legal entity
or their legal representative, agent, or assigns.
"Pollution or diminution" means:
(1) in groundwater, any of the following:
(A) detection of benzene or any other carcinogen in
any Class I, Class II, or Class III groundwater;
(B) detection of any constituent in item (i) of
subparagraph (A) of paragraph (3) of subsection (a) of
35 Ill. Adm. Code 620.310 equal to or above the listed

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preventive response criteria in any Class I, Class II,
or Class III groundwater;
(C) detection of any constituent in 35 Ill. Adm.
Code 620.410 (a), (b), (c), (d) or (e) equal to or
above the listed standard in any Class I, Class II, or
Class III groundwater;
(D) detection of any constituent in Class III
groundwater equal to or above a standard established
under 35 Ill. Adm. Code 620.260; or
(E) detection of any constituent in Class I, Class
II, or Class III groundwater equal to or above a
cleanup objective listed in 35 Ill. Adm. Code 742.
(2) in surface water, exceeding any applicable numeric
or narrative standard in 35 Ill. Adm. Code Part 302 or Part
304.
"Produced water" means water, regardless of chloride and
total dissolved solids content, that is produced in conjunction
with oil or natural gas production or natural gas storage
operations, but does not include hydraulic fracturing
flowback.
"Proppant" means sand or any natural or man-made material
that is used during high volume horizontal hydraulic fracturing
operations to prop open the artificially created or enhanced
fractures.
"Public water supply" means all mains, pipes, and
structures through which water is obtained and distributed to

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the public, including wells and well structures, intakes and
cribs, pumping stations, treatment plants, reservoirs, and
storage tanks and appurtenances, collectively or severally,
actually used or intended for use for the purpose of furnishing
water for drinking or general domestic use, and which serves at
least 15 service connections or which regularly serves at least
25 persons at least 60 days per year.
"Register of Land and Water Reserves" means the list of
areas registered in accordance with Section 16 of the Illinois
Natural Areas Preservation Act and Part 4010 of Title 17 of the
Illinois Administrative Code.
"Release" means any spilling, leaking, pumping, pouring,
emitting, emptying, discharging, injecting, escaping,
leaching, dumping, or disposing into the environment.
"Serious violation" means any violation set forth in 62
Ill. Adm. Code 240.140(c).
"Service connection" means the opening, including all
fittings and appurtenances, at the water main through which
water is supplied to the user.
"Surface owner" has the meaning as defined in Section 1 of
the Severed Mineral Interest Act.
"Surface water" means all water that is open to the
atmosphere and subject to surface runoff.
"Total water volume" means the total quantity of water from
all sources used in the high volume horizontal hydraulic
fracturing operations, including surface water, groundwater,

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produced water, or recycled water.
"True vertical depth" or "TVD" means the vertical distance
from a depth in a planned or existing wellbore or well to a
point at the surface.
"Water pollution" means any alteration of the physical,
thermal, chemical, biological, or radioactive properties of
any waters of the State, or the discharge of any contaminant
into any water of the State, as will or is likely to create a
nuisance or render the waters harmful, detrimental, or
injurious to public health, safety, or welfare, or to domestic,
commercial, industrial, agricultural, recreational, or other
legitimate uses, or to livestock, wild animals, birds, or fish
or other aquatic life.
"Water source" means (1) any existing water well or
developed spring used for human or domestic animal consumption,
or (2) any river, perennial stream, aquifer, natural or
artificial lake, pond, wetland listed on the Register of Land
and Water Reserves, or reservoir.
"Well" means any drill hole required to be permitted under
the Illinois Oil and Gas Act.
"Well site" means surface areas, including the well,
occupied by all equipment or facilities necessary for or
incidental to high volume horizontal hydraulic fracturing
operations, drilling, production, or plugging a well.
"Wildcat well" means a well outside known fields or the
first well drilled in an oil or gas field where no other oil

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and gas production exists.
"Wildlife" means any bird or mammal that are by nature wild
by way of distinction from those that are naturally tame and
are ordinarily living unconfined in a state of nature without
the care of man.
(Source: P.A. 98-22, eff. 6-17-13.)
(225 ILCS 732/1-35)
Sec. 1-35. High volume horizontal hydraulic fracturing
permit application.
(a) Every applicant for a permit under this Act shall first
register with the Department at least 30 days before applying
for a permit. The Department shall make available a
registration form within 90 days after the effective date of
this Act. The registration form shall require the following
information:
(1) the name and address of the registrant and any
parent, subsidiary, or affiliate thereof;
(2) disclosure of all findings of a serious violation
or an equivalent violation under federal or state laws or
regulations in the development or operation of an oil or
gas exploration or production site via hydraulic
fracturing by the applicant or any parent, subsidiary, or
affiliate thereof within the previous 5 years; and
(3) proof of insurance to cover injuries, damages, or
loss related to pollution or diminution in the amount of at

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least $5,000,000, from an insurance carrier authorized,
licensed, or permitted to do this insurance business in
this State that holds at least an A- rating by A.M. Best &
Co. or any comparable rating service.
A registrant must notify the Department of any change in
the information identified in paragraphs (1), (2), or (3) of
this subsection (a) at least annually or upon request of the
Department.
(b) Every applicant for a permit under this Act must submit
the following information to the Department on an application
form provided by the Department:
(1) the name and address of the applicant and any
parent, subsidiary, or affiliate thereof;
(2) the proposed well name and address and legal
description of the well site and its unit area;
(3) a statement whether the proposed location of the
well site is in compliance with the requirements of Section
1-25 of this Act and a plat, which shows the proposed
surface location of the well site, providing the distance
in feet, from the surface location of the well site to the
features described in subsection (a) of Section 1-25 of
this Act;
(4) a detailed description of the proposed well to be
used for the high volume horizontal hydraulic fracturing
operations including, but not limited to, the following
information:

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(A) the approximate total depth to which the well
is to be drilled or deepened;
(B) the proposed angle and direction of the well;
(C) the actual depth or the approximate depth at
which the well to be drilled deviates from vertical;
(D) the angle and direction of any nonvertical
portion of the wellbore until the well reaches its
total target depth or its actual final depth; and
(E) the estimated length and direction of the
proposed horizontal lateral or wellbore;
(5) the estimated depth and elevation, according to the
most recent publication of the Illinois State Geological
Survey of Groundwater for the location of the well, of the
lowest potential fresh water along the entire length of the
proposed wellbore;
(6) a detailed description of the proposed high volume
horizontal hydraulic fracturing operations, including, but
not limited to, the following:
(A) the formation affected by the high volume
horizontal hydraulic fracturing operations, including,
but not limited to, geologic name and geologic
description of the formation that will be stimulated by
the operation;
(B) the anticipated surface treating pressure
range;
(C) the maximum anticipated injection treating

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pressure;
(D) the estimated or calculated fracture pressure
of the producing and confining zones; and
(E) the planned depth of all proposed perforations
or depth to the top of the open hole section;
(7) a plat showing all known previous wellbores within
750 feet of any part of the horizontal wellbore that
penetrated within 400 vertical feet of the formation that
will be stimulated as part of the high volume horizontal
hydraulic fracturing operations;
(8) unless the applicant documents why the information
is not available at the time the application is submitted,
a chemical disclosure report identifying each chemical and
proppant anticipated to be used in hydraulic fracturing
fluid for each stage of the hydraulic fracturing operations
including the following:
(A) the total volume of water anticipated to be
used in the hydraulic fracturing treatment of the well
or the type and total volume of the base fluid
anticipated to be used in the hydraulic fracturing
treatment, if something other than water;
(B) each hydraulic fracturing additive anticipated
to be used in the hydraulic fracturing fluid, including
the trade name, vendor, a brief descriptor of the
intended use or function of each hydraulic fracturing
additive, and the Material Safety Data Sheet (MSDS), if

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applicable;
(C) each chemical anticipated to be intentionally
added to the base fluid, including for each chemical,
the Chemical Abstracts Service number, if applicable;
and
(D) the anticipated concentration in the base
fluid, in percent by mass, of each chemical to be
intentionally added to the base fluid;
(9) a certification of compliance with the Water Use
Act of 1983 and applicable regional water supply plans;
(10) a fresh water withdrawal and management plan that
shall include the following information:
(A) the source of the water, such as surface or
groundwater, anticipated to be used for water
withdrawals, and the anticipated withdrawal location;
(B) the anticipated volume and rate of each water
withdrawal from each withdrawal location;
(C) the anticipated months when water withdrawals
shall be made from each withdrawal location;
(D) the methods to be used to minimize water
withdrawals as much as feasible; and
(E) the methods to be used for surface water
withdrawals to minimize adverse impact to aquatic
life.
Where a surface water source is wholly contained within
a single property, and the owner of the property expressly

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agrees in writing to its use for water withdrawals, the
applicant is not required to include this surface water
source in the fresh water withdrawal and management plan;
(11) a plan for the handling, storage, transportation,
and disposal or reuse of hydraulic fracturing fluids and
hydraulic fracturing flowback. The plan shall identify the
specific Class II injection well or wells that will be used
to dispose of the hydraulic fracturing flowback. The plan
shall describe the capacity of the tanks to be used for the
capture and storage of flowback and of the lined reserve
pit to be used, if necessary, to temporarily store any
flowback in excess of the capacity of the tanks.
Identification of the Class II injection well or wells
shall be by name, identification number, and specific
location and shall include the date of the most recent
mechanical integrity test for each Class II injection well;
(12) a well site safety plan to address proper safety
measures to be employed during high volume horizontal
hydraulic fracturing operations for the protection of
persons on the site as well as the general public. Within
15 calendar days after submitting the permit application to
the Department, the applicant must provide a copy of the
plan to the county or counties in which hydraulic
fracturing operations will occur. Within 5 calendar days of
its receipt, the Department shall provide a copy of the
well site safety plan to the Office of the State Fire

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Marshal;
(13) a containment plan describing the containment
practices and equipment to be used and the area of the well
site where containment systems will be employed, and within
5 calendar days of its receipt, the Department shall
provide a copy of the containment plan to the Office of the
State Fire Marshal;
(14) a casing and cementing plan that describes the
casing and cementing practices to be employed, including
the size of each string of pipe, the starting point, and
depth to which each string is to be set and the extent to
which each string is to be cemented;
(15) a traffic management plan that identifies the
anticipated roads, streets, and highways that will be used
for access to and egress from the well site. The traffic
management plan will include a point of contact to discuss
issues related to traffic management. Within 15 calendar
days after submitting the permit application to the
Department, the applicant must provide a copy of the
traffic management plan to the county or counties in which
the well site is located, and within 5 calendar days of its
receipt, the Department shall provide a copy of the traffic
management plan to the Office of the State Fire Marshal;
(16) the names and addresses of all owners of any real
property within 1,500 feet of the proposed well site, as
disclosed by the records in the office of the recorder of

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the county or counties;
(16.3) the written consent of each owner of a mineral
interest affected by the removal of minerals in the conduct
of the proposed hydraulic fracturing operations;
(16.5) written consent of each surface owner affected
by the conduct of the proposed hydraulic fracturing
operations, unless he or she is the mineral interest owner
and has provided consent under paragraph (16.3) of this
subsection (b);
(17) drafts of the specific public notice and general
public notice as required by Section 1-40 of this Act;
(18) a statement that the well site at which the high
volume horizontal hydraulic fracturing operation will be
conducted will be restored in compliance with Section
240.1181 of Title 62 of the Illinois Administrative Code
and Section 1-95 of this Act;
(19) proof of insurance to cover injuries, damages, or
loss related to pollution in the amount of at least
$5,000,000; and
(20) any other relevant information which the
Department may, by rule, require.
(c) Where an application is made to conduct high volume
horizontal fracturing operations at a well site located within
the limits of any city, village, or incorporated town, the
application shall state the name of the city, village, or
incorporated town and be accompanied with a certified copy of

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the official consent for the hydraulic fracturing operations to
occur from the municipal authorities where the well site is
proposed to be located. No permit shall be issued unless
consent is secured and filed with the permit application. In
the event that an amended location is selected, the original
permit shall not be valid unless a new certified consent is
filed for the amended location.
(d) The hydraulic fracturing permit application shall be
accompanied by a bond as required by subsection (a) of Section
1-65 of this Act.
(e) Each application for a permit under this Act shall
include payment of a non-refundable fee of $13,500. Of this
fee, $11,000 shall be deposited into the Oil and Gas Resource
Management Fund for the Department to use to administer and
enforce this Act and otherwise support the operations and
programs of the Office of Oil and Gas Resource Management. The
remaining $2,500 shall be deposited into the Illinois Clean
Water Fund for the Agency to use to carry out its functions
under this Act. The Department shall not initiate its review of
the permit application until the applicable fee under this
subsection (e) has been submitted to and received by the
Department.
(f) Each application submitted under this Act shall be
signed, under the penalty of perjury, by the applicant or the
applicant's designee who has been vested with the authority to
act on behalf of the applicant and has direct knowledge of the

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information contained in the application and its attachments.
Any person signing an application shall also sign an affidavit
with the following certification:
"I certify, under penalty of perjury as provided by law
and under penalty of refusal, suspension, or revocation of
a high volume horizontal hydraulic fracturing permit, that
this application and all attachments are true, accurate,
and complete to the best of my knowledge.".
(g) The permit application shall be submitted to the
Department in both electronic and hard copy format. The
electronic format shall be searchable.
(h) The application for a high volume horizontal hydraulic
fracturing permit may be submitted as a combined permit
application with the operator's application to drill on a form
as the Department shall prescribe. The combined application
must include the information required in this Section. If the
operator elects to submit a combined permit application,
information required by this Section that is duplicative of
information required for an application to drill is only
required to be provided once as part of the combined
application. The submission of a combined permit application
under this subsection shall not be interpreted to relieve the
applicant or the Department from complying with the
requirements of this Act or the Illinois Oil and Gas Act.
(i) Upon receipt of a permit application, the Department
shall have no more than 60 calendar days from the date it

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receives the permit application to approve, with any conditions
the Department may find necessary, or reject the application
for the high volume horizontal hydraulic fracturing permit. The
applicant may waive, in writing, the 60-day deadline upon its
own initiative or in response to a request by the Department.
(j) If at any time during the review period the Department
determines that the permit application is not complete under
this Act, does not meet the requirements of this Section, or
requires additional information, the Department shall notify
the applicant in writing of the application's deficiencies and
allow the applicant to correct the deficiencies and provide the
Department any information requested to complete the
application. If the applicant fails to provide adequate
supplemental information within the review period, the
Department may reject the application.
(Source: P.A. 98-22, eff. 6-17-13; 98-756, eff. 7-16-14;
99-139, eff. 7-24-15.)
(225 ILCS 732/1-90 new)
Sec. 1-90. Mineral interest owner consent.
(a) Notwithstanding any other provision of statutory or
common law, a person shall not conduct hydraulic fracturing
operations or remove minerals as a result of any means
regulated by this Act, including, but not limited to,
horizontal wells, without the express, written consent of each
owner of a mineral interest affected by the hydraulic

HB1562 - 35 - LRB101 00160 XWW 45160 b
fracturing operations or removal of minerals in the conduct of
the hydraulic fracturing operations.
(b) Any person who violates or refuses to comply with any
of the provisions of this Section shall be subject to the
provisions of Sections 8a and 19.1 of the Illinois Oil and Gas
Act.
(c) If the Department finds that a person or permittee has
violated this Section, in addition to permanent cessation of
the operations in violation of this Section and any civil or
other penalty assessed by the Department, the person or
permittee shall be ordered to pay treble the full market value
of the mineral resource extracted in violation of this Act to
the owner of the mineral interest.
(d) Nothing in this Section shall be construed to prohibit
any owner of a mineral interest from initiating a civil cause
of action in any court with jurisdiction for an alleged
violation of this Section for compensatory or punitive damages,
or both.